EMEA
Partners Group, the global private markets investment manager, has acquired 100% of the equity in CapeOmega, a leading offshore infrastructure platform in Norway. The company is being purchased from private equity investor HitecVision in a transaction that values CapeOmega at around €1.2bn ($1.35bn).
CapeOmega provides essential infrastructure for transporting natural gas produced on the Norwegian Continental Shelf. Partners Group will work closely with CapeOmega's management team, led by CEO Gisle Eriksen, to further expand in offshore infrastructure and related assets, with a focus on greenfield developments and brownfield acquisitions.
"Natural gas is increasingly adopted as a complementary fuel source to renewables in the context of the retirement of coal-fired and nuclear power plants across Europe, and the NCS is poised to benefit from this demand tailwind. Partners Group welcomes the opportunity to partner with a well-respected and experienced management team to realize the associated infrastructure expansion potential for CapeOmega in one of Europe's key natural gas supply hubs." Esther Peiner, Managing Director, Private Infrastructure Europe, Partners Group.
Rothschild & Co is advising HitecVision.
Energias de Portugal to vote on China Three Gorges offer on Wednesday. (FS)
China Three Gorges will not change the terms of its takeover bid for EDP-Energias de Portugal utility, the company said on Monday, meaning that if shareholders reject a voting rights reform at their meeting on Wednesday the $10bn bid will be scuppered.
Portugal’s CMVM market regulator warned the state-owned Chinese firm on April 12 that its takeover attempt of Portugal’s most significant company would fail if shareholders reject a motion to scrap a 25% voting right limit unless CTG withdrew the rights cap change as a condition of the bid.
“Specifically, if the result of the vote does not allow for the elimination of the rights cap, CTG will not give up on this condition,” the statement said, adding that it would remain a long-term strategic investor in EDP, regardless of the final result of the offer.
Activist investor Elliott, which has a 2.9% stake in EDP and has proposed an alternative to CTG’s bid, has called on EDP shareholders to reject the voting reform.
EDP is advised by Lazard, Millennium, Morgan Stanley, Rothschild & Co, UBS, DLA Piper, King & Wood Mallesons, and MLGTS. Three Gorges is advised by BofA Merrill Lynch, Citigroup, and Linklaters.
Saudi Aramco acquired Shell's stake in Saudi refining JV for $631m.
The Saudi Arabian Oil Company acquired Shell Saudi Arabia Refining’s 50% share of the SASREF joint venture in Jubail Industrial City, in the Kingdom of Saudi Arabia, for $631m.
The acquisition supports Saudi Aramco’s plan to increase the complexity and capacity of its refineries, as part of its long-term Downstream growth strategy. For Shell, the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals. The deal is expected to complete later this year, subject to regulatory approval.
The refinery has a capacity of 305k barrels per day. The main products are liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil, and sulfur.
“SASREF has been a long and successful partnership between Shell and Saudi Aramco. The refinery has operated with good reliability and has an impressive safety record. We’re proud of what we have achieved together over the past four decades and will continue to explore new business opportunities.” John Abbott, Shell Downstream Director.
Fincantieri acquired control over Insis.
Fincantieri has acquired a majority stake of Insis, a company headquartered in Follo operating in the sectors of information technology and electronics, as part of the enhancement of its activities in high technological content sectors. Financial terms were not disclosed.
Insis is positioned as a solution provider in the defense and civil sector and ranks upon its expertise the development of products and services in the field of optronic, telecommunications, information technology, and cybersecurity. In this area of activities, the company is acknowledged for the high level of technological content of its products and for having succeeded in preserving a strong customer base in a complex and fragmented market.
"This acquisition falls within the development plan for a center of excellence in engineering and technology services. These are key areas for innovation, the real pillar of competitiveness, that will allow us to boost skills for which we already stand out, creating synergies within our company. It is also part of the strategy to consolidate the supply chain of small and medium-sized companies which will be coordinated in this center, where every company will preserve its management, thus strengthening the one of our Group," Giuseppe Bono, Fincantieri CEO.
Deutsche Bank and UBS in talks to merge asset management units.
The asset management arms of Deutsche Bank and UBS are in serious talks to merge. The talks are rumored to have been going on for the past couple of months. The deal could see UBS hive off its asset management unit and fold it into Deutsche’s DWS in exchange for shares in the larger group. The German bank, which holds a 79% stake in DWS, would remain the company’s top shareholder but its interest would be diluted.
Asoka Woehrmann, chief executive of DWS, told the FT in March he wanted to be an active participant in M&A activity.
“Our size and scale is not something we should hide,” he said. “We have to look at opportunities in the market.”
