AMERICAS
Blackstone Real Estate Income Trust, a perpetual-life, institutional quality real estate investment platform, completed the acquisition of American Campus Communities, a real estate investment trust, for $12.8bn.
“We are proud and excited to have our best-in-class company join Blackstone, whose expertise, resources and consistent access to capital will allow us to grow and continue to lead the student housing industry. This transaction created significant value for our shareholders and represents the culmination of our team’s passionate and dedicated service to our student residents and university partners," Bill Bayless, American Campus Communities Co-Founder & CEO.
American Campus Communities was advised by Bank of America, KeyBanc Capital Markets, Dentons and Joele Frank. Blackstone was advised by Citigroup, JP Morgan, Morgan Stanley, TSB Capital, Wells Fargo Securities and Simpson Thacher & Bartlett.
Partners Group, a private markets firm, agreed to acquire a majority stake in Foundation Risk Partners, a specialist insurance broker, from Warburg Pincus, a private equity firm. Financial terms were not disclosed.
“FRP provides us with access to the growing insurance brokerage market in the US, which benefits from stable non-discretionary demand and favorable tailwinds. We have been tracking this market for several years and were attracted to FRP’s diversified service offering and client base, as well as the transformational platform-building opportunity it represents. We look forward to working with FRP’s very experienced management team on implementing the value creation plan,” Joel Schwartz, Partners Group Partner, Co-Head Private Equity Services.
Partners Group is advised by Morgan Stanley and Ropes & Gray. Warburg Pincus and Foundation Risk Partners are advised by Barclays, Marshberry, Kirkland & Ellis, Jamieson and Peter W. Klein.
Disc Medicine, a privately-held, clinical-stage biopharmaceutical company, agreed to merge with Gemini, a clinical-stage precision medicine company, in a $175m deal.
“Gemini’s strategic review was a thorough and thoughtful process. We believe that this transaction presents an exciting opportunity for our shareholders, as Disc has built a diversified, clinical-stage pipeline of product candidates, and we believe in the ability of Disc’s experienced management team to lead the combined company. We look forward to its continued success,” Georges Gemayel, Gemini interim President and Chief Executive Officer.
Gemini is advised by SVB Securities, Goodwin Procter and WilmerHale. Disc Medicine is advised by Morgan Stanley, Wedbush PacGrow, Stern IR and Verge Scientific Communications.
Kohlberg, a private equity firm, agreed to acquire a 50% stake in United States Infrastructure, a company which provides a comprehensive solution for utility services and damage prevention, from Partners Group, an investment company for $4.1bn.
"We are honored to have the opportunity to work alongside Partners Group to support Mike and the USIC management team in its exciting next chapter of growth. USIC is uniquely positioned as a leading provider of mission-critical safety services to utilities and telecommunications customers, who are undergoing periods of significant growth and transformation driven by grid modernization, continued technological innovation, and further accelerated by infrastructure stimulus," Benjamin Mao, Kohlberg & Company Partner and Head of Infrastructure Services.
Kohlberg is advised by Goldman Sachs, Houlihan Lokey and Paul Weiss Rifkind Wharton & Garrison. Partners Group is advised by Bank of America, Harris Williams & Co and Ropes & Gray.
HarperCollins Publishers Chief Executive Officer Brian Murray told a federal judge that his company wants to buy Simon & Schuster if the government succeeds in blocking Penguin Random House’s bid to take over its smaller rival on antitrust grounds, Bloomberg reported.
Murray, testifying in Washington federal court, told US District Judge Florence Pan that he didn’t see a HarperCollins tie-up with Simon & Schuster as anticompetitive, even though it would still cut the list of the five largest publishers down to four.
Bertelsmann is advised by JP Morgan, Arnold & Porter Kaye Scholer and Davis Polk & Wardwell. Viacombs is advised by LionTree Advisors, Shearman & Sterling and Finsbury Glover Hering.
Everett Cash Mutual, an insurance services provider, agreed to acquire the Farm, Ranch, and Equine business of Global Indemnity Group-backed American Reliable Insurance, an insurance services provider, for $85m.
“GBLI will be working closely with ECM to assure that the renewal rights and acquisition transactions will be seamless for ARIC policyholders and ARIC’s agent partners. In that regard, we encourage ARIC’s agents to partner with ECM, who is a carrier dedicated to processing Farm, Ranch, & Equine insurance.” Charlton added that, “These transactions will also enable GBLI to further sharpen its focus on the company’s core small and middle market commercial specialty casualty businesses," David Charlton, GBLI CEO.
