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AMERICAS
Officials from seven US states wrote to US antitrust enforcers to ask for Kroger's proposed $24.6bn acquisition of Albertsons to be stopped, Reuters reported.
In a letter to Federal Trade Commission Chair Lina Khan, the secretaries of state said that the deal would give a combined Kroger/Albertsons nearly a quarter of the US food retail market.
Albertsons is advised by Credit Suisse, Goldman Sachs (led by Timothy Ingrassia), Debevoise & Plimpton (led by Ted Hassi), Fried Frank Harris Shriver & Jacobson (led by Philip Richter), Jenner & Block, Wachtell Lipton Rosen & Katz (led by Zachary Podolsky and Adam Emmerich), White & Case (led by George Paul) and Brunswick. Financial advisors are advised by Alston & Bird (led by Stuart Rogers), Cravath Swaine & Moore (led by Robert I. Townsend and Sanjay Murti) and Davis Polk & Wardwell (led by Phillip R. Mills and Cheryl Chan). Kroger is advised by Citigroup (led by Brian Anton and David Finkelstein), Wells Fargo Securities, Arnold & Porter Kaye Scholer, Weil Gotshal and Manges (led by Michael J. Aiello) and Joele Frank (led by Tim Lynch and Steve Frankel). Cerberus is advised by Dechert (led by Eric Siegel and Mark Thierfelder) and FGS Global (led by Ronald Low).
Innovation Ventures-backed IV Media, an internet media company, completed the acquisition of operating assets from iMedia Brands, a media company, for $55m.
“On behalf of iMedia, I am pleased to announce the purchase of iMedia’s operating assets by IV Media. Under new ownership, both companies will be well positioned to grow and achieve great success together well into the future. With IV Media’s partnership, iMedia will continue delivering customers the diverse range of brands they desire through captivating content. Today’s announcement is a great outcome for iMedia, and I thank our valued team and partners for their continued support during this process,” James Alt, iMedia Chief Transformation Officer.
Innovation Ventures was advised by NewsMakers Media (led by Vince Bodiford). IV Media was advised by Greenberg Traurig and Oakland Law. iMedia was advised by Huron Consulting, Lincoln International, Pachulski Stang Ziehl & Jones, Ropes & Gray and C Street Advisory.
Supermarket chain operators ALDI and Fresco Retail Group, agreed to acquire the supermarket assets of Southeastern Grocers, a supermarket portfolio. The supermarket assets include Fresco y Más, Winn-Dixie and Harveys Supermarket. Financial terms were not disclosed.
“Our successful transformational journey has created a unique opportunity with leading partners who share our vision and common commitments to creating value for their customers. We believe these next steps will fuel a phenomenal experience for our customers, new opportunities for our associates and increased value for our shareholders. As the sales processes proceed, we’ll stay acutely focused upon delivering the exceptional quality, service and value that our customers and communities have come to expect from us," Anthony Hucker, Southeastern Grocers President and CEO.
ALDI is advised by Deutsche Bank, Baker McKenzie, Kayne Law Group and Zeno Group. Southeastern Grocers is advised by RBC Capital Markets, Kirkland & Ellis and Willkie Farr & Gallagher. Fresco Retail Group is advised by Rothschild & Co.
Grupo Financiero Ficohsa, a financial services conglomerate, agreed to acquire ASESUISA, an insurance broker from Grupo Sura, a financial services firm. Financial terms were not disclosed.
"The commitment to promote Central America is the engine that moves us as an organization and this acquisition brings us closer to that goal, consolidating us as one of the regional leaders in the field of insurance . We are committed to the social and sustainable development of El Salvador, through innovation and a customer-focused culture, elements that characterize us," Luis Atala, Financiero Ficohsa Corporate Vice President.
Financiero Ficohsa is advised by Morgan Stanley and Posse Herrera & Ruiz. Grupo Sura is advised by Alteon Partners, Lazard and Arias Fabrega & Fabrega.
