Daily Review

Summit Utilities, a natural gas distribution and transmission company, completed the acquisition of Arkansas and Oklahoma gas distribution assets of CenterPoint Energy, a US electric utility, for $2.2bn.

"Completing the sale of these natural gas distribution businesses will help us achieve a number of our strategic goals, including efficiently funding our long-term capital investment plans across our regulated utility businesses without issuing external equity, driving industry-leading rate base growth, and allowing us to focus our efforts on executing our plan across fewer jurisdictions," Dave Lesar, CenterPoint Energy President and CEO.

Summit Utilities was advised by Centerview Partners, KeyBanc Capital Markets, Morgan Lewis & Bockius, Joele Frank and Wilby Public Affairs. Debt financing was provided by KeyBanc Capital Markets. CenterPoint was advised by JP Morgan, RBC Capital Markets and Baker Botts.

 

 

Arlington Capital Partners, a Washington, DC-based private equity firm, completed the acquisition of Millstone Medical Outsourcing, a comprehensive solutions provider of quality-critical services to the medical device and pharmaceutical industries, from Schooner Capital, a Boston-based investment firm. Financial terms were not disclosed.

"Over its 20+ year history, Millstone has established itself as the leading provider of outsourced quality-critical services for medical manufacturers. The company is strategically positioned to benefit from several strong secular trends, including increased demand for outsourced post-manufacturing services and significant growth in robotic-assisted surgery. We are excited to partner with Millstone's management team and continue to leverage the company's unique platform and capabilities to further accelerate growth both organically and through strategic acquisitions," Matt Altman, Arlington Managing Partner.

Millstone Medical Outsourcing is advised by William Blair & Co and Locke Lord. Arlington is advised by KeyBanc Capital Markets and DLA Piper.

 

A&M Capital Partners-backed Worldwise, a pet supplies provider, agreed to acquire FurHaven, a company in the pet industry in e-commerce. Financial terms were not disclosed.

"Eric and his team have done a fantastic job to create a leader across pet accessories which has experienced phenomenal growth over the past few years. We're incredibly pleased to bring Eric and his fantastic team under the Worldwise platform to create a category leader that will be able to leverage AMCP's deep expertise in the pet industry to further advance Worldwise's strategy and expansion. Over the past few years, there has been a significant increase in demand for premium, high-quality pet products, and we look forward to continuing to support the Worldwise platform to take advantage of the exciting trends in their product categories," Ryan McCarthy, AMCP Partner.

FurHaven is advised by Aramar Capital Group and Greenberg Traurig. Worldwise is advised by Propel Communications. AMCP is advised by Kirkland & Ellis and Sard Verbinnen & Co.

 

Vista Equity Partners, an American investment firm, agreed to invest $300m in TigerConnect, an American software communications company based in Los Angeles.

TigerConnect will leverage the partnership with Vista to continue its mission to improve patient care through real-time, contextual communications.

TigerConnect was advised by Morgan Stanley and Fenwick & West. Vista Equity was advised by JP Morgan and Kirkland & Ellis.

 

Goldman Sachs Asset Management agreed to invest $250m in Hydrostor, a long-duration energy storage solutions provider.

"We are delighted with this investment by Goldman Sachs. It is transformational for Hydrostor and validates the competitiveness of our proprietary A-CAES solution as well as the strength of our pipeline of potential projects," Curtis VanWalleghem, Hydrostor CEO.

Hydrostor is advised by CIBC World Markets, Fort Capital Partners and Davies Ward Phillips & Vineberg.

 

Platte River Equity, a private equity firm, completed the investment in Turf Care Supply, a formulator and blender of coated nitrogen and other fertilizer products. Financial terms were not disclosed.

"Platte River's cultural fit and relevant experience were important to our team as we chose a partner to support the Company in its next phase of growth," William Milowitz, Turf Care CEO.

Turf Care Supply was advised by Citizens Bank and Calfee Halter & Griswold. Platte River Equity was advised by Bartlit Beck.

