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, 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, 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, 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, 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, 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, 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, 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, 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, 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, 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, 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, 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.
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.
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, 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.
RedBird and more are eyeing investment in SpringHill. (FS)
LeBron James’ content company SpringHill is in advanced talks to secure a significant strategic investment from a consortium including Fenway Sports Group, RedBird Capital and Nike.
The private equity firm is in talks to take a significant minority stake in the company. The new investment partners would flush the operation with cash and value the entity between $650m and $700m.
Lexington Partners hires Goldman Sachs for its sale exploration. (FS)
Investment firm Lexington Partners is exploring a sale of its business, part of an increasingly popular niche of the red-hot private-equity industry.
Closely held Lexington, which specializes in buying secondhand stakes in private-equity funds, has hired Goldman Sachs Group to advise on a potential sale, which could value the firm at a few billion dollars.
Thoughtworks's gain leads to share price bloom in more high-performing IPOs.
According to Bloomberg, technology consulting firm Thoughtworks Holding climbed as much as 40% in its trading debut after raising $773m in one of four large initial public offerings priced above their marketed ranges.
Leading a burst of US IPOs that delivered first-day gains for investors, the Chicago-based company’s shares closed at $29.39 in New York trading, giving the company a market value of almost $9bn. The company sold almost 37m shares for $21 after marketing them for $18 to $20.
STG Partners seeks a $750m new fund. (FS)
STG Partners is pitching its first fund focused on investments in lower midmarket technology deals in a red-hot market for such funds, WSJ reported.
The Palo Alto, California-based midmarket technology investor, previously known as Symphony Technology Partners, is seeking $750m for the new fund, STG Allegro.
Aldrich Capital's second fund hits hard cap at $450m. (FS)
Lower midmarket growth firm Aldrich Capital Partners has secured $450m for its second investment vehicle, hitting its hard cap amid strong demand from institutional investors.
The vehicle, Aldrich Capital Partners Fund II, exceeded both the firm’s $350m target and the $256m that Aldrich raised for its first fund, which closed in June 2018.
Cigarette maker Philip Morris has clinched the $1.4bn takeover of inhaler maker Vectura after winning the backing of about 75% of shareholders in the British company, part of its expansion beyond tobacco, Reuters reported.
"We have reached an important milestone in our acquisition of Vectura and are pleased to have secured over 74% of the company's shares, in excess of the 50% required to make our offer unconditional and PMI the majority shareholder," Jacek Olczak, PMI CEO.
Vectura is advised by JP Morgan, Numis Securities, Rothschild & Co, Clifford Chance, Consilium Strategic Communications and FTI Consulting. PMI is advised by Bank of America, DLA Piper, Foxcroft Consulting and Sanctuary Counsel. Carlyle Group is advised by Morgan Stanley, RBC Capital Markets, Latham & Watkins, Linklaters, Ropes & Gray and Greenbrook.
Bridgepoint, a pan-European private equity investor, agreed to acquire Achilles, a provider of supply chain risk and performance management services. Financial terms were not disclosed.
“Achilles, with its global platform, breadth of risk coverage, in-house audit capabilities, and depth of data validation provides a compelling proposition to its customers. We look forward to working with the Achilles management team and have already identified multiple avenues to drive value creation in a sector which is growing due to increasing supply chain complexity and corporate focus on supply chain risk and ESG," Matt Legg, Bridgepoint Director.
Bridgepoint is advised by McKinsey & Company, BDO, Raymond James, Ropes & Gray and Intechnica. Achilles is advised by Robert W Baird.
Euroclear, a financial services company, completed the acquisition of MFEX Mutual Funds Exchange, an expert in global fund distribution, from Nordic Capital, a private equity firm. Financial terms were not disclosed.
“Over the past years, we have together with Nordic Capital invested in our platform and continued to transform the fund distribution proposition. Euroclear is a great strategic fit for the next stage of our journey. By adding our respective strengths, we will be able to build an even better and stronger solution for fund distribution," Jean Devambez, MFEX CEO.
Euroclear was advised by McKinsey & Company, JP Morgan, PricewaterhouseCoopers and Linklaters. Nordic Capital was advised by Cederquist.
General Atlantic, a global growth equity firm, led a $150m Series E funding round in Matillion, a developer of cloud-based data integration technologies. Additional investors include Battery Ventures, Sapphire Ventures, Scale Venture Partners, and Lightspeed Venture Partners.
