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AMERICAS
Callodine Group, an asset management platform, completed the acquisition of Manning & Napier, an investment solutions provider, for $294m.
"Manning & Napier represents a best-in-class investment management firm that we are thrilled to welcome to the Callodine Group platform. Growing up in Rochester, NY and having previously been a shareholder of the Company after its IPO, we know this is a business with a long and proud tradition of delivering outstanding results for clients. We look forward to partnering with the current management team to continue to uphold that standard of excellence.," James Morrow, Callodine Founder and CEO.
Manning & Napier was advised by PJT Partners, Gibson Dunn & Crutcher (led by Andrew Kaplan), Morgan Lewis & Bockius (led by David Zelikoff) and Prosek Partners (led by Brian Schaffer). Financial advisors were advised by Latham & Watkins (led by Robert Katz). Callodine Group was advised by Aviditi Advisors, MSI Capital Partners, Wells Fargo Securities and Sidley Austin (led by Karen Dewis). Debt financing was provided by Citizens M&A, KeyBanc Capital Markets and Wells Fargo Securities.
ISS sides with top Turquoise Hill investors in dismissing Rio Tinto takeover. (FS)
Institutional Shareholder Services is urging investors of Turquoise Hill to reject Rio Tinto’s proposed takeover - siding with criticisms from top shareholders that the deal undervalues the company behind one of the world’s biggest copper mines.
ISS recommended Turquoise Hill shareholders vote against Rio’s cash offer to acquire 49% of the stock it doesn’t own for $32 a share. The deal values the stake in the Montreal-based miner at about $3.1bn, Bloomberg reported.
“While the offer provides an escape from the immediate downside, certainty of value today comes at a cost that is too high to be tolerated. As such, support for this offer is not warranted," ISS.
Turquoise Hill is advised by BMO Capital Markets, Morgan Stanley, TD Securities, Blake Cassels & Graydon, Norton Rose Fulbright and Paul Weiss Rifkind Wharton & Garrison (led by Adam Givertz and Ian Hazlett). Rio Tinto is advised by Credit Suisse, RBC Capital Markets, Rothschild & Co (led by Roger Ewart), McCarthy Tetrault (led by Shea T. Small) and Sullivan & Cromwell (led by Scott Miller).
Quality Gold, a jewelry distributor, agreed to go public via a SPAC merger with Tastemaker Acquisition, a special purpose acquisition company, in a $989m deal.
“We are thrilled to partner with Dave, Andy and the rest of the best-in-class team at Tastemaker, who are seasoned operators and directors of listed companies, as we become a publicly traded company. With the overwhelming support of our loyal and expansive customer base, Quality Gold has built a premier distribution business with a proven track record of success spanning more than four decades. With the resources provided through the transaction and those that will be available to us as a public company, we will be able to continue to build out our product offerings, deepen our retailer relationships, and further fuel our robust acquisition strategy as the highly fragmented jewelry industry naturally consolidates,” Michael Langhammer, Quality Gold Chief Executive Officer.
Quality Gold is advised by Grant Thornton, RKCA Investment Banking and Frost Brown Todd. Tastemaker is advised by CohnReznick, Cowen & Company, Craig-Hallum Capital Group, Stifel, DLA Piper and Ellenoff Grossman & Schole. Financial advisors are advised by Mintz Levin.
iCON Infrastructure, an investment group, completed the acquisition of a majority stake in Dobson Fiber, a telecommunications services provider, for $700m.
“The ability to reach underserved communities with the latest technology is a belief the Dobson management team and employees have valued for over 85 years. The investment allows us to continue this mission to even more areas across the region. We look forward to this partnership with iCON Infrastructure for many years to come," Everett Dobson, Dobson Fiber Executive Chairman.
Francisco Partners, a private equity firm, completed an investment in Acoustic, a marketing and customer experience provider. Financial terms were not disclosed.
"We are thrilled to announce this new investment from Francisco Partners. As more consumer interactions take place digitally, customer experience becomes the deciding factor for whether consumers engage with your brand," Dennis Self, Acoustic CEO.
Acoustic was advised by SVB Securities and Simpson Thacher & Bartlett (led by Atif Azher and Naveed Anwar). Francisco Partners was advised by Kramer Levin Naftalis & Frankel.
