Blackstone Group agreed to acquire the industrial real estate assets and affiliated industrial operating platform from Colony Capital, a leading global investment management firm with assets under management of $55bn, for $5.9bn.
“This acquisition of high-quality warehouses demonstrates our continued strong conviction in logistics and positive e-commerce trends. As retailers continue to shorten delivery times and expand their last-mile footprints, we believe warehouses in dense population centers will continue to experience outsized demand growth.” Nadeem Meghji, Head of Real Estate Americas at Blackstone.
Simpson Thacher & Bartlett is advising Blackstone. CBRE, Eastdil Secured, Morgan Stanley, Willkie Farr & Gallagher, Addo Investor Relations and Blicksilver Public Relations are advising Colony Capital.
Roche, a global pioneer in pharmaceuticals and diagnostics, extended its offer to buy Spark Therapeutics, a fully integrated, commercial gene therapy company, this time until Oct. 30, as US and British regulators continue to scrutinize the $4.8bn deal.
The terms and conditions remain unchanged for the deal, which analysts have said may be hung up on competition concerns over what a combination would mean for the very competitive market for hemophilia A treatments.
Centerview Partners, Cowen & Company and Goodwin Procter are advising Spark. Citigroup and Davis Polk & Wardwell are advising Roche.
Swedish Orphan Biovitrum, an international specialty biopharmaceutical company dedicated to rare diseases, agreed to acquire Dova Pharmaceuticals, a clinical-stage pharmaceutical company, for $915m. The upfront consideration of $27.50 per share represents a premium of 36% to Dova’s closing price on September 27, 2019.
“The cadence of upcoming launches and approvals across indications and regions that Doptelet provides, enables us to further accelerate growth in our hematology franchise. There is a large unmet medical need within thrombocytopenia and for us this is a great opportunity to be able to give patients access to new and improved treatments. Furthermore, we are excited to welcome the 125 professionals from Dova who will greatly strengthen Sobi’s hematology infrastructure and broaden our value chain in the US.” Guido Oelkers, Ph.D., President and Chief Executive Officer of Sobi.
Evercore, Jefferies & Company, Cooley and Westwicke are advising Dova Pharmaceuticals. Morgan Stanley, Cravath Swaine & Moore and Mannheimer Swartling are advising Sobi.
New Media Investment Group, one of the largest publishers of locally-based print and digital media in the United States, set a date for the special meeting of its shareholders to, among other things, consider and vote on a proposal to acquire and merge with Gannett, an innovative, digitally focused media and marketing solutions company, for $1.4bn. The deal was announced in August 2019.
The completion of the merger remains subject to other customary closing conditions, including receipt of approval from New Media stockholders and Gannett stockholders and regulatory clearance from the European Commission. The merger is expected to close by the end of 2019.
Goldman Sachs, Greenhill & Co, Nixon Peabody and Skadden Arps Slate Meagher & Flom are advising Gannett. Credit Suisse, Jefferies & Company, Wilson Sonsini Goodrich & Rosati and Cravath Swaine & Moore are advising New Media Investment Group. Latham & Watkins is advising Jefferies & Company. Apollo Global Management is providing debt financing.
Sempra Energy, a North American energy infrastructure company based in San Diego, agreed to sell a stake in its Peruvian business to China Yangtze, the largest publicly listed power company in China, for $3.6bn.
"We could not be more pleased about today's announcement. It directly supports our mission of building North America's premier energy infrastructure company. Proceeds from this transaction will be used to strengthen our balance sheet and meet the growing capital needs of our core utilities in California and Texas." Jeffrey W. Martin, chairman and CEO of Sempra Energy.
Lazard, Bank of America Merrill Lynch and White & Case are advising Sempra Energy. Citigroup is advising China Yangtze.
