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AMERICAS
Brookfield Infrastructure, an owner and operator of critical global infrastructure networks, and Ontario Teachers' Pension Plan, an organization responsible for administering defined-benefit pensions, agreed to acquire Compass Datacenters, a wholesale provider delivering dedicated data centers for businesses, from RedBird Capital Partners, a private investment firm, and Azrieli, a real estate company. Financial terms were not disclosed.
“Digitalization remains a key thematic investment for Brookfield Infrastructure. The need for data storage continues to grow at an exponential rate across the globe, and Compass complements our existing platforms in South America, Europe and Asia Pacific. Compass is a best-in-class data center platform that we have known for years and we are excited to partner with Chris, the Compass team, and Ontario Teachers’ to support Compass on its rapid growth journey,” Sam Pollock, Brookfield Infrastructure CEO.
Compass is advised by DLA Piper, Fried Frank Harris Shriver & Jacobson and Wick Phillips. Ontario Teachers is advised by TD Securities and Paul Weiss Rifkind Wharton & Garrison (led by Ian Hazlett and Adam M. Givertz). Brookfield is advised by BMO Capital Markets, Scotiabank and Kirkland & Ellis. RedBird is advised by Deutsche Bank, Goldman Sachs, Guggenheim Partners, Fried Frank Harris Shriver & Jacobson and Gagnier Communications (led by Dan Gagnier).
Adobe's planned $20bn acquisition of cloud-based designer platform Figma is at risk of being blocked as EU watchdogs prepare to launch a formal probe into the deal, FT reported.
The software giant's proposed bid is set to be scrutinized in an in-depth investigation to prepare potential anti-competition concerns. The investigation could take several months and has the potential to completely collapse the Adobe-Figma deal.
Civitas Resources, a neutral energy producer, agreed to acquire oil producing assets in the Midland and Delaware Basins of west Texas and New Mexico from NGP Energy Capital, a private equity and venture capital firm, for $4.7bn.
“These accretive and transformative transactions will immediately create a stronger, more balanced and sustainable Civitas. By acquiring attractively priced, scaled assets in the heart of the Permian Basin, we advance our strategic pillars through increased free cash flow and enhanced shareholder returns. We will soon have nearly a decade of price-resilient, high-return drilling inventory. Our strong capital structure allowed us to capture these transformational assets, and, importantly, behind the strength of the pro forma business, we have a clear path to reduce leverage and maintain long-term balance sheet strength," Chris Doyle, Civitas President & CEO.
Civitas Resources is advised by Bank of America, Goldman Sachs, Guggenheim Partners, Kirkland & Ellis and DrivePath. Debt financing is provided by Bank of America and JP Morgan. NGP Energy is advised by JP Morgan, Jefferies & Company, Baker Botts and Vinson & Elkins (led by Bryan Loocke, Jackson O’Maley, Doug McWilliams, Matt Strock and Elena Sauber).
Charlesbank Capital-backed Neptune Retail Solutions, a retail marketing company, agreed to acquire Quotient, a digital promotions and media technology company, for $430m.
“We are pleased to enter into this transaction with Neptune and Charlesbank, which will deliver compelling, immediate and certain value to shareholders, while positioning Quotient to continue meeting the needs of its customers. The Board undertook a thorough review of the Company’s standalone growth prospects and opportunities to maximize shareholder value, and we are confident this transaction achieves that objective and is the optimal path forward for our shareholders," Robert McDonald, Quotient Chair.
Blackstone Infrastructure Partners, an active investor across sectors, including energy infrastructure, transportation, digital infrastructure, agreed to acquire a 19.9% stake in NIPSCO, a gas company, from NiSource, a utility company, for $2.15bn.
"We're pleased to reach this agreement at a compelling valuation following a robust and competitive process and are confident that Blackstone is the right partner for NIPSCO and NiSource going forward, given its global footprint and deep infrastructure experience, including in renewable development and procurement. With this transaction, our commitment to Indiana remains unchanged, and we will be able to drive further sustainable growth for our stakeholders. This financing transaction will have no impact on NIPSCO's current strategic direction or on our commitment to our gas and electric customers in Indiana," Lloyd Yates, NiSource President and CEO.
Blackstone is advised by Barclays and Latham & Watkins. Debt financing is provided by Sumitomo Mitsui Banking. NiSource is advised by Goldman Sachs, Lazard and McGuireWoods.
