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AMERICAS
Huntsman has secured all regulatory approvals required to complete the sale of its Textile Effects division to Archroma, a portfolio company of SK Capital Partners. Both parties expect the transaction to close on February 28, 2023. The agreed purchase price was $593m in cash plus assumed pension liabilities, and Huntsman expects the net after tax cash proceeds to be approximately $540m before customary post-closing adjustments.
"Our teams have been working diligently since we signed the purchase agreement last August to get this deal to closing and, when we secured approval from the Indian competition law authority last week, we quickly put the final steps in place to complete the transaction on the 28th February. I want to thank the more than 2k Huntsman associates for their incredible professionalism and effort to get us to this day. These associates and the Textile Effects business they have so well served, will combine with Archroma to create the World's leading textile chemicals and dyes company. I would also like to recognize Barry Siadat and his SK management team for their commitment to complete this transaction," Peter Huntsman, Chairman, President, and CEO
BP, a British multinational oil and gas company, agreed to acquire TravelCenters of America, a full-service truck stop and travel center company for $1.3bn.
The services complements BP's existing convenience and mobility business and will help in expanding its offers including electric vehicle charging, biofuels, renewable natural gas and later hydrogen.
“Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans. We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level," Jonathan M. Pertchik, TravelCenters of America CEO.
TravelCenters of America is advised by Citigroup, Ropes & Gray and Joele Frank. BP is advised by Goldman Sachs, Robey Warshaw and Sullivan & Cromwell.
Teck Resources, a diversified miner with coal, copper, zinc, and oil sands operations, and Glencore-backed PolyMet Mining, a firm engaged in the exploration and development of natural resource properties, completed the formation of NewRange Copper Nickel, a joint venture located near both existing and closed iron ore mines and utilizes existing brownfield tailings storage and plant locations to minimize environmental impact. Financial terms were not disclosed.
"The NewRange Copper Nickel joint venture brings together two large, well defined mineral resources in the established Iron Range mining region of Minnesota. This agreement will help unlock a new domestic supply of critical metals for the low-carbon transition through responsible mining," Don Lindsay, Teck Resources President and CEO.
Glencore was advised by McCarthy Tetrault (led by Roger Taplin). PolyMet was advised by Maxit Capital, Paradigm Capital, Farris and Mason Hayes & Curran. Teck was advised by Morgan Stanley.
Bavarian Nordic, a biotechnology company, agreed to acquire the travel vaccine portfolio of Emergent BioSolutions, a developer of vaccines, for $380m.
“This acquisition adds not only to our commercial portfolio and reinforces our leading position in travel vaccines, but it also strengthens our pipeline," Paul Chaplin, Bavarian Nordic President and CEO.
Bavarian Nordic is advised by Morgan Stanley, Nordea Bank and Cooley. Debt financing is provided by Danske Bank and Nordea Bank.
PDI Technologies, a company delivering powerful solutions and insights that serve as the backbone of the convenience retail and petroleum wholesale ecosystem, completed the acquisition of Blue Cow Software, a fuel oil and propane management software business, from Repay Holdings, a provider of vertically integrated payment solutions. Financial terms were not disclosed.
"The Blue Cow Software team has built a proven solution that aligns with the overall growth strategy at PDI as we continue our work of connecting convenience retail and petroleum wholesale across the globe. PDI will accelerate the continued growth of Blue Cow through ongoing investment in its technologies and innovations," Sid Gaitonde, PDI President of Enterprise Productivity.
PDI was advised by Berenson & Co, Willkie Farr & Gallagher and Peppercomm. Repay Holdings was advised by Barclays and Troutman Pepper.
BlackRock completed the acquisition of a majority stake in Environmental 360 Solutions, a vertically integrated provider of waste management, environmental, and recycling/circular economy services provider. Financial terms were not disclosed.
"We are excited to invest on behalf of our clients in a company with the entrepreneurial spirit and growth trajectory of E360S. In addition to capital, BlackRock will provide E360S with the right strategic support to achieve its growth plans. There is significant white space to grow the Company's sustainability and circularity services, as well as continuing to grow in traditional solid waste and environmental services," Adi Blum, BlackRock Managing Director.
Environmental 360 Solutions is advised by BMO Capital Markets and Miller Thomson. BlackRock is advised by RBC Capital Markets and Blake Cassels & Graydon.
Yellow Wood Partners, a private equity firm, agreed to acquire the North American business of Suave, a beauty and personal care brand, from Unilever. Financial terms were not disclosed.
"We are excited to have created a strong working relationship with Unilever in this transaction. Yellow Wood's intense focus on investing in and operating consumer brands led us to purchase the iconic Suave brand in North America from Unilever. We believe our extensive experience with divestitures of large and small brands from multi-national consumer branded companies such as Bayer and Reckitt will help us successfully transition and grow Suave as a focused brand in the Yellow Wood portfolio," Dana Schmaltz, Yellow Wood Partner.
