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AMERICAS
New Mountain Capital-backed HealthComp, a benefits and analytics platform, completed the merger with Marlin Equity-backed Virgin Pulse, a global digital-first health, wellbeing, and navigation company. Financial terms were not disclosed.
"Today is an exciting day for our clients, members, and employees. We are stronger together as one purpose-driven organization with the technology, talent, and opportunity to radically change how people engage with and navigate the healthcare ecosystem. This combination will deliver on the ultimate vision of the Homebase for Health platform, and I'm looking forward to making a bigger impact on the lives of millions of people," Chris Michalak, Virgin Pulse and HealthComp CEO.
Fleming, a specialist run-off reinsurer, agreed to acquire JRG Reinsurance, a third-party casualty reinsurance business, from James River, a group that owns and operates a group of specialty insurance and reinsurance companies, for $277m.
“Today’s announcement represents a key milestone for James River and is strategically significant for both our Company and Fleming. The transaction aligns with James River’s strategy to focus our resources on core businesses where we have meaningful scale, including our E&S and fronting businesses. We are excited about the new partnership with Fleming, which we believe will be a great new home for the staff of JRG Re," Frank D’Orazio, James River Chief Executive Officer.
Technoprobe, a company specialising in the design and production of probe cards, agreed to acquire Device Interface Solutions business from Teradyne, a supplier of automated test solutions, for $85m.
"We are enthusiastic to have the opportunity to work more closely with Teradyne, strengthening our long-lasting partnership. The acquisition of Device Interface Solutions will allow us to enlarge our technology competences in the Device Interface Board market," Stefano Felici, Technoprobe CEO.
Teradyne is advised by JP Morgan, Lazard, Chiomenti and Shearman & Sterling (led by Alain Dermarkar).
MidOcean, a private equity firm, completed the acquisition of Smith System, a B2B workplace safety training platform, from Levine Leichtman, a private equity firm. Financial terms were not disclosed.
“We’re thrilled to welcome Smith System into the MidOcean portfolio. The Company has clearly and consistently demonstrated the power and effectiveness of its unique approach to safety training, and we’re excited to continue building the premier B2B safety training platform alongside CEO Tony Douglas, Executive Chairman Derek Dunaway, and a great management team,” Marshall Phelps, MidOcean Partner.
RidgeLake, a strategic partnership between OA Private Capital and Apogem Capital, completed a minority investment in Gridiron Capital, a middle market private equity firm. Financial terms were not disclosed.
"We've been working with RidgeLake's advisers for years, and they uniquely understand our team culture and differentiation in the middle market. We are well-aligned and share the same long-term vision for Gridiron. We look forward to leveraging their strategic resources and expanding our relationship even further through this partnership," Kevin Jackson, Gridiron Managing Partner.
RidgeLake was advised by Gibson Dunn & Crutcher. Gridiron Capital was advised by Evercore and Ropes & Gray (led by Paul Van Houten and Debra Lussier).
Precision Drilling, a drilling rig contractor, completed the acquisition of CWC Energy Services, a drilling oil and gas wells company, for $127m.
“We are pleased to have completed this strategic acquisition, which positions Precision as the premier well service provider in Canada and enhances our drilling operations in both Canada and the US. With the projected synergies, we expect the transaction to be accretive on a 2024 cash flow per share basis and to support our ongoing deleveraging plan. I am excited to welcome the CWC employees to the Precision team,” Kevin Neveu, Precision Drilling President and CEO.
Precision Drilling was advised by Evercore and Osler Hoskin & Harcourt.
Global Partners, an integrated storage, distribution and retail liquid energy company, agreed to acquire 25 liquid energy terminals from Motiva Enterprises, a company that operates as a wholly owned US subsidiary of Saudi Aramco, for $306m.
“This acquisition is an exceptional opportunity to deliver on our strategy and create value by expanding our footprint into areas with increasing population centers. As a premier operator of terminals, wholesale distribution and retail marketing, we believe these terminals allow us to leverage our expertise in supply and give us a platform for growth in all aspects of our business,” Eric Slifka, Global Partners President and Chief Executive Officer.
Global Partners is advised by Bank of America.
ADNOC, the state-owned oil company of the United Arab Emirates, offered to acquire a 38.3% stake in Braskem, a polyolefins producer in the Americas, from Novonor, a provider of products and services for engineering, infrastructure, construction, petrochemical and sugar-energy sectors, for $2.14bn.
