AMERICAS
Under pressure from Department of Justice antitrust officials, T-Mobile and Sprint are on track to announce a deal to sell a slew of mobile assets to Dish as soon as next week. T-Mobile and Sprint have been trying to sell the assets, including Sprint subsidiary Boost Mobile, to gain DOJ approval for their $26bn merger agreement.
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.
Cortland Partners, a product-to-people, multi-family real estate investment, development, and management company, acquires Pure Multi-Family REIT, a Canadian-based, publically traded vehicle which offers investors exposure to attractive, institutional quality US multi-family real estate assets, for $1.2bn.
Unitholders are to receive $7.61 per unit in cash, representing a premium of 15% to the closing price per unit on the TSX on June 26, 2019. Completion of the transaction is subject to customary conditions, including approval by unitholders at a special meeting, court approval and regulatory approvals.
"We are thrilled to add Pure Multi-Family's high-quality communities to the Cortland family and further expand our platform in markets that we know very well." Steven DeFrancis, Cortland CEO.
Fort Capital Partners, Scotiabank, Farris, and Koffman Kalef are advising Pure Multi-Family. Lazard, King & Spalding, and McCarthy Tetrault are advising Cortland.
Bloomberg reported that billionaire Carl Icahn formally asked Occidental Petroleum investors to help him replace four of the company’s ten directors and potentially push for a sale. Carl Icahn has been discussing potential corporate governance reforms in the hydrocarbon company with the firm's CEO with regards to the recent $57bn acquisition of Anadarko.
"Buying Anadarko was a high-risk strategy that may not have passed muster with shareholders had they been allowed to vote," Mr. Icahn said. “The board has acted and continues to act with a complete disregard with respect to stockholder demands and good governance.”
Anadarko is advised by Evercore, Goldman Sachs, Vinson & Elkins and Wachtell Lipton Rosen & Katz. Occidental is advised by Bank of America Merrill Lynch, Citigroup and Cravath Swaine & Moore.
Kohlberg & Company acquired EN Engineering, a leading utility services firm, from General Atlantic. Financial terms were not disclosed.
"The EN Engineering team is highly enthusiastic to partner with Kohlberg for our next phase of growth," said Steve Knowles, Chief Executive Officer of EN Engineering. "Kohlberg's track record of success working with utility services companies will provide us with meaningful support as we look to expand our footprint and enhance our ability to meet customers' needs."
Ropes & Gray advised Kohlberg. Houlihan Lokey and Paul Weiss Rifkind Wharton & Garrison advised EN Engineering.
Starr Investment Holdings, a leading private equity firm, acquires Radiology Partners, the largest physician-led and physician-owned radiology practice in the US, serving more than 1,000 hospitals and other healthcare facilities across the nation, for $700m.
“RP is developing new models and technology to positively impact patient care and drive value. We share RP’s vision of a physician-led business and are excited to become a part of what we consider to be a world-class team, helping to support RP in expanding its leadership position.” Geoff Clark, SIH Senior Managing Director.
Barclays and Goodwin Procter are advising Radiology Partners. TripleTree and Kirkland & Ellis are advising Starr.
Wavestone, a Paris-based IT management consultancy, and WGroup, a US-based IT management consultancy, will merge to start a new growth chapter in the US. The transaction takes the form of a 100% acquisition of WGroup by Wavestone.
"The US is a bellwether market in the consulting industry" commented Pascal Imbert, Wavestone's CEO. "We were impressed by WGroup's leadership team and its ability to consistently expand its client base. We are eager to start working with WGroup's team and thrive together seizing new opportunities in the US".
Innovation Advisors, Dentons, and Grant Thornton advised Wavestone. Equiteq Securities and Pepper Hamilton advised WGroup.
Corporativo Coral, a company owned by the Alemán family, agreed to purchase Televisa’s 50% equity participation in Sistemas Radiopolis, which owns and operates 17 radio stations in Mexico, from Grupo Televisa. In consideration for the sale, Televisa will receive MXN1.2bn ($66m). At closing, Televisa will also receive a dividend of approximately MXN200m ($11m).
The sale of Televisa’s equity participation in Radiopolis is part of the Company’s previously announced plans to sell select non-core operations allowing it to focus its resources on its content and distribution assets. The transaction is subject to customary closing conditions.
VMware, a leading provider of cloud computing and virtualization software and services, acquires Bitfusion, a pioneer in virtualization of accelerated computing with a strong focus on GPU technology. Financial terms were not disclosed.
