AMERICAS
Private equity firms Carlyle Group and Hellman & Friedman completed the $1bn investment in Vantage Group, an insurance company.
“2020 has reinforced the riskier nature of our world and the re/insurance markets. Risk changes constantly, and we in the insurance industry must demonstrate our ability to evolve with it, to offer clients coverage that meets their current challenges. To do that, we brought together some of the brightest, most experienced minds in re/insurance to approach the new world of risk in a fresh way -- with curiosity at its core and creativity as its engine. At Vantage, we will address the risks others avoid with smart technology and robust analytics," Greg Hendrick, Vantage CEO.
Carlyle Group was advised by Simpson Thacher & Bartlett. Hellman & Friedman was advised by Finsbury. Vantage Group was advised by JP Morgan and Vested.
Aurora, a self-driving car company, agreed to acquire Advanced Technologies Group, a self-driving unit of Uber Technologies. Financial terms were not disclosed.
"By adding the people and technology of Uber's Advanced Technologies Group to the incredible group we've already assembled at Aurora, we're shifting the landscape of the automated vehicle space. With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver. Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive," Chris Urmson, Aurora Co-Founder and CEO.
Aurora is advised by Allen & Company and Wilson Sonsini Goodrich & Rosati. Uber is advised by Goldman Sachs and Wachtell Lipton Rosen & Katz.
Aterian Investment Partners-backed Vander-Bend, a provider of manufacturing solutions, agreed to acquire Swiss Precision Machining, a manufacturer of components, assembles and accessories utilized in the robotic surgery and other technology end markets. Financial terms were not disclosed.
"SPM has a longstanding history of providing exceptional products to market leading customers, and its expertise in specialized instrument manufacturing will complement Vander-bend's existing prototyping to full scale med-tech and high-tech focused production capabilities. Through the acquisition of SPM, Vander-Bend will also expand its medical commercial relationships, allowing us to better serve our broader industry and continue our growth trajectory," Greg Biggs, Vander-Bend Chief Executive Officer.
Aterian Investment is advised by Goldman Sachs, Ventoux Securities and Weil Gotshal and Manges. Vander-Bend is advised by Robert W Baird.
Bain Capital-backed Fedrigoni, a global producer of special papers, high value-added products for packaging and graphics, and self-adhesive labels, completed the acquisition of Industrial Papelera Venus, a Mexican producer and distributor of self-adhesive materials. Financial terms were not disclosed.
“This move is in line with our growth strategy in the increasingly promising self-adhesive labels sector, which also includes the recent acquisition of Ritrama, and is consistent with our plan to diversify our market penetration geographically. The new entry will allow us to increase our production capacity, broaden our offer, create favourable procurement synergies, reinforce our presence in Central and South America and expand our market in the southern USA, areas we are very interested in,” Marco Nespolo, Fedrigoni Group CEO.
Fedrigoni was advised by KPMG, Gonzalez Calvillo, Latham & Watkins and Pirola Pennuto Zei & Associati.
Fifth Third Bancorp, a diversified financial services company, agreed to acquire Hammond Hanlon Camp, a strategic advisory and investment banking firm. Financial terms were not disclosed.
"As Fifth Third continues to seek opportunities to build upon the strength of its healthcare team, the addition of H2C further deepens the value we provide to the industry. The healthcare industry is complex and dynamic. Given its concentrated expertise and its client-focused culture, we believe H2C is a great strategic fit for Fifth Third and its existing healthcare team," Kevin Lavender, Fifth Third Bancorp Executive Vice President and Head of Commercial Banking.
Hammond Hanlon is advised by Houlihan Lokey and Winston & Strawn. Fifth Third Bancorp is advised by Alston & Bird.
Saothair Capital Partners, a private equity firm focused exclusively on investing in lower-middle market manufacturing and industrial companies, and Ocean Avenue Capital Partners, a private equity firm, completed the acquisition of Arandell, a web catalog production facility. Financial terms were not disclosed.
"We see tremendous opportunity to take what is already a high-quality printer and, by bringing the necessary financial resources, create an even more enduringly competitive operation," Richard Lozyniak, Saothair Co-founder and Operating Partner.