BAE Systems, a company that develops, delivers, and supports advanced defense and aerospace systems, agreed to acquire the aerospace business of Ball, a company that operates in containers and packaging sector, for $5.55bn.
“This marquee acquisition would advance our company’s position in some of the fastest growing segments of the defense market and further increase our alignment with enduring customer priorities in both the US National Defense Strategy and US Intelligence Strategy. Ball Aerospace’s world-class products, capabilities and deep customer relationships would enhance our existing portfolio in areas including space, C4ISR and missile systems. We believe BAE Systems and Ball Aerospace share a culture of mission-driven innovation and operational excellence. We look forward to sustaining the historic legacy of Ball Aerospace and investing in its future,” Tom Arseneault, BAE Systems President and CEO.
Ball is advised by Morgan Stanley, Axinn Veltrop & Harkrider and Skadden Arps Slate Meagher & Flom (led by Shilpi Gupta and David Clark). BAE Systems is advised by Citigroup.
Truelink Capital, a private equity firm, agreed to acquire Flipp, a retail technology company. Financial terms were not disclosed.
"Today is an exciting day in the history of Flipp. Truelink is an accomplished partner and we feel humbled by the partnership. Looking forward, we see considerable opportunity and we plan to leverage this investment to drive greater innovation and accelerated growth. Our retail and CPG partners rely on Flipp to provide unparalleled digital distribution tools and we are devoted to ensuring we continue to deliver innovative solutions at a blistering pace. Our proprietary distribution platform offers our customers the scale and ROI they need to drive critical objectives. Truelink has validated our place in the market and will allow us to drive forward as a market leader. We are proud to be on this journey and excited to partner with Truelink," Michael Silverman, Flipp CEO.
Truelink is advised by RBC Capital Markets. Flipp is advised by Stifel and Stikeman Elliott.
Kian Capital Partners, a private equity firm, completed the acquisition of Meineke, a franchise-based international automotive repair chain. Financial terms were not disclosed.
“We are excited to launch the PARC Auto platform, furthering Kian’s experience in the automotive space alongside Kian portfolio companies T Sportline, Eastwood and Driven Lighting Group. Bryan Brown has an impressive team that has built a commanding presence across the Louisville market, and we look forward to expanding that leadership into new markets through new store openings and acquisitions. Meineke is well-positioned to be an industry consolidator with its highly recognizable and trusted brand supported by best-in-class franchisee resources provided by Driven Brands,” Caldwell Zimmerman, Kian Principal.
Kian Capital was advised by MiddleM Creative (led by Allie Gamble).
Allied Industrial Partners-backed CES Power, an equipment rental services company, completed the acquisition of Infinite Power, a supplier of temporary and emergency power and climate management solutions. Financial terms were not disclosed.
"We are very excited to add Infinite Power to the CES family. Their reputation for superior service and quality equipment will strengthen our position throughout the mid-Atlantic region. Jay and his team offer significant know-how that boosts CES Power and our affiliate CES Technologies' growth potential, and we look forward to working together," Greg Landa, CES Power CEO.
TFI International, a North American provider of transportation and logistics, completed the acquisition of JHT, an asset light logistics and transportation provider in North America for Class 6-8 truck manufacturers. Financial terms were not disclosed.
"We were immediately impressed by JHT’s well-run operations, its asset light approach and leadership in this differentiated niche market. We extend a warm welcome to CEO John Harrington and his impressive team and look forward to watching JHT thrive in the years ahead under the TFI International umbrella," Alain Bédard, TFI International Chairman, President and CEO.
JHT was advised by Morgan Stanley.
Stellantis, a multinational automotive manufacturing corporation, to invest $100m in Controlled Thermal Resources, a advanced stages of developing a battery-grade direct lithium extraction and conversion facility.
“This is a significant investment and goes a long way toward developing this key project,” Rod Colwell, Controlled Thermal CEO.
Paramount drops plans to sell BET Media stake.
Paramount Global dropped its plans to sell a majority stake in BET Media, which includes the VH1 and BET cable networks and BET+ streaming service. The company notified bidders on August 16 that it decided to end the sale process as a sale would not result in any meaningful deleveraging of its balance sheet, adding that Paramount had received bids for the stake ranging from around $2bn to $3bn, Reuters reported.
In March Paramount was mulling possible sale of a majority stake in BET, adding that the company hopes to maintain a minority stake to benefit from any value that might be unlocked by the transaction. Paramount believed BET, an entertainment brand focused on the Black community and culture, would attract substantial interest from Black investors or institutions.
India's JSW weighs majority stake in Teck coal unit.
JSW Steel is looking to form a consortium to bid for a majority stake in Teck Resources' steelmaking coal business, potentially rivaling an $8bn offer from commodities giant Glencore. Mumbai-based JSW is seeking partners for an offer to acquire a 75% interest in the asset, known as Elk Valley Resources, Bloomberg reported.
That's a marked shift in approach from July. JSW was interested in up to 20% of Teck's coal business. A deal could value the coal business at more than $8bn and JSW has been sounding out banks about financing for a potential offer. Deliberations are ongoing and there's no certainty an agreement will be reached.
ArcelorMittal weighs possible bid for US Steel.
ArcelorMittal, the world's second-largest steelmaker, is considering a potential offer for US Steel. The combination would reverse ArcelorMittal's retreat from the United States as a production base after it sold most of its operations to Cleveland-Cliffs in 2020 for $1.4bn to focus on growing markets such as India and Brazil, Reuters reported.
ArcelorMittal is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it. If it does launch a bid, it could mark the escalation of a bidding war that is already underway for US Steel, following rival offers from Cleveland-Cliffs and Esmark for more than $7bn.
TCW closes a $400m CLO fund. (FS)
Global asset management company, the TCW Group, has closed a $400m Collateralised Loan Obligation fund, TCW CLO 2023-2, which is secured primarily by broadly syndicated first lien loans. CLOs are managed within TCW's $70bn integrated global credit platform, and this new fund will be managed by Senior Portfolio Managers Drew Sweeney and Ken Toshima, PrivateEquityWire reported.
TCW recently entered into a strategic CLO equity investment partnership with Lakemore Partners, a private credit investment firm, to support the growth of its CLO platform. Jefferies served as placement agent and structuring agent.
EMEA
TPG Rise Climate, an infrastructure fund, agreed to acquire a majority stake in A-Gas, a company that is focused on supply and lifecycle management of refrigerants and associated products and services, from KKR, a global investment firm, and LDC, a private equity firm. Financial terms were not disclosed.
“We are thrilled to be taking the next step of our sustainability journey, and to be further scaling our Lifecycle Refrigerant Management operations, with the backing of TPG Rise Climate. We have a long history of being at the forefront of refrigerant gas recovery and reclamation, effectively lowering potential emissions to the atmosphere, and this investment from TPG is validation of our growth strategy and the quality of our products and services. We look forward to building on our success by executing a number of organic and inorganic growth initiatives,” Jack Govers, A-Gas CEO.
TPG Rise Climate is advised by Citigroup and Greenbrook (led by Michael Russell). A-Gas is advised by Goldman Sachs. KKR is advised by Simpson Thacher & Bartlett.
Insight, an IT services company, completed the acquisition of Amdaris, a software development company. Financial terms were not disclosed.
“With the business landscape in a constant state of change, IT products and services have become integral: every business must be digital now, and they must move quickly to achieve it. Organisations need a partner to advise, design, build and implement their future business models using technology, accelerating their digital journey. With Amdaris, Insight’s position as a leading Solutions Integrator will be enhanced, and clients will be provided with even more capabilities in application development and digital consulting. Amdaris clients in turn gain access to our deep expertise in cloud, data, AI, cybersecurity and intelligent edge, augmented by Insight’s longstanding relationships with more than 6k technology partners across the globe,” Adrian Gregory, Insight EMEA President.
Insight was advised by KPMG and TLT. Amdaris was advised by PCB Partners and Armstrong Teasdale.
Private equity firms Abu Dhabi Investment Authority and CapitalG, agreed to acquire a minority stake in TeamSystem, a software developer, from Hg Capital, a private equity firm. Financial terms were not disclosed.
“We firmly believe that TeamSystem is well positioned to continue to grow in both existing and new markets. This investment aligns with our approach of supporting market-leading software businesses that offer mission-critical solutions to their customer bases," Hamad Shahwan Aldhaheri, ADIA Executive Director of the Private Equities Department.
TeamSystem is advised by Barabino & Partners. Hg Capital is advised by Brunswick Group (led by Azadeh Varzi). Hellman & Friedman is advised by FGS Global (led by Chris Ryall and Alastair Elwen).
Accel-KKR, a private equity firm, agreed to acquire a minority stake in Ocuco, an optical retail software company, for €60m ($65m).
"We are excited to partner with Accel-KKR, given their expertise in practice management software and proven track record in scaling vertical SaaS companies in the US and globally. Accel-KKR's investment is not only a testament to our strong performance but a powerful endorsement that enhances our financial standing. We are well positioned to serve the full range of eyecare practices from independents to global chains that require a partner with the ability to deliver at scale," Leo Mac Canna, Ocuco Founder and CEO.
Impilo, a private equity firm, completed the acquisition of VaccinDirekt, a vaccination provider, from SEB Private Equity, a private equity firm. Financial terms were not disclosed.
“VaccinDirekt is the leading vaccination provider in a winning channel enjoying strong underlying growth, primarily driven by increased public awareness for vaccines, the enhanced focus on preventive healthcare, and a steadily growing pipeline of new vaccines. The Company is well-positioned to extend its leadership, leveraging its unparalleled quality, know-how, and customer focus, coupled with a large physical footprint in central locations, offering superior convenience and availability to its growing base of more than 1.4m registered customers. As a long-term and dedicated healthcare investor, Impilo is excited to support VaccinDirekt in driving a customer focused expansion of the platform as the company continues to increase availability of high-quality preventive healthcare services in the Nordics," Victor Steien, Impilo Partner.
Impilo was avised by SEB Corporate Finance.
Greenvolt, a Portugal-based energy production from residual forest biomass company, agreed to acquire a majority stake in Iberica Renovables, a PV cells manufacturer. Financial terms were not disclosed.
Through its renewables subsidiary Greenvolt Next, the company will buy stakes representing the majority of the respective share capital of Iberica Renovables. The deal is currently under review by the Portuguese Competition Authority.
Kumospace, a virtual office and virtual events software, agreed to acquire Kosy, a virtual office software. Financial terms were not disclosed.
"I'm super excited to join forces with Kumospace. Our combined strengths and shared vision open up incredible opportunities to redefine collaboration and communication for remote and hybrid teams. There's so much potential in this field, and I believe we're just scratching the surface," Yanis Mellata, Kosy CEO and Co-Founder.
EY rejects TPG plan to break up Big Four firm. (FS)
US buyout group had proposed to take a stake in consulting arm. EY has rejected a proposal from US private equity group TPG to break up the Big Four firm and take a stake in its consulting business. TPG wrote to EY in late July outlining its plan for a debt-and-equity deal to separate its consulting arm from the audit business, FT reported.
The pitch came just months after EY's own attempt to spin off the consulting business and seek a $100bn enterprise value for it in a stock market listing collapsed. The Financial Times on August 14 revealed the details of the approach, which offered to revive the break-up plan, code-named Project Everest, in a revised form. "We frequently receive inquiries from private equity firms and other investors expressing interest in parts of EY businesses. This was the case before Everest and will continue into the future," partners were told.
Dalian Wanda weighs sale of Olympics media rights manager Infront. (FS)
Dalian Wanda Group, owned by China's once-richest man Wang Jianlin, is seeking to sell its sports marketing unit Infront as financial pressure mounts on the property developer to shore up its finances. China's largest commercial property group has tapped Deutsche Bank for advice on the sale of Infront Sports & Media, adding the process is in the early stages and could take months to complete, Reuters reported.
Private equity firms are looking at Infront. The successful buyer is likely to be an investor with deep pockets because of the minimum guarantees the company is required to pay for sports rights. Headquartered in Switzerland, Infront's businesses include managing Italy's Serie A and the UK Premier League's international media rights, as well as event operations, media rights distribution and sponsorship sales. In June, Infront was awarded broadcast rights in 22 countries in Central and South East Asia for the Olympic Games from 2026 through 2032.
Credit Suisse secondaries exec to lead Eaton's new GP solutions business. (People, FS)
Eaton Partners has expanded its private capital advisory business with the recruitment a four-strong team from Credit Suisse led by Dirk Jonske, who will head up the capital placement agent and fund advisory firm's new GP solutions division. Prior to joining Eaton Partners as a Managing Director, Jonske was in Credit Suisse's Private Fund Group, where he was responsible for the origination and evaluation of private equity primary, secondary, and co-investment transactions, with a focus on providing strategic advice regarding continuation vehicles.
Before joining Credit Suisse, Jonske was an Executive Director in the Private Fund Group at UBS and a Senior Associate on the Private Equity Investment team at Landmark Partners, PrivateEquityWire reported.
APAC
India approved the merger of a local unit of Japan's Sony and India's Zee Entertainment, granting a key regulatory approval and clearing the
way for a $10bn TV tie-up, DealStreetAsia reported.
Zee Entertainment's shares were up 10% after the National Company Law Tribunal cleared the deal. The merger was announced in 2021 but has been delayed for multiple reasons.
Morrison & Co, a private equity firm, agreed to acquire a 50% stake in the crate pooling business of Pact Group, a packaging and material holding company, for $160m.
“We’ve been seeing increased demand from customers for a rapid scale up of our Crate Pooling offering as they look to operate more efficiently and sustainably in the circular economy. This new strategic partnership with Morrison & Co is a great outcome for our customers as it will accelerate the growth of the business and offer an expanded range of products and service, with Pact sharing in the upside," Sanjay Dayal, Pact CEO and Managing Director.
Pact Group is advised by Citigroup.
GQG Partners, an investment firm, completed the acquisition of an 8.1% stake in Adani Power, a power and energy company, for $1.1bn.
Adani Power is the largest private sector thermal power company in India and has one of the youngest and state of art fleet. About 80% of its capacity is super critical and latest units are ultra super critical.
Temasek, an investment company, and TPG, a private equity firm, completed the $80m investment in Dr. Agarwal's, a chain of eye specialty hospitals.
Dr. Agarwal's will invest over INR12bn ($145m) to set up new hospitals in India and 10 centers in the African countries of Kenya, Zambia, and Tanzania.
Korea flags risks in $56bn of overseas property funds.
Korea's financial regulator has a close eye on overseas real estate funds worth roughly $55.8bn, saying investments by individual investors are the most concerning. Financial Services Commission Vice Chairman Kim So-young said at a briefing in Seoul on August 17 that while institutions might get hit with losses, there wasn't systemic risk, Bloomberg reported.
He said 96% of the funds are held by institutional players. "What we're really worried about is the retail investor portion," worth $3.14bn, he noted. "If there is any kind of misconduct in terms of fund sales or anything like that, we're going to take a hard line on that." The comments come as red flags pop up in the global market for real estate finance, with South Korean investors looking particularly exposed to a downturn in the market for office blocks. On the domestic front, a credit union branch was forced to close earlier this year after customers pulled deposits due to concern about soured loans, just months after the default of a developer caused a credit crunch.
Chinese asset manager eyes restructuring to ease liquidity crunch amid contagion fears. (FS)
Faced with a liquidity crisis, Zhongzhi Enterprise Group will conduct a debt restructuring, the Chinese asset manager has told investors, as a deepening property sector downturn raises fears about spillover risks to the broader financial sector. Beijing-based Zhongzhi, which has sizable exposure to real estate, has stopped payment to investors in all investment products, its management told investors in a meeting on August 16, Reuters reported.
Zhongzhi's financial trouble is the latest challenge for Chinese authorities as they battle to contain a worsening property sector crisis and revive a faltering recovery in the world's second-largest economy. Morgan Stanley has become the latest among some of the major brokerages to cut China's growth forecast for this year. It now sees China's gross domestic product growing 4.7% this year, down from an earlier forecast of 5%. Asset managers like Zhongzhi raise hundreds of billions of dollars by selling shadow banking-linked and high-yielding investment products through trust and wealth management units, and have strong linkages with banks and other financial firms.
Australia's Telstra shelves InfraCo stake sale plan. (FS)
Australia's Telstra shelved plans on August 17 to sell a stake in its physical infrastructure unit, sending its shares about 2.5% lower, even as the telecom firm forecast higher underlying core earnings after a 14% jump in fiscal 2023 profit. The country's largest telecoms firm decided against selling a stake in InfraCo Fixed, saying the unit "plays an important role" in achieving its long-term goals, Reuters reported.
Shares of Telstra fell about 2.5% to AUD4.15 ($3), with Marcustoday Financial Newsletter analyst Henry Jennings saying the market was disappointed with the decision. "After thoroughly examining alternatives, we have concluded that the greatest value to be created for shareholders is by maintaining the current ownership structure of InfraCo Fixed, for at least the medium term," Vicki Brady, Telstra CEO.
Tyson Foods said to explore possible sale of China business.
Tyson Foods, the biggest US meat company, is exploring options including a potential sale of its China business. The process is at an early stage and some private equity firms have expressed initial interest in the business, Bloomberg reported.
Deliberations are ongoing and Tyson could still decide to keep the asset. As reported earlier the meat giant was planning to sell its poultry business and has hired Goldman Sachs to advise. Tyson established its first factory in China in 2001, and has a operations that span breeding, slaughtering, processing and distribution for chicken, cattle and pigs.
Australian $100bn pension fund targets private assets with London launch. (FS)
Australia's third-largest pension fund will officially open its first overseas outpost in London in November pushing for more private market investments as the sector outgrows the confines of home. Aware Super, with $102bn in assets, will set up in the district of St. James, popular with hedge funds and private equity firms, and plans to have a team of 14 by year end, according to Deputy Chief Investment Officer and Head of International Damien Webb, who will relocate to London in October.
Forecast to hit $162bn in assets by 2026, the fund plans to funnel "substantial" billions through the new office, which will initially focus on private equity, property and infrastructure in the UK, Europe and North America, Reuters reported.
Singapore's Growtheum Capital closes debut fund at $567m, a tad below target. (FS)
Singapore-based private equity firm Growtheum Capital Partners has secured the final close of its debut fund at $567m, just shy of its initial target of $600-800m. The fund close takes place amid a trying time for fund managers globally, who are receiving a cold reception from limited partners who have turned cautious since US public markets reversed last year, DealStreetAsia reported.
This has led to fund close delays and smaller fund sizes for many general partners in Asia and around the world. Growtheum's managing partner Amit Kunal acknowledged that its initial target of $600m was overly optimistic given the market conditions. "We were aggressively stupid when we started because we had never raised funds in our career. We are experienced dealmakers. Our last investment was our 35th or 36th. We have invested one-to-one in a company without a partner. (All) that comes naturally to us, but fundraising did not," Amit Kunal, Growtheum Managing Partner.
Private equity firm KV Asia closes second fund below target at over $200m. (FS)
Southeast Asia-focused private equity firm KV Asia Capital might have closed its second fund at slightly over $200m, even as the firm had set a target of $300m for the vehicle. Asia II raised $202m in May this year, according to a transaction logged by placement and advisory group Asante Capital on its website.
In February, the fund was likely to be closed in Q2 2023 at about $230-240m, after receiving commitments from several global fund-of-funds, endowments, family offices, and institutions from the US, Europe, and Asia, DealStreetAsia reported.
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