Non-Standard Finance expressed confidence in its £1.3bn ($1.7bn) offer for Provident Financial Group, a British sub-prime lender, and extended the offer’s acceptance period. The deal was announced in February 2019. NSF offered to acquire the company for 8.88 new NSF shares for each Provident share, representing a 24% discount to current the Provident stock price. Provident rejected the offer, claiming that it undervalued the firm.
“As we approach the final stages of this process, now feels like the right moment to remind those of you who have not already accepted our offer why I and the NSF Board believe strongly that you should do so,” NSF CEO John van Kuffeler said in a statement.
Barclays, JP Morgan, Jefferies and Brunswick Group are advising Provident. Deutsche Bank, Shore Capital, Ondra Partners, Slaughter & May and Maitland are advising NSF.
A consortium led by investment company Macquarie Group acquired the remaining 50% of Innogy Grid, the Czech energy distribution system operator, from RWE, a German electric utilities company, for €1.8bn ($2bn). Completion is subject to merger control proceedings and the transfer of RWE’s stake in Innogy to E.ON.
The Macquarie consortium already owned 50% of Innogy Grid and was exercising an option to buy the portion it did not already own.
Alpha Group, a private equity firm, agreed to acquire Italy-based Laminam, a specialist in large-sized ceramic slabs used in architecture, from System in a €250m ($278m) management buyout transaction.
Edoardo Lanzavecchia, Managing Partner of Alpha, said: "We are extremely pleased with the acquisition of Laminam, the undisputed leader in the production of large-size ceramic slabs with a brand recognized by architects and interior designers all around the world. Alpha will work alongside Alberto Selmi and the entire management team to further boost the company's international development. Laminam will continue to leverage the technological advantage and innovative content of its ceramic slabs that Franco Stefani and Alberto Selmi, together with the management team, have created."
Studio Legale Penco is advising Laminam. Deloitte, BCG, Banca Akros, Fineurop Soditic, Gattai Minoli Agostinelli Partners and Studio Pedersoli e Associati are advising Alpha Group. Pricewaterhousecoopers, Studio Pincelli & Associati Dottori Commericialisti and Mediobanca are advising System. Banca BPM is providing debt financing and is being advised by Essentia Advisory.
EMV Capital, a London-based early-stage venture investor focused on B2B companies in the industrial high-tech, energy, circular economy, smart cities, and transportation sectors, acquired a majority stake in Vortex Biosciences, a biotechnology company in Pleasanton, California. Financial terms were not disclosed.
“We will apply this new funding to achieve an expanded menu of downstream integration. Our vision at Vortex is to improve cancer detection and therapy by providing the best CTC sample workflow from a standard tube of blood." Robert Englert, Vortex CEO.
SEEK Group, an online employment marketplace services provider, invested £50m ($64m) to become a joint, 50% owner of The Open University’s FutureLearn social learning platform. The Open University launched FutureLearn, which is based in London, in December 2012 with a dozen UK university partners to test opportunities offered by digital learning and massive open online courses.
The Open University’s Vice Chancellor Mary Kellett said: “Our new partnership is a fantastic opportunity to change more lives around the globe through flexible lifelong learning. The Open University is rightly known for pioneering new approaches to education and for our academic excellence. Today’s announcement shows this is as true today as when we started fifty years ago. It represents one of the most exciting educational prospects in modern times."
Tate & Lyle looking to expand through acquisitions.
Tate & Lyle, a food processing company specializing in reducing sugar and fat content in food products, is looking to expand its business through strategic acquisitions. Chief executive Nick Hampton said the group would consider deals to bulk up in emerging markets such as Asia, as well as to supplement its product portfolio in its priority categories of beverages, dairy, soups and sauces. The company is looking to accelerate its growth, which has been recently fueled by rising global obesity rates and consumer desire for more natural foods.
EDP sold a renewables assets portfolio to institutional investors for €800m.
Energias de Portugal, a Portuguese energy distributor, agreed to sell its full 51% equity shareholding and outstanding shareholder loans in an operating onshore wind portfolio with 997 MW of installed capacity for €800m ($891m). The transaction scope covers 388 MW in operation in France, 348 MW in operation in Spain, 191 MW in operation in Portugal. The deal was announced on April 23.
