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AMERICAS
Momentum Midstream, a Texan midstream energy company, completed the acquisition of the East Texas pipeline assets of ArcLight Capital-backed Midcoast Energy, a provider of midstream services, for $1.3bn.
"The East Texas Business plays an important role providing domestic and international markets access to clean, affordable, and reliable energy resources produced in the Haynesville. ArcLight is excited to see it continue to grow under the ownership of the experienced team at Momentum Midstream," Dan Revers, ArcLight Founder and Managing Partner.
Momentum Midstream was advised by Barclays and Vinson & Elkins (led by Danielle Mangrum Patterson and Douglas S. Bland). Midcoast Energy was advised by Jefferies & Company and Latham & Watkins. Debt financing was provided by Barclays, Blackstone, Jefferies & Company and Wells Fargo Securities.
EnCap Flatrock-backed M6 Midstream, a oil and gas company, completed the acquisition of Align Midstream Partners, a midstream company, from Tailwater Capital, a private equity firm. Financial terms were not disclosed.
"This transaction marks another successful milestone for our team and we believe our assets will continue to drive significant value for our stakeholder. Over the past five years, we have built an expansive system of gas gathering and processing assets in the core of the East Texas Haynesville, connecting regional supply from some of the most active producers in the basin to attractive downstream markets. We are thankful for Tailwater's support in navigating a dynamic market backdrop and are excited to watch Momentum own these assets through the next phase of growth," Fritz Brinkman, Align CEO.
Align Midstream was advised by Piper Sandler and Locke Lord. EnCap Flatrock was advised by Jefferies & Company and FGS Global (led by Kelly Kimberly). Tailwater Capital was advised by Joele Frank (led by Jonathan Keehner).
Shamrock Capital, a private equity firm, completed an investment in AnswerLab, an independent UX research firm. Financial terms were not disclosed.
"When considering the right strategic partner to help with our next phase of growth, industry experience and cultural alignment were at the top of our priority list. We believe the partnership with Shamrock will allow us to grow and expand to the next level while continuing to invest in the employee experiences that have made us a certified Great Place to Work," Amy Buckner Chowdhry, AnswerLab CEO.
AnswerLab was advised by BDO, Clearsight Advisors, Queen Saenz + Schutz and Prosek Partners. Shamrock was advised by Willkie Farr & Gallagher (led by Ramon LaSoya and Jenny Liu).
A US judge ruled in favor of US Sugar's plans to buy rival Imperial Sugar, rejecting a Justice Department argument that the proposed deal would drive up the price of sugar for households as well as for food and soda makers.
The Justice Department said in a lawsuit filed last November that the $315m deal would give some 75% of refined sugar sales in the US southeast to US Sugar, owner and member of a cooperative with three other companies, and American Sugar Refining, which sells under the Domino brand.
Judge Maryellen Noreika of the US District Court for Delaware issued the opinion under seal and said a redacted version would be available, Reuters reported.
US Sugar is advised by Latham & Watkins (led by Amanda Reeves) and FTI Consulting.
Capital Power, a North American power producer, and Manulife Investment, a wealth and asset management firm, completed the acquisition of Midland Cogeneration Venture, an operator of natural gas-fired combined electrical energy and steam energy generating plant, from OMERS Infrastructure, an investor and asset manager, for $894m.
“We think MCV’s importance to Michigan’s power supply will increase as the substantial remaining coal-fired generation continues to be retired. We are proud of the transformation MCV has achieved, including the successful completion of multiple programs that improved operational efficiency and enhanced customer confidence in its energy offering, leading to the extension of key contracts which we believe positions MCV well for many years to come," Tom Frazier, OMERS Infrastructure Managing Director.
OMERS Infrastructure was advised by Barclays and Torys (led by Krista Hill).
Coinsquare, a Canada’s crypto asset trading platform, to acquire CoinSmart, a Canadian-headquartered crypto asset trading platform. Financial terms were not disclosed.