Saothair was advised by Jenner & Block. Debt financiang was provided by Great Rock Capital Partners and Siena Lending Group.
Adobe, a digital services provider, completed the acquisition of Workfront, a work management platform for marketers, for $1.5bn.
“Together, Adobe and Workfront will give leading brands access to a single system to support planning, collaboration and governance, to unlock organizational productivity. Adobe is leading the charge in digital transformation, and with Workfront, we’re further accelerating this vision,” Anil Chakravarthy, Adobe Digital Experience Business and Worldwide Field Operations Executive Vice President and General Manager.
Adobe was advised by Wachtell Lipton Rosen & Katz. Workfront was advised by Goodwin Procter.
Veritas Capital-backed Peraton, a provider of space, intelligence, cyber, defence, homeland security, and communications capabilities, agreed to acquire the federal IT and mission support services business of Northrop Grumman for $3.4bn. The transaction is expected to close in the first half of 2021. It is subject to customary closing conditions and regulatory approvals.
“The federal IT and mission support services business of Northrop Grumman has an exceptional track record of delivering innovative technology that addresses the critical needs of its government agency customers. We believe that with our focus, vision and resources, we can create a scaled, technology-enabled services platform that is well-positioned for long-term growth and able to deliver unparalleled support to a broad range of critical government missions,” Ramzi Musallam, Veritas Chief Executive Officer and Managing Partner.
Veritas Capital is advised by Sard Verbinnen & Co.
Juniper Networks, which develops and markets networking, agreed to acquire Apstra, an intent-based networking and automated closed loop assurance provider. Financial terms were not disclosed.
“Adding Apstra’s intent-based networking and automated closed loop assurance advances our vision to transform data center operations. With the combination of Juniper and Apstra, customers get the best infrastructure and fabric management with integrated design, deployment and automated root cause identification and remediation to satisfy any Data Center environment. This is networking for the modern cloud era,” Rami Rahim, Juniper Networks CEO.
Juniper Networks is advised by Sullivan & Cromwell.
The Trump administration won't extend the deadline for ByteDance to sell or spin out video-sharing platform TikTok's business in the US, Bloomberg reported.
The US Treasury Department told TikTok and ByteDance that they won't face a fine or other punishment for missing the deadline because the sides are still negotiating. The deal, which has been in the works for months, is close to being finished, and the administration is eager to complete it before President-elect Joe Biden takes office on January 20, 2021.
Shareholders of Zoox, an American autonomous vehicle company, filed a lawsuit asking the Delaware Chancery Court to determine the fair value of their shares in connection with a $1.2bn acquisition by Amazon.
Investors have followed proper procedure under Delaware law to have the court appraise the fair value of 1k shares in Zoox.
Ingersoll Rand, a global provider of mission-critical flow creation and industrial solutions, agreed to acquire Tuthill Vacuum and Blower Systems, a manufacturer of positive displacement blowers, mechanical vacuum pumps, vacuum boosters and engineered systems, from Tuthill, a manufacturer of pumps, meters, vacuum systems, and blowers, for $184m.
"This transaction delivers on our commitment to significantly accelerate our growth plan and demonstrates our ability to seek out premium and iconic industrial brands with strong complementary technology and commercial growth opportunities," Vicente Reynal, Ingersoll Rand CEO.
Middleby, a provider of foodservice equipment, agreed to acquire Wild Goose Filling, a provider of specialty liquid filling systems and highly-engineered food and beverage packaging equipment. Financial terms were not disclosed.
"Wild Goose Filling is the domestic market leader in craft beverage filling and canning. The company has industry-leading technology serving the fast-growing craft beverage market which includes beer, seltzer, cold brew and kombucha, and is also well-positioned in other attractive niche markets. Middleby can now offer a complete equipment solution to our craft beverage customers when paired with existing brands Ss Brewtech and Deutsche," Tim FitzGerald, Middleby CEO.
SoFi considers deal to go public.
Social Finance, an online lending startup, has held discussions with blank-check acquisition companies about a deal that would allow it to debut in the stock market, Reuters reported.