Yellow Wood Partners is advised by Houlihan Lokey, Fried Frank Harris Shriver & Jacobson and Chris Tofalli Public Relations.
Centura Health, a provider of healthcare services, agreed to acquire five Utah hospitals from Steward Health Care, a health care network. Financial terms were not disclosed.
“We are excited to welcome the physicians and associates of these essential hospitals, clinics, and outpatient ventures to our connected ecosystem of 21k incredible people. We look forward to supporting, nurturing, and learning from the more than 3k caregivers and continuing the longstanding legacy of caring for communities throughout Utah," Peter D. Banko, Centura Health President & CEO.
Centura Health is advised by Kaufman Hall & Associates. Steward Health Care is advised by Citigroup and SVB Securities.
Freedom Holding, a diversified multi-national financial services firm, agreed to acquire Maxim Group, a full-service investment bank, for $400m.
"We are committed to growing our global footprint, and we recognize that having a significant U.S. presence is an important part of this strategy. Adding Maxim to our group as a trusted partner through this cornerstone transaction will turbocharge our growth as we continue to expand our U.S. operations," Timur Turlov, Freedom Holding CEO.
Freedom Holding was advised by Zito Partners.
Blackstone-backed DESOTEC, a filtration services provider, agreed to acquire the carbon reactivation and slurry operations of Evoqua Water Technologies, a provider of mission-critical water and wastewater treatment solutions, for $100m.
“Today’s announcement marks the beginning of an exciting new chapter for DESOTEC as we continue on our mission to better protect the planet. This landmark investment is the first step as we embark on the rollout of our North American growth strategy and further expansion of our leading market position. We are delighted to partner with Evoqua, and look forward to best serving all our customers, employees and other stakeholders involved," Julie Santens, DESOTEC CEO.
Evoqua is advised by Houlihan Lokey.
I Squared Capital, a private equity firm, completed the acquisition of Whistler Pipeline, a leading natural gas infrastructure asset. Financial terms were not disclosed.
I Squared Capital sees increasing long-term demand for natural gas across the US Gulf Coast due to the growth in LNG liquefaction capacity being constructed in the region, as well as growing demand from Mexico. The Whistler pipeline offers the rare combination of strong free cash flow, high-quality contracts, and operating rights on highly strategic natural gas infrastructure.
Stonepeak was advised by RBC Capital Markets.
LinQuest, a national security space company, completed the acquisition of CAMO, a provider of US special operations command, its component commands. Financial terms were not disclosed.
“CAMO’s experience, leaders, and subject matter experts design, integrate, test, and rapidly field technologies that are creating new possibilities for ground, air, and space forces. Together with the CAMO team we will enable our customers to stay ahead of adversaries’ strategies and support customers’ efforts in bolstering our national security,” Greg Young, LinQuest President and CEO.
LinQuest was advised by Sage Communications.
Inflexion, a private equity firm, agreed to acquire a majority stake in dss+, a provider of sustainability-focussed operations management consulting services, from Gyrus Capital, an investment firm. Financial terms were not disclosed.
"We are very proud to have partnered with the dss+ management team in their carve out from DuPont and the first stage of their growth path as an independent firm. We are delighted to be able to remain investors and continue that partnership in its next phase. We are confident Inflexion will bring additional support and resources to dss+ during their next growth phase," Guy Semmens, Gyrus Capital Managing Partner.
CommonSpirit, a health system, and nonprofit hospital chain, agreed to acquire Utah hospital portfolio from Medical Properties Trust, a real estate investment trust that invests in healthcare facilities. Financial terms were not disclosed.
“These Utah hospitals checked all of the boxes as far as our cornerstone underwriting principles, and this transaction demonstrates that such hospitals not only facilitate attractive real estate returns to MPT but also meet the critical healthcare needs of their communities. The sale of the operations of these hospitals is a great outcome for Steward, and we are delighted to begin a long and successful relationship with CHIC,” Edward K. Aldag, MPT Chairman, President and CEO.
ARC Group, an international investment bank and financial services firm, agreed to acquire Luminous Capital, an US private equity and advisory firm. Financial terms were not disclosed.
“This is another key milestone in our growth strategy. Luminous Capital gives us a US presence in the financial hub of the world – New York City. We have worked with the Luminous team on their SPAC and observed the excellence and integrity their team brings to their advisory and investing practice. Luminous Capital is a step further in building out the ARC platform as we look to become an international financial institution strengthening the opportunities between Asia and the rest of the world,” Sergio Camarero, ARC Group President.
Elation Health, a technology company powering innovation in primary care, completed the acquisition of Lightning MD, a company in cloud-based medical billing and payer connectivity. Financial terms were not disclosed.