 

Investment firms Apollo and Motive Partners led a $225m funding round in CAIS, an alternative investment platform, with participation from Franklin Templeton.

"We are honored to have Apollo, Motive, and Franklin Templeton as our new shareholders and partners. This investment advances the critical role CAIS plays in revolutionizing how the alternative investment and wealth management communities engage, learn, and transact," Matt Brown, CAIS Founder and CEO.

CAIS was advised by Financial Technology Partners and Prosek Partners.

 

Convey Health Solutions, a healthcare technology and services company, agreed to acquire HealthSmart International, a healthcare product company, for $92m.

"The acquisition of HealthSmart will significantly enhance our supplemental benefits healthcare offering, as we believe we are combining our best-in-class technology with a product portfolio to improve the lives of the health plan members that we serve," Stephen Farrell, Convey CEO.

Convey Health Solutions is advised by Davis Polk & Wardwell and ICR.

 

Planet Fitness, one of the largest and fastest-growing franchisors and operators of fitness centers, agreed to acquire Sunshine Fitness Growth Holdings, owner and operator of more than 100 Planet Fitness clubs in the Southeast United States, TSG Consumer Partners, a private equity firm, for $800m.

"We are excited to announce the acquisition of Sunshine Fitness, one of our best-performing franchisees in the system, with locations that will provide geographic diversity to our current corporate store portfolio and that are in markets with a long runway for future store development. Owning corporate stores is an important part of our strategy, as it gives us both relevancy and credibility when making decisions that impact the entire system. Additionally, joining our corporate team is a management team that has built some of the highest store-level profit-generating locations in our system which will enhance our corporate store leadership and capabilities," Chris Rondeau, Planet Fitness CEO.

Planet Fitness is advised by Jefferies & Company.

 

OpenGate Capital, a global private equity firm, completed the acquisition of Chemsolv, a regional distributor of commodity and specialty chemicals and value-added service provider. Financial terms were not disclosed.

"Glenn and Jamie Austin have built a successful business with well-established supplier partnerships, and broad range of capabilities. We're excited to work together and build on this success," Andrew Nikou, OpenGate Capital Founder and CEO.

OpenGate Capital was advised by Prosek Partners.

 

Kohler, a provider of engines, power generation and clean energy solutions, agreed to acquire Curtis Instruments, an electrification partner to OEMs across a broad range of markets. Financial terms were not disclosed.

"Our entire Curtis Instruments organization is excited to join the Kohler Company of global businesses and be part of a forward-thinking privately held company. We were drawn to Kohler because of its nearly 150-year history of strong family leadership and innovation, as well as its commitment to embracing the growing shift to electrification and hybridization. We are excited to help lead this next chapter for Kohler. Kohler and Curtis brands both stand for quality, innovation and commitment to long-term customer success," Stuart Marwell, Curtis President.

Curtis is advised by Willkie Farr & Gallagher.

 

Investment companies Sequoia Capital and Paradigm completed a $1.15bn investment in Citadel Securities, an American multinational hedge fund and financial services company.

"The talent of our extraordinary market-making team combined with our powerful risk management techniques have transformed the client experience in the many markets we serve. In Sequoia and Paradigm, we have partners that appreciate how the strength of our market expertise, advanced predictive analytics and superlative software engineering can redefine an industry. We look forward to their partnership and to welcoming Alfred to our Board as Citadel Securities accelerates its growth," Ken Griffin, Citadel Securities Chairman.

 

 

 

 

Golden Gate-backed Bob Evans Restaurants, an American chain of restaurants, is exploring a sale that could value the fast-casual dining chain at up to $600m. The company is working with financial advisers, Bloomberg reported.

San Francisco-based Golden Gate acquired the restaurant operations from Sandell-backed Bob Evans Farms in 2017 in a $565m deal. In the past 12 months, Bob Evans Restaurants had earnings before interest, taxes, depreciation and amortization of about $65m.

