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AMERICAS
Allkem, a chemicals company, completed the merger with Livent, a global lithium chemicals producer, in a $4.6bn deal. The combined company will be valued at $10.6bn, with Livent owning a 44% and Allkem owning 56%.
"As one of the leading global producers of lithium chemicals, Arcadium Lithium has the resources, scale and expertise to meet the growing needs of our rapidly changing industry. We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world. This will open doors to new opportunities and strengthen our ability to deliver value to our customers, investors, employees and communities," Paul Graves, Livent President and Chief Executive Officer.
Golden Gate Capital, a private equity firm, and Gil Grattan, Founder and CEO of Virginia Green, offered to acquire a minority stake in Virginia Green, a provider of lawn care. Financial terms were not disclosed.
"Our rapid growth is a testament to the comprehensive lawn care offering and tremendous team we have built that provide superior results and unmatched customer satisfaction. I am pleased to be collaborating with Golden Gate Capital and believe their expertise in scaling industry-leading platforms makes them the perfect partner to accelerate the growth of our business in Virginia and beyond," Gil Grattan, Virginia Green Founder and CEO.
Virginia Green is advised by Harris Williams & Co and Williams Mullen. Golden Gate Capital is advised by TD Cowen, Paul Weiss Rifkind Wharton & Garrison (led by Jeremy M. Veit), Ropes & Gray and FGS Global.
APA, a company engaged in hydrocarbon exploration, agreed to acquire Callon Petroleum, an independent oil and natural gas company, for $4.5bn.
"This transaction is aligned with APA's overall portfolio strategy and fits all the criteria of our disciplined approach to evaluating external growth opportunities. Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware," John J. Christmann IV, APA CEO and President.
APA is advised by Citigroup, Wells Fargo Securities, and Wachtell Lipton Rosen & Katz (led by Zachary Podolsky and Daniel A. Neff). Debt financing is provided by Citigroup, JP Morgan, and Wells Fargo Securities. Callon Petroleum is advised by Morgan Stanley, RBC Capital Markets, and Kirkland & Ellis.
Vantiva announced that it has received approval from the South African authorities to proceed with the acquisition of CommScope’s Home Networks business. With this approval, Vantiva has cleared all conditions related to the antitrust authorities and reached a new milestone in the acquisition process. Final signature of the transaction is expected in January 2024.
Vantiva is advised by d'Angelin & Co, Bryan Cave Leighton Paisner, Faegre Drinker Biddle & Reath, Image Sept, Thatcher+Co. CommScope is advised by Evercore. Financial advisors are advised by Paul Weiss Rifkind Wharton & Garrison.
AUA Private Equity Partners, a private equity investment firm, agreed to acquire Weaver, a fourth-generation family-owned manufacturer of popcorn and snacking products. Financial terms were not disclosed.
“We see tremendous opportunity to help Weaver Popcorn Manufacturing expand, and the Company possesses all of the necessary attributes to accelerate its success: an excellent management team, an engaged and aligned family-owner, and a flexible capital structure. Our plan is to make this a best-in-class partner for customers and all their snacking needs,” David Benyaminy, AUA Private Equity Partner.
AUA Private Equity Partners is advised by Boston Consulting Group, Proterra Investment Partners, Grant Thornton, McDermott Will & Emery, and Laurel Strategies (led by Michael Melamed). Weaver is advised by Ernst & Young and Taft Stettinius & Hollister.
Williams, an energy infrastructure company that provides transport, storage, and delivery solutions, completed the acquisition of a portfolio of natural gas storage assets from Hartree Partners, a global merchant commodities firm, for $1.95bn.
“Demand for natural gas has greatly outpaced natural gas storage capacity since 2010, demonstrating the intrinsic value this well-connected and strategically located Gulf Coast storage portfolio brings to our transportation network as we serve growing demand driven by LNG exports and power generation,” Alan Armstrong, Williams President and CEO.
Williams was advised by Bank of America and Davis Polk & Wardwell (led by Oliver H. Smith). Hartree Partners was advised by Evercore, Wells Fargo Securities, and Milbank.
Liberty Media, an American mass media company, completed the acquisition of 90% stake in QuintEvents, an event management company, for $282m.
“Quint is a great addition to Liberty Media, extending our reach in premium experiences and capitalizing on continued growth in the global experiential economy,” Greg Maffei, Liberty Media President and CEO.
