EMEA
As reported by Financial Times, there is also a strong political element to a transnational merger of this scale. Franco-Italian relations have been strained by the opposing directions in which Emmanuel Macron and Matteo Salvini wish to drag Europe. Keeping both sides happy, as well as dealing with US president Donald Trump, will require deft government relations.
Goldman Sachs, Nomura, d'Angelin & Co, Darrois Villey Maillot Brochier and Sullivan & Cromwell are advising Fiat Chrysler Automobiles.
American Tower Corporation, one of the largest global REITs, agreed to acquire Eaton Towers Holding, a leading independent pan-African tower company with over 5000 tower sites, for $1.8bn. As a result of the transaction, the company also expects to accelerate new build activity across the region due to expanded relationships with multiple key tenants.
Jim Taiclet, American Tower’s Chief Executive Officer stated: “This transaction will significantly augment our existing footprint in Africa and positions ATC to take even better advantage of the growth opportunity in the region as 4G mobile data technology is deployed to serve millions of Africans over the coming years.”
Varde Partners, a leading private equity firm, invests in Equiom Group, a well-established, international professional services provider offering a range of innovative and effective business partnering solutions. Financial terms were not disclosed.
Varde's investment would help future expansion and growth of Equiom. Varde joins Equiom’s longstanding equity partner, LDC.
"We are excited to partner with Equiom and support the growth of the business. With a rich history and ambitious plans for expansion, we believe Equiom is positioned for continued success. This transaction supports our objective to create value by building long-term partnerships in the financial services industry." Elena Lieskovska, Varde Partner and Head of European Financial Services.
Proskauer Rose served as legal advisor to Varde.
Private equity firm Warburg Pincus invested in Oakley Capital-backed Inspired, a leading global group of premium schools. Financial terms were not disclosed.
Peter Dubens, Managing Partner of Oakley Capital, commented: "Since backing Nadim Nsouli when he founded Inspired in 2013 with four schools, we have seen him and his team develop the business into one of the world's leading global premium schools groups with more than 50 schools. We are excited to welcome Warburg Pincus as an Inspired shareholder and look forward to working together to support Inspired through the next stage of its growth."
Rothschild & Co advised Inspired Education. Liberum Capital and Greenbrook advised Oakley Capital.
The Carlyle Group, to acquire Forgital, a leading European vertically integrated forging company. Financial terms were not disclosed.
“We admire Forgital’s strong business model, manufacturing excellence, and high capability to innovate. In partnership with the experienced management team and talented workforce, we look forward to supporting Forgital’s expansion through the creation of a global growth platform, notably in the aerospace sector." Filippo Penatti, Carlyle Managing Director.
Industri Udvikling, a Danish-owned capital fund specializing in medium-sized Danish companies with significant growth potential, acquires a minority stake of 40% in Wila, a leading developer and manufacturer of high-tech solutions and components of stainless steel. Financial terms were not disclosed.
The deal has been concluded, with a view of strengthening Wila's growth journey. Lars Lauridsen, Wila CEO, retains the majority shareholding in the company.
"With the new partner, we wish to continue our current work of professionalizing the company and constantly becoming better at what we do. We welcome having as skilled and growth-oriented a partner as Industri Udvikling in the ownership of Wila. It is a huge competence boost for us." Lars Lauridsen, Wila CEO.
KKR considers taking Axel Springer private.
KKR & Co and Axel Springer are in talks about a strategic investment by the private equity firm that could take Bild tabloid publisher private.
KKR may launch a tender offer to buy out the minority shareholders in Axel Springer, which owns the mass-circulation daily Bild. Going private could solve the problem that the group has in terms of its ability to do large deals.
Terms of a potential investment by KKR in Axel Springer are still being reviewed, and there’s no guarantee that a deal will be reached.
Watches of Switzerland shares rise by 15% on debut day of trading.
Shares in Britain’s most prominent watch retailer Watches of Switzerland Group rose by as much as 15% on their debut on the London Stock Exchange.
By late morning on Thursday, the stock was trading at $3.8, giving the luxury timepiece retailer a market capitalization of £735m($929m). Earlier in the day, the shares rose as high as $3.98.
