AMERICAS
Forest Road Acquisition, a SPAC, Beachbody Company, a provider of health and fitness, and Myx Fitness, an at-home connected fitness platform, expect to close their proposed three-way business combination on June 25, 2021.
The companies assume that Forest Road will receive stockholder approval at the special meeting of stockholders creating the leading subscription health and wellness company for the mass market.
Beachbody is advised by Bank of America, Cantor Fitzgerald, Credit Suisse, The Raine Group, Cozen O'Connor, Latham & Watkins and ICR. Financial advisors are advised by Paul Weiss Rifkind Wharton & Garrison. Myx Fitness is advised by Greenberg Traurig. Forest Road Acquisition is advised by Greenhill & Co, Guggenheim Partners, Robert W Baird, Ellenoff Grossman & Schole, Gibson Dunn & Crutcher and Kirkland & Ellis. Financial advisors are advised by Sullivan & Cromwell.
The Federal Trade Commission, whose new chairwoman has been critical of Amazon.com, will review the company’s planned purchase of MGM, Reuters reported.
Amazon said in May that it would buy the US movie studio, home to the James Bond franchise, in an $8.45bn deal that would give it a huge library of films and TV shows to compete with streaming rivals led by Netflix and Disney+.
MGM is advised by LionTree, Morgan Stanley, Cleary Gottlieb Steen & Hamilton, Latham & Watkins, Paul, Weiss, Rifkind, Wharton & Garrison. LionTree, Morgan Stanley are advised by Paul Hastings. Amazon is advised by Cravath, Swaine & Moore.
Vivendi shareholders approved the French media conglomerate’s plan to spin off its Universal Music Group unit, bringing the world’s largest music company a step closer to becoming its own public entity, WSJ reported.
With more than 99% approval, shareholders backed the plan to distribute 60% of Universal’s shares to existing Vivendi shareholders and to list the company on the Euronext Amsterdam stock exchange. Vivendi executives said the listing would take place on September 21.
Universal, home to stars including Taylor Swift, Billie Eilish, Queen and the Beatles, commands some 40% market share in the domestic recorded music business - 30% globally - and operates the world’s second-largest music publishing company, which last year bought Bob Dylan’s entire songwriting catalog.
UMG is advised by Freshfields Bruckhaus Deringer. Pershing Square is advised by Perella Weinberg Partners, Cadwalader Wickersham & Taft, Sullivan & Cromwell and Camarco. Vivendi is advised by Cabinet Bompoint and Cleary Gottlieb Steen & Hamilton.
Talkspace, a digital and virtual behavioral healthcare company, went public via a merger with Hudson Executive Investment, a SPAC, in a $1.4bn deal. Additionally, the deal was funded via a $300m pipe investment from Federated Hermes Kaufmann Funds, Jennison Associates, Woodline Partners and Deerfield.
"Talkspace's technology-enabled operating model combines wide access to high-quality mental health resources with a rigorous, data-driven approach to clinical treatment. We are excited to partner with Oren and his world-class team at Talkspace to democratize access to behavioral health," Douglas L. Braunstein, Hudson Executive Capital Founder and Managing Partner.
Talkspace was advised by JP Morgan, Jefferies & Company, Latham & Watkins, ICR and Westwicke. Hudson Executive Investment was advised by Citigroup, Milbank and Gladstone Place Partners.
Embark Trucks to go public via a SPAC merger with Northern Genesis Acquisition II in a $5.16bn deal. (FS)
Embark Trucks, a manufacturer of self-driving trucks, agreed to go public via a SPAC merger with Northern Genesis Acquisition II in a $5.16bn deal. Investors in PIPE include CPP Investments, Knight-Swift Transportation, Mubadala Capital, Sequoia Capital, Tiger Global Management and Northern Genesis.