QuintEvents was advised by JP Morgan, Bryan Cave Leighton Paisner, and Allied Global Marketing. Liberty Media was advised by O'Melveny & Myers.
Oak Hill Capital, a private equity firm, completed the acquisition of Wire 3, a fiber-to-the-home provider, from Guggenheim Partners, a private equity firm. Financial terms were not disclosed.
"We are delighted to form a new partnership with Oak Hill, an experienced investor in the broadband sector. Oak Hill's investment and expertise will help us achieve our target to expand our high-speed Internet service to hundreds of thousands of homes and businesses across Florida. Our goal is to empower communities with reliable and fast Internet access, fostering growth and digital opportunities for all," Jai Ramachandran, Wire 3 CEO.
Wire 3 was advised by Bank Street Group and Allen & Overy. Oak Hill was advised by Paul Weiss Rifkind Wharton & Garrison and Kekst CNC.
ORMAT Technologies, a global provider of renewable energy solutions, completed the acquisition of the geothermal and solar portfolio from Enel, a manufacturer and distributor of electricity and gas, for $271m.
“Ormat is pleased to close this transaction and begin capturing the value of these assets for our shareholders. The acquired assets will be immediately accretive to Ormat’s profitability, and we expect to improve the generation, revenues and EBITDA performance through a series of value-enhancement initiatives, including the integration of Ormat’s own state-of-the-art equipment. We look forward to integrating these attractive geothermal and solar assets into our existing portfolio and translating our results into enhanced shareholder value creation in both the near-and long-term. This deal serves as a testimony to our team’s execution as well as Ormat’s position as a leader in the renewable energy space, while reflecting our ongoing commitment to advancing renewable power solutions, globally," Doron Blachar, Ormat CEO.
ORMAT was advised by Alpha IR. Enel was advised by Jefferies & Company.
Grupo México Transportes, a private rail consortium, offered to invest in Genesee & Wyoming-backed CG Railway, a rail road operator. Financial terms were not disclosed.
“This further strengthens our partnership with GMXT, a leader in rail transportation services in Mexico with a strong presence in the southern US, including 13 ports between the two countries. Their network access and expertise, coupled with G&W’s ability to deliver safe and customer-centric first- and last-mile rail service, will enhance CGR’s overall service offering while extending the reach of CGR’s efficient and secure rail service into and out of Mexico," Michael Miller, Genesee & Wyoming CEO.
Genesee & Wyoming is advised by Simpson Thacher & Bartlett.
Crane Company, an industrial products company, completed the acquisition of Vian Enterprises, a manufacturer of gerotors, gears, and broached hardware, for $103m.
"We are very excited to announce this transaction. Vian is highly complementary to our Fluid Solution within the Aerospace & Electronics segment, significantly expanding our portfolio of mission critical aerospace flow control products. Vian has strong positions on the most attractive commercial and military aircraft platforms today, and combined with our existing fluid and thermal management capabilities, further strengthens our positioning for future content opportunities on engines, gearboxes and auxiliary power units. We expect that Vian’s margins will be accretive to the Aerospace & Electronics’ segment EBITDA margins immediately, with a long-term sales growth rate in line with the segment’s previously disclosed 7% to 9% long-term CAGR. Vian, along with the other acquisitions that we continue to pursue, meets our clearly defined strict financial and strategic acquisition criteria,” Max Mitchell, Crane President and CEO.
Alliant Insurance Services, an insurance brokerage and consulting firm, completed the acquisition of Aldrich Benefits, a provider of financial, wealth, tax, and business transition strategies and services to its clients. Financial terms were not disclosed.
“Joining Alliant will allow our team to deliver even more value to our clients, as well as create new and exciting career opportunities for our professionals,” Tracey Davis, Aldrich Benefits Partner and President.
Elevance Health, a health insurance provider, agreed to acquire Paragon Healthcare, a company specializing in life-saving and life-giving infusible and injectable therapies. Financial terms were not disclosed.
“The acquisition of Paragon Healthcare will deepen our capabilities around providing affordable, convenient access to specialty medications and best-in-class services for our members living with chronic and complex illnesses,” Pete Haytaian, Elevance Health Executive Vice President.
