AMERICAS
Brazilian prosecutors filed an appeal with antitrust agency Cade asking the regulator to reconsider its approval of Boeing's acquisition of an 80% stake in Embraer's commercial aviation division for $4.2bn. The deal had been approved without restrictions on January 27 by Cade’s General Superintendent, Alexandre Cordeiro Macedo.
Deputy Attorney General Samantha Dobrowolski filed the appeal. Under Brazilian antitrust law, it will be now be assigned to a reporting commissioner who will decide whether it should be considered by the body, Reuters reported.
Embraer Commercial Aviation is advised by Pinheiro Neto. Boeing is advised by Simpson Thacher & Bartlett. Embraer is advised by Citigroup, Barbosa Mussnich & Aragao, Skadden Arps Slate Meagher & Flom, and Cleary Gottlieb Steen & Hamilton.
Genstar Capital-backed Enverus, an energy SaaS and data analytics company, completed the acquisition of RS Energy Group, an innovative technology firm focused in the upstream oil & gas industry. Financial terms were not disclosed.
"This is about accelerating innovation through high-powered technology and is another active step for Enverus in breaking down silos by building workflows across engineering, geology, land, operations, and so much more. Our aligned vision, client-centric focus, and a relentless commitment to innovation will help our customers solve their most complex challenges. These values will never change," Jeff Hughes, Enverus CEO and President.
RS Energy was advised by Credit Suisse, Jefferies & Company, and Kirkland & Ellis. Enverus was advised by Goldman Sachs, Irell & Manella, Ropes & Gray, Simpson Thacher & Bartlett and Weil Gotshal and Manges.
Curaleaf Holdings, a vertically integrated cannabis operator, announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, concerning the $875m acquisition of Grassroots.
The companies continue to work together to receive necessary regulatory and state approvals and expect the transaction to close in the spring of 2020.
"We are thrilled to reach this milestone as we progress towards the transformational acquisition of Grassroots. We will continue to focus on executing on our strategy while enjoying the benefits of greater scale and brand recognition across both new and existing markets," Joseph Lusardi, Curaleaf CEO.
Grassroots is advised by Canaccord Genuity, Stoic Advisory, and Katten Muchin Rosenman. Curaleaf Holdings is advised by Eight Capital, Loeb & Loeb, and Stikeman Elliott.
Alphabet-owned Google completed its acquisition of privately held big-data analytics firm Looker Data Sciences for $2.6bn after winning clearance from Britain’s competition watchdog.
Google announced the cash deal in June, the first major acquisition for its new cloud business. The deal aims to build upon the success of Google Cloud’s BigQuery, a tool for managing large datasets.
Looker Data Sciences was advised by Qatalyst Partners and Cooley. Google was advised by Lazard and Cleary Gottlieb Steen & Hamilton. Lazard was advised by Kirkland & Ellis.
Funds advised by Apax Partners agreed to acquire Cadence Education, a provider of early childhood education in North America, from Morgan Stanley Capital Partners. Financial terms were not disclosed.
"We look forward to working with Dave and the Cadence Education team to continue to execute the strategy that has established the company as a leader in the early childhood education space. Cadence Education's focus on children and parents delivers industry-leading customer satisfaction which, in combination with a highly-skilled team, positions the company for continued growth," Nick Hartman, Apax Partners Partner.
Apax is advised by Simpson Thacher & Bartlett. Moran Stanley Capital is advised by Lazard, William Blair & Co, and Debevoise & Plimpton.
LABORIE Medical Technologies, a manufacturer of medical testing equipment, completed the acquisition of Clinical Innovations, a provider of medical devices, from EQT Partners for $525m.
"We are pleased to welcome the incredibly talented Clinical Innovations team to the LABORIE family. We look forward to investing in and building upon Clinical Innovations' unique product portfolio and specialty channels to continue to benefit mothers, babies and healthcare professionals around the world," Michael Frazzette, LABORIE President and CEO.
LABORIE was advised by Piper Jaffray and Cleary Gottlieb Steen & Hamilton. EQT was advised by Simpson Thacher & Bartlett.
