AMERICAS
Brookfield Business Partners, the flagship listed business services and industrials company of Brookfield Asset Management, agreed to acquire DexKo Global, a global supplier of highly engineered running gear technology, chassis assemblies and related components, from KPS Capital Partners, a private equity firm, for $3.4bn.
"We are pleased to grow our industrials operations with the acquisition of DexKo, a market leader known for quality and reliability. DexKo's world-class management team has delivered consistently strong performance and we are excited to partner with them to further build on an established track record of value creation," Mark Weinberg, Brookfield Business Partners Managing Partner.
DexKo Global and KPS Capital Partners are advised by Credit Suisse, JP Morgan, Goldman Sachs and Paul Weiss Rifkind Wharton & Garrison. Brookfield Business Partners is advised by Davis Polk & Wardwell. Debt financing is provided by BMO Capital Markets, Bank of America, Credit Suisse, Deutsche Bank, Goldman Sachs and RBC Capital Markets.
Ascensus, an American financial services company, completed the acquisition of UnifyHR, a third-party administrator that provides employee benefits administration and compliance solutions. Financial terms were not disclosed.
"UnifyHR has been highly successful in taking the complexity out of employee benefits administration and compliance obligations. By adding their knowledge and expertise to our Health & Benefits line of business, Ascensus reaffirms our commitment to helping employers satisfy their fiduciary and compliance responsibilities by making employee benefits easier to manage," David Musto, Ascensus President and CEO.
UnifyHR was advised by Jones Day.
Sandvik, a Swedish multinational engineering company, agreed to acquire Cambrio, a provider of CAD/CAM software, from Battery Ventures, a global, technology-focused investment firm. Financial terms were not disclosed.
"This is in line with our strategic focus to grow organically and through acquisitions in the advanced manufacturing space, with special focus on industrial software close to component manufacturing, industrial metrology- and additive manufacturing solutions. Cambrio will enable a broadened customer offering, covering more of the total manufacturing value chain," Stefan Widing, Sandvik President and CEO.
Sandvik is advised by JP Morgan.
Black Rock Petroleum, an oil and gas exploration-stage business, agreed to acquire Caledonian Midstream, an Alberta-based owner and operator of 14 producing liquids-rich natural gas wells. Financial terms were not disclosed.
"Caledonian Midstream is a great fit for Black Rock. Demand for natural gas continues to grow, in Alberta and across North America, and the Quirk Creek property is perfectly situated to service those markets. Current production levels are good, but our engineers have looked at the property's historical production records and analysed recent reserve evaluations, and I am confident we have the expertise, technology and resources to materially increase production and, in turn, the cash flow of the site," Zoltan Nagy, Black Rock CEO.
EMEA
Apollo Global said it is in the process of evaluating the possible offer for Morrisons, Britain's supermarket chain operator. The news comes after Fortress Investment's $8.7bn offer was accepted by Morrisons.
Previously, the chain rejected the $7.6bn takeover proposal from Clayton Dubilier & Rice, but the investor still has until July 17, 2021, to put in motion a higher offer.
Morrisons is advised by Jefferies & Company, Rothschild & Co, Shore Capital & Corporate, Ashurst and Citigate Dewe Rogerson. Fortress is advised by HSBC, RBC Capital Markets, Slaughter & May and TB Cardew. CD&R is advised by Goldman Sachs and Teneo.
Apollo Global agreed to acquire a 67% stake in Reno De Medici, a recycled cartonboard producer in Europe, from CDPQ and Cascades, a Canadian company that produces, converts, and markets packaging and tissue products, for $433m. Upon completion of the acquisition, Apollo will launch a mandatory tender offer for the remaining shares, with the aim to de-list the company.
"As the inaugural investment led by the Apollo Impact platform, RDM reflects our strategy to find good businesses where we believe we can drive financial and impact performance to increase their beneficial effects on society and the planet," Marc Becker, Apollo Impact Senior Partner and Co-Lead.
Apollo is advised by Allen & Company and Paul Weiss Rifkind Wharton & Garrison. CDPQ is advised by Latham & Watkins. Cascades is advised by Rothschild & Co and Jones Day.
Equisoft, a global digital solutions provider to the financial industry, agreed to acquire Altus, a financial services firm. Financial terms were not disclosed.
''The new combined expertise of Equisoft and Altus positions us to lead the UK pension transfer market and makes us a strong contender in the European market. Joining the forces of both companies, each founded on entrepreneurial values, will allow us to better serve our clients by automating complex back-office processes across the investments value chain. These include investment portfolio transfers, pension fund trading, pension payroll and tax reporting.'' Luis Romero, Equisoft Founder and CEO.
Debt financing is provided by BMO Capital Markets, Export Development Canada and Fondaction.