“Enterprises need to effectively close information gaps by rapidly transforming operational data into analytics-ready datasets that fuel business intelligence, AI, and ML innovation. With Matillion, large organizations are empowered with a data operating system that is purpose-built for the enterprise, enabling a broad spectrum of data users — from data scientists and engineers to marketers and business analysts — to make data useful," Matthew Scullion, Matillion CEO.
Arvedi, a manufacturer of steel products, agreed to acquire Acciai Speciali Terni, a steel mill, from thyssenkrupp, a conglomerate with a focus on industrial engineering and steel production. Financial terms are not disclosed.
“This fourth transaction shows once again clearly that we are working through our priorities and making decisive progress in the transformation of thyssenkrupp. Speed in focusing the portfolio is crucial for a successful change process. At the same time, improving performance remains our most urgent task. Here too we are well on track and will not let up,” Martina Merz, thyssenkrupp CEO.
Abu Dhabi Development, a holding company, agreed to acquire Acino, a Swiss pharmaceutical company, from private equity firms Nordic Capital and Avista Capital Partners. Financial terms were not disclosed.
Acino is committed to advancing the development of healthcare by enhancing access to high-quality medicines that patients and governments can trust and value, and ADQ’s support will accelerate this ambition. Having built a solid reputation as a leading provider of advanced pharmaceutical solutions in emerging markets, we are excited about the opportunity for business transformation and commercial growth potential as Acino joins ADQ’s healthcare and pharma portfolio," Steffen Saltofte, Acino CEO.
ADQ is advised by Jefferies & Company.
Blackstone hopes to acquire VFS Global for $1.2bn. (FS)
US-based alternative investment management company Blackstone is in advanced talks to acquire Dubai-headquartered VFS Global, a visa outsourcing company, for $1.2bn.
Founded in India, VFS Global is a spinoff of Swiss travel group Kuoni. It is 90% owned by Swedish private equity firm EQT and 10% by the Kuoni Foundation, Hugentobler Foundation and founder CEO Zubin Karkaria.
Grupo Mexico and Hudbay Minerals compete for $2bn Spanish Miner.
Conglomerate Grupo Mexico and Canada’s Hudbay Minerals are among final bidders competing to acquire a Spanish copper miner from Trafigura Group, Bloomberg reported.
The parties made binding offers last week for Minas de Aguas Tenidas, which is known as Matsa and could fetch about $2bn. Grupo Mexico, which could make the purchase through its listed mining unit Southern Copper, is seen as a strong contender for the business.
Lufthansa chooses JP Morgan on its Technik unit stake sale. (FS)
Deutsche Lufthansa has picked JP Morgan to advise on the disposal of a minority stake in its aircraft-maintenance division, Bloomberg reported.
Germany’s flagship carrier is working with the bank as it weighs a possible stake sale or initial public offering for the Technik business. Technik could be valued at €3.5bn ($4.1bn) to €5bn ($6.9bn) in any deal.
Dutch Bros shares increased 59% after IPO.
Coffee chain Dutch Bros rose 59% in its trading debut after exceeding goals for its initial public offering to raise $484m, Bloomberg reported.
Dutch Bros shares closed at $36.68 in New York trading, giving the company a market value of about $6.1bn.
Pictet Alternative Advisors closes its thematic private equity fund at $350m. (FS)
Pictet Alternative Advisors, the alternative investment specialist of the Pictet Group, has held the final close of its debut thematic private equity fund focused on technology at its hard cap of $350m.
The Pictet Thematic Private Equity – Technology fund was launched in October 2020, with a target fund size of $300m and reached its hard cap at $350m, underlining the strong appetite for this type of strategy. The fund is managed by the Thematic team under Pierre Stadler.
Prenetics, a company specializing in genomic and diagnostic testing, agreed to go public via a SPAC merger with Artisan Acquisition, a special purpose acquisition company, in a $1.25bn deal. The transaction includes $120m PIPE from Aspex, PAG, Lippo, Dragonstone and Xen Capital.
"This announcement is a significant milestone for Prenetics and for Hong Kong entrepreneurs. Our goal is to decentralize healthcare by bringing it closer to millions of patients globally. I am humbled and honoured by Adrian's trust in us, and we look forward to continuing to work closely across his extensive business network to deliver on the massive potential which exists to disrupt the healthcare market. With a strong existing business, an exciting product pipeline, and a clear M&A acquisition strategy for USA geographical expansion, we have first-mover advantage and are well-positioned for our next chapter of growth," Danny Yeung, Prenetics CEO and Co-Founder.
