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AMERICAS
Clayton, Dubilier & Rice, an American private equity company, agreed to acquire Veritiv, a distributor of packaging, facility solutions and print products, for $2.3bn.
"This agreement is a pivotal moment in Veritiv's history. CD&R's interest in our company is a testament to our team's hard work, innovation, and dedication. Fueled by this partnership, we will continue to evolve towards our greatest potential, delivering innovative and sustainable solutions to our customers today – and into the future," Sal Abbate, Veritiv CEO.
Veritiv is advised by Morgan Stanley and Alston & Bird. Clayton, Dubilier & Rice is advised by BMO Capital Markets, Goldman Sachs, Guggenheim Partners, RBC Capital Markets, UBS, Wells Fargo Securities, Debevoise & Plimpton and Kirkland & Ellis (led by Richard Campbell and David Klein). Debt financing is provided by BMO Capital Markets, Goldman Sachs, RBC Capital Markets, UBS and Wells Fargo Securities.
HEICO, an aerospace and electronics company, completed the acquisition of Wencor Group, a commercial and military aircraft aftermarket company, from Warburg Pincus, a private equity firm, for $2.05bn.
"Wencor is a perfect and highly complementary fit with HEICO, as the combination will be transformative, providing a unique and growing portfolio of proprietary cost-saving solutions for our airline and OEM customers. We welcome Shawn Trogdon, Wencor's talented CEO who will continue to lead Wencor, and the phenomenal Wencor Team to the HEICO family," Laurans A. Mendelson, HEICO Chairman and CEO.
Wencor was advised by Alderman & Company, Citigroup, Jefferies & Company, William Blair & Co and Cleary Gottlieb Steen & Hamilton. HEICO was advised by Lazard, Moelis & Co, Morgan Stanley, RBC Capital Markets, Truist Securities, Akerman and Paul Weiss Rifkind Wharton & Garrison. Debt financing was provided by Truist Securities.
Forward Air, an asset-light provider of transportation services, agreed to acquire Omni Logistics, a logistics and supply chain management company, from Ridgemont Equity and EVE Partners, two private equity fims, for $150m.
“The combination of Omni with Forward creates a company positioned to achieve the full potential of our LTL business, provide a broad offering of complementary services to our customers, and deliver meaningful value for our shareholders. Bringing together our organizations is a key stepping stone of the fourth and final phase of our Grow Forward journey to focus on high-value freight, develop an efficient operating network, implement strategic pricing discipline, and drive an expanded customer base. It accelerates our ability to make high-value, competitively priced freight accessible to more customers, all of whom will benefit from Forward’s renowned Precision Execution," Tom Schmitt, Forward Chairman, President and Chief Executive Officer.
Omni is advised by Goldman Sachs, JP Morgan and Alston & Bird. Forward Air is advised by Citigroup, Morgan Stanley, Cravath Swaine & Moore and Joele Frank (led by Arielle Rothstein). Ridgemont Equity is advised by Prosek Partners (led by Jonathan Marino).
Campbell Soup Company, a manufacturer of branded convenience food products, agreed to acquire Sovos Brands, a food and beverage company, from Advent International for $2.7bn.
"We're thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1bn portfolio. This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well. Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt. With all this progress, I am confident in our readiness to execute and integrate this important acquisition. The Sovos Brands portfolio strengthens and diversifies our Meals & Beverages division and paired with our faster-growing and differentiated Snacks division, makes Campbell one of the most dependable, growth-oriented names in food," Mark Clouse, Campbell President and CEO.
Sovos Brands is advised by Centerview Partners, Goldman Sachs, Hogan Lovells, and Richards Layton and Finger. Campbell Soup Company is advised by Evercore and Davis Polk & Wardwell (led by Daniel Brass and John D. Amorosi). Advent International is advised by Weil Gotshal and Manges.
STG, a private equity firm, agreed to acquire Avid, an American technology and multimedia company, for $1.4bn.
“STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years. We are excited to partner with Jeff and the management team to build on the Company’s history of delivering differentiated and innovative content creation and management software solutions. We look forward to leveraging our experience as software investors to accelerate Avid’s growth trajectory with a deep focus on technological innovation and by delivering enhanced value for Avid’s customers,” William Chisholm, STG Managing Partner.
Avid is advised by Goldman Sachs, Sidley Austin and FGS Global (led by Benjamin Spicehandler). STG is advised by Rothschild & Co and Paul Hastings (led by Steve Camahort and Dana Kromm). Debt financing is provided by Silver Point Capital and Sixth Street Partners.
Novacap, a private equity firm, completed the acquisition of Cadent, a provider of platform-based converged TV advertising services, from Lee Equity, a private equity firm, for $600m.
“The completion of this transaction marks the beginning of an exciting new chapter for Cadent. Our customer focus and dedication remains unchanged, and we expect that our partnership with Novacap will only accelerate our vision of the future of advertising – one that is audience-first, data-infused, and activated seamlessly across all converged media," Nick Troiano, Cadent CEO.
Cadent was advised by Evercore, Stifel and Weil Gotshal and Manges. Novacap was advised by RBC Capital Markets, Scotiabank, TD Securities and Baker Botts.
GTCR, a private equity firm, agreed to acquire commercial business of ADT, a company that provides residential, small and large business electronic security, fire protection, and other related alarm monitoring services, for $1.6bn.