Everett Cash Mutual is advised by Philo Smith Capital and Mette Evans & Woodside. GBLI is advised by Fox Paine and Skadden Arps Slate Meagher & Flom.
Catalent, a multinational corporation, agreed to acquire Metrics Contract Services, a company which provides resources and capabilities along with the high standards of scientific excellence and staff experience, from Mayne Pharma, a pharmaceutical company, for $475m.
“This acquisition will further expand Catalent’s ability to meet our customers’ expectations in fast-growing areas of the business and patient need. The experienced team and consistently improved, state-of-the-art facility in Greenville will provide Catalent’s customers with immediate, fit-for-scale capacity for in-demand highly potent drugs and other oral solid small-to-mid-size batch needs. This capacity is particularly important for customers with R&D pipelines featuring accelerated, orphan, and rare disease programs for oncology and other important therapeutic areas,” Aris Gennadios, Catalent President.
Mayne Pharma is advised by Boston Consulting Group, Centerview Partners and Skadden Arps Slate Meagher & Flom.
RS Group, a distributor of industrial and electronics products, agreed to acquire Risoul, an industrial equipment supplier, for $275m.
"We are accelerating our organic growth with bolt-on acquisitions that meet our key strategic, financial and cultural criteria. Risoul enables RS to expand our position and execution expertise in the Americas, specifically in Mexico and the rest of Latin America, and drive cross-selling synergies across our product and service solutions offer. As part of RS Group, Risoul will benefit from our digital capabilities and international scale, providing an opportunity to expand beyond its existing strengths, while creating new capabilities. We are excited about the growth opportunities we see as part of our Journey to Greatness and welcome the Risoul team to the RS Group," Lindsley Ruth, RS Group CEO.
RS Group is advised by Citigroup and Tulchan Communications.
OMERS Private Equity, a private equity firm, completed the acquisition of a minority stake in NovaSource Power Services, a solar operations and maintenance company, for $100m. Clairvest Group will continue as the majority equity holder of NovaSource.
“We welcome OMERS to the NovaSource community and are excited to see a company of such strategic significance capitalizing on the opportunity to invest for financial growth and social impact. Working together, we will build the global leader in solar and storage services and create meaningful social impact tomorrow through our actions today," Troy Lauterbach, NovaSource CEO.
NovaSource was advised by Goodmans. OMERS was advised by Weil Gotshal and Manges.
American Pacific Group, a private equity firm, completed an investment in Concisys, a manufacturer of electronics. Financial terms were not disclosed.
“We are thrilled to partner with American Pacific Group in this next phase of growth. For more than 20 years, we have delivered on an unwavering commitment to meeting the technical needs and stringent quality standards of leading manufacturers. As we continue to scale, our partnership with APG will allow us to accelerate our ability to bring innovative, best-in-class contract manufacturing solutions to our customers here in Southern California and beyond," Giao Nguyen, Concisys Co-Founder and President.
American Pacific Group was advised by Jones Day and brands2life.
AppLovin, a mobile entertainment company, agreed to acquire Unity, a video game software maker, for $17.5bn.
AppLovin makes tools for app developers to improve marketing and revenue generation. Unity operates a platform for developing mobile, console and computer videogames as well as other interactive software applications. Together, they essentially would provide a one-stop shop of tools and resources for mobile-game and other app developers.
AppLovin is advised by JP Morgan and Wilson Sonsini Goodrich & Rosati
Bain Capital-backed US LBM, a privately owned full-line distributor of specialty building materials, completed the acquisition of Deco Truss, a manufacturer and supplier of structural roof and floor trusses to customers, from Skyway Capital, a private equity firm. Financial terms were not disclosed.
“We are pleased to see our differentiated approach continue to yield extraordinary outcomes for our clients and are so happy for the Espiñeira family and what they were able to accomplish through this transaction,” Michael Faraone, Skyway Capital Markets Senior Managing Director.
ATSG, a tech-enabled managed services and solutions company, completed the acquisition of Vology, a technology company offering managed IT solutions. Financial terms were not disclosed.
"The Vology acquisition was a strategic choice to complement both ATSG's well-established Intelligent Solutions as a Service portfolio and ever-expanding geographic presence throughout the Southeast. Our partnership with Vology has provided accelerated innovation and automation at scale, along with a rich cultural alignment centered around our people and our clients. We are excited to rapidly integrate the two organizations, leveraging our global footprint, to deliver client success in today's dynamic marketplace," Anthony J. D'Ambrosi, ATSG Chief Executive Officer.