Prenetics is advised by KPMG, China International Capital, Citigroup, Credit Suisse, UBS, Mourant Ozannes and Skadden Arps Slate Meagher & Flom. Artisan Acquisition is advised by UBS, Appleby and Kirkland & Ellis. UBS is advised by Shearman & Sterling.
Ooredoo, an international communications company, and CK Hutchison, a renowned multinational conglomerate, are set to merge PT Indosat, a provider of telecommunications networks and telecommunications services, and PT Hutchison 3 Indonesia, a telecommunications service provider, in a $6bn deal.
“This agreement is a significant step towards our shared vision of creating outstanding value for our customers and shareholders by bringing together two of Indonesia’s leading telecoms brands to create a stronger number two player in Indonesia, backed by two highly committed partners in Ooredoo Group and CK Hutchison. With this agreement in place, we can now turn our attention to closing the transaction and then working closely with CK Hutchison to leverage the combined expertise of our respective global telecoms groups to build a world-class digital telco for Indonesia," Aziz Aluthman Fakhroo, Ooredoo Managing Director.
Ooredoo is advised by JP Morgan, FTI Consulting and Wallis PR. CK Hutchison is advised by Goldman Sachs and HSBC. PT Indosat is advised by Barclays. H3I is advised by Maverick.
Private equity firms Princeville Capital and Woodline Partners led a $230m Series F funding round in SmartNews, an operator of a news platform. Other investors include JIC Venture Growth, Green Co-Invest, Yamauchi-No.10 Family Office, ACA Investments and SMBC Venture Capital.
“We are proud of what we have built and what the business has accomplished to date. The US market will be a touchstone for further growth as we contribute to shaping a better future for quality journalism and exceptional information delivery on a global scale. Our users continue to make SmartNews their ‘must use’ daily information source, and we look forward to deepening our relationships with publishers as we expand our portfolio of valuable tools and content," Ken Suzuki, SmartNews CEO and Co-Founder.
CDH, an alternative asset management firm, led a $108m Series C funding round in IASO Biotherapeutics, a developer of cancer biotherapeutics. Other investors include CCB International, Everbright, Co-Stone Capital, CNCB Capital, Plaisance Capital and GL Ventures.
“The proceeds raised will enable us to advance our innovative pipeline and consolidate our strategic positioning and advantages in immuno-oncology and autoimmune diseases. With an innovative and pioneering spirit and strong execution ability, our team will continue to commit ourselves to bringing life-changing therapies to patients worldwide," Wen Wang, IASO Bio CEO & CMO.
Tiger Global led a $100m Series C funding round in Apna, a developer of a global recruitment platform designed to provide employment to the grey and blue-collar workforce. Additional investors include Owl Ventures, Insight Partners, Sequoia Capital India, Maverick Ventures and GSV Ventures.
“Apna’s viral adoption is driven by a novel social and interactive approach to connecting employers with job seekers. We expect job seekers in search of meaningful connections and vetted opportunities to drive Apna’s continued explosive growth across India — and the world,” Griffin Schroeder, Tiger Global Partner.
Invesco Developing Markets, a fund that invests in emerging and developing market stocks, led a $100m investment in Pine Labs, an Indian merchant platform company.
“Over the last 18 months we have scaled our Prepaid Issuing stack, Online Payments, and also the Buy Now Pay Later offering. We continue to make progress in the larger Asian markets with our BNPL platform. Very excited to have a marquee investor like Invesco join us in the journey,” B. Amrish Rau, Pine Labs CEO.
Blackstone and Fortress are bidding for MBK’s Japan golf assets. (FS)
Blackstone and Fortress Investment Group are bidding to acquire Japanese golf-related assets from MBK Partners in a deal that could be worth more than $3bn, Bloomberg reported.
Blackstone and Fortress, a unit of SoftBank Group, made it through an initial round of bidding in August, with the next round to be held in October. MBK, a North Asian private equity firm, is selling Accordia Golf and Next Golf Management, which are estimated to be worth around JPY400bn ($3.6bn) combined.
CITIC Capital and SCPG hold final close of a $408m fund. (FS)
China’s CITIC Capital has held the final close of an RMB-denominated retail real estate fund at RMB2.625bn ($408m) in partnership with SCPG, to invest in the country’s Tier I and Tier II cities.
“The new fund, dubbed Vanke SCPG & CITIC Capital Retail Fund, will focus on investment opportunities in retail-focused commercial real estate projects that have upside potential after upgrade or renovation,” CITIC Capital.
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