“This acquisition represents a monumental and exciting milestone for both companies and brings together two industry leading management teams. The cryptocurrency market is going through immense change with regulators defining a roadmap for platforms to operate in Canada. This has led to an ever-increasing cost structure and additional complexity in operating a viable crypto exchange. We feel that scale and operational efficiency matter, and we are well positioned to play a leading role in defining the space in Canada,” Martin Piszel, Coinsquare CEO.
Coinsquare is advised by Wachsman.
L’Oréal, a French personal care company, agreed to acquire Skinbetter Science, a physician-dispensed American skincare brand. Financial terms were not disclosed.
“We are thrilled to welcome the Skinbetter Science team to L’Oréal. I am confident the brand will strengthen our North America dermatological beauty business, an area that we believe has dynamic growth potential. Together with Christina Fair and our Active Cosmetics Division, we see an opportunity to draw on the strength of the fantastic team behind the brand and reinforce the relationships of trust that they have built with their healthcare professional partners to take this part of our business to the next level,” David Greenberg, L'Oréal USA and President, North America Zone CEO.
L’Oréal is advised by Citigroup.
Pentair explores a possible $800m sale of part of its industrial arm.
Pentair, a maker of products such as water pumps, is considering options including a possible sale of part of its industrial solutions business.
The industrial company is working with an adviser on a sale of the assets, which could be valued at about $800m. The business, which includes equipment used in an array of industrial processes, is likely to interest private equity firms, Bloomberg reported.
Cano Health exploring sale after receiving buyout interest.
US primary care provider Cano Health is exploring a sale and working with advisors after receiving acquisition interest.
Cano Health has received buyout interest from potential buyers including Humana and CVS Health. Both CVS and Humana are among the companies talking to Cano about a deal, Reuters reported.
Cano, which went public last year through a merger with a special purpose acquisition company backed by billionaire Barry Sternlicht, received buyout interest after their poor results last month, prompting them to explore a sale.
Mubadala is said to have best offer for BP Bunge Brazil Venture. (FS)
Mubadala Investment has offered better conditions to acquire Brazilian ethanol joint venture BP Bunge Bioenergia, the world’s third-largest sugarcane processor. BP Bunge Bioenergia could be worth between $1.7bn - $1.9bn, Bloomberg reported.
The fund’s acquisition proposal has a combination of best offer and terms than the one from energy company Raizen, which is also in the final round of the negotiation. Mubadala is well-positioned to make a winning offer. However a deal is unlikely to be done before the October presidential election in Brazil.
SEC ramps up scrutiny of private equity firms' writedowns.
Buyout firms have been forced to erase billions of dollars from the value of their wagers in the economic downturn, and financial regulators are now scrutinizing whether managers are reducing fees for investors when those deals sour.
The Securities and Exchange Commission has been ramping up inquiries to private equity firms about whether they adjust customer fees when bets get written off to zero or below their original price tags.
SEC officials are ramping up those inquiries to root out what they consider a chronic practice of firms charging more than contractually allowed, and because regulators recognize that firms face pressures to juice fees in the market downturn, Bloomberg reported.
Bachoco buyout stuck in Limbo as Mexican regulator delays deal.
A bid to buy out Mexican chicken processor Industrias Bachoco by the controlling family is stuck in limbo amid protests from minority investors and a delay at the country’s regulator to approve the tender, Bloomberg reported.
The Robinson Bours family, which owns 73% of the company, had announced its intention to buy out minority shareholders back in March for 20% more than the going price, joining a wave of companies that have delisted or are seeking to pull out of the Mexican stock market amid a prolonged funk. Weak valuations are deterring companies from going public and sluggish economic growth has dampened the need for capital to expand.
Nasdaq increases scrutiny of small-cap IPOs.
Nasdaq is stepping up scrutiny of initial public offerings by small-cap companies, after a series of outsized gains by new listings that quickly evaporated.
The exchange is looking more closely at prospective small-cap issuers across industries and countries. Some companies have put their IPO plans on hold as a result.
The higher scrutiny by the exchange adds uncertainty to a slate of in-progress IPOs, some of which were expected to price as soon as this week, Bloomberg reported.
Neuberger Berman eyes continuation funds with a $4.9bn cash. (FS)
Neuberger Berman, a private equity firm, is planning to deploy a chunk of the $4.9bn it has raised for second-hand private equity deals on so-called continuation funds, even as concerns over valuations cause other investors to cool on the sector.