J&F Investimentos, a private investment holding company, completed the acquisition of the Brazilian business of Ontex, a supplier of disposable personal hygiene products. Financial terms were not disclosed.
Ontex said it is divesting its emerging markets activities after a strategy review last year.
Elon Musk sells $6.9bn Tesla share to back the Twitter deal.
Elon Musk offloaded $6.9bn worth of stock in Tesla, saying he wanted to avoid a sudden sale in the event he's forced to go ahead with his deal to acquire Twitter, Bloomberg reported.
Tesla's chief executive officer sold about 7.92m shares. Musk tweeted that he was done selling and would buy shares in the electric-car maker if the Twitter deal doesn't close.
Votorantim and Temasek launch a $700m Brazil-focus fund. (FS)
Brazil's Votorantim group and Singapore's Temasek Holdings teamed up to launch a $700m fund, 23S Capital, to invest in Brazilian companies, DealStreetAsia reported.
"Our investment mandate will focus on high-potential trends in Brazil and globally, with an emphasis on new business models and technology across various sectors of the Brazilian economy," Matheus Villares, 23S Capital CEO.
Upper90 raises $180m in fresh capital for Fund III launch. (FS)
Upper90, a provider of hybrid growth capital, has raised $180m in a capped initial closing for its third fund. Commitments came from a strategic investor base of 300 entrepreneurs to help founders scale with less dilution.
The firm has pioneered a new investment model combining tailored credit and equity for alignment with technology businesses that have predictable revenue or collateral. Since raising Fund I in 2018, Upper90 manages and has syndicated over $2.2bn across 43 portfolio companies generating attractive risk-adjusted returns through asset-backed credit structures.
EMEA
Philip Morris International, a Swiss-American multinational cigarette and tobacco manufacturer, extended its $16bn takeover bid for Swedish Match, a Swedish multinational tobacco company, to October 21 because it doesn’t expect the European Commission to rule on the deal in time, Bloomberg reported.
The Marlboro maker said discussions with the authorities in Brussels indicated they won’t complete a review of the proposed deal before September 30, when the bid was due to expire. Philip Morris, said its “assessment is that the process with the European Commission will instead be completed during October 2022.”
Swedish Match is advised by Goldman Sachs, SEB Corporate Finance, KANTER Advokatbyra, Mannheimer Swartling and Sullivan & Cromwell. Financial advisors are advised by Cleary Gottlieb Steen & Hamilton. Philip Morris is advised by Bank of America, Citigroup, Clifford Chance, DLA Piper, Davis Polk & Wardwell and Roschier Attorneys. Debt financing is provided by Bank of America and Citigroup. Debt providers are advised by Simpson Thacher & Bartlett.
Sika said its acquisition of MBCC Group, the former BASF Construction Chemicals business, is expected to be completed later than expected after Britain's Competition and Markets Authority decided to conduct an in-depth examination of the market, Reuters reported.
The closing of the deal is now targeted for the first half of 2023, rather than the previously expected end of 2022, Sika said.
Sika is advised by Bank of America, UBS and Baker McKenzie. Financial advisors are advised by Homburger. Debt financing is provided by Citigroup and UBS. Lone Star Funds is advised by Citigroup, Goldman Sachs, JP Morgan, Kirkland & Ellis and Weil Gotshal and Manges.
North Sea investment firm Kistos walked away from its proposed offer to acquire British oil and gas group Serica Energy following weeks of wrangling, Reuters reported.
"Kistos plc is disappointed that, despite repeated attempts by Kistos, the Board of Serica Energy plc has failed to engage meaningfully either with respect to Kistos' proposed offer for Serica or the terms of Serica's offer for Kistos," Kistos.
PIF-backed The Saudi Egyptian Investment, an investment company, agreed to acquire a minority stake in a consortium of businesses Abou Kir Fertilizers & Chemical Industries, Misr Fertilizer Production, Alexandria Container and Cargo Handling, and E-Finance, for $1.3bn.
The kingdom has pledged $10bn of investments into Egypt in sectors such as health care, education and agriculture. Financing from the Gulf provides a crucial backstop to Egypt as it looks stabilize finances.
Accenture, a global consulting firm, completed the acquisition of YSC Consulting, a company which provides leadership strategy consulting services, from Graphite Capital, a private equity firm. Financial terms were not disclosed.
