Blackstone Group agreed to acquire US logistics assets of GLP, a Singapore-based investment holding company, which owns, manages, and develops logistics facilities, for $18.7bn. This overall transaction totals 179m square feet of urban, infill logistics assets, nearly doubling the size of Blackstone’s existing US industrial footprint.
Ken Caplan, Global Co-Head of Blackstone Real Estate, commented: “Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand. Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high-quality portfolio.”
Citigroup, Eastdil Secured, Goldman Sachs and Kirkland & Ellis are advising GLP. Bank of America Merrill Lynch, Barclays, Deutsche Bank, JP Morgan, Morgan Stanley and Simpson Thacher & Bartlett are advising Blackstone. Citigroup, Eastdil Secured and Goldman Sachs are providing financing.
Infineon Technologies, a German semiconductor manufacturer, agreed to acquire Cypress Semiconductor Corporation, an American semiconductor design and manufacturing company, for €9bn ($10bn). The offer price represents a 46% premium to Cypress’s unaffected 30-day volume-weighted average price during the period from 15 April to 28 May 2019.
Reinhard Ploss, CEO of Infineon, said: “The planned acquisition of Cypress is a landmark step in Infineon’s strategic development. We will strengthen and accelerate our profitable growth and put our business on a broader basis. With this transaction, we will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world. This will open up additional growth potential in the automotive, industrial and Internet of Things sectors.”
Morgan Stanley and Simpson Thacher & Bartlett are advising Cypress. Bank of America Merrill Lynch, Credit Suisse, JP Morgan, Freshfields and Kirkland & Ellis are advising Infineon. Bank of America Merrill Lynch, Credit Suisse and JP Morgan are providing financing.
Infrastructure Investments Fund, an investment vehicle advised by JP Morgan Investment Management, is set to acquire El Paso Electric, a Texas-based public utility company, engaging in the generation, transmission, and distribution of electricity, for $4.3bn. IIF will purchase EPE for $68.25 per share in cash representing an enterprise value of approximately $4.3bn, including EPE’s net debt. The per share purchase price represents a 17% premium to EPE’s closing price on May 31, 2019.
“As we look to the future and the long-term investment required to meet the growing energy needs of our communities, we are confident IIF is the ideal partner for our region and EPE. This agreement demonstrates that IIF values local job retention and growth; creating a sustainable path to enhance our renewable energy resources and protecting the environment; and treating our 1,100 employees, their families and our customers with transparency and respect,” said Mary Kipp, President and CEO of El Paso Electric. “Our partnership brings value to everyone; our customers, shareholders, our employees and community. This is a tremendous opportunity to scale and prepare the Company for a clean energy future that is local and sustainable.”
Lazard and Baker Botts are advising El Paso Electric. Bank of America Merrill Lynch and Skadden Arps Slate Meagher & Flom are advising JP Morgan. Bank of America Merrill Lynch is providing financing.
West Street Capital Partners, a fund managed by the Merchant Banking Division of Goldman Sachs, agreed to acquire Capital Vision Services, which provides management services to full-service optometry practices, from Atlas Partners and Caisse de dépôt et placement du Québec for $2.7bn.
“We are very excited to announce this transaction and mark the beginning of the next chapter of CVS’ success,” said Jo Natauri, Global Head of Healthcare Investing for the Goldman Sachs Merchant Banking Division. “We look forward to partnering with this talented management team and building on their foundation of commercial and operating excellence. CVS has a proven consumer-directed healthcare model that champions optometrists and promotes eye health. We are proud to support the Company’s continued growth and pleased about this new investment, which expands our portfolio in the healthcare services sector.”
Simpson Thacher & Bartlett is advising Goldman Sachs. Kirkland & Ellis is advising Capital Vision Services, Atlas Partners and CDPQ.
OpenGate Capital completed the acquisition of Sargent & Greenleaf, which manufactures mechanical and electronic locks for safes, vaults, and safe deposit boxes, from Stanley Black & Decker. The transaction marks the third investment completed in May through OpenGate Capital’s second institutional fund. The deal was first announced in January. Financial terms were not disclosed.
Andrew Nikou, OpenGate Capital’s founder and CEO, commented: “The acquisition of S&G from Stanley Black & Decker is an important investment for our firm. The S&G business is well-suited for our newly launched OGx capability that will drive innovation into the business through technological enhancements as part of our full potential operational strategy. Secondly, the investment represents our strength in partnering with corporations divesting non-core assets. Since 2005 we have been a trusted strategic partner for many of the world’s leading corporations and we’re proud to have the confidence of Stanley Black & Decker to drive the next era of growth for S&G.”
KPMG, Morgan Lewis & Bockius and Sitrick and Company advised OpenGate.
Welsh, Carson, Anderson & Stowe, a private equity company, agreed to acquire Green Street Advisors, the premier provider of research, data and analytics to the commercial real estate industry in North America and Europe, from Golden Gate Capital. Financial terms were not disclosed.
“With their partnership, we intend to accelerate investments in product innovation, data, sales and customer success to better serve our current customers, further penetrate existing end markets and expand into adjacent end markets. At the same time, we want to express our appreciation to GGC. We are proud of the accomplishments throughout our partnership and grateful for their stewardship and support." Craig Leupold, Green Street's Chief Executive Officer.
WCAS was advised by Kirkland & Ellis. GSA and GGC were advised by Evercore and Kirkland & Ellis.
White Mountains Insurance Group, a Bermuda-domiciled financial services holding company, made a minority investment in Elementum Advisors, an SEC-registered investment advisor focused on managing investment portfolios exposed to natural catastrophe event risk. The terms were not disclosed.
"We are thrilled by White Mountains' investment in Elementum," said Tony Rettino and John DeCaro, Founding Principals at Elementum. "We believe it will enable us to continue to provide high-quality investment management services to our investors and fortify our business operations and franchise."
Cravath Swaine & Moore advised White Mountains Insurance Group. Kirkland & Ellis and TigerRisk advised Elementum Advisors.
Ashford, which provides asset management and advisory services, acquired Remington's Hotel Management Business for $285m payable in new Series D Convertible Preferred Stock.
"The proposed acquisition of Remington's high-margin Hotel Management business will immediately add scale, diversification and an enhanced competitive position for Ashford in the hospitality industry, while also expanding the breadth of services we offer to our advised REITs," commented Monty J. Bennett, Ashford's Chairman and Chief Executive Officer. "With deep industry experience and mutual exclusivity agreements in place with our advised REITs, we believe the acquisition of Remington's Hotel Management business represents a compelling opportunity for Ashford to further diversify its earnings stream and, moving forward, the potential to expand business to other third-party clients."
Janney Montgomery Scott, Locke Lord and Norton Rose Fulbright advised Ashford. Robert W Baird and Baker Botts advised Remington.
US antitrust regulators are set to approve the American Airlines, Qantas joint venture, which was announced in February 2018. The department is expected to issue an order tentatively approving the joint business agreement and tentatively granting antitrust immunity. Airline operators American Airlines and Qantas Airways filed for a joint venture in 2016 but were rejected in November 2016 by former President Barack Obama’s administration amid opposition from rival carriers Hawaiian Airlines and JetBlue Airways Corp.
American Airlines spokeswoman Shannon Gilson said that the airline feels “we have made a compelling case about the benefits of the joint business for customers, and there was no opposition raised to our proposal.”
Foursquare, a technology company, agreed to acquire Placed, a mobile advertising intelligence provider, from Snap, a camera application provider. The deal was backed by a $150m investment by The Raine Group. Financial terms were not disclosed.
"Placed will grow even stronger with access to Foursquare’s core Pilgrim technology and mass of first-party data. For instance, Placed will leverage Foursquare’s global map of 105m POI’s across over 190 countries and can immediately tap into Foursquare’s measured audience in the US of over 100m monthly devices." Jeff Glueck, Foursquare CEO.
Palladium Equity Partners-backed GoodWest Industries, a national provider of coffee condiments and an innovator in the rapidly growing iced coffee and cold brew product segments, acquired Skinny Mixes, a branded provider of low-calorie coffee syrups and flavorings, whipped foam toppings and beverage mixes. Financial terms were not disclosed.
"We look forward to broadening GoodWest's beverage platform with existing and new Skinny Mixes products, including new coffee condiments, and investing further in product development. Jordan, the founder of Skinny Mixes, is a passionate innovator, and we welcome her leadership and insights as we offer our convenience, foodservice and other customers a range of premium, authentic beverages, mixes and syrups. Skinny Mixes is the perfect complement to our existing product portfolio of coffee creamers, and enhancements, and specialty cold coffees." Rick Lawlor, CEO GoodWest.
Midwest Mezzanine Funds, a private equity firm, and MC Controls, investment company, acquired a controlling interest in Dorsett Technologies, a provider of industry-leading Supervisory Control and Data Acquisition systems used to monitor, secure and control water, wastewater, stormwater, and energy infrastructures. Financial terms were not disclosed.
"Over the past six months I have worked closely with Dorsett Technologies' senior management and I am excited to work with that team to accelerate the growth of the company in the controls & automation sector." Mason Miller, MC Controls owner.
Providence Strategic Growth, the growth equity affiliate of Providence Equity Partners invested in Validity, a software as a service based data integrity platform that enables professionals in resolving complexities of data management and data compliance. Financial terms were not disclosed. The new funding will accelerate Validity’s go-to-market expansion, support the development of new solutions, and fuel both organic and inorganic growth.
“This deal is a key milestone for Validity and a clear validation of our strategy and business model. Since we started Validity a little over a year ago, we’ve charted an ambitious course to bring together leading companies that have solved some of the most complex challenges around customer data. Providence’s investment and deep commitment to our mission will help us drive more innovation, expand our commercial footprint, and welcome even more innovative companies into the Validity family.” Mark Briggs, Validity CEO.
Sagewind Capital-backed GCOM Software acquired GANTECH, a leading provider of consulting and technical services. Financial terms were not disclosed.
"The addition of GANTECH brings critical managed service delivery experience to GCOM. GANTECH's unmatched client knowledge, strong past performance, and long-standing customer relationships will fuel GCOM's growth in the Mid-Atlantic and other parts of the US, and strengthens our leadership in delivering innovative, mission-critical solutions to the state and local government market." Kamal Bherwani, GCOM Chief Executive Officer.
Wheels Up, the membership-based private aviation company, acquired Travel Management Company, the largest wholesale-focused light jet operator in the US. Financial terms were not disclosed.
"This acquisition is a foundational piece in our continued brand evolution and mission to provide our members with a total private aviation solution, and we are thrilled to be welcoming TMC into the Wheels Up family," said Kenny Dichter, Founder and CEO of Wheels Up. "TMC and their light jet fleet are a perfect complement to our anchor partner, Gama Aviation, and their pilots, who will continue to operate the aircraft in our Wheels Up fleet and provide our members with the same high level of safety and service that they do today."
Pritzker-backed LBP Manufacturing, a leading global producer of sustainable and innovative food and beverage packaging, acquired Union Packaging, a leading producer of food packaging to leading global quick service restaurants. Financial terms were not disclosed.
Thomas Chadwick, Vice President at Pritzker Private Capital, said: “This acquisition provides further scale to LBP across a number of products to best serve LBP’s existing and future customers. We continue to enthusiastically support Matt and his team as they further bolster their value proposition to customers.”
Humana not interested in bidding for Centene Corp.
Humana, a for-profit American health insurance company, said that it would not be making an offer to acquire Centene Corporation, a large publicly traded company and a multi-line managed care enterprise, quelling speculation that it would acquire the health insurer that has already agreed to buy smaller rival WellCare Health Plans for $15bn.
Humana said here it was making an exception to its "no-comment policy" to confirm it would not bid for Centene "in light of the significant investor speculation and persistent market rumors."
Hospitality Properties closing in on a $2.4bn acquisition of Spirit MTA assets.
Reuters reported that Hospitality Properties Trust, a real estate investment trust company, is nearing a $2.4bn deal to acquire a rental real estate portfolio from Spirit MTA REIT, a major landlord of bankrupt US retailer Shopko Stores. The deal would allow Spirit MTA to cash out on most of its real estate. It would also diversify Hospitality Properties’ portfolio beyond the hotel and travel center sectors and into retail properties such as restaurants, movie theaters and car service stations.
PG&E creditors to present a $45bn restructuring deal.
Bloomberg reported that the creditors of PG&E, an American investor-owned utility, are to present a restructuring plan that could be worth at least $45bn. The plan builds on a proposal floated by PG&E earlier this year. The updated plan includes substantially more cash for compensating existing wildfire victims, establishing a new statewide wildfire liability fund and recapitalizing PG&E. The plan could be presented to the bankruptcy judge before a rival plan being developed by PG&E’s newly reconstituted board and management is finalized to help accelerate the utility’s exit from court protection.
Mantle Ridge considers bidding for Aramark. (FS)
Investment firm Mantle Ridge, which was founded by former Pershing Square Capital Management partner Paul Hilal, is considering making an offer to acquire Aramark, an American food service, facilities, and uniform services provider to clients in areas including education, healthcare, business, corrections, and leisure. Aramark has a market value of about $8.6bn and a debt pile of more than $7bn.
Mantle Ridge plans to push Aramark to explore a sale and has also held preliminary talks with banks about raising debt financing for the bid. Aramark shares rose on the news to end trading on Thursday up 6.6% at $34.89.
Wynnchurch Capital acquired two of ATI’s forging facilities for $37m. (FS)
Private equity firm Wynnchurch Capital agreed to acquire two non-core forging facilities from Allegheny Technologies, a specialty metals company, for $37m. The deal will close during the second quarter of 2019. These facilities, located in Portland, IN and Lebanon, KY, are part of ATI’s High Performance Materials & Components segment. They use primarily traditional forging methods to produce carbon steel forged products for use in the oil & gas, transportation and construction & mining industries.
“This transaction is consistent with our ongoing efforts to actively evaluate our business portfolio to ensure we’re focused on key growth opportunities for HPMC in the aerospace & defense end-markets, specifically in nickel and titanium products as well as in advanced iso-thermal and hot-die forgings,” said John Sims, Executive Vice President, HPMC segment.
Tempus hit $3.1bn valuation after $200m financing round. (FS)
Chicago-based Tempus, which is building a library of molecular and clinical data to help physicians deliver personalized care, announced a $200m round at a valuation of $3.1bn. Participating investors include Baillie Gifford, Franklin Templeton, New Enterprise Associates, Novo Holdings, Revolution Growth, and funds and accounts managed by T. Rowe Price. Founded in 2015, the Chicago-based business raised $110m at a $2bn valuation in 2018.