Eli Lilly, a pharmaceutical company, agreed to acquire DICE Therapeutics, a biopharmaceutical company, for $2.4bn.
"In combination with its novel technology and expertise in drug discovery, DICE's talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases. We welcome DICE colleagues to Lilly and, together, we can tackle the challenges ahead in finding new treatments for patients with significant unmet medical needs," Patrik Jonsson, Eli Lilly EVP.
DICE is advised by Centerview Partners, Fenwick & West and 1AB (led by Dan Budwick). Eli Lilly is advised by Kirkland & Ellis.
STERIS, a provider of products and services that support patient care, agreed to acquire the surgical instrumentation platform from Becton Dickinson, a global medical technology company, for $540m.
"We are pleased to announce the signing of this agreement today, as the brands we are adding will strengthen, complement and expand STERIS's product offerings within our Healthcare segment. In particular, the focus on the operating room and sterile processing department fits perfectly with our Healthcare Customers. We welcome these teams to STERIS and look forward to working together to enhance our value to our customers," Dan Carestio, STERIS President and CEO.
STERIS is advised by Lazard and Thompson Hine. BD is advised by Ropes & Gray.
Mayville Engineering, a provider of design, prototyping and manufacturing solutions serving diverse end-markets, agreed to acquire Mid-States Aluminum, a manufacturer of custom aluminum extrusions and fabrications, for $96m.
"MSA is an established provider of aluminum extrusions, whose history of growth and innovation, attractive margin profile, deep customer relationships and diverse end-markets are highly complementary to our existing business. Upon closing of the acquisition, MSA will be immediately accretive, excluding transaction costs, to MEC's earnings per share, Adjusted EBITDA margin and free cash flow," Jag Reddy, Mayville Engineering President and CEO.
WPP, a communications, advertising, public relations, technology, and commerce company, completed the acquisition of a 30% stake in Majority, a creative agency. Financial terms were not disclosed.
“Our first chapter was about creating fertile ground for a more diverse talent mix to do the best work of their lives. Our next chapter wants to be about expanding opportunity through scale, and with its global reach, leading capabilities and commitment to creativity, WPP is the ultimate partner to help us author it," Omid Farhang, Majority Founder and CEO.
WPP was advised by Sapka Communications (led by Steve Sapka).
Alpine Investors-backed Axcel Learning, a professional education platform, completed the acquisition of ExitCertified, an IT training provide. Finanicial terms were not disclosed.
"Over the past couple of years, we've watched as ExitCertified has grown and received various awards for its IT training. We look forward to partnering with ExitCertified to provide new services and solutions so individuals and organizations can build the skills they need to succeed in rapidly changing environments," Jonathan Zeidan, Axcel CEO.
JP Morgan, a financial services firm, completed the investment in Cleareye.ai, an artificial intelligence platform providing compliance and operational products across financial services. Financial terms were not disclosed.
“Future proofing trade operations has been at the forefront of J.P. Morgan’s digital strategy in Trade & Working Capital. A manually intensive industry loaded with paper and lacking standardization, burdened by an increasing cost base, needs real innovation in order to transform. We are delighted to invest in Cleareye.ai as they deliver this innovation through meaningful solutions for us and our global financial institutions clients,” James Fraser, JP Morgan Global Head of Trade & Working Capital.
Saudi Arabia's PIF leads bidding for a $2.5bn Vale base metals stake. (FS)
Saudi Arabia's Public Investment Fund is emerging as the leading bidder to acquire a stake in Vale's multibillion-dollar nickel and copper operations, Bloomberg reported.
PIF is in advanced discussions with the Brazilian miner about a deal for a roughly 10% holding in its base metals unit. The stake could be valued at around $2.5bn.
Abu Dhabi wealth fund ADQ held early talks to acquire Lazard. (FS)
Abu Dhabi wealth fund ADQ held preliminary talks to buy boutique investment bank Lazard, highlighting the emirate's continued interest in acquiring a major financial institution, Bloomberg reported.
Officials from the emirate's third-largest sovereign wealth fund met their Lazard counterparts several months ago, but the discussions quickly fell apart over differences about the future independence of the 175-year old Wall Street firm.
Brazil's GPA to sell and lease back 11 stores for nearly $70m.
Brazilian retailer GPA reached a deal to sell and lease back 11 of its supermarket stores to an unnamed private fund for $69m, Reuters reported.
GPA will continue to operate the stores under lease agreements of 15 years, with the exception of 3 stores that will be run by the company for 18 years.