“The decision to divest ADT’s commercial business is a value-enhancing transaction that focuses our portfolio on growth opportunities in our consumer markets. The sale enables ADT to monetize the commercial business at an attractive valuation and accelerate our debt reduction goals. With greater financial flexibility, we will be better positioned to grow through our strategic differentiators and innovative offerings, including our partnerships with Google and State Farm. We will continue our journey to be the premier provider of safe, smart and sustainable solutions that meet the evolved definition of what safety means to consumers today. This transaction is mutually beneficial for ADT and ADT Commercial, which will benefit from GTCR’s support and expertise, positioning the business to continue providing best-in-class solutions and services to its customers. We thank the entire ADT Commercial team for their hard work and look forward to seeing them grow,” Jim DeVries, ADT President and CEO.
GTCR is advised by Raymond James, Stifel and Kirkland & Ellis. ADT is advised by Citigroup, RBC Capital Markets and Cravath Swaine & Moore.
Northleaf, a global private markets investment firm, completed the $500m investment in Tillman FiberCo, a symmetrical gigabit broadband developer.
“We're delighted to partner with Tillman Global Holdings and the Tillman FiberCo management team, both of which have deep industry relationships and decades of operational expertise. Tillman FiberCo’s wholesale business model, which is supported by a large anchor customer order, ensures the long-term revenue stability that our investors look for in our infrastructure portfolio. This investment is an excellent fit with Northleaf’s communications infrastructure strategy, providing our investors with exposure to an attractive sector while mitigating downside risk,” Chris Rigobon, Northleaf Managing Director.
Tillman FiberCo was advised by TAP Advisors, Sullivan & Cromwell and 5W Public Relations (led by Abigail Rush). Northleaf was advised by TD Securities, Kirkland & Ellis and Stanton PRM.
Kohlberg, a private equity firm, agreed to acquire a majority stake in Engage PEO, a professional employer organization providing HR outsourcing solutions, from Lightyear Capital, a private equity firm. Financial terms were not disclosed.
"Engage provides a truly differentiated PEO service offering that delivers unique value to its clients and channel partners. We believe the value proposition Jay and his team have built solves many of the critical issues businesses face in today's complex operating environment and we are excited to be partnering together," Alex Forrey, Kohlberg Managing Director.
Engage is advised by Bank of America and Davis Polk & Wardwell. Kohlberg is advised by Piper Sandler, Ropes & Gray and FGS Global (led by Sophia Templin). Lightyear is advised by ThroughCo Communications (led by Elliot Sloane).
Kohlberg, a private equity firm, agreed to acquire majority stake in Worldwide Clinical Trials, a full service contract research organization, from TJC, a private equity firm focused on leveraged buyout and management buyout investments. Financial terms were not disclosed.
“Over the past few years, we’ve been on a growth journey at Worldwide driven by a deliberate strategy centered on deep scientific expertise and aligned with industry trends and customer needs – one that sets us apart from others in our space. Our team members and their trusted customer relationships are the driving force behind our success, and I thank our partners at TJC for their many years of support helping us build to where we are today. We are thrilled to team up with Kohlberg, who brings us considerable depth of experience across the full continuum of outsourced pharma services, and I look forward to the next phase of our growth journey and continuing to help our customers bring new life-changing medications and treatments to patients around the world," Peter Benton, Worldwide President and Co-CEO.
Kohlberg is advised by Centerview Partners, Paul Weiss Rifkind Wharton & Garrison (led by Angelo Bonvino and Samuel J. Welt) and FGS Global. TJC is advised by Kirkland & Ellis. Worldwide Clinical is advised by Jefferies & Company.
Apollo, an American private equity firm, agreed to invest in Accent Family of Companies, a provider of distribution and manufacturing of baling wires and wire-tier machines. Financial terms were not disclosed.
"We believe Accent is a critical supplier to the recycling industry poised for continued growth and impact, and we see several opportunities to help grow and develop the Company. We look forward to partnering with Bill and the talented team at Accent to support its expansion globally, which we believe will contribute to the continued adoption of sustainable recycling practices leading to a decrease in landfilled waste and emissions in local communities," Joanna Reiss, Apollo Partner and Co-Head of Impact.
Accent Family of Companies is advised by Jefferies & Company. Apollo is advised by PricewaterhouseCoopers, Bridgespan Group, Latham & Watkins and Paul Weiss Rifkind Wharton & Garrison.
Platinum Equity, an investment firm, completed the acquisition of The HC Companies, a manufacturer of horticultural containers. Financial terms were not disclosed.
"HC has earned a well-deserved reputation for innovation, quality and customer service, and the company offers one of the most comprehensive product lines in the industry. We are excited to work with the HC management team and to continue investing in the company's long-term strategic plans," Jacob Kotzubei, Platinum Equity Co-President.
The HC Companies was advised by Lincoln International and Haynes and Boone (led by Kellie Bobo). Platinum Equity was advised by Alston & Bird and Willkie Farr & Gallagher (led by Cristopher Greer and Thomas Sharkey).
TSG Consumer Partners, a private equity firm, completed an investment in Trinity Solar, a renewable energy solutions manufacturer. Financial terms were not disclosed.
"Trinity Solar is empowering households to take control of their energy needs, protect themselves against power outages and reduce their carbon footprint. We've been impressed by Trinity's evolution into one of the largest players in the nation amid strong industry tailwinds. Its customer-centric approach simplifies the solar journey for families and helps them reduce their costs," Michael Layman, TSG Managing Director.
