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AMERICAS
The Washington State attorney general is planning to file a lawsuit to block supermarket chain Kroger's proposed $24.6bn acquisition of smaller rival Albertsons.
The proposed merger has drawn the ire of US lawmakers and an investigation by the FTC due to antitrust concerns, with worries piling up that the deal would lead to higher prices for consumers, store closures and loss of jobs. While Kroger has proposed to divest 413 stores to C&S Wholesale Grocers to get regulatory approval, lawmakers argued the sale would not address harm to consumers, workers, and the grocery industry, Reuters reported.
Albertsons is advised by Credit Suisse, Goldman Sachs, Debevoise & Plimpton, Fried Frank Harris Shriver & Jacobson, Jenner & Block, Wachtell Lipton Rosen & Katz, White & Case and Brunswick Group. Credit Suisse and Goldman Sachs are advised by Alston & Bird, Cravath Swaine & Moore and Davis Polk & Wardwell. Kroger is advised by Citigroup, Wells Fargo Securities, Arnold & Porter Kaye Scholer, Weil Gotshal and Manges and Joele Frank. Cerberus is advised by Dechert and FGS Global.
BlackRock, an American multinational investment company, agreed to acquire Global Infrastructure Partners, an independent infrastructure fund manager, for $12.5bn.
"Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy. We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors. Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure technologies and projects," Laurence D. Fink, BlackRock Chairman and CEO.
Global Infrastructure Partners is advised by Evercore. Debevoise & Plimpton and Kirkland & Ellis (led by Daniel Lavon-Krein and Christopher Gandia). BlackRock is advised by Perella Weinberg Partners, Fried Frank Harris Shriver & Jacobson and Skadden Arps Slate Meagher & Flom (led by David Hepp and Brian Breheny).
Summit Materials, a building materials company, completed the merger with Cementos Argos, a Colombian construction materials producer, in a $3.2bn deal.
"Combining Argos USA with Summit is a significant milestone as we execute against and accelerate our materials-led portfolio strategy. The transaction will extend our geographic reach into high growth markets, creating a leading cement enterprise nationwide, and bring together two talent-rich organizations to innovate and deliver value-added solutions for our customers. Financially, we have clear line of sight to achieving targeted synergies of more than $100m annually as we unlock the full potential of this powerful combination," Anne Noonan, Summit Materials President and CEO.
Summit Materials was advised by Morgan Stanley, Davis Polk & Wardwell, Davis Graham & Stubbs and Joele Frank (led by Andrew B. Siegel and Jed Repko). Cementos Argos was advised by JP Morgan and Sullivan & Cromwell. Debt financing was provided by Morgan Stanley.
CCMP Growth Advisors, a private equity investment firm, agreed to invest in Innovative Refrigeration Systems, a manufacturer of industrial refrigeration equipment. Financial terms were not disclosed.
"Innovative is an outstanding, high growth business with a talented, dedicated management team, exactly the type of business with which CCMP Growth seeks to partner. From our experience investing in the food production and distribution value chain, we understand how critical uptime and efficiency are to Innovative's customer base, particularly as regulatory and cost pressures drive the replacement of older capacity. We are excited to partner with Mike McGinnis and the outstanding team at Innovative to support their service and software growth and expansion plans, and look forward to working again with Tom Goeke on the board to support this strategy," Mark McFadden, CCMP Growth Co-Managing Partner.
Innovative Refrigeration Systems is advised by Stifel and Klehr Harrison Harvey Branzburg. CCMP Growth is advised by Current Capital, Ropes & Gray and FGS Global.
Budget hotel operator Wyndham Hotels & Resorts said it has received a second request from the US Federal Trade Commission seeking more information related to a $9.8bn takeover offer by Choice Hotels.
Wyndham in December requested its shareholders to reject the hostile bid launched by Choice in October, citing lower valuation and a long regulatory review. Wyndham has repeatedly highlighted that the offer undervalues its business and carries regulatory risks. It has also pointed to a combined company's likely high debt level, as well as the slower growth prospects of Choice's business, Reuters reported.