KPS Capital-backed Autokiniton Global Group, a leading North American supplier of metal-formed components and complex assemblies to the automotive industry, closed its $900m acquisition of Tower International, a leading manufacturer of engineered automotive structural metal components and assemblies. The all-cash transaction represented a 70% premium to Tower's closing stock price on July 11, 2019.
"We are extremely pleased to reach an agreement with AGG on a mutually beneficial transaction that creates substantial value for Tower stockholders, customers, and colleagues." Jim Gouin, Tower President.
Houlihan Lokey, JP Morgan and Lowenstein Sandler advised Tower International. Bank of America Merrill Lynch, Goldman Sachs and Paul Weiss Rifkind Wharton & Garrison advised the buyers. Simpson Thacher & Bartlett advised JP Morgan.
NorthStar Realty Europe, a real estate investment trust, completed its merger deal with AXA Investment Managers, a global asset manager. The deal was announced in July 2019. In connection with the completion of the merger, NRE’s common stock will be delisted from the New York Stock Exchange.
“The SRC ran a comprehensive strategic review process, considering all options and engaging with a wide group of potential buyers. We are pleased that the process has culminated in a transaction that unlocks the significant value we have created for NRE stockholders since inception, realizing an approximate 16% IRR assuming the estimated per share merger consideration of $17.03.” Mahbod Nia, Chief Executive Officer and President of the Company.
Goodwin Procter, Goldman Sachs, Clifford Chance, Fried Frank Harris Shriver & Jacobson, Sullivan & Cromwell, Venable and Vinson & Elkins advised NorthStar Realty. KPMG, CBRE, Deutsche Bank and DLA Piper advised AXA.
Ocugen, a clinical-stage biopharmaceutical company, merged with Histogenics Corporation, a regenerative medicine company. Financial terms were not disclosed. The deal was announced in April 2019.
“This transaction with Ocugen reflects the continued commitment of our management team and Board of Directors to deliver value to stockholders and make a difference in patients’ lives. Following a thorough review of strategic alternatives for Histogenics and the NeoCart program, we have determined that a merger with Ocugen will enable Histogenics investors to participate in Ocugen’s broader pipeline of ocular disease and gene therapy opportunities, including several late-stage clinical candidates, and a robust preclinical platform. In addition, we plan to continue to evaluate opportunities to realize additional value from the discontinued NeoCart program over the coming weeks.” Adam Gridley, President of Histogenics.
Canaccord Genuity and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian advised Histogenics Corporation. Chardan and Morgan Lewis & Bockius advised Ocugen.
Italmatch Chemicals, a leading global specialty chemical group, agreed to acquire Water Science Technologies, a leading blender and chemical solutions provider for the North American oil & gas and industrial water treatment industries. Financial terms were not disclosed.
“This acquisition represents another important step for Italmatch growth in the North American market, in line with the Group objectives in North America in its strategic sectors, starting from industrial water solutions, where the companies have a complementary product range. It will also provide a solid logistic base to better serve our oil & gas customers." Danny McCaul, CEO Italmatch Chemicals USA.
Warren Averett, Grace Matthews and Butler Snow are advising Water Science Technologies. KPMG, Giovannelli e Associati, Wuersch & Gering, Barabino & Partners and Bennett Thrasher are advising Italmatch Chemicals.
Sumitomo, one of the largest Japanese business groups, agreed to acquire the South American unit of Nufarm, an Australian agricultural chemical company headquartered in Melbourne, for $803m in cash.
"We have a very capable management and commercial team in South America who have built a strong distribution network and loyal customer base. This is reflected in the growth and stabilization of earnings in the business over the past five years. This transaction represents compelling value for Nufarm shareholders and will provide an opportunity to refocus on other parts of the business where we can generate higher margins and stronger cash flow." Nufarm Managing Director and CEO, Greg Hunt.
Citigroup is advising Sumitomo. PwC, UBS and Arnold Bloch Leibler are advising Nufarm.