Morgan Stanley Capital Partners, a private equity firm, completed an investment in Emler Swim School, a sports company specializing in swimming instruction and services. Financial terms were not disclosed.
“We are thrilled to partner with Greg, Jim and the entire Emler team during an exciting period of growth. Emler has an exceptional culture and steadfast dedication to its mission. We’re honored to support the Company’s ambitious efforts to eradicate child drownings by providing access to high quality swim instruction across the United States,” David Thompson, MSCP Managing Director.
Emler was advised by Foley & Lardner. Morgan Stanley Capital Partners was advised by Debevoise & Plimpton (led by Uri Herzberg).
Energy Capital Partners, a private equity firm, agreed to acquire a 50% stake in the US portfolio of Ørsted, an energy company, for $410m.
“We are pleased to invest in this diverse portfolio of operating wind and solar assets, underpinned by long term investment grade cash flows in attractive markets. Ørsted has a first class reputation for owning and operating renewable projects around the world, and we are delighted to partner with them as they continue to grow and diversify their Onshore business," Schuyler Coppedge, ECP Partner.
Ørsted is advised by Jefferies & Company.
Bison Capital, a private equity firm, Angeles Equity Partners, an investment company, and Brian Nelson, an individual investor, completed the acquisition of Lapmaster Parent, a producer of high precision equipment and accessories. Financial terms were not disclosed.
Bison Capital and Angeles will partner with Brian Nelson, who founded PSS and will resume his role as group CEO, to drive the next stage of the company’s global growth.
Angeles Equity Partners was advised by Chameleon Collective.
Par Pacific, a company which manages, owns and maintains interests in energy and infrastructure industry, agreed to acquire the Montana oil refinery from Exxon Mobil, an enery company, for $310m.
"This acquisition expands our fully integrated downstream network in the western United States," William Pate, Par Pacific Chief Executive Officer.
Starboard, an investment advisory company, completed the acquisition of a 7.4% stake in Vertiv, a company which provides critical infrastructure for data centers in 130 countries around the world. Finanical terms were not disclosed.
Starboard is believed to be seeking operational improvements at Vertiv. The New York-based hedge fund has held discussions with Vertiv’s leadership and appears to support its focus on improving profitability under Chairman David Cote and Giordano Albertazzi, who will take over as chief executive officer next year.
AmCap, a real estate private equity firm, agreed to acquire Liberty Square, a 107k sq.ft., high volume grocery-anchored, shopping center in the Chicago. Financial terms were not disclosed.
“Liberty Square continues AmCap’s mission of acquiring well-located properties with tenants that are essential businesses that serve daily needs, are internet resistant and are established members of their respective communities. The AmCap team is excited to be a part of the Wauconda community and we look forward to working with Jewel-Osco and other local stakeholders to ensure the continued success at this location,” Jake Bisenius, AmCap Chief Investment Officer.
Pulp maker Paper Excellence has obtained a court decision allowing completion of its deal to acquire Brazilian company Eldorado Brasil Celulose from J&F Investimentos, Reuters reported.
Paper Excellence won an arbitration against Eldorado's current controlling shareholder, J&F Investimentos, which also controls meatpacker JBS SA. But J&F went to the courts and obtained an injunction preventing the transfer of 100% of Eldorado shares to Paper Excellence. Now the judge in the appeal has voided the injunction.
Credit Suisse US asset manager draws interest from Janus, Blue Owl and others. (FS)
Money managers such as Janus Henderson Group and investment firms including Blue Owl Capital are weighing potential offers for Credit Suisse Group's US asset management unit. The unit may fetch around $2bn in a sale.
The Swiss bank is seeking buyers for the business as part of a multi-pronged effort to revise its strategy and raise capital following a string of scandals and financial setbacks.
Janus and rival asset manager AllianceBernstein Holding and Blue Owl as well as private equity firms Centerbridge Partners and Clearlake Capital are considering bids. Other asset managers considering participating in Credit Suisse's auction process include Ameriprise Financial and Invesco, Reuters reported.
Generali is moving ahead with the $4bn plans to acquire Guggenheim Asset Management.
Assicurazioni Generali, a financial services company, is making progress in its talks to buy US investment firm Guggenheim Partners’ asset management business.