This asset rotation deal is part of the asset rotation program for 2019-22 period contemplated in the strategic update announced by EDP on March 12, 2019. The sale of majority stakes in projects in operation or under development, while continuing to provide operating and maintenance services, allows EDP to accelerate value creation and book up-front profits while recycling capital to reinvest in accretive growth.
The buyers were advised by JP Morgan.
Allianz looking to buy L&G unit for £400m.
Allianz, Germany's biggest insurer, is in advanced talks to buy Legal & General's home insurance business. The bid price is estimated to be approximately £400m ($517m). Rumors emerged in December that Direct Line, an insurance company based in the United Kingdom, is also interested in bidding for the unit.
Sorgenia's interest expressions to be submitted by May 6.
Sorgenia, an Italian energy company owned by a group of Italian banks, including top lenders UniCredit, Intesa Sanpaolo, and Banco BPM, which took over after a debt restructuring, and formerly controlled by De Benedetti family has set up the deadline for its submission of expressions of interests by May 6, 2019.
According to
Reuters, the banks stated that they were ready to sell their stakes, but not at any price.
Deutsche Bank not interested in a strategic overhaul.
Financial Times reported that Deutsche Bank is not looking at a strategic overhaul of its investment banking business. Paul Achleitner, Deutsche’s Chairman, said that Deutsche Bank’s investment bank does not need a fundamental strategic overhaul in the wake of the collapse of merger talks with rival Commerzbank and defended the current turnaround efforts at the investment bank, which has been lossmaking for two consecutive quarters.
“Every executive has to constantly adjust to a changing market environment . . . But in this regard, we are not talking about strategy, we are talking about execution,” Paul Achleitner said. “In particular in a business like the capital markets one, which is so volatile and so rapidly changing, there will be permanent adjustments.”
Deutsche Borse Chairman stepped down under shareholder pressure.
Joachim Faber, Chairman of Deutsche Borse, a marketplace organizer for the trading of shares and other securities in Germany, is to step down from his position following pressure from shareholders over his handling of an insider trading case against the exchange. Mr. Faber will leave the company in May 2020. He became the target of shareholders' discontent after the failed merger between the London Stock Exchange and Deutsche Borse in 2017.
Deutsche Borse said it would update the market about his successor in due course.
OTP considers acquisitions in the Balkans.
OTP, a Hungarian banking group, is considering expanding its operations in the Balkans through strategic acquisitions. The Budapest-based lender could look at two targets in Croatia, where last year it acquired Splitska Banka and became the fourth-biggest bank. OTP currently controls 10% of the Croatian market. The group is rumored to be in talks to buy Slovenian lender SKB, which would mark its entry into the west Balkans nation.
Mubadala launches a $1b investment fund for UAE. (FS)
Mubadala Investment Company, a state-owned UAE investment enterprise, announced the release of a new $1b fund, Abu Dhabi Catalyst Partners, to explore opportunities within the United Arab Emirates and abroad. The new fund would be based in the Abu Dhabi Global Market, the financial free zone, home to banks, investment funds, asset managers and tech companies in Abu Dhabi. Abu Dhabi Catalyst Partners will use the networks of Mubadala to originate investments in the region.
“The new fund will target opportunities across asset management, specialty finance, and financial infrastructure, with investees expected to have a presence in ADGM,” stated Mubadala.
Luxcara invested in Onusberget onshore wind project. (FS)
Luxcara, an independent asset manager, increased its Scandinavian portfolio with the acquisition of Onusberget, one of Europe’s largest single onshore wind projects with an expected total capacity of 750 MW. Project Onusberget has been developed by Svevind, a wind turbine builder in Sweden. Financial terms were not disclosed.
“We are thrilled to invest in one of Europe’s most attractive locations for wind power and contribute to Sweden’s ambitious goal to become carbon neutral by 2045. The project combines great natural resources with our expertise to structure long-term power purchase agreements in the world’s largest power market,” said Alexandra von Bernstorff, Managing Partner of Luxcara.
CMS and DLA Piper advised Luxcara. Cirio, Hogan Lovells, 4initia and Fieldstone advised Svevind.