Voyager Interests, a private equity firm, completed the acquisition of Aegion Coating Services, a field joint coating service provider for pipelines globally company, from Aegion, a provider of infrastructure maintenance, rehabilitation and technology-enabled water solutions. Financial terms were not disclosed.
“This partnership with Voyager presents an exciting new chapter for ACS, where we have access to capital and a growth mindset that will enable us to provide an enhanced service proposition to our customers,” Bryan Kirchmer, ACS President.
MacDermid Enthone Industrial Solutions, a manufacturer of chemical compounds catering to all facets of surface finishing applications, agreed to acquire All-Star Chemical Company, a cleaning chemical solutions company. Financial terms were not disclosed.
"We are thrilled to announce the addition of All-Star Chemical's metal finishing solutions to the MacDermid Enthone portfolio. This addition will further enhance our ongoing effort to provide industry-leading surface finishing solutions and also bring exceptional talent to our organization," Glen Breault, MacDermid Enthone Industrial Solutions Vice President.
Arlington Capital Partners, a private equity firm, completed the acquisition of Cadence Aerospace, Numet, AeroCision and Walbar to form Kinetic Engine Systems, a supplier of precision aero-engine components directly serving major aero-engine. Financial terms were not disclosed.
“The combination of these leading businesses and their corresponding product sets and manufacturing capabilities creates a balanced portfolio across customers, next generation platforms, end-markets and product types,” Scott Ransley, Kinetic CEO.
Ara Partners, a private equity firm, completed the acquisition of a majority stake in USD Clean Fuels, a developer of renewable energy logistics infrastructure. Financial terms were not disclosed.
“We have high conviction that the green molecules economy – whether it’s renewable fuel feedstocks or biofuels – offers disproportionate opportunity for returns and impact. The USDCF platform is particularly compelling because it combines a best-in-class management team with a portfolio of premiere terminal logistics projects that provide the ideal foundation for a durable and scalable infrastructure business," George Yong, Ara Partner and Co-Head of Infrastructure.
ClinicMind, a multi-specialty EHR and RCM services provider, completed the acquisition of Genesis Chiropractic, a provider of EHR software and billing services to chiropractors. Financial terms were not disclosed.
"I am delighted that clients of Genesis will benefit from an expanded scope of revenue cycle management (RCM) services, adding Credentialing, Prior Authorization, and Coding. The more comprehensive the suite of solutions available to our clients on the same software platform - the easier it is to use it, and the better optimized are their practice workflow and cash flow. Our clients also gain access to additional client support resources, such as a live Call Center and an advanced Learning Management System," Brian Capra, Genesis Founder and President.
Cigna nears $3bn-$4bn deal to sell Medicare Advantage unit.
Health insurer Cigna Group is in exclusive talks to sell its Medicare Advantage business to Health Care Service in a deal that could value the unit between $3bn and $4bn, Reuters reported.
Health insurer HCSC, a Blue Cross Blue Shield licensee in five US states, said it does not comment on "rumour or speculation". Shares of Cigna fell about 2% on the news.
Berkshire Utility sells a $3.8bn bond to pay wildfire claims.
Berkshire Hathaway Energy Company's PacifiCorp sold $3.8bn of US investment-grade bonds to help fund settlement claims related to wildfires in Oregon, Bloomberg reported.
The electric utility issued debt in four parts, with the longest portion — a long 30-year fixed-rate note — yielding 175 basis points over comparable Treasuries. Some of the funds will also go toward general corporate purposes.
Cathie Wood buys Tesla shares just as Wall Street’s view dims. (FS)
Cathie Wood has started buying Tesla shares after selling them for most of last year. Her purchases come at a time when Wall Street’s outlook on the electric-vehicle maker is darkening rapidly, Bloomberg reported.
Funds operated by Wood’s firm Ark Investment Management have bought about 216,000 shares of the company over investments made on Dec. 20 and Jan. 3. Before the current buying streak, Ark had largely sold shares in the EV maker for three straight quarters.
Intel spins out AI software firm with backing from DigitalBridge. (FS)
Intel said it was forming a new independent company around its artificial intelligence software efforts with backing from digital-focused asset manager DigitalBridge Group and other investors, Reuters reported.
Intel executives would not comment on the value of the deal or whether it would retain a majority stake in the new venture, other than to say the firm would have an independent board of directors and the chipmaker would remain a shareholder.
Equinor, BP cancel a contract to sell offshore wind power to New York.