British Land-Sainsbury sells 12 Superstores properties for $557m. (RE)
British Land Company said it and joint venture partner Sainsbury sold 12 Superstores properties to US-based Realty Income for £429 ($557m).
British Land said its share of the proceeds from the disposal would be £193.5m ($250m) and the portfolio represented a modest premium to the company’s September 2018 book value.
Casino Sells 32 stores to Apollo Global. (RE)
As a part of the plan to dispose of €1.5bn ($1.7bn) non-core assets, Casino has sold a portfolio of 32 stores to a private equity group Apollo Global Management for a sum of €470m ($528m).
The latest deal in an ongoing asset disposal plan as Casino seeks to shore up its financial position and reassure investors. Casio said on Monday the portfolio of stores is made up of 12 Géant Casino hypermarkets and 20 Monoprix and Casino supermarkets properties, located primarily outside of Paris.
Apollo will create a special purpose vehicle to acquire Casino’s real estate portfolio, and Casino will receive an interest in this new entity.
Amazon strengthens ties with food retailer Casino, considering a future deal.
E-commerce giant Amazon and French retailer Casino are expanding their partnership, with Amazon installing pick-up lockers in Casino stores and making more of the French company’s products available on Amazon.
The move, which follows an initial co-operation between Casino’s upmarket Monoprix supermarket chain and Amazon in Paris, could re-ignite speculation of a bigger deal later on.
Thomas Cook shares and bonds raised after report of suitors circling. (FS)
Shares and bonds in Thomas Cook rallied after a media report said several parties approached the British travel company about a possible takeover of its tour operating unit or the entire business.
The report of takeover interest from private equity firms helped to quell worries about the world’s oldest tour operator’s £1.7bn ($2.2bn) of debt that have wiped two thirds off its market value over the past six months.
Private equity firm KKR and Swedish buyout group EQT Partners were potential bidders for the group. China’s Fosun International, which owns a 17% stake in the company, was understood to be among those to have lodged preliminary interest in the tour business.
BNP seeks buyers for banks in Tunisia and Gabon.
BNP Paribas said it is in the process of seeking buyers for its stakes in its retail banks in Tunisia and Gabon as France’s largest bank exits some non-core assets.
BNP Paribas has told the board of Tunisia-based Union Bancaire pour le Commerce et l’Industrie in January it was seeking a partner to take over its 50.1% stake in the retail bank, BNP Paribas said in a statement.
The French bank confirmed a report from newspaper Les Echos, which also said it is considering selling its stake in its bank in Gabon, in which it holds 47%, though BNP Paribas declined to elaborate.
Covea considers acquisition in reinsurance sector.
French cooperative insurer Covea said it is seeking to diversify into reinsurance through the acquisition of companies in that business line.
“Developing such an activity like that takes decades, so external growth is the more plausible,” Thierry Derez, Covea’s Chief Executive.
Unlisted Covea, which holds an 8.2% stake in French reinsurer SCOR, has said it didn’t plan to increase its stake in the reinsurer after an attempt to take the firm over went sour a few months ago.
Derez declined to comment whether it would divest from SCOR in the case his company would take over a rival reinsurer.
Arabian Drilling Company considers the acquisition of Schlumberger's Saudi drilling business.
Khobar-based Arabian Drilling Company (ADC) will acquire the Saudi drilling business of Schlumberger, Al Maaal reported.
ADC is a partnership between the Industrialization & Energy Services Company (TAQA), a Saudi Joint Stock company and Services Petroliers Schlumberger, which owns the remaining 49%, according to ADC's website.
AMERICAS
T-Mobile and Sprint are lobbying regulators to win US approval for the tie-up.
T-Mobile US Chief Executive John Legere, Sprint executive chairman Marcelo Claure, T-Mobile US chief operating officer Michael Sievert, and other senior executives met with Federal Communications Commissioner Jessica Rosenworcel on Thursday.
In a presentation made public on Monday, the firms said they would “focus on taking share from Verizon and AT&T through lower prices.”
If completed, the $59bn merger would create a carrier with 127m customers that would be a formidable competitor to the No.1 and No.2 wireless players, Verizon Communications and AT&T, respectively.
Sprint is advised by Centerview Partners, JP Morgan, Mizuho Securities, SMBC Nikko, The Raine Group, Goodwin Procter, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. Deutsche Telekom is advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, DLA Piper, Hogan Lovells, Latham & Watkins, Richards Layton and Finger, and Wachtell Lipton Rosen & Katz. Softbank is advised by Morrison & Foerster.
CPF acquired Canadian pork producer HyLife for $372m.