The discussions show that going public is solidly in the sights of Anthony Noto, SoFi CEO. The San Francisco-based company has held talks with a number of SPACs.
SoFi was valued at $4.8bn in a private fundraising round last year and has raised over $3bn in capital. Its financial backers include private equity firm Silver Lake and Peter Thiel, a billionaire investor.
Jeremy Grantham looses $200m revenue after SPAC swoop on battery maker.
Jeremy Grantham, GMO co-founder, and private investor, has “accidentally” made about $200m from private funding in QuantumScape, a battery-maker, after it merged with a listed blank-cheque firm, FT reported.
The mixture with Kensington Capital Acquisition valued QuantumScape at $3.3bn. However, the automobile’s inventory value greater than doubled after the deal was introduced in September.
“That is in contrast to the rest in my profession. This was accidentally the only largest funding I’ve ever made. It will get across the thought of itemizing necessities, so it’s not a useful gizmo for lots of profitable firms. However, I believe it’s a reprehensible instrument, and really very speculative by definition," Jeremy Grantham.
Universal Music to acquire Bob Dylan's entire song catalog.
Vivendi-backed Universal Music Group, a provider of recorded music, music publishing, and merchandising services, is acquiring Bob Dylan’s entire song catalog, a collection that spans six decades and includes many of the most iconic tracks in music history, Bloomberg reported.
Financial terms were not disclosed, though Dylan’s songs are worth more than $200m. Bob Dylan isn’t selling the recordings, which are a separate asset.
The deal strengthens Universal Music Group, as it prepares for an IPO next year. With its recent deals for Taylor Swift and Dylan, Universal has added works from two of the most successful songwriters in music history.
Revolution Acceleration Acquisition announces pricing of $250m IPO.
Revolution Acceleration Acquisition, a blank check company, priced its IPO of 25m units at $10 per unit. The units will be listed on the Nasdaq Capital Market beginning December 8, 2020.
Each unit consists of one share of Class A common stock and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.5 per share.
The company intends to focus on businesses operating in the financial services, healthcare, technology and consumer and media sectors in US.
Credit Suisse is acting as the sole book-running manager for the offering.
General Atlantic-backed Wish considers raising $1.1bn in IPO. (FS)
General Atlantic-backed Wish, an e-commerce firm, expects to raise up to $1.1bn in its IPO, Reuters reported.
The San Francisco-based bargain shopping app plans to sell 46m shares priced between $22 and $24 apiece. Its market capitalization at the top end of the range would be around $14bn.
Goldman Sachs, JP Morgan, and Bank of America Merrill Lynch are the lead underwriters for the listing.
Allen & Overy appoints US private equity partner. (People)
Allen & Overy has appointed Nick Marchica as a partner in the firm's US Private Equity group based in New York. Nick Marchica joins from Baker McKenzie, where he served as the Chair of the Transactional Practice Group in New York.
“Allen & Overy has been expanding its US PE practice since 2017, and the addition of Nick to our talented team augments our offerings across the full spectrum of strategic M&A. One of our key strategic priorities is to expand significantly our presence here in the US across all of our practices, enabling us to continue to serve our elite roster of clients on their most important initiatives. Nick’s arrival is another step toward that goal, and we expect to maintain that momentum and extend our reach," Tim House, A&O US Senior Partner.
EMEA
The UK Competition and Markets Authority has started a Phase 1 investigation into Bellis' planned acquisition of UK grocer Asda Group to see if it will lessen competition within the UK for goods or services.
The regulator started a formal investigation following the European Commission's decision to refer the case to the UK. It has until February 18, 2021 to announce a decision.
TDR Capital is advised by Bank of America Merrill Lynch, Barclays, Morgan Stanley, Kirkland & Ellis, Latham & Watkins, Brunswick Group and Tulchan Communications. Zuber Issa is advised by Skadden Arps Slate Meagher & Flom. Walmart is advised by Rothschild & Co, Slaughter & May and Finsbury Glover Hering.
McCarthy & Stone, a retirement homebuilder, and Lone Star, a private equity firm, received merger control clearance from the European Commission, and shareholders' approval for the $864m acquisition.