Once closed, the acquisition of Bitfusion will bolster VMware’s strategy of supporting AI- and ML-based workloads by virtualizing hardware accelerators. Multi-vendor hardware accelerators and the ecosystem around them are key components for delivering modern applications. These accelerators can be used regardless of location in the environment – on-premises and/or in the cloud.
"We look forward to welcoming the team from Bitfusion to VMware and working with them to help us deliver a cloud operational model to an emerging part of the data center as well as bridge the gap between the traditional CPU-only infrastructure and infrastructure featuring hardware acceleration technologies." Krish Prasad, VMware General Manager
Point B Fulfillment Solutions, a leading 3PL firm which offers warehouses and fulfillment services, acquires Three North Agency, an agency that builds custom applications to improve sales and marketing performances. Financial terms were not disclosed.
"I could not be more excited about the joining of two great companies. After working with Doug and his Three North team for several years, bringing technology solutions to our clients, it was a natural fit for us to join together." Joe Avery, Point B President.
Private equity firm Ares Management has reportedly agreed to acquire Cooper's Hawk Winery & Restaurants, one of the fastest-growing casual-dining chains in the US, for $700m.
WildFire Energy I received $1bn equity commitments from Warburg Pincus and Kayne Anderson. (FS)
WildFire Energy I, an oil and gas exploitation and production company, signed a line of equity arrangement exceeding $1bn from management, Warburg Pincus, and Kayne Private Energy Income Funds, to acquire and develop substantial producing oil and gas assets in North America.
WildFire is focused on the acquisition and development of oil & gas assets with significant existing production and intends to pursue onshore acquire-and-exploit opportunities throughout the Lower 48.
Petrobras picked Warburg Pincus-backed Trident offer for its oilfield. (FS)
According to Reuters, Petroleo Brasileiro, a Brazilian state-run oil company, has chosen a bid from Warburg Pincus-backed Trident Energy as the winner in a final "re-bid" for two oilfields. The deal will fetch nearly $1bn for Petrobras.
The firm also received another offer in a final re-bid this month but the identity of the second bidder is unknown. In a previous round, Brazilian independent oil firm Ouro Preto Oleo e Gas joined British-based Seacrest Capital and Anglo-French firm Perenco to deliver a bid.
MGM weighs sale and leaseback of top properties.
According to Bloomberg, MGM Resorts International, the largest operator of casinos in Las Vegas, considers the sale and leaseback of iconic properties such as Bellagio and MGM Grand. MGM is open to the sale and leaseback of properties either on their own or together.
The company is reportedly working with an adviser to find potential buyers for the casinos.
AT&T considers selling Puerto Rican unit to reduce debt.
According to Bloomberg, AT&T is exploring options to pay down debt after the $85.4bn ($108.7bn incl. debt) takeover of Time Warner last year. One of the possibilities is reportedly the sale of its Puerto Rican operations, which could fetch about $3bn.
Xiang He Capital with an initial close of the fund at $378m. (FS)
Xiang He Capital, a California-based and China-focused venture capital firm, which invests in TMT sector, made a first close of its second VC fund at $378m, higher than the initial target of $350m.
EMEA
PepsiCo, the leading producer of convenient food and beverages products throughout the world, acquires Pioneer Foods Group, one of the largest South African producers and distributors of a range of branded food and beverage products, for $1.7bn.
This acquisition will help PepsiCo gain a solid beachhead for expansion into Sub-Saharan Africa by boosting the company's manufacturing and go-to-market capabilities, enabling scale and distribution. With Pioneer Foods, PepsiCo adds an extraordinary team of associates who will be instrumental to growth across the continent.
"As we look to accelerate our growth in key markets around the world and achieve our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose, we are absolutely thrilled to join forces with Pioneer Foods, one of South Africa's leading food and beverage companies," Ramon Laguarta, PepsiCo Chairman and CEO.
PSG Capital and Webber Wentzel are advising Pioneer. Centerview Partners, JP Morgan, UBS, and Bowmans are advising PepsiCo.
Barrick Gold Corporation offered to acquire all of the shares it does not already own in Acacia for $428m, implying an enterprise value of $1.2bn. On that basis, the terms of the Share for Share Exchange Ratio represent a premium of 53.5% to the closing price of 151 pence per Acacia Share on 20 May 2019.
