AMERICAS
Private equity firm Apollo Global Management raised its bid to take Tech Data private in a deal valued at about $6bn, Reuters reported. Tech Data shareholders will now receive $145 per share in cash, up from $130 per share, representing a premium of 12.4% to the stock’s closing price on November 27. Tech Data said it would solicit alternative acquisition proposals from third parties during a “go-shop” period until December 9 as part of the deal agreement.
Apollo Global Management is advised by Barclays, RBC Capital Markets, Citigroup, JP Morgan, Wells Fargo Securities, Paul Weiss Rifkind Wharton & Garrison, Wachtell Lipton Rosen & Katz, and Rubenstein Associates. Tech Data is advised by Bank of America Merrill Lynch and Cleary Gottlieb Steen & Hamilton.
Curtiss-Wright, an American-based, global diversified product manufacturer and service provider, agreed to acquire 901D Holdings, a designer and manufacturer of mission-critical integrated electronic systems, subsystems and ruggedized shipboard enclosure solutions, for $132m.
"The acquisition of 901D increases our footprint on critical US Navy shipbuilding programs, as well as the breadth of our instrumentation and controls systems technologies. The combination of 901D’s proven track record and Curtiss-Wright’s state-of-the-art electronic systems and software capabilities will allow us to provide shipboard solutions on both nuclear and non-nuclear powered vessels and ensures that we are well-positioned to benefit from the continued expansion of our US naval fleet. Further, this transaction reinforces our long-term financial objectives including increased sales growth, margin expansion, and strong free cash flow generation,” David C. Adams, Curtiss-Wright Chairman, and CEO.
Brazilian private equity firm IG4 Capital is set to acquire a minority stake in Peruvian construction conglomerate Grana y Montero. Financial terms were not disclosed.
A condition for the deal to be concluded is an agreement with prosecutors to exempt the acquirer of Grana y Montero from fines related to corruption investigations.
Bids for Quebec lithium plant are due by January.
Bids to acquire Chinese battery firm CATL’s mothballed lithium plant in the Canadian province of Quebec are due by January next year, Reuters reported.
Lithium is expected to be in hot demand in the early years of the next decade, but an oversupply of the battery metal this year has pummeled the industry, causing significant producers to cut back and forcing some smaller miners out of business.
North American Lithium, backed by top battery maker Contemporary Amperex Technology, halted operations last year at its Quebec mine and obtained creditor protection in May.
Imerys considers the sale of North American talc business.
French group Imerys is exploring options for its North America talc unit, which filed for bankruptcy after being drawn into cancer lawsuits connected to Johnson & Johnson's baby powder, Reuters reported.
Imerys Talc America filed for Chapter 11 bankruptcy in February, saying it lacked the financial clout to defend against nearly 15k lawsuits over its talc mineral product, which is also used in cosmetics.
EMEA
The Morgan Stanley Infrastructure Partners fund extended its offer to buy German renewable firm PNE by two weeks to December 12. MSIP’s bid of €4 ($4.4) per PNE share, valuing the group at €306m ($337m), has been rejected by top-10 shareholders ENKRAFT and Active Ownership.
ENKRAFT, which holds more than 3% of PNE, has said that a fair offer would be €6.9-7.1 ($7.6-7.8) per PNE share, valuing the firm at up to €544m ($599m).
PNE is advised by Hengeler Mueller, Mirnock Consulting, PwC, and Latham & Watkins. Morgan Stanley Infrastructure is advised by BNP Paribas, Morgan Stanley, CMS, Sullivan & Cromwell, and FTI Consulting.
Elsevier, an information analytics business service provider completed the acquisition of 3D4Medical, a software provider for anatomy education, for $50m.
“Our advanced and proprietary technology and content are available on the devices used by a new generation of students. Together with Elsevier, a global leader in medical content, we look forward to this new and exciting chapter,” John Moore, 3D4Medical Founder.
Elsevier was advised by Global Communications.
Rathbone Brothers, a provider of individual investment and wealth management services, is set to acquire the Personal Injury and Court of Protection business of Barclays Wealth. Financial terms were not disclosed.
The acquisition will be funded from existing capital resources and is consistent with one of the six strategic priorities (penetrating specialist markets) outlined by Rathbones in its strategic update presented on 17 October 2019.
"The Personal Injury and Court of Protection sector is an attractive specialist part of the UK Wealth Management market. The Barclays Wealth team is highly experienced and has a strong set of relationships in their sector. We're delighted that they are joining us to complement our existing specialist capability," Paul Stockton, Rathbones CEO.
