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AMERICAS
Two US senators will hold a hearing in November on Kroger's planned $24.6bn takeover of Albertsons that would highlight its impact on competition among grocery stores, Bloomberg reported.
Minnesota Senator Amy Klobuchar and Utah Senator Mike Lee, the top Democrat and Republican on the Senate Judiciary antitrust panel, expressed "serious concerns about the proposed transaction" in a statement announcing the hearing Tuesday.
Shell USA, a firm that explores and produces energy products, completed the acquisition of Shell Midstream Partners, a firm that owns, operates, develops, and acquires pipelines and other midstream, and logistics assets, for $1.96bn.
SHLX's units will no longer be listed on the New York Stock Exchange, and it will cease to be a publicly traded company.
Shell Midstream Partners was advised by Intrepid Partners and Gibson Dunn & Crutcher (led by Hillary Holmes). Intrepid Partners was advised by Hunton Andrews Kurth (led by G. Michael O'Leary). Shell USA was advised by Barclays, Evercore, Baker Botts (led by Joshua Davidson) and Richards Layton and Finger.
Private equity firms Bain Capital and Abu Dhabi Investment Authority completed the acquisition of Merchants Fleet, a fleet management services provider. Financial terms were not disclosed.
"The infusion of new capital affirms the merits of our core values and disruptive approach. While other providers grapple with the effects of a consolidating market—business interruption, systems integration, confusion and employee impacts—Merchants moves forward fearlessly at the vanguard of fleet and mobility with best-in-class solutions for fleet electrification, fueling technology and last mile. There's never been a better time to work for, or work with, Merchants," Brendan P. Keegan, Merchants Fleet CEO.
Merchants Fleet was advised by BNP Paribas, Broadhaven Capital Partners and WilmerHale (led by Joseph Conahan and Andrew P. Alin). ADIA was advised by Gibson Dunn & Crutcher (led by Kathryn Kelly). Bain Capital was advised by Davis Polk & Wardwell (led by Michael Davis) and Stanton PRM (led by Charlyn Lusk). Debt financing was provided by BNP Paribas.
Berkshire Hathaway, an American multinational conglomerate holding company, completed the acquisition of Alleghany, a private equity firm, for $11.6bn.
“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years. Throughout 85 years the Kirby family has created a business that has many similarities to Berkshire Hathaway. I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon,” Warren E. Buffett, Berkshire Hathaway Chairman and CEO.
Ginkgo, an American biotech company, completed the acquisition of Zymergen, an American biotechnology company, for $300m.
"We have always had incredible respect for the Zymergen team and the strength of the technologies that they have built for cell programming. We are thrilled to integrate Zymergen's capabilities into our Foundry, which we expect to accelerate the growth of our platform as we continue to deliver on our mission to make biology easier to engineer for our customers, helping us drive down the costs of cell programming as we invest in scale. We can't wait to welcome Zymergen's technical teams, who will support our scaling objectives," Jason Kelly, Ginkgo Bioworks CEO and co-founder.
Zymergen was advised by Cowen & Company and Freshfields Bruckhaus Deringer (led by Joseph Halloum). Cowen & Company was advised by Shearman & Sterling (led by Michael Dorf). Ginkgo Bioworks was advised by Allen & Company and Ropes & Gray (led by Suni Sreepada). Allen & Company was advised by White & Case (led by Denise A. Cerasani).
EW Healthcare Partners, one of the largest and oldest private healthcare investment firms, completed the acquisition of Germfree Laboratories, a manufacturer of turnkey, mobile and modular cleanrooms and biocontainment facilities. Financial terms were not disclosed.
"There is an increasing demand for mobile and modular cleanrooms in biopharma to keep pace with new technologies and platforms, capacity constraints and the demand for flexible solutions that are delivered quickly. Germfree is addressing this demand for cleanrooms by designing and manufacturing advanced solutions for specialized and flexible cGMP-compliant manufacturing space. We look forward to working with Kevin and his team to further accelerate the company's growth into the fast-growing ATMP (advanced therapy medicinal products) sector," Evis Hursever, EW Healthcare Partners Managing Director.
Germfree Laboratories is advised by Jefferies & Company and Holland & Knight. EW Healthcare Partners is advised by Alvarez & Marsal, Boston Consulting Group and Kirkland & Ellis.
City Holding Company, a financial holding company, agreed to merge with Citizens Commerce Bancshares, a bank providing financial and banking services, for $61m.
“Partnering with City is the next, best step that we could take for our company, shareholders and customers. This partnership will provide our customers with additional resources while retaining the community banking culture that sets us apart. I am confident that this will be a seamless transition for our employees and customers while providing long-term value for our shareholders. City is a great franchise, and I look forward to the future ahead for our combined company,” Michelle Oxley, Citizens President & Chief Executive Officer.
Citizens is advised by Forvis Capital Advisors, Hovde Group and Wyatt Tarrant & Combs. City Holding is advised by Piper Sandler and Dinsmore & Shohl.
Odyssey Investment Partners, a private equity firm, agreed to acquire Magna Legal Services, a litigation support services provider, from CIVC Partners, an investment company. Financial terms were not disclosed.
“We chose to partner with Odyssey because of the firm’s extensive track record of supporting management teams looking to further drive growth and expand their businesses. Over the last fifteen years, we have been able to scale our business both organically and through a proven acquisition platform. Odyssey shares our vision for the future, and we are eager to leverage their team’s deep expertise and resources as we continue to execute on our ambitious business plan and build the premier firm in the legal services market. We would like to thank CIVC for their partnership over the past several years. We have achieved sustained success with their support, investment, and insights,” Mark Williams, Magna CEO.
Magna is advised by Harris Williams & Co and Ropes & Gray. Odyssey is advised by Houlihan Lokey, Latham & Watkins and Gasthalter & Co (led by Mark Semer).
Apollo, a high-growth, global alternative asset manager, and Migdal Insurance, an Israeli insurance and pension company, agreed to invest $600m in Doral Renewables, a renewable energy and storage developer.
"We're pleased to support Doral's growth as the company continues to execute on its robust project pipeline. By continuing to scale and bring additional renewable energy facilities online, Doral will enhance grid stability in markets across the country while creating jobs in local communities and promoting a cleaner planet," Dylan Foo, Apollo Head of Infrastructure.
Doral Renewables is advised by Bank of America, Guggenheim Partners and Kirkland & Ellis. Apollo is advised by Allen & Overy.
The Standard, an American insurance and financial company, agreed to acquire the retirement plan recordkeeping business of Securian Financial, a mutual holding company that provides a range of financial products and services. Financial terms were not disclosed.
"We have been studying retirement plan growth opportunities in the US market for some time, and Securian Financial stood out as a like-minded partner focused on customer-first service and deep relationships with plan sponsors and key distribution partners alike. We look forward to a bright future and to welcoming Securian Financial's Retirement Solutions employees, sales team and management to The Standard," Dan McMillan, The Standard President and CEO.
The Standard is advised by PJT Partners and Locke Lord. Securian Financial is advised by Goldman Sachs and Eversheds Sutherland.
Koch Industries, an American privately held multinational conglomerate corporation based in Wichita, Kansas, completed a $252m investment in Compass Minerals, a global provider of essential minerals.
"We are pleased to welcome KM&T as our investment partner and look forward to leveraging their deep expertise and proven track record of building value. Securing funding to aggressively pursue phase one of our lithium growth opportunity has been an important focus for our management team. This strategic investment will help drive our lithium project forward, strengthen our balance sheet and enhance execution capabilities across our entire platform," Kevin S. Crutchfield, Compass Minerals President and CEO.
Compass Minerals was advised by Perella Weinberg Partners and Cleary Gottlieb Steen & Hamilton. Koch was advised by Jones Day (led by Bryan E. Davis and Peter Devlin).
Darling Ingredients, a service provider for efficient used cooking oil recycling and sanitary fat and bone pickup, agreed to acquire Gelnex, a global producer of collagen products, for $1.2bn.
"Driven by strong growth in demand for collagen products in the global health and nutrition market, we anticipate the collagen peptides market to double in the next five years. Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increases our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide," Randall C. Stuewe, Darling Ingredients Chairman and CEO.
Darling Ingredients is advised by Morgan Stanley.
The Riverside Company, a global private investor focused on the smaller end of the middle market, completed the investment in OutSolve, a provider of outsourced labor and employment compliance solutions. Financial terms were not disclosed.
"We are excited to partner with the OutSolve team. The company's end markets are supported by strong regulatory tailwinds as well as the broader corporate move towards DE&I, ESG and social responsibility, which are all critically important. These fundamentals provide a robust platform for growth as we look to expand into adjacent service offerings and new end markets," Drew Flanigan, Riverside Partner.
The Riverside Company was advised by Jones Day (led by Lisa Lathrop).
Vaco, a talent solutions firm, completed the acquisition of BVOH, a search and consulting firm. Financial terms were not disclosed.
“Since founding BVOH, we have worked tirelessly to create a best-in-class client and candidate experience as well as an environment where our teams love what they do and where they do it. Vaco provides a perfect platform to amplify that culture and create new opportunities for success for both our employees and our clients. I am thrilled with this exciting next phase of our business and can’t wait to see what the future holds for BVOH as a part of the Vaco family,” Leslie Boudreaux, BVOH Managing Partner.
Vaco was advised by Full Tilt Consulting.
Scalar, independent valuation firm for tax, financial reporting, transaction advisory, and litigation purposes, completed the acquisition of the valuation division of GuideCap Partners, a middle-market investment bank. Financial terms were not disclosed.
“This acquisition is a win-win for everyone—companies, employees and private equity firms. We can now focus exclusively on our core investment banking business. We have great respect for Scalar and share similar values of excellence and customer service. We know our valuation employees and customers are in excellent hands," Kevin Ainsworth, GuideCap Partners Founder and Managing Partner.
FMI, a provider of investment banking and consulting services, completed the acquisition of SLATE Partners, an investment banking company. Financial terms were not disclosed.
"We are thrilled to welcome the SLATE Partners team to FMI Capital Advisors. We admire the firm Aaron and Jason have built, and our two firms share a commitment to exclusively serving clients across the built environment. Together, we have more than 50 investment banking professionals providing sell-side M&A and ESOP advisory services to clients across the built environment and throughout the United States and Canada," Chris Daum, FMI Corporation CEO.
Enteractive Media, a gambling-focused media company, agreed to go public via merger with Parsec Capital Acquisitions, a special purpose acquisition corporation. Financial terms were not disclosed.
"We are excited to have Enteractive for this business merger and look forward to consummating this transaction. We believe that, with the value proposition Enteractive brings to this transaction, it is well-positioned for substantial growth and sustainability. We view the transaction valuation as highly attractive to investors. We believe that through our merger, coupled with the management's background we have the potential to create significant value for shareholders," Patricia Trompeter, Parsec Chairperson and CEO.
SurveyMonkey owner Momentive Global considers a sale.
SurveyMonkey owner Momentive Global is weighing a sale after getting takeover interest, Bloomberg reported.
The San Mateo, California-based company is working with a financial adviser. No final decision has been made and Momentive could opt to remain independent.
TC Energy could divest keystone oil pipeline.
TC Energy could sell billions of dollars of assets to help fund projects in Mexico and Western Canada and may even seek the divestiture of its Keystone oil pipeline to the Gulf Coast, Bloomberg reported.
The Canadian company may look to monetize its liquids pipelines as well as smaller gas pipelines with targeted proceeds of as much as $2.9bn, RBC Capital Markets analyst Robert Kwan said in a note citing a recent meeting with TC’s Chief Financial Officer Joel Hunter.
Beauty giant Natura weighs Aesop IPO after $12bn stock rout.
Brazilian cosmetics maker Natura is assessing options to unlock value at its high-end brand Aesop as the company seeks to restore investor confidence following a 76% stock plunge over the past 15 months. The shares rebounded as much as 18%.
The Sao Paulo-based company will start studies for a possible initial public offering of Aesop, or a spinoff that could be followed by a public offering. The announcement prompted JP Morgan Chase to upgrade Natura shares to overweight from neutral, Bloomberg reported.
Missouri pulls $500m from BlackRock over asset manager's ESG push. (FS)
Missouri has pulled $500m out of pension funds managed by BlackRock, state Treasurer Scott Fitzpatrick said, accusing the asset manager of prioritizing environmental, social and governance over shareholder returns.
Several Republican-led states have sought to cut business ties with BlackRock over its ESG push, with Louisiana earlier this month saying it would pull $794m out of the company's funds, Reuters reported.
JP Morgan launches fundraising platform to lure startups. (FS)
JP Morgan Chase is launching a platform that aims to connect startup founders with venture capital investors to simplify the fundraising process, Reuters reported.
The new platform, Capital Connect, focuses on serving the financing needs of startups from their early stages, marking the ambition of the biggest US bank by assets to further expand into the private market and build a founder-friendly brand in Silicon Valley.
Moelis hires former Morgan Stanley bankers for healthcare dealmaking. (People)
Moelis has hired two former Morgan Stanley bankers, Arek Kurkciyan and Dennis Crandall, as managing directors to help drive dealmaking in the life sciences and outsourced pharmaceutical services sectors for the investment bank.
Kurkciyan and Crandall will start their new roles in late November and be based in New York. Both Kurkciyan and Crandall were managing directors in the healthcare investment banking unit at Morgan Stanley, Reuters reported.
EMEA
WSP Global, an environmental consulting company, announced the lapse of its off for RPS Global, a global professional services firm of consultants and service providers. WSP was engaged in a bidding war against Tetra Tech, a provider of high-end consulting and engineering services, which is set to acquire RPS for £636m ($720m).
"WSP Global continues to value a disciplined approach to acquisitions to maximise shareholder value. With a strong balance sheet, WSP Global remains confident on its ability to capture opportunities and execute on its strategic ambitions," WSP.
Digital 9 Infrastructure, an investor in the infrastructure of the internet, completed the acquisition of a 48% stake in Arqiva, a wireless infrastructure provider of television and radio broadcasting services, from Canada Pension Plan Investment Board, an investment management firm, for £300m ($340m).
"We believe the safe and reliable access to data and content across multiple devices and the closer connectivity between broadcasters, utilities and their customers will contribute to the UK's sustainable economic development. Arqiva is a long-standing trusted communications infrastructure operator in the UK and complements our investment mandate to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. Arqiva expands the Company's exposure to wireless networks and will support the Company's total return and yield targets as we continue to build a high-quality portfolio of scalable platforms and technologies," Phil Jordan, Digital 9 Infrastructure Chair.
Private equity firm KPS Capital Partners' German aluminium smelter Speira is set to gain EU antitrust approval for its plan to buy aluminium recycler Real Alloy Europe with its offer to sell two plants to address EU concerns, Reuters reported.
"The integration of Real Alloy Europe into Speira will accelerate our strategy of creating closed loops from scrap to final product and back. We look forward to investing further in Speira's and Real Alloy Europe's combined capabilities to meet the market's demand for sustainable and circular solutions. Following the acquisition, Speira will continue to focus on delivering third-party recycling services to existing and new customers of Real Alloy Europe. We will be serving the whole European aluminium industry, working closely with customers across the value chain," Einar Glomnes, Speira CEO.
TransPerfect, a provider of language and technology solutions for global business, completed the acquisition of Hiventy Group, a company which is providing high-end technical solutions to the entertainment industry. Financial terms were not disclosed.
"Being part of a much larger, successful global enterprise will provide increased growth opportunities for our business and employees as well as access to new markets. For our customers and users, Hiventy will continue to deliver the same premium solutions and service excellence they expect from us, supplemented by the sizable global resources TransPerfect can now provide," Bertrand Chalon, Hiventy Executive Vice President.
TransPerfect was advised by Baker Botts (led by Lee D. Charles) and Gide Loyrette Nouel.
Beeline, a technology solution provider, agreed to acquire Utmost, a next-generation extended workforce solutions company. Financial terms were not disclosed.
"The future of work is powered by technology that unlocks the potential of every worker, regardless of classification. We have a disciplined history of only acquiring companies that are rightful technology leaders that will deliver further value to our customers. The Utmost acquisition is particularly exciting in that it complements and accelerates our strategic roadmap and delivers clever and unique solutions to our customers on day one," Doug Leeby, Beeline CEO.
Beeline is advised by ClearEdge Marketing.
Sistema, a publicly traded Russian investment company, agreed to acquire a 47.7% stake in Melon Fashion Group, a Russian fashion manufacturer and retailer, from Swedish investors Eastnine and East Capital Holding for $256m.
"Melon Fashion Group is growing fast and demonstrating operational excellence. The Transaction is entirely in line with our investment strategy, which is focused on consolidating high-quality assets as well as leveraging opportunities arising from the ongoing market transformation. With our extensive experience in building leaders in Russian retail, we will be delighted to take part in the next stage of Melon Fashion Group's development and to play a role in further increasing the value of its business," Tagir Sitdekov, Sistema President.
Octopus Energy, an energy company, and Nexta Capital Partners, a Milan-based renewables developer, agreed to form a joint venture, to create 1.1GW of new onshore wind, solar farms and energy storage in the south of Italy. Financial terms were not disclosed.
“The partnership with Octopus represents a further step towards the consolidation of our growth objectives within the renewable energy industry. We aim to play a leading role with Octopus in the energy transition process,” Fabrizio Caputo, Nexta Co-Founder and Managing.
Qatar in talks to invest $2.5bn in Egypt to expand support. (FS)
Qatar is in advanced talks to buy around $2.5bn of state-held stakes in Egypt’s biggest mobile network operator and other companies, as the North African nation lines up funding to cope with the economic fallout of Russia’s invasion of Ukraine.
Under the potential pact, which is expected to be finalized by the end of this year, Qatar Investment Authority would acquire 20% in Vodafone Egypt from Telecom Egypt. The QIA is the Gulf state’s sovereign wealth fund and oversees an estimated $445bn in assets, Bloomberg reported.
Enel to sell stake in its grid services unit to CVC. (FS)
Italy's biggest utility Enel is in advanced talks to sell a stake in its grid services unit to private equity firm CVC, Reuters reported.
Under the agreement, which could be signed in the next few days, CVC would buy a stake of 50% in Enel's Gridspertise unit. The sale is part of Enel's broader strategy dubbed 'stewardship business model' under which the Italian group aims to attract investments from partners to jointly develop some of its businesses in the areas of renewable energy, electrification or services.
MTN abandons talks to buy South Africa's Telkom.
MTN Group, Africa's largest mobile network operator, walked away from talks to buy Telkom, a deal that would have created South Africa's largest mobile-phone operator. Telkom shares sank the most since 2009, wiping out about a fifth of their market value, Bloomberg reported.
MTN ended early-stage discussions because Telkom couldn't assure the bigger telecom company that talks were exclusive, Telkom said in statement on Wednesday. MTN hadn't yet made a binding offer and the talks hadn't progressed to due diligence.
Elliott takes a stake in Fresenius. (FS)
Investment firm Elliott Investment Management has taken a stake in Fresenius, with a view to potentially untangling the sprawling health-care company, Bloomberg reproted.
The Paul Singer-led firm has a substantial position in Bad Homburg, Germany-based Fresenius. It hasn't yet crossed the 3% disclosure threshold under German securities rules.
CQS and Napier Park take on Elliott with rival bid for Matalan. (FS)
CQS and Napier Park are among five funds preparing to take on Elliott Investment Management with a rival bid for struggling UK discount fashion retailer Matalan, Bloomberg reported.
The funds hold a majority of the retailer's £80m ($91m) junior debt and are fine-tuning a pitch that will include converting their debt into equity and fully repaying existing creditors.
BNP Paribas hires Barclays to sell South African financial unit.
BNP Paribas hired Barclays to sell South African financial-services business RCS as part of a wider scaling back on the continent.
The Paris-based lender started a formal process to dispose of the credit and financial-services provider that operates across South Africa, Namibia and Botswana, Bloomberg reported.
Credit Agricole, AXA to bid this week for Banco BPM's insurance deal.
France's AXA and Credit Agricole are set to submit by the end of the week binding bids for an insurance deal with Italy's Banco BPM after emerging as the lead contenders in the race, Reuters reported.
The accord to distribute non-life products through the branches of Italy's third-largest bank is worth around €300m ($296m).The price tag was higher before Banco BPM in August decided to hold onto its life insurance business, after acquiring full control of the venture by buying out its previous partner Covea.
Spain’s Enagas considers asset sales to fund gas pipeline build out.
Spanish gas network operator Enagás may eventually sell assets, including its stake in Tallgrass Energy, to fund pipelines needed to cut Europe’s dependence on Russian fuel, Bloomberg reported.
While the company can maintain its dividend policy through 2026 and fund the €1.3bn ($1.3bn) of capital expenditure in its strategic plan, toward the end of the period it will need something more, Chief Executive Officer Arturo Gonzalo said. Those finances will be needed to build gas pipelines from Spain to France and Italy.
Credit Suisse looks for capital from Mideast. (FS)
Credit Suisse Group has approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds are looking at the scandal-hit Swiss bank's businesses as potential investment opportunities.
Abu Dhabi and Saudi Arabia were weighing up, through their sovereign wealth funds, whether to put money into Credit Suisse's investment bank and other businesses. An investment would be to take advantage of low valuations, Reuters reported.
Abu Dhabi transfers Etihad Aviation Group to wealth fund ADQ. (FS)
Abu Dhabi sovereign wealth fund ADQ said the government had transferred full ownership of Etihad Aviation Group to the fund, Reuters reported.
"The transfer of EAG complements ADQ's efforts to transform Abu Dhabi into a global aviation hub anchored in end-to-end airport service excellence," ADQ.
Dubai’s DEWA falls below IPO price as growth woes hit mood.
Shares in Dubai’s main utility dropped below their initial public offering price for the first time, six months after the company raised $6.1bn in the city’s biggest-ever listing, Bloomberg reported.
Dubai Electricity and Water Authority fell as much as 2.8% to AED2.47 ($0.67), compared with the IPO price of AED2.48 ($0.675), as the stock traded without rights to the next dividend. More than 6.5m shares were traded, with the average volume on the stock dwindling since it went public.
APAC
Luna Estate, a wine company based in Martinborough, New Zealand, agreed to acquire Dry River Wines, one of New Zealand's premier wine producers. Financial terms were not disclosed.
"While my family's deep love and commitment to New Zealand remains strong, the last couple of Covid years gave us the chance to refocus and consolidate our business interests. It became evident that tourism, hotels and their restaurants, and golf were our core New Zealand businesses," Jay Robertson, Dry River Wines Owner.
CPE taps Credit Suisse for sale of China’s Hairology. (FS)
CPE is reviving a sale of Chinese hair treatment chain Zhuhai Hairology after halting the process during the pandemic, Bloomberg reported.
The buyout firm is working with Credit Suisse Group and is reaching out to possible buyers. A deal for Hairology could fetch between $300m and $400m.
Credit Suisse’s loan portfolios attract Japan’s biggest lender.
Mitsubishi UFJ Financial Group is evaluating an acquisition of some loan portfolios from Credit Suisse Group to expand its business in the US, Bloomberg reported.
Japan’s biggest lender is also vetting bundles of the Swiss bank’s global loans in sectors including aviation and pension funds. MUFG has held initial discussions with potential advisers.
Sunshine Insurance seeking HKEX nod for $1bn IPO soon.
China’s Sunshine Insurance Group is planning to seek Hong Kong stock exchange approval for its initial public offering as soon as next week.
The Beijing-based company may start gauging investor demand once approval is obtained and seek a listing as soon as November. The insurer could raise about $1bn in the first-time share sale, Bloomberg reported.
PAG-backed Indian wealth manager weighs $362m debt fund. (FS)
Edelweiss Wealth Management, backed by Hong Kong-based private equity fund PAG, is looking to raise about INR30bn ($362m) for a new venture debt fund, Bloomberg reported.
Edelweiss Crossover Yield Opportunities Fund will focus on lending to new age or high-growth companies in India that count private equity firms and venture capital funds as investors, according to Pranav Parikh, managing partner and head of private equity at Edelweiss Wealth.
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