“The Northern Genesis team is enthused to partner with Embark as it continues to execute on its focused mission, a mission that began more than five years ago. Our respective teams share a conviction that success today demands alignment with the ongoing secular shifts towards sustainability and social responsibility; Embark’s commitment to autonomous trucking delivers that alignment through enhanced fuel efficiency, improved driver working conditions, and safer roads for everyone," Ian Robertson, Northern Genesis Acquisition II Director and CEO.
Embark Trucks is advised by Citigroup and Latham & Watkins. Northern Genesis Acquisition II is advised by BMO Capital Markets, Citigroup, JP Morgan and Husch Blackwell. Financial advisors are advised by Winston & Strawn.
Teleperformance completed the acquisition of Health Advocate business of Intrado for $690m.
Teleperformance, an omnichannel company headquartered in France, completed the acquisition of Health Advocate business of Intrado, a provider of technology-enabled services, for $690m.
"Teleperformance’s focus on personalized customer experience and innovation aligns closely with Health Advocate’s nearly identical priorities. We are excited for the Health Advocate team to be able to continue to expand the business within the world-class Teleperformance organization," John Shlonsky, Intrado President and CEO.
Teleperformance was advised by Rothschild & Co, Linklaters, Paul Hastings and Image Sept. Intrado was advised by Goldman Sachs, TripleTree and Wachtell Lipton Rosen & Katz.
Blackstone, Cellex Cell Professionals and Intellia Therapeutics to create the joint venture in a $250m deal. (FS)
Blackstone, Cellex Cell Professionals, a biotechnology company, and Intellia Therapeutics, a developer of biopharmaceuticals, agreed to create the joint venture in a $250m deal. The new company will combine GEMoaB’s clinical-stage universal CAR-T platforms with Intellia’s differentiated allogeneic cell platform and CRISPR cell engineering. The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions, including regulatory clearances.
“This launch represents the first of many steps to addressing the various limitations that currently exist in the cell therapy space, and I am both humbled and excited to be leading the creation of this company with a team of extremely talented individuals. Bringing together GEMoaB’s universal CAR-T platform with Intellia’s differentiated allogeneic T cell platform and CRISPR-based cell engineering provides a unique opportunity to move cell therapy technology to new heights. Our focus is on providing significantly safer and more efficacious treatments to patients who are suffering from hard-to-treat cancers and autoimmune diseases," Andrew Schiermeier, Intellia Executive Vice President and COO.
Intellia Therapeutics is advised by Goldman Sachs, Goodwin Procter and Hogan Lovells. Cellex Cell Professionals is advised by Morgan Lewis & Bockius and Noerr. Blackstone Group is advised by Freshfields Bruckhaus Deringer and Ropes & Gray.
Clearlake Capital and Siris-backed Constant Contact, a marketing company, agreed to acquire SharpSpring, a provider of cloud-based marketing solutions, for c.$240m.
"Constant Contact and SharpSpring share a mission to help small businesses succeed, and this acquisition represents a powerful opportunity to combine our best-in-class email and eCommerce offerings with SharpSpring's strong suite of revenue growth and marketing automation tools. Today's Constant Contact retains the customer-first culture that defined our heritage, and I am excited to expand upon that with a commitment to innovation that will accelerate our growth and build upon the passion and agility that has made our brand a leader in digital marketing for so many years," Frank Vella, Constant Contact CEO.
Clearlake Capital is advised by Lambert & Co. Constant Contact is advised by Lazard and Sidley Austin. Siris Capital Group is advised by Abernathy MacGregor Group. Sharpspring is advised by JMP Securities, Godfrey & Kahn and Gateway Investor Relations.
The Vistria Group-backed Edmentum, a global pioneer in education technology, agreed to acquire Apex Learning, a provider of blended and virtual learning solutions, from Education Growth Partners, a private equity firm. Financial terms were not disclosed.
