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AMERICAS
Blackstone, an American alternative investment management company, completed the acquisition of a 60% stake in the Climate Technologies business of Emerson, a technology, software and engineering powerhouse, for $8.4bn.
“Today’s announcement is a definitive step in the portfolio journey we embarked on when I became CEO in early 2021. Over the past 18 months, the Emerson team has accelerated our portfolio transformation, divesting non-core businesses including InSinkErator and Therm-O-Disc, while investing in organic growth opportunities and important transactions including AspenTech," Lal Karsanbhai, Emerson President and CEO.
GIC was advised by Dechert (led by Mark Thierfelder). Blackstone was advised by Barclays (led by Richard Siegel and John McCann), Evercore (led by Naveen Nataraj), Guggenheim Partners, Corrs Chambers Westgarth (led by Jeremy Horwood), Herbert Smith Freehills (led by Joseph Dennis), Simpson Thacher & Bartlett (led by Elizabeth Cooper and William Allen) and Joele Frank (led by Jonathan Keehner). Debt financing was provided by RBC Capital Markets, SMBC Nikko Securities and Wells Fargo Securities. Emerson Electric was advised by Centerview Partners, Goldman Sachs, Baker McKenzie (led by Jannan Crozier), Davis Polk & Wardwell (led by Phillip R. Mills and Marc O. Williams), FleishmanHillard and Joele Frank (led by Matthew Sherman). Financial advisors were advised by Sullivan & Cromwell (led by Stephen M. Kotran).
PAI Partners, a private equity firm, completed the acquisition of the savory solutions business of International Flavors & Fragrances, a specialty ingredients producer globally, for $900m.
"A key aspect of our strategy is to continuously evaluate our portfolio to identify opportunities to maximize shareholder value. The sale of IFF's Savory Solutions Group is an important milestone as it allows us to focus on our highest-return businesses, improve our capital structure and enhance our go-forward growth and return profile. We appreciate the contributions of our Savory Solutions colleagues who have, for years, demonstrated their commitment to innovation, service and quality. We will work closely with PAI Partners to have a successful transition and look forward to Savory Solutions' future under its ownership," Frank Clyburn, IFF CEO.
Madison Dearborn Partners, an American private equity firm, completed the acquisition of MoneyGram, a digital P2P payments provider, for $1.8bn.
"We are excited to enter into this transaction with MDP, which will deliver immediate and compelling value to shareholders and enable us to accelerate the advancement of our digital growth strategy. This transaction is the culmination of a thorough process by the MoneyGram Board to enhance shareholder value while positioning our business for continued growth and expansion. By partnering with MDP and becoming a private company, we will have greater opportunities to innovate and transform MoneyGram to lead the industry in cross-border payment technology and deliver a more expansive set of digital offerings, while leveraging our global platform for new customers and use cases. This transaction provides exciting opportunities for our dedicated MoneyGram team and partners, and I'm incredibly excited about the path ahead," Alex Holmes, MoneyGram Chairman and CEO.
MoneyGram was advised by Bank of America (led by Kevin Brunner), Vinson & Elkins (led by Lande Spottswood and Alan Bogdanow) and Joele Frank (led by Joseph Sala and Viveca Tress). Bank of America was advised by Paul Hastings. Madison Dearborn Partners was advised by Barclays, Deutsche Bank, Goldman Sachs, JP Morgan, Covington & Burling, Kirkland & Ellis, Latham & Watkins (led by Fiona M. Maclean, Ian Bushner, Christopher Drewry and Neal Reenan), Abernathy MacGregor Group. Financial advisors were advised by Cleary Gottlieb Steen & Hamilton (led by Paul Shim) and Davis Polk & Wardwell. Debt financing was provided by Barclays, Deutsche Bank and Goldman Sachs.
Ready Capital, a multi-strategy real estate finance company that originates, acquires, finances and services small-to-medium balance commercial loans, completed the merger with Broadmark Realty Capital, a specialty real estate finance company, in a $784m deal.
"We are excited about the continued growth of our commercial real estate investment platform with the Broadmark transaction and believe it will provide strategic and financial benefits to all shareholders. We believe our asset management and workout experience, along with the synergies we expect to realize, position us well over the long-term," Thomas Capasse, Ready Capital Chairman and CEO.