"The second request, which is issued in only around 1% of deals reviewed by the FTC, marks the start of a complex, lengthy process... with an uncertain outcome and no guarantee of closing," Stephen Holmes Wyndham Chairman.
Choice Hotels is advised by Goldman Sachs, Moelis & Co, Wells Fargo Securities and Willkie Farr & Gallagher.
J.F. Lehman & Company-backed Crystal Clean, a provider of specialized environmental and waste management solutions, completed the acquisition of Envirosafe Services of Ohio, a waste disposal and treatment services provider. Financial terms were not disclosed.
"The acquisition of Envirosafe immediately enhances our hazardous waste infrastructure and processing capabilities, and will allow us to better support our growing customer base. We are pleased to welcome Envirosafe's team members into Crystal Clean," Glenn Shor, Crystal Clean Chairman.
Envirosafe is advised by Houlihan Lokey and Eastman & Smith. Crystal Clean is advised by Shearman & Sterling.
Southfield Capital-backed Alba Wheels Up, a provider of customs brokerage, freight forwarding, trade compliance and other logistics services, completed the acquisition of John A. Steer, a provider of customs brokerage, logistics and transportation solutions. Financial terms were not disclosed.
"This acquisition marks a significant milestone for Alba as we continue to expand our footprint in the customs brokerage and broader logistics sector. We are excited to welcome the talented team from Steer. Our combined expertise and resources will create a powerhouse of global customs brokerage and logistics services. Clients of both Alba and Steer can expect an enhanced and seamless experience," Damien Stile, Alba CEO.
Alba Wheels Up was advised by G2 Capital Advisors and Finn Dixon & Herling.
CoinShares, a crypto-focused investment firm, agreed to acquire Valkyrie Funds, a digital asset manager's investment advisory business. Financial terms were not disclosed.
"Since our inception in 2014, CoinShares has consistently led the European digital asset industry, setting benchmarks for transparency and investor protection with its regulated digital asset products. Our expertise has enabled us to dominate the European market, commanding over 40% of all assets under management in crypto ETPs. Exercising our option to acquire Valkyrie Funds aims at extending our European success in the US, offering unparalleled access to regulated digital asset products to American investors. This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space," Jean-Marie Mognetti, CoinShares CEO.
CoinShares is advised by M Group Strategic Communications.
Zendesk, a provider of software-as-a-service products, agreed to acquire Klaus, an AI-powered quality management platform. Financial terms were not disclosed.
"Zendesk and Klaus share a vision of AI-led, personalized CX with businesses fully anticipating and acting on their customers' needs. QA software plays a critical role in this, ensuring consistency, assessing both human and digital agent performance and providing actionable insights for strategic planning. As part of Zendesk, we will continue to build and deliver these crucial capabilities, but now at an even greater scale," Martin Kõiva, Klaus Founder and CEO.
Klaus is advised by Willkie Farr & Gallagher.
New York Life Investment Management, an investment management firm, agreed to acquire a minority stake in Bow River Advisers, a private alternative asset management company. Financial terms were not disclosed.
"New York Life Investment Management has been committed to providing quality alternative investment solutions to our clients for more than two decade. This partnership with Bow River Advisers, an innovator in providing high-quality private equity exposure in an investor-friendly structure, will allow us to provide a more differentiated product offering to our clients, while providing additional support to the Fund's existing client base," Kirk Lehneis, NYLIM Chief Operating Officer.
NYLIM is advised by Debevoise & Plimpton.
Allient, a designer and manufacturer of precision and specialty motion, controls and power products and solutions for targeted industries and applications, completed the acquisition of SNC Manufacturing, a designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy. Financial terms were not disclosed.