"It is against this backdrop that the board believes the 115p cash offer from Lone Star Real Estate Fund represents fair value reflecting both the future opportunities and risks facing the business," John Tonkiss, McCarthy & Stone CEO.
McCarthy & Stone is advised by Deutsche Bank, Peel Hunt, Rothschild & Co, Allen & Overy and Powerscourt. Lone Star is advised by Knight Frank, Goldman Sachs, Moelis & Co, Weil Gotshal and Manges and Headland Consultancy.
Nova Resources, an investment company, announced that the acquisition of KAZ Minerals, a copper company, is to be implemented by way of a recommended takeover offer in order to increase the certainty of execution in the interests of the company shareholders.
The acquisition remains unchanged from those outlined in the original announcement. KAZ Minerals shareholders will be entitled to receive £6.4 ($8.5) in cash for each KAZ Minerals share, representing a premium of c. 24.9% to the closing price of £5.12 ($6.8) per share on October 2, 2020.
Kaz is advised by Citigroup, UBS, Linklaters and Brunswick Group. Nova is advised by Clifford Chance and VTB Capital. VTB Capital is advised by Macfarlanes, Walkers and Latham & Watkins.
EU antitrust regulators approved DIC’s bid for German chemicals group BASF’s pigments unit after the Japanese printing ink maker pledged to sell a US facility to address competition concerns, Reuters reported.
The European Commission said DIC agreed to sell its main manufacturing facility for pigments in South Carolina operated by its subsidiary Sun Chemical to allay concerns that the deal would reduce competition for the supply of certain pigments.
DIC is advised by Ernst & Young, Morgan Stanley and White & Case. BASF is advised by Hengeler Mueller.
EQT Partners agreed to acquire a 29.6% stake in Beijer Ref, a wholesaler of cooling technology and air conditioning, from Carrier, a global provider of building and cold chain solutions, for $1.1bn. The transaction is expected to close by the end of December 2020, subject to the receipt of a required regulatory approval.
"The sale of our stake in Beijer follows our deliberate and consistent approach to capital allocation and portfolio management. We have determined that we can create more value for our shareowners by deploying the net cash proceeds toward our growth initiatives and debt reduction activities than by maintaining a passive interest. We look forward to continuing our longstanding distribution relationship with Beijer," Dave Gitlin, Carrier President & CEO.
EQT is advised by KPMG, The Footprint Firm and White & Case. Carrier is advised by Citigroup.
Insight Partners-led consortium agreed to invest c.£100m ($133m) in Exclaimer, a provider of world-class email signature management solutions. Farview Equity Partners and existing investor Livingbridge, a private equity firm, are also participating.
"This has been an extraordinary year for everyone, from the healthcare challenges created by the pandemic to how businesses have adjusted to the new world of work. Despite all these macro-level events Exclaimer has continued to grow exponentially through the outstanding contribution by our employees and the continued loyalty of our customers and partners," Heath Davies, Exclaimer CEO.
Exclaimer is advised by Arma Partners. Livingbridge is advised by Travers Smith.
Sheikh Hamad Bin Khalifa Al Nahyan, a ruling royal family in Abu Dhabi, agreed to acquire a 50% stake in Beitar Jerusalem Football Club for $92m.
"I am thrilled to be a partner in such a glorious club that I have heard so much of and in such a great city, the capital of Israel and one of the holiest cities in the world," Sheikh Hamad.
Beitar is advised by NY Koen Group.
Electricite de France-backed Framatome, a French blue-chip engineer, agreed to acquire a civil nuclear instrumentation & control business of Rolls-Royce, a manufacturer of aero, marine, and industrial gas turbines for civil and military aircraft. Financial terms were not disclosed.
“This transaction marks a further simplification of our business and contributes towards our target to generate over £2bn ($2.7bn) from disposals, as announced on 27 August 2020. We also believe it represents the best outcome for this part of our civil nuclear operations and its people,” Warren East, Rolls-Royce Chief Executive Officer.
Italy’s plan to create a European shipbuilding champion through Fincantieri’s bid for France’s Chantiers de l’Atlantique will be decided by the end of December, Reuters reported.