"As the school year comes to an end and districts evolve into new models of teaching for the fall, so too must Edmentum continue to grow to meet those needs. Pairing Apex's proven, high-quality secondary learning programs with Edmentum's full suite of high-quality, online learning programs creates a rich array of offerings designed specifically for the next generation of learners. Together, in partnership with schools and districts globally, we will move education forward," Jamie Candee, Edmentum CEO.
Apex Learning is advised by William Blair & Co and Kramer Levin Naftalis & Frankel. The Vistria Group is advised by Res Publica Group. Edmentum is advised by Alvarez & Marsal, Winston & Strawn and Cuesta Partners.
Madison Industries completed the acquisition of Nortek Air Management from Melrose Industries for $3.6bn. (FS)
Madison Industries, a provider of metal products and structures, completed the acquisition of Nortek Air Management, a HVAC solutions provider, from Melrose Industries, a British manufacturing company that specialises in buying and improving underperforming businesses, for $3.6bn.
"We bought Nortek, an underperforming group, which we felt had outstanding potential in 2016 for $2.8bn. We have seen approximately $1bn of cash inflows from the Nortek group during our ownership, effectively giving us an in-price of $1.8bn. The businesses being sold today for $3.6bn represent 73%, by revenue, of the Nortek group and the returns are excellent. Our Ergotron and Nortek Control businesses which also form part of the Nortek group remain under our ownership and will be realised at an appropriate time," Justin Dowley, Melrose Chairman.
Madison Industries was advised by Paul Hastings. Melrose Industries was advised by Investec, Citigroup, Robert W Baird, Simpson Thacher & Bartlett and Montfort Communications.
Silver Lake Partners, a private equity firm, agreed to invest $1bn in Splunk, a developer of web-based application software.
“Silver Lake has a strong reputation and track record of investing in innovative technology companies, and with their support, we are accelerating toward our goals as we deliver the most scalable and powerful data platform in the cloud," Doug Merritt, Splunk President and CEO.
Splunk is advised by Centerview Partners, Goldman Sachs, Wachtell Lipton Rosen & Katz and Wilson Sonsini Goodrich & Rosati. Silver Lake is advised by Simpson Thacher & Bartlett.
Canopy Growth completed the acquisition of The Supreme Cannabis for $345m.
Canopy Growth, a cannabis company based in Smiths Falls, Ontario, completed the acquisition of The Supreme Cannabis, a global diversified portfolio of distinct cannabis companies, products and brands, for $345m.
"As we continue to expand our leading brand portfolio, we're excited to reach more consumers through Supreme's premium brands and high-quality products, further solidifying Canopy's market leadership. Supreme's deep commitment to superior genetics, top-tier cultivation and strict quality control, paired with Canopy's leading consumer insights, advanced R&D and innovation capabilities, is expected to create a powerful combination that aligns with our strategic focus to generate growth with premium quality products across key categories," David Klein, Canopy CEO.
Canopy Growth was advised by Cassels Brock & Blackwell. Supreme was advised by BMO Capital Markets, Hyperion Capital, Kingsdale Advisors and Borden Ladner Gervais.
National Veterinary Associates, a provider of healthcare products and services and owner of more than 1000 veterinary hospitals, completed its acquisition of SAGE Veterinary Centers, a veterinary group, from Chicago Pacific Founders, a strategic healthcare private equity firm. Financial terms were not disclosed.
"This combination marks an important step towards our vision to build the leading global specialty and emergency veterinary hospital group affording veterinarians the opportunity to collaborate and advance medical capability. Our shared values of compassion, teamwork, and innovation will prove essential as we expand our mission to provide best-in-class medicine to pets and their families," Greg Hartmann, NVA CEO.
SAGE Veterinary Centers was advised by Jefferies, Cravath Swaine & Moore and Katten Muchin Rosenman. National Veterinary Associates was advised by CrowCravathell & Moring and Skadden Arps Slate Meagher & Flom.