“Today marks the next phase in our growth story. I am delighted by the reaction we have received from the market to our business and the significant opportunities that lie ahead.” Brian Duffy, Watches of Switzerland Group CEO.
First Group to sell Greyhound bus unit. (FS)
UK transport company FirstGroup has agreed to sell its Greyhound coach business as part of an overhaul that activist investors have been pushing for. FirstGroup said it would spin off its profitable UK First Bus operations, as it announced surging revenues but made a $123m pretax loss.
In a wide-ranging review, FirstGroup said it would pursue either a sale, demerger or joint venture for its UK bus business and cautioned that it had concerns with the “current balance of risk and reward” over bidding for more UK rail franchises.
The activist investor Coast Capital, the largest single shareholder with a 10% holding, has been pushing for a separation of the US and UK businesses and to replace the board, having declared First’s strategy – and particularly rail investment – as “extraordinarily destructive of capital.”
Bank of Kigali looking to acquire Sonarwa.
Bank of Kigali, a commercial bank in Rwanda, is looking to acquire local insurance company Sonarwa, the bank’s chief financial officer said. Nigeria’s Industrial And General Insurance holds a 35% stake in Sonarwa, which offers aviation, fire, automotive and marine insurance.
“We are still talking to Sonarwa. We will know for sure this year but we have not yet concluded. We have expressed interest for a while,” Nathalie Mpaka, told Reuters. “The advisers will report to us between three to four weeks. Our next board meeting is in August, so by August we should have some proposal to the board.
Poundland attracts PE interest. (FS)
Poundland, a UK-based discount retailer, has attracted takeover interest from private equity firms, according to a Daily Telegraph report.
Poundland is owned by Steinhoff International that underwent a restructuring last year after discovering accounting irregularities. Poundland reported a 1.6% increase in sales to GBP 811m the previous six months.
Rumors of PEs interest appeared in early 2018, when Advent, Apax, KKR, CVC, CD&R, Bain Capital were rumored to study the asset.
PGE might consider buying assets of Tauron and CEZ.
PGE, a state-owned public power company and the largest power producing company in Poland, will consider buying assets of Tauron and CEZ, two energy companies. The firm will evaluate the assets' potential once they are put on sale.
"PGE believes it is too early to say whether it is interested in heating assets of peers Tauron and CEZ once these assets are put up for sale," CEO Henryk Baranowski said.
AMERICAS
Activist investor Carl Icahn, who has built a $1.6bn position in Occidental Petroleum Corp, decided to sue the company for alleged mishandling of the $58bn acquisition of Anadarko Petroleum Corporation. Icahn believes “that the Occidental board and management are in far over their heads, have made numerous blunders in recent months and might continue to trip over their feet if the board is not strengthened,” the lawsuit said. Occidental’s proposal represented a premium of approximately 20% to the value of Anadarko’s stock price as of April 23, 2019.
The lawsuit seeks to review documents that detail the sale of preferred stock to Berkshire and information on an agreed sale of Anadarko’s Africa Assets to Total. Icahn may seek to call a special meeting of shareholders to remove and replace directors, the lawsuit said, and believes that Occidental should have been a seller rather than a buyer in the current market.
Anadarko was advised by Evercore, Goldman Sachs, Vinson & Elkins, and Wachtell Lipton, Rosen & Katz. Occidental was advised by Bank of America Merrill Lynch, Citigroup, and Cravath, Swaine & Moore.
Frontier Communications, a telecommunications company in the United States, sold its operations and all associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital and Searchlight Capital Partners for $1.4bn. Frontier has also agreed to provide certain transition services to the new ownership group following the closing.
“The sale of these properties reduces Frontier’s debt and strengthens liquidity,” said Dan McCarthy, Frontier President and Chief Executive Officer. “We are pleased to have a buyer with extensive experience building and operating advanced fiber-based communications assets in these regions. We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve.”
Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Paul Weiss Rifkind Wharton & Garrison are advising the buyers. Evercore and Cravath Swaine & Moore are advising Frontier.
Genstar Capital, a private equity firm, agreed to acquire Prometheus Group, an asset management software company, from Francisco Partners, a private equity investment firm, for over $1bn.