The multi-billion dollar fundraising stands out at a time when institutional investors are souring on continuation funds, which private equity firms deploy when they want to keep managing assets in traditional buyout funds that are about to mature - often to avoid taking portfolio companies public prematurely or being forced to sell them at unfavorable prices, Bloomberg reported.
"The firm will invest in the private equity vehicles, which seek to raise additional cash to extend ownership of companies. In deals where the amount being sought is less than $1bn, there is still a robust pipeline of opportunities," Benjamin Perl, Neuberger Berman Managing Director.
EMEA
Allwyn Entertainment, an operator of lottery business, terminated a $9.3bn SPAC merger with Cohn Robbins Holdings, a blank cheque company.
“Allwyn was encouraged by the feedback from many leading investors, demonstrating the attractiveness of our business to the investment community. However, due to the prolonged and increasing market volatility, we and Cohn Robbins have decided not to proceed with the proposed business combination. We are grateful to the firm’s founders, Gary Cohn and Cliff Robbins, for their support over the past year and hope to work with them again in the future," Robert Chvátal, Allwyn CEO.
Canada-based Mawer Investment management, a top investor in Aveva, plans to reject Schneider Electric's $4.73bn takeover offer.
Peter Lampert, a portfolio manager at Canada-based Mawer Investment management, said the offer price did not reflect the long-term potential of the company, FT reported.
Global banks including BNP Paribas’s BNL unit, Credit Agricole and Deutsche Bank will provide the funding for a plan by Italian fashion tycoon Diego Della Valle to buy out the remaining shares in Tod’s, the high-end Italian shoemaker he founded.
The Della Valle family will put up a 49% stake in Tod’s as collateral for a $409m loan to fund its bid to buy out the portion of the company it doesn’t own, Bloomberg reported.
Diego Della Valle is advised by BNP Paribas, Credit Agricole and Deutsche Bank. Tod’s is advised Rothschild & Co.
JobTeaser, a French recruitment firm, completed the acquisition of Graduateland, a talent recruitment firm. Financial terms were not disclosed.
“Our ambition has always been to create a real ecosystem for recruiting young European talent. We have already succeeded in establishing ourselves in various markets, in particular in Germany, Benelux and Southern Europe. Our union with Graduateland now allows us to move up a gear and we are delighted to be able to count on the expertise and technology of Graduateland in order to continue our international expansion together," Adrien Ledoux, JobTeaser CEO.
Tetra Tech, a provider of high-end consulting and engineering services, agreed to acquire RPS Group, a global professional services firm. Financial terms were not disclosed.
“The RPS Group advances our long-term strategy to enhance our position as the premier global high-end consulting and engineering firm focused on water, environment, sustainable infrastructure, and energy transformation. We welcome the RPS Group’s associates to join us and collectively leverage our long-term client relationships and project experience. As a global consultancy with a commitment to high-end solutions, we can offer our expanded team of associates even greater professional opportunities,” Dan Batrack, Tetra Tech Chairman and CEO.
Tetra Tech is advised by Bank of America and Hogan Lovells.
Caseware, the global SaaS company for accounting, analytics and audit, completed the acquisition of Audicon, a provider of software solutions and services related to audit, risk and compliance. Financial terms were not disclosed.
"We're excited to formally join the Caseware family after being a trusted partner for more than two decades. Our shared values of innovation, customer excellence, trust and collaboration make this an ideal partnership. Together, we will lead this transformative next chapter of accounting and auditing software," Jörg Fuhrmann, Audicon Managing Director.
Glencore International, a mining company, agreed to acquire an 18.75% stake in the MARA Project, a brownfield project, from mining firms Newmont and Yamana Gold, for $255m.
"Yamana looks forward to continuing its work with Glencore and the local stakeholders as MARA advances its permitting, engineering, social licensing and field work towards the goal of finalizing the feasibility study and the environmental and social impact assessment, which the Company expects will further increase the Project's value," Yamana Gold.
Media Mogul Courbit joins Berlusconi, Niel in chase for M6 stake.
