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AMERICAS
NGL Energy Partners, which owns and operates a vertically integrated energy business, acquired Hillstone Environmental Partners, which provides water pipeline and disposal infrastructure solutions to producers with a core operational focus in the state line area of southern Eddy and Lea Counties, New Mexico and northern Loving County, Texas in the Delaware Basin, from Golden Gate Capital for $600m.
“The integration of the Mesquite assets is fully underway and providing immediate benefit to our customers. The certainty of offtake and reliability of our integrated system of large diameter pipelines will provide approximately 2.7m barrels per day of operational disposal capacity in the Delaware Basin, including the addition of Hillstone. The high-quality Hillstone assets include long-term contracts with investment grade producers. The contracts have an average remaining term of greater than 10 years, minimum volume commitments, and first call priority volume commitments that minimize impacts of timing related to recycle and reuse activities.” Doug White, NGL’s Executive Vice President of Water Solutions.
Barclays, Hunton Andrews Kurth and Winston & Strawn are advising NGL. Barclays and Jefferies & Company are providing debt financing. Tudor Pickering Holt, Nob Hill, and Kirkland & Ellis are advising Hillstone Environmental Partners and Golden Gate Capital.
Misonix, a provider of minimally invasive therapeutic ultrasonic medical devices, completed the $109m acquisition of Solsys Medical, a privately-held regenerative pharmaceutical company. The deal was announced in May 2019.
"We have known the team at Solsys for over two years and have been impressed in their ability to grow their revenue meaningfully during that time. The acquisition of Solsys Medical is a transformative event for Misonix and represents a strategically and financially compelling growth opportunity for the company and for our shareholders." Stavros Vizirgianakis, President and Chief Executive Officer of Misonix.
Canaccord Genuity and Greenberg Traurig advised Solsys Medical. Berkeley Research Group, JP Morgan, Jones Day and JCIR advised Misonix.
Genstar Capital, a leading private equity firm, completed the acquisition of a major stake in OEConnection, the leading global automotive technology provider for OEM distribution networks, from Providence Equity Partners. Financial terms were not disclosed.
As part of the transaction, current investors Ford Motor Company and General Motors will each retain their minority investments in OEC.
“We are thrilled to join forces with Genstar as we continue to work to expand the OEC footprint and our product and service offerings for customers across the globe,” Chuck Rotuno, OEC Chairman and CEO.
UBS and Debevoise & Plimpton advised OEC. Willkie Farr & Gallagher, and Chris Tofalli advised Genstar.
Nestlé Health Science invested in Before Brands, specialists in early childhood food allergy prevention. Gurnet Point Capital, a private investment firm focused on healthcare, invested alongside NHSc in this financing and has led prior financing rounds for Before Brands. Financial terms were not disclosed.
"The prevalence of food allergies among children is increasing, however, studies have shown that consistently exposing children at a very early age to a potential food allergen can reduce the development of an allergy to that food by up to 80%. It would be very difficult for parents to achieve this kind of consistent immune-system training to 16 different allergens on their own; SpoonfulOneTM is a convenient and natural solution that fits with the Nestlé Health Science mission of healthier lives through nutrition." Greg Behar, CEO of Nestlé Health Science.
Evercore, William Hood and Company and Goodwin Procter advised Before Brands.
New Mountain Capital, a leading private equity firm, acquires a stake in Emids, a leader in digital engineering and transformation solutions to the healthcare industry, from Council Capital, a healthcare-focused private equity firm, and Baird Capital, a private equity firm. Financial terms were not disclosed.
Emids partners with health technology companies, payers, providers, and life science firms to accelerate the adoption of next-generation digital technologies and manage an increasingly complex data ecosystem to drive high quality, accessible, and affordable healthcare. The company provides digital transformation, clinical data engineering, custom software development, data analytics, and integration, and strategic advisory consulting services nationwide.
“We are thrilled to be partnering with Saurabh and the emids management team. We look forward to supporting the Company’s continued growth by identifying both organic and inorganic initiatives to help the Company realize its full potential.” Jack Qlan, New Mountain Managing Director.