Trinity Solar was advised by Prestwick Partners and Blank Rome. TSG Consumer Partners was advised by Ropes & Gray (led by Daniel Cowan and Christopher D. Comeau) and FGS Global.
Apollo, a private equity firm, completed an investment in Intermodal Tank Transport, a provider of ISO tank transportation logistics and depot services. Financial terms were not disclosed.
"We are thrilled to partner with Apollo to help accelerate our next phase of growth. We have a number of compelling opportunities to strengthen our global platform, and we believe Apollo's deep understanding of our business, scale and extensive value-creation expertise will help us unlock the significant growth potential of our business. I look forward to continuing to lead the dedicated, hardworking team at ITT as we continue driving value and enhancing customer experience," Jon Hulsey, ITT President and CEO.
Intermodal Tank Transport was advised by Raymond James and McGinnis Lochridge. Apollo Global is advised by Paul Weiss Rifkind Wharton & Garrison and Joele Frank.
KKR, a private equity firm, agreed to acquire Simon & Schuster, a printing services company, from Paramount, a mass media and entertainment conglomerate, for $1.62bn.
“All of the executives at Simon & Schuster who met with KKR came away from those conversations impressed with the depth of KKR’s interest in our business and their commitment to helping us grow, thrive and become an even stronger company. With KKR’s support, we look forward to collaborating on new strategies that will enhance our ability to provide readers a great array of books and to give authors the best possible publication they can receive,” Jonathan Karp, Simon & Schuster President and CEO.
KKR is advised by Simpson Thacher & Bartlett. Paramount is advised by LionTree Advisors and Shearman & Sterling (led by Dan Litowitz and Lara Aryani).
Seaport Capital, a private equity firm, completed the acquisition of CyberlinkASP, a managed service provider offering fully-outsourced IT management services to SMB and enterprise customers, from Staple Street Capital, a middle-market private equity firm. Financial terms were not disclosed.
"After spending the last few months with the Seaport Capital team, we believe they are the right strategic partner for Cyberlink's next phase of growth. I'm looking forward to executing key initiatives that will allow our business to continue to grow and scale to its full potential. Seaport's sector experience in tech-enabled services and its approach to partnership give us confidence and enthusiasm as we enter this next chapter," Chris Lantrip, Cyberlink CEO and Co-Founder.
CyberlinkASP was advised by Bank Street Group.
Founders Fund, a venture capital firm investing in companies building revolutionary technologies, led a $280m round in Neuralink, a neurotechnology company.
"We're extremely excited about this next chapter at Neuralink," Neuralink.
Bain Capital Life Sciences, a venture capital firm for life sciences startups, and TCGX, a science-driven investment firm, led a $200m Series C round in ADARx Pharmaceuticals, a clinical stage biotechnology company, with participation from Blackrock, Commodore Capital, Cormorant Asset Management, HBM Healthcare Investments, Invus, Marshall Wace, Redmile Group, T. Rowe Price Associates, Venrock Healthcare Capital, Vivo Capital, Ascenta Capital, Lilly Asia Ventures, OrbiMed and SR One.
"ADARx has developed a unique siRNA platform that we believe has the potential to generate differentiated clinical data from several programs over the near and long-term. We share the Company's commitment to targeting diseases across therapeutic areas where there is significant unmet medical need and look forward to supporting the advancement of their platform technology and growing drug development pipeline, with the ultimate goal of bringing important new treatments to patients," Ricky Sun, Bain Capital Life Sciences Partner.
Hillhouse, a global private equity firm, agreed to acquire Harneys Fiduciary from Harneys, a global offshore corporate services provider. Financial terms were not disclosed.
"We are impressed by the leadership team led by Ross Munro who have built a leading offshore corporate services provider. We look forward to a close strategic partnership with the Harneys law firm following the closing," Sean Carney, Hillhouse Partner.
Ares Management, a global alternative investment manager, completed a $75m investment in Inter Miami, an American professional soccer club.
"Ares has been an important collaborator over the last two years in helping to accelerate the growth of Inter Miami. This latest investment comes at an inflection point for the club with the planned development of our new stadium and the joining of Lionel Messi, among other key initiatives," Jorge Mas, Inter Miami Managing Owner.
Proprietary Capital, an alternative investment manager, agreed to acquire American Financial Resources, a manufactured home lender. Financial terms were not disclosed.
"With the Acquisition of AFR, we will build on our already strong mortgage platform. With the addition of AFR's robust operational platform, loyal customer base, long-term dedicated employees, and their breadth of products and services, we will catapult our growth for many years to come," Craig Cohen, Proprietary Capital Managing Member.
Capital One Ventures, a strategic investor, and ServiceNow Ventures, an investment company, completed the investment in Veza, an identity security company. Financial terms were not disclosed.
“We are thrilled to have Capital One Ventures and ServiceNow Ventures involved as strategic investors. CIOs and CISOs are struggling with traditional and legacy tools like IAM, IGA and PAM that have not kept pace with the modern era of multi-identity, multi-cloud, and hybrid cloud. This investment validates Veza’s approach of understanding system specific permissions across hundreds of systems and interconnecting with identities providing access visibility, access monitoring, access lifecycle management, and access request – all at scale. We look forward to working with them on our mission to reinvent the future of identity access,” Tarun Thakur, Veza Co-Founder and CEO.