Novonor, formerly known as Odebrecht, is Braskem's main shareholder alongside state-run oil firm Petrobras, but has been long looking to sell its controlling stake as part of a broader restructuring.
TransDigm, a producer, designer and supplier of engineered aerospace components, agreed to acquire the electron device business from TJC-backed Communications & Power Industries, a manufacturer of electronic components and subsystems, for $1.39bn.
"We are excited about the acquisition of the Electron Device Business of CPI. This business fits well with our long-standing strategy. The vast majority of the company's revenues come from highly engineered, proprietary products with substantial aftermarket content. The company has established positions across a diverse range of new and existing platforms within the broader aerospace and defense industry. As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives," Kevin Stein, TransDigm President and CEO.
China's CICC sees an opportunity in Brazil, a possible office. (FS)
Securities firm China International Capital sees increased opportunities in Brazil for cross-border deals and may consider opening an office in the country, according to Lindsay Lin, CICC Head of Americas.
China is Brazil's largest trading partner; however, Chinese investments in Brazil fell 78% in 2022, the Brazil-China Business Council said in August. Lin said CICC identified real opportunities during a recent trip to Latin America as the region provides rich natural resources, which actually is a great complement to China, Reuters reported.
Geely's Zeekr edges closer to US IPO to make filing public this week.
Zeekr, Chinese automaker Geely's premium electric car brand, will publicly release some details of its plans to list shares in New York, seeking to ride growing enthusiasm for EVs despite strained US-China ties, Reuters reported.
The EV brand will publish its prospectus, and its shares could start being traded on the bourse within weeks of the announcement. The underwriters are led by Goldman Sachs and Morgan Stanley. The size and price of the float will be decided later.
PE giant TPG expects to close a $6bn Asia buyout fund in the first half of next year. (FS)
Private equity behemoth TPG is expecting the final close of its $6bn eighth flagship Asia buyout fund in the first half of next year after launching it in January 2022.
TPG Asia VIII had already gathered almost $4.3bn as of the third quarter of 2023, after announcing the first close at $3.4bn in November last year. The firm has so far raised $900m, for the fund in the past 12 months. Should the fund close on target, its Asian buyout platform will be substantially larger than its precursor fund, which raised $4.6bn in 2019, DealStreetAsia reported.
Persistence Capital closes on over $275m to support Medspa Partners' growth. (FS)
Persistence Capital Partners, a leading Canadian private equity fund exclusively focused on high-growth opportunities in the healthcare field, announced the closing of its second investment vehicle, anchored by investment funds managed by Morgan Stanley Private Equity Secondaries, for MedSpa Partners, the leading acquirer and operator of top-tier medical aesthetics clinics in North America.
PCP MSP II raised over $275m of capital commitments, exceeding the Continuation Fund's target size and more than tripling the size of the initial investment vehicle for MSP that was committed in 2019. MSP II was heavily oversubscribed and received strong support from new and existing LPs.
EMEA
Telecom Italia's decision to sell its prized fixed-line grid to KKR is a "milestone" move for the former phone monopoly and falls within the exclusive competence of the board, Reuters reported.
CEO Pietro Labriola's comments follow criticism from top shareholder Vivendi, which has threatened a legal challenge to the plan to sell the grid, saying it considered the decision to proceed without a shareholder vote as "unlawful".
Teradyne, a supplier of automated test solutions, agreed to acquire a 10% stake in Technoprobe, a company specializing in the design and production of probe cards, for $516m.
"We're excited to work with Technoprobe as the unique advantages of their interface technology help unlock the superior scalability of our testers to deliver greater benefit for our customers. Technoprobe has great products and has made important investments to align with the trends that are driving the market. Our equity investment and joint development projects reflect our confidence in Technoprobe to create value for our shareholders and customers through innovative interface solutions for the growing interface market," Greg Smith, Teradyne CEO.
Teradyne is advised by JP Morgan, Lazard, Chiomenti and Shearman & Sterling (led by Alain Dermarkar).
Nippon Express, a global logistics company, completed the acquisition of Tramo, a company that specializes in the transport of high-end furniture and furnishing accessories. Financial terms were not disclosed.