Aquila, an independent investment management company with headquarters in Hamburg, completed the acquisition of a 50% stake in Ourique, an unlevered Portuguese solar operating asset. Financial terms were not disclosed.
"Ourique is an excellent addition to AERIF's portfolio and will directly contribute to its dividend cover. With this investment, the company has again proven its ability to allocate funds prudently, within a short time frame," Christine Brockwell, Aquila Capital Head of Partnerships & Portfolio Management.
Aquila was advised by Numis Securities and Edelman.
Swiss Post, the national postal service of Switzerland, agreed to acquire Livesystems, a provider of digital out-of-home advertising. Financial terms were not disclosed.
The acquisition allows Swiss Post to continue distributing advertising messages for its business customers, physically and now also digitally.
Livesystems is advised by Bar & Karrer. Swiss Post is advised by Homburger.
Castellum, a real estate investment company agreed to acquire Kielo, a real estate company, from Blackstone and Brunswick Real Estate, a Nordic real estate firm, for $760m.
"The acquisition is a fantastic addition to our existing Nordic platform and further consolidates our position in one of Europe's strongest markets," Henrik Saxborn, Castellum CEO.
SoftBank Vision Fund 2 is set to invest $130m in CCC-backed eobuwie, an online footwear platform. SoftBank will invest in the company by taking up convertible bonds. They will be converted into shares at the moment or before the company's stock exchange debut.
"The long-term goal of eobuwie is to strengthen the position of the European leader e-commerce in the footwear and clothing segment. The partnership with SoftBank will support the company's plans regarding further expansion in new markets, launching modern logistics centers outside Poland and developing new services, such as marketplace. The investment in eobuwie confirms its strong position on the e-commerce market and the potential for future growth," CCC.
Nalka Invest, a private equity investment firm, agreed to acquire CERTEGO, a Nordic locksmith business, from ASSA ABLOY, a Swedish conglomerate whose offerings cover products and services. Financial terms were not disclosed.
"I find it satisfying that with Nalka Invest we were able to find a committed, experienced owner that gives the business a new home and creates new opportunities for the future," Nico Delvaux, ASSA ABLOY President and CEO.
Project A, a venture capital company in Berlin, Germany, agreed to invest in Perfect Drive Sports Group, Europe's largest e-commerce company for golf equipment. Financial terms were not disclosed.
"The Perfect Drive Sport Group has shown strong growth in the highly fragmented European market for golf equipment. The Covid-19 pandemic has further changed the purchasing behaviour of golfers from offline to online, a development PDSG is well-positioned for. With our operational model, Project A is able to support PDSG's growth beyond the current markets and help them leverage their tech, data and marketing capabilities," Ben Fischer, Project A General Partner.
Syngenta's $10bn Shanghai IPO to fund growth and acquisitions.
Syngenta Group will use the proceeds from its expected $10bn IPO to fund internal growth and an acquisition spree to snare more of the $100bn market for seeds and sprays,
Reuters reported.
The company's prospectus to list on Shanghai's Nasdaq-style STAR Market was posted online by the Shanghai Stock Exchange on Friday. The Shanghai Stock Exchange filing showed Syngenta's application to list on the STAR Market had been accepted, and the company plans to issue up to 2.79bn shares.
"Syngenta Group will expand and renovate its production facility and implement strategic acquisition to meet growing market needs," Syngenta.
Shuaa Capital plans 3 SPAC IPOs. (FS)
Shuaa Capital, Dubai financial services firm, is considering setting up three blank-check companies of around $200m each, rapidly opening up the booming market for special purpose acquisition vehicles to Gulf investors,
Bloomberg reported.
Shuaa, which manages close to $14bn in assets, approached investment banks to explore setting up the SPACs to pursue deals in the energy, finance, and technology sectors. The SPACs are expected to list in the US this year and will target companies in the Middle East and North Africa.
True raised £275m for Fund III. (FS)
True, a European retail & consumer investment and innovation firm, has held the close of its Fund III, dedicated to backing the retail and consumer businesses at the forefront of consumer behavioral change.
Following a virtual fundraising process, True has exceeded its target of £250m ($346m) with support from both new and existing institutional investors. The fund was oversubscribed and in total True now has over £600m ($850m) in assets under management.
"The support of new stakeholders from across the retail, consumer, and financial sectors, as well as the significant and continued backing of our existing institutional investors for our new fund, is humbling, but demonstrates a collective belief that our investment strategy and unique model – where we can connect the growing disruptors in our industry, such as workplace mental health platform Unmind, to the big industry veterans, such as John Lewis & Partners – works," Matt Truman, True CEO.
APAC
KKR & Co agreed to acquire highway assets in India from Global Infrastructure Partners, an infrastructure investment fund making equity and selected debt investments. Financial terms were not disclosed.