Berkshire posts record operating profit.
Conglomerate Berkshire Hathaway posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36bn overall profit, Reuters reported.
Rising interest rates, and better results at the Geico car insurer, allowed Berkshire's insurance businesses to generate more money in the second quarter, with profit up 38% and interest and other investment income growing sixfold.
TDR, Sycamore in talks for joint $9bn Subway bid.
Private equity firms TDR Capital and Sycamore Partners are in talks to team up in their pursuit to acquire sandwich restaurant chain Subway.
Subway expects to fetch well over $9bn in a deal, and it remains uncertain whether TDR and Sycamore can meet its price expectations. Another group led by Roark Capital remains in the running. The bidders are continuing to carry out due diligence, and Subway may wrap up the sale process by the end of the month.
Private equity firm Advent International, which had teamed up with Goldman Sachs Asset Management on a bid for Subway, has dropped out of the process. Goldman Sachs may decide to team up with one of the other bidders.
JP Morgan the investment bank advising Subway, has given the private equity firms vying for Subway a $5bn acquisition financing plan, Reuters reported.
Private credit firms build cash hoards to gain a share of the $5.2tn consumer debt market.
Private credit firms are raising billions of dollars to grab a share of the $5.2tn market that includes US consumer debt, seizing on a growth opportunity while the industry’s traditional lenders are in disarray, Bloomberg reported.
Direct lenders such as Ares Management, BC Partners, KKR, and Medalist Partners in recent months raised the money for funds designed to lend to consumer financing companies. Providers of auto and consumer loans have been unable or unwilling to tap their usual funding sources, namely regional banks and securities sales backed by assets like loan portfolios.
Shearer's Foods explores a potential $3bn sale.
Shearer's Foods, a snack maker backed by Ontario Teachers' Pension Plan, is exploring a sale that could fetch about $3bn including debt.
The company is working with a financial adviser on the potential transaction. The company generates more than $250m a year in earnings before interest, tax, depreciation and amortization. A final decision on pursuing a sale hasn't been made and the pension fund could still decide to keep the asset, Bloomberg reported.
Bain Capital Credit makes $1.3bn of H1 financing investments.
The private credit group of Bain Capital Credit, a global credit specialist with approximately $44bn in assets under management, invested a total of $1.3bn to support the growth of middle market and private equity-backed companies during the first six months of 2023.
Bain Capital Credit's Private Credit Group invested in 30 businesses across 15 industries in H1 2023, supporting the refinancing, leveraged buyout, and add-on acquisition activity of both new and existing portfolio companies.
Apollo to offer $1bn of stock to boost Athene's growth.
Apollo Global Management said it would sell as much as $1.15bn of convertible stock aimed at helping its Athene unit seize on market turbulence.
The alternative investment firm it intends to use the proceeds to “capitalize on attractive opportunities available in the current market environment.” The shares dropped 3.2% to $83.55 in late New York trading.
Castlelake, Neuberger Berman to buy $700m of loans from fintech Oportun.
Financial technology consumer lender Oportun has agreed to sell $700m in personal loans to private firms, Castlelake and Neuberger Berman, Bloomberg reported.
Castlelake will buy $400m of loans from the fintech in a deal signed earlier this month. Neuberger agreed to purchase $300m of loans in June, Jonathan Coblentz, CFO at Oportun said, adding that they expect to disclose the information to investors on its earnings call.
KKR scoops up auto loan portfolio as regional banks shed assets.
Private equity giant KKR has purchased a portfolio of prime auto loans from Georgia-based Synovus Financial as US regional lenders continue to sell assets to shore up capital.
Synovus Bank — whose parent company is Synovus Financial — sold the $373m portfolio to private credit funds and accounts managed by KKR, Bloomberg reported.
Canada's OMERS pulls its venture capital arm from Europe.
Omers Ventures, the venture capital arm of the Canadian pension plan, is pulling out of Europe, marking a prominent global departure from the continent as EU technology investing dwindles, Bloomberg reported.
The venture unit had set up a $332m fund in 2019 to focus on European startups. An Ontario Municipal Employees Retirement System spokesperson confirmed the plans to exit the region, noting that its team had decided to focus on North America.
CD&R raises over $20bn for latest flagship fund.
US buyout firm Clayton, Dubilier & Rice has become the latest big-name investor to defy the current private equity fundraising slump by surpassing the $20bn target of its latest flagship fund.
CD&R last week asked investors for permission to raise the fund's hard-cap from £23bn to £23.5bn in a sign that it expects to exceed the original target.
Blackstone closes record energy transition private credit fund at over $7bn.
Blackstone, an American multinational private equity, today announced the final close of its energy transition credit fund, Blackstone Green Private Credit Fund III. BGREEN III closed at its hard cap of $7.1bn, representing the largest energy transition private credit fund ever raised.
“Blackstone has built a premier platform focused on private credit in the energy transition and infrastructure markets. We are grateful for the trust from our limited partners and look forward to investing in this favorable market environment,” Dwight Scott, Blackstone Global Head of Credit.
TPG is targeting $4bn for the sixth growth equity fund.
TPG is looking to raise $4bn in capital commitments for its latest growth equity fund to tap into a "fresh crop of opportunities", said Jack Weingart, TPG Chief Financial Officer.