"Healthcare technology is rapidly evolving, particularly in the primary care sector where we have the greatest opportunity to improve patient outcomes and raise the standard of our healthcare system for everyone. With this acquisition and Elation's plans for its all-in-one solution, primary care practices will be better equipped to achieve financial success while delivering high quality patient care – without administrative burden and distraction that is so common in this industry," Kyna Fong, Elation Health co-founder and CEO.
Teck Resources is said to plan coal spinoff to focus on metals.
Teck Resources is planning to separate its multibillion-dollar steelmaking coal business to focus more on industrial metals, Bloomberg reported.
The Canadian miner is expected to make an announcement on the spinoff as early as next week. Deliberations are ongoing and no final decision has been made.
Rainier Partners announces closing of inaugural fund at $300m hard cap. (FS)
Rainier Partners, a private equity firm investing in lower middle-market services businesses, announced today that it has completed fundraising for Rainier Partners Fund I at its hard cap of $300m, in excess of its $250m target.
“We are proud to celebrate this important milestone in our firm’s history. We are thankful for the strong reception we’ve received and are honored to partner with world-class investors who share our excitement for our proven strategy,” Jon Altman, Rainier Partners Founder.
EMEA
EU antitrust regulators have resumed their investigation into Broadcom's $61bn bid for cloud computing company VMware and will decide by June 7 whether to clear or block the deal, Reuters reported.
The EU competition watchdog had stopped the clock on its investigation on January 31, effective January 24, while waiting for the companies to provide requested information.
VMware is advised by Goldman Sachs (led by Sam Britton and Stephan Feldgoise), JP Morgan (led by Madhu Namburi), Gibson Dunn & Crutcher and FGS Global. Broadcom is advised by Bank of America (led by Kevin Brunner and Ron Eliasek), Barclays (led by Laurence Braham, Richard Hardegree and Gary Posternack), Citigroup, Credit Suisse (led by David Wah), Morgan Stanley (led by Anthony Armstrong), Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by David Karp, Ronald Chen and Viktor Sapezhnikov), Brunswick Group (led by Simon Sporborg) and Joele Frank. Silver Lake is advised by Simpson Thacher & Bartlett (led by Atif Azher).
Saria, a food manufacturer, revises the takeover offer for Devro, a susage maker. The new offer values Devro for £692m ($836m).
The Devro board recommends the offer for shareholder approval, deeming it "fair and reasonable" ahead of a general meeting on March 3.
Devro is advised by Numis Securities, Lazard, Clifford Chance, Shepherd & Wedderburn and FTI Consulting. Saria Group is advised by JP Morgan, PricewaterhouseCoopers, Travers Smith and Powerscourt.
Torqx Capital-backed CSi Packaging, a logistics company, completed the acquisition of Madern Group, a machine manufacturer. Financial terms were not disclosed.
“Joining forces with Madern marks an important milestone in the rapid growth path that CSi packaging has experienced over the last couple of years. Madern is an incredibly strong brand name with an exceptional product, and we look forward to combining solutions of both companies to serve our customers even better, with high quality and high performing solutions. The extensive track record Madern has built in Europe and the US, as well as Asia, will underpin the further growth of both CSi packaging and Madern and will unlock further opportunities for the combined companies in the general folding and liquid packaging markets," Mark van de Klundert, CSi Packaging CEO.
CSi Packaging was advised by Loyens & Loeff.
EV Cargo, a global technology-enabled supply chain and logistics execution platform for the world’s leading brands, providing air and sea freight, road freight and contract logistics services, agreed to acquire Allport Netherlands, a freight forwarding service company. Financial terms were not disclosed.
“EV Cargo provides an outstanding platform in terms of its proprietary technology stack, physical infrastructure and global network coverage, all of which will enable us to accelerate our growth story, by serving our customers and managing their supply chains every day while also creating great career opportunities for our people. We are all very excited to join the EV Cargo family,” Victor Wever, Allport Netherlands Founder and CEO.
EV Cargo is advised by Citigate Dewe Rogerson.
Edelman Global Advisory, a boutique firm providing business and government advisory services, to acquire Distrito Relações Governamentais, a firm brings an innovative approach to government relations with its talented and diverse team of experts. Financial terms were not disclosed.
"With this strategic move, EGA is bolstering its presence in Latin America, one of our largest growth markets, and allows us to provide a broader range of services as well as quality insights into the ever-changing political, economic and social landscape in the region to support our clients. Launched in August 2021, EGA provides tailored business and government advisory services to its clients around the world, and this acquisition is in line with our goal to provide a global strategic vision combined with the ability to navigate the local markets to ensure our clients' success," Leigh Wedell, EGA COO.
Genesis Capital, a private equity firm, and Avallon, an investment company, completed the acquisition of TES Vsetin, a Czech electro-mechanical engineering company, from ARX Equity Partners, a Central Europe-focused private equity firm. Financial terms were not disclosed.