Generali is completing due diligence and will decide whether to formalize a bid by the end of the year. The company is weighing a full acquisition of Guggenheim’s asset management business, which could be valued at as much as $4bn.
Generali began exploring a deal with Guggenheim earlier this year, with talks moving forward on an on-again, off-again basis. It is also looking at alternative asset management targets in the US, and a review could result in no transactions being made, Bloomberg reported.
American Securities explores a $2.5bn exit of CPM Holdings. (FS)
Private equity firm American Securities is considering a sale of food equipment maker CPM Holdings, a machinery industrial company.
American Securities is working with an adviser to explore strategic options, including a sale in early 2023, that could value Waterloo, Iowa-based CPM at more than $2.5bn. The company is expected to attract interest from peers, Bloomberg reported.
Banorte is no longer pursuing Citi's Banamex Mexican unit.
Just three contenders are in the running to buy Citigroup’s Banamex unit, according to Mexican President Andres Manuel Lopez Obrador, after Grupo Financiero Banorte said it’s no longer pursuing a purchase.
Banamex is likely to attract offers of about $7bn to $8bn as the field of bidders narrows. Carlos Slim’s Grupo Financiero Inbursa, mining tycoon German Larrea and Grupo Financiero Mifel were still in the running as of last month.
Citigroup kicked off the sale process at the start of the year when it announced it would exit consumer, small-business and middle-market banking in Mexico as part of Chief Executive Officer Jane Fraser’s turnaround of the New York-based lender. The bank plans to continue offering services to large corporations and wealthy clients in Mexico even after the exit, Bloomberg reported.
Nasdaq halts IPOs of small Chinese companies as it probes stock rallies.
Nasdaq has put the brakes on initial public offering preparations of at least four small Chinese companies while it investigates short-lived stock rallies of such firms following their debuts.
The stock exchange operator's actions come amid a surge in the shares of Chinese companies that raise small amounts, typically $50m or less, in their IPO. These stocks rise as much as 2k% in their debuts, only to nosedive in the days that follow, bruising investors who are bold enough to speculate on penny stocks.
Nasdaq started asking the advisers of small Chinese IPO candidates questions in mid-September. The questions concerned the identity of their existing shareholders, where they reside, how much they are investing and if they were offered interest-free debt so they can participate, Reuters reported.
Bregal Sagemount holds final close of Fund IV at $2.5bn hard cap. (FS)
Bregal Sagemount, a growth-focused private equity firm, has held the final closing of the Bregal Sagemount Fund IV at its hard cap of $2.5bn.
Fund IV investor base is comprised of institutional investors with long-term commitments to private equity, including leading endowments, pension funds, large family office investors, and key consultant relationships.
Bregal Sagemount is advised by Goodwin Proctor.
Trinity Hunt announces closing of its $618m continuation fund. (FS)
Trinity Hunt Partners, a growth-oriented private equity firm, announced the closing of its first Continuation Fund, raising capital to support the acquisitions of Argano and Improving, two premier technology services companies, from Trinity Hunt Partners V. The Continuation Fund closed on $618m in commitments, which includes a substantial pool of capital for follow-on investments to support the continued growth of the companies.
"We seek to partner with best-in-class sponsors to create solutions for their highest quality assets, and this transaction is a great example of both. We're excited to build on our partnership with Trinity Hunt in a transaction that will support these two companies in their continued value creation," Adam Johnston, StepStone Partner.
EMEA
easyHotel, budget hotel chain, completed the acquisition of eight Benelux hotels from Crossroads Real Estate, a real estate private equity, for €145m ($143m).
“This strategic acquisition is an important milestone in our plan to increase our presence in continental Europe from a strong UK base. Consumers place increasing importance on value, hence increasing demand for affordable hotels across Europe and the UK, a trend which we expect to continue given current inflation," Karim Malak, easyHotel CEO.
easyHotel was advised by Allen & Overy, CMS and Loyens & Loeff. Crossroads Real Estate was advised by Jones Lang LaSalle, DLA Piper and Goodwin Procter.
Carlyle Group, a private equity firm, agreed to acquire a majority stake in Garnica Plywood, a manufacturer of premium plywood solutions, from Intermediate Capital Group, a private equity firm, for $500m.