"The opportunity set in growth equity investing has gotten much more interesting now, and we think there's plenty of interesting deal activity to warrant that kind of fund size. We have confidence that we'll hit that target," Jack Weingart, TPG CFO.
Revelstoke Capital Partners raises $1.7bn fund.
Revelstoke Capital Partners, a Denver-based private equity firm with $5.8bn of assets under management, has closed Revelstoke Capital Partners Fund III and various affiliated investment vehicles totaling $1.7bn.
RCP Fund III surpassed its target of $1bn. Since 2018, the firm has raised $3.7bn of equity commitments to execute on its strategy of working with entrepreneurs and management teams to build healthcare services companies.
HealthEdge closes Fund IV above target at $160m.
HealthEdge Investment Partners has completed the final close of its fourth fund, HealthEdge Investment Fund IV, above its original target with over $160m of capital commitments, including an investment from the General Partner.
The fund also attracted support from HealthEdge's existing limited partner base, including funds of funds, pension funds, endowments, and high-net-worth individuals.
EMEA
Slate Asset Management, a global alternative investment platform, agreed to acquire the grocery-anchored retail property portfolio from x+bricks Group, a platform for grocery-anchored real estate, for €1bn ($1.1bn).
"We are very pleased to be increasing our exposure to high-quality daily needs-based real estate in Germany, which we believe is a stable and defensive asset class with a positive growth outlook. Our ability to source and execute a transaction of this scale demonstrates the strength of Slate's global team, the depth and breadth of our regional relationships, and our access to flexible capital through trusted partners who understand the value we bring to bear as investors and managers," Brady Welch, Slate Asset Management Co-Founding Partner.
Slate is advised by Gleeds, R3define, KPMG, Mellum Capital, PricewaterhouseCoopers, Gleiss Lutz, Goodwin Procter and Feldhoff & Cie (led by Daniel Gabel). x+bricks is advised by Ernst & Young, Evercore, Fieldfisher, White & Case and FGS Global (led by Christian Falkowski).
Liontrust Asset Management has extended its offer period to buy Swiss fund house GAM for a third time in a sign the deal is struggling to go through, Bloomberg reported.
The new deadline will now be August 23. The provisional notice relating to the interim offer results is expected to be published on August 24 2023.
ATHOS, a Munich-based single family office, agreed to acquire Schülke, a provider of infection prevention and treatment solutions for the healthcare industry, from EQT, an investment company. Financial terms were not disclosed.
"It has been a pleasure working with EQT Private Equity over the past years. Together we have strategically re-positioned the business, driven organic growth, and pursued an active M&A agenda with five add-on acquisitions. Perhaps most importantly, we delivered on a sustainability transformation strategy to ensure that we live up to our mission and are set up for sustainable growth. We are grateful for the partnership and are now looking forward to building on this momentum under the ownership of the ATHOS Consortium," Stefan Kukacka, Schülke CEO.
EQT is advised by Deloitte, Bain & Co, Bank of America and Freshfields Bruckhaus Deringer.
Heramba, an investment company, agreed to acquire Kiepe Electric, an electrical traction equipment manufacturer. Financial terms were not disclosed.
"The acquisition of Kiepe Electric is an exciting step forward for our team. Since its foundation, Kiepe has demonstrated a long history of evolving its business to deliver innovative solutions. With a focus on enabling sustainable mass transit, a portfolio of high-quality products and services, long-standing partnerships with leading global customers and an attractive backlog, we believe Kiepe is in a position to become a leader in commercial electrification," Hans-Jörg Grundmann, Heramba Managing Director.
Heramba is advised by Piper Sandler, Latham & Watkins and Smith Gambrell & Russell.
TA Associates and Warburg Pincus, two private equity firms, completed the acquisition of Epassi, an employee benefits company, from Bregal Milestone, a pan-European technology growth private equity firm. Financial terms were not disclosed.
“Bregal Milestone has been instrumental to our growth over the past several years and we believe that the timing of passing the ownership torch is ideal. With Bregal Milestone’s help, we have successfully expanded beyond the Nordics, and outside of our core business in the provision of employee benefits. We believe that with the scalable technology we have in place, we are sufficiently prepared to continue to scale into additional geographies and adjacent business areas in our next stage of growth,” Pekka Rantala, Epassi CEO.
Bregal Milestone was advised by JP Morgan and White & Case.
KKR, a global investment firm, agreed to acquire a minority stake in OHB, a space and technology company, for €44 ($48) per share.
"The global market for space solutions will continue to grow. We see great potential in Europe and are convinced that with additional investments in Research and Development OHB is ideally positioned to achieve long-term sustainable growth. KKR's capital will support OHB's future development. At the same time, the offer provides existing shareholders with the opportunity for immediate value realization at an attractive premium. KKR is delighted to have the opportunity to support the Fuchs family," Christian Ollig, KKR Partner and Head of the DACH region.
OHB is advised by Morgan Stanley.
AXA Investment Management, a private equity, agreed to acquire a 25% stake in Finerge, a renewable energy platform, from Igneo Infrastructure Partners, a private equity firm. Financial terms were not disclosed.
"Our conviction is that climate change is the great issue of this century and the central risk of tomorrow. We believe that integrated renewable energy independent power producers like Finerge, which have the capacity to scale as 21st century utilities, will be essential to delivering the energy transition as fast as it is needed. We look forward to partnering with Igneo and the Finerge management team to accelerate the build out of the Finerge fleet across solar, wind and other energy transition technologies," Julien Gailleton, AXA IM Deputy Head.