European energy firms Equinor and BP terminated their agreement to sell power to New York state from their proposed Empire Wind 2 offshore wind farm, citing rising inflation, higher borrowing costs, and supply chain issues, Reuters reported.
"This agreement reflects changed economic circumstances on an industry-wide scale and repositions an already mature project to continue development in anticipation of new offtake opportunities," Equinor said in a statement on January 3, in an apparent reference to a new offshore wind solicitation launched by New York in November. The solicitation allows companies to exit old contracts and re-offer projects at higher prices. The winners of an expedited solicitation for offshore wind will be announced in February.
Georgia homebuilder launches what could be 2024's first US IPO.
Smith Douglas Homes launched plans to raise as much as $161.5m in an initial public offering that could be the first US listing of 2024, Bloomberg reported.
With dozens of potential IPO candidates watching closely for a sign of a listing rebound, Smith Douglas Homes said in a filing on January 3 that it plans to sell almost 7.7m shares for $18 to $21 each.
Banner Ridge raises $2.15bn for flagship secondary fund. (FS)
Banner Ridge Partners raised $2.15bn for a secondary fund that will buy stakes in existing funds that invest in distressed debt and special situations, Bloomberg reported.
That surpassed the firm's $1.4bn target, co-founder Anthony Cusano said in an interview, noting that higher interest rates and a lack of liquidity in the market are creating investment opportunities.
Palladium announces closing of $450m continuation vehicle. (FS)
Palladium Equity Partners announced the close of a $450m multi-asset continuation vehicle that has acquired interests in three assets – Sky Zone, Del Real Foods, and Jordan's Skinny Mixes – from Palladium Equity Partners IV, which closed on $1.14bn in 2014.
As part of the transaction, limited partners in Fund IV were provided the option to cash out of their interests in the assets, roll their interests into the continuation fund, or stay in Fund IV at the same terms. BlackRock's Secondaries & Liquidity Solutions team (on behalf of certain managed funds and accounts) acted as the lead investor in the transaction.
Barclays poaches Voegeli from CIBC to run a Canadian investment bank. (People)
Barclays has hired Ryan Voegeli as its new head of investment banking in Canada, adding to a slate of new leaders after it experienced a series of high-level departures last year, Bloomberg reported.
Voegeli, who is joining the firm in Toronto, had been head of global diversified industries investment banking at the Canadian Imperial Bank of Commerce and, before that, ran Canadian technology, media and telecom banking at what was then known as Bank of America Merrill Lynch.
EMEA
CRH announced that the first phase of the transaction, comprising the Group’s lime operations in Germany, Czech Republic and Ireland, is now complete.
"The decision to divest at an attractive valuation follows a comprehensive review of the Business and demonstrates CRH’s active approach to portfolio management. The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders," Albert Manifold, CRH CEO.
SigmaRoc is advised by Peel Hunt, BNP Paribas, Liberum Capital, Rothschild & Co, Santander, CMS, White & Case and Walbrook PR. CRH is advised by JP Morgan and Hengeler Mueller.
atai Life Sciences, a biotech company, agreed to acquire a 35.5% stake in Beckley Psytech, a psychedelic medicine company, for $50m.
"Beckley Psytech and atai Life Sciences share a vision for the future of mental health treatment, and we are excited to join forces on the journey to develop effective, accessible, rapid-acting psychedelic medicines for people in need. Alongside the financial investment, we are optimistic about the numerous possible synergies of this collaboration, especially in developing digital tools to optimize patient support and planning for future commercialization. We look forward to exploring these in the coming months," Cosmo Feilding Mellen, Beckley Psytech CEO.
Abu Dhabi's IHC forms a new holding company with assets exceeding $27bn.
Abu Dhabi conglomerate International Holding Company (IHC) on January 2 announced it had established 2PointZero, a holding company which will have more than $27bn in assets, DealStreetAsia reported.
2PointZero's portfolio will include alternative asset manager Lunate, which last month launched a $30bn climate fund dubbed ALTÉRRA at COP28 in collaboration with global asset managers BlackRock, Brookfield and TPG. International Resources, which invested $1.1bn in Zambia's Mopani Copper Mines in December and focuses on energy transition minerals, will also be transferred to the portfolio.
Bain is exploring €1bn sale of Centrient Pharma. (FS)
Bain Capital is exploring a sale of Centrient Pharmaceuticals, an antibodies manufacturer that could be valued at as much as €1bn ($1.1bn).