Credit Suisse and DLA Piper are advising Emids. Ropes & Gray is advising New Mountain Capital.
Delta Air Lines, a leading US airline operator, agreed to acquire a 20% stake in Latam Airlines, Latin America's leading airline group, for $1.9bn.
Delta will invest $1.9bn for a 20% stake in LATAM through a public tender offer at $16 per share, to be funded principally with newly issued debt and available cash. Delta will also invest $350m to support the establishment of the strategic partnership. Delta will acquire four A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase ten additional A350 aircraft to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation.
“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks. We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers.” Enrique Cueto Plaza, Latam CEO.
Cleary Gottlieb Steen & Hamilton is advising LATAM Airlines.
Alpine Investors-backed Apex Service Partners, a platform of award-winning HVAC, plumbing and electrical services businesses, invested in Southern Air Heating & Cooling, a leading residential HVAC services company with locations across Louisiana and Mississippi. Financial terms were not disclosed.
"We are thrilled and privileged to partner with Southern Air Founder and CEO Ira Preuett, and welcome Southern Air's incredible employees to Apex. They have a proven history of providing fast, friendly and highly technical services that fit perfectly with Apex's mission of building a people-focused national HVAC, plumbing and electrical services platform. Southern Air is an extremely impressive operation with a bright future of growth ahead." AJ Brown, CEO of Apex.
Morrison & Foerster is advising the buyers.
AMETEK, a leading manufacturer of electronic instruments and electromechanical devices, is set to acquire Gatan, a leading manufacturer of instrumentation and software, from Roper Technologies in an all-cash transaction valued at $925m.
Gatan is a pioneer in direct detection technology for electron microscopy, supporting high-end research to solve some of the world’s most complex challenges in materials and life sciences.
“We are very excited to welcome Gatan to AMETEK. Their differentiated technology solutions, premier brand, and leadership positions in attractive growth markets make this a highly attractive acquisition for AMETEK.” David A. Zapico, AMETEK Chairman, and CEO.
Sagewind Capital-backed By Light, an IT service management company, agreed to acquire Cole Engineering Services, an industry-leading, full-spectrum (live, virtual, constructive and gaming) training and analysis developer, integrator and services provider. Financial terms were not disclosed.
"We are excited to welcome Cole Engineering, with its deep engineering and software development capabilities, to the By Light family. We expect that the business will continue to experience significant growth given the combination of its strong footprint in the modeling, simulation, and training market with By Light's comprehensive stable of contract vehicles." Bob Donahue Jr., Founder, and CEO of By Light.
ANB Canada, which provides turnkey Rx, over the counter and Health and Beauty sales and distribution, and Teal Valley, a cannabis company headquartered in Toronto, announced an agreement to merge. Financial terms were not disclosed.
"We are excited to continue our journey of helping our clients grow their brands in the Canadian market. Offering customized packaging, and cannabis and hemp solutions are natural add-ins to our services that position our clients for success. Teal Valley brings an accomplished team that is capable of executing for our clients, and we are confident that together Teal Valley and ANB will help our clients realize their potential." Brent Larkan, CEO of ANB.
SoftBank brings ex-CEO of Sprint to WeWork. (People)
WeWork's biggest shareholder SoftBank has hired ex-Sprint CEO Marcelo Claure to help turn around the company. Masayoshi Son, the head of SoftBank, asked the former chief executive officer of Sprint to take a more hands-on role helping oversee the cleanup of the office-rental company from his position at SoftBank.
WeWork CFO Artie Minson and vice-chairman Sebastian Gunningham, were hired as new interim Co-CEOs of WeWork to help fix the company after its failed IPO. The move saw WeWork co-founder Adam Neumann leaving his role as CEO.
Northleaf raises more than $1bn in capital from investors. (FS)
Northleaf Capital Partners, a leading private equity firm, raises more than $1bn in capital from investors across its global private markets program.
These recent commitments include capital raised for Northleaf’s mid-market infrastructure and private credit programs, as well as significant new commitments to mid-market private equity and secondaries custom mandates managed on behalf of two of Canada’s largest institutional investors.