Igneo is advised by UBS.
Sandbrook, a private investment firm, PSP Investments, a pension investor, and IMCO, a public pension, agreed to acquire NeXtWind, a renewable energy company specializing in acquiring and repowering onshore wind farms, from Crestline, an investment management firm, for $750m.
"We are thrilled to partner with the NeXtWind management team as well as PSP Investments and IMCO to grow this platform in Germany. We have been looking to enter this space for several years and are confident we have the right team and capital base to become a leading player in the German renewables market," Ken Ryan, Sandbrook Co-Founder and Partner.
Exyte, a company in the design, engineering, and delivery of high-tech facilities, agreed to acquire Intega, a specialist in high-purity media supply systems, from Nimbus, a private equity firm. Financial terms were not disclosed.
"With the acquisition of Intega, we are strengthening our vertical integration. Intega's offerings and regional presence flawlessly complement our business area Technology & Services. This is the next strategic step in growing our competence in the area of critical sub-systems for advanced technology facilities, especially for the semiconductor industry. In addition, Intega will form the core of our European service activities. As a result, the combination of Exyte and Intega will create new growth drivers that will ultimately be advantageous for our clients," Wolfgang Büchele, Exyte CEO.
Canadian pension funds explore $6bn sale of renewables firm Cubico.
Two of Canada's biggest pension funds are exploring options including a sale of Cubico Sustainable Investments that could value the renewable energy firm at about $6bn or more, including debt, Reuters reported.
Montreal-based Public Sector Pension Investment Board and the Ontario Teachers' Pension Plan are looking to appoint a financial advisor in the coming weeks, adding the sale could take several months to complete.
BC Partners and Pollen Street-backed Shawbrook eyes £3.5bn Co-operative Bank merger.
Shawbrook Group, a UK-based small business lender backed by private equity firms including BC Partners and Pollen Street Capital, is planning a £3.5bn ($4.5bn) merger with Co-operative Bank in what would be one of the most significant UK banking deals since the 2008 financial crisis, Telegraph reported.
Shawbrook Group, the small business lender, has approached the owners of the Co-operative Bank with proposals for a stock-based merger.
Intermedia's owner explores the sale of a communications services firm.
The private equity owner of Intermedia Cloud Communications is exploring options including a sale that could value the communications services provider at more than $1bn, including debt, Reuters reported.
Buyout firm Madison Dearborn Partners is working with investment bank Evercore on a sale process for Intermedia, which is expected to start in the coming weeks.
Chelsea FC is in talks with Investor Ares Management.
Ares Management is in talks to invest in Chelsea FC, the English Premier League football club seeking a capital injection.
The US-based investment firm is discussing the size and structure of a possible financing deal with the west London club, Bloomberg reported.
KKR to transfer majority stake in Unzer to creditors.
Private equity firm KKR is reportedly set to transfer payments firm Unzer to a group of creditors. The debt providers Alcentra Asset Management, Goldman Sachs Asset Management and Partners Group have agreed in principle to take over a majority stake in Unzer. They will provide fresh equity and forego some debt.
KKR, which acquired control of Unzer in 2019, when the firm was still called Heidelpay, will retain a minority stake in the payments firm, Bloomberg reported.
"Unzer has recently received substantial funding to accelerate its growth following an agreement with our shareholders and a consortium of existing investors. KKR continues to have an economic interest in Unzer. Please understand that we cannot disclose further details of the investment. The new investment strengthens our capital structure and bolsters our liquidity so that we continue to be ideally positioned to deliver our business plan and make strategic investments that will drive our growth and shape the future of our industry," KKR and Unzer.
Crypto exchange Bitstamp is in talks to raise funds for expansion.
Bitstamp, one of the oldest crypto exchanges, is in talks to raise fresh funding, according to Jean-Baptiste Graftieaux, global chief executive officer of the platform, Bloomberg reported.
Bitstamp started the fundraising process in late June, with Galaxy Digital acting as an adviser. The exchange plans to use the funds for operations, including launching derivatives trading in Europe next year and expanding the number of markets it serves in Asia, as well its operations in the UK.
Gordon Brothers weighs rescue bid for British retailer Wilko.
Gordon Brothers, a liquidation and restructuring firm specialist investor in Britain's Wilko was exploring a bid to rescue the struggling retail chain, SkyNews reported.
The discount retail chain, which sells homeware and household goods, had received indicative offers to help recapitalise itself but none of them were able to provide sufficient liquidity in the time needed, putting 12k jobs on the line.
Saudi Arabia's PIF sets up SRJ Sports Investments.
Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has announced the launch of SRJ Sports Investments, a new company aimed at boosting the sports sector in Saudi Arabia and the MENA region, DealStreetAsia reported.
SRJ Sports Investments will focus on acquiring and creating sports event intellectual property, commercial rights for popular competitions, and hosting global events in Saudi Arabia.
Warburg Pincus eyes legal action over Polish pharmacy law change.
Warburg Pincus, a private equity firm that invests in companies based in the Americas, Europe, Middle East, and Asia is prepared to take legal action against Poland over what it sees as a de-facto freeze of its investment in Gdansk-based pharmacy operator Gemini.
US-based Warburg Pincus has told the Polish government it plans to file for arbitration if an amendment to a 2017 law preventing investors from expanding, buying, or selling pharmacies gets enshrined in the coming weeks.