Rathbones is advised by Camarco.
Pets Choice, a pet food manufacturer, completed the acquisition of Bob Martin, a pet healthcare provider. Financial terms were not disclosed.
“We are very sorry to see such a long-standing, iconic brand like Bob Martin enter into administration however we are honoured that the Martin family have entrusted Pets Choice to build upon the fantastic reputation that has been set out by the brand. We welcome the Bob Martin brand into our strong product portfolio which will complement our Webbox range and offer us a fantastic branded range of Healthcare and Cat litter products going forward,” Tony Raeburn, Pets Choice CEO.
Vision Investment, the Dubai-based investment vehicle of DAMAC Properties, completed the acquisition of Italian luxury fashion brand Roberto Cavalli from private equity firm Clessidra. Financial terms were not disclosed.
"We are excited about carrying forward the incredible legacy of the Roberto Cavalli brand. DICO has a long and fruitful association with Roberto Cavalli, and I believe that the brand resonates with our idea of luxury. I am happy to announce that the transaction was executed swiftly and that we will ensure stability in management," Hussain Sajwani, DAMAC Properties Founder and Chairman.
Vinted, an online marketplace for second-hand clothes, raised $141m in the recent round at a more than $1bn valuation. Lightspeed Venture Partners led the round, with participation from existing backers such as Sprints Capital, Insight Venture Partners, Accel and Burda Principal Investments.
The funds will be used for further expansion in Europe, as well as for doubling its product and technology teams to 600 people.
“We are approaching an inflection point in the market for second-hand fashion. Consumers around the world are becoming increasingly conscious of their buying choices,” Thomas Plantenga, Vinted CEO.
Ardenton Capital, a private equity firm completed the acquisition of Pebbles Care, an operator of care homes and specialist school academies across the UK. Financial terms were not disclosed.
“Pebbles has been providing outstanding care for more than 16 years, so it was crucial that we found an investor who believed in maintaining the values that have made the company successful. Ardenton’s strategy of a long-term investment model will ensure that Pebbles continues to flourish and grow as a national preferred provider,” Luiz Guilherme, Pebbles Director.
Market research agencies Kynetec and the Kleffmann Group completed the merger of their market research business to form Kleffmann Group Market Research. Financial terms were not disclosed.
The newly merged company will develop globally consistent solutions, world-wide farmer respondent communities, and advanced analytics that take market insight generation to the next level. The newly combined company includes around 950 market researchers, interviewers, data analysts, marketing scientists and data visualization specialists across 30 countries.
Private equity firm Torqx Capital Partners is set to acquire a majority stake in Descroes, a provider of fumigation, disinfection and other good treatment services. Financial terms were not disclosed.
“We are impressed by the entrepreneurship and passion of Maxim, which has led to the Company’s impressive growth trajectory during the last years. Descroes will benefit from our expertise and experience in scaling up to accelerating growth. We are highly enthusiastic about our partnership with Maxim and look forward to supporting the Company in its next phase of development," Cedric De Dycker, Torqx Partner.
Sberbank, which offers commercial banking services, and Cognitive Technologies, a Russian software corporation that develops corporate business-applications and AI-based advanced driver assistance systems, are set to create a joint venture, Cognitive Pilot. Financial terms were not disclosed.
Sberbank is getting a 30% interest in Cognitive Pilot, with 70% of shares to be held by the founders and chief executives at Cognitive Technologies, which will be headed by its founder Olga Uskova.
“The world is about to face the mainstream use of unmanned solutions, and we are interested in Sberbank Group, and our entire country is at the forefront of this trend. Cognitive Technologies already has products for transport, agriculture, and automotive industries that are very popular among both Russian and foreign clients. This year, Sberbank has become the ultimate AI developer in Russia, and we are sure that the expertise in unmanned technology will enjoy demand and contribute to the faster development of AI competence in Russia,” Lev Khasis, Sberbank First Deputy Chairman of the Executive Board.
AXA, a holding company engaged in the business of financial protection, is set to acquire Secure Legal Title, a London-based insurance agency. Financial terms were not disclosed.
“With this transaction, Secure Legal Title builds on its long relationship with AXA XL and its insurers, as well as with Lloyd’s in London and Brussels. There are natural synergies between AXA XL’s property and casualty business and Secure Legal Title’s real estate business, and we are confident that our clients will benefit from access to AXA XL’s infrastructure and additional capacity,” Sean Dalton, Secure Legal Title Chairman.
Arthur J. Gallagher, an American brokerage firm, agreed to acquire the remaining 80% stake of Capsicum, a London-based broker. Financial terms were not disclosed.