“Our mid-market global private markets platform continues to create long-term value for our investors. We appreciate the confidence that both existing and new investors have placed in our team, track record, and investment strategies.” Stuart Waugh, Northleaf Managing Partner.
D.E. Shaw explores strategic options for Emerson. (FS)
D.E. Shaw, a leading hedge fund specializing in investments in technology development, is building a stake in Emerson Electric, a US-based industrial conglomerate and is planning to push for changes, including a potential split-up.
Emerson, a diversified manufacturer with $17.4bn in sales last year, provides dozens of industries with thousands of products, from tools and large industrial valves to refrigeration, lighting and climate control systems. Were Emerson to agree to break up, it would be the latest industrial conglomerate to do so under pressure from an activist shareholder, Reuters reported.
ScotiaBank abandons pans to sell Guyana operations.
Bank of Nova Scotia abandons plans of a proposed sale of its operations in Guyana following opposition from the central bank.
Reuters reported, Canada’s third-biggest lender agreed in November to sell the business to Republic Financial Holdings, the Trinidad and Tobago-based parent company of Republic Bank, as part of a plan to exit nine countries in the Caribbean, including Antigua and Grenada.
Commerzbank seeks to play an active role in consolidation.
Commerzbank boss Martin Zielke said on Friday he wanted the German group to play an active role in the consolidation of Europe’s financial sector as he fleshed out details of a new round of cost-cutting at the lender, FT reported.
The chief executive of Germany’s second-largest bank refused to say whether it would be a suitor rather than a target as he underscored his ambition to be a key part of the consolidation process.
“In Germany, consolidation is inevitable. For us, it is important that we put ourselves in the position to be an active player in such a process,” Martin Zielke, Commerzbank CEO.
Wall Street Democratic donors ready to oppose Elizabeth Warren. (FS)
Wall Street Democratic donors, including many private equity firms, warned the party that they would oppose Elizabeth Warren, should she be nominated for a presidential candidate. The warning was a response to Elizabeth Warren's proposal that would make private equity firms responsible for debts and pension obligations of companies they buy.
“You’re in a box because you’re a Democrat and you’re thinking, ‘I want to help the party, but she’s going to hurt me, so I’m going to help President Trump,’” said a senior private equity executive cited by CNBC.
Klar raised $57m in seed financing. (FS)
Klar, a Mexico-based challenger bank working to democratize bank services in Mexico by offering a 100% digital, transparent, free and secure alternative to traditional credit cards and debit services, announced that its raised $57m in a seed financing round led by Quona Capital, a fintech venture firm. The funding will provide capital to help Klar launch its product in Mexico, and reach 100k new users in 2020.
EMEA
AMS, the Austrian sensor maker, raised its bid for Osram, the lighting maker, to $4.9bn including debt, as it seeks to end a multi-month bidding war against private equity rivals.
AMS raised its previous all-cash offer to $44.87 per share, up from its earlier bid of $42.14. The Best and Final Offer will expire on 1 October 2019.
Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco and FTI are advising Bain. Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
The Federal Trade Commission has made a second request for additional information regarding AbbVie’s proposed $63bn purchase of Allergan.
AbbVie and Allergan said they still expect the deal to close in early 2020, and were cooperating with the antitrust regulator. The scrutiny into the deal, which combines two of the world’s biggest pharmaceutical companies, follows a request by a dozen advocacy groups and unions to the FTC to block the purchase, Reuters reported.
JP Morgan, Arthur Cox, Slaughter & May, Wachtell Lipton Rosen & Katz, and Sard Verbinnen are advising Allergan. Morgan Stanley, Kirkland & Ellis, McCann FitzGerald, and Davis Polk & Wardwell are advising AbbVie.
Bloomberg reported Hong Kong Exchanges and Clearing, the Hong Kong stock exchange, is seeking to raise $9.8bn in loans to fund the $39.5bn takeover bid for London Stock Exchange Group.
Recently, HKEX has hired HSBC and UBS to help it steer the acquisition and woo the shareholders of LSEG.