Headquartered in Vsetin, Czech Republic, TES is involved primarily in the manufacturing of system components related to electrical machines in addition to the design and manufacturing of its own proprietary electric machines, such as generators and electric motors. TES supplies components and machines to several blue-chip customers across multiple industries.
HIG Capital, a global private equity investment firm, completed the acquisition of Pinalli, a distribution platform for beauty & personal care products. Financial terms were not disclosed.
"We are thrilled to partner with H.I.G. with the aim to further accelerate our growth path and consolidate our position as the reference Italian player in the distribution of high-level BPC products," Luigi Pinalli, Pinalli Co-Founder and Chairman.
Russian government approves sale of IKEA factories.
A Russian government commission has approved the sale of Swedish furniture maker IKEA's factories in Russia to two local buyers, paving the way for a deal to be struck, Reuters reported.
Western companies announced plans to leave Russia after it sent tens of thousands of troops into Ukraine last February. IKEA hopes to finalise terms early this year.
UK regional airline Flybe to wind down as rescue talks collapse.
British regional airline Flybe will wind up its business after rescue talks fell through a month after the company cancelled all flights and entered insolvency proceedings for a second time in three years, Reuters reported.
The company has struggled since its relaunch in April last year, despite other low cost airlines such as Ryanair and easyJet reporting record summer bookings as demand for travel heads back to pre-pandemic levels even as inflation squeezes disposable incomes.
Apollo, Goldman plan private credit funds for wealthy Europeans. (FS)
Apollo Global Management and Goldman Sachs AM are preparing to launch private credit funds aimed at wealthy European investors, trying to capitalize on a burgeoning corner of the credit market, Bloomberg reported.
The firms are developing strategies to target affluent individual investors interested in private lending for leveraged buyouts in the region. Arcmont Asset Management is also exploring a similar idea. The moves would follow a similar fund started by Blackstone last year.
Credit Suisse’s Klein says first boston staff will own firm. (People)
Credit Suisse’s Michael Klein, appointed to run the First Boston investment-banking spinout, told a town hall meeting that everyone there would be shareholders in the new venture, Bloomberg reported.
Trying to rally the staff to support the planned overhaul, Klein pledged that the new “super boutique” will be profitable, and said that should mean this year’s bad bonus round won’t happen again.
APAC
Adani Power is said to scrap $850m coal plant purchase.
Adani Power has called off its plan to acquire a coal plant project in central India as billionaire Gautam Adani looks to rein in spending and rebuild investor confidence in the wake of a bruising short seller report, Bloomberg reported.
The Adani Group company and DB Power mutually agreed not to proceed with the transaction after a long-stop date expired on Wednesday, said the people, who asked not to be identified as the information is private. DB Power operates a 1.2 GW coal power project in the Indian state of Chhattisgarh.
Byju’s in funding talks with TPG, sovereign funds as debt weighs. (FS)
Byju’s is in negotiations with investors including TPG to raise more than $500m, a much-needed capital infusion that could help the world’s most valuable edtech startup stave off potential debt issues, Bloomberg reported.
Several investment firms including TPG and two Middle Eastern sovereign wealth funds have begun due diligence on the Indian company, which is hoping to keep its valuation steady at about $22bn during the financing, people familiar with the matter said. That’s despite a global tech rout that’s prompted layoffs in the thousands, depressed global investment activity and shaved billions off the valuations of once high-flying tech startups.
TPG in talks to buy $300m Malaysian education assets from KV Asia. (FS)
US private equity firm TPG is in advanced talks to buy Malaysian private education assets owned by regional buyout firm KV Asia Capital in a deal that could be worth more than $300m, Reuters reported.
An agreement could be struck as early as the first quarter, one of the sources said. TPG, which has $135bn of assets under management globally, has been expanding in Southeast Asia in recent years, including in Malaysia.
PIF Tencent-backed VSPO to foray into Chinese games market. (FS)
Saudi Arabia’s wealth fund has made its first major foray into the Chinese games market, betting on a Tencent Holdings-backed esports tournament organizer, Bloomberg reported.
Savvy Games Group, a unit of the Public Investment Fund, invested $265m in VSPO, which promotes and runs competitive gaming events for titles such as League of Legends and PUBG. The Shanghai outfit, formerly known as VSPN and also backed by Sequoia China and Susquehanna International Group, did not disclose its valuation in the Series C round. Savvy now becomes VSPO’s single largest equity holder.
Lifestyles China weighs $300m HK IPO.
The firm behind brands including Jissbon condoms is considering a Hong Kong initial public offering that could raise about $300m, Bloomberg reported.
Lifestyles Healthcare’s China business, which was separated from the sexual wellness company’s global operations when it was sold last year, is in talks with potential advisers for a listing as soon as this year.
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