 

Turo, a peer-to-peer car-sharing company, filed for an initial public offering to sell up to $100m worth of shares, although that figure is often a placeholder used to calculate fees. 

The company plans to list its stock on the New York Stock Exchange under the symbol TURO, and underwriters include JP Morgan and Morgan Stanley. IPO market is expected to welcome companies such as grocery-delivery service Instacart, data-analytics company Databricks, and retailer Mattress Firm this year.

Private equity firm Leonard Green & Partners, which has backed companies such as home-and-office-goods retailer Container Store and restaurant operator Velvet Taco, joined the growing ranks of large buyout shops seeking capital with plans to raise at least $17bn for two new funds, WSJ reported.

The Los Angeles-based firm has set a goal of at least $13.5bn for its newest main fund, Green Equity Investors IX, according to documents from the Teachers' Retirement System of Louisiana. The firm expects to hold an initial closing for the new fund in February, according to the documents. It also looks to raise $3.25bn for its Jade Equity Investors II fund, which will back smaller deals.

Pagaya Technologies, a financial technology company, is increasing the size of its equity placement by $150m as part of the merger with EJF Acquisition, a special purpose acquisition company, in a $8.5bn deal.

The new investors include Tiger Global, Whale Rock, GIC, Healthcare of Ontario Pension Plan and G Squared. The size of the PIPE will increase from $200m to $350m.

Pagaya is advised by JP Morgan, Goldfarb Seligman & Co, Skadden Arps Slate Meagher & Flom, ASTRSK PR and ICR. EJF is advised by Barclays, Duff & Phelps, UBS, Simpson Thacher & Bartlett and Gasthalter & Co.

UK competition regulator to look into 50% stake acquisition of Scotia Gas Network. (FS)

The UK competition watchdog will look into the potential acquisition of a 50% stake in Scotia Gas Networks, Reuters reported.

On August 2, 2021, investment companies Brookfield Asset Management and Ontario Teachers’ Pension Plan agreed to acquire a stake in Scotia Gas Networks, a British gas distribution company which manages the network that distributes natural and green gas, from Abu Dhabi Investment Authority, a sovereign wealth fund, and SSE, a multinational energy company, for $2.6bn

Ontario Teachers' Pension Plan Board is advised by Evercore, Linklaters, Weil Gotshal and Manges and Kekst CNC. Abu Dhabi Investment Authority is advised by Nomura and Freshfields Bruckhaus Deringer. SSE is advised by Credit Suisse, Morgan Stanley and CMS.

KKR to invite Saudi wealth fund to back Telecom Italia $37bn bid. (FS)

KKR, a global investment firm, reached out to Saudi Arabia’s sovereign wealth fund to join its proposed acquisition of Telecom Italia, a telecommunication company, Bloomberg reported.

KKR approached the Public Investment Fund, chaired by Saudi Crown Prince Mohammed bin Salman, to gauge its interest in providing capital for the bid. The firm seek co-investors and held talks with other sovereign wealth funds and infrastructure investors about teaming up.

Telecom Italia is advised by Goldman Sachs, LionTree Advisors and Mediobanca. KKR is advised by Citigroup. Debt financing is provided by JP Morgan.

UK watchdog may accept Pennon's remedies to allay Bristol Water deal woes. (FS)

UK Competition and Markets Authority may accept the remedies offered by Pennon, a UK-focused water infrastructure group, to address its concerns over $1.1bn acquisition of Bristol Water, a water supply company, from iCON Infrastructure, an investment group, and ITOCHU, a Japanese corporation. 

Proposed undertakings will seek to maintain separate price controls for the Bristol Water region within a merged water business, Reuters reported.

Pennon is advised by Barclays, Morgan Stanley, Allen & Overy and Finsbury Glover Hering. ITOCHU is advised by Freshfields Bruckhaus Deringer.

