Daily Review

Patient Square Capital, a private equity firm, agreed to acquire Hanger, a provider of orthotic and prosthetic patient care services and solutions. Financial terms were not disclosed.

“I’m very pleased to be announcing this agreement today as the transaction will result in immediate and substantial value creation for our stockholders. This transaction represents a culmination of an extensive review by our Board of Directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team, and is grounded in similar values that guide our actions. They share the same long-term vision for our company, which makes them an excellent partner for the next phase of our journey,” Vinit Asar, Hanger President and Chief Executive Officer.

Hanger is advised by Bank of America, Westwicke, Foley & Lardner, Greenberg Traurig and Kirkland & Ellis. Patient Square is advised by Latham & Watkins and Dukas Linden Public Relations . Debt financing is provided by Ares Capital. Ares Capital is advised by Proskauer Rose.

 

Wynnchurch Capital, a private equity firm, completed the acquisition of FCA Packaging, a manufacturer of customized industrial protective packaging solutions, from Delos Capital, an investment company. Financial terms were not disclosed.

“We are very pleased to partner with FCA, which has a long, established track record of delivering industry leading quality, uniquely designed solutions, and just-in-time service. Its customer-centric focus and highly engineered industrial applications are a strong fit with our investment philosophy of acquiring well-managed industry leaders,” Frank Hayes, Wynnchurch Managing Partner.

FCA Packaging was advised by Lincoln International. Wynnchurch Capital was advised by Stifel.

Groupe Le Duff, a bakery, pastry, and catering company, and Bridor, a food and beverages company, agreed to acquire Lecoq Cuisine, a company which engages in the production of viennese and french-style pastries. Financial terms were not disclosed.

"Having followed Eric Lecoq's exemplary career with great interest for several years, I am especially proud of this acquisition. The Group's international history is closely linked to America, which is my second home," Louis Le Duff, Le Duff Group and Bridor Founder & Chairman.

Lecoq Cuisine is advised by Barron International Group.

Altice USA is exploring the sale of Suddenlink, which provides cable and internet service in the south-central US, as the telecommunications company seeks to pay down its massive debt load.

Altice USA is working with Goldman Sachs on the potential sale, which could fetch as much as $20bn. The unit has about $1.3bn in earnings before interest, taxes, depreciation and amortization. Altice USA has begun soliciting interest from potential suitors. The company could still decide to keep the division, Bloomberg reported.

Private equity firm Global Emerging Markets Group said it plans to invest $450m in lithium startup EnergyX, which is trying to revive its business prospects in Bolivia as it prepares to go public by 2024.

EnergyX will have 36 months after it launches an initial public offering to draw from the $450m that GEM has committed. GEM will receive shares reflecting the value of EnergyX's stock at the time of each drawdown. GEM will also receive warrants in EnergyX at an undisclosed strike price, Reuters reported.

ConocoPhillips is exploring a sale of its stake in the Ursa platform and Princess subsea well in the Gulf of Mexico, in what would mark its exit from deepwater energy production off the US Gulf coast.

The oil producer has been offloading assets as it shifts to become a major operator in the Permian basin, the heart of the shale industry in the United States. It has targeted between $4bn and $5bn in divestments by the end of 2023.

Conoco has retained a financial adviser to sell its 15.9% holding in the Ursa/Princess development, which is likely to be valued in the high hundreds of millions of dollars, Reuters reported.

Banco Santander was eliminated from the bidding process for Citigroup’s Mexican unit, opening the way for a takeover by a local rival.

The Spanish lender made a non-binding offer for Banamex but has been informed it isn’t proceeding to the next stages of the process. Mexican President Andres Manuel Lopez Obrador has said he wants Banamex to be taken over by Mexican owners.

Santander was the only foreign bank known to have made a bid for Banamex, with others parties interested said to include Mexican bank Grupo Financiero Banorte and billionaire Carlos Slim’s Grupo Financiero Inbursa, Bloomberg reported.

Fifth Wall, a venture capital firm focused on technology for the global real estate industry, has held the final close of its inaugural Climate Fund with $500m in capital commitments.

The fund aims to invest in software, hardware, renewable energy, energy storage, smart buildings, and carbon sequestration technologies to decarbonise the $10.5tr real estate industry.

To date, the Climate Fund has already completed strategic investments in several promising technology companies, including Assembly OSM, Brimstone, Clarity AI, Electric Hydrogen, ICON, Sealed, SPAN, Turntide Technologies and Wildcat Discovery Technologies.

 

The UK’s Competition and Markets Authority says the sale of several Noble rigs to a new unit of Shelf Drilling should clear the way for its proposed merger with Maersk Drilling. The CMA opened an investigation into the $3.4bn merger deal in February, later warning that it could increase costs and reduce service quality for oil and gas producers in the UK North Sea, particularly in the supply of jack-up rigs.