CVC Capital Partners, a private equity and investment advisory firm, agreed to acquire a majority stake in ExamWorks, a provider of independent medical examination, peer review, document management and other related services, from Leonard Green & Partners and GIC, two private equity firms. Financial terms were not disclosed.
"The ExamWorks team has built a leading enterprise from the ground up over the last 13 years; we are delighted to have the opportunity to back a team that was already well-known to us and to further build upon our partnership from an existing strong foundation," Christopher Baldwin, CVC Managing Partner.
CVC Capital Partners is advised by Goldman Sachs and White & Case. Examworks, GIC and LGP are advised by Bank of America, Truist Securities and Latham & Watkins.
Permira, a global investment firm, led a $157m Series D funding round in G2, a marketplace for B2B software and services. The round had participation from investors Accel, Emergence, IVP, HubSpot Ventures, Salesforce Ventures, Auren Hoffman and Thomas D. Lehrman.
"Software spending will top $4trn this year, and is growing quickly with the need for digital transformation. Customers expect reliable, trusted reviews for everything they shop for and this is increasingly true for B2B software purchases where complexity is at an all-time high and trust is low. This funding will be a catalyst for G2 to expand our community and products, grow our team, and continue investing in our vision to be the place for software online," Godard Abel, G2 CEO and Co-Founder.
G2 was advised by Mission North. Permira is advised by Moelis & Co, Fried Frank Harris Shriver & Jacobson and Sard Verbinnen & Co.
Farmers National Banc, a one-bank holding company, agreed to acquire Cortland Bancorp, a bank holding company operating through The Cortland Savings and Banking, for $124m.
“We have known and competed with Cortland for a long time and this acquisition will further solidify our market share in Trumbull and Mahoning Counties as well as expand our presence in the greater Cleveland area furthering our strategy of building local scale throughout Northeast Ohio," Kevin Helmick, Farmers National Banc President and CEO.
Cortland Bancorp is advised by Piper Sandler and Grady & Associates. Farmers National Banc is advised by Raymond James and Vorys Sater Seymour & Pease.
Brenntag, a chemical distribution company, agreed to acquire JM Swank, a full-line food ingredient distributor, from Platinum Equity, a private equity firm. Financial terms were not disclosed.
"JM Swank exemplifies how Platinum's approach can create value throughout the entire lifecycle of an investment. Following the carve-out from ConAgra, we executed a comprehensive transition and transformation program, providing the business with the tools needed to thrive as an independent company. We invested in JM Swank's national distribution infrastructure, optimized its operations, installed an outstanding management team, and built a scalable platform that is now well-positioned for a new period of growth in the years ahead," Adam Cooper, Platinum Equity Managing Director.
Platinum Equity is advised by Harris Williams & Co, Wells Fargo Securities and Morgan Lewis & Bockius.
Generation Investment Management led a $182m Series D funding round in AlayaCare. (FS)
Generation Investment Management, an investment management firm, led a $182m Series D funding round in AlayaCare, a global home and community care software company. Additional Investors include Inovia Capital, Caisse de dépôt et placement du Québec, and Investissement Québec.
“Our innovative technology helps run the back office more efficiently, allowing care staff to focus on outcomes instead of paperwork. Through the support and confidence of our investors, customers, partners and employees, we are excited to scale the AlayaCare platform and take the more sustainable home health-based model mainstream," Adrian Schauer, AlayaCare CEO & Founder.
AlayaCare was advised by TD Securities, Aust Legal and Stikeman Elliott.
Avania to acquire IMARC.
Avania, a unique CRO that advances the research of medical devices, novel technology, and combination products across a range of therapeutic specialties, agreed to acquire IMARC, a well-respected medical device CRO company. Financial terms were not disclosed.
“At Avania, we are focused on building a high-quality, full-service specialist medical technology CRO with global reach. We are delighted to welcome the IMARC team, with whom we have had the pleasure of collaborating for some time. They bring a great commitment to client service and outcomes and allow us to offer our clients additional depth and strength in the US, complementing our existing global operations perfectly," Sapna Hornyak, Avania CEO.