The private equity firm is working with Citigroup and Jefferies Financial Group on a possible divestment of Netherlands-based Centrient, Bloomberg reported.
Abu Dhabi's ADQ weighs bid for a stake in Dubai's largest office tower. (FS)
An Abu Dhabi-based wealth fund is considering joining a list of bidders vying for a minority stake in Dubai's largest office tower, seeking to grab a slice of one of the world's hottest commercial property markets, Bloomberg reported.
Owners Brookfield Asset Management and state-owned Investment Corp. of Dubai are looking to sell a stake of as much as 49%. They have drawn interest from bidders, including China Investment and Malaysia's KLCC.
Private credit helps PE peers by making deal financing portable. (FS)
Private equity firms, eager to sell debt-laden businesses, are finding private credit firms increasingly willing to keep outstanding loans intact, even for companies that may soon have new owners, Bloomberg reported.
The trend, known as portability, describes loans that remain essentially unchanged when a company gets new ownership. It carries rewards and risks for businesses and especially for lenders. Usually, a change of control would allow lenders to renegotiate terms to cover potential risks from a new parent, such as different plans for growth or profitability of a business.
Wilson tennis racket maker Amer Sports files for US IPO.
Amer Sports, the maker of Wilson tennis rackets and Salomon ski boots, has filed for a US initial public offering, Bloomberg reported.
The company has picked Goldman Sachs, Bank of America, JP Morgan Chase and Morgan Stanley as bookrunning lead managers of the share sale, according to a press release. Amer is targeting an IPO of more than $1bn, and a listing could value the firm at as much as $10bn.
APAC
Vance Street Capital-backed Micronics Engineered Filtration Group, a provider of aftermarket filtration consumables, completed the acquisition of Solaft Filtration Solutions, a developer of filtration products. Financial terms were not disclosed.
"We are excited to join forces with the Micronics Engineered Filtration Group, a strong industrial filtration solutions leader. From the beginning of our association, it has been clear that there is a great fit with Micronics and we are well-aligned with our vision for providing global customers with industry-leading filtration solutions for process filtration and environmental protection for a better future. We will be in good hands with Micronics," Justin Gallagher, Solaft CEO.
Solaft was advised by William Blair & Co and Kardos Scanlan. Micronics was advised by Paul Hastings. Debt financing was provided by Churchill Asset Management and Fidus Investment Corporation.
Swiggy investor Invesco raises food delivery firm's valuation by 9% to $8.5bn. (FS)
Invesco has marked up the valuation of food and grocery delivery platform Swiggy by about 9% to $8.5bn in its books as of October 31, the US asset manager said in its filings made with the US Securities and Exchange Commission.
Invesco has also revised the valuation of fintech startup Pine Labs to $3.9bn from $4.1bn earlier. This was the second consecutive markup of Swiggy's valuation by the investor. It had raised the Bengaluru-based food delivery platform's valuation to $7.8bn as of July 31. Earlier in the year, Invesco had slashed the value of Swiggy in its books to $5.5bn.
MobiKwik looks to raise $106m through IPO.
Digital payment solutions provider MobiKwik is all set to raise $106m via a fresh issue of equity shares through a public offering. This is MobiKwik's second attempt to go for an IPO. It filed a draft red herring prospectus (DRHP) in July 2021 but later abandoned public listing, citing weak market conditions.
A slew of internet companies such as Zomato, MamaEarth, Paytm and Nykaa have been performing well in public markets of late, and this appears to have bolstered MobiKwik's confidence. The board at MobiKwik has passed a special resolution to issue $106m worth of fresh issue of equity shares through IPO.
State-owned insurer New China Life to build a $1.4bn fund for property investments. (FS)
New China Life Insurance is partnering with CICC Capital in the formation of a $1.4bn fund for investments in companies with real estate assets, as the state-owned life insurer joins an array of domestic peers bottom-fishing in the country's property market, DealStreetAsia reported.
Beijing-based New China Life intends to contribute $1.4bn to the fund as a limited partner. CICC Capital, an affiliate of China's top investment bank CICC, will invest about $141m and serve as the general partner. The fund, whose formation is still subject to regulatory approvals like fund filing, will mainly invest directly or indirectly in companies with assets of real estate.
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