"SNC is a solid addition to our Allied Power pillar. In addition to extending our capabilities in the clean power industry, SNC will provide us broader and deeper reach into industrial automation, defense, medical and in the energy and alternative energy markets. The business will also provide expanded opportunities to leverage sales channels and, additionally, we will gain much-needed manufacturing capacity and expertise to further grow our power quality business. And lastly, we are confident that through the utilization of Allient Systematic Tools we are in a good position to leverage our expertise to drive productivity and margin improvements over time," Richard S. Warzala, Allient Chairman, President and CEO.
CardioFocus, a medical device company dedicated to advancing ablation treatment for cardiac arrythmias, completed the acquisition of the electrophysiology technology division from Galvanize Therapeutics, an energy-based medical device technology. Financial terms were not disclosed.
"We look forward to welcoming Centauri users in the EU and recognize the important contribution these clinicians have made to our understanding of focal pulse field ablation. Through this acquisition we will expand our presence in Europe and the UK while supporting and growing our global HeartLight X3 and Centauri customer bases. We are dedicated to improving patient outcomes and optimizing clinical workflow. This acquisition strengthens our leadership position as we innovate the next generation of pulsed field technologies for both focal and true single shot ablation," Steve Ogilvie, CardioFocus CEO.
CardioFocus was advised by Westwicke.
Obayashi, a construction and infrastructure developer, agreed to acquire MWH, a water infrastructure contractor. Financial terms were not disclosed.
"Joining forces with Obayashi enables MWH to reach our short- and long-term goals of organizational growth, excellence in client service, and the continued development of some of the best construction professionals in the USA," Blair Lavoie, MWH President and CEO.
Nexa3D, a manufacturer of 3D printers, completed the acquisition of Essentium, a prominent manufacturer of HSE 3D printers and materials. Financial terms were not disclosed.
"We are honored and thrilled to welcome the talented Essentium team to Nexa3D. This acquisition is more than a strategic move; it's a testament to our shared vision to drive innovation and deliver solutions that redefine the production capabilities of 3D printing," Avi Reichental, Nexa3D Co-founder, Chairman, and CEO.
Cvent, a meetings, events, and hospitality technology provider, completed the acquisition of Jifflenow, a B2B meeting scheduling automation platform, and iCapture, a trade show and event lead capture technology company. Financial terms were not disclosed.
"Over the past nearly 25 years, we've helped power global meetings and events programs, and these acquisitions highlight our continued commitment to innovation and delivering the best-in-class solutions our customers need to drive their businesses forward. We've known and respected Hari and Brady since the inception of both Jifflenow and iCapture, and we are extremely excited to welcome their teams to Cvent," Reggie Aggarwal, Cvent CEO and Founder.
Torque Capital Group-backed Cablecraft Motion Controls, a manufacturer of control cable fittings and hardware to create motion control solutions, completed the acquisition of the wholesale distribution and custom manufacturing service businesses of Instrument Sales & Service, a manufacturer of household appliances and electrical and electronic products. Financial terms were not disclosed.
"ISS is a premier brand manufacturing and distributing motion control products with a reputation for engineering and product reliability. Through the combination of exceptional people, electromechanical and mechatronic product offerings and e-commerce distribution through PartDeal.comTM, ISS is poised to provide significant benefit to our valued customers while creating meaningful growth opportunities," Dan Pappano, Cablecraft CEO.
Bain, Hellman & Friedman vying to acquire DocuSign. (FS)
Bain Capital and Hellman & Friedman are competing to acquire DocuSign, the provider of online signature services with a market value of about $12bn, Reuters reported.
The two private equity firms are among the final bidders in the auction for DocuSign, which is set to be one of the biggest leveraged buyouts of 2024.
EQT and KKR are among suitors for $5bn Broadcom asset. (FS)
EQT and KKR & Co are among private equity firms interested in acquiring a software business being sold by Broadcom in the wake of its takeover of VMware, Bloomberg reported.