In response, Noble and Maersk Drilling signed a $375m deal to sell-off several units to a new subsidiary of Dubai-based Shelf Drilling to address the watchdog’s concerns. The CMA’s latest guidance suggest the sale of these so-called “remedy rigs” may indeed enable the merger to proceed.

Maersk Drilling is advised JP Morgan, Davis Polk & Wardwell and Gorrissen Federspiel. JP Morgan is advised by Cravath Swaine & Moore. Noble is advised by DNB Bank, Ducera Partners, Kirkland & Ellis, Plesner and Travers Smith. DNB Bank and Ducera Partners is advised by Morrison & Foerster.

 

Britain's competition watchdog approved a merger of sports broadcasting businesses of BT Group and Warner Bros.

In June, Britain's Competition and Markets Authority started what it calls a Phase 1 investigation on whether the joint venture would reduce competition. The authority said it would not refer the deal to a in-depth Phase 2 investigation. BT Group and Warner Bros. Discovery welcomed the decision, which allows them to complete the creation of the joint venture, BT Sport and Eurosport UK, in the coming weeks and to transfer assets to it, Reuters reported.

Warner Bros is advised by DLA Piper. BT Group is advised by Lazard and CMS.

Phillips 66, a diversified energy manufacturing and logistics company, and H2 Energy, a producer of electricity, completed the formation of a joint venture to develop hydrogen refueling network. Financial terms were not disclosed.

“At Phillips 66, we believe that expanding access to hydrogen is critical to achieving a lower-carbon future. We’re excited to join forces with H2 Energy, which has demonstrated success in developing technology assets across the hydrogen value chain," Brian Mandell, Phillips 66 Executive Vice President, Marketing and Commercial.

Phillips 66 was advised by CMS. H2 Energy was advised by Bar & Karrer.

CVC Capital Partners-backed Stock Spirits, a British alcoholic beverage business, agreed to acquire Polmos Bielsko-Biała, a vodka maker. Financial terms were not disclosed.

"Beginning our joint journey with Stock Spirits, one of the leaders in the alcohol sector in the CEE region, we announced, inter alia, development of the organization in Poland and expansion of the offer of our products and services. The planned investment in Polmos Bielsko-Biała fits perfectly with the strategy of building the value of the group adopted by us," Krzysztof Krawczyk, CVC Capital Partner.

Stock Spirits is advised by Greenberg Traurig.

Qonto, a financial solutions provider, agreed to acquire Penta, a fintech services provider. Financial services were not disclosed.

"Lukas Zörner and his co-founders have written a real fintech success story. With the combination of increasing customer numbers and rising revenues, we have gained even more substance in the past 18 months. We are very excited that we now have the chance to actively shape digital banking for business customers in Europe as a team with Qonto," Markus Pertlwieser, Penta CEO.

Qonto is advised by Hengeler Mueller.

 

World Fund, a venture capital firm, led a $130m funding round in IQM, a European quantum computing company, with participation from Bayern Kapital, OurCrowd, Tofino, Varma, Maki.vc, Matadero QED, MIG Fonds, OpenOcean, Salvia GmbH, Santo Venture Capital GmbH, Tencent, Tesi, and Vsquared.

The company intends to use the funds to expand its international business and accelerate product, with a focus on developing quantum processors to help tackle the climate crisis development.

Clover Imaging Group, a company which provides environmentally sustainable solutions focused on the recovery, returns management, remanufacturing, and remarketing of technology assets and small consumer goods, completed the acquisition of Phoenix Direct, an integrated direct-to-consumer business solution that provides 3PL fulfillment, creative, marketing services, ecommerce services and customer service for brands and retailers. Financial terms were not disclosed.

"We warmly welcome the Phoenix Direct team to Clover. While we remain bullish and focused on our core imaging business in the Americas, the completion of this acquisition represents a step forward in our diversification strategy and the future of the Clover Imaging platform. We look forward to leveraging the expertise of both teams to enhance our current capabilities and accelerate growth," George Milton, Clover Imaging Group CEO.

Sienna IM to acquire a minority interest in Eight Advisory. (FS)

Sienna IM, an investment company, agreed to acquire a minority interest in Eight Advisory, an independent financial and operations consulting firm. Financial terms were not disclosed.

“Eight Advisory’s new shareholder Sienna will allow us to accelerate our international expansion by providing us with significant financial resources while maintaining our independence,” Pascal Raidron, Eight Advisory President.

 

Combining the two companies will bring together the UK, French and Chinese governments as well as Indian billionaire Sunil Bharti Mittal as common shareholders in one of the world’s biggest satellite operators, FT reported.