Barrick currently owns 63.9% of London-listed Acacia. Barrick Gold Corp's offer to buy the rest of Acacia Mining is fair because the Canadian company is taking on more risk by increasing its exposure to Tanzania, said Barrick's CEO.
JP Morgan, RBC Capital Markets, Lazard, RBC Capital Markets, Shearman & Sterling, and Camarco are advising Acacia. Rothschild & Co and Norton Rose Fulbright are advising Barrick.
Investcorp, through Investcorp Technology Partners, a European lower middle market technology investor, acquired a majority stake in Contentserv, a leading provider of Product Information Management software, for an undisclosed consideration. The acquisition is the sixth deal from its $400m Fourth Technology Fund and the second acquisition of a software company in the DACH region within a year.
Gilbert Kamieniecky, Managing Director and Head of Investcorp's Technology Private Equity business, said; "Contentserv is a company that sits directly in our sweet spot; international, founder-owned and a market leader in a fast-growing segment. We have already made eight add on acquisitions for the five portfolio companies in our latest fund, and we look forward to exploring similar opportunities for Contentserv."
Investcorp Technology Partners was advised by Accenture, Code & Co, Deloitte, Proskauer, McDermott Will & Emery, and Stella EOC. Dentons advised Contentserv.
Cirsa agreed to acquire 50% interest in Sportium Apuestas Deportivas, active in the Spanish retail betting market, from its joint venture partner GVC Holdings, the global sports betting and gaming group, for consideration of €70m ($88m) payable in cash plus repayment of loans and distribution of excess cash. As part of the disposal, GVC will become a B2B supplier to Sportium.
"GVC is one of the leading online gaming operators in Spain with bwin and the disposal of our interest in Sportium enables us to simplify our business in this market. We have enjoyed a good working relationship with Cirsa and are pleased to be able to support them through a new B2B partnership," said Kenneth Alexander, GVC CEO.
Buchanan Communications advised GVC.
IDEX Corp agreed to acquire Velcora Holding and its Roplan and Steridose businesses from FSN Capital Partners for cash consideration of SEK1.3bn ($137m). Roplan is a manufacturer of custom mechanical and shaft seals for a variety of end markets. Steridose develops engineered hygienic mixers and valves for the biopharmaceutical industry.
"In our unique structure, companies retain a great deal of autonomy, while benefitting from the expertise and operating model at IDEX. Roplan and Steridose should flourish as part of our culture, where great teams win together by focusing on the things that matter most, combined with an obsession on solving our customers' most challenging problems," IDEX Chairman and CEO Andy Silvernail said.
Baker McKenzie advised Velcora.
ZÖLLER-KIPPER agreed to acquire 60% stake in the waste truck manufacturer FARID FEG Brivio from the entrepreneur families Orecchia, Mazzini-Martinelli, and Brivio. The founding families will continue to hold stakes in the company, and CEO Marco Orecchia will continue to lead FARID. Financial terms were not disclosed.
Vitale & Co and Giliberti Triscornia advised FARID shareholders.
Ossur, a global leader in non-invasive orthopedics, acquires College Park Industries, a global provider of lower and upper limb prostheses and supporting services. Financial terms were not disclosed.
College Park will largely remain independent and continue to diligently serve its customer base while allowing the combined entity to achieve strategic efficiencies. Össur is committed to growing the College Park brand over the coming years both in the United States and international markets. The transaction will be financed through existing loan facilities and does not affect the existing share buyback program. Closing is expected later in 2019 subject to closing conditions and regulatory review. The acquisition will not have an impact on the financial guidance provided for the full year.
"We are very excited about Össur’s plans to strengthen the College Park brand. We look forward to becoming a part of the Össur organization and benefiting from some of the great innovation Össur is known for. We share the same vision of helping amputees live a life without limitations and ensuring superior service to our customers." Bill Carver, College Park President, and COO.
Lightspeed, a providor of PoS and e-commerce solutions, acquires iKentoo, a high-performance iPad PoS and management solution for all types of restaurants and hospitality businesses. Financial terms were not disclosed.
"We are excited to welcome iKentoo’s entire team and their stellar growth record to the Lightspeed family. We believe their leading POS solution, respected brand name and large customer base of complex SMBs operating in many of our strongest verticals will perfectly complement our product offering and further enhance our growth trajectory." Dax Dasilva, Lightspeed CEO.
IPCO, a leading industrial solutions provider, acquires Extruwork, a manufacturer of extruder lines for powder paint. Financial terms were not disclosed.