Charoen Pokphand Foods, Thailand’s largest agriculture conglomerate, acquired Canadian pork producer HyLife Investments for C$498m ($372.7m) to expand its North American business. The acquisition would make CPF a 50.1% owner of HyLife, with the remainder held by its Japanese partner, Itochu, CPF said in a statement.
CPF said the investment would give it access to a pork production base an opportunity to expand in North America and premium markets such as Japan.
Montage Partners acquired MetalFx from Avista Corporation. (FS)
Montage Partners, a Scottsdale, Arizona-based private equity firm, acquired Advanced Manufacturing and Development, dba METALfx, from a subsidiary of Avista Corporation. Financial terms were not disclosed.
METALfx’s existing management team will continue to lead the company and will own a significant equity stake in the business. METALfx is a leading provider of precision sheet metal fabrications, enclosures, assemblies, and complex wood composite components across a variety of industries, including technology, healthcare, industrial, and others.
“Today marks the beginning of an exciting time for METALfx, and we are delighted to be working with Montage Partners to reach our next phase of growth as an independent company. With Montage Partners’ support and guidance, we look forward to delivering more value to our customers through enhanced capabilities and engineering-driven solutions.” Henry Moss, METALfx President, and shareholder.
Montage Partners was advised by Osborn Maledon, Asenti Diligence Partners. Avista Corporation was advised by Davis Wright Tremaine. METALfx was advised by Meridian Capital. Enterprise Bank & Trust and Eagle Private Capital provided debt financing to support the transaction.
Jacobs acquired KeyW, a US security consultancy for $815m.
Jacobs has entered into a definitive merger agreement according to which Jacobs will acquire KeyW for $11.25 per share in cash. The transaction has an enterprise value, net of tax assets, of approximately $815m, including an estimated $272m of KeyW net debt. The transaction value represents an enterprise value-to-expected 2020 adjusted EBITDA multiple of c.10x, assuming full run-rate cost synergies of $15m.
This transaction directly aligns with Jacobs' Aerospace, Technology and Nuclear (ATN) transformational strategy of delivering innovative and unique, mission-oriented solutions for highly technical and high consequence government priorities, and further positions Jacobs as a leader in high-value Government Services. It allows ATN to expand further its leading portfolio of innovative solutions to its clients.
KeyW is a leading national security provider of advanced engineering and technology solutions for the Intelligence, Cyber and Counterterrorism communities. KeyW brings a unique and differentiated mission-focused technology and capabilities in the areas of intelligence, surveillance, and reconnaissance (ISR); cyber operations and training; and mission-critical IT and analytics.
"Jacobs' global reach and proven track record executing large complex enterprise contracts provide a powerful platform to unleash KeyW's complementary rapid technology development. We are positioned to further accelerate KeyW's success in leveraging its unique technical solutions and drive value creation for shareholders and customers alike, including a multi-billion-dollar space opportunity delivering next-generation intelligence and analytics solutions." Steve Demetriou, Jacobs Chair and CEO.
Unilever acquired OLLY Nutrition.
Unilever, a British-Dutch transnational consumer goods company specializes in products including food and beverages, cleaning agents, beauty products, and personal care products, has signed an agreement to acquire, OLLY, a premium US-based wellbeing business in the vitamins, minerals, and supplements (VMS) category. Financial terms were not disclosed.
OLLY will continue to be based in San Francisco and managed by Eric Ryan, who will assume the role of Chief Growth Officer, exploring further opportunities in the health and wellbeing area; and Gerry Chesser, current COO of OLLY, who will take on the role as CEO of OLLY.
“We are thrilled to work with Unilever to grow the OLLY brand and amplify our mission, culture, and commitment to helping people feel happy inside out,” Eric Ryan, Olly Co-founder.
Greenbrier to acquire the manufacturing business of American Railcar Industries from ITE Management for $430m.
Greenbrier Companies, a leading international supplier of equipment and services to global freight transportation markets, agreed to acquire the manufacturing business of American Railcar Industries from ITE Management, an investment firm, for $430m.
The acquisition will diversify Greenbrier's American manufacturing presence, as well as broaden its product offerings with the addition of complementary designs. Greenbrier will acquire two railcar manufacturing facilities in Arkansas and five other operations that provide a range of railcar component and parts supply.
"With a broader product portfolio and efficiencies extending from a larger operations base in America, we see this acquisition as a unique opportunity for Greenbrier to extend its position as a global leader in railcar manufacturing, with an increase in our total US-based production and an expansion of our American-based workforce. We are especially pleased to work with ITE on this acquisition since we already enjoy a strong relationship with them as a valued syndication customer." William A. Furman, Greenbrier, Chairman and CEO.
Greenbrier is advised by Bank of America Merill Lynch, Goldman Sachs, and Sullivan & Cromwell. ITE Management was advised by Deutsche Bank and Willkie Farr & Gallagher.
Chevron asks Petrobras to prove Texas refinery operational.
Chevron has told Petrobras it wants proof a Pasadena, Texas, a refinery will function as promised before it takes possession of the facility.
Chevron announced in January it would buy the 112k barrel-per-day Pasadena Refining System (PRSI) refinery owned by Petrobras for $350m. The transfer of ownership to Chevron was put on hold on April 2, one day after planned overhauls began on the refinery, Reuters reported.
“We continue to expect the PRSI transaction to close this quarter,” said Chevron spokesman Braden Reddall on Monday.
MiddleGround Capital acquires 13 manufacturing facilities from Peterson Springs. (FS)
MiddleGround announced the closure of its transactions in its inaugural private equity fund. MiddleGround announced the acquisition of Peterson Spring, the leading manufacturer of springs. The deal involves the acquisition of the 13 specialty spring manufacturing facilities throughout North America and the United Kingdom. Financial terms were not disclosed.
MiddleGround team will partner with Peterson’s management team and employees to help the company increase operational efficiency and provide necessary resources to fuel the company’s long-term growth.
“We are honored to continue the legacy that the Peterson family began over 100 years ago,” John Stewart, MiddleGround Co-founder.
Medline to acquire NAMIC from AngioDynamics for $167m.
Medline, a manufacturer, distributor, and solutions provider focused on improving the overall operating performance of healthcare, agreed to acquire NAMIC from AngioDynamics, a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology, for $167m.
The transaction consists of AngioDynamics’ NAMIC brand and its extensive offering of manifolds, contrast management systems, closed fluid systems, guidewires, disposable transducers, and interventional accessories. Upon completion of the transaction, Medline will acquire AngioDynamics’ primary Glens Falls, New York manufacturing facility, including all related manufacturing jobs and the sales & marketing teams that support the NAMIC business.
"We are excited that this strategic transaction will enable us to accelerate highly-focused investments in our key therapeutic areas including Oncology and Thrombus Management.” Jim Clemmer AngioDynamics President.
Barclays and Cadwalader Wickersham & Taft are advising AngioDynamics.
On Semiconductors acquires a manufacturing facility from GlobalFoundries. (RE)
On Semiconductors and GlobalFoundries have entered into a definitive agreement for ON Semiconductor to acquire a 300mm fabrication facility located in East Fishkill, New York. The total consideration for the acquisition is $430m, of which $100m has been paid at the signing of the definitive agreement, and $330m will be paid at the end of 2022.
The agreement also includes a technology transfer and development agreement and a technology license agreement. ON Semiconductor will also have immediate access to advanced CMOS capability including 45nm and 65nm technology nodes. These processes will form the basis for future technology development at ON Semiconductor.
APAC
Blackstone to acquire a 51% stake in Essel Propack from Ashok Goel Trust for $460m.(FS)
Blackstone Group agreed to acquire a 51% stake in Essel Propack, a leading global specialty packaging company and the largest global manufacturer of laminated tubes, from Ashok Goel Trust for $460m. Ashok Goel Trust and its affiliates currently hold about 57% of Essel Propack.
"EPL has decade-long relationships with marquee global customers and a track record of product innovation. Leveraging the ongoing industry shift to laminated tubes and EPL's leadership position in oral care, our plan is to accelerate growth in fast-growing end categories such as beauty, cosmetics, and pharmaceuticals. EPL is a leader in emerging markets and well-positioned to benefit from consumption growth across categories. This investment follows Blackstone's long-standing belief and track record in the B2B2C sector." Amit Dixit, Blackstone Senior Managing Director and Head of Private Equity in India.
Blackstone is advised by KPMG, Simpson Thacher & Barlett, and Trilegal. Ashok Goel Trust is advised by PwC, Morgan Stanley, Baker McKenzie, and Khaitan & Co.
Global Invacom attempted to acquire Tactilis.
Global Invacom, a satellite communications equipment provider, attempted to acquire Tactilis for $200m.
Malaysia‐based Tactilis manufactures and distributes biometric system‐on‐card solutions. The deal was terminated on April 23, 2019.
“The current satellite communications equipment business remains profitable and will remain an important activity of the Group even after the proposed acquisition. Through the proposed acquisition of Tactilis, we can venture into the high‐growth, high‐tech biometrics security industry. The fit between the two companies is synergistic as Tactilis will be able to achieve faster go‐to‐market because of Global Invacom’s existing manufacturing and marketing footprint as well as our access to global capital markets. We look forward to shareholder support of this transaction which we are confident will enhance value.” Tony Taylor, Global Invacom Executive Chairman.
Global Invacom is advised by Mirabaud Securities, finnCap, Vigo Communications, and WeR1 Consultants.
CapitaLand divested StorHub self-storage business for S$185m. (FS)
CapitaLand has divested its interests in a group of companies that own and manage the Group’s self-storage business StorHub to an unrelated third party. The transaction is based on an agreed value of S$185m ($136m) for StorHub’s portfolio of properties.
StorHub is one of Singapore’s largest self-storage networks, with a presence in China. Its portfolio comprises 12 storage facilities – 11 in Singapore and one in Shanghai – with a total lettable area of approximately 800k square feet.
“The divestment of StorHub is in line with CapitaLand’s disciplined approach towards capital recycling. Our portfolio optimization allows us to prioritize our capital allocation to our core markets and sectors. In 2018, CapitaLand divested S$4bn ($2.9bn) worth of assets and deployed S$6.11bn ($4.5bn) into new investments. We will stay disciplined in recycling our assets for reinvestment and capital redeployment, with an annual divestment target of at least S$3bn ($2.2bn)," Mr. Jason Leow, President & Chief Executive Officer of Singapore & International, CapitaLand Group.
Bank Central Asia to acquire Bank Royal Indonesia for $72m.
Bank Central Asia, one of the largest bank in Indonesia, agreed to acquire Bank Royal Indonesia, which offers banking products and services, for $72m. The deal was signed on April 16.
With this transaction, BCA aims to support the Indonesian banking architecture program and to further develop the company's banking business.
Nissan to reject new cooperation offer from Renault.
Nissan Motor will reject a management integration proposal from French partner Renault and will call for a balanced capital relationship, Nikkei reported.
Nissan's management feels the Japanese company has not been treated as an equal of Renault under existing capital ties, and a merger would make this inequality permanent.
The outlook for the alliance - one of the world’s top automaking partnerships - has been in focus since the arrest in November of its main architect, Carlos Ghosn, for financial misconduct. The former Nissan and Renault chairman has denied the charges against him and has said he was the victim of a boardroom coup by Nissan executives opposed to closer ties.
Luckin Coffee to raise up to $800m in US IPO.
Luckin Coffee, the Chinese challenger to Starbucks, filed on Monday for a US initial public offering (IPO) through which, Reuters reported, it is looking to raise up to $800m.
The Beijing-based coffee chain set a placeholder amount of $100m to indicate the size of the IPO and did not disclose the number of shares it would offer, a filing with the U.S. Securities and Exchange Commission showed.
Luckin Coffee, which has been expanding at breakneck speed, currently operates 2.4k stores in 28 Chinese cities and plans to open 2.5k new stores this year with the goal of displacing Starbucks as China’s largest coffee chain in the process.
TCI, a health food maker considers acquisition for expansion.
TCI is in talks with a health food maker about a potential acquisition this year that’s aimed at diversifying its production base.
The company hopes consumers will be more interested in the products it makes if it has factories outside China and Taiwan, executive deputy general manager William Liao said in an interview on April 17. TCI is a contract manufacturer of dietary supplements, health drinks and facial masks for other companies.
“China will be our growth driver in the future as it is getting older and richer. Our growth will benefit from China’s consumption upgrade.” Liao said TCI may get a deal done this year if all goes well. TCI plans to use its cash for the deal and has NT$4bn ($130m) on hand.
India's IL&FS to divest wind assets to GAIL for $688m.
Infrastructure Leasing and Financial Services (IL&FS) said it has agreed to sell its 874MW operational wind energy portfolio to state-run gas utility GAIL for $688m. The sale will close in three weeks, IL&FS said.
The sale is subject to various approvals, including from a foreign equity partner in the assets and company law tribunals. Another 104 MW of under-construction wind power project, a solar power portfolio of 300MW and renewable energy EPC business will not be part of the deal. A spokesperson for IL&FS said a separate sale process is on for the residual renewable energy businesses.
eBay considers $170m investment in Indian online retailer Paytm Mall.
eBay is in discussions to lead a $160-170m strategic investment in online retailer Paytm Mall as it eyes opportunities in offline-to-online commerce and payments space in India, The Economic Times reported.
Paytm founder Vijay Shekhar Sharma had secured the board’s approval to bring in a new strategic investor in December last year, as the firm did not expect a fresh capital infusion from existing investors Alibaba and SoftBank.
The investment, which could be eBay’s third bet in India after Flipkart and Snapdeal, is likely to be announced next month. The US e-commerce company will, however, continue to run its independent online portal in India.
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