IMARC is advised by Covington Associates. Avania is advised by SCORR Marketing.
Semios, a precision-farming platform for permanent crops, completed its acquisition of Centricity, a food producer and distributor. Financial terms were not disclosed.
"Centricity and Semios offer complementary solutions to an overlapping customer base and the integration of our offerings into one dashboard will give growers access to valuable information they need all in one place, making their jobs easier," Michael Gilbert, Semios CEO.
Semios was advised by NATIONAL Public Relations.
Mercer Advisors, an investment adviser, agreed to acquire AFI Wealth Strategies, a wealth management firm. Financial terms were not disclosed.
"Andy built a successful practice but was maxed out from a capacity standpoint. For Andy, he was faced with the proposition of growing and investing in his business, or, alternatively, join one that had already built a fully institutionalized successful business his clients would appreciate. Key to that decision was Andy realizing merging his business was not the end of his career, quite the opposite," David Barton, Mercer Advisors Vice Chairman.
Mercer Advisors is advised by Chris Tofalli Public Relations.
Sony Music Entertainment, an American global music company, agreed to acquire a majority stake in Alamo Records, a music-related Services company. Financial terms were not disclosed.
"He has always been a visionary in an area of music that is now front and center of pop culture globally so we are delighted to add his experience and expertise to our creative strategy. We welcome him, his artists and his team to Sony Music and will provide all the partnership he needs to take the label to even greater heights," Rob Stringer, Sony Music Group Chairman.
Sony Music Entertainment is advised by Simpson Thacher & Bartlett.
Rotunda Capital Partners, a private equity firm, completed the acquisition of a majority stake in Refrigeration Sales, a distributor of heating, ventilation, air conditioning, and refrigeration equipment. Financial terms were not disclosed.
“RSC has all the attributes we look for in a distributor. It is an exceptionally-run family business, with a long history of providing customers with premier branded products, technical support and superior service. The Company is well-positioned for accelerated growth, and we look forward to supporting the team in the execution of our shared strategic vision," Corey Whisner, Rotunda Partner.
Gerard Lopez, a Luxembourg-based financier, agreed to invest in US based private equity firm King Street and Fortress Investment-backed Girondins de Bordeaux, a football club. Financial terms were not disclosed.
The club went into administration in April, when King Street refused to inject more cash and began working with Rothschild to find a buyer. It needed at least €100m ($119m) of fresh investment to avoid financial collapse.
Girondins de Bordeaux is advised by Rothschild.
Wellington Management, Goldman Sachs MBD and MUFG Innovation led a $360m funding round in Lendbuzz. (FS)
Wellington Management, an investment management company, Goldman Sachs and MUFG Innovation, a firm that offers services including commercial banking, trust banking, consumer finance, asset management, led a $360m funding round in Lendbuzz, a car financing platform that helps consumers with limited US credit history.
The funding injection would help Lendbuzz expand from the around 300 US car dealerships it currently works with. The company wants to lift that number to thousands. In the first half of this year, Lendbuzz more than tripled its loan origination volume.
Accel, an early and growth-stage venture capital firm, led a $100m Series A funding round in Lower, a provider of home refinancing, customer service, consumer lending, home purchase, and financial services.
“At the core, our belief is that homeownership is the greatest wealth creator for folks in America today. And we’re trying to enable that to lower barriers and make it easier," Dan Snyder, Lower CEO.
McKesson is exploring a sale of its European and UK businesses.
McKesson is in talks to sell its European operations, including a sprawling drug distribution business and Britain’s Lloyds Pharmacy chain, in a move that would reverse its $8.3bn purchase of Celesio in 2014.