Anadarko Petroleum Corporation, a company engaged in hydrocarbon exploration, entered deal talks with Occidental regarding a $57bn sale of the company soon after it agreed to sell itself to Chevron Corp for $50bn. Chevron Corporation, an American multinational energy corporation, offered to acquire Anadarko, for $65 per share on April 12, 2019. Chevron's offer was outmatched with a $76 per share bid by Occidental, made on April 24, 2019. Occidental’s proposal represents a premium of approximately 20% to the value of Anadarko’s stock price as of April 23, 2019.
Anadarko’s board of directors decided that Occidental’s cash-and-stock bid could lead to a deal that would be superior to the one it has with Chevron. Without such a formal determination, Anadarko’s contract with Chevron prevented it from engaging with Occidental. Anadarko will now kick off negotiations with Occidental to see if it can finalize a deal.
This news was soon followed by reports that the US Securities and Exchange Commission obtained an asset freeze in connection with suspected fraudulent trading in Anadarko Petroleum Corp before the oil company agreed to be acquired by Chevron.
Evercore, Goldman Sachs, Vinson & Elkins, and Wachtell Lipton Rosen & Katz are advising Anadarko. Credit Suisse and Paul Weiss Rifkind Wharton & Garrison are advising Chevron. Bank of America Merrill Lynch, Citigroup, and Cravath Swaine & Moore are advising Occidental.
Makan Delrahim, the head of the US Justice Department’s Antitrust Division, said that there had been no decision made on whether to approve the merger of Sprint and T-Mobile, two of the largest wireless carriers in the US, and that meetings on the matter continued. The $59bn deal was announced in April 2018.
“I have not made up my mind,” he said in an interview. “The investigation continues. We’ve requested some data from the companies that will be forthcoming. We don’t have a set number of meetings or a time line.”
Sprint Corp and T-Mobile decided to postpone the completion deadline to July 29 due to the lack of decision from antitrust regulators.
Sprint is advised by Centerview Partners, JP Morgan, Mizuho Securities, SMBC Nikko, The Raine Group, Goodwin Procter, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. Deutsche Telekom is advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, DLA Piper, Hogan Lovells, Latham & Watkins, Richards Layton and Finger, and Wachtell Lipton Rosen & Katz. Softbank is advised by Morrison & Foerster.
Parker Hannifin Corporation, the global leader in motion and control technologies, offered to acquire LORD Corporation, a privately-held company founded in 1924 offering a broad array of advanced adhesives, coatings and specialty materials as well as vibration and motion control technologies, for $3.6bn.
“This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses, such as engineered materials, that accelerate us towards top-quartile financial performance,” said Tom Williams, Chairman and Chief Executive Officer of Parker. “LORD will significantly expand our materials science capabilities with complementary products, better positioning us to serve customers in growth industries and capitalize on emerging trends such as electrification and light weighting.
Morgan Stanley and Jones Day are advising LORD Corp. Barclays and Cravath Swaine & Moore are advising Parker Hannifin.
Kroger, an American retailing company, closed the sale of its Turkey Hill business, an American brand of iced tea, ice cream and other beverages and frozen desserts, to private equity firm Peak Rock Capital. The deal was announced in March 2019. Financial terms were not disclosed.
Robert Pistilli, Managing Director of Peak Rock Capital, said: "Turkey Hill represents an exciting opportunity to invest in a premier brand with an established reputation for quality, flavor variety, and authenticity, within the large and growing ice cream and refrigerated drinks space. We are impressed with the accomplishments of the business under the stewardship of Kroger and look forward to completing a seamless transition of the business to a standalone entity and partnering with Turkey Hill's management team to drive significant growth through continued product innovation."
Kroger was advised by Goldman Sachs and Kirkland & Ellis.
Private equity firm One Equity Partners sold Anvil International, a pipe fittings, pipe hangers, and piping support systems provider, to Smith-Cooper International, a designer, producer, importer and value-added distributor of high-quality pipe, valves and fittings. Financial terms were not disclosed.
“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.”
JP Morgan, BlackArch Partners and Dechert are advising Anvil. Barclays and Davis Polk are advising SCI.
Private equity firm BV Investment Partners invested Franco Signor, a provider of Medicare Secondary Payer compliance solutions to the country's largest self-insured companies, insurers, and third-party administrators. Financial terms were not disclosed.