"With the integration of Tramo as a subsidiary, the Nippon Express will acquire know-how and capabilities in areas such as collection and delivery, which are optimal for high-end design furniture, thus enabling the Company to broaden its range of solutions it can offer to its customers. In addition, by bringing together the logistics functions of the Tramo and NX's global network, the two groups will be able to expand each other's service line-ups and solution offerings" Nippon Express.
Nippon Express was advised by PricewaterhouseCoopers. Tramo was advised by Squire Patton Boggs (led by Ian Tully).
Eigenmann & Veronelli, a distributor of specialty chemicals and food ingredients, agreed to acquire B&C, a distributor of specialty ingredients focused on the food market. Financial terms were not disclosed.
“This acquisition places our Group on the front foot for further growth in the food market across Italy and in the foreign markets. BC offers innovative solutions and advanced technology that perfectly complements our existing product portfolio. Our suppliers and customers will benefit from access to the enhanced capabilities, broadened portfolio and expanded commercial network of the combined organization,” Gabriele Bonomi, Eigenmann & Veronelli CEO.
AstraZeneca raises stakes in obesity drug race with Eccogene deal.
AstraZeneca placed a potential $2bn bet on the booming anti-obesity drug market on November 8, licensing an experimental pill from China's Eccogene that it believes could cause fewer side effects than current injectable treatments, Reuters reported.
CEO Pascal Soriot acknowledged on a media call that his company was "a few years behind" the runaway success of Novo Nordisk's Wegovy and Eli Lilly's rival drug that was approved by US and UK regulators on November 8.
France's Federation Studios seeks advisers ahead of possible sale.
France's Federation Studios is in talks with possible advisers to help it explore strategic options in a potential deal that could value the TV and film producer at over €500m ($535m), Reuters reported.
The privately held Paris-based group, which produced the well reviewed French political thriller Le Bureau des Légendes, has received pitches from investment banks in recent weeks for an adviser role. The company is considering options, including a full or partial sale to another private equity firm. The owners may kick off an auction process next year following the potential sale of All3Media, Britain's largest TV production firm, which could provide a yardstick for valuing Federation Studios.
Germany's Merck says semiconductor M&A deals face political hurdles.
German diversified group Merck, which last year said it was in the market for takeover deals worth as much as €20bn ($21.4bn), said on November 9 that any transaction to strengthen its semiconductor chemicals business would currently be challenging, Reuters reported.
"The geopolitical hurdles of M&A in semiconductor are something to be mindful of," Helene von Roeder, Merck CFO. Overall, the company was taking an opportunistic and selective approach to deals, she added. CEO Belen Garijo said in August that any deal could take a while and that acquisitions to strengthen Merck's Life Science unit, a supplier of gear and substances for the pharmaceutical industry, were a priority.
Buyout firms progress in talks for eBay-backed Adevinta. (FS)
Adevinta's private equity suitors are progressing in negotiations on a takeover of the European online classifieds company, which is set to be one of the year's biggest buyouts, Bloomberg reported.
The consortium led by Permira and Blackstone is in advanced talks on terms of a potential deal and hopes to reach an agreement as soon as next week. A deal could give Adevinta an equity value of more than $12bn.
Billionaire Drahi's Altice to seek bids next month for key assets. (FS)
Billionaire Patrick Drahi's Altice is preparing to receive initial bids for its Portuguese business and a stake in its French unit as the tycoon grapples with his telecom empire's debt load, Bloomberg reported.
Altice has sent out information on the businesses to potential bidders and asked for first-round offers as soon as next month. The Portuguese unit, which runs the MEO carrier, is being studied by potential private equity suitors, including Apax Partners, Apollo Global Management, CVC Capital Partners, and Warburg Pincus.
Deutsche Pfandbriefbank slumps after profit warning.
Shares in Deutsche Pfandbriefbank were on track for their worst day in six months after the German lender, late on November 7, lowered its full-year profit forecast and said it would not pay out a special dividend, Reuters reported.
The bank said it now expects annual pre-tax earnings of €90-110m ($96-117m), slashing previous guidance of €170-200m ($182-214m), citing prolonged weakness in commercial real estate. Its shares were down 11.8% on November 8, at the bottom of Germany's small-caps index.
Norway wealth fund CEO says it is using AI to deploy capital. (FS)
Norway's $1.4tn sovereign wealth fund is using artificial intelligence to help manage its investments, its CEO Nicolai Tangen said. The fund invests the Norwegian state's revenues from oil and gas production in equities, bonds, property, and renewable projects abroad. It is the world's largest sovereign wealth fund, holding stakes in more than 9,2k companies globally and owning 1.5% of all listed stocks, Reuters reported.
Tangen said he had set the fund an internal target to boost productivity by 10% over the next 12 months by using AI and had discussed the move recently with Sam Altman, the CEO of artificial intelligence company OpenAI.
Nexi CEO: happy to help UniCredit on payments, but the contract is set.
Nexi is happy to work with UniCredit to help one of its biggest clients achieve its ambitions in payments, but the contract between the two groups is "solid," and any change would have to benefit both, Nexi said on November 8.
Italian payments infrastructure group SIA in 2016 signed a 10-year contract with UniCredit to manage cards and shop payments as well as cash withdrawal machines ahead of being acquired by Nexi, which inherited the contract. CEO Andrea Orcel months ago started a review of UniCredit's payments business with a view to managing it in a more unified way across the bank's various markets, prompting concerns among investors it might seek new partners, in a blow to Nexi, Reuters reported.
UBS chief Ermotti doesn't see a cultural clash with Credit Suisse.
UBS Group's chief executive officer pushed back against suggestions that cultural differences between his bank and Credit Suisse are complicating the integration of the former rival, Bloomberg reported.
"I don't think that per se there is a cultural clash between the two organizations. We have been competing very fiercely but basically, more or less, with the same business model," Sergio Ermotti. UBS CEO.
Martin Sorrell's S4 stake loses $84m in value this year. (FS)
A plunge in the shares of S4 Capital is proving costly for British advertising mogul Martin Sorrell, Bloomberg reported.
A profit warning from S4 on November 9 extended a year-to-date stock decline to 70%. With a holding of 51.5m shares, the 78-year-old's stake has lost about $84m of its value in 2023.
FanDuel parent falls after sales miss and sets out NYSE listing.
FanDuel owner Flutter Entertainment fell as much as 9.4%, the worst intraday decline since March 2022, after it missed sales estimates, Bloomberg reported.
Revenue was £2.04bn ($2.5bn) in the third quarter, missing the £2.15bn ($2.65bn). Earnings from sports betting in the quarter were affected by unsurprising sporting results, which are more favorable to bettors than bookmakers.
APAC
Standard Chartered-backed SC Ventures, a vebture capital firm, and SBI, a financial conglomerate, agreed to form a joint venture in a $100m deal.
“The region is fast becoming a hub for fintechs in the digital asset space due to its strengthening infrastructure and talent. The Digital Asset Joint Venture will be an important vehicle to explore the emerging digital asset ecosystem opportunities globally. The Joint Venture will leverage SC Ventures’ experience in digital assets through our ventures such as Zodia Custody and Zodia Markets, and through our investments in fintechs like Ripple and Metaco,” Alex Manson, SC Ventures CEO.
Azelis, a service provider in the specialty chemical and food ingredients industry, agreed to acquire Agspec Australia, a distributor of crop nutrition. Financial terms were not disclosed.
“We are delighted to be joining Azelis, with their expertise in developing and marketing specialty chemicals, as this is synonymous with the Agspec business model. Azelis provides the critical mass for Agspec to fully realize its potential. Innovation being at the heart of Azelis' strategy, it seemed obvious to us that they would be the best and most complementary partner,” Jonathon Lillecrapp and Andrew Glynn, Agspec Founders.
SoftBank books $5.2bn quarterly loss as WeWork comes back to bite.
SoftBank booked a $5.2bn quarterly loss on November 9, its fourth straight quarter in the red, as the Japanese giant took a hit from the bankruptcy of WeWork, once one of its highest-flying investments, Reuters reported.
It was a fresh reminder of the volatility inherent in founder Masayoshi Son's strategy of betting big on often risky start-ups. WeWork, the office-sharing start-up whose aim to disrupt global commercial property once brought it a $47bn valuation, sought US bankruptcy protection on November 6, cementing a remarkable fall from grace.
Qatar Investment Authority eyeing opportunities in China's retail and tech sectors. (FS)
Qatar's sovereign wealth fund, Qatar Investment Authority, is examining opportunities to invest in China's retail, healthcare, tech, and logistics sectors, DealStreetAsia reported.