The acquisition further strengthens IPCO’s position in the Powder Paint segment. All key individuals are intended to be transferred to IPCO’s Italian operations outside Milan, Italy.
“The acquisition is in line with IPCO’s long-term strategy for profitable growth. Extruwork is a perfect fit in our portfolio given their product range and our cooperation agreement since 2013.″ Henrik Furhoff, IPCO CEO.
Volaris Group acquired MDS Global, a provider of revenue management, business assurance and analytics software to telecommunications service providers. Financial terms were not disclosed.
"We are particularly impressed with how MDS Global's managed services capabilities evolved over years, into being the trusted billing platform for major Tier 1 operators. We look forward to assisting MDS Global in growing their cloud-based as-a-service billing offering, which enables disruptive operators to launch customer configurable services and IoT monetization," said David Nyland, Portfolio Leader and President, Media & Communications vertical at Volaris.
Fortino Capital Partners, a leading investment firm, acquires a majority stake in Odin Groep, a leading ICT service provider specializing in IT solutions, cloud hosting, security, managed services, and consultancy. Financial terms were not disclosed.
"We strongly believe in the added value of Odin Groep as a trusted ICT partner for its clients. We look forward to supporting Hans and his employees with the further growth of Odin Groep, both autonomously, as well as opportunities to work more closely together with other companies.“ Duco Sickinghe, Fortino Managing Partner.
Safran Electrical & Power, a leading manufacturer of aeronautical power and electrical systems, acquires Neelogy, a French start-up that has developed a disruptive technology for electrical current sensors that are tailored to the needs of the more electric aircraft, as well as hybrid and totally electric propulsion. Financial terms were not disclosed.
"We are delighted with this purchase and have high expectations because Neelogy's technology is really unique and will bring real added value to our electrical systems. There has been no breakthrough in the field of current sensors for 20 years, even though they represent a key element in electrical distribution, power management and electrical network monitoring," Alain Sauret, Safran President.
Holland Capital, a leading private equity firm, acquires Valori, a leading software testing and quality assurance company. Financial terms were not disclosed.
"Holland Capital is an extremely valuable partner, who helps us to strengthen our strategic position in the field, to develop our product and service portfolio, and to continue investing in talent and innovation." Ad Vossenaar, Valori CEO.
Mutares-backed Donges Group, a leading construction engineering company, acquires Building Services unit of Ruukki, a supplier of metal-based components to construction and engineering industries. Financial terms were not disclosed.
“Our strategy is to pursue profitable growth in our product businesses Residential Roofing and Building Components. We’re pleased to have found a new owner who is better positioned to develop Building Systems, which is of a project-type of business,” Sami Eronen, Ruukki President.
Argus Media stopped talks with CPPIB about a £500m for 25% stake deal. (FS)
According to Sky, General Atlantic, the US-based private equity firm, terminated exclusive talks to sell a 25% stake in Argus Media, an energy information provider, to Canada Pension Plan Investment Board in a deal that would have valued Argus at about £2bn ($2.5bn). GA currently holds a 50% stake in the company.
General Atlantic is said to be content to retain its existing stake.
Investindustrial to buy another 3% stake in Aston Martin. (FS)
Strategic European Investment Group, the biggest investor in Aston Martin offered to buy another 3% stake in the luxury carmaker. SEIG, which already owns 31% of Aston Martin, is part of the Italian private equity group Investindustrial. Due to its already large holding, the company has to make an offer to all shareholders. It confirmed it is offering to pay £10 ($12.53) per share.
Aston Martin has struggled since it listed in October last year. Its shares, down 21% so far this year, closed Thursday at £9.63 ($11.96), valuing the business at £2.2bn ($2.7bn). The offer, valued at £66m ($82m), indicates the premium of nearly 4% to the closing price on last day before the announcement.
Concerns regarding Aramco IPO worthiness.
According to Bloomberg, internal discussions are going on in some banks, which worked on the Saudi Aramco IPO for more than two years before the oil giant put it on hold. The talks are about whether to advise again as Saudi Arabia restarts preparations for the IPO.
Some executives are reportedly concerned that they spent too much time working and traveling for a small retainer fee, and would prefer to commit themselves to more profitable deals. However, banks are aware that there could be business and political consequences if they don't put themselves forward for a role, and many will probably decide to pitch in the end.