"I would like to thank ICG for their support over the past six years during a period of significant change for our business. Moving forward, we are delighted to announce this partnership with Carlyle, with its outstanding track record of working with and growing leading Spanish businesses, as we look to the next chapter of Garnica’s growth by further internationalizing the business and looking to unlock more growth through strategic investments," Pedro Garnica, Garnica Founder and President.
Garnica Plywood is advised by William Blair & Co and Allen & Overy. Carlyle is advised by Perez Llorca. ICG is advised by Cuatrecasas Goncalves Pereira (led by Francisco Jose Martinez Maroto).
CVC Capital Partners, a private equity firm, agreed to acquire a 50% stake in Gridspertise, a smart grid operator, from Enel Group, an energy company. Financial terms were not disclosed.
"We are excited about this investment and look forward to working closely with Enel and the management team led by Robert Denda to further improve Gridspertise’s go-to-market capabilities, diversify the current geographical footprint and optimise operational performance," Andrea Ferrante, CVC Senior Managing Director.
CVC is advised by Rothschild & Co.
Navantia, a Spanish state-owned shipbuilding company, agreed to acquire a 5% stake in Enagás Renovable, a renewable energy company, from Enagás, a natural gas transmission company. Financial terms were not disclosed.
"This agreement represents a great opportunity for Navantia Seanergies and a firm commitment to contribute to decarbonisation, to collaborate with key players in the field of renewable gas, and to promote, as a driving company, the entire value chain and to create sustainable employment," Ricardo Domínguez, Navantia President.
Enagás is advised by Rothschild & Co.
EIP Management completed the acquisition of a 30% stake in Energy Infrastructure Partners, a private equity firm from Credit Suisse, an investment banking company. Financial terms were not disclosed.
“This strategic step enables EIP to pursue our ambitious growth plans in times of strong demand for energy infrastructure, which has become more important than ever in today’s world,” Roland Dörig, EIP Co-Founder and Managing Partner.
French state says will support any initiative that boosts Renault's alliance with Nissan.
The French state will support any initiative aimed at boosting Renault's partnership with Japan's Nissan, the head of the French state shareholding agency said.
France holds a 15% stake in Renault, which in turns owns 43% of Nissan. Renault is finalising plans to split its thermal engine and electric vehicle departments into two separate units amid tense talks aimed at reshaping the strategic partnership with Nissan, Reuters reported.
Bitcoin Group weighs a $20m bid for Bankhaus von der Heydt. (FS)
Bitcoin Group, a venture capital firm, is considering a bid for Bankhaus von der Heydt, the 268-year-old German bank that’s stumbled with its own moves into cryptocurrencies and digital assets.
The crypto and blockchain investor is in negotiations with several potential targets, including Bankhaus von der Heydt. Bankhaus von der Heydt has been talking to potential buyers after a deal to sell itself to crypto-derivatives exchange BitMEX fell through, people familiar with the matter have said. A sale may value the bank at around $20m, Bloomberg reported.
Everwood in talks to sell 6.1GW solar assets portfolio. (FS)
Spain-based renewable energy investor Everwood Capital has hired Bank of America to sell a portfolio of 6.1GW of solar power plants in Europe and Latin America.
Everwood expects to start receiving early offers for the projects, located in Spain, France, Italy, Germany, Colombia, Greece, Peru and Argentina, in two weeks. The portfolio consists of 1.3GW of solar photovoltaic projects in Spain and Italy and a development platform with 4.8GW of solar pipeline and local teams in Spain, Italy, France, Germany and Latin America.
Appetite for low-carbon energy sources has taken on fresh urgency this year after Russia's invasion of Ukraine, with oil and gas companies setting ambitious green targets and jostling with utilities and existing renewables investors to lead the energy transition, Reuters reported.
CCC seeks to widen the investor pool for its share sale.
CCC, a Polish fashion retailer, has changed plans for an upcoming share sale to broaden the offering to investors other than just its founder Dariusz Milek.
Shareholders in the Polish fashion retailer will on November 17 vote on a new proposal to sell as many as 14m shares to Milek and other selected investors. CCC will seek to sell the shares at $7.45 apiece, an average price from the last two weeks.
CCC is facing a growing debt burden after years of spending on expanding into e-commerce and new brands. Its business, which operates in 28 countries, is also recovering from the impact of lockdowns during the Covid-19 pandemic, Bloomberg reported.