Eli Weiss, Managing Director of Genstar, said: "We have invested extensively in software solutions providers similar to Prometheus, and their reputation as a leader in the plant maintenance technology sector is well deserved. Eric and his team have built an integrated easy-to-use platform, and their solutions help transform plant maintenance operations. Prometheus aligns well with our previous investments, and we are excited to work with Eric and his team to help further expand the solutions portfolio and target acquisitions that will broaden the company's suite of services."
Lazard and Holland & Knight are advising Prometheus. Irell & Manella is advising Genstar. Paul Hastings is advising Francisco Partners.
Insight Venture Partners acquired Recorded Future, the leading threat intelligence company, for $780m. Insight acquired a controlling interest in the company, in addition to the minority stake in the company previously owned. Recorded Future will leverage Insight's deep experience and internal consulting arm, Insight Onsite, to further its technical and product vision through a range of growth-oriented activities.
Mike Triplett, managing director at Insight, said: "Insight's renewed investment is a testament to the vision and direction laid out by Recorded Future's leadership team. They envision a world where everyone applies intelligence at speed and scale to reduce risk, remaining hyper-focused on providing clients with the threat intelligence necessary to understand their environments, manage risk, and combat malicious actors through contemporary awareness gained from the implementation of a threat intelligence-led security strategy."
PJT Partners and Foley Hoag advised Recorded Future. Willkie Farr & Gallagher advised Insight Venture Partners
Qatar Investment Authority, Qatar's state-owned holding company, invested $500m in SoFi, a mobile-first personal finance company. The investment values the company at $4.3bn on a pre-money basis.
"Over the last year, we've worked aggressively to grow SoFi from a desktop lending business to a broad-based, mobile-first financial platform enabling members to borrow, save, spend, invest and protect their money," said Anthony Noto, CEO of SoFi. "We're thrilled to have QIA as a new investor and partner in our journey to help our members Get Their Money Right."
Wachtell Lipton Rosen & Katz is advising SoFi. Morgan Stanley and Shearman & Sterling are advising QIA.
Brazilian Grupo SBF, the owner of sporting goods retailer Centauro, made a counteroffer of $3.50 per share to acquire online shoe retailer Netshoes. The offer values the company at around $109m, and represents a 40% premium over the offer made by Brazilian retailer Magazine Luiza at the end of April, which valued Netshoes at around $62m.
Magazine Luiza offered to pay $3 in cash per share. The acquisition is aligned to the Magazine Luiza's efforts to increase its footprint in the increasingly competitive Brazilian e-commerce, as Amazon revs up operations in Latin America's largest economy seven years after entering the market.
Netshoes confirmed SBF's offer and is reviewing the proposal but has not made a final determination.
Goldman Sachs, Campbells, Demarest Advogados, and Simpson Thacher & Barlett are advising Netshoes.
Private equity firm Crestview Partners acquired Ontario-based Concours Mold, a manufacturer of steel molds and tooling. The acquisition of Concours is the first step in a strategy to invest $200m of equity to acquire and integrate tooling and mold companies. Financial terms of the transaction were not disclosed.
"There is a compelling opportunity to create a global technology leader in the highly fragmented tooling and mold industry," said Alex Rose, Partner of Crestview and co-head of the firm's industrials investment vertical. "Identifying niche industries which have not yet seen the emergence of a global leader is a core focus of Crestview's industrials investment strategy. We are excited to partner with the team at Concours to help accelerate the company's growth around the world and position the business for long-term success."
Scotiabank, Borden Ladner Gervais, and Holden & Moorhouse advised Concours Mold. Gibson Dunn & Crutcher and Stikeman Elliott advised Crestview.
Thoma Bravo, the leading private equity investment firm, invested in Canada-based Cority, the trusted provider of environmental, health, safety and quality software. Previous majority investor Norwest Venture Partners will continue to retain a significant stake in the business and will re-invest over half of its proceeds. Financial terms were not disclosed.
“We have tracked Cority’s success for years through our numerous investments in other segments of the broader Governance Risk and Compliance (GRC) market,” said Hudson Smith, a Partner at Thoma Bravo. “With so many point solutions in the GRC market, we believe that Cority is unique in that it offers enterprise clients a single platform to manage their health, safety, environmental, sustainability, operational risk and quality needs. We look forward to helping Mark and the team further invest to deepen and broaden Cority’s solutions.”