CenterOak Partners-backed Service Champions, a HVAC company, completed the acquisition of Bell Brothers Plumbing Heating and Air, a provider of air conditioning and plumbing services. Financial terms were not disclosed.
"The Bell Brothers team is thrilled to be joining Service Champions, an organization that shares our vision and commitment to our customers and employees. Partnering with Service Champions will bring us significant financial resources to improve our training programs, attract talented employees, and expand our service footprint," Kenny Bell, Bell Brothers President.
Bell Brothers was advised by Greenberg Glusker. CenterOak was advised by Gibson Dunn & Crutcher and BackBay Communications.
First American Financial, a provider of title insurance, settlement services and risk solutions for real estate transactions, agreed to acquire Docutech, a provider of document, eClose and fulfillment technology for the mortgage industry, for $350m
"The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business. We're excited to soon welcome to First American, the people of Docutech, a highly respected leader in the document technology solutions industry. Together, we will accelerate the evolution of real estate closings," Dennis J. Gilmore, First American Financial CEO.
Docutech is advised by Raymond James. First American is advised by Bank of America Merrill Lynch and Sullivan & Cromwell.
Pharmaceutical manufacturing company Roche, completed the acquisition of Promedior, a privately held biotechnology company pioneering the development of targeted medicines to treat fibrosis, for $1.39bn.
Roche obtained full rights to Promedior's entire portfolio of molecules for serious fibrotic diseases, notably PRM-151. Under the terms of the merger agreement, Roche made an upfront cash payment of $390m, with additional contingent payments of up to $1bn to be made based on the achievement of certain predetermined development, regulatory and commercial milestones.
"We're excited to announce the close of the Roche acquisition and to join the Roche Group. We look forward to being part of Roche to further advance programs in IPF, hematological cancer, and other fibrotic disorders and bring new treatment options to patients within these areas of significant unmet need," Jason Lettmann, Promedior CEO.
Promedior was advised by Argot Partners. Roche was advised by Davis Polk & Wardwell.
Sun Capital Partners, a private equity firm, completed the acquisition of West Dermatology, a medical dermatology services provider, from Enhanced Healthcare Partners, a private equity firm. Financial terms were not disclosed.
"West Dermatology is a true strategic platform that benefits from a carefully assembled portfolio of best-in-class providers, a strong management team prepared to execute an ambitious growth strategy, great strategic payor relationships, and a deep bench of dermatologists recognized as clinical thought leaders. We are excited to support West's execution of its disciplined growth strategy and further build on the company's legacy of excellence," Dan Florian, Sun Capital Managing Director.
West Dermatology was advised by Jefferies & Company. Sun Capital was advised by Stanton PRM.
Greenergy, an international supplier of transportation fuels, agreed to merge with BG Fuels, a Canadian gasoline and convenience retailer. Financial terms were not disclosed.
"Since entering the Canadian market in 2013, Greenergy has invested in strategic infrastructure in Ontario to deliver low-cost and resilient fuel supply to customers, and also introduced two new retail brands for the independent dealer market. The merger with BG Fuels will allow us to extend our supply footprint and retail offer across Canada, enabling significant future growth. The experience and resources of both businesses will further strengthen our retail offer to the independent dealer market," Christian Flach, Greenergy CEO.
Greenergy is advised by Macfarlanes.
Airbus, a global company in aeronautics, space and related services, and the Government of Québec completed their acquisition of a 33.5% stake of A220 Programme from Bombardier, a global company in the transportation industry. Financial terms were not disclosed.
"This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry. I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry,” Guillaume Faury, Airbus Chief Executive Officer.
Securian Financial, which provides insurance services, agreed to acquire the Canadian business of Gerber Life, a provider of life insurance services. Financial terms were not disclosed.
“Canadian Premier has grown significantly since we acquired the company and this new book of business will accelerate that momentum. We see a bright future in Canada and will continue evaluating opportunities to grow our business in the country,” Chris Hilger, Securian Financial Chairman, President and CEO.
AmeriLife Group, an insurance services provider, completed the acquisition of a majority stake in J.D. Mellberg Financial, an annuity and retirement planning organization. Financial terms were not disclosed.
"We are excited to partner with AmeriLife – a powerhouse in the industry. With this new partnership, we can continue our rapid growth, while remaining dedicated to serving the needs of our clients and agents," Joshua Mellberg, J.D. Mellberg Founder.
Citizens Financial Group, a provider of commercial banking services, is set to acquire Trinity Capital, an investment bank focused on providing financial advice on mergers and acquisitions. Financial terms were not disclosed.
“We share Citizens’ commitment to providing exceptional solutions and look forward to delivering the bank’s broad set of capabilities to our growing client base,” Kevin Burke, Trinity Capital Managing Director.
Tesla plans $2bn share sale.
Tesla announced plans to raise $2bn in a stock offering, tapping into an astronomical jump in its share price over the past few months and reversing the electric-car maker’s often-stated policy of avoiding sales of new stock.
Tesla said it would offer 2.65m shares, of which Chief Executive Officer Elon Musk will buy up to $10m in shares, while board member and Oracle co-founder Larry Ellison will purchase up to $1m worth of Tesla shares.
The stock had tripled since October when the company posted a rare quarterly profit. Its market capitalization now exceeds the combined value of General Motors and Ford.
Miami Herald owner McClatchy files for bankruptcy.
Miami Herald parent McClatchy, whose investigative reporting on Jeffrey Epstein put fresh scrutiny on the disgraced financier, filed for bankruptcy.
“When local media suffers in the face of industry challenges, communities suffer: polarisation grows, civic connections fray and borrowing costs rise for local governments. We are moving with speed and focus to benefit all our stakeholders and our communities,” Craig Forman, McClatchy group president and chief executive officer.
InfoPro Digital Group, a software development company, is set to acquire Haynes Publishing Group, a publisher of illustrated workshop car manuals and motorcycle manuals, for $148m.
"The Haynes board believes that the markets it serves have great potential for Haynes' future growth and development and that a combination with Infopro Digital will provide Haynes with the scale, capabilities, and resources to ensure that it stays at the forefront of these markets and maximizes its potential. The proposal from Infopro Digital reflects these opportunities and represents an attractive opportunity for Haynes shareholders to crystallize an immediate and certain value in cash for their shareholdings, at a significant premium to current and historical share price trading levels," Eddie Bell, Haynes Chairman.
Haynes is advised by Panmure Gordon & Co, Europa Partners, Fieldfisher, and New Century Media. Infopro Digital is advised by Raymond James, Norton Rose Fulbright, and Brunswick Group.
Prosafe, an owner and operator of semi-submersible accommodation vessels, terminated the $120m acquisition of Floatel, which owns and operates a fleet of oil production platform vessels, from Oaktree Capital Management.
MML Capital, a private equity firm, completed the acquisition of a majority stake in Spencer Ogden, a specialist global energy and infrastructure recruitment agency. Financial terms were not disclosed.
"I'm very excited to be partnering with MML for the next part of the Spencer Ogden journey. The investment is most certainly a vote of confidence in our future success & people," Bradley Lewington, Spencer Ogden CEO.
MML Capital was advised by Clearwater.
ABN AMRO Ventures, a corporate venture fund of the bank ABN AMRO, and DXC Technology, a provider of IT service, completed an investment in Fenergo, a provider of client lifecycle management software. Financial terms were not disclosed.
"We are very happy to add Fenergo to our investment portfolio. This investment will contribute to ABN AMRO's strategic priority to build a future proof bank, which includes fighting financial crime. We are impressed with the management team and the solution Fenergo offers. Moreover, this gives us additional exposure to a group of tier-one investors," Hugo Bongers, ABN AMRO Ventures Director.
Schneider Electric, a French electrical equipment group, agreed to acquire RIB Software, a German software developer, for $1.5bn.
"We are pleased to have found in Schneider Electric a strategic partner who shares our vision to revolutionize the global construction industry and to create a carbon-free and sustainable living space for our children and grandchildren. Schneider is the global leader in digital transformation of energy management and automation, enabling efficiency and sustainability for its customers," Tom Wolf, RIB Software Chairman and CEO.
RIB is advised by Lazard and Noerr.
Luxury Asset Capital, a company in the alternative financing market, agreed to acquire Borro Private Finance, which provides loans for luxury assets. Financial terms were not disclosed.
“The acquisition of Borro will further accelerate our growth by solidifying our position as the leading lender using luxury assets as collateral. Borro raised over $180m in investor capital and established itself as one of the most recognized brands in the alternative financing market. We expect that the Borro assets we acquired and merged into our firm will propel our type of lending to the forefront of consideration for anyone who owns a luxury asset and requires immediate capital,” Dewey Burke, Luxury Asset Capital Founder and CEO.
Luxury Asset Capital is advised by keating.
AnaCap Financial Partners, a specialist European financial services private equity firm, agreed to acquire Wealthtime, a wealthtech platform. Financial terms were not disclosed.
"The acquisition of Wealthtime represents AnaCap’s first step into the UK wealth management space, with their highly impressive proprietary technology platform being a significant catalyst for the pursuit of this deal. Wealthtime is widely recognised in the IFA community for its high-quality service offering, while already showcasing an impressive customer base that has largely been established through word of mouth alone to date," Nassim Cherchali, AnaCap Managing Director.
Electricite de France, the first electricity production and supply company in France, agreed to acquire POD Point, a provider of electronic vehicle charging stations. Financial terms were not disclosed.
“This is an incredibly exciting next chapter for Pod Point. We set out in 2009 with the vision that travel shouldn’t damage the earth and a mission to put a charge point everywhere you park. So far, we have made great progress towards those goals. By joining up with EDF we can take things to the next level and accelerate our national roll-out of charging points and make it even easier for drivers across the UK to go electric. I’m immensely proud of what the Pod Point team has already achieved but think it is only a fraction of what we will now be able to do with EDF. We just took a big step forward in being able to deliver against our mission!” Erik Fairbairn, Pod Point CEO & Founder.
Ryanair is not interested in buying Air Italy.
Ryanair’s Chief Commercial Officer denied any interest in buying Air Italy after press reports linking his group to the loss-making airline, which was put into liquidation by its owners earlier this week.
“Let’s clear the room ... We have no interest whatsoever in buying Air Italy. It would be pointless,” David O’Brien, Ryanair Chief Commercial Officer.
CVC considers IPO or sale of Douglas. (FS)
Private equity group CVC Capital Partners is exploring options to sell or list German perfume and cosmetics retailer Douglas, Reuters reported.
“We have brought this company to an excellent level of growth and want to become even more profitable,” Tina Mueller, Douglas Chief Executive.
CVC Capital Partners is advised by Goldman Sachs.
Telecom Italia considers picking a KKR as a partner in the Open Fiber deal. (FS)
Telecom Italia is set to pick private equity firm KKR to help it to create a national fiber-optic champion with Open Fiber, Reuters reported.
TIM was close to selecting KKR because the US investment firm had also expressed an interest in investing in the former phone monopoly’s secondary network - the part that connects street cabinets to subscribers’ homes - which it values at $7.6-$8.2bn.
Big funds, including Ardian, Macquarie, Wren House Infrastructure, Allianz, Goldman Sachs, KKR, and Brookfield tabled non-binding proposal to work alongside TIM before Christmas.
South African Airways considers selling Heathrow slots to raise cash.
South African Airways may sell its two prized night-time operating slots at London’s Heathrow Airport as the state-owned carrier battles to stave off financial collapse, Bloomberg reported.
The national airline is currently using only one of the two takeoff and landing slots and could shift London-Johannesburg flights to a cheaper daytime schedule. That would reduce costs as the turnaround time would be shorter and free up the more valuable night-time slots for a potential sale.
The airline was placed under a local form of bankruptcy protection by South African President Cyril Ramaphosa after last making a profit in 2011 and having received $3.9bn in bailouts since 1994.
Nestle considers more M&A deals as sales growth falters.
Mark Schneider, Nestle Chief Executive Officer, said the world’s largest food and beverage company plans to more acquisitions, identifying areas including metabolic health and nutrition to push sales growth that remains behind the company’s goal.
Nestle made more than 50 deals since Schneider took charge in 2017, transforming 12% of the company’s portfolio. The CEO said that the pace will continue, but with a stronger focus on acquisitions rather than disposals.
Bridgepoint seeks to raise £1bn for the fourth development fund. (FS)
Bridgepoint is targeting £1bn ($1.3bn) for its fourth Development Capital fund.
If the fundraising reaches its goal, Bridgepoint Development Capital IV would be 65% larger than its predecessor, the strategy’s third fund, which raised £605m ($784m) in 2016. Teachers Retirement System of Louisiana already approved a £50m ($65m) commitment.
Commerzbank considers stopping mBank sale unless the price is right.
Commerzbank indicated that it would rather keep its Polish subsidiary mBank than sell it too cheaply.
The German bank’s improving capital buffer gives the bank leeway on the mBank sale, Chief Executive Officer Martin Zielke said. Chief Financial Officer Bettina Orlopp said earlier that the deal will only take place “if we get the right price.”
Liu Jo and Blumarine aim for IPO within two years.
The holding company of Italian fashion brands Liu Jo and Blumarine aims to list on the stock market within two years, chief executive and founder Marco Marchi said.
“The project to create a holding company and buy another brand stems from the awareness that Italy’s fashion industry has great potential but sometimes is penalized by managerial or financial deficiencies,” Marco Marchi, Liu Jo and Blumarine CEO and Founder.
Galileo is up for sale with a $2.7bn price tag. (FS)
The private equity owner of one of Europe’s largest private education groups, Galileo Global Education, put the business up for sale in a deal worth about $2.72bn, Reuters reported.
US buyout fund Providence hired Goldman Sachs and Rothschild & Co to find a new owner for the Paris-based firm, which runs a network of 42 schools in ten countries.
Essling Expansion in talks to invest in SPVIE Assurance. (FS)
Essling Expansion, Essling Capital's Small & Lower-Mid Cap fund, is in advanced talks to invest in SPVIE Assurances, a multi-channel insurance brokerage group.
The arrival of Essling Expansion will provide SPVIE Assurances with new resources to support its ambitious development plan, strengthen the group's organization, and seize significant external growth opportunities.
APAC
An Australian court approved the $10bn merger between a unit of Britain’s Vodafone Group and internet provider TPG Telecom, overruling a regulator and enabling a huge rival to the country’s top telcos.
A Federal Court judge said a tie-up between Vodafone’s joint venture with local telco Hutchison Telecommunications and TPG would not harm competition, rejecting the Australian Competition and Consumer Commission’s reason for blocking the deal last year.
Vodafone Australia is advised by Deutsche Bank, Allens, Norton Rose Fulbright, Bank Of America Merrill Lynch, and Linklaters. TPG is advised by Fti Consulting, Herbert Smith Freehills and Macquarie Group.
Tricor Group, a business expansion specialist, is set to acquire the Malaysian operations of Axcelasia, an integrated professional services firm. Financial terms were not disclosed.
Upon completion of the transaction, Axcelasia's corporate services and business support services will merge into Tricor Malaysia, making Tricor one of Malaysia's largest providers of corporate services to international and Malaysian corporations.
"Upon completion, the transaction strategically equips Tricor with new GRC capabilities to complete our service offerings and meet the client demand for GRC solutions in the Asia Pacific region. The transaction also strengthens our corporate, business and tax services in Malaysia," Lennard Yong, Tricor Group CEO.
Legend Capital closes secondary continuation fund in China. (FS)
Legend Capital, a venture capital and growth investment firm in China, closed the transfer of portfolio companies from LC Fund IV, a 2008 fund, into a $200m continuation vehicle.
Accounts managed by an affiliate of Hamilton Lane acted as lead investor in the transaction, with several other prominent institutional investors participating in the syndicate. The investors also committed follow-on capital for strategic investments in the portfolio companies.
SoftBank considers launching a smaller bridge fund as Vision Fund 2 stalls. (FS)
Japanese juggernaut SoftBank Group is considering launching a smaller fund to precede the much-touted sequel to its roughly $100bn Vision Fund, chairman, and CEO Masayoshi Son said during the group’s earning results briefing.
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