The US company is negotiating a sale of its continental European unit to the billionaire Merckle family’s Phoenix Group, the largest German pharmaceutical wholesaler, the people said. It is also in discussions to offload its UK arm, which includes Lloyds Pharmacy and distributor AAH Pharmaceuticals, to a private equity firm.
A divestment would rank as one of the largest transactions in the European health-care industry this year. McKesson’s continental European and UK businesses could be valued at $3bn to $4bn. Irving, Texas-based McKesson is working with advisers on the potential divestments. While talks are advanced, they could still be delayed or fall apart, Bloomberg reported.
Krispy Kreme seeks to raise $640m in an IPO.
Krispy Kreme, a donut chain, is seeking to raise as much as $640m in an initial public offering. The company plans to list on the Nasdaq Global Select Market under the symbol DNUT.
The company said it plans to sell almost 27m shares for $21 to $24 apiece. At the top end of the range, Krispy Kreme would have a market value of $3.86bn.
The offering is being led by JP Morgan, Morgan Stanley, Bank of America and Citigroup.
Sprinklr raises $226m in a downsized US IPO.
Sprinklr, a customer experience software maker, raised $226m after pricing its US IPO below a marketed range and cutting the number of shares sold. Sprinklr’s shares are expected to begin trading on the New York Stock Exchange under the symbol CXM.
The company priced 16.6m shares at $16 each after marketing 19m shares for $18 to $20 apiece. At $16 a share, Sprinklr has a market value of about $4bn based on the outstanding shares listed in its filings with the US Securities and Exchange Commission, Bloomberg reported.
The offering is being led by Morgan Stanley, JP Morgan, Barclays and Wells Fargo.
Warby Parker files for a US IPO.
Warby Parker, a fashionable eyeware company, has confidentially filed for a stock market listing in the United States, as it looks to cash in on the boom in online commerce.
As consumers shift to digital modes of shopping, companies including Warby, which was last valued at $3bn after a funding round in 2020, are seeking to attract investors at a time the stock market has seen a record appetite for new listings, Reuters reported.
Blockchain Capital raises $300m for its Fund V. (FS)
Blockchain Capital, a venture capital firm founded to focus exclusively on blockchain technology and the crypto ecosystem, announced the close of Blockchain Capital V. The fund was heavily oversubscribed at its $300m hard cap with participation from strategic investors, pension funds, major university endowments and family offices from around the world.
"We are incredibly honored to welcome a world class group of investors into Fund V who appreciate the value of a firm dedicated to a single industry. As founders ourselves, we know how hard it is to build companies, protocols and, indeed, a whole new industry," P. Bart Stephens, Blockchain Capital Co-Founder and Managing Partner.
EMEA
PAI Partners, a European private equity firm, agreed to acquire Pasubio, a specialised provider of premium leather for the automotive industry, from CVC Capital Partners, an asset manager. The transaction, which is subject to customary closing conditions, is expected to close in October 2021. Financial terms were not disclosed.
“The company has a fantastic reputation in its field and is a key European player with significant global potential. We look forward to partnering with the Pretto family to support their exciting growth plans and further strengthen Pasubio’s leading position in the high-quality automotive leather market,” Simone Cavalieri, PAI Partners Partner and Head of Italy.
PAI is advised by Ramboll, Roland Berger, Deutsche Bank, Labs Corporate Finance, PricewaterhouseCoopers, Kirkland & Ellis, Latham & Watkins, Russo De Rosa Associati and Efeso. CVC is advised by AT Kearney, ERM Group, Ernst & Young, JP Morgan, Shearman & Sterling and Facchini Rossi Michelutti.
Vonovia, a German real estate firm, launched a public takeover offer for Deutsche Wohnen, a property company, and set a July 21 deadline to acquire 50% of Deutsche Wohnen shares for the merger to go through, Reuters reported.
Vonovia expects around $125m of cost cuts per year with merger synergies and savings.