“Is pleased to confirm it has agreed and signed heads of terms with Capsicum Reinsurance Brokers, with a view to Gallagher increasing its investment in Capsicum Re to 100% ownership. The parties will now continue their exclusive negotiations,” Patrick Gallagher Jr., Arthur J. Gallagher & Co Chairman, President and Chief Executive Officer.
Mediaset and Vivendi are near finding a legal compromise over Mediaset's plans to create MFE. (FS)
Mediaset and Vivendi are close to ending a long-running legal stand-off with a deal that would see the French group sell a 20% stake in the Italian broadcaster, less than 24 hours ahead of a court-imposed deadline, Reuters reported.
The two media groups have been locked in a series of legal disputes for more than three years and recently fell out over Mediaset’s plans to create a pan-European TV champion. A deal would free Mediaset to press ahead with merging its Italian and Spanish units into a Dutch holding company.
Lone Star in talks to buy BASF construction chemicals unit. (FS)
Lone Star entered exclusive negotiations to buy BASF's construction chemicals business as the German chemicals company seeks to focus on more profitable operations, Reuters reported.
The private equity firm vied with a consortium comprising buyout groups Cinven - which owns peer Chryso - and Bain for the world's largest maker of chemical additives for concrete. The potential deal value is expected to be at around €3bn ($3.3bn).
AB InBev considers options for packaging unit.
Anheuser-Busch InBev, the world's largest brewer, is exploring options for its packaging activities as it streamlines its portfolio and focuses on its core beverage business, Reuters reported.
Deutsche Bank has been hired to explore a sale of a minority stake or a joint venture for AB InBev's North American bottling and canning activities, which could be worth $5-6bn.
The Anheuser-Busch InBev merger in 2015 spurred a series of divestments, notably of non-beer activities, such as its theme parks. St Louis-based Metal Container was mooted as a possible asset for sale at the time, but instead, it was kept.
Chevron starts divestment of two Nigerian offshore blocks.
Chevron launched the sale of its stakes in two Nigerian offshore oil and gas blocks, Reuters reported, as the company seeks to dispose of aging assets to focus on its fast-growing US production.
The US energy giant is offering its 40% stake in the shallow-water Oil Mining Lease 86 and OML 88, which produce around 6.2k barrels of oil equivalent per day.
“Chevron Nigeria, the operator of the joint venture between the Nigerian National Petroleum, confirms that it is offering interested parties the opportunity to acquire its 40% interest in Oil Mining Lease 86 and Oil Mining Lease 88 in Nigeria,” Ray Fohr, Chevron spokesman.
Germany considers tightening foreign investment rules for critical sectors.
Germany plans to screen non-European investors that want to buy into firms in high-tech sectors such as robotics and artificial intelligence in a move widely seen as targeting Chinese state-backed investors.
The measures are part of a new industrial strategy due to be announced by Economy Minister Peter Altmaier on Friday, Reuters reported.
Under the new rules, investors in sectors including artificial intelligence, robotics, semiconductors, biotechnology, and quantum technology would have to make public any purchases of 10% or more and allow Germany to check them.
Aramco IPO retail offering fully covered as deadline approaches.
The retail tranche of Saudi Aramco's initial public offering is more than sufficiently covered with one day to go after 4.2m investors applied to buy shares in the world's biggest oil producer.
The subscription reached SAR38.1bn ($10.2bn), lead manager Samba Capital said in a statement, equivalent to about 120% of the portion set aside for retail investors.
Morgan Stanley among investors vying to acquire a stake in Sanovel Ilac Sanayi ve Ticaret. (FS)
Morgan Stanley and a group of investors are close to buying 30% of Turkish drugmaker Sanovel Ilac Sanayi ve Ticaret, Bloomberg reported.
London-based buyout firm Metric Capital Partners is also part of the consortium that will pay almost $200m for the stake in the producer of anti-inflammatory, anti-asthmatic, and antibiotic medication.
Pernod Ricard looking to invest in tequila brands.
Pernod Ricard is looking to expand its tequila range, possibly through acquisition, the French drinks group's CEO for Europe, the Middle East, Africa, and Latin America said. Gilles Bogaert told investors that tequila was a key spirits category for the group, which has been targeted by activist investor Elliott.
“We do not discount adding new brands to the (tequila) portfolio. We want to reinforce the weight of the tequila business in Pernod Ricard’s portfolio,” Gilles Bogaert, Pernod Ricard Group CEO.
Brait to raise equity to deal with debts.