Thoma Bravo has also been studying a possible bid for the so-called end-user computing unit. The business, which provides software enabling users to access desktops and applications remotely, could be valued at roughly $5bn including debt.
Canada’s OPTrust weighs sale of its stake in Spain’s Globalvia. (FS)
Canada’s OPTrust is considering strategic options including a possible sale for its roughly 40% stake in Spanish infrastructure company Globalvia, Bloomberg reported.
The pension fund is working with an adviser to solicit interest from potential buyers as it reviews alternatives. A transaction may value Globalvia at about €3bn ($3.3bn). No final decisions have been made and it’s possible OPTrust will retain the stake.
JW Marriott Dallas owner to explore sale of Arts District luxury hotel.
The developer of the JW Marriott Dallas Arts District is exploring a sale of the luxury hotel in a deal that could value the property at roughly $190m, Bloomberg reported.
Sam Moon Group, which opened the hotel in July 2023, has engaged Eastdil Secured to advise on the potential sale.
Novartis drops pursuit of Cytokinetics.
Swiss drugmaker Novartis has backed away from its pursuit of Cytokinetics and the US drug developer's shares were down over 21% in afternoon trade, Reuters reported.
Novartis may attempt to pursue a deal for Cytokinetics in the future or a different suitor may acquire the company.
Hellman & Friedman explores sale, IPO of energy software maker Enverus. (FS)
Hellman & Friedman is weighing options for energy-dedicated SaaS platform Enverus, including a potential initial public offering of the energy data platform, Bloomberg reported.
The private equity firm is exploring either a sale or listing of the business in the second half of the year. Hellman & Friedman could seek a value of $5bn or more for Enverus in any transaction.
Coatue Management raises $3bn for structured equity bets. (FS)
Philippe Laffont’s Coatue Management raised about $3bn for a structured equity fund that allows closely held companies to avoid raising money at lower valuations, Bloomberg reported.
EMEA
PureHealth, a brand of scientific innovation, completed the acquisition of Circle Health, a medical and health care services, from Centene, a multi-line healthcare solutions company, for $1.2bn.
"Circle Health is well-positioned to continue delivering clinical excellence and driving market impact under Pure Health ownership. The close of the transaction reflects Centene's steadfast focus on and commitment to our core business operations as we continue to execute against our long-term strategy," Sarah London, Centene CEO.
PureHealth was advised by Bank of America, KPMG and Ashurst (led by Josh Cole). Centene was advised by Barclays (led by Abishek Senthilkumaran) and Dickson Minto.
Starwood Capital, a global private investment firm, completed the acquisition of a portfolio of 10 hotels from Edwardian Group, a hotel group. Financial terms were not disclosed.
"We are delighted to have had the opportunity to acquire this one-of-a-kind portfolio of Central London freehold hotels. London is one of the world's most sought-after hotel markets, and this portfolio enables to us gain exposure on a unique scale to London. We plan to invest significant capex during our ownership into further enhancing the hotels," Tim Abram, Starwood Capital Managing Director.
Starwood was advised by Paul Hastings and H/Advisors Abernathy. Edwardian was advised by JLL Corporate Finance, Baker McKenzie and Edelman (led by Alex Simmons).
3E, a provider of environmental health and safety compliance and information management services, to acquire ChemChain, a blockchain platform for chemical tracking. Financial terms were not disclosed.
"ChemChain and 3E share a vision to create a safer, more sustainable world that protects people, safeguards products, and helps businesses grow. Together with ChemChain, 3E offers an unmatched combination of global regulatory expertise and a cutting-edge platform that dramatically simplifies transferring information along the value chain in a transparent and secure manner. 3E improves cross-functional engagement across global enterprises, and future-proofs products against ever-changing regulations. We look forward to the continued expansion of our supply chain solutions and empowering our clients to further accelerate their sustainability efforts," Greg Gartland, 3E CEO.
ChemChain is advised by Cambrian and Elev8law. 3E is advised by Shearman & Sterling.