Vista Equity-backed Gainsight, a customer success company, completed the acquisition of inSided, a privately held software company based in Amsterdam. Financial terms were not disclosed.

"The next decade will see the emergence of a new technology stack that is designed to grow NRR. InSided has reimagined communities for the age of customer success. By joining forces with Gainsight, we have put ourselves in the best position to help companies around the world leverage digital technology to drive all aspects of the customer journey and positively influence NRR at scale," Robin van Lieshout, inSided Founder and CEO.

inSided was advised by Jones Day.

 

TA Associates-backed Chaos, a provider of photorealistic rendering technology, agreed to merge with LEA Partners-backed Enscape, a developer of real-time rendering and design workflow technology. Financial terms were not disclosed.

"We have been impressed by the growth, high-quality product offerings and loyal customer base of both Chaos and Enscape. Together, we believe the company can build on its strong momentum to create a global leader in the 3D visualization and design workflow space. In partnership with LEA, we are excited to invest in the company's future by deepening product capabilities and growing the breadth of offerings and geography," Stefan Dandl, TA Principal.

TA Associates is advised by BackBay Communications.

 

 

 

 

Getir, a Turkish grocery delivery app, is looking to raise capital at a valuation of $12bn in a funding round started by its existing investors, Bloomberg reported.

Getir, valued at $7.7bn last year, is aiming to raise over $1bn to finance expansion overseas. It’s previously won the backing of firms including Silver Lake, Tiger Global, Sequoia Capital and Mubadala.

Deutsche Bank and Commerzbank fall after Cerberus share sale. (FS)

Shares in Deutsche Bank and Commerzbank opened lower after US investor Cerberus sold holdings in the two lenders. Cerberus bought both stakes in 2017, becoming one of the biggest backers of both banks. It owned 3% of Deutsche Bank and 5% of Commerzbank.

Cerberus is selling about 21m shares out of around 62m it owns at Deutsche Bank, and 25m out of 63m it holds at Commerzbank, WSJ reported. Deutsche Bank opened 1.8% lower, while Commerzbank dropped 2.9%.

TDR Capital’s founders hand over control. (FS, People)

TDR Capital’s founding partners are handing over the reins after spending about two decades building up the UK private equity firm. 

Stephen Robertson and Manjit Dale will pass management to Gary Lindsay and Tom Mitchell, who will become managing partners. Dale will become the firm’s chief investment officer, while Robertson will remain a member of TDR’s investment committee.

APAC

SoftBank Group completed a $146m investment in Qraft Technologies, an AI-enabled fintech company.

The proposed transaction is expected to accelerate Qraft's ongoing expansions into the US and China, while the two parties will also embark upon strategic projects that aim to pursue the possibilities of developing AI-enabled public portfolio management systems for SoftBank.

Qraft Technologies was advised by Gregory FCA.

 

QIA, 65 Equity Partners and Seatown led a $290m Series E round in Carsome, Southeast Asia's largest integrated car e-commerce platform, with participation from Mediatek, Sunway, Gokongwei Group, YTL Group, and Taiwan Mobile.

Carsome plans to use the proceeds raised in this round of financing to accelerate investment in people, product, technology, data capability, infrastructure, and regional expansion of its retail brand, Carsome Certified, across key markets in Malaysia, Indonesia and Thailand.

 

MDI Ventures, a multi-stage venture capital firm, led a $108m Series C round in KoinWorks, a Jakarta, Indonesia-based fintech platform, with participation from Quona Capital, Triodos Investment Management, Saison Capital, ACV and East Ventures.

The funding will be used to scale KoinWorks' solutions and team as the company aims to hire 400 new employees globally to meet demand.

Primavera Capital, a private equity firm, led a $100m Series B funding round in Starfield, a Chinese plant-based meat startup, with participation from Lightspeed and Joy Capital.

The proceeds will go to innovate vegetable protein technologies and improve production, research and development, and lab facilities.

AIA Group, an insurance and finance corporation, is considering selling some life insurance legacy assets in Australia as part of its strategy to streamline its portfolio.