Vikrant Raina, Managing Partner of BV Investment Partners, said: "We recognize the importance of MSP compliance within healthcare cost containment efforts and, furthermore, recognize Franco Signor as a true leader in this space, helping its customers navigate ever-evolving and complex rules and regulations. John and his team are true domain experts and we are proud to be partnered with them for this next phase of growth."
JMS Securities and Seyfarth Shaw advised Franco Signor. Ropes & Gray advised BV Investment Partners.
TCV, a capital markets firm, invested in US-based Rave Mobile Safety, the leading provider of critical communication and data platform solutions. Financial terms were not disclosed.
"Today's safety leaders are utilizing innovative technology to prepare better, respond faster, and communicate more effectively," said Bob Burke, Venture Partner at TCV. "We are delighted to partner with an experienced executive management team and help shape the company's expansion following on Rave's ten years of consecutive double-digit growth."
Shea & Co advised TCV. Raymond James advised Rave Mobile Safety.
Genstar Capital-backed Telestream, a leading provider of digital media tools and workflow solutions, acquired and merged with Tektronix Video, a global leader in video test, monitoring and quality assurance solutions. Financial terms were not disclosed.
"Our investment thesis will continue to view Telestream as a growth-oriented platform company for consolidation of innovative software companies in the video technology ecosystem," commented Eli Weiss, Managing Director at Genstar Capital.
LLR, a middle market private equity firm, invested in Magaya Corporation, a software developer that automates and improves business operations including leaders in the fields of logistics, warehousing, wholesaling and nearly every aspect of the supply chain, Financial terms were not disclosed.
“We were committed to finding a partner who understood our market and end customer, and could help us grow,” said Jose Yoniel Garcia, Jesus David Rodriguez and Gabriel T. Ruz, the three Co-CEOs of Magaya. “LLR’s track record of scaling software businesses similar to us in size, coupled with their experience working directly with business operations solutions for distributors, made the team the clear partner of choice for Magaya.”
KKR-backed Gardner Denver closing in on a $15bn merger deal with Ingersoll-Rand. (FS)
KKR-backed Gardner Denver, an American worldwide provider of industrial equipment, technologies and related parts, is nearing a $15bn merger deal with a division of Ingersoll-Rand, an Irish–American global diversified industrial manufacturing company.
The deal could be announced as early as this week and would involve a mixture of cash and stock for Ingersoll shareholders. Gardner Denver Chief Executive Vicente Reynal would lead the merged company.
Duke Energy sold a minority stake in renewables portfolio to John Hancock for $1.2bn.
Duke Energy, an electric power holding company in the United States, agreed to sell a minority stake in a portion of its commercial renewable energy portfolio owned and operated by its affiliate, Duke Energy Renewables, to the John Hancock Infrastructure Fund and John Hancock Life Insurance Company, a division of Manulife Financial Corporation. The total enterprise value of this portion of Duke Energy’s commercial renewable energy portfolio is approximately $1.2bn. The deal was announced on April 24.
“We look forward to working alongside John Hancock as we continue providing clean and affordable energy to our customers across the country,” said Rob Caldwell, president of Duke Energy Renewables. “We will continue to develop projects, grow our portfolio and maintain overall operational responsibilities for the projects just as we do today. John Hancock’s investment offers clear validation of the strength of our existing portfolio, and this partnership provides an opportunity for ongoing collaboration and investment as we deliver long-term value to our customers and investors.”
Morgan Stanley and Hunton Andrews Kurth advised Duke Energy. Mayer Brown and Day Pitney advised John Hancock.
GoldenTree Asset Management raised $1.7bn for its third distressed fund. (FS)
GoldenTree Asset Management, an American alternative asset management company, raised $1.7bn for its third distressed private equity fund. The fund employs a private equity drawdown structure and will focus on primarily global distressed opportunities in mid-cap and large-cap corporates.
"We are grateful to our investors for their continued support and are pleased to be invested alongside them once again in our third distressed fund," said Steve Tananbaum, Managing Partner and Chief Investment Officer. "GoldenTree has invested in distressed assets for close to two decades and across multiple market cycles. We believe our experience, platform breadth and disciplined process positions us well to deliver attractive results."