Platinum Equity, a private equity firm, completed the acquisition of E&A Scheer, a blender and vendor of premium rum from The Riverside Company, a private equity firm. Financial terms were not disclosed.
"E&A Scheer has built an impressive legacy over more than 300 years and today plays a unique and essential role in the global rum market. We believe the rum category has promising prospects driven in part by the increasing popularity of new craft brands and the trend toward premiumization. We are excited to help the company capitalize on these opportunities by investing in the company's continued success," Louis Samson, Platinum Equity Co-President.
Platinum Equity was advised by DC Advisory and Latham & Watkins.
Gray Dawes Group, a corporate travel management company, completed the acquisition of VCK Travel, a travel, tourism and leisure company. Financial terms were not disclosed.
"I have long admired the business that Ed Berrevoets and his team have built. This latest chapter in our development – Gray Dawes' fourteenth acquisition to date - marks such an exciting time for us and our customers. Our clients increasingly want global solutions, even the smaller ones. They're taking us on the journey. We've been very successful picking up businesses in the U.K. and integrating them. We know how to do that well. Now, following our expansion last year into Australia and the [United States], we've been doing that internationally," Suzanne Horner, Gray Dawes Group CEO.
VCK Travel was advised by Stibbe (led by Heleen Kersten). Gray Dawes Group was advised by BarentsKrans.
ChapsVision, a sovereign data processing firm, agreed to acquire SYSTRAN, a pioneer in machine translation technologies. Financial terms were not disclosed.
"We are delighted to welcome SYSTRAN to the ChapsVision Group. This strategic acquisition strengthens our position as a leader in data processing and allows us to enrich our portfolio of solutions with innovative machine and instant translation capabilities to better serve the needs of businesses and governments. We are also very proud, through this operation, to bring back under French flag this technological nugget hitherto owned by Korean funds," Olivier Dellenbach, ChapsVision CEO.
SYSTRAN is advised by Rothschild & Co.
PAI exploring options for $10bn Nestle ice cream JV.
Private equity firm PAI Partners is in the early stages of exploring options for its ice cream joint venture with Nestle that includes brands like Haagen-Dazs, Bloomberg reported. The venture, Froneri, could be valued at more than $10bn in a transaction.
PAI could launch a so-called dual-track process in the second half of the year, exploring both a sale and initial public offering of its stake in the business. Nestle is expected to retain its stake. Nestle and PAI each own about half of Froneri.
HSBC must face $1bn suit over hiring bankers from SVB.
First Citizens Bank & Trust can proceed with a $1bn lawsuit accusing HSBC of poaching dozens of employees and stealing trade secrets from Silicon Valley Bank shortly after its acquisition by First Citizens, Bloomberg reported.
A San Francisco federal magistrate judge denied HSBC’s request to dismiss the suit, saying North Carolina-based First Citizens plausibly alleged that HSBC and other defendants breached contracts and misappropriated information.
US Magistrate Judge Laurel Beeler allowed the case to move ahead but said First Citizens needed to amend its complaint within 28 days to address some deficiencies and clarify the alleged roles of HSBC and other defendants.
Barclays says Allegro, Trainline may be targets for PE firms.
Private equity groups could scoop up more European internet companies following recent offers for Kahoot! and Adevinta, Bloomberg reported.
Analyst Andrew Ross sees Poland’s Allegro.eu and the UK’s Trainline and Moneysupermarket.com Group among possible candidates.
Africa’s biggest bank eyes acquisitions to power growth on the continent.
Bank holding company FirstRand is looking to purchase other African banks in countries where it operates as the continent’s biggest lender by market value seeks to expand, Bloomberg reported.
Potential targets for acquisitions may also include financial services outside of traditional banking.
Deutsche Bank discussing deals involving Commerzbank and ABN Amro.
Germany's largest lender Deutsche Bank has stepped up internal discussions about mergers and acquisition deals involving European lenders like Commerzbank and ABN Amro Bank, Reuters reported.