Broadmark was advised by JP Morgan, Bryan Cave Leighton Paisner and Sidley Austin (led by Jessica M. Day and Scott Williams). JP Morgan was advised by Simpson Thacher & Bartlett (led by Sebastian Tiller). Ready Capital was advised by Wells Fargo Securities and Alston & Bird. Wells Fargo Securities was advised by Cravath Swaine & Moore (led by Minh Van Ngo and Andrew Wark).
Altria, a producer and marketer of tobacco, cigarettes and related products, completed the acquisition of NJOY, a company that manufactures and distributes electronic cigarettes and vaping products, from Mudrick Capital, a private equity company, for $2.75bn.
“We believe we can responsibly accelerate US adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company. We believe the strengths of our commercial resources can benefit adult tobacco consumers and expand competition. We are also excited to welcome NJOY's talented employees to Altria at closing,” Billy Gifford, Altria CEO.
Altria was advised by Morgan Stanley, Perella Weinberg Partners, Arnold & Porter Kaye Scholer and White & Case (led by Chang-Do Gong and Kristen Rohr). Mudrick Capital was advised by Kekst CNC (led by Todd Fogarty). NJOY was advised by Moelis & Co and Weil Gotshal and Manges (led by Michael Lubowitz and Brian Gingold). Financial advisors were advised by Paul Weiss Rifkind Wharton & Garrison. Debt financing was provided by Morgan Stanley.
Constellation, the operator of the nation's largest fleet of reliable, carbon-free nuclear plants, agreed to acquire a 44% stake in Texas Nuclear Plant, a dual-unit nuclear plant located about 90 miles southwest of Houston, from NRG Energy, an American energy company, for $1.75bn.
"The South Texas Project is an exceptionally well-maintained plant and its ability to produce resilient, carbon-free energy 24/7 makes it among the most valuable power sources in the world. With the potential to run for at least 46 more years with the right policy support, we look forward to working with the South Texas Project's other owners to continue bringing clean, reliable electricity to this growing region for decades to come," Joe Dominguez, Constellation President and CEO.
Constellation is advised by Bank of America and Sidley Austin. NRG Energy is advised by Barclays, Morgan Stanley and McGuireWoods.
MGP Ingredients, a provider of distilled spirits, branded spirits, and food ingredient solutions, completed the acquisition of Penelope Bourbon, a whiskey brand, for $216m.
“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio. This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform. We are enthusiastic about this acquisition and its ability to further our participation in the growing American Whiskey category while delivering meaningful long-term growth,” David Colo, MGP Ingredients President and CEO.
Penelope Bourbon was advised by TD Cowen and BakerHostetler. MGP Ingredients was advised by Reed Smith and Byrne PR (led by Patrick Barry).
MDU Resources, a provider of essential products and services, completed the spin-off of Knife River, a provider of construction materials. Financial terms were not disclosed.
"The board regularly assesses MDU Resources' business, operations and value creation opportunities. Our most recent assessment determined that a separation of Knife River could unlock significant value. Since its first aggregate company acquisition in 1992, MDU Resources has built Knife River into a leading aggregates-based construction materials business. The MDU Resources board believes Knife River is ready to continue its success as a stand-alone public company and take full advantage of anticipated work resulting from federal infrastructure funding. We will diligently work through the separation process to ensure each company is optimized to deliver value for shareholders," Dennis W. Johnson, MDU Resources Chairman.
Atlas Holdings-backed Flagstone Foods, a manufacturer of snack nuts, culinary nuts, trail mixes, and other nut-based snacks, completed the acquisition of Emerald Nuts, a brand known for its snack nuts and nut-based products, from Campbell Soup Company, an American company, most closely associated with its flagship canned soups and other baked goods, beverages, and snacks. Financial terms were not disclosed.
"Flagstone Foods has long been trusted by the nation's premier retailers to provide the highest quality snacks. Emerald has been providing high-quality branded snack nuts since 2004 and is now the go-to option for consumers seeking better-for-you snacking on the go. Adding Emerald Nuts to our portfolio establishes a new avenue for Flagstone to service our customers with innovative snack products and unites two industry leaders with a shared commitment to the highest levels of product quality and innovation. Our Flagstone team is excited to welcome Emerald as a transformative acquisition to our portfolio and we're looking forward to continuing to drive growth for both Flagstone and our retail partners," Harry Overly, Flagstone Foods Chief Executive Officer.
Flagstone Foods was advised by Piper Sandler and Willkie Farr & Gallagher (led by Laura Acker and Justin Sommerkamp). Campbell Soup Company was advised by Barclays.
Getinge, a global medical technology company, agreed to acquire High Purity New England, a provider of single-use solutions for bioprocessing applications, for $290m.
"This acquisition is another step in Getinge Life Science strategic journey to further expand our presence in the biopharma segment. High Purity New England has in recent years successfully supplied the industry with dedicated single-use assemblies. We are delighted to join forces with HPNE providing our customers with comprehensive and innovative solutions for bioprocessing applications," Eric Honroth, Getinge President Life Science.
High Purity New England is advised by Houlihan Lokey.
Learneo, a platform of productivity and learning businesses, completed the acquisition of the Digital Student Solutions segment of Barnes & Noble Education, one of the largest operators of college bookstores in the United States. Financial terms were not disclosed.
"Learneo is shaping a world where everyone has the resources to learn and achieve their fullest potential. The addition of DSS to our suite of digital study and writing solutions, helps us deliver on our vision by expanding our educational offering and diversifying Learneo's reach to new audiences and markets worldwide," Andrew Grauer, Learneo CEO.
Barnes & Noble Education was advised by Houlihan Lokey.
424 Capital, a capital partner that invests in lower middle market companies in the tech-enabled services space, completed the investment in PTP, a cloud consulting and managed services firm. Financial terms were not disclosed.
"We are excited to close this investment with 424 Capital. The power of PTP's cloud and managed services portfolio combined with the additional business-growth expertise of 424 Capital will enable PTP to provide valuable services and cloud solutions to a greater number of life sciences clients and net-new markets," Ethan Simmons, PTP Managing Partner.
PTP was advised by Canaccord Genuity.
NEA, an American-based venture capital firm, led a $166m Series C round in Strive Health, a provider of value-based kidney care, with participation from CVS Health Ventures, CapitalG, Echo Ventures, Town Hall Ventures, Ascension Ventures and Redpoint.
"Since our founding, we've strongly believed that we must meaningfully change the standard of kidney care so people with kidney disease can have better access to care regardless of their socioeconomic background. With the help of our investor partners, this capital raise will propel us further along in our journey to transform kidney care," Chris Riopelle, Strive CEO.
Strive Health was advised by Walker Sands Communications (led by Maggie Crouch).
SIP Global Partners, a US-Japan VC firm investing in early-stage decarbonization technology, and Aliya Capital Partners, a multi-family office based in Miami, led a $154m Series C round in Lightmatter, a computer hardware manufacturer.
"Lightmatter's unique approach to harnessing the power of photonics will drive the enormous compute required for generative AI. The massive global growth in these technologies and use cases is at the forefront of this absolutely essential paradigm shift. We are especially excited to see LM's early entry into the Japanese market. We expect them to play a leading role as Japanese AI use cases grow exponentially," Jeffrey Smith, SIP Global Partners General Partner.
Ingka Group, owner and operator of 482 IKEA stores and e-commerce in 31 counties, completed the acquisition of Made4net, a provider of end-to-end supply chain execution software, from Thompson Street Capital Partners, a private equity firm. Financial terms were not disclosed.
"Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers. Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us," Tolga Öncu, Ingka Group Head of Retail.
LTP Home Services Group, a residential plumbing and HVAC services provider, completed the acquisition of American Air & Heat, an air conditioning solutions company. Financial terms were not disclosed.
"Partnering with American Air & Heat is a continuation of our acquisition growth strategy. American Air & Heat is the preeminent HVAC home services company in the Orlando area. We admire the successful business and strong team Matt Boni has built, and their tireless focus on serving their customers. We share a company culture of excellence and look forward to what we can accomplish together," Jeff Cooper, LTP CEO.
Patria Investments-backed Lavoro, an agricultural input retailer, completed the acquisition of Cromo Química, an agrochemical company. Financial terms were not disclosed.
"We expect that partnering with Latin America’s largest ag inputs retailer will foster our growth. With this alliance, we have a clear vision of our expansion plan for the coming years, with new product launches, governance structuring, and market access,” Josir Neuls, Cromo Química CEO.
Mexico mulls benefits of Banamex purchase, eyes synergies with state bank.
Mexico is evaluating whether buying Citigroup's Mexican consumer unit would help boost financial inclusion, potentially in combination with a state-run bank such as the Banco del Bienestar. US lender Citigroup scrapped its sale of the Banamex unit last week and said it will instead list it, a surprise move coming amid talks to sell the business to Mexican billionaire German Larrea's conglomerate Grupo Mexico, Reuters reported.
After Citi announced its IPO plans, President Andres Manuel Lopez Obrador said the government could acquire up to half of Banamex. Before Citi's u-turn, Grupo Mexico had been eyeing the unit for around $7bn. The deal to sell Banamex to Grupo Mexico fell through as tensions between the conglomerate and Lopez Obrador, which had already been rising, flared up after the government moved to expropriate a section of one of its railway lines. The spat with Grupo Mexico alongside other government demands on Banamex - including that it remain in Mexican hands and that any new owner not be allowed to cut costs via layoffs - led the two sides to abandon the deal.
Adams Street raises over $3.2bn for secondary investment programme. (FS)
Adams Street Partners, a private markets investment management firm with more than $54bn of assets under management globally, secured more than $3.2bn in capital commitments for its Secondaries Investment Program, including the successful close of Global Secondary Fund 7.
The latest Secondaries Investment Program is 50% larger than the firm’s previous fundraise, which included the close of Global Secondary Fund 6. Adams Street’s Global Secondary Fund 6 has consistently outperformed its peers, ranking in the top quartile since closing in 2019. Adams Street’s Secondaries Investment Program enjoyed strong demand from new and existing institutional investors globally. The successful close raises total secondaries strategy assets at Adams Street to $8.2bn.
Integrum exceeds target for inaugural fund with $1.1bn in commitments. (FS)
Integrum, an investment firm focused on partnering with technology-enabled service companies, has completed fundraising for its inaugural fund, Integrum Capital Partners at $1.1bn, exceeding the fund’s original target. This total excludes related co-investment vehicles that provide the fund with capacity to invest additional capital.
The fund received strong support from an international group of high-quality institutional investors, including pension funds, wealth managers, insurance companies, consultants, family offices, foundations, and funds of funds. Integrum says the new funding will allow it to continue executing on its differentiated approach to value creation, investing to produce sustainable organic growth, and establishing strong partnerships with management teams.
EMEA
IK Partners, a mid-market European private equity group, agreed to invest in Linxea-Irbis Group, a provider of financial and savings products. Financial terms were not disclosed.
"We have been thoroughly impressed with the Group's journey to date, especially in the way in which it has led the market in terms of offering innovative solutions which capitalize on market disruption. We are delighted at the level of confidence bestowed upon us by the Group's management team as well as shareholders and we look forward to working with them to actively contribute to its continued development," Pierre Gallix, IK Managing Partner.
SCHMID Group, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, agreed to go public via merger with StratCap-backed Pegasus Digital Mobility Acquisition, a special purpose acquisition company, in a $640m deal.
"We are excited to partner with the SCHMID team to further grow the Group's platform and accelerate expansion into new attractive markets, including the automotive sector. We look forward to bringing to bear our deep experience in product development, manufacturing, and operational excellence, as well as our track record of enhancing shareholder value, to realize the SCHMID Group's full potential," Ralf Speth, Pegasus CEO and Chairman.
SCHMID Group is advised by Fenwick & West, Gleiss Lutz and Kekst CNC (led by Daniel Yunger and Knut Engelmann). Pegasus is advised by Marshall & Stevens Transaction Advisory Services, Solomon Partners, Appleby and Clifford Chance.
The Carlyle Group, a global investment firm, agreed to acquire Meopta Optika, a manufacturer of optical, opto-mechanical, and opto-electronic solutions. Financial terms were not disclosed.
Carlyle will seek to support Meopta's growth in partnership with its management team by capturing the opportunity in more advanced built-to-spec use cases through an increased focus on R&D, capitalizing on attractive opportunities in a diverse range of end markets, expanding its international presence through the creation of a direct sales network, and improving its operations.
Meopta Optika is advised by Deloitte, Goldman Sachs and Dentons.
I Squared Capital-backed nLighten, a digital infrastructure platform, completed the acquisition of Euclyde Data Centers, a French regional platform with six, carrier-neutral data centers. Financial terms were not disclosed.
"With this acquisition, we are taking another step towards our goal of creating a leading pan-European edge data center platform. Euclyde is an excellent fit with our strategy, and the existing management team, employees and assets are a solid base for our ambitions in France," Harro Beusker, nLighten CEO.
Euclyde Data Centers was advised by DC Advisory (led by Gregory Roquier) and Askesis. nLighten was advised by Reinhart Marville Torre.
Shawbrook, a specialist savings and lending bank, completed the acquisition of Bluestone Mortgages, a specialist mortgage lender focused primarily on owner-occupied mortgages. Financial terms were not disclosed.
"We are delighted to have strengthened our long-standing and successful partnership with Bluestone Mortgages through this acquisition. Bluestone Mortgages is a well-established brand in the UK specialist residential mortgage market, and by bringing the two organizations together, we can use our combined capabilities and scale to offer an even stronger proposition to UK homeowners," Marcelino Castrillo, Shawbrook CEO.
Shell, a British multinational oil and gas company, completed the acquisition of a portfolio of solar projects in Spain from Isemaren, a renewables developer. Financial terms were not disclosed.
"Bringing these assets into our portfolio strengthens our presence in one of Europe's largest solar power markets," Thomas Brostrøm, Shell Executive Vice President.
Gimv, a private equity firm, completed the acquisition of a majority stake in ERS electronic, a thermal management solutions provider. Financial terms were not disclosed.
"The importance of thermal management in the semiconductor manufacturing process continues to grow, leaving us uniquely positioned to capitalize on the rapidly evolving industry to continue to deliver value to our customers. Our choice to partner with Gimv was based on our mutual commitment to excellence and passion for innovation and technology. We are excited to embark with them on a new chapter in ERS's story to realize our shared vision," Laurent Giai-Miniet, ERS electronic CEO.
J.S. Held, a specialized global consulting firm, completed the acquisition of Africa Matters, an Africa-focused strategic advisory firm. Financial terms were not disclosed.
"Africa Matters's Business Intelligence services focused on African markets help clients understand the environment in which they are investing or operating. Our deep understanding results in bespoke intelligence which facilitates market entry, and as appropriate, partner identification, while mitigating risk and supporting reputational integrity," Piers Dawson, Africa Matters Managing Director.
Liberty Global and Warner Bros Discovery owners weigh deal for All3Media.
The owners of All3Media, Britain's largest independent TV production company, are exploring options that include cashing out on their joint venture in a deal worth more than $1.26bn. Liberty Global and Warner Bros Discovery are considering selling their stakes in All3Media to a third party or one of them buying the other out, Reuters reported.
Warner Bros Discovery selling its stake to Liberty Global would help it trim its $49bn debt pile, the legacy of the 2021 merger between Discovery and Warner Media that created it. Discovery created the All3Media joint venture in 2014 with Liberty Global for its content and production capabilities. This is something it no longer needs following its merger with WarnerMedia, which has an extensive movie library and film and television production resources.
Johnson Matthey plans to sell medical device unit.
British autocatalyst maker Johnson Matthey is planning to sell its medical device components business as the company looks to streamline its portfolio of assets. The sale could value the medtech unit at several hundred million pounds, Bloomberg reported.
The centuries-old firm, which traces its roots back to testing the purity of precious metals, had posted a 21% drop in its annual earnings last week due to higher costs and lower precious metal prices. The company has identified several non-core businesses for disposal by the end of the fiscal 2023-2024 year. Johnson Matthey has seen its stock drop more than 18% this year as it battles supply constraints and challenges in sourcing components from Ukraine.
Credit Suisse SPAC head Stabinsky leaves for Santander. (People)
Credit Suisse Group departures continue with its head of blank-check companies leaving after the fortunes of both the bank and the product have changed. Niron Stabinsky, the head of special purpose acquisition companies and permanent capital, is leaving the Swiss bank to join Banco Santander, Bloomberg reported.
Santander has snapped up top bankers from Credit Suisse as uncertainties loom around the UBS Group merger brokered by the Swiss government. Steve Geller, who was Credit Suisse’s head of mergers and acquisitions, David Hermer, who was its global head of equity and debt capital markets, are both joining the Spanish investment bank. Stabinsky was dubbed Mr. SPAC during the two-year surge of blank-check ventures that began in 2020. He has advised dealmakers such as Chamath Palihapitiya, Todd Boehly, Bill Foley and Chinh Chu.
Brookfield Renewable, a publicly traded limited partnership that owns and operates renewable power assets, completed a $360m investment in CleanMax, a Mumbai-based renewable energy company.
This funding of $360m, which is a mix of primary and secondary, will enable CleanMax to pursue its growth plans of becoming a >5 GW platform over the next three to four years. Through this investment, Brookfield Renewable will have a controlling stake in CleanMax, and will work with existing shareholders and management to drive the platform's growth in the commercial and industrial segment in India.
CleanMax was advised by Rothschild & Co (led by Aalok Shah).
Apollo, Bain, possible bidders for Fujitsu's $2.7bn stake in Shinko. (FS)
Fujitsu's controlling stake in Shinko Electric Industries has attracted interests from Apollo Global Management and Bain Capital as potential bidders. Dai Nippon Printing, Japan Investment and KKR have also expressed interest in the stake, Bloomberg reported.
Fujitsu's stake is valued at around $2.7bn based on the latest stock price of Shinko. In an earlier update, the news agency had pegged it at $2.4bn. Fujitsu has been weighing options for Shinko as its largest stakeholder, looking to streamline operations adding that potential bidders could practice more caution in valuing the firm its business involves national security issues.
Chinese EV maker Hozon weighs June filing for $1bn Hong Kong IPO.
Hozon New Energy Automobile, a company making affordable electric vehicles in China, is considering filing for its $1bn Hong Kong initial public offering as soon as this month. The Shanghai-headquartered company has added ABC International Holdings and China Merchants Bank International to the banks working on the listing, Bloomberg reported.
An IPO may come as the Chinese EV market is being roiled by a price war kicked off by Tesla in October, with both domestic and international rivals following suit. Steep discounts have failed to reverse a slide in sales for most manufacturers, and earnings have taken a hit. Hozon sold 152k units of its Neta brand vehicles in 2022, up 118% versus the year before, according to a press release. The company is looking to build a presence in Europe and the Middle East as well as in Asia Pacific, where it inked a manufacturing agreement in May to make its Neta V model in Thailand.
SE Asian tech giant Sea disbands investment arm. (FS)
Southeast Asian e-commerce and gaming giant Sea is winding down its investment arm amid a cooling investment environment globally as macroeconomic and market uncertainty weighs on valuations. The arm, Sea Capital, stopped new equity investing in 2022 with leadership moving on in May, while Sea itself is placing less priority on investing given market conditions, DeelStreetAsia reported.
Sea’s decision to close the two-year-old arm comes as technology investors – both funds and firms – have held back on investing amid higher interest rates and while economies struggle for growth as they recover from the Covid-19 pandemic. Southeast Asia’s biggest listed tech firm, began an overhaul of the group last year, reducing its workforce by around 7k people, or about 10%, and freezing salaries as its market capitalisation tumbled to $32.5bn from an early pandemic high of over $200bn.
Real Pet Food raises funds from Temasek. (FS)
Investment companies Hosen Capital, New Hope Group, and Temasek Holdings reportedly led a $161m equity injection into Real Pet Food, an Australia-based chilled pet food supplier. The company will use the funds to pay down debt and support growth.
The Real Petfood Company is a specialist co-manufacturer of high-quality baked semi-moist treats, premium biscuits & snacks for private-label pet food.
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