Deutsche Bank’s asset manager targets the ‘Holy Grail’ of the world’s ultra rich.
The investment unit of Deutsche Bank is the latest asset manager to target the ultra-wealthy in a bid to grow its alternatives business, Bloomberg reported.
DWS Group is approaching high net worth individuals and family offices globally, Paul Kelly, the head of its Alternatives unit. He sees an opportunity to tap into demand for assets such as real estate and private credit.
CVC exploring IPO of €7bn perfume retailer Douglas.
CVC Capital Partners is weighing an initial public offering of Douglas and could seek a value of more than €7bn ($7.7bn) for the German perfume retailer, Bloomberg reported.
The private equity firm is working with independent adviser Rothschild & Co as it explores a possible 2024 IPO of the business. CVC is eyeing Frankfurt as a listing venue for Douglas and will start to ask banks to pitch for roles next month.
Apple and Samsung to invest in SoftBank's Arm at IPO.
Apple and Samsung Electronics will invest in SoftBank Group-owned chip designer Arm at its initial public offering, expected in September.
In June that Arm was in talks with some ten companies - including Apple, Samsung and Intel - with the aim of bringing on one or more anchor investors in the offering, Reuters reprted.
APAC
Toshiba said a group led by private equity firm Japan Industrial Partners would launch a $15bn tender offer on August 8 to take the industrial conglomerate private and put it in domestic hands, DealStreetAsia reported.
The tender offer, which values the electronics-to-power stations maker at $15bn, will complete on September 20. It was originally scheduled to start in late July, but pushed back due to a regulatory delay.
Toshiba is advised by JP Morgan, Mizuho Securities, Nomura, UBS, Morrison & Foerster, Nagashima Ohno & Tsunematsu, Nishimura & Asahi, White & Case and Kekst CNC (led by Jochen Legewie). JIP is advised by Crosspoint Advisors, Davis Polk & Wardwell (led by Ken Lebrun), De Brauw Blackstone Westbroek (led by Pete Lawley), Hengeler Mueller (led by Thomas Meurer), Shearman & Sterling (led by Etienne Gelencsér, Derek Kershaw and Simon Letherman), Slaughter & May (led by Richard Hilton) and TMI Associates.
Carlyle to acquire a minority stake in Quest Global from Bain Capital and Advent International for $500m.
Carlyle, a global investment firm with deep industry that deploys private capital across its business, agreed to acquire a minority stake in Quest Global, an engineering research and development services company, from Bain Capital, a private investment firm that specializes in private equity, venture capital, credit, public equity, and Advent International, a private equity firm that invests in business and financial services, for $500m.
"At Quest Global, we believe engineering has the unique opportunity to solve the problems of today that stand in the way of tomorrow – to create a brighter future. It was a great value-added partnership with Carlyle the first time around, and I look forward to working with Carlyle again, to propel us in the journey ahead. Together, I am confident we will deliver on our mutual commitment to provide cutting-edge engineering solutions to our clients around the world, while preserving our entrepreneurial culture," Ajit Prabhu, Quest Global Chairman and CEO.
Carlyle is advised by KPMG, Citibank, Deutsche Bank, HSBC, ING Group, Nomura, Standard Chartered Bank, Clifford Chance, Allen & Overy, Linklaters and Trilegal. Quest Global is advised by BNP Paribas, Barclays, JP Morgan, and Latham & Watkins.
India’s company law tribunal approved a merger between Sony Group’s South Asian unit and Zee Entertainment Enterprises, clearing the way for the creation of a media behemoth.
The deal aimed at creating a $10bn Indian media giant had received the necessary regulatory approvals from the country’s stock exchanges, as well as the antitrust regulator last year. But the proposed merger then faced legal challenges from creditors before the National Company Law Tribunal, where last of approvals were sought.
Australia's InvoCare, a funeral homes and funeral services company, said on Wednesday it has agreed to a lower takeover offer from US private equity firm TPG Global, valuing the funeral service provider at AUD2.2bn ($1.44bn) following exclusive due diligence.
InvoCare's board unanimously recommended its shareholders to vote in favour of the revised proposal, Reuters reported. A TPG spokesperson said the revised price fairly values the business, taking into consideration factors including its subdued performance in the first half of this year and the implications of the current trading conditions on the remainder of the year.
InvoCare is advised by Goldman Sachs, Gresham, Clayton Utz and Cato & Clive (led by Clive Mathieson).
Global private equity firm Bain Capital will pay $552m for Australian aged care operator Estia Health, pushing the takeover target's stock to a near five-year high in a sign that appetite for deals down under remains strong, Reuters reported.
The Sydney-based Estia said it had signed a deal to finalise the takeover at $2.1 per share which is a 25.5% premium to Estia's stock closing price on June 6, before the offer was first disclosed.
Estia Health is advised by John Connolly & Partners (led by Julie
Connolly), UBS, and Minter Ellison. Bain is advised by Kirkland & Ellis.
Mixed Reform Fund, a national fund supporting mixed-ownership reforms of state-owned enterprises, and CCB, a private equity investment arm of China Construction Bank, led a $111m Series C round in Beijing Sinoscience Fulleryo, a producer of a large-scale cryogenic equipment, with participation from CMG-SDIC Capital and Yuexiu Industrial Fund.
The Beijing-based firm will use the proceeds to expand the manufacturing capability of its cryogenic equipment.