Harris Williams & Co., William Blair & Co, and Goodwin Procter advised Cority. Kirkland & Ellis advised Thoma Bravo.
Private equity firm One Equity Partners completed the sale of Anvil International, a pipe fittings, pipe hangers, and piping support systems provider, to Smith-Cooper International, a leading designer, producer, importer and value-added distributor of high quality pipe, valves, and fittings. Financial terms were not disclosed. The deal was first announced in April.
“Bringing together Anvil and Smith-Cooper is a unique opportunity to significantly expand the strong and complementary capabilities of both organizations,” said Jason Hild, Chief Executive Officer of SCI. “Anvil’s commitment to domestic manufacturing and deep relationships with their distributor partners make them an excellent complement to Smith-Cooper, with our expertise in global sourcing and our ability to strongly service our customers. We are excited to work collaboratively with the talented Anvil team to create a bright future for our combined business.”
BlackArch Partners, JP Morgan and Dechert advised Anvil. Barclays and Davis Polk advised Smith-Cooper.
Golden Gate Capital, a leading private equity investment firm, invested in Ensemble Health Partners, an industry-leading national revenue cycle management provider. Existing investor, Bon Secours Mercy Health will sell 51% of the equity in Ensemble. Financial terms were not disclosed.
Rishi Chandna, Managing Director at Golden Gate Capital, said: "Ensemble has established itself as the clear leader in revenue cycle management and is highly respected for its approach, as it partners with clients, identifies the root cause of issues within the revenue cycle and provides customized, innovative solutions for its clients' future success. The Company is also differentiated by its commitment to empower both its people and its clients to realize their full potential and create a better, more sustainable healthcare system."
Guggenheim Partners advised Bon Secours Mercy Health.
Private equity firm New Mountain Capital invested in W2O, the leading independent provider of analytics-driven, digital-first marketing communications to the healthcare sector. Current investment partner Mountaingate Capital is exiting W2O in the transaction. Financial terms were not disclosed.
“W2O is a true leader in healthcare marketing, communications and analytics. We are excited to partner with Jim and his amazing team to support their next phase of growth as a key player in the evolution of the segment,” said Matt Holt, Managing Director at New Mountain Capital. “Healthcare is just beginning to discover new forces in medicine, prevention and cures, and W2O is participating with leading client organizations throughout the healthcare continuum. Our partnership is meant to support investments in key areas while enabling W2O to maintain its successful entrepreneurial culture, commitment to innovation, and unmatched client focus.”
Canaccord Genuity and Houlihan Lokey advised W2O.
Private equity firm Amulet Capital conducted a three-way $130m merger of its southeast Pennsylvania gastroenterology groups, Regional GI, Main Line Gastroenterology Associates, and Digestive Disease Associates. Amulet Capital is uniting the groups, creating the 7th largest physician group in the US. Amulet's deal is the fourth such in gastroenterology. Several analysts predicted a significant boom in GI-focused PE investment in 2019.
Partners Group, the global private markets investment manager, invests in Confluent Health, a US-based physical and occupational therapy-focused provider. Financial terms were not disclosed.
Following the investment, Partners Group will work closely with Confluent's management team, led by CEO Larry Benz, on a number of strategic and value creation initiatives to support ongoing organic and acquisitive growth.
"The investment by Partners Group marks a real milestone for Confluent Health, and we are delighted to have attracted a partner of its caliber and scale. Confluent has an exciting trajectory ahead, and we look forward to working together with Partners Group's industry-leading team to bring our vision of physical therapist-led healthcare transformation to reality." Larry Benz, Confluent Health CEO.
CBS, Viacom merger negotiations expected to resume.
The long-anticipated talks between the two companies controlled by the Redstone family’s National Amusements are expected to begin in mid-June. Robert Bakish, Viacom CEO would likely run the combined entity.
The CBS board met on Wednesday to review strategic options that included an unofficial offer it made to buy Lions Gates’ Starz cable network for $5bn.
The widely anticipated third attempt to recombine CBS and Viacom is the latest in waves of media mergers to gird against the competition for customers from digital rivals Netflix, Amazon.com and Apple.