Deutsche Bank has not formally mandated any investment bank to help with its deal hunt nor has it held talks with any of its potential targets.
Los Angeles FC is moving closer to Grasshopper Zurich takeover.
American professional men's soccer team Los Angeles FC has offered a nominal price to take control of Grasshopper Zurich, a loss-making Swiss football team, Bloomberg reported.
Negotiations between the two sides, first reported by Bloomberg in October, have made progress since the New Year. While a deal is not guaranteed, both parties are confident of reaching an agreement.
Secret ‘James Bond’ tunnel developer seeks London listing.
A company developing once-secret tunnels under central London into a tourist attraction is planning to list shares on the city’s stock exchange, Bloomberg reported.
The London Tunnels has raised about £10m ($13m) privately and is targeting a £123m ($157m) valuation at a price of £2 ($2.55) per share. After admission, the company plans a £30m ($38.3) share placing, followed by an offer to retail investors.
Air Astana to list in London to fund expansion as travel soars.
Air Astana, Kazakhstan’s flag carrier, said it will go ahead with a long-delayed initial public offering in London and at home, as the post-pandemic rebound in travel persists, Bloomberg reported.
The carrier, owned by UK defense firm BAE Systems and Kazakhstan’s sovereign wealth fund, will use the funds to expand its fleet and network, CEO Peter Foster said in an interview. Air Astana’s previous attempts to proceed with a listing were stymied by the pandemic and then the turmoil following the Russian invasion of Ukraine.
APAC
Nuvama Asset Management, a wealth management services provider, and Cushman & Wakefield, a commercial real estate services firm, agreed to form Nuvama and Cushman & Wakefield Management, a joint venture to invest in commercial real estates. Financial terms were not disclosed.
"As Cushman & Wakefield deepens its presence in the fund management space, we are delighted to partner with Nuvama to help investors capitalize on this opportunity. Our global real estate expertise, coupled with Nuvama's local market knowledge and investment acumen, will create an unrivalled value proposition for investors," Matthew Bouw, Cushman & Wakefield CEO of Asia Pacific.
Cushman & Wakefield is advised by Jones Day.
Korean Air is expected to win EU antitrust approval to buy Asiana Airlines after the companies pledged to sell the latter's cargo unit and divest routes to four European cities.
The Korean deal underscores a wave of consolidation in the airline sector, with Lufthansa seeking a 41% stake in Italy's ITA Airways and British Airways and Iberia owner IAG aiming to buy the remaining 80% of Spanish carrier Air Europa it does not already own. The Commission declined to comment. It has beefed up its approach towards air mergers after previously approved deals led to price hikes despite remedies to address their concessions.
ClinChoice, a global contract research organization, completed the acquisition of CSI Medical Research, a a regional clinical CRO. Financial terms were not disclosed.
"This is an exciting time for ClinChoice, and we are thrilled to welcome the talented CSI team to the ClinChoice family. With their wide-range of highly valuable service offering and seasoned professional team, the acquisition of CSI will further expand our presence in SEA and ANZ, and enhance our capability to well fulfill our clients' need locally and globally," Ling Zhen, ClinChoice Global Chairman and CEO.
China securities regulator vows to strengthen long-term investment incentives.
China's securities regulator will strengthen incentives for "countercyclical investment" and guide institutions to practice long-term investment seeking to boost the country's faltering stock market, Reuters reported.
China's stock benchmark is down 4.3% since the start of the year, hovering around close to five-year lows amid weak investor sentiment in the face of the country's sluggish post-pandemic recovery.
Lion Air considers reviving $500m Indonesian IPO.
Indonesia’s biggest private carrier Lion Mentari Airlines is considering reviving an initial public offering in Jakarta that could raise as much as $500m, Bloomberg reported.
Lion Air is working with advisers on a potential offering that could take place as soon as the end of this year. The company could raise $300m to $500m.
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