Barclays, RBC Capital Markets, Goldman Sachs, JP Morgan, Morgan Stanley, Robey Warshaw, and Teneo are advising LSEG. UBS, HSBC, Cravath Swaine & Moore, Slaughter & May Moelis & Co, and Headland Consultancy are advising HKEX.
Reuters reported that Sunrise Communications could slash the size of its planned $4.1bn rights issue to finance its purchase of Liberty Global's Swiss UPC business. The Swiss group has been discussing with investors how it could reduce the amount of new equity it would issue to fund the deal, thus breaking down resistance to the transaction by its biggest shareholder, Freenet.
PwC, Deutsche Bank, Morgan Stanley, UBS, Latham & Watkins, Meyerlustenberger Lachenal, Slaughter & May, Deloitte, NautaDutilh, and Lenz & Staehelin are advising Sunrise. Credit Suisse, JP Morgan, Lion Tree Advisors, and Shearman & Sterling are advising Liberty Global.
EQT, a leading private equity firm, through its subsidiary EQT Infrastructure IV fund, acquires Inexio Beteiligungs, a leading provider of fiber-optic internet access from Warburg Pincus, Deutsche Beteiligungs, the founders and several minority investors. Financial terms were not disclosed. The deal is rumored to be valued at $1.1bn.
Inexio is committed to providing FTTH connectivity to 2m rural and suburban German households by 2030. This represents a significant share of the German government’s plan to provide universal Gigabit internet access.
“We are excited to welcome EQT as our new partner for the next chapter of iInexio’s development. Together, we will be able to accelerate Inexio’s growth by bringing modern and reliable fiber-optic infrastructure to two million German households." David Zimmer, Inexio Founder, and CEO.
Clifford Chance advised EQT.
Firmenich, the world's largest privately-owned Perfume and Taste Company, acquired a 17% stake in Robertet, a French fragrance and flavor manufacturer that specializes in natural raw materials, from advisory clients of First Eagle Investment Management for $300m.
"With its strong naturals portfolio in Perfumery, Flavors and Ingredients, Robertet is well-positioned to benefit from consumers' continued demand for authentic natural products. This investment is fully in line with our vision for sustainable and natural solutions." Gilbert Ghostine, CEO, Firmenich.
Rothschild & Co advised Firmenich.
Castik Capital, a European private equity firm, acquired AddSecure, a leading European provider of premium solutions for secure data and critical communications, from Abry Partners. Abry Partners will maintain a minority ownership position. Financial terms were not disclosed.
The acquisition of AddSecure by Castik is a strong validation of AddSecure's clear vision, expansive growth strategy, and the company's development. Over the past three years, the company has tripled in size and is now present in 12 countries.
"We are thrilled that AddSecure will be joining our family of portfolio companies and to have this opportunity to work closely with the company's management team. We are impressed by their journey and look forward to accelerating and promoting AddSecure's on-going success," Michael Phillips, Partner at Castik Capital.
Chris Tofalli advised Abry Partners.
The Dutch government stated it would conditionally allow PostNL, a postal service company, to acquire its rival Sandd. Earlier, the country's market regulators blocked the proposed $145m takeover stating that it would create a market monopoly.
The government said it was overriding that decision because the merger would save costs and ensure delivery in rural areas. It said the merged company would be forced to grant competitors access to its delivery network.
Richemont acquired Italy-based Buccellati, the owner of Buccellati, the renowned Italian jewelry Maison, in a private transaction with Gangtai Group Corporation, a privately held conglomerate, which captures the growth in the consumer, culture, finance, and health industries. Financial terms were not disclosed.
"Distinguished by strong heritage, craftsmanship and family spirit, Buccellati is one of the few Maisons in the dynamic branded jewelry market which is complementary to our existing jewelry Maisons, in terms of style, origins and craftsmanship. Buccellati meets the needs of today's customers who are looking for creative jewelry, with a highly distinctive style. We welcome Andrea Buccellati, his family and his team. With them, we share a culture of constant quest for creativity, innovation, quality and excellence. We look forward to ensuring the long term development of this unique jewelry Maison." Johann Rupert, Chairman of Richemont.