Vonovia is advised by Freshfields Bruckhaus Deringer. Debt financing is provided by Bank of America, Morgan Stanley and Societe Generale. Debt providers are advised by Hengeler Mueller. Deutsche Wohnen is advised by Deutsche Bank, Goldman Sachs, JP Morgan, Perella Weinberg Partners, UBS, Hengeler Mueller and Sullivan & Cromwell. Financial advisors are advised by Gleiss Lutz and Skadden Arps Slate Meagher & Flom.
Thoma Bravo Advantage shareholders approve the proposed business combination with ironSource. (FS)
Thoma Bravo Advantage, a publicly traded SPAC, announced that shareholders of TBA voted to approve the proposed business combination with ironSource, a leading business platform for the App Economy, at its meeting held on June 22, 2021. The merger includes a PIPE from Tiger Global Management, Morgan Stanley, Nuveen, Hedosophia, Wellington Management, The Baupost Group, and Fidelity Investments Canada.
"Through their overwhelming support, our shareholders recognize the unique combination of scale, business growth and profitability that ironSource offers and the value Thoma Bravo Advantage provides through its deep operational and investment expertise in the software sector. We look forward to supporting ironSource as it enters the public markets and furthers its leadership position as one of the fastest growing and most innovative platforms for building and scaling businesses in the App Economy," Orlando Bravo, Thoma Bravo Advantage, Chairman of the Board of Directors.
ironSource is advised by Citigroup, Goldman Sachs, Jefferies, Latham & Watkins and Meitar Law Offices. Thoma Bravo is advised by Cadwalader Wickersham & Taft, Goldfarb Seligman & Co and Kirkland & Ellis. Baupost Group is advised by Fried Frank Harris Shriver & Jacobson.
Codere Online, a company that offers online sports betting and online casino, agreed to go public via a merger with DD3 Acquisition, a SPAC, in a $350m deal.
"By going public and with the new capitalization, we will be in a superb position to leverage our online business in our core countries of Spain, Italy, Mexico, Colombia and Panama, as well as the City of Buenos Aires, where we expect to start operating in late 2021, to fuel our further expansion in other high-growth Latin American markets," Moshe Edree, Codere Online Managing Director.
Codere Online is advised by Deloitte, Stifel, Clifford Chance, Davis Polk & Wardwell and ICR. DD3 is advised by EarlyBirdCapital, Greenberg Traurig, Perez Llorca, Stibbe and ICR.
RTL Group, an international media company, agreed to merge with Talpa Network, a provider of full-service media development and production services. Financial terms were not disclosed.
"Following the proposed merger of Groupe TF1 and Groupe M6 in France, the combination of RTL Nederland and Talpa Network is the second major step to scale up our broadcasting businesses across our European footprint. The new cross-media group will have the size, resources and creativity to compete with global tech platforms in the Netherlands when it comes to investing in premium content, offering the most advanced addressable advertising opportunities, and expanding Videoland, the leading national streaming service for Dutch viewers," Thomas Rabe, RTL Group CEO.
RTL Group is advised by Ernst & Young, JP Morgan and NautaDutilh. Talpa Network is advised by Deloitte, PJT Partners and Freshfields Bruckhaus Deringer.
Senior rejects Lone Star’s £840m takeover offer. (FS)
Senior, the aerospace and defence group, has rejected a final takeover offer from US private equity firm Lone Star Global Acquisitions, describing it as highly opportunistic, FT reported.
Lone Star’s investment vehicle, LSF XI Investments, raised its proposed offer for the UK group to £840m ($1.17bn). It said it had offered a fifth and final proposal after Senior rejected a previously undisclosed fourth offer last week.
Senior is advised by Jefferies, Credit Suisse and Lazard. Lone Star Funds is advised by Goldman Sachs and Headland Consultancy.
Trill Impact to acquire MEONA and i-SOLUTIONS from EMERAM Capital. (FS)
Trill Impact, a private equity firm, agreed to acquire MEONA, a company that designs and develops clinical software products, and i-SOLUTIONS, a Swiss software consulting firm, from EMERAM Capital, a private equity firm. Financial terms were not disclosed.
