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AMERICAS
Mach Natural Resources, a drilling oil and gas wells company, agreed to acquire Oklahoma oil and gas assets from EnCap Investments, a provider of growth capital to independent energy companies, for $815m.
The acquisition is expected to close December 29, 2023, with an effective date of September 1, 2023.
EnCap Investments is advised by RBC Capital Markets and Vinson & Elkins. Mach is advised by Kirkland & Ellis and Latham & Watkins. Debt financing is provided by Chambers Energy Capital, EOC Partners, Farallon Capital, Macquarie Group and Mercuria Investments.
Sio Silica, a Canadian silica sand producer and supplier, agreed to go public via merger with Pyrophyte Acquisition, a blank check company, in a $708m deal.
"We are excited to partner with Pyrophyte to become a leading producer of high-purity quartz silica," Feisal Somji, Sio CEO.
Sio Silica is advised by BMO Capital Markets, Integral Wealth Securities, DLA Piper and ICR (led by Rodny Nacier). Pyrophyte is advised by UBS and White & Case. Financial advisors are advised by Skadden Arps Slate Meagher & Flom.
Sumeru Equity Partners, a technology-focused private equity firm, agreed to acquire Q4, a capital markets access platform, for $257m.
"I am very pleased about this significant milestone in our journey. Sumeru’s belief in our vision and their exceptional track record in supporting founders and management teams speaks volumes. I am excited to collaborate with them and drive category-defining growth, building the next great capital markets platform company. Q4 has become a central force in how thousands of public companies communicate and engage with the market," Darrell Heaps, Q4 Founder and CEO.
Q4 is advised by Raymond James, Stifel, Blake Cassels & Graydon, Dorsey & Whitney, McCarthy Tetrault and Osler Hoskin & Harcourt. Sumeru Equity Partners is advised by National Bank Financial and Gibson Dunn & Crutcher.
Arch Capital Group, an insurance company, agreed to acquire the mortgage insurance business of Old Republic International, an American property insurance and title insurance company, for $140m.
"We are pleased to announce this definitive exit from the mortgage insurance business. Since placing this business in run-off in 2011, we have been able to preserve significant value for shareholders and we are grateful for the many years of hard work and dedication of our RMIC associates. In the last five years our run-off reserves have developed favorably, enabling us to receive over $398m of dividends from these subsidiaries, inclusive of the $25m expected in the 4th quarter," Craig R. Smiddy, Old Republic President & CEO.
Arch Capital is advised by Jefferies & Company and Eversheds Sutherland. Old Republic is advised by Insurance Advisory Partners and Kirkland & Ellis.
Ajinomoto, a Japanese multinational food and biotechnology corporation, agreed to acquire Forge Biologics, a US based manufacturer of genetic medicines for $620m.
“Forge’s unparalleled expertise in gene therapy development and manufacturing will be a transformative addition to our core growth area of Healthcare as part of our ASV Initiatives 2030 Roadmap. Forge brings to Ajinomoto an entirely new capability that will vitally enhance our Bio-Pharma Services business and help create new value through innovative solutions for communities and society,” Yasuyuki Otake, Bio-Pharma Services Department of Ajinomoto Corporate Executive and General Manager.
Forge Biologics is adviesed by Centerview Partners, Chardan and Ice Miller.
Basic Resources, a private, family-owned organization that manufactures and distributes apparel for leading consumer brands, agreed to acquire the Warners, Olga and True & Co businesses of PVH, an American clothing company, for $170m.
"This transaction is an important next step as we continue to accelerate our focus under the PVH+ Plan to build our core brands, Calvin Klein and TOMMY HILFIGER, into the most desirable lifestyle brands in the world," Stefan Larsson, PVH CEO.
PVH is advised by Solomon Partners and Lowenstein Sandler. Basic Resources is advised by Sills Cummis & Gross.
TotalEnergies, a French energy company, completed the acquisition of three gas-fired power plants from TexGen, a US based power generation company, for $635m.
"We are delighted with the agreement signed with TexGen to acquire 1.5 GW of CCGT in ERCOT. After the signing of several corporate PPA over the last couple of years and the recent start-up of the utility-scale Myrtle solar plant, this deal is a major milestone for our Integrated Power strategy in the ERCOT market. These plants will enable us to complement our renewable assets, intermittent by nature, provide our customers with firm power, and take advantage of the volatility of electricity prices”,Stephane Michel, TotalEnergies Gas Renewables & Power President.
Bowman, a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment, completed the acquisition of CFA, a provider of a mix of civil engineering, planning, surveying, mapping, and remote sensing to a mix of public and private sector customers. Financial terms were not disclosed.
"CFA's team of professionals will be a terrific addition to Bowman. CFA is one of northern Nevada's leading engineering, surveying and planning firms with clients, capabilities, and a geographic focus which are all extremely complementary to the core business of Bowman. This acquisition strengthens our presence in Nevada and provides a solid base from which to continue expansion throughout the state and beyond. I am pleased to have everyone from the CFA team join Bowman," Gary Bowman, Bowman Chairman and CEO.
O2 Investment Partners, a Midwestern-based private equity firm, completed the investment in LCS Facility Group, a provider of janitorial and facility maintenance services. Financial terms were not disclosed.
"LCS shares a similar philosophy to 4M in our business strategy, focus on high quality service, and prioritization of values, culture, and the treatment of our team members. Partnering with 4M allows us to amplify our growth trajectory through leveraging additional infrastructure and resources to better support our valued team members, customers and partners," Daniel Lepore, LCS Facility Group President.
Blue Yonder, a supply chain solutions provider, completed the acquisition of Doddle, a first and last-mile technology business. Financial terms were not disclosed.
"Doddle's differentiated solution to logistics and reverse logistics challenges is the perfect complement to Blue Yonder's existing suite of services," Duncan Angove, Blue Yonder CEO.
Hybe, a South Korean music label completed the acquisition of Exile Music, a Spanish-language music label, from Candle Media, a media company. Financial terms were not disclosed.
Hybe is looking to tap into the rapid growth of the estimated $1.3bn Latin music market, as it reported a year-on-year growth of 26.4% in 2022 compared to a 9% growth in the global music market.
Google in talks to invest in AI startup Character.AI
Alphabet's Google is in talks to invest hundreds of millions of dollars in Character.AI, as the fast growing artificial intelligence chatbot startup seeks capital to train models and keep up with user demand, Reuters reported.
The investment, which could be structured as convertible notes, will deepen the existing partnership Character.AI already has with Google, in which it uses Google's cloud services and Tensor Processing Units to train models.
BioNxt to acquire the intellectual property rights for Cladribine.
BioNxt Solutions, a bioscience accelerator focused on next-generation drug formulations and delivery systems, reached an agreement with a German-based pharmaceutical developer for the acquisition of 100% of the intellectual property rights and joint development of an oral dissolvable drug reformulation using the active pharmaceutical ingredient Cladribine.
"The treatment of certain forms of MS with Cladribine is already a blockbuster drug market with over $1bn in annual sales. This is an incredible opportunity for BioNxt to participate in a massive and growing drug development market with a proprietary dosage form based on the BioNxt drug delivery platform. We are currently focused on drug delivery systems with our Cladribine ODF and Rotigotine TDS development programs as the Company's priority initiatives," Hugh Rogers, BioNxt CEO and Director.
Talent agency CAA and Michael Klein launch sports and media investment bank.
Hollywood talent agency Creative Artists Agency and longtime deal maker Michael Klein are launching a new investment bank focused on sports, media, and entertainment deals, WSJ reported.
CAA's merchant bank, known as Evolution Media Capital, and advisory firm M. Klein & Co. are joining to form CAA Evolution. The combined firm aims to work on large media companies' deals, sell sports teams, and advise on capital raises, including initial public offerings, little of which Evolution does currently.
Hamilton Lane extends the close of the flagship secondary fund to Q1 2024. (FS)
American alternative investment management firm Hamilton Lane has extended the deadline to complete fundraising for its latest flagship secondary vehicle to the first quarter of 2024, a top executive said during the FY2024 second-quarter earnings call on November 8.
Hamilton Lane Secondary Fund VI, which is reportedly targeting a corpus of $5bn, was initially targeting to close the fund by the end of the year. The fund has already gathered almost $2.5bn in capital, according to a quarterly report that ended September 30, 2023. It has also invested around $527m from the fund, DealStreetAsia reported.
EMEA
Permira, a British global investment firm specialized in buyout, growth equity and credit funds, completed the acquisition of Ergomed, a pharmaceutical services company that provides a wide range of services to the biotechnology, pharmaceutical, and medical device industries, for £703m ($859m).
"We are delighted to be announcing this recommended cash acquisition of Ergomed, a high quality, medic-led and fast growing pharma services platform. We look forward to partnering with the Ergomed management team in accelerating Ergomed's growth and fulfilling its vision of becoming the leading pharmacovigilance and rare disease clinical development partner to pharma and biotech clients to safely commercialize complex and often life-saving therapies for patients. Miro and his team have built a very strong foundation and as we look to the next phase of Ergomed's growth, we will continue to support commercial expansion, new capabilities and technological innovation, via investments into the business as well as transformational M&A," Silvia Oteri, Permira Partner and Head of Healthcare.
Georg Fischer, an industrial group, completed the acquisition of Uponor, a company that sells products for drinking water delivery, radiant heating and cooling, for €2.2bn ($2.35bn)
"By combining more than 100 years of expertise of Uponor with our know-how of over two centuries, we would have a great opportunity to build a global leader in the water and flow solutions industry. The two companies have complementary products and geographical footprints, similar cultures and a common ESG commitment. We respect very much the heritage of Uponor and look forward to a prosperous joint future of GF and Uponor," Yves Serra, GF Chair of the Board of Directors.
UniCredit, an international banking group, agreed to acquire a 9% stake in Alpha Bank, the second largest Greek bank by total assets, from Hellenic Financial Stability Fund, a legal entity that monitors, evaluates, manages and provides capital support to credit institutions, for $314m.
If the process with the HFSF is not completed, UniCredit has committed to purchase on market an equity stake equal to the lower of 5% or a different percentage of shares which results from UniCredit investing an aggregate pre-agreed amount over a period of 24 months.
Alpha Bank is advised by JP Morgan. Hellenic Financial Stability Fund is advised by Lazard, Rothschild & Co, UniCredit, Kyriakides Georgopoulos and Skadden Arps Slate Meagher & Flom.
General Atlantic, a global investor, agreed to acquire a majority stake in Joe & the Juice, a Danish chain of juice bars and coffee shops around the world, from Valedo Partners, a growth-oriented active owner investing in small and mid-size companies. Financial terms were not disclosed.
"As a long-term partner to Joe & the Juice, General Atlantic is proud to become a majority investor in the brand and continue our collaboration with the management team. Joe & the Juice's business momentum is inflecting, and we are excited to build on the Company's digital traction and accelerate company-owned and franchised unit growth," Andrew Crawford, General Atlantic Managing Director and Global Head of Consumer.
General Atlantic is advised by Edelman (led by Alex Simmons). Valedo Partners is advised by Citigroup, Moalem Weitemeyer Bendtsen and White & Case.
Saint-Gobain, a provider of construction, high-performance, and other materials, agreed to acquire Izomaks Industries, a manufacturer of waterproofing products. Financial terms were not disclosed.
"This acquisition perfectly complements our existing building envelop offering in Saudi Arabia where Saint-Gobain has been present since 2007, currently operating three manufacturing plants in insulation and mortars (tile fixing, façade renders, flooring and technical mortars) and employing around 320 people," Saint-Gobain.
IKEA, a global home furnishings retailer, completed the acquisition of Churchill Square Shopping Centre, a shopping facility in Brighton, for £145m ($177m).
"Despite economic and geopolitical instabilities, we remain committed to making a positive difference in our customers' lives - especially for those with the thinnest wallets." Peter Jelkeby, UK and Ireland IKEA Chief Executive.
Boeing closes in on major deal with Emirates for 777X jets.
Boeing is closing in on a major order for its 777X widebody model from Emirates, in what would provide an important boost to a program that’s years behind schedule, Bloomberg reported.
Already the biggest buyer of the 777X, Emirates is poised to order a high double-digit number of the widebody. As part of the deal, regional affiliate FlyDubai could take on some orders for the smaller 787 Dreamliner earmarked for Emirates.
Stanley Gibbons to collect new investors in the wake of delisting.
Stanley Gibbons, the global rare stamp and coin trader, is exploring a sale less than 18 months after being delisted from the London stock market. Stanley Gibbons, one of the collectibles industry's most prominent names, is working with advisers to attract new investors, SkyNews reported.
Outright sale was a possibility but that a number of options were being explored. PricewaterhouseCoopers, the accountancy firm, is overseeing the process. Stanley Gibbons traces its roots to 1856 and claims to be the world's oldest rare stamp merchant.
Eramet earmarks $2bn for nickel and lithium expansion.
French miner Eramet plans to invest €1.9bn ($2bn) in the 2024-26 period, largely to boost production of nickel and lithium as it bets on soaring demand for metals used in electric-vehicle batteries, Bloomberg reported.
Miners around the globe are launching a flurry of projects to extract key metals needed for the transition to a low-carbon economy. By 2032, nickel demand for batteries is expected to surpass demand for stainless steel, Eramet said in a statement ahead of its capital markets day on November 13.
Broker Peel Hunt ditches Arix over terms of the takeover deal.
Peel Hunt has pulled out as a broker for Arix Bioscience because the London investment bank believes the terms of a takeover offer for the biotechnology company discriminate against the majority of shareholders, Bloomberg reported.
Under the proposed takeover, life sciences fund RTW Biotech Opportunities is providing a cash exit to Acacia Research, its biggest shareholder with 25.5%, while the remaining shareholders are being offered 1.4633 new RTW shares in exchange for each Arix share. Peel Hunt couldn't support the deal on those terms.
Funds giant Schroders takes a shine to collapsed solar group Toucan. (FS)
An infrastructure investor owned by Schroders, the fund management behemoth, is in pole position to buy a solar farms operator that received hundreds of millions of pounds from a scandal-hit local authority, SkyNews reported.
Schroders Greencoat has become the leading contender to acquire Toucan Energy, which collapsed into administration exactly a year ago. It was unclear this weekend whether Schroders Greencoat was in formal exclusivity to buy the portfolio of more than 50 solar parks. Interpath Advisory, which is overseeing the administration process, appointed KPMG - the accountancy firm from which it was spun out - to handle the auction.
UK petrol station group EG to buy Tesla ultra-fast chargers.
British petrol station operator EG Group said on November 13 that it would buy Tesla ultra-fast charging units to boost its electric vehicle charging network across Europe as the EV maker continues to expand the reach of its charging business, Reuters reported.
EG, owned by the billionaire Issa brothers, who also own UK supermarket chain Asda, will expand its charging network to more than 20k EV chargers at its own sites over time, from above 600 currently deployed. The first Tesla chargers will be installed by the end of this year.
UK Takeover Panel falls victim to deal drought.
The UK's Takeover Panel has become an unexpected casualty of the dealmaking drought, reporting its first deficit in almost a decade. The City of London mergers and acquisitions watchdog, which funds itself from fees charged on transactions and filings, said it recorded a £3.8m ($4.7m) deficit after tax in the year to March. That marked the first such loss since 2014, FT reported.
Staffed by a combination of employees and secondees from law firms and banks, the Takeover Panel's limited formal powers belie the influence it wields over the City's community of M&A bankers and lawyers. The handful of instances where the regulator, which is an independent public body, has publicly censured dealmakers are an indication of how strictly its rules are observed. In the Panel's 55-year history it has only deployed its most severe sanction — the "cold shoulder" that ostracises its recipients from the UK financial sector — four times, most recently with the former Rangers chair Dave King.
Futures broker Marex prepares for New York listing.
Futures and options broker Marex Group is preparing for an initial public offering in New York, swapping venues two years after it pulled plans to list in London, Bloomberg reported.
The UK firm, which is best known for its commodities business and is one of the largest dealers on the London Metal Exchange, is aiming to list next year. It's opted for New York due to the depth of the market and greater investor receptivity to growth stocks.
PAI Partners closes new $7.6bn fund, surpassing the target. (FS)
French buyout group PAI Partners said it had raised $7.6bn for its latest fund, surpassing its target despite difficulties in drawing new money by private equity groups. The fund will be invested in companies in Europe and North America and is about 40% larger than the predecessor fund, which closed at $5.45 in 2018, Reuters reported.
"This successful final close for PAI Partners VIII, at a size 40% larger than its predecessor in a challenging environment, reaffirms the confidence investors have in PAI's Real Economy strategy and our ability to perform consistently through the cycle," Richard Howell, PAI Managing Partner.
APAC
Australian pension fund AustralianSuper said on November 13 that it had rejected an "eleventh-hour" offer from a Brookfield-led consortium and its partner EIG to drop its opposition to their $10.5bn bid for Origin Energy and join the takeover, Reuters reported.
Australia's largest pension fund reaffirmed its intention to reject the bid at the shareholder meeting on November 23, hours after receiving the consortium's "unsolicited" offer. AustralianSuper said it was Origin Energy's largest shareholder but did not specify the size of its stake as it has done in previous releases.
Origin Energy is advised by Barrenjoey Capital Partners, Jarden, and Herbert Smith Freehills (led by Rebecca Maslen-Stannage). EIG is advised by JP Morgan and FGS Global (led by Kelly Kimberly). Brookfield Renewable is advised by Citigroup, Allens, and White & Case (led by Christopher Flynn). GIC is advised by SEC Newgate.
Thailand's telecommunications regulator approved the takeover of internet provider Triple T Broadband by Advanced Info Service, the country's biggest mobile phone operator, subject to certain safeguards to protect consumers, Bloomberg reported.
The National Broadcasting and Telecommunication Commission board voted by a majority to approve the deal on the evening of November 10, according to the regulator's statement. The board issued requirements to protect consumers, such as keeping the lowest-priced pre-merger package available and ensuring service quality and price packages are kept for five years from the date of consolidation.
Advanced Info Service is advised by Morgan Stanley.
BPEA EQT, an Asian investment firm headquartered in Hong Kong, offered to acquire Benesse, an education and nursing care provider, for JPY267bn ($1.76bn).
"Japan's education sector is growing, driven by an increasing demand for adult training and reskilling of its labor force, as well as increased demand for eLearning modalities in the K-12 segment. The nursing care sector is also growing, driven by demographic tailwinds of Japan's aging population. Together with the founding family, EQT aims to further accelerate Benesse's growth, leveraging its vast experience from developing education and elderly care platforms worldwide," BPEA EQT.
GQG Partners, an investment boutique that manages global and emerging market equities, and Regal Partners, an ASX-listed alternatives investment manager, are bidding to acquire Pacific Current Group, a multi-boutique asset management firm, for up to AUD567m ($360m).
Pacific, which serially invests in growing asset managers locally, has been the target of a bidding war between Regal Partners and GQG, with shareholder River Capital lobbying for Regal.
Macquarie-backed Vocus, an international telecommunications company, failed to acquire a 12% stake in the enterprise, government and wholesale assets from TPG Telecom, a telecommunications company, for $4.21bn.
The proposed transaction involved considerable complexity and, ultimately, the parties have been unable to reach alignment on the operating model and commercial terms for TPG to have sufficient confidence that a successful transaction can be agreed and executed.
Tencent inks deal to sell Meta's VR headset in China.
Meta Platforms has struck a deal with Tencent to sell a new, low-cost virtual-reality headset in China, as it tries to return to a market where Facebook and Instagram remain blocked, DealStreetAsia reported.
The preliminary deal will make Tencent the exclusive seller of Meta's headsets in China, adding that the Chinese video game maker will start selling the headset beginning in late 2024. Facebook, along with Twitter, were blocked by Beijing in mid-2009 following deadly riots in the western province of Xinjiang that authorities say were abetted by the social networking sites.
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