Brazilian antitrust regulator Cade approved Boeing's purchase of Embraer’s commercial aviation division without restrictions. Cade’s top administrative council could still call for a reconsideration of the case, putting the matter to a vote.
The companies welcomed the move, with Boeing saying it remained confident of getting approval from the European Commission, the last hurdle to the transaction.
Embraer Commercial Aviation is advised by Pinheiro Neto. Boeing is advised by Simpson Thacher & Bartlett. Embraer is advised by Citigroup, Barbosa Mussnich & Aragao, Skadden Arps Slate Meagher & Flom, and Cleary Gottlieb Steen & Hamilton.
Bristow, a provider of helicopter transportation services to the offshore oil and gas industry, agreed to merge with Era, a provider of helicopter transportation services.
“We believe this merger will create substantial value for the stakeholders of both companies. The identified cost synergies are significant and, combined with the strong pro forma balance sheet and absence of capital commitments, support robust free cash flow generation. This merger achieves more efficient absorption of the significant fixed costs required to run an air carrier and better positions the combined company to manage industry challenges,” Chris Bradshaw, Era President, and CEO.
Era is advised by Centerview Partners and Milbank. Bristow is advised by Ducera Partners, Houlihan Lokey, Baker Botts, Bracewell and Kirkland & Ellis. Centerview Partners is advised by Skadden Arps Slate Meagher & Flom.
Stone Point Capital, a private equity firm, agreed to acquire a majority stake in Safe-Guard Products International, a provider of electrical equipment, from Goldman Sachs' Merchant Banking Division. Financial terms were not disclosed.
“Safe-Guard is in the unique position to welcome Stone Point Capital as a new investor with deep industry experience while continuing our successful relationship with Goldman Sachs through its renewed investment. With continued development of people, product, technology, and our service infrastructure, we remain committed to delivering innovative solutions and value-added customer support to our strategic partners and customers,” Randy Barkowitz, Safe-Guard Chief Executive Officer.
Safe-Guard is advised by Goldman Sachs, Jefferies, and Davis Polk & Wardwell. Stone Point is advised by Debevoise & Plimpton and White & Case.
JH Whitney Capital-backed 3B Scientific, a manufacturer and marketer of anatomical models and medical simulation products, agreed to acquire iSimulate, a provider of clinical education technology. Financial terms were not disclosed.
"iSimulate has revolutionized simulation training in healthcare through its creative simulation solutions, including ALSi, REALITi, CTGi, and AURiS. We are extremely excited to further develop the 3B Scientific platform and add the great products and people of iSimulate to our company," Todd Murray, 3B Scientific CEO.
3B Scientific is advised by Clayton Utz and Gibson Dunn & Crutcher. iSimulate is advised by Schwartz Heslin Group, MinterEllison, and Pepper Hamilton.
Gryphon Investors, a private equity firm, agreed to acquire a majority stake in PestRoutes, a provider of software for pest control, from Mainsail, a growth equity firm. Financial terms were not disclosed.
"PestRoutes serves a number of large and growing field services markets with complex software needs that are not being met by existing solutions. PestRoutes not only addresses the complicated requirements of field services companies of all sizes, but it does so through the use of modern, easy-to-use software complemented by high-quality customer service, which together provides tremendous value and superior customer experience," Jon Cheek, Gryphon Deal Principal in the Software Group.
PestRoutes is advised by Arbor Advisory Group and Goodwin Procter. Gryphon Investors is advised by Kirkland & Ellis and Lambert & Co.
A federal judge ruled that Germany’s Evonik Industries proposed purchase of rival US hydrogen peroxide maker PeroxyChem Holding is legal under antitrust law. In a brief order issued late Friday, Judge Timothy Kelly said that he was denying the US government’s request for a preliminary injunction halting the $625m deal.
The US Federal Trade Commission had sued to stop the planned merger in August, citing concerns that it would lead to higher prices for hydrogen peroxide used as a bleaching agent or disinfectant.
“The court’s ruling is disappointing, and we will be considering our options,” Ian Conner, FTC’s Bureau of Competition director.
One Equity Partners is advised by Barclays and Dechert.
Dover, a manufacturer of industrial products and manufacturing equipment, agreed to acquire Soft-Pak, a provider of software solutions for the waste and recycling industry. Financial terms were not disclosed.
The transaction is subject to the satisfaction of customary closing conditions and is expected to close in the first quarter of 2020.
"We are excited to bring together Soft-Pak's well-recognized industry-specific software solutions and ESG's growing software & digital portfolio. We believe the integrated solutions will drive growth of ESG's core refuse vehicle offering and associated software, and deliver tangible value-add to our waste and recycling industry customers," Richard J. Tobin, Dover's President, and Chief Executive Officer.
Soft-Pak is advised by D.A. Davidson.
Mercer Advisors, a wealth management firm, agreed to acquire First Ohio Planning, a wealth management firm. Financial terms were not disclosed.
"Jim's extensive experience as a business leader, planner, and community influencer are talents we look for. Combining his operation with our Columbus office affirms our dedication to our clients in Ohio and establishes us as one of the leading firms in that area. We are delighted to join forces with the First Ohio team and look forward to serving their clients with expanded wealth management services for years to come," Dave Welling, Mercer Advisors Chief Executive Officer.
Mercer Advisors is advised by Chris Tofalli.
Warburg Pincus, a global private equity major, agreed to invest $300m in Scale Microgrid Solutions, which designs, builds, operates, and finances on-site power systems for commercial and industrial facilities throughout North America.
“North America needs to rebuild its energy infrastructure in a far more sustainable way, which requires flexible and reliable behind-the-meter power solutions and access to efficient financing for customers. This is particularly timely in regions like California and the Pacific Northwest, but is also relevant in the Northeast, as C&I customers demand more reliable, cheaper and cleaner energy solutions. Our focus on deploying fully financed distributed energy solutions and microgrids will position us well to capitalize on this next wave of growth,” Ryan Goodman, Scale Microgrid Solutions CEO.
Despegar, the online travel company in Latin America, agreed to acquire Best Day, a travel agency in Mexico, for $136m.
“At Best Day Travel Group we are very proud of this transaction. We have been operating in the market for over 35 years, and the fact that a company like Despegar, the leader in the Latin American travel market, sees in us an opportunity to strengthen their value proposition in the Mexican market, speaks clearly about the capabilities we have built. For the Best Day team, it is an opportunity to enhance those capabilities to continue offering customers unique experiences with the travel company that has innovated like no other in the region over the last 20 years,” Mr. Julian Balbuena, Best Day President of the Board.
Arthur J Gallagher, a US-based global insurance brokerage and risk management services firm, agreed to acquire Hanover Excess & Surplus, an agency offering hard-to-place coastal commercial and personal property/casualty coverages. Financial terms were not disclosed.
"Hanover Excess & Surplus will enhance our presence in North Carolina and brings additional specialty market expertise and strong leadership capabilities to RPS," J. Patrick Gallagher, Arthur J. Gallagher Chairman, President, and CEO.
Thoma Bravo-backed Imprivata, a digital identity company for healthcare, agreed to acquire GroundControl, which creates automated solutions for managing mobile devices in modern enterprises. Financial terms were not disclosed.
“Due to the positive impact on productivity, cost, and security, the use of shared mobile devices has significantly increased, especially in healthcare. By combining forces with Imprivata, we can tap into industry-leading capabilities and resources to provide a powerful and complete identity lifecycle solution for customers around the world,” Aaron Freimark, GroundControl CEO.
IdeaScale, an idea management platform, agreed to acquire Betterific, a crowdsourced open innovation platform. Financial terms were not disclosed.
"IdeaScale's mission is to empower organizations to engage their most valuable resource – passionate people – in making impactful decisions. We see our acquisition of Betterific as a way to more fully empower the change-makers at organizations with a broader, global crowd of collaborators than they could build on their own," Rob Hoehn, IdeaScale Co-Founder, and CEO.
BlackRock and GIP are interested in Adnoc’s $15bn gas pipeline. (FS)
BlackRock, Global Infrastructure Partners and KKR & Co are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi’s state-owned energy giant, Bloomberg reported.
Australia’s IFM Investors and Ontario Teachers’ Pension Plan are also weighing offers for a stake in Abu Dhabi National Oil’s gas pipeline unit. A deal could value the business at as much as $15bn, including debt.
The oil giant expects to receive first-round bids in mid-February. Adnoc is seeking to sell as much as 49% of the business through a lease structure.
TPG and Sixth Street stop partnership to fuel dealmaking. (FS)
TPG and its credit platform plan to end a decade-long partnership, a move that will free the firms to pursue a wider array of deals. TPG Sixth Street Partners and TPG told investors that they will pursue their next phases as independent organizations, Bloomberg reported.
The decision to part ways was spurred by the rapid growth of the two firms and a partnership agreement that limited them from getting into each other's focus areas.
That agreement called for TPG to stick to private equity deals and for Sixth Street to limit itself to credit and credit-related opportunities. But as the two firms expanded into new businesses - like growth financing and real estate - those lines became harder to define.
Sun Life's asset management arm considers private debt acquisition to aid expansion.
Canadian insurer Sun Life Financial’s asset management unit is eyeing its first middle-market private-debt acquisition as it seeks to expand into the higher-yielding investments, Reuters reported.
“Right now, our capability is really focused on the investment-grade part of the private debt market. But there’s the whole lower-rated spectrum within the private debt market... I could see us either acquiring a team or an asset manager focused on that part of the market,” Randy Brown, SLC Management head of insurance asset management.
GLS Capital raised $345m for litigation finance fund. (FS)
GLS Capital raised $345m for its inaugural litigation finance fund. GLS Capital Partners Fund I's diverse institutional investor base includes global financial institutions, endowments, foundations, and family offices.
"The firm will structure creative and flexible solutions for businesses and law firms that are looking to better manage litigation and balance-sheet risks," GLS Capital.
EMEA
BorgWarner, an American worldwide automotive industry components and parts supplier, agreed to acquire Delphi Technologies, a provider of automotive parts and equipment, for $3.3bn.
“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle, and aftermarket businesses. Delphi Technologies will bring proven leading power electronics technologies, talent, and scale that will complement our hybrid and electric vehicle propulsion offerings. As a combined company, we look forward to delivering enhanced solutions to our customers while driving increased value for our stockholders,” Frédéric Lissalde, BorgWarner President and CEO.
Delphi is advised by Goldman Sachs and Kirkland & Ellis. BorgWarner is advised by Bank of America Merrill Lynch, Rockefeller Capital Management, and Simpson Thacher & Bartlett.
Xcede, a talent solutions provider, TechStream, a talent investor & incubator, and Etonwood, a cloud and infrastructure technology talent solutions provider, completed their merger to create TechStream Group. Financial terms were not disclosed.
"I am delighted to announce the merger of Xcede Recruitment with both TechStream and Etonwood. By joining the businesses, we will expand our service offering into the US, Asia, and MEA markets, while increasing our European operations," William Jacques, TechStream Group Chief Operating Officer.
Debt was provided by Investec and Universal Partners.
BC Partners, a private equity firm, agreed to acquire Pasticceria Bindi, an Italian producer and distributor of frozen patisserie products, for c. €200m ($220m).
The deal underscores the growing interest among private equity groups for small, usually family-owned companies in the food sector whose products are popular in Italy and abroad.
Bird, a micro-mobility company, agreed to acquire Circ, a shared e-scooter company. Financial terms were not disclosed. Investors joining Bird as part of the combined company include Target Global, Team Europe, Idinvest Partners, and Signals Venture Capital.
"To further advance our mission, we're excited to acquire Circ which is the clear European leader. We like their laser focus on treating cities as their number 1 customer and their mindset of prioritizing profitability over growth," Travis VanderZanden, Bird Founder and CEO.
AP Moller Capital-led consortium agreed to acquire ARISE Ports & Logistics, the holding structure for ARISE’s ports and logistics operations across Africa. Financial terms were not disclosed.
“We are delighted that APMC has decided to invest in ARISE P&L, which will undoubtedly benefit from APMC’s deep financial and operational expertise in the maritime and logistics industry. In addition to being testament to the strength of our ports and logistics operations, this partnership will enable ARISE to invest further in our activities across the continent,” Gagan Gupta, ARISE CEO.
Calisen considers a $1.8bn London IPO. (FS)
Calisen Group, which supplies smart meters to British households, is aiming to sell up to £408m ($536m) of shares in its planned initial public offering, Reuters reported.
KKR-backed Calisen said it intends to float around 25% of the company on the London stock market at a price range of £2.25 ($2.92)-2.65 ($3.4) per share. That would imply a market value ranging from £1.25bn ($1.63bn) to £1.42bn ($1.87bn) if it exercises a “greenshoe” option to sell an additional 3.75% of the company.
Calisen consists of two businesses — Calvin Capital, through which it owns and manages a portfolio of domestic electricity and gas meters, and Lowri Beck, under which it carries out installation, meter reading, and maintenance services on behalf of energy retailers.
Kone confirms its interest in the Thyssenkrupp elevator business.
Kone chief executive Henrik Ehrnrooth confirmed the Finnish company's interest in its German rival Thyssenkrupp's elevator business but declined to say whether it had bid or not. The company was due to make a bid on January 27 for Thyssenkrupp’s elevator business, valued at around €15bn ($16.6bn).
“We believe we would be a good owner for Thyssenkrupp,” Henrik Ehrnrooth Kone chief executive.
Philips considers the divestment of a $2.5bn home appliance unit.
Royal Philips is considering the sale of its kitchen appliance business generating €2.3bn ($2.5bn) in sales as part of Chief Executive Officer Frans van Houten’s revamp of the Dutch company into a focused health-care equipment maker.
Carving out the unit making coffee makers to air purifiers will take 12 to 18 months, and the asset should generate “a lot of interest,” according to the CEO.
"Divesting the business will help reinforce Philips’s own focus on health technology as we are able to boost that portfolio further,” Frans van Houten, Royal Philips CEO.
Vodafone considers selling Egypt unit to Saudi Telecom.
Vodafone Group is in talks to sell its majority stake in its Egyptian unit to Saudi Telecom, in a deal that could see the Saudi firm claiming a prize it had eyed years ago.
Earlier this week, Telecom Egypt said it hadn’t received any offers and currently had no intention to sell its stake.
Foresight Group energy infrastructure fund raised €342m. (FS)
Foresight Group secured €342m ($379m) for its energy infrastructure fund in its first close. The Foresight energy infrastructure fund will invest in low-carbon energy infrastructures such as renewable energy, battery, and energy storage, and transmission and distribution assets.
Goldman Sachs names Skoglund a Head of European PE dealmaking. (People)
Goldman Sachs Group promoted Anna Skoglund to head its group advising private equity firms and large financial investors in EMEA. She takes over as EMEA head of the team, known as the Financial and Strategic Investors Group, from Rob Pulford, Bloomberg reported. Pulford has been appointed head of FSIG in the Americas and will be moving to New York from London.
Pulford's role as head of the EMEA cross markets group will be taken up by Olaf Diaz-Pintado, who also remains co-head of EMEA investment banking services.
APAC
US private equity firm Blackstone Group raised its proposed offer for Unizo Holdings by 12% to JPY191.6bn ($1.75bn), topping a rival bid from US buyout fund Lone Star that is backed by the Japanese hotelier.
“Blackstone believes that the revised Blackstone offer is the best option for shareholders to maximize the value of their shares as well as the best means for enhancing Unizo’s corporate value,” Blackstone.
Unizo is advised by Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Financial Group, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young. Fortress is advised by Kekst CNC.
Blackstone considers Japan's largest-ever $2.8bn real estate deal. (FS, RE)
Blackstone Group is to reacquire a portfolio of rental apartments in Japan for JPY300bn ($2.8bn), Nikkei Asian Review reported. The record purchase of the apartments, which Blackstone previously sold in 2017, highlights the moves being made by foreign companies that are further pushing up Japan's rising real estate prices.
The deal will see Blackstone purchasing approximately 220 rental apartment buildings across Japan through its operating fund from Beijing-based Anbang Insurance Group.
Mulpha to acquire Blackstone’s Brimbank Plaza for $150m. (FS, RE)
Mulpha agreed to acquire Brimbank Plaza in Melbourne for $150m from Blackstone, DealStreetAsia reported. The 37.5k sqm sub-regional shopping center, which was anchored by Woolworths, Coles, Aldi, and Target, had a combined fully-leased net income of $12.3m per annum.
“It has been a difficult time for shopping center owners in terms of sustaining current rental levels, retaining tenants at lease expiry, and the softening of cap rates through revaluations. However, there remains a healthy appetite from a wide range of buyers in what is an evolving retail landscape,” Mark Wizel, CBRE Investment Director.
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