“As business development partner, EMERAM has supported MEONA in its strategic positioning and the continuous development of the organisation. We have now found an ideal partner for the next growth phase of the company, as Trill Impact is also acquiring i-SOLUTIONS Health GmbH, with whom MEONA has already been in contact for some time. Subject to the relevant antitrust approvals, this will create another strong player in the healthcare IT market. We welcome this step and support it accordingly with our sale," Kai Köppen, EMERAM Senior Partner.
EMERAM is advised by GCA Altium, PricewaterhouseCoopers and Jones Day. Trill Impact is advised by Hengeler Mueller.
CMA serves enforcement order on Bristol Water takeover by Pennon. (FS)
The UK Competitions & Markets Authority said it has slapped water utility Pennon Group with an initial enforcement order in relation to the company's takeover of Bristol Water. Pennon bought Bristol Water earlier in June for an equity value of £425m ($591m) and enterprise value of £814m ($1.1bn).
Initial enforcement orders are issued during the CMA's phase 1 assessment of a merger, and prevents integration of the two businesses. The CMA is mulling whether the deal will reduce competition.
"This latest acquisition...firmly cements Pennon as one of the leading UK water and waste water companies," Susan Davy, Pennon CEO.
Pennon Group is advised by Barclays, Morgan Stanley, Finsbury Glover Hering.
Shareholders of MONETA Money Bank, a commercial bank, rejected a share issue that would have given PPF, an international financial and investment group, a controlling stake and would have helped pay for a proposed $1.2bn acquisition of PPF’s Czech lending assets, Reuters reported.
“This vote means financing of the acquisition of the Air Bank group was not approved. However, we believe we will soon find a way to get the necessary support and complete the transaction," Tomas Spurny, MONETA CEO.
MONETA is advised by JP Morgan and UBS.
Murdock Builders Merchants, a supplier to the construction industry, completed the acquisition of Brooks Group, a plywood supplier and a building materials store, from Premier Forest Products Group, a building products distribution company. Financial terms were not disclosed.
"The combination of Brooks with Murdocks comes at a great time for the business. We have made significant progress in realizing the objectives of our strategy, strengthening the fundamentals, enhancing resilience and delivering performance. The team at Brooks is ambitious for the business and that ambition is matched by Ciaran and his colleagues. We’re looking forward to an exciting new chapter for the combined business," Mark Lohan, Brooks Group Managing Director.
Murdock Builders Merchants was advised by Grant Thornton and Eugene F Collins.
Insight Partners and General Atlantic, two private equity firms, led a $543m Series A funding round in Transmit Security, a designer and developer of security software. The round had participation from investors Cyberstarts, Geodesic, SYN Ventures, Vintage and Artisanal Ventures.
“We have been watching the growth of Transmit Security for some time, and are deeply impressed by the leadership and passion Mickey and Rakesh have demonstrated as they take identity management to a new level. Their groundbreaking technology, entrepreneurial spirit and deep expertise is precisely what this industry needs at this moment," Matt Gatto, Insight Partners Managing Director.
Transmit Security was advised by Activa PR.
Glenview Capital, a capital manager, and Novo Holdings, a life science investor, led a $245m Series D funding round in Quanta Dialysis, a medical technology company. Additional Investors include BlackRock, Eldridge, Sands Capital, Millennium Management, Monashee Investment, Puhua Capital, Segulah Medical, Ancora, Orlando Health, Wellington Partners, btov, Seroba Life Sciences and The Grands.
“Quanta’s innovative cartridge-based system is compact, simple, and powerful and provides tremendous value and treatment flexibility for providers and patients across an omni-channel delivery chain, from dedicated dialysis centers, acute care hospitals, and increasingly moving into the home. With this growth capital, Quanta has the resources to drