Daily Review

Canadian Pacific to acquire Kansas City Southern for $31bn.

Canadian Pacific, a transportation services company, agreed to acquire Kansas City Southern, a transportation holding company, for $31bn.

“Our path to this historic agreement only reinforces our conviction in this once-in-a-lifetime partnership. We are excited to get to work bringing these two railroads together. By combining, we will unlock the full potential of our networks and our people while providing industry-best service for our customers. This perfect end-to-end combination creates the first US-Mexico-Canada rail network with new single-line offerings that will deliver dramatically expanded market reach for CP and KCS customers, provide new competitive transportation options, and support North American economic growth," Keith Creel, Canadian Pacific President and Chief Executive Officer.

Kansas City Southern is advised by Bank of America, Morgan Stanley, Baker & Miller, Davies Ward Phillips & Vineberg, Wachtell Lipton Rosen & Katz, White & Case, WilmerHale, Joele Frank and MacKenzie Partners. Bank of America is advised by Willkie Farr & Gallagher. Canadian Pacific is advised by BMO Capital Markets, Evercore, Goldman Sachs, Bennett Jones, Blake Cassels & Graydon, Creel Garcia-Cuellar Aiza y Enriquezm, David L Meyer, Sullivan & Cromwell and Edelman. Financial advisors were advised by Fried Frank Harris Shriver & Jacobson.

Moody's completed the acquisition of RMS from Daily Mail and General Trust for $2bn.

Moody's, an American business and financial services company, completed the acquisition of RMS, a global provider of climate and natural disaster risk modeling and analytics, from Daily Mail and General Trust for $2bn.

“In the context of a global pandemic, the climate crisis and increasing cyberattacks, our customers must manage a wider range of risks than ever before. We are excited to add RMS and its team of world-class data scientists, modelers and software engineers to the Moody’s family to help accelerate solutions that enable customers to build resilience and make better decisions," Rob Fauber, Moody President and CEO.

Moody's was advised by Centerview Partners, Paul Hastings and Brunswick Group. Daily Mail was advised by JP Morgan, Lazard, Cravath Swaine & Moore, Slaughter & May and Teneo. 

First Interstate BancSystem to merge with Great Western Bancorp in a $2bn deal. 

First Interstate BancSystem, a financial holding company, is set to merge with Great Western Bancorp, a regional bank, in a $2bn deal. GWB shareholders will collectively own 43% of the combined company. 

“We’re excited to join forces, and confident that both companies’ stakeholders will benefit from this partnership. We’ll be able to offer customers access to additional branch locations and new products and services, provide new growth and professional development opportunities to our employees, deliver additional returns to our shareholders, and have an even greater impact on our communities," Mark Borrecco, GWB President and CEO.

First Interstate is advised by Barclays, Goldman Sachs, Keefe Bruyette & Woods, Davis Polk & Wardwell and Latham & Watkins. GWB is advised by Piper Sandler and Wachtell Lipton Rosen & Katz. 

Bansk Group completed the acquisition of Arcadia Consumer Healthcare from Avista Capital Partners. (FS)

Bansk Group, a private investment firm focused on building distinctive consumer brands, completed the acquisition of Arcadia Consumer Healthcare, a marketer of branded consumer healthcare products, from Avista Capital Partners, a private equity firm focused exclusively on healthcare. Financial terms were not disclosed.

"Avista invested in Arcadia because we saw the potential for the brands to capitalize on the growing trends in self-care. We are thrilled with the partnership we've enjoyed with Arcadia in developing a highly-effective strategic M&A program, investing in innovation, and expanding into new markets beyond traditional OTC. We're confident that Arcadia will continue to succeed under Bansk's ownership, particularly with Mike DeBiasi and his team remaining at the helm, and are grateful for the opportunity to support them over these last three years," Rob Girardi, Avista Partner.

Arcadia Consumer was advised by Houlihan Lokey, Ropes & Gray and Kekst CNC. Bansk Group was advised by Sawaya Capital, Kirkland & Ellis and Joele Frank. 

Thomas H. Lee Partners to invest in Odessa. (FS)

Thomas H. Lee Partners, an American private equity firm, agreed to invest in Odessa, a developer of an asset finance software designed for the leasing industry. Financial terms were not disclosed. 

"We are grateful for the support of our employees that has fueled our success for more than two decades, and we are humbled by the confidence our customers and investors have in Odessa – but our vision goes further still. There is an enormous opportunity to reimagine the way asset finance companies scale and adapt to disrupting market forces and changing consumer demand. We have the platform, technology, team, and investment partner to be the operating system that powers the modern enterprise," Madhu Natarajan, Odessa Co-Founder & CEO.

Thomas H. Lee is advised by Oliver Wyman, Raymond James and Kirkland & Ellis. Odessa is advised by Houlihan Lokey, KPMG and O'Melveny & Myers. 

Clearlake Capital-backed Pretium Packaging to acquire Alpha Packaging from Irving Place Capital. (FS)

Clearlake Capital-backed Pretium Packaging, a manufacturer of plastic containers, agreed to acquire Alpha Packaging, a manufacturer of plastic bottles and jars, from Irving Place Capital, a private equity firm. Financial terms were not disclosed.

"We are excited to partner with a company that is aligned with our commitment to providing sustainable and complete packaging solutions for customers and will enhance our ability to capitalize on trends such as e-commerce growth and the increasing need for post-consumer recyclable solutions. By bringing together Pretium and Alpha's people, assets, and footprint, our combined platform will be able to better serve customers through enhanced solutions and production capabilities, which will help accelerate the combined company's growth," Paul Kayser, Pretium President and CEO.

Alpha is advised by William Blair & Co. Pretium is advised by Credit Suisse, Deutsche Bank and Evercore. Clearlake Capital is advised by Credit Suisse, Evercore and Lambert & Co. 

CBRE Caledon to acquire a majority stake in CitySwitch from American Infrastructure. (FS)

CBRE Caledon, an infrastructure and private equity manager and solutions provider, agreed to acquire a majority stake in CitySwitch, a build-to-suit wireless tower developer and operator, from American Infrastructure, a provider of investment advisory services. Financial terms weer not disclosed.

“We continue to see strong value for our investors in digital infrastructure and are excited to complete this investment on behalf of our fund and separately managed account. The highly predictable nature of future cash flows supported by long-term contracts for this mission-critical infrastructure will provide our investors with strong downside protection and the potential for superior risk-adjusted returns," Stephen Dowd, CBRE Caledon CIO of Private Infrastructure Strategies.

CBRE is advised by Atlantic-ACM, Evercore, Morgan Lewis & Bockius and Black & Veatch. CitySwitch is advised by TD Securities.

ioneer and Sibanye-Stillwater to form a joint venture in a $490m deal. 

ioneer, a substantial foundation, and Sibanye-Stillwater, an international precious metals mining company, agreed to form a joint venture, a Rhyolite Ridge lithium-boron project located in Nevada, in a $490m deal. Sibanye-Stillwater contributes $490m for a 50% interest.

"Sibanye-Stillwater, with its proven track record of developing and operating major mining projects including operations in the United States, its commitment to developing and maintaining an inclusive and sustainable culture, and its determination to become a major force in the battery materials supply chain, is an excellent partner for ioneer to jointly realize the promise of Rhyolite Ridge. With a strong strategic partner in place, we can now look to finalise the debt financing for the Project and move towards construction. We are confident in the alignment of our companies. Our partnership with Sibanye-Stillwater will allow ioneer to unlock the tremendous, long- term value of Rhyolite Ridge," James Calaway, ioneer Executive Chairman.

ioneer is advised by Goldman Sachs, Ashurst and Vinson & Elkins. Sibanye-Stillwater is advised by Macquarie Capital and Davis Polk & Wardwell. 

Mesa Labs to acquire Agena Bioscience for $300m.

Mesa Labs, a firm that acquires, develops, manufactures, and markets electronic measurement instruments, agreed to acquire Agena Bioscience, a developer and manufacturer of genetic analysis systems and reagents, for $300m.

“Our robust technology platform along with deep customer partnership has been the foundation of our success. We built our company based on a strong team-oriented values system, and we see a great fit with the Mesa culture. We look forward to working with the Mesa team to expand the applications we deliver and innovate new technologies for clinical genomics," Peter Dansky, Agena CEO.

Agena Bioscience is advised by Jefferies & Company and DLA Piper. Mesa Labs is advised by Davis Graham & Stubbs. 

Fortitude to acquire PALAC block of Prudential Financial for $1.5bn.

Fortitude, a multi-line composite reinsurer, agreed to acquire PALAC block, a in-force legacy variable annuity block, of Prudential Financial, a financial services provider, for $1.5bn.