"Roads are one of the largest and most crucial infrastructure assets in India, where the world's second-largest road network is located. Rapidly increasing passenger and commercial vehicle traffic has driven the strong demand to expand the country's road network even further and the reciprocal need for investment in the sector. This is why the transportation sector is a key area of our infrastructure strategy in India. We are truly excited to invest in a high-quality platform and through HC1 play a part in India's transport infrastructure," Hardik Shah, KKR Managing Director and Head of India Infrastructure.
KKR is advised by Deloitte, Ernst & Young, AZB & Partners and Simpson Thacher & Bartlett.
Investment firms IFM Investors, QSuper and GIP offered to acquire Sydney Airport, an international airport, for $16.7bn. UniSuper, a holder of 15% in the airport, would be obliged to reinvest its stake in the consortium's holding vehicle.
The proposal is non-binding, so the final agreement has not been reached yet. The Sydney Airport boards have begun evaluating the proposal but noted that the offer price is below its pre-pandemic levels.
Syndey Airport is advised by Barrenjoey Capital Partners, UBS and Allens.
Longreach, an independent private equity firm with offices in Hong Kong and Tokyo, agreed to acquire Amazon Papyrus Chemicals, a specialty process chemical solution provider, from Navis Capital Partners, a private equity firm. Financial terms were not disclosed.
"When we invested in Amazon Papyrus, our objective was to bring Navis expertise to enhance the operational efficiency and market position of an already outstanding business. We worked closely with our management partners to accomplish this objective. The business performed strongly throughout Covid-19, demonstrating the strength of management and the resilience of the business model. We wish the management team all the best as Amazon Papyrus embarks on the next stage of its growth journey with The Longreach Group," Rodney Muse, Navis Capital Managing Partner.
Navis Capital is advised by BDA Partners.
Warburg Pincus and Wensheng Asset Management, an asset manager in China, completed the formation of Wensheng Special Situations Asset Management, a distressed real estate joint venture. Companies plan to invest $600m into the venture.
"In light of the ongoing financial reform in China and the continued regulatory development, the real estate special situations sector is entering an accelerated growth trajectory," Qiqi Zhang, Warburg Pincus Managing Director.
SoftBank pays $1.6bn to acquire Yahoo Japan rights.
Z Holdings, SoftBank's internet business, agreed to pay Verizon Communications $1.6bn to secure the rights to Yahoo branding and technology in perpetuity in Japan.
In contrast to the retreat of Yahoo in the United States, the brand remains a core part of SoftBank‘s domestic internet business, where the name adorns a web portal and services like shopping and weather.
Hyundai invests $100m in SolidEnergy.
Hyundai Motor, a South Korean multinational automotive manufacturer, has reportedly invested $100m in SolidEnergy Systems, a developer and manufacturer of Li-Metal materials, cells, modules and AI-powered algorithm.
"As we have been investing in various companies related to electrification, our investment in SolidEnergy is part of that," Hyundai Motor.
Paytm to file draft prospectus next week for $2.3bn IPO.
One97 Communications, the parent of Indian payments firm Paytm, will file a draft prospectus as early as July 12 for a domestic IPO that seeks to raise $2.3bn,
Reuters reported.
The money will be raised via the sale of new Paytm stock and a secondary offering of shares at an expected valuation of $24-25bn, with an option to raise the amount at a later stage if required.
Paytm’s proposed $2.3bn IPO will make it India’s third-biggest public listing in dollar terms after state-run miner Coal India in 2010 and Reliance Power in 2008.
Temasek's Vertex seeks Singapore's first SPAC listing. (FS)
Vertex Holdings is planning to raise funds for dealmaking by listing a SPAC in Singapore, which could be the country's first such deal,
Bloomberg reported.
The venture capital holdings company owned by Temasek Holdings is working with advisers on the potential SPAC IPO. Details of the blank-check company, including size and timeline, have not been finalized, pending listing guidelines by the Singapore exchange.
The city-state’s exchange consulted the market on a framework for SPAC listings earlier this year. It prepares to compete in one of the hottest capital market trends in the past year against its regional rivals, including Hong Kong. Singapore has proposed a minimum S$300m ($223m) market capitalization threshold for listing a blank-check company, as well as a more stringent requirement than the US for warrants and share redemption.
LinkDoc seeks $210m US IPO.
LinkDoc Technology, a Beijing-based medical services provider, is planning to raise up to $210m in its planned Nasdaq IPO, as the US toughens auditing standards for foreign firms listed in the country.
LinkDoc, backed by a subsidiary of Alibaba Health Information Technology, said that it will sell 10.8m American depositary shares priced between $17.5-19.5, according to an amended prospectus it submitted to the US SEC.