NextEra Energy Partners, a Fortune 200 energy company, agreed to acquire Meade Pipeline, which owns a 39.2% interest in the Central Penn Line, a 185-mile intrastate natural gas pipeline that is an integral part of a pipeline system regulated by the Federal Energy Regulatory Commission, for $1.4bn.
"Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%. This is NextEra Energy Partners' second third-party acquisition, which helps extend the partnership's best-in-class long-term growth visibility and further strengthen its investor value proposition. This transaction, combined with the incremental cash available for distribution generated by our previously announced repowering projects and the purchase of the outstanding Genesis debt, is expected to support our long-term growth objectives without the need for additional asset acquisitions until 2021. NextEra Energy Partners remains as well-positioned as ever to deliver on its long-term growth objectives and continue its track record of delivering value to limited partner unitholders." Jim Robo, chairman and chief executive officer of NextEra Energy Partners.
Citigroup, MUFG, Wells Fargo Securities and Locke Lord are advising NextEra Energy Partners.
Francisco Partners, a leading technology-focused private equity firm, agreed to acquire Orchard Software, a privately owned company specializing in developing and supporting award-winning Laboratory Information Systems that enhance clinical and pathology laboratory workflow, as well as support laboratory outreach and point-of-care testing. Financial terms were not disclosed.
"Orchard has been the pioneer in the LIS industry, developing market-leading products and maintaining strong, long-standing customer relationships. They are well-positioned to continue to drive product innovation in the LIS market, and we are excited about the opportunity in POCT and partnering with the team to accelerate the company to new levels of growth and impact for laboratorians across the US." Jonathan Murphy of Francisco Partners.
Brentwood Capital Markets and Bose McKinney & Evans are advising Orchard. Wilson Sonsini Goodrich & Rosati and Zono Group are advising Francisco Partners.
Gryphon Investors agreed to sell ECG Management Consultants, which provides management consulting services in the areas of strategy, finance, operations and technology, to Siemens Medical Solutions USA, a subsidiary of Siemens Healthineers. Financial terms were not disclosed.
"The ECG investment is a great example of Gryphon's strategy of backing talented management teams and industry executives who are building market leaders, and we have enjoyed working closely with this team as they evolved their business model, pursued organic growth, and made strategic add-on acquisitions." Nick Orum, President and Head of Gryphon's Healthcare Group.
William Blair & Co and Kirkland & Ellis are advising ECG. Blicksilver Public Relations is advising Gryphon.
Transportation Insight, a leader in Enterprise Logistics solutions and services for the end-to-end supply chain, agreed to acquire Transportation Specialist's Group, a technology-enabled transportation management business. Financial terms were not disclosed.
"Transportation Insight's long-term strategy of supplementing its organic growth with selective strategic acquisitions has helped the company grow to nearly $2.3bn in gross revenue reported at the end of 2018, as seen in the firm's recent 10th place position among the Inc. 5000's largest companies based on revenue. By acquiring TSG, Transportation Insight is continuing a core merger and acquisition strategy of buying well-positioned enterprise logistics businesses with a strong customer base." Transportation Insight Founder and Chairman Paul Thompson.
Stillwater Capital Corporation and Stillman Welch are advising Transportation Specialist's Group. K&L Gates is advising Transportation Insight.
Private equity firm LLR Partners invested in Corestream, the leading platform for connecting employees with voluntary benefits. Financial terms were not disclosed.
"Corestream is leading a rapidly evolving market, where employers look to offset high deductible health plans, address gaps in insurance coverage, meet the modern workforce's demand for voluntary benefits, and offer them at scale, which legacy solutions are unable to do. The company's 50% compound annual growth rate and world class Net Promoter Score of 86 indicated to us that Neil and his team created one of the most innovative technology platforms in the space and a better way to connect employees to their benefits." Sasank Aleti, principal at LLR Partners.
Bhava Communications is advising Corestream.
Brookfield-backed Westinghouse Electric Company, the world's pioneering nuclear energy company, agreed to acquire Civil Nuclear Systems and Services business, which offers services from engineering and software and data solutions to maintenance optimization and field services, from Rolls-Royce, a British multinational engineering company. Financial terms were not disclosed.
"Creating customer value and supporting our customers' operations is a key driver for Westinghouse. Acquiring Rolls-Royce will strengthen our ability to serve the nuclear operating fleet through an expanded presence in our core business while adding new digital offerings. This acquisition is an important step in our growth strategy. We look forward to welcoming the employees of Rolls-Royce to Westinghouse." Patrick Fragman, Westinghouse president and chief executive officer.
Private equity firm Palm Beach Capital invested in J. Polep, one of the nation’s largest full-line wholesale distributors to the convenience and grocery store industry. Financial terms were not disclosed.
“We are excited about the future growth of J. Polep Distribution Services and our partnership with Palm Beach Capital. Our focus will remain our steadfast dedication to the customers we service and to the products they deliver, with the goal of making sure each of our customers and vendors achieve long-term success. Business will run as usual at J. Polep and this new partnership with Palm Beach Capital will only enhance our capabilities and unparalleled customer service.” Eric Polep, President and Chief Executive Officer.
Palm Beach Capital-backed Lyneer Staffing Solutions, a nationally recognized, strategic staffing firm, agreed to acquire Anchor Staffing, a mid-Atlantic regional staffing firm that specializes in commercial and information technology staffing. Financial terms were not disclosed.
“We are excited to have Anchor Staffing become part of the Lyneer family and increasing our national growth and service capabilities throughout the Mid-Atlantic region.” Todd McNulty, Chief Executive Officer and Co-Founder.
Logitech International, a Swiss provider of personal computer and mobile peripherals, agreed to acquire Streamlabs, a leader in software and tools for live streaming, for $89m.
“We’ve been fans of Streamlabs and their software since we started partnering with them over two years ago. Their industry-leading software is complementary to our existing gaming portfolio, and we believe we can do even greater things together.” Ujesh Desai, general manager and vice president of Logitech G.
World's wealthiest families are looking at long-term private equity investments. (FS)
According to a
Bloomberg report, wealthy families are interested in making more long-term private equity investments. The desire for direct private deals isn’t new, but the urgency among the super-rich to diversify and find long-term, benchmark-beating investments outside public equity markets is mounting.
Wealthy families looking at private equity investing are more interested in firms that let them co-invest outside of the buyout fund, said Andrew Fay, CIMA, head of the Family Office Segment Fidelity Investments, because their time horizon tends to be far longer.
Rio Tinto is not considering Canadian iron ore unit sale, IPO.
Anglo-Australian miner Rio Tinto cancelled plans for the sale or floatation of its Canadian iron ore business, following failed attempts to find buyers, the
Wall Street Journal reported.
Rio Tinto, which owns 59% stake in Iron Ore Co of Canada, was unable to settle on a suitable price with potential buyers.
US-China trade war fear hits global M&A as it sinks to a three-year low.
Global mergers and acquisitions plunged 16% year-on-year to $729bn in the third quarter, the lowest quarterly volume since 2016, as growing economic uncertainty has decreased the risk of companies considering deals.
"M&A volumes have dissipated because there are concerns that risks may be rising in several spots, in markets and elsewhere," Michael Carr, Goldman Sachs Global Co-head of M&A.
Dealmakers said a mismatch between buyer and seller valuation expectations often proved hard to bridge, with some deals failing to reach the finish line.
PE mega-funds outperform small funds. (FS)
Private equity mega-funds (of at least $5 bn) have tended to outperform smaller funds over the past 20 years. Mega-funds are only raised by firms that have outperformed over time.
According to
Pitchbook article, the biggest firms are almost by definition some of the best firms, at least perception-wise, since they had to justify their growth to LPs over several funds. Not every top-performing firm opts to grow that large — but the ones that do go on to raise mega-funds give themselves good odds of maintaining performance as they grow.