Those opportunities could involve public and private companies. Middle East investor activities in China have picked up as countries such as Saudi Arabia aim to cut oil dependence and boost new industries through partnerships with Chinese companies. Buyers from the Gulf have announced 13 acquisitions of Chinese targets so far this year, compared to just one during the same period last year and more than any other year since at least 1980.
Vedanta is working with JP Morgan to advise on a business overhaul.
Vedanta is working with JP Morgan to advise on an overhaul of the Indian conglomerate announced in September, Bloomberg reported.
The development suggests billionaire Anil Agarwal's energy-to-metals group is progressing on its plans to simplify the complex financial structure. The group is also seeking funding to repay around $3bn of bonds due over the next two years.
Dubai's DP World in talks for Hong Kong tycoon's logistics firm.
DP World is in talks to acquire Cargo Services Far East from Hong Kong tycoon John Lau as the Dubai port operator seeks to expand in Asia, Bloomberg reported.
DP World is working with a financial adviser on a potential offer for Hong Kong-based Cargo Services Far East. A transaction could value the company at about $800m.
India's Tata Technologies in talks with Morgan Stanley, US funds for IPO investment. (FS)
India's Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock, and some US hedge funds to invest in its initial public offering at a valuation of $2.5bn, Reuters reported.
Part of the conglomerate Tata Group, the company provides engineering services for companies in the auto and aerospace sectors, among others. Its IPO will be the first in two decades for a Tata Group company, which has many listed businesses, including in the auto and steel sectors. Ahead of its planned $350-375m IPO, Tata Technologies is holding talks with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as Blackrock and Morgan Stanley, for possible participation in the deal.
China asks brokerages to curb leveraged stock trades.
China's securities watchdog is asking brokerages to restrict leverage available to hedge funds that borrow large sums of money via a complex derivative business to trade stocks, Reuters reported.
Hedge funds using the so-called DMA-Swap strategy were told by their brokers late on November 8 to start limiting leveraged bets. Through the DMA-Swap, hedge funds can borrow up to $4 against every $1 they deposit with the broker in the margin account while also skirting regulatory borrowing limits by having such trades sit on brokers' books.
Mizuho said to raise Rakuten Securities stake to almost 50%.
Mizuho Financial plans to increase its investment in Rakuten online securities arm, which isn't proceeding with an initial public offering for now, Bloomberg reported.
Japan's third-largest banking group will raise its shareholding in Rakuten Securities to 49%, slightly more than a year after it bought about 20% of the firm and formed a business alliance. The deal is valued at $576m and scheduled to close on December 15, subject to regulatory approval.
India equity mutual fund inflows rise in October; SIPs hit a new high.
Inflows into India's equity mutual funds rose in October as investors continued to prefer small- and mid-cap funds in hopes of strong returns. Inflows into equity mutual funds rose 41.63% month-on-month to $2.4bn in October, Reuters reported.
This is the 32nd consecutive month of inflows on a net basis. Domestic investors had bought shares worth $1.7bn in September. The sustained buying limited losses in the markets stemming from foreign investors selling equities worth $2.9bn, the most since January, due to elevated US Treasury yields.
Ping An slump shows why a Country Garden deal would be dangerous. (FS)
A $5.5bn selloff in Ping An Insurance is underscoring why a mooted takeover of distressed developer Country Garden would be perilous for both the insurer and the Chinese financial system, Bloomberg reported.
Ping An has repeatedly denied that Chinese authorities asked the company to buy Country Garden — and analysts have put low odds on a deal materializing. Yet even the outside chance of a rescue has sent Ping An shares tumbling almost 7% over the past two sessions to the lowest level in a year.
India's Reliance Industries raises $2.4bn in mega local bond sale.
Reliance Industries raised $2.4bn on November 9, in the largest bond issue by a non-financial Indian firm, by paying 40 basis points more than the government's borrowing cost, Reuters reported.
The company's 10-year bonds were sold at a coupon rate of 7.79%. India's 10-year benchmark bond trades at an annualized yield of 7.39%.
"The cutoff is largely in line with the company's expectations. Most of the issue has been subscribed by insurance companies, pension funds, and provident funds, with some participation from mutual funds as well," Ajay Manglunia, JM Financial Managing Director.
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