Advent International, a private equity firm, agreed to acquire a majority stake in Zimmermann, a luxury fashion brand, from Style Capital, a private equity fund specialising in fashion and lifestyle brands. Financial terms were not disclosed.
The investment by Advent will allow Zimmermann to speed up expansion abroad including in Asia and the Middle East, and boost its distribution network, including the digital offer.
Blackstone to submit a $3.8bn bid for stake in Cipla.
Blackstone will submit a bid next week to acquire a 33.47% stake in Cipla, India's third-largest generics company by revenues, in a $3.8bn deal.
Blackstone's acquisition could potentially lead to the exit of the Hamied family, which founded the company in 1935. If successful, this would mark one of India's biggest and most substantial private equity-led buyouts.
The move will also trigger an open offer for an additional 26% of Cipla, upon full subscription of which Blackstone would end up owning as much as 59.4% of Cipla's stake, Reuters reported.
Bertelsmann Investments to invest $700m in Chinese startups.
Bertelsmann Investments, the venture capital arm of German media group Bertelsmann, is reportedly looking to invest $700m in Chinese startups over the next 3-5 years despite widespread concerns among Western investors over the country's slowing economy and its political tensions with the US, DealStreetAsia reported.
Bertelsmann Investments aims to support tech groups in China and start-ups established by Chinese globally, with co-investors including major financial institutions and sovereign wealth funds.
QIA likely picks up shares worth $500m in India's Adani Green.
Qatar Investment Authority likely picked up shares worth $500m in India's Adani Green Energy via block deals on August 7, Reuters reported.
QIA's potential investment in the billionaire Gautam Adani-owned firm comes at a time when the group is coming out of the impact caused after US-based Hindenburg Research said it held short positions in the conglomerate in January.
SoftBank may turn profit after huge Vision Fund loss.
SoftBank Group's Vision Fund is likely to return to profitability after five quarters of losses, thanks to an artificial-intelligence-fueled rebound that's lifting startup valuations, Bloomberg reported.
The Japanese conglomerate is fighting to regain its footing after losing $48bn at the Vision Fund investment unit in the last two fiscal years. Analysts expect a modest profit at the fund for the three months ended June, while SoftBank as a whole will likely report a profit of around $515m on August 8.
Sterlite Power in talks with GIC for $300m fund infusion.
Sterlite Power, which is backed by metals magnate Anil Agarwal's Vedanta Group, is in talks to rope in Singapore's sovereign wealth fund GIC as a strategic partner for the power transmission business and a $300m cash infusion.
An internal rejig is underway at Sterlite Power. The plan is to demerge the solutions business and then list it later on the domestic bourses. GIC is not keen on exposure to the solutions business. Once the spin-off is done, GIC plans to invest around $300m as part of a 51:49 joint venture with Sterlite Power for the power transmission business.
BGMI-maker Krafton to pump $150m into Indian gaming startup.
BGMI-maker KRAFTON, the leading South Korean gaming company, intends to invest $150m in India over the next two to three years. The company claims to have already infused approximately $140m in 11 innovative Indian start-ups since its first investment in March 2021.
“We are excited to foster the growth of start-up ecosystem in India and are dedicated to having a transformative impact not only in the gaming and tech industry but also in the wider content landscape. We firmly believe in India’s potential as a key player in the global gaming and technology industry, and our commitment to invest an additional $150m over the next two to three years reflects our dedication to fuelling this growth. We believe in the power of Indian IPs and content in making a lasting global impact, and we are excited to achieve new milestones in our journey to unlock the country's full potential as a global gaming powerhouse,” Sean Hyunil Sohn, KRAFTON India CEO.
OTPPB mulls a $100m investment in Xpressbees.
Ontario Teachers' Pension Plan Board is considering making a $100m investment in Indian e-commerce logistics startup Xpressbees.
The Canadian pension investor may buy a stake in the firm at about a $1.4bn. The funds would potentially be used for purposes includ ing acquisitions. Discussions are ongoing and details of the fundraise could change, Bloomberg reported.
Swiggy, Lenskart among SoftBank's Indian startups preparing for IPOs.
SoftBank's Indian portfolio companies food delivery firm Swiggy, eyewear brand Lenskart, omnichannel retailer FirstCry, and business-to-business commerce startup OfBusiness are preparing to go public soon, DealStreetAsia reported.
SoftBank's portfolio companies are cumulatively valued at $42bn. 93% of the Japanese group's portfolio comprising 473 firms boast a positive cash runway of over 12 months. The Vision Fund will begin reinvesting again after a prolonged period of inactivity due to six consecutive quarters of losses.
Hong Kong's PAG said to have closed third Asia realty fund at $1.8bn.
Hong Kong-based private equity firm PAG raised $1.8bn in the final close of its Asia-focused core-plus real estate vehicle PAG Real Estate Partners III, DealStreetAsia reported.
The fund secured commitments from 18 institutional investors globally, including pension funds, endowments, and sovereign wealth funds.
Miyako Capital launches fund for deeptech, AI startups.
Kyoto University-linked venture capital firm Miyako Capital has launched a $141m fund to support startups focused on deep-tech biology and artificial intelligence, DealStreetAsia reported.
The new fund will be one of Japan's largest in its category and is set to allocate between $3.5m and $7m per startup, with half the funds dedicated to biology and life sciences and the other half to AI and electronics.
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