“This transaction is an important step forward for Fortitude Re and demonstrates our expertise in delivering comprehensive and value enhancing solutions for our clients. Our strong, diversified balance sheet, proven risk management capabilities, and access to Carlyle’s asset origination franchise are key differentiators that enable us to responsibly manage complex, long-dated insurance liabilities. I am excited about the partnership with Prudential and the strategic opportunities this acquisition creates,” James Bracken, Fortitude Re CEO.

Fortitude Re is advised by Debevoise & Plimpton. Prudential is advised by Sidley Austin and Goldman Sachs & Co.

Ayr Wellness completed the acquisition of GSD for $101m.

Ayr Wellness, a vertically integrated cannabis multi-state operator, completed the acquisition of Garden State Dispensary, a cannabis store, for $101m.

“We see an incredible opportunity to drive growth at retail with the introduction of our quality cannabis brands, expanded product offerings and exceptional in-store experience. Additionally, we see an excellent opportunity for wholesale growth given our planned cultivation expansion and past success at driving wholesale penetration in supply-constrained markets,” Jonathan Sandelman, Ayr Chairman and Chief Executive Officer.

Ayr was advised by Gateway Investor Relations and Mattio Communications. 

Baker Tilly to acquire Arnett Carbis Toothman.

Baker Tilly, an advisory firm, agreed to acquire Arnett Carbis Toothman, an accounting and consulting firm. Financial terms are not disclosed.

“ACT has top-notch talent, strong leadership and exceptional client relationships. We are committed to this region and excited for the possibilities this combination will bring," Jeff Ferro, Baker Tilly Managing Partner.

Baker Tilly and Arnett Carbis Toothman were advised by Koltin Consulting Group.

CoreLogic completed the acquisition of Next Gear Solutions.

CoreLogic, a provider of information intelligence to identify and manage growth opportunities, completed the acquisition of Next Gear Solutions, a developer of a workflow and job management software for the construction restoration industry. Financial terms were not disclosed. 

“The combination of CoreLogic and Next Gear introduces a more compelling alternative to the status quo. We invite those seeking strategic agility to consider the breadth of our entire platform. We are committed to providing leading edge solutions that promote customer choice and will continue to work with all industry participants to ensure secure and customer-directed flow of data, so the market has expanded options," Garret Gray, Next Gear Solutions Founder and CEO.

Next Gear was advised by Jefferies & Company.

Integrity Marketing completed the acquisition of Aegis Financial.

Integrity Marketing, a provider of marketing services, completed the acquisition of Aegis Financial, a financial marketing organization. Financial terms were not disclosed.

"Integrity has the honor of partnering with some of the biggest names in the life and health insurance business and today we're thrilled to add Aegis Financial, a leader in wealth planning, to our expert platform. Darin and Carl have built a thriving business upon a strong, values-based foundation and unyielding commitment to excellence. As part of the Integrity family, we'll provide them with the world-class support to help them grow even faster, through marketing resources, technology and a wide range of supportive services. Together, we'll transcend into new markets and find new ways to better serve the health, wealth and retirement needs of even more Americans," Bryan W. Adams, Integrity Marketing Co-Founder and CEO.

Aegis was advised by Morgan Lewis & Bockius. 

Northzone led a $167m Series A funding round in SellersFunding. (FS)

Northzone, an early stage venture capital fund, led a $167m Series A funding round in SellersFunding, a developer of a financial platform designed to help e-commerce merchants to scale their business. Endeavor Catalyst and Fasanara also participated.

SellersFunding leverages sales data provided by the marketplaces and e-commerce platforms to create sales and cash flow estimates based on the credit limits given to clients so that owners can better understand the fees they are paying and make more informed decisions. The company will continue to invest on the payments side and to promote cross-border payments.

Founders Fund led a $150m Series C funding round in Persona. (FS)

Founders Fund, a venture capital firm, led a $150m Series C funding round in Persona, a developer of identity verification systems. Additional investors include Meritech Capital, BOND, and existing investors Index Ventures and Coatue Management. 

The new financing will help drive the next phase in Persona's growth, as the company expands its team, extends the offering within its identity infrastructure, and furthers its vision of a ubiquitous identity layer that makes the internet safer, more trusted, and more accessible.

"Persona is fast becoming the market leader in the identity space. We're confident that Rick and Charles will fulfill their vision of delivering the trusted identity layer for the entire internet. Founders Fund is thrilled to support Persona in scaling to meet global demand," Napoleon Ta, Founders Fund Partner.