FlixMobility completed Series F round led by TCV and Permira. (FS)
FlixMobility, the parent company of global mobility platforms FlixBus and FlixTrain, completed its €500m ($561m) Series F funding round co-led by TCV and Permira, two of the most significant growth equity firms backing private and public technology companies. Long-time investor HV Holtzbrinck Ventures also participated in the round through a joint co-investment with European Investment Bank.
The newest FlixMobility investors join existing shareholders, including General Atlantic, a leading global growth equity firm, and Silver Lake, a global leader in technology investing.
The equity raised will be used for global expansion as well as the launch of new FlixMobility products. FlixBus is targeting market leadership in the United States and will launch into new global markets in South America and Asia in 2020. For the FlixTrain brand, the investment will help expansions into new EU countries following the liberalization of the European rail market in 2020.
APAC
Anheuser-Busch InBev, a multinational drink and brewing holdings company, agreed to sell Carlton & United Breweries, its Australian subsidiary, to Asahi Group Holdings, a beer and soft drink company based in Tokyo, for $11.3bn.
Carlos Brito, Chief Executive Officer of AB InBev, said, “We continue to see great potential for our business in APAC and the region remains a growth engine within our company. With our unparalleled portfolio of brands, strong commercial plans, and talented people, we are uniquely positioned to capture opportunities for growth across the APAC region.”
Nomura, Rothschild & Co, and Allen & Overy are advising Asahi. Lazard and Freshfields Bruckhaus Deringer are advising Anheuser-Busch.
Oyo's founder to triple his stake for $2bn. (FS)
Ritesh Agarwal, Oyo Hotels and Homes 25-year-old founder, is going to invest $2bn to triple his stake in the lodgings startup, which is backed by SoftBank among others. Agarwal will buy shares from existing investors Lightspeed Venture Partners and Sequoia India, which will remain backers of the startup.
The deal will value Oyo at about $10bn and raise Agarwal's share of the company from about 10% to 30%. The entrepreneur won support from banks and other financial partners for his deal.
Vodafone Idea wants to sell $1.9bn fiber assets.
According to DealStreetAsia, Vodafone Idea, India's largest mobile carrier by users, plans to strengthen its finances and hired Bank of America and Morgan Stanley to help sell its fiber assets. The bankers will initiate discussions with potential buyers for the assets, which could be valued at INR130bn ($1.9bn).
A final decision has yet to be made on the valuation and the stake to be sold, and the company could bring in more banks for the process. A deal, if successful, would help the phone-service provider add to the funds, it's been raising to pare debt and fend off rivals like Bharti Airtel and Reliance Jio Infocomm, a billionaire Mukesh Ambani's company.
SocGen in exclusive discussion for the acquisition of Socalfi.
Societe Generale and My Money Bank entered exclusive discussion for the acquisition by Societe Generale of the shares of Socalfi, a fully-owned subsidiary of My Money Bank in New Caledonia.
This acquisition project would allow Société Générale Calédonienne de Banque, a New Caledonian unit of SocGen, to strengthen its local positions in the markets of consumer credit and equipment finance, which benefit from profitable growth potential.
Prime US REIT raised $612m in the downsized offering.
Prime US REIT, the third US-focused REIT launched on the Singapore Exchange Mainboard in 2019, raised $612m in a downsized total offering size (previously $705m) comprising 335.2m units offered to both the public and placement. The stock made its listing debut at $0.87, down from its initial offering price of $0.88 per unit, and closed flat at $0.88.
There were 360.3m units, as part of the offering, offered to cornerstone investors including Keppel Capital, Singapore Press Holdings, Hiap Hoe Investments, and AT Investments, which is linked to India-born Singaporean billionaire Arvind Tiku.
SoftBank Ventures Asia raised $270m. (FS)
SoftBank's Seoul-based venture capital unit raised a KRW317bn ($270m) fund. SoftBank Ventures Asia's new fund will invest in early-stage startups globally with a focus on Asia. The new fund aims to close in the next six months, and its investors include South Korea's National Pension Service.
KnowBox raised $150m in Series D led by Alibaba. (FS)
China's online education startup KnowBox, which offers two primary learning services: private teaching and family counseling, completed its $150m Series D funding round led by internet giant Alibaba. The startup will also makeover its identity by changing its name to SmallBox Technology. SmallBox will use the proceeds to scale up its AI-based learning content, to offer new courses and services, and to enhance user experience.
Aside from Alibaba, Yunfeng Fund, C Capital, and Betasman Asia Investment Fund also participated in the funding round. The Series D round brings the company's total funding to date to over $290m.
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