Rothesay Life appeals High Court decision to block £12bn Prudential annuity transfer.
Insurers Rothesay Life and Prudential have launched an appeal against last month’s unexpected High Court decision to block a £12bn ($14.7bn) annuity transfer deal.
The proposed transfer from Prudential to Rothesay would have covered the retirement incomes of about 400k people, but the judge ruled that customers would be better off sticking with Prudential, FT reported.
“The judgment in the High Court contains material errors of law and should therefore be reconsidered,” said Rothesay.
Blackstone built €8bn portfolio of European urban warehousing assets. (FS, Real Estate)
Blackstone amassed an €8bn ($8.7bn) portfolio of warehouses and dark kitchens in Europe and created a separate comapany, Mileway, to hold the properties in a move seen as a precursor to selling or listing it in about two years.“
Mileway is a natural evolution of our European logistics strategy, which is one of our highest conviction, long-term investment themes.” James Seppala, head of Blackstone Real Estate for Europe.
Warsaw Stock Exchange Group to launch a venture capital fund. (FS)
The Management Board of the Warsaw Stock Exchange Group launched a project aimed at the possible establishment of a Corporate Venture Capital fund in conjunction with other financial market institutions.
"We are starting yet another project, aiming to open a CVC fund, an effective tool for investing or collaboration with fintechs which develop technologies for capital market participants. Innovation is the very foundation of our strategic objectives. I am positive that this project will open a new chapter in the development of our company and the exchanges we operate, and that experienced and competent managers who join the project will ensure its success," Marek Dietl, President of the GPW Management Board.
SMBC Nikko Securities lands book-runner spot in Saudi Aramco's IPO.
Saudi Aramco picked SMBC Nikko Securities as a book-runner for its initial public offering, the first Japanese financial firm to grab a role in the deal. The selection of a Japanese financial player comes amid speculation about Tokyo being a possible overseas destination for the Aramco listing.
Teleios urges Aareal Bank to sell its software unit. (FS)
Hedge fund Teleios Capital Management urged Aareal Bank, an international banking company listed on the MDAX index with headquarters in Wiesbaden, Germany, to divest its software arm. The fund believes the unit can not achieve its full potential as part of Aareal.
Cinven is looking to sell $3bn real estate portfolio. (FS, Real Estate)
Cinven is mulling a sale of a $3bn real estate portfolio in Germany. The deal includes offices, stores and apartments in Berlin, Frankfurt, Hamburg and Munich. The assets were initially priced at $2.4bn.
Reuters reported that Unizo Holdings, the Japanese hotel chain operator, withdraws its support for $1.3bn takeover bid by Softbank-backed Fortress Investment Group, saying it wanted better terms, just a month after it welcomed the “white knight” buyout offer.
The company also said it had received a separate offer from an unnamed third party which it had rejected as insufficient. Fortress Investment Group placed a $1.3bn bid on Unizo, thereby overtaking H.I.S' $398m hostile bid.
Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young are advising Unizo.
Suning.com, one of the largest commercial enterprises in China, completed the $681m acquisition of 80% equity stake in Carrefour China.
Suning.com will become the controlling shareholder of Carrefour China. Carrefour Group will retain a 20% stake in the business and two seats out of seven on Carrefour China’s Supervisory Board.
"This is a key step in Suning's smart retail plan. Carrefour's FMCG experience and supply chain capabilities can be integrated with Suning's full-scenario retail model, solid logistics network, and advanced technology." Jindong Zhang, Suning Holdings Group Chairman.
Bloomberg reported that Indian authorities are set to investigate the merger between two Indian lenders Indiabulls and Lakshmi Vilas Bank to examine allegations of fraud and misappropriation.
Delhi High Court on Friday agreed to hear a petition that alleges Indiabulls gave loans worth billions of rupees to shell companies. The Delhi Police's Economic Offences Wing registered a complaint against the board of Lakshmi Vilas Bank alleging cheating and misappropriation. The lenders are awaiting a nod on their merger deal from the country's central bank, which has stepped up scrutiny of the proposal.