Resolution Life, a life insurance group, has emerged as the likeliest buyer for certain policies related to AIA’s acquisition of Commonwealth Bank of Australia’s life insurance business. A transaction could help Hong Kong-based AIA raise a few hundred million dollars, Bloomberg reported.

GDS’s talks with GLP are said to stall on value.

Talks to combine GDS business, operating the of high-performance data centers, with GLP's data centers in China have stalled over valuation.

An almost 60% stock slump in the past 12 months has made it difficult for Shanghai-based GDS to finance a cash-and-shares deal. Talks could still resume later, Bloomberg reported.

Vodafone Idea slips 21% on making the India government the largest shareholder.

Shares of Vodafone Idea, a telecom operator, dropped after its board approved a rescue plan that gives almost 36% stake to the Indian government instead of past dues and makes it the largest shareholder in the unprofitable wireless phone operator. 

The restructuring in which some of the government dues will be converted to equity will result in dilution for all existing shareholders of the company including the founders. Vodafone Group will own around 28.5% and Aditya Birla Group will have about 17.8% in the company after the conversion, Bloomberg reported.

Singapore Airlines aims to raise $500-750m in US bond deal.

Singapore Airlines is aiming to raise $500m to $750m in a bond deal. The airline has mandated banks to work on the transaction and will start briefings with investors about the deal on January 11, Reuters reported.

Citigroup and DBS are leading the transaction, with BNP Paribas and Standard Chartered as book runners. The deal is classified as Reg S, which means the bonds can only be purchased by investors outside of the United States. 

LG Energy Solution IPO attracts $80bn in bids.

South Korean battery maker LG Energy Solution's $10.7bn initial public offering has received bids worth around $80bn from institutional investors.

The book for the offering, which is the largest ever in South Korea, closed on January 11, 2022, with deal pricing set for January 13, 2022. Potential investors were told there was no price sensitivity in the order book, which was already multiple times oversubscribed, Reuters reported.

India is adjusting rules to ensure the success of its biggest IPO.

From adjusting capital markets rules to sending phone messages and publishing newspaper advertisements, Indian authorities and executives are leaving no stone unturned in trying to ensure Life Insurance of India’s record initial public offering is a success. 

Prime Minister Narendra Modi’s government has the IPO, which could raise between $5.4bn and 13.5bn, this quarter as a key item in its economic agenda, with proceeds from the state-run insurer essential to reaching a budget-deficit target.

JL MAG to price Hong Kong shares at the bottom of range.

JL MAG Rare-Earth, a company mainly engaged in the production of high-performance rare earth permanent magnet materials, priced its Hong Kong share offering at the bottom of a marketed range.

The producer of magnetic rare-earth materials sold 125m H-shares at $4.3 each, to raise about $544m. The shares were offered in a range that had a top at $5.17 per share. Trading is set to begin on January 14, 2022.

SiCepat is in talks with GIC for funding, eyes IPO. (FS)

SiCepat, a logistics startup, is in talks with investors, including sovereign wealth fund GIC, to raise over $150m ahead of its public market debut this year.

The proposed investment could turn SiCepat into a unicorn, pegging its valuation at over $1bn. SiCepat's current valuation stands at $786m, DealStreetAsia reported.

Filinvest-Investree JV gets a nod to raise funds for PE startups. (FS)

Investree Philippines, a fintech joint venture between Philippine-listed Filinvest Development and Investree Singapore, announced that it has received approval from the Securities and Exchange Commission to operate the first licenced crowdfunding platform in the country, DealStreetAsia reported.

“The crowdfunding activities will involve banks or qualified buyers as lenders, and will be limited to small, medium and emerging enterprises as borrowers. The registration of Investree as crowdfunding intermediary and funding portal shall be valid for one year, subject to a review by the SEC of the actual operation of the crowdfunding portal during the first 11 months for possible extension," SEC.