Virgin Active and New Look owner Brait said it plans to raise up to ZAR5.6bn ($381m) via a rights issue and other measures to tackle its high debts, roiling the South African investment firm's shares.
Shares in Brait, the majority owner of gym brand Virgin Active and British clothing group New Look, were down 15% after it proposed an equity capital raising.
Mediahuis is ready to buy UK's Telegraph newspapers.
Mediahuis said it is potentially interested in buying the Telegraph newspapers from the Barclay brothers, a move that would reunite the titles with their former chief executive Murdoch MacLennan.
David and Frederick Barclay are considering a sale of the Telegraph Media Group and other assets, in part to address the differing priorities of the billionaire twins and their families.
"If the Telegraph is for sale, they should give me a call," Gert Ysebaert, Mediahuis CEO.
APAC
NRW Holdings, a provider of contracting services, is set to acquire BGC Contracting, a provider of mining and construction services, for A$310m ($210m).
"We are extremely pleased to announce the acquisition of BGC Contracting, which is strongly aligned with our objective to pursue opportunities to further diversify our revenues and enhance shareholder returns," Jules Pemberton, NRW CEO and Managing Director.
NRW is advised by Longreach Capital, Corrs Chambers Westgarth, King & Wood Mallesons, and Cannings Purple.
Zurich, a global insurer, completed its acquisition of Adira, which operates as an insurance company, from Bank Danamon, which provides general banking services, for $414m.
“Indonesia’s growing economy, rapidly expanding the middle class, and low insurance penetration present great opportunities. The acquisition of Adira Insurance is a good illustration of our strategy of achieving positions of scale in attractive growth markets and strengthening our distribution channels,” Jack Howell, Zurich Asia Pacific CEO and Executive Committee member.
Nuvoton, which manufactures a wide range of semiconductor products, is set to acquire the Semiconductor Business of Panasonic for $250m.
The acquisition of the semiconductor business mainly operated by PSCS will generate greater value for customers and shareholders of both companies, and will increase Nuvoton’s presence in the global semiconductor industry through greater scale and volume of semiconductor solutions.
City Football Group, which owns and operates football-related clubs and businesses including Manchester City, agreed to acquire a 65% stake in Mumbai City FC, a professional football team in Indian Super League. Financial terms were not disclosed.
“We believe that this investment will deliver transformative benefits to Mumbai City FC, to City Football Group and Indian Football as a whole. City Football Group is committed to the future of football in India and to the potential for Mumbai City FC within that future. We are very much looking forward to playing an active role in Mumbai City FC’s fan and local communities, and working with our co-owners to further develop the Club as quickly as possible,” Khaldoon Al Mubarak, CFG Chairman.
Caisse de depot et placement du Quebec agreed to acquire a 24.9% stake in the extended Sydney Metro trains, systems, operations and maintenance public-private partnership contracts for $113m. Other investors included MTR, Marubeni, Plenary Group and CIMIC Group.
“This investment is perfectly aligned with our strategy to invest in high-quality infrastructure assets, alongside partners with a deep understanding of the market and vast operational expertise.” Emmanuel Jaclot, CDPQ Executive Vice-President and Head of Infrastructure.
Prudential Financial hires Goldman for South Korean unit sale.
Prudential Financial, a US life insurer, hired Goldman Sachs to explore the possibility of selling its South Korean unit, which could fetch about KRW2tn ($1.7bn), Reuters reported.
A sale of the group would see the US insurer exit the South Korean market after about 30 years since it first entered.
South Korea's large financial firms like KB Financial Group and Woori Financial Group, as well as private equity funds are named as potential buyers of the insurer.
Reliance denies being in talks with Times Group to sell news assets.
India's Reliance Industries, controlled by Asia's richest man Mukesh Ambani, denied a report that it was in talks to sell its news assets to local media conglomerate Times Group. Bennett Coleman & Co, also known as the Times Group, was looking to hire advisers to run due diligence on the news properties of Reliance's Network 18 Media and Investments.
Warburg Pincus seeks to raise $1.5bn for the first India-focused fund. (FS)
Private equity firm Warburg Pincus is looking to raise up to $1.5bn for its first fund targeting deals in India, DealStreetAsia reported, betting on a surge in investment opportunities in Asia's third-largest economy.
Warburg plans to finish fundraising on its India-focussed fund, which will target industrial sectors such as financial, manufacturing, and consumer, by the first half of next year. Launches of India-focused private equity funds are rare, and significant global buyout firms such as KKR, Bain Capital, and Blackstone Group typically invest in a country mainly from their regional funds.
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