"At a moment when the world needs brilliant leadership more than ever, we are thrilled to join Accenture and bring the best of our expertise in individual leadership, team dynamics, diversity, equity and inclusion strategy, and technology-enabled talent analytics in a respected and rapidly growing platform," Eric Pliner YSC CEO.
CBRE Investment Management, a real assets investment management firm, agreed to acquire the remaining 50% stake in Norled, a ferry and express boat operator, from CapMan Infra, a private equity firm. Financial terms were not disclosed.
“We believe Norled continues to be an attractive European transportation infrastructure investment opportunity due to the long-term availability-based contracts, which have contributed to the resilience of these assets, coupled with the support of the Norwegian government’s accelerated shift to green technologies. We have appreciated partnering with CapMan to grow Norled and now look forward to further advancing this pioneering ferry company,” Andreas Köttering, CBRE Investment Management Head of Europe Private Infrastructure.
TA Associates weighs $1bn sale of Laboratoires Vivacy. (FS)
TA Associates is reviving plans to sell French cosmetic treatment company Laboratoires Vivacy, Bloomberg reported.
The buyout firm is working with BNP Paribas and Rothschild & Co on a potential divestment that could value Vivacy at about $1bn. It has drawn interest from Asian competitors and other private equity firms.
Blue Owl's Dyal hopes to acquire a stake in PAI. (FS)
Blue Owl Capital's Dyal Capital arm is in talks to acquire a stake in private equity firm PAI Partners, Bloomberg reported.
Dyal is in preliminary discussions about the potential purchase of a minority holding in PAI.
Russia may give up majority stake in Eurasian Development Bank.
Russia plans to give up its majority stake in Eurasian Development Bank, formed by six former Soviet states to promote economic integration, to reduce the risk the lender will be targeted by sanctions, Bloomberg reported.
Russia, which holds 65.97% in the lender, wants to reduce its combined stake with Belarus to less than half of the development institution. Many state-backed entities in the two countries have been hit by US and European Union sanctions, including measures related to the war in Ukraine, although Eurasian Development Bank hasn't been targeted.
Ahold Delhaize postpones IPO for dutch online unit Bol.com.
Royal Ahold Delhaize raised its forecast for the year as it weathered soaring ination, but pulled plans to publicly list its Dutch e-commerce unit Bol.com due to volatile equity market conditions, Bloomberg reported.
The Stop & Shop owner said it now expects underlying earnings per share to grow at a mid-singledigit rate this fiscal year relative to 2021 as customers continue to head to its stores despite rising prices. It previously only expected to match 2021 growth levels. Ahold also raised its free cash ow guidance and said it still expects its adjusted operating margin to be at least 4% this year.
APAC
JSW Energy, an energy company, agreed to acquire renewable energy assets from Mytrah Energy, a provider of ground and rooftop solar installations, for $1.3bn.
“This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders," Prashant Jain, JSW Energy Managing Director and CEO.
JSW Energy is advised by KPMG and Khaitan & Co.
SummitView Capital led a $500m funding round in Black Sesame Technologies, with participation from China Industrial Bank, GF Xinde Investment Management, China Group, Xin Ding Capital, Hina Group and Yangtze River Investment.
“SummitView Capital has been focusing on professional investment in key and core technology and semiconductors. We believe that professionalism makes an industry. Nowadays, chip arithmetic power has become an important part of the competition in the automotive industry. We are very pleased to see that Black Sesame’s self-researched Huashan II A1000 series large arithmetic chip is already in mass production and used in cars. This is of great significance to consolidate the local industry chain and supply chain of autonomous driving,” Wu Ping, SummitView Capital Founding Partner.
SoftBank sells 9% stake in Alibaba for $34bn.
SoftBank Group expects to post a gain of more than $34bn from selling down its stake in Alibaba Group Holding, cashing in on its most storied investment to shore up finances as global markets deteriorate, Bloomberg reported.
The investment giant's board approved the early physical settlement of prepaid forward contracts corresponding to about 242m American Depositary Receipts. After the settlement, its stake in China's e-commerce leader will fall to 14.6% from 23.7% as of the end of June.
China investors hedge US delisting risk with Hong Kong play. (FS)
Global fund managers holding US-listed Chinese stocks are steadily shifting towards their Hong Kong-traded peers, even as they remain hopeful Beijing and Washington will eventually resolve an audit dispute to keep Chinese firms on American exchanges, Reuters reported.
The pace of migration will likely accelerate, as more Chinese firms listed in New York are expected to follow technology giant Alibaba's intent to launch so-called primary listings in Hong Kong, potentially boosting liquidity there to smooth the transition.
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