Kodiak Gas Services aims for $1.6bn valuation in US IPO.
Kodiak Gas Services said it is aiming for a valuation of about $1.6bn in its US listing, expecting to benefit from returning investor appetite for new offerings, Reuters reported.
The company is looking to sell 16m shares in its initial public offering priced between $19 and $22 apiece. It is expected to raise about $352m at the top of the proposed range.
Bank mergers face fresh antitrust heat at US Justice Department.
Top Justice Department antitrust lawyers are weighing a major revamp of how they scrutinize bank mergers, complicating further consolidation for an industry that's facing some of its biggest challenges since the financial crisis, Bloomberg reported.
Four banks have collapsed this year and regulators are seeking to thread a difficult needle. Although US officials have said they're going to maintain a tough line, there has been significant consolidation — including the purchase of First Republic Bank by JP Morgan, which was already the biggest American lender.
Carlyle names John Redett as Chief Financial Officer. (People)
Carlyle is naming firm veteran John Redett as Chief Financial Officer and head of corporate strategy in the first major appointment by Chief Executive Officer Harvey Schwartz, as the new leader seeks to jump-start the private-equity firm's growth and revive its flagging stock, WSJ reported.
Redett, who will take over from Curt Buser on October 1, joined Carlyle 16 years ago and currently leads the firm's global financial services.
EMEA
Alpha Auto Group, an automotive retail group, offered to acquire Lookers, a British car dealership chain, for £465m.
"The significant financial and operational progress made by Lookers in recent years demonstrates Lookers' ability to deliver excellent and sustainable value for our stakeholders. After a period of extensive engagement between the parties, the Offer represents an attractive opportunity for our shareholders to realise cash now for their investment at a significant premium to the prevailing share price," Paul Van der Burgh, Lookers Interim Chairman.
The Investment Management Corporation of Ontario, an investor for Ontario's public-sector institutions, completed the $400m investment in Northvolt, an integrated battery platform focused on the R&D, manufacturing, and recycling of sustainable battery cells and systems.
"This innovative collaboration between IMCO's Fundamental Equities and Global Infrastructure teams is paving the way for meaningful capital deployment towards the energy transition. With this investment, we are tangibly delivering on our Climate Action Plan, while also strategically managing material ESG risks, ultimately generating sustainable long-term value for our clients," Rossitsa Stoyanova, IMCO Chief Investment Officer.
European Energy Exchange, an electric power and related commodities exchange, agreed to acquire the European power business from Nasdaq, a global technology company. Financial terms were not disclosed.
The transaction will involve the transfer of existing open positions in Nasdaq’s Nordic, French, and German power futures as well as European carbon emission allowance futures to EEX’s clearing house European Commodity Clearing. Until the receipt of regulatory approvals, Nasdaq will continue to operate its European power trading and clearing business as usual.
Adnoc makes a takeover approach for Covestro.
Abu Dhabi National Oil has made a preliminary takeover approach for German chemical producer Covestro, Bloomberg reported.
The state-backed energy company has held initial talks with officials from Leverkusen-based Covestro to express its interest in a deal. Covestro shares have risen about 7% this year, valuing the company at $8.2bn.
Turkish IPO market picks up pace as firms compete to tap demand.
Turkey's initial public offering market is showing strong momentum as companies with limited options for fresh financing in the country seek to take advantage of local investors' appetite for new issues, Bloomberg reported.
More than 20 companies have so far completed the process of listing and have started trading in Turkey during 2023, raising about $1.3bn, based on the average exchange rate this year. That's already ahead of last year in both dollar and local currency terms and the most in lira in records going back to 2010 on Turkey's Capital Markets Board website.
Jamjoom soars in debut after Saudi Arabia's biggest IPO of 2023.
Jamjoom Pharmaceuticals Factory rose by the maximum allowed in its trading debut after the generic drugmaker pulled off the largest initial public offering in Saudi Arabia this year, Bloomberg reported.
In May, the company's owners raised $336m after the shares were priced at the top end of the range at $16 each. The listing, the largest in the kingdom since Saudi Aramco Base Oil raised $1.3bn in December, has served as a gauge of investor appetite as Saudi Arabia's IPO market slowly comes back to life.
Renault sees EV unit profit by 2025 as IPO plan continues.
Renault's electric-vehicle venture is set to be profitable as soon as 2025 with the company readying the Ampere unit for an initial public offering, Bloomberg reported.