Eaze looking to raise $100m in new financing round. (FS)
Snoop Dogg-backed cannabis company Eaze, a medical marijuana delivery firm, is raising a new round of financing that’s expected to value it at $800m. The San Francisco company is seeking $100m in a fundraising bid that could value the pot delivery service at 140% more than the $300m it was pegged at in November 2018. The latest fundraising comes as Google threatened to ban a slew of marijuana apps from its Google Play Store, including delivery apps like Eaze.
Aberdeen to buy desalination plant for $1bn. (FS)
Aberdeen Standard Investments has agreed to buy the Carlsbad desalination plant in Southern California for more than $1bn. The facility is owned by a joint venture of Stonepeak and Poseidon.
A deal for the plant could help lift second-quarter activity after a relatively slow first quarter when 508 transactions worth a combined $58bn were announced. That marked the lowest quarterly level in five years and second-lowest quarterly deal volume on record.
Adams Street raises over $1.1bn for debut private credit program. (FS)
Adams Street Partners, a leading private equity firm, has completed fundraising for its inaugural private credit program after securing approximately $1.1bn in capital, including leverage.
Adams Street said that its private credit program saw strong demand from institutional investors worldwide, with commitments from both new and existing investors in the United States, Europe, and Asia. Backers included public and corporate pension plans, insurance companies, foundations, family offices, and high net worth individuals.
Adams Street’s private credit investment strategy provides financing solutions to sponsor-backed middle-market companies across capital structure, including first lien loans, revolvers, unitranche facilities, second lien loans, mezzanine debt, and preferred equity.
Mountaingate recapitalized MeritDirect. (FS)
Mountaingate Capital recapitalized Rye Brook, New York-based MeritDirect, a provider of multi-channel B2B database products and services solutions. No financial terms were disclosed.
“We are very excited to partner with Mountaingate as we embark on our next phase of growth,” said Rob Sanchez, CEO of MeritDirect. “Mountaingate brings a unique market perspective stemming from their extensive data and digital marketing services investment experience that will be invaluable as we look to prioritize strategic investments to accelerate our growth and allow us to better serve our clients.”
JEGI advised MeritDirect.
Brazilian federal court suspends the sale of Petrobras' fertilizer units.
Reuters reported, Brazil’s state-run oil company Petroleo Brasileiro said on Wednesday that a federal court had issued injunction suspending the sale of its fertilizer units Araucaria Nitrogenados and Fertilizantes Nitrogenados III.
Petrobras said in a securities filing that it would take legal action against the decision and defend the interests of the company and its investors, underlining that its divestment program is key to reducing its indebtedness.
Host Hotels to sell 3 Rio de Janeiro properties in exit from Brazil.
Host Hotels, a real estate investment trust that invests in hotels, is looking to sell 3 Rio de Janeiro hotels in an exit from Brazil. The group aims to focus on its core North American operations. The decision underscores how investments made in Rio ahead of the 2016 Olympic Games have turned into white elephants in a city plagued by rising violence and public finances in disarray.
Gannett and Gatehouse Media entered merger talks.
Reuters reported that Gannett, a publicly traded American mass media holding company, and Gatehouse Media, one of the largest publishers of locally based print and digital media in the United States, entered merger talks. Gannett has been recently struggling with a fall in revenue and has invested millions to scale up its digital footprint. Gannett recently fended off newspaper chain MNG Enterprises’s efforts to put its nominees on the Gannett board, months after it rejected MNG’s $1.4bn hostile takeover bid.
Santé Ventures secured $250m for its new fund. (FS)
Santé Ventures raised $250m from over 30 limited partners for its third namesake fund. Founded in 2006, the Austin-based firm focuses on early-stage investments in the biotech and health tech sectors. Its previous targets include EndoStim, Farapulse and LDR Spine.
Eagle Materials to split it's core businesses.
Eagle Materials said its board had approved a plan to spin off its heavy materials and light materials businesses into two publicly traded entities, bowing to pressure from hedge fund Sachem Head Capital Management.
