Thomas H. Lee Partners, an American private equity firm, agreed to merge MHS, a global provider of material handling automation technology and systems integration, and Fortna, a software and solutions provider for warehouse and distribution. THL will remain the majority owner of the combined company and Abu Dhabi Investment Authority will acquire a significant minority stake. Financial terms were not disclosed.
“Fortna has been a trusted advisor driving competitive advantage for our clients as they build direct-to-consumer models, increase service levels, and enable a lower cost to serve. The combination with MHS will enable the model to scale with our clients globally and allow the combined company to drive further innovation in operating models, software, and automation," Rob McKeel, Fortna CEO.
MHS is advised by Morgan Stanley, RBC Capital Markets and Kirkland & Ellis. Debt financing is provided by JP Morgan. Fortna is advised by Robert W Baird and Kirkland & Ellis. THL is advised by Edelman. ADIA is advised by JP Morgan and Gibson Dunn & Crutcher.
Blackstone Real Estate Income Trust, a perpetual-life, institutional quality real estate investment platform, agreed to acquire American Campus Communities, a real estate investment trust, for $12.8bn.
“Through our IPO, eighteen years ago, we began our pioneering quest to transform the student housing sector into a mainstream, institutional asset class within the commercial real estate sector. We have certainly accomplished that mission and are proud and excited to have our best-in-class company join Blackstone, the world’s largest alternative asset manager. This announcement represents the culmination of the passion and dedicated service of the ACC team to our student residents and university partners, while creating significant value for our shareholders," Bill Bayless, American Campus Communities Co-Founder & CEO.
Blackstone is advised by JP Morgan, TSB Capital, Wells Fargo Securities and Simpson Thacher & Bartlett. American Campus Communities is advised by Bank of America, KeyBanc Capital Markets, Dentons and Joele Frank.
Alleghany, a private equity firm, announced the end of the "go-shop" period under the previously announced $11.6bn merger agreement with Berkshire Hathaway, an American multinational conglomerate holding company.
During the go-shop period, Alleghany and its financial advisor solicited alternative acquisition proposals from 31 potentially interested third parties. Despite these efforts, Alleghany did not receive any alternative acquisition proposals. The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions, including approval by Alleghany stockholders and receipt of regulatory approvals.
Alleghany is advised by Goldman Sachs, Willkie Farr & Gallagher, MacKenzie Partners and Sard Verbinnen & Co. Goldman Sachs is advised by Skadden Arps Slate Meagher & Flom. Berkshire Hathaway is advised by Munger Tolles & Olson.
DigitalBridge, a holding company, agreed to acquire a 31.5% stake in the investment management subsidiary of DigitalBridge from Wafra, a privately owned investment company, for $925m.
“This accretive transaction will drive an immediate and substantial increase in earnings to DigitalBridge shareholders, raising their exposure to our high-growth, high-return investment management platform just as we are poised to continue scaling our full-stack strategy. It also further demonstrates our commitment to deploying balance sheet capital to its 'highest and best’ use, which in this case is more of our own fast-growing digital investment management platform," Marc Ganzi, DigitalBridge CEO.
DigitalBridge is advised by Barclays, Sullivan & Cromwell and Joele Frank. Wafra is advised by Ardea Partners, Fried Frank Harris Shriver & Jacobson and Edelman.
Coeptis Therapeutics, a pharmaceutical company focused on the development of innovative therapeutics and technologies, agreed to go public via a SPAC merger with Bull Horn in a $175m deal.
"Today's announcement is a key milestone for Coeptis as it gains access to the capital needed to advance our product portfolio highlighted by CD38-GEAR-NK and CD38-Diagnostic. The combination of CD38-GEAR-NK and CD38-Diagnostic has the potential to provide a more targeted administration of anti-CD38 mAbs in the treatment of cancers, including multiple myeloma, chronic lymphocytic leukemia, and acute myeloid leukemia," David Mehalick, Coeptis Therapeutics President and CEO.
Coeptis is advised by Bridgeway Capital Partners, Meister Seelig & Fein and Tiberend Strategic Advisors. Bull Horn is advised by Jones Trading, Ellenoff Grossman & Schole and Edelman.
TTM Technologies, a firm that manufactures printed circuit boards, agreed to acquire Telephonics, a provider of highly sophisticated intelligence, surveillance and communications solutions, from Griffon, a diversified management and holding company, for $330m.
“I am excited for Telephonics to join TTM as we continue on our journey to move up the value chain and provide more engineered products to our offering for our customers. We expect that the complementary portfolio and skills will enhance TTM’s strategic capabilities and growth opportunities enabling us to deliver significant benefits to our Aerospace and Defense customers. We also expect the transaction to be immediately accretive to our non-GAAP EPS," Tom Edman, TTM CEO.
TTM is advised by JP Morgan and O'Melveny & Myers. Griffon is advised by Lazard, Dechert and ICR.
Apollo Global Management, a global buyout firm, is considering participating in a bid for Twitter, after Elon Musk’s $43bn bid put the social-media company in play,
WSJ reported.
Apollo has held discussions about backing a possible deal for Twitter and could provide Mr. Musk or another bidder like private-equity firm Thoma Bravo with equity or debt to support an offer. Apollo has also been evaluating potential cooperation between the online-media company and Twitter.
Twitter is advised by Goldman Sachs and JP Morgan. Elon Musk is advised by Morgan Stanley and McDermott Will & Emery.
Arcline Investment, a growth-oriented private equity firm, agreed to acquire Omega Engineering, a manufacturer of industrial measurement equipment, from Spectris, a supplier of measuring instruments for research and industrial applications, for $525m.
"I am confident this is an excellent move for Omega. Dwyer has a strong position in most of our key markets through its highly complementary portfolio of sensing, monitoring, and control products and solutions. Having spent time with key members of the Dwyer and Arcline leadership teams during the transaction process, I believe that we share similar cultures and values and that the acquisition represents a great opportunity for all stakeholders," Amit Agarwal, Omega President.
Spectris is advised by Jefferies & Company and Tulchan Communications. Arcline Investment is advised by EC M&A and Joele Frank.
Regeneron, a biopharmaceutical company, agreed to acquire Checkmate Pharmaceuticals, a clinical-stage biotechnology company, for $250m.
"As we continue to advance and expand our research efforts in immuno-oncology, the acquisition of Checkmate will add a promising new modality to Regeneron's toolkit of potential approaches for difficult-to-treat cancers. The unique combination of a differentiated Toll-like receptor 9 with other antibody-based oncology agents may result in increased clinical benefit and provide new treatment options for patients in need. We look forward to welcoming the Checkmate team and their complementary scientific acumen to the Regeneron family," Leonard S. Schleifer, Regeneron President and CEO.
Regeneron is advised by Wachtell Lipton Rosen & Katz. Checkmate is advised by Centerview Partners, Goodwin Procter and MacDougall.
Fulgent Genetics, a technology company that focuses on genetic testing to provide physicians with clinically actionable diagnostic information, agreed to acquire Inform Diagnostics, a provider of anatomic pathology services, from Avista Capital, a private equity firm, for $170m.
“We have been impressed with the Inform Diagnostics team’s commitment to quality, turnaround time, and customer service, which we believe fits well with our priorities, culture, and focus at Fulgent. We expect to see an immediate contribution from Inform Diagnostics’ mature pathology business, while in the longer term we also believe there are numerous synergies across our organizations that will drive sustained momentum across Fulgent’s core testing business. We are excited about this opportunity to drive long-term shareholder value with this strategic acquisition," Ming Hsieh, Fulgent Chairman and CEO.
Fulgent Genetics is advised by Piper Sandler, Mintz Levin and Blueshirt Group. Inform Diagnostics is advised by Kirkland & Ellis.
Eagle Merchant Partners, a private equity firm, completed the investment in Enviro-Master Services, a provider of restroom hygiene products and services. Financial terms were not disclosed.
"The health and safety industry has grown exceptionally over the past several years and Covid-19 has accelerated that growth. This partnership will enable Enviro-Master Services to scale up to meet this demand. We are thrilled to be working with the team," Zack Taylor, Eagle Merchant Partner.
Eagle Merchant was advised by King & Spalding and PR South. Enviro-Master Services was advised by Croft & Bender and DLA Piper.
AE Industrial Partners-backed Alpine Air Express, a provider of air cargo transportation services, completed the acquisition of Suburban Air Freight, a provider of aviation transportation and maintenance services. Financial terms were not disclosed.
"Suburban is a leading regional air cargo carrier with a reputation for quality service and safety. The addition of Suburban and its talented team significantly expands our Company and its market position, enabling us to better serve our new and existing customers," Michael Dancy, Alpine Air CEO.
Alpine Air Express was advised by BDO, Akerman and Lambert & Co. Suburban was advised by Lewis Brisbois Bisgaard & Smith.
American Industrial Acquisition, a private equity firm, agreed to acquire MB Aerospace Sterling Heights, a provider of high-value cast components for aerospace and industrial markets. The Sterling Heights business will trade as Vital Engineered Components Company (VECCO). Financial terms were not disclosed.
“In AIAC, we have secured a superb partner to drive the rebranded VECCO business forward, enabling MB Aerospace to concentrate significant investment across our global Centers of Excellence network for the repair and manufacture of aero-engine precision parts," Craig Gallagher, MB Aerospace CEO.
MB Aerospace is advised by Houlihan Lokey, Simpson Thacher & Bartlett and BIG Partnership.
A consortium of investors led a $300m Series C funding round in Tessera Therapeutics, a biotechnology company, with participation from Abu Dhabi Investment Authority, Alaska Permanent Fund, Altitude Life Science Ventures, ARTIS Ventures, Cormorant Asset Management, Flagship Pioneering, Hanwha Impact Partners, Longevity Vision Fund, March Capital, SALT Fund, SoftBank Vision Fund 2 and T. Rowe Price.
“We are thankful for the support from our new partners and existing investors alike in this latest funding round. It is our belief that genetic medicine will be the most important next epoch in medicine—offering the ability to cure genetic diseases and to someday even prevent disease from occurring. Today’s announcement will help us realize the promise of GENE WRITING technology and our mission of curing disease by writing in the code of life," Geoffrey von Maltzahn, Tessera Therapeutics Co-Founder, CEO and Board Director.
Tessera Therapeutics was advised by Salutem.
American Securities considers selling Milk Specialties. (FS)
American Securities, a New York-based private equity firm, is considering a sale of Milk Specialties Global that could value the ingredients company at more than $1.5bn,
Bloomberg reported.
The buyout firm is working with advisers to run an auction process for the Eden Prairie, Minnesota-based company. Milk Specialties is expected to attract interest from chemical firms and other private equity firms.
Riwi looks for M&A to expand risk data.
Riwi, a survey technology firm whose client list includes Bank of America, plans to push ahead with acquisitions to capitalize on demand for data about economic and geopolitical uncertainties.
The Toronto-based microcap plans to decide on its financing strategy during the second or third quarter of the year, CEO Greg Wong said. The company is currently is in talks with private lenders and bankers about financing alternatives.
Zendesk is working with Qatalyst on potential sale.
Zendesk, a software company that became a takeover target during a failed purchase of SurveyMonkey’s parent, is exploring a potential sale,
Bloomberg reported.
The San Francisco-based company has brought on a new adviser, Qatalyst Partners, and has reached out to potential buyers including software companies and private equity firms. A final decision hasn’t been made and Zendesk could opt to remain independent.
SoftBank-backed Sandbox said to seek funds at $4bn value. (FS)
The Sandbox, a platform that allows users to trade and monetize virtual assets in the Ethereum blockchain, is considering raising fresh funds at a valuation of more than $4bn,
Bloomberg reported.
The company is looking to raise about $400m from both new and existing investors. Sandbox, which is majority-owned by blockchain gaming developer Animoca Brands, is in talks with potential investors for the funding round.
Excelerate Energy announces closing of IPO.
Excelerate Energy announced the closing of its initial public offering of 18m shares of its Class A common stock at a price to the public of $24 per share. Excelerate received net proceeds of approximately $416m, after deducting underwriting discounts and commissions.
Excelerate Energy was advised by Barclays, JP Morgan, Morgan Stanley, Wells Fargo, SMBC Nikko, Raymond James, Stephens, Tudor Pickering Holt and BOK Financial.
Coatue’s growth fund surpasses $6.5bn. (FS)
Multistrategy investor Coatue Management has amassed at least $6.5bn so far for its fifth growth-investment strategy and possibly more from a feeder fund.
The New York firm, which also operates hedge funds and venture-capital vehicles, said its Coatue Growth Fund V had collected capital from 692 investors. It also reported a $3.2bn gross value for its Coatue Growth V Offshore Feeder Fund.
NY State Pension commits over $2bn for private equity. (FS)
The $280bn New York Common Retirement Fund committed a little more than $2bn in investments toward the pension’s credit, private equity, real estate, absolute return, and real asset portfolios.
The funds managed by Ares SSG Capital Management, are closed-end funds that invest mainly in special situations and credit investments in the Asia-Pacific region. And through the Ellington Empire Fund, Ellington Management Group will invest in various residential mortgage, commercial mortgage, and consumer loan assets, including loans, pools, and securities.
Mainsail Partners raises $915m Fund VI. (FS)
Mainsail Partners, a growth equity firm that seeks to invest in rapidly growing, bootstrapped software companies, announced it has raised $915m in limited partner capital commitments for its sixth fund, the largest in the firm’s 19-year history. The new fund, Mainsail Partners VI, was oversubscribed and closed in less than three months, bringing the total capital commitments raised by the firm to more than $2.2bn.
“We are grateful for the support of our existing investors and excited to welcome new investors into the Mainsail family. Last year was the most active in Mainsail’s history in terms of the number of new investments and portfolio companies that were acquired or went public. We believe this momentum is validation of our approach to partnering with bootstrapped founders and providing hands-on operational support to help their companies scale fast and efficiently," Gavin Turner, Mainsail Partners Managing Partner and Co-Founder.