APAC
Thailand’s telecommunications regulator cleared a planned merger between Telenor ASA’s local unit and True Corp with some conditions, removing the final hurdle in creating the Southeast Asian nation’s largest mobile operator, Bloomberg reported.
The National Broadcasting and Telecommunications Commission said late that Telenor’s Total Access Communication and True may proceed with the merger through an all-share deal, first announced almost a year ago.
A consortium of investors, including KKR, Abu Dhabi Investment Authority, Brookfield and TPG, led a $500m funding round in UPL, an Indian chemicals company.
“Our commitment to transform the global food value chain will now receive even more impetus with the creation of these distinct pure-play platforms. This shall enable to bring in enhanced focus, ensure better allocation and utilisation of resources and outcome-oriented solutions to farmers," Jai Shroff, UPL Global CEO.
UPL was advised by Adfactors PR
India seeks $7.7bn valuation for IDBI Bank in stake sale.
India is pushing for a valuation of around $7.7bn for state-owned IDBI Bank in what could be the biggest sale of the government’s stake in a lender in decades.
The government earlier this month invited bidders for a 60.72% stake in the Mumbai-listed lender. The valuation target means the administration is seeking a premium of roughly 33%, based on IDBI Bank’s market value of about $5.8bn.
Potential investors ranging from domestic and foreign banks to non-banking financial companies and private equity funds have expressed initial interest in the asset. Bidders could get regulatory approvals and security clearances after November as the process proceeds, Bloomberg reported.
Orix can invest about $2bn in Toshiba buyout. (FS)
Orix has decided it could invest about $2bn in a consortium to buy out Japanese industrial conglomerate Toshiba.
A consortium led by private equity firm Japan Industrial Partners has been granted preferred bidder status by Toshiba in a second round of bidding, though the conglomerate is still open to proposals from others. JIP has asked multiple companies to join the consortium, including Orix and Chubu Electric Power, Reuters reported.
Hormel is in talks to acquire CVC's take in GarudaFood. (FS)
Hormel Foods, an American food processing company, is in talks to acquire private equity firm CVC's stake in GarudaFood Putra Putri Jaya, a snacks maker.
Hormel Foods has emerged as the likeliest buyer of the GarudaFood stake after outbidding rivals. Hormel and CVC are hammering out the details of a transaction that could be worth a few hundred million dollars, Bloomberg reported.
Reliance to hive off and list financial services business.
Indian conglomerate Reliance will spin off and list its financial services, a move that it said will allow the oil-to-telecom giant to enter and expand into financial services such as consumer and merchant lending business and also build fintech for “all Indians.” Every Reliance shareholder will get one share of the new firm for each share they held in the parent firm, the company said. The company didn’t say how soon it will be listing Jio Financial.
Reliance Industries, run by billionaire Mukesh Ambani, said in a statement that it will be incubating, acquiring and inking joint ventures in the new unit, which is called Jio Financial Services, to broaden its offerings to add insurance, payments, digital broking and asset management.
It plans to offer lending based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting. The company already does some lending through its wholesale business to merchants and to consumers through its retail stores, TechCrunch reported.
Reliance is advised by Morgan Stanley.
Walmart-backed PhonePe in talks to raise funds at $12bn valuation. (FS)
Payments and financial services unicorn PhonePe is in talks to raise a new round of funding led by General Atlantic at a valuation of over $12bn, in what would make the Walmart-backed startup the most-valued fintech in India.
PhonePe will use the funds raised to double down on its ambitions to become a financial services super app - offering everything from payments to insurance to investments to commerce.
It will be a rare instance of a late-stage round amid a startup funding winter where investors are signing smaller cheques as they turn cautious in a deteriorating macro environment, Money Control reported.
Shift4Good raises $98m in first close of latest impact VC fund. (FS)
Shift4Good, a Singapore and Paris-based sustainable mobility venture capital firm, has attracted €100m (about $98m) in the first close of its latest impact VC fund.
Fund I has a target of €300m ($293m) and will invest in startups that are decarbonising the transportation industry, with a focus on European and Southeast Asian opportunities.
Shift4Good was advised by Chammas & Marcheteau.
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