French media mogul Stephane Courbit joined a list of bidders for a stake in French television company Groupe M6, Bloomberg reported.
The two bidding parties so far have presented a non-binding offer for German media group Bertelsmann’s roughly 48% stake in M6. Bertelsmann is selling its stake in M6 after a plan to merge the company with Television Francaise 1 failed to overcome antitrust hurdles. The deal to combine France’s two biggest television operators raised concerns the combined company would become dominant in advertising and TV service distribution.
Remgro to sell stake in TotalEnergies South Africa.
South African billionaire Johann Rupert’s investment vehicle, Remgro, is planning to sell its stake in the local unit of energy giant TotalEnergies.
Remgro’s 25% holding in the arm of the Paris-based company, which owns refining operations and gasoline stations in South Africa, has a book value of $140m.
The sale process is underway with bids expected to be submitted within the coming weeks, Bloomberg reported.
Sabadell in talks for potential sale of its payments business.
Banco de Sabadell, a Spanish multinational financial services company, is in discussions to sell a unit that handles processing of transactions made with credit and debit cards, Bloomberg reported.
“Sabadell is in the process of analyzing a possible strategic agreement with an industrial partner specializing in the Bank’s acquisition business. The acquiring business is one of the pillars of the value proposition for Banco Sabadell customers in the corporate, business and self-employed segment," Sabadell.
Made.com seeks buyer after fundraise falls flat.
Made.com, a furniture manufacturer, is putting itself up for sale as part of a review of possible options to “maximise value for shareholders”, as it has been unable to attract investors to an equity fundraising.
The struggling online furniture retailer, which floated last year and has seen its shares almost wiped out since, said “unexpected events” this month in the UK have seen trading and its financial position both deteriorate further, Proactive Investors reported.
Burjeel to begin scaled-down IPO without international investors.
Healthcare provider Burjeel Holdings will begin selling shares to investors in the United Arab Emirates starting September 30, after opting against also targeting its initial public offering to international players.
On offer is about 550.7m shares, representing 11% of the company, according to its prospectus. The offering will include 350.3m shares to be sold by VPS Healthcare Holdings, which owns 79.8% of Burjeel, Bloomberg reported.
Burjeel - which had initially sought a $750m deal -- decided to target only local investors instead of international money managers after a firm controlled by Abu Dhabi’s royal family bought a stake.
APAC
Australia’s Link Administration has pulled the plug on a potential takeover by Canadian technology company Dye & Durham, ending a two-year process that was at one point worth C$3.2bn ($2.4bn).
The time for the satisfaction of outstanding conditions has expired, and there is no expectation they would be resolved. Australia’s biggest service provider to its pensions industry is still considering whether to pay shareholders a special dividend of A$0.08 per share.
The decision not to proceed followed Link’s rejection of Dye & Durham’s revised offer, as the Toronto-based suitor sought to recut the deal in light of liabilities stemming from a collapsed fund Link. Dye & Durham said while making its latest proposal that it could not commit to funding redress payments for the collapsed fund, Bloomberg reported.
Link is advised by Macquarie Group, UBS, Herbert Smith Freehills (led by Tony Damian and Nicole Pedler) and GRACosway (led by Ben Wilson). Dye & Durham is advised by Barrenjoey Capital Partners, Canaccord Genuity, Clayton Utz, DLA Piper, Dentons (led by Ora Wexler and Darren Acres) and LodeRock Advisors.
OZ Minerals, the target of a takeover attempt by BHP Group, has approved a A$1.7bn ($1.1bn) investment to develop its West Musgrave copper-nickel project in Western Australia, Bloomberg reported.
All key regulatory approvals for the project are now in place, and OZ Minerals’ lenders have provided a new $723m, 18-month syndicated facility to help develop West Musgrave. The final funding mix may include potential to sell a minority interest in the project to a strategic partner.
OZ Minerals is advised by Greenhill & Co, Macquarie Group and Gilbert + Tobin. BHP Group is advised by Citigroup.
India's Byju's has paid $234m to Blackstone, settling its dues owed to the private-equity firm as part of a $950m deal to buy Aakash Educational, Reuters reported.
Byju’s, India’s edtech startup, agreed to acquire Aakash Educational Services, a test preparatory services provider, from Blackstone for $1bn. The consideration reportedly involves $600m in cash and the rest in stock.
“As 12 months of the pandemic have shown, there’s a clear need to disrupt education by combining offline with online, which has low single-digit penetration. The future of learning is hybrid, and bringing students to a nearby offline center provides rigor, intensity and human touch,” he said via a Zoom call to announce the acquisition," Byju Raveendran, Byju's Founder and Chief Executive Officer.
Tata Steel to merge seven group companies with self.
Tata Steel is merging seven smaller metal units with itself in a bid to consolidate resources that will help pare costs, simplify the holding structure and boost its balance sheet.
Tata Steel’s board approved the amalgamation of Tata Steel Long Products, The Tinplate Co. of India, Tata Metaliks, TRF, The Indian Steel & Wire Products, Tata Steel Mining and S&T Mining into itself.
The reorganization by the flagship steelmaker of the $128bn Tata Group underscores its intent to pool scattered resources within the conglomerate and wring out cost synergies amid warnings of a global recession, slowdown in key global consumption markets and high input costs.
Besides leveraging Tata Steel’s countrywide marketing and sales network, the merger, once completed, will help in reducing overhead and corporate costs. There will also be synergies in procuring raw material, inventory management as well as reduced logistics costs, Bloomberg reported.
Baring Private Equity weighs a $8bn deal to merge with Tricor and Vistra. (FS)
Baring Private Equity Asia is exploring a combination of two Hong Kong-based business services firms it owns, Tricor and Vistra, Bloomberg reported.
BPEA is working with advisers on a merger that could value its two portfolio companies at $7bn to $8bn. The pan-Asian buyout firm - which itself is merging with Swedish investment firm EQT - has notified Tricor and Vistra’s creditors about the merger plans.
To help set a valuation for the merged business, BPEA is weighing selling a minority stake in Vistra, the larger of the two firms. It’s an option under consideration and BPEA might not proceed with the stake sale. Vistra had drawn preliminary interest from other private equity firms including Warburg Pincus.
Prudential Financial weighs buying a minority stake in ABC Life.
Prudential Financial, a financial services company, is considering buying a minority stake in ABC Life Insurance, the insurer controlled by Chinese state-owned Agricultural Bank of China.
The US insurer is working with a financial adviser as it evaluates making an offer for the stake. The stake sale in Beijing-based ABC Life has also drawn interest from other financial institutions.
The investors who own about 49% of closely-held ABC Life are exploring a sale of a minority stake. A transaction could value the whole life insurance business at about $3bn to $4bn, Bloomberg reported.
Blackstone to sell $400m stake in Indian REIT Embassy, ADIA eyes investment. (FS)
Blackstone will sell a stake worth up to $400m in Embassy Group Office Parks REIT, India's biggest real estate investment trust, via Indian stock exchange block deals, Reuters reported.
Abu Dhabi's sovereign wealth fund Abu Dhabi Investment Authority (ADIA), one of the world's largest, is likely to pick up at least half of the stake that Blackstone is to sell.
In the block deals being planned on the Indian exchanges early next week, Blackstone's sale would be worth about $300-400m. The block trade will be Blackstone's third stake sale in Embassy, following two such sales in 2020 and 2021, where the private equity group has sold shares worth more than $500m collectively. Blackstone currently has a 32% stake in the Embassy REIT and at the current market value the proposed sale by Blackstone would represent 7.2% to 9.6% of its stake.
China Construction Bank to set up a $4.2bn fund to buy properties. (FS)
China Construction Bank, a corporate investment banking company, will set up a $4.2bn fund to buy properties from developers, as policy makers beef up efforts to contain a real estate crisis that’s weighing on the economy.
The fund will “invest in existing assets” of real estate companies and renovate the properties into rental housing. The fund lasts for 10 years, with a possible extension, Bloomberg reported.
"By establishing the fund, CCB helps explore the new growth model of the real estate market and facilitates the stable and healthy development of the property sector,” CCB.
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