Earlier this month, Sachem, which disclosed a 9% stake in Eagle Materials in March, urged the company to separate its cement and wallboard businesses and nominated two candidates to the company’s board. After the split, Eagle’s heavy materials business will operate as a cement company, and the light materials business will continue to make gypsum wallboard and recycled paperboard.
The separation will be by a tax-free spin-off to Eagle shareholders and is expected to be completed in the first half of 2020.
APAC
Mahathir Mohamad, Malaysia's Prime Minister, being concerned about the loss of potential job losses, asked for more details on the merger. Axiata has 12k employees in Malaysia.
Citigroup is advising Telenor, while Morgan Stanley is advising Axiata on the merger.
Melco Resorts & Entertainment, a developer, owner, and operator of casino gaming and entertainment casino resort facilities, acquired a 20% stake in Crown Resorts, one of Australia's largest gaming and entertainment groups, from CPH Crown Holdings for $1.2bn. The transaction will close in two equal tranches on June 6, 2019 and on or prior to September 30, 2019.
Lawrence Ho, Chairman and Chief Executive Officer of Melco Resorts & Entertainment, said, “I view Melco’s investment in Crown as an incredible opportunity to purchase a strategic stake in what I believe to be Australia’s premier provider of true integrated resort experiences. Crown’s Resorts in Perth and Melbourne are world class entertainment destinations and I believe that Crown Sydney, much like Melco’s Morpheus property, will create an architectural icon for the city, the country and the world. In addition, Crown’s UK assets have qualities that are second to none. Like Melco, Crown is a leader in creating new and exciting luxury and entertainment experiences for its guests."
Eight Capital, a distressed and special situations investment manager, and Emso, a London and New York-based emerging markets fixed income asset manager, acquired Ambit Flowers Asset Reconstruction Co, an asset reconstruction company, from JC Flowers, a leading private investment firm. Financial terms were not disclosed.
"I am excited to partner with JC Flowers and access the firm's specialized knowledge and deep relationships in the financial services industry across the globe. JC Flowers has an established past track record of turning around troubled financials firms with large pools of NPLs which we expect will translate into a substantial advantage for our business," said Ravi Chachra, Chairman of Eight Capital. "In addition, Emso will bring its vast experience of investing in emerging markets across geographies and sectors to strengthen the partnership."
Hansoh Pharma seeks to rise $1bn in IPO. (FS)
Bloomberg reported that Hansoh Pharmaceutical Group is seeking to raise as much as $1bn in a Hong Kong IPO after attracting cornerstone investors including Singapore’s sovereign wealth fund GIC Pte and Boyu Capital.
At $1bn, Hansoh’s share sale would be the second biggest in Hong Kong. GIC will subscribe for $70m of Hansoh’s shares, the biggest amount among the nine cornerstone investors, followed by a $60m commitment from Boyu Capital, the terms show. Ally Bridge, OrbiMed Advisors, and Prime Capital will each purchase $40m of shares. Hillhouse, Cormorant Asset Management, Vivo Capital, and Shanghai Pharmaceuticals Investment Ltd. are also attracted to the deal.
LaSalle to launch $1bn China logistics fund. (FS)
US-based real estate investor LaSalle Investment Management is set to launch its debut China-focused logistics fund with a target to raise about $1bn.
The fund, which is expected to hit the market towards the end of this year, will be the first dedicated logistics vehicle from LaSalle. The move to launch a dedicated fund comes over a year after LaSalle formed a $300m joint venture with JD.com-backed developer China Logistics Property Holdings. The alliance, which focused on acquiring and developing a network of logistics parks in the region, gave LaSalle certain pre-emptive rights to its logistics assets and developments.
EV Growth Fund makes a final close at $200m. (FS)
EV Growth Fund, a joint venture between Sinar Mas, East Ventures and Yahoo! Japan, has made a final close at $200m, exceeding its $150m target.
According to a report by Deal Street Asia, the fund secured commitments from investors including SoftBank Group Corp, Pavilion Capital, and Indies Capital.
"EV Growth is focused on providing growth capital to startups in Indonesia and the rest of Southeast Asia. We had reported in February that the fund was oversubscribed, forcing the firm to revise its initial target and setting it on course to become one of the largest vehicles in the region." Willson Cuaca, EV Growth Managing Partner.
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