The French carmaker also expects to break even on free cash flow by then before raising results to a double-digit operating profit margin by the end of the decade. Chief Executive Officer Luca de Meo will take on the additional roles of CEO and chairman of the electric-vehicle arm.
APAC
BPEA EQT and ChrysCapital, two investors, agreed to acquire a 90% stake in HDFC Credila, a loan agency, from HDFC, a banking and financial services company, for $1.1bn.
"The demand in India for obtaining a higher education is growing at a faster pace than ever, accelerated by our country's growing middle class and students' strive for better career opportunities. Coming out of HDFC Group, one of India's most respected and well-established financial conglomerates, HDFC Credila plays a critical part in serving this demand. We have been following HDFC Credila for several years and we are excited to partner with its strong management team led by Arijit Sanyal. We also welcome HDFC Group's decision to retain a minority stake in the business and we see their continued support as a testament to our vision for the company," Jimmy Mahtani, BPEA EQT India Partner.
BPEA EQT is advised by Awelin, Arpwood Capital, Ernst & Young and J. Sagar Associates. HDFC is advised by Jefferies & Company.
L Catterton, a consumer-focused investment firm, completed a $60m investment in Drools Pet Food, a local pet food company.
"What truly differentiates Drools is its ability to manufacture high-quality products across the price ladder and make them available to pet parents via every relevant channel, be it online on Amazon or Flipkart, or offline in over 34k points of sale spanning specialty vet shops, veterinary clinics, and general trade stores. Its focus on product quality has helped it become a brand that has gained a reputation for providing high protein content at value-for-money price points, cultivating a very loyal base of customers. This is an exciting time to be entering the country's pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business," Anjana Sasidharan, L Catterton Partner.
L Catterton and Drools were advised by Adfactors PR.
Bahrain-based Investcorp seeks to raise up to $600m from investment vehicle IPO. (FS)
Middle East alternative asset manager Investcorp is seeking to raise up to $600m from the listing of an investment vehicle in Abu Dhabi this year, DealStreetAsia reported.
Bahrain-based Investcorp is making preparations for a potential public share sale of Investcorp Capital, registered in the Abu Dhabi Global Market, the international financial centre in the capital of the United Arab Emirates.
KKR shuffles Asia buyout team after $15bn fund raise. (FS)
KKR has overhauled its Asia-Pacific private equity team in the early stages of allocating capital from its $15bn regional fund as deal making sputters on strained US-China relations, Bloomberg reported.
Ming Lu, the firm's Asia-Pacific head, will become executive chairman for the region to spend time on strategic initiatives. Hiro Hirano will relinquish his role as co-head of private equity to become deputy executive chairman, while maintaining his role as head for Japan.
Tiger Global raises $2.7bn for latest fund, way short of target. (FS)
Tiger Global, the invesment firm focused on the global internet, software, consumer, and fintech industries, has raised $2.7bn so far for its latest fund, DealStreetAsia reported.
The amount raised so far for Tiger Global Private Investment Partners XVI is way lower than the firm's $6bn target, even as the New York-based firm has been in the market for eight months to promote the vehicle.
Go-Ventures rebrands as Argor, closes second fund at $240m. (FS)
GoTo-backed venture capital firm Go-Ventures has secured $240m in total in the final close of its second flagship venture fund as it officially rebrands as Argor, DealStreetAsia reported.
The second venture fund has secured commitments from sovereign wealth funds, institutional investors, corporates, and family offices from Asia, the Middle East, Australia, Europe, and the US.
Eddie Wu to succeed Daniel Zhang as Alibaba Group CEO in major executive reshuffle. (People)
Alibaba Group said Eddie Yongming Wu, chairman of its Taobao and Tmall Group, will succeed Daniel Zhang as chief executive officer in the Chinese e-commerce giant's biggest executive reshuffle since its restructuring, DealStreetAsia reported.
Zhang will shift to focus on cloud intelligence, Alibaba said. Zhang has since December been concurrently serving as group CEO and chairman as well as head of its cloud unit.
KKR names Gaurav Trehan as Asia PE head in buyout team shuffle. (FS, People)
Global buyout powerhouse KKR has named Gaurav Trehan, its partner and CEO for India, as its Asia head for private equity, DealStreetAsia reported.
Trehan will take over as KKR PE head for Asia from previous co-heads Ashish Shastry and Hiro Hirano.
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