Colfax acquired DJO Global from Blackstone for $3.15bn. (FS)
Colfax Corporation, a leading diversified technology company, acquired DJO Global, a global leader in orthopedic solutions, providing orthopedic devices, software and services spanning the full continuum of patient care, from injury prevention to rehabilitation. Blackstone Group is the seller.
Colfax expects to finance the transaction with approximately $100m of cash from its balance sheet, proceeds from credit facilities and a contemplated debt offering, and $500 to $700m from a contemplated offering of equity or equity-linked securities.
“The acquisition of DJO is a compelling next step in the strategic evolution of Colfax that creates a new growth platform in the high-margin orthopedic solutions market,” said Matt Trerotola, President and Chief Executive Officer of Colfax.
Credit Suisse, Goldman Sachs, Wells Fargo Securities and Simpson Thacher & Bartlett advised DJO Global. JP Morgan and Kirkland & Ellis advised Colfax. JP Morgan and Credit Suisse provided financing.
Cimarex, an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the US, acquired Resolute Energy, an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin, for $1.6bn.
Under the terms of the definitive merger agreement, Resolute shareholders will have the right to receive 0.3943 shares of Cimarex common stock, $35 per share in cash, or a combination of $14 per share in cash and 0.2366 share of common stock. The amount of stock and cash is subject to proration for total stock and cash mix of 60% and 40%, respectively. The consideration represents an approximate 14.8% premium to Resolute's closing price of $30.49 on November 16, 2018.
"This high-quality, bolt-on asset is tailor-made for Cimarex," said Thomas E. Jorden, Chairman, President and CEO of Cimarex. "It is a perfect fit with our existing Reeves County position and will allow us to leverage our knowledge and deliver superior results over a broader asset base for the benefit of both Cimarex and Resolute shareholders. The Resolute assets are expected to generate free cash flow in 2019, basically funding any additional development capital from the start."
Goldman Sachs, Petrie Partners Securities, Arnold & Porter and Wachtell Lipton Rosen & Katz advised Resolute Energy. Evercore and Akin Gump Strauss Hauer & Feld advised Cimarex.
Joyvio, a subsidiary of Legend Holdings, a Chinese investment holding company, acquired Australis Seafoods, a Chilean salmon farmer, for $880m.
Joyvio said it sees salmon as a potentially huge opportunity in China’s domestic market and internationally.
Fairfax Financial acquired a 13.7% stake in Stelco for C$250m ($190m).
Fairfax Financial, a financial holding company, acquired a 13.7% stake in Stelco, a steel company based in Hamilton, Ontario, at a price of C$20.50 ($15.5) per Common Share. Total consideration is C$250m ($190m).
Fairfax said it acquired the shares for investment purposes.
Fuji Oil, a Japanese food ingredient maker, acquired Blommer Chocolate Company, an industrial chocolate manufacturer, through a merger with Aztec Sub Inc., which was established for this objective. Financial terms were not disclosed.
After the closing, Fuji Oil intends to reinforce its industrial chocolate business as a group by introducing its oil and fat technologies for value-added chocolate products and combining its raw material procurement operation with that of Blommer. In addition, Fuji Oil plans to cross-sell its wide variety of other confectionery products to Blommer’s diverse customer base in the North American market.
Bank of America Merrill Lynch and Skadden Arps Slate Meagher & Flom advised Blommer.
Blackstone and Stonepeak express interest in acquiring Zayo Group. (FS)
Zayo Group LLC provides bandwidth infrastructure solutions in the United States, Canada, and Europe. The company is currently worth about $11bn, including debt. Other than Blackstone and Stonepeak, funds managed by KKR, I Squared Capital, GTCR and Charlesbank Capital Partners are also rumored to be interested in taking the company private.
Shares of Zayo rose as much as 20% in response to the news.
QEP sold Haynesville-Cotton Valley assets to Aethon for $735m. (FS)
QEP Resources, a leading independent crude oil, and natural gas exploration and production company, sold its Haynesville-Cotton Valley oil & gas assets located in Louisiana, to Aethon Energy, a Dallas, Texas-based private investment firm. The assets cover about 49,700 net acres including 137 gross operated producing wells in Northwest Louisiana.
“The sale of our Haynesville/Cotton Valley business is an important next step in our process of becoming a Permian pure-play company,” Chuck Stanley, QEP chairman, president and CEO, said in a statement.
Barloworld seeks to acquire a business from Caterpillar.
Barloworld, an industrial brand management company founded in South Africa, is rumored to be in talks to acquire a business from Caterpillar, an American Fortune 100 corporation which designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network. Proceeds from the sale of Barloworld’s Iberian business are to be used to finance the transaction.
“I have given myself a year to identify a business and I have already engaged Caterpillar. They have given me a commitment to a specific area,” Chief Executive Dominic Sewela told Reuters in a telephonic interview, without elaborating.
Palantir and Merck establish data analytics joint venture.
Palantir Technologies Inc will set up a cancer data analytics joint venture with German lab supplies company Merck KGaA, as the US analytics and security firm makes further inroads into health care. The newly formed company, called Syntropy, will offer cancer data analytics tools to research centers, combining Palantir’s Foundry data platform with the customer knowledge of Merck’s Life Science business, known as MilliporeSigma in North America.
The companies would not disclose financial terms, beyond saying each partner would hold a 50% stake.