Italy hopes the tie-up will help state-controlled Fincantieri, an Italian shipbuilding company, better compete with rivals from Asia and elsewhere.
“The agreement with the French expires on December 31 and we expect the EU Commission to take a decision by then. If not we’ll have to decide whether Chantiers is still a good deal. No further concessions could be offered to regulators given tough market conditions," Giampiero Massolo, Fincantieri Chairman.
Balder, a Swedish real estate firm, completed the acquisition of a 5% stake in Entra, a Norwegian real estate company. Financial terms were not disclosed.
“We prefer Entra to remain a listed company on the Oslo Bourse. We see Entra as a long-term investment and do not plan to bid for the whole company,” Erik Selin, Balder Chief Executive.
Private Client Resources, a provider of data-utility for institutions, advisors, family offices, pensions, foundations, and technology providers, completed the acquisition of Check6, a data aggregation firm. Financial terms were not disclosed.
“This acquisition is a natural and important step in fulfilling our vision of a safe and scalable global investment data utility. Through our partnerships with major wealth tech providers and other possible acquisitions, we are looking at opportunities in Asia and other regions important to our global clients,” Bob Miller, PCR CEO.
BMS Iberia, an independent specialist reinsurance broker, completed the acquisition of Montymarq, a Spanish specialist insurance broker. Financial terms were not disclosed.
"BMS Iberia is growing strategically: we have identified significant opportunities in several key specialty areas and we are well-positioned to be one of the top specialist brokers in Spain. Montymarq's expertise and market-leading talent in the professional, personal and liabilities risk space meaningfully complement our current growing practice. I look forward to working with Juan and the team and taking our regional business to the next stage of growth," Fernando Claro, BMS Iberia CEO.
German soccer league plans partial rights sale in February. (FS)
Bundesliga, a German soccer league, plans to start an auction for a stake in its overseas broadcasting rights in February, Reuters reported.
The German Football League, which organizes the top two leagues, has sent out information packages about a 10-25% stake in a newly created company managing the broadcasting rights outside Germany. The sale could value the overseas broadcasting rights at more than $1.2bn.
The deal has registered expressions of interest from about 30 private equity firms including Bain, BC Partners, Blackstone, Bridgepoint, Carlyle, Cinven, CVC, KKR and Permira.
Bundesliga is advised by Nomura.
Entrée Capital raises $125m for debut later-stage fundraise. (FS)
Entrée Capital, an Israel-based early-stage investor, has hauled in $125m for the final close of its first Opportunity Fund targeting later-stage investments.
Entrée Capital's target sectors are fintech, software-as-a-service and digital health. The funds will be used to back Series B and C rounds for businesses led by Israeli founders across that country, as well as Europe and the US.
Douglas plans 2021 debt restructuring.
Douglas, a German perfume retailer, is preparing for a financial restructuring in 2021 as the Covid-19 pandemic hits its business and its debt nears maturity, Reuters reported.
The company will start talks with its creditors on options including a refinancing, a deal to amend and extend maturities or a debt-for-equity swap. In total, the company’s net debt stood at $2.5bn as of June 2020.
CVC, a private equity firm and company’s owner, is willing to inject additional equity, if needed, to safeguard its investment.
Douglas is advised by Lazard.
Deutsche Bank and Commerzbank funded Wirecard’s India deal.
Deutsche Bank and Commerzbank provided the bulk of the funding for Wirecard’s acquisition of a pair of Indian companies referred to in the fraud allegations against the defunct Germany payments group, FT reported.
In 2015 Wirecard turned to the German banks when it agreed to pay up to €340m ($412m) to a Mauritius-based fund for two India-based sister companies, Hermes i Tickets and GI Technology. The seller, dubbed Emerging Markets Investment Funds 1A, had acquired the targets just weeks earlier from their original owners for less than €40m ($48m).
LSEG hires Balbir Bakshi as CRO. (People)
The London Stock Exchange has hired Balbir Bakshi, a former Deutsche Bank head of non-financial risk management, Financial News reported.