AWC raises $1.6bn in an IPO.
The hospitality and property firm of Thai billionaire Charoen Sirivadhanabhakd, Asset World Corp, raised THB48bn ($1.6bn) in Thailand’s biggest listing of an individual company and will invest in its hotel and retail business, Reuters reported.
The company sold all 8bn shares on offer, including an over-allotment option, at THB6 ($0.2) each, in an IPO.
Bank of America Merrill Lynch, Morgan Stanley and UBS are the joint international coordinators for the offering. Domestic underwriters include Kasikorn Securities, Bualuang Securities, Phatra Securities, and Siam Commercial Bank.
Toyota to raise stake in Subaru to 20%.
Toyota Motor will raise its stake in Subaru to 20% from around 17%, the two Japanese automakers said on Friday, as they leverage their scale to better compete in developing new vehicle technologies, Reuters reported.
The investment comes a month after Toyota and another smaller Japanese automaker, Suzuki Motor, said they would take small equity stakes in each other.
White House considers blocking all US investments in China.
CNBC reported that the White House is weighing some curbs on US investments in China. This discussion includes possibly blocking all US financial investments in Chinese companies.
The talks are in the preliminary stages and nothing has been decided. There's also no time frame for their implementation.
Malaysia considers listing Petronas' exploration arm.
Prime Minister Mahathir Mohamad said that Malaysia is considering listing Petronas Carigali, the exploration and production arm of state energy company Petronas. Mr. Mohamad said that the government was looking to sell or list some state assets to reduce debt. There has been speculation this could include selling a portion of Petronas.
"At the moment, we feel that selling Petronas shares is not going to be good for the government," he said. "We may sell off the shares of the subsidiaries because that will not affect Petronas that much. One of them is Carigali but there are also a few others."
Credit Suisse launches China research team, hires CLSA analysts.
Credit Suisse hired about a dozen analysts from Asian brokerage CLSA for its China Quantitative Insight team to produce data-driven thematic research reports as it expands in the world's second-largest economy. The team will be led by David Murphy, who has been with CLSA since 2005.
The team will produce reports in addition to the bank's research coverage of China-listed firms, said Neil Hosie, Credit Suisse Asia Pacific head of equities, adding the reports will serve hedge funds, institutional and private banking clients.
Bain Capital looking to sell Ooedo Onsen Monogatari. (FS)
Bain Capital is collecting bids for Ooedo Onsen Monogatari, an operator of about 40 hot spring inns and resorts across Japan. SoftBank Group is reportedly among investors interested in making an offer for the company.
Bain is looking to sell Ooedo Onsen Monogatari for up to $1bn. The private equity firm is also considering listing the asset instead of selling it.
Mekong Capital looking to raise the fifth fund at $250m by 2020. (FS)
Vietnam's first private equity firm Mekong Capital is reportedly eyeing a hard cap of $250m for its fifth fundraise. Mekong, which specializes in consumer-driven businesses in Vietnam such as retail, restaurants, consumer products, and consumer services, pulled in $112m for the final close of its last flagship vehicle in 2016.
BYD considers IPO of electronic-parts unit.
BYD Co, a Chinese manufacturer of automobiles, battery-powered bicycles, buses, forklifts, rechargeable batteries and trucks, is considering an initial public offering for a unit that makes a power-management device that's produced by just a handful of companies globally. Shares in the division might be offered to investors on China's mainland, though no final decisions on the timing or location have been made.
DT Dream raised $84m in Series B financing round. (FS)
Alibaba-backed Chinese cloud computing and big data services provider DTDT Dream raised $84m in Series B financing round, reaching a $1.5bn valuation. The Series B round was led by Zheshang Venture Capital.
"An era led by big data is coming amid the development and application of internet and intelligent solutions. Big data-enabled decision-making process is efficient, accurate and diversified, and its result can be explained, quantified and iterated," Wu Jingchuan, chairman and CEO of DTDT Dream.
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