“The Group will benefit greatly from his deep commercial understanding and knowledge of risk management. He will play a key role as the Group continues to develop and grow following the Refinitiv transaction," David Schwimmer, LSEG CEO.
Bakshi will assume the role in January 2021 succeeding Diane Côté who the LSEG has confirmed will retire from the group following the successful completion of its blockbuster Refinitiv transaction.
APAC
Kina Securities, an Australia-based financial services provider, agreed to acquire Westpac Pacific, which runs commercial banks in both Fiji and PNG, from Westpac, an Australian bank and financial services provider, for $312m. Completion of the transaction is subject to various regulatory approvals in Fiji and PNG and Kina shareholder approval. Completion is expected to occur in the Second Half of FY2021.
“Choosing the right purchaser for our businesses is important to us, our people and the communities we serve. We are pleased our Pacific businesses are being acquired by Kina Bank. Kina is a strong brand in the region and is well positioned with deep local knowledge to continue to help our consumer and business customers succeed," Jason Yetton, Westpac CEO.
Kina is advised by Morgans Corporate and Dentons.
Relx Technology hires Citi for an IPO. (FS)
Relx Technology, a Chinese e-cigarette maker, has picked Citigroup for its planned US IPO, Bloomberg reported.
Sequoia Capital-backed company is seeking to raise as much as $1bn in a share sale next year. Relx Technology may add more banks at a later stage. The firm, which makes e-cigarette devices and liquids, also received investment from IDG Capital and Source Code Capital.
Blackstone hires investment banks for $678m Aadhar Housing IPO.
Blackstone, a private equity firm, plans to take Aadhar Housing Finance, a company that offers housing loan services, public by June and has hired investment banks to start work on a $678m share sale, DealStreet Asia reported.
Blackstone acquired Aadhar from Dewan Housing Finance in 2019 for close to $406m. Aadhar Housing focuses on lower- and middle-income segments such as salaried, self-employed and agricultural income-based population.
Blackstone has hired Citigroup and ICICI Securities.
Indian government sells Axis Bank shares worth $81m.
The central government has sold shares of Axis Bank worth around $81m in the last two weeks held through the Specified Undertaking of the Unit Trust of India, DealStreet Asia reported.
SUUTI took advantage of the buoyancy in the equity market and sold shares of Axis Bank between December 2 and 4, fetching the government $50m. Between November 26 and 27, it sold shares for $30m. SUUTI's shareholding in the lender is down to 3.92% following these trades.
Strides Pharma promoters consider selling a 30% stake.
Strides Pharma Science promoters are looking to exit their 30% stake in Strides. Strides’ promoters, Arun Kumar, a serial pharma entrepreneur, and his partner KR Ravishankar and others own 29.69% in the company. At current market price, this stake is worth almost $298m, DealStreet Asia reported.
Investment bank Moelis & Co has been appointed to seek interest from prospective buyers for the promoter stake.
17EdTech announces pricing of $288m IPO.
17 Education & Technology, an education technology company in China, announced the pricing of its $288m IPO of 27m American depositary shares.
Two ADSs representing five class A ordinary shares of the company, at a public offering price of $10.5 per ADS. The ADSs are expected to begin trading on the Nasdaq Global Select Market on December 4, 2020.
Morgan Stanley, Goldman Sachs and Bank of America Merrill Lynch are acting as joint book-runners for the offering. China Renaissance is acting as a co-bookrunner. Tiger Brokers is acting as a co-manager for the offering. Underwriters are advised by Kirkland & Ellis.
Citigroup appoints Antonios as first female head of MENA business. (People)
Citigroup appointed Elissar Farah Antonios as the first woman to run its Middle East & North Africa operations, Financial News reported.
Antonios will continue to report to Atiq Rehman, who runs the bank’s Europe, Middle East & Africa emerging markets business, and will join the EMEA operating committee. She has been in charge of Citigroup’s operations in the United Arab Emirates, Levant and Iraq since 2019.
The emerging markets business contributes about 30% of Citigroup’s net income in EMEA. The bank plans to deepen its corporate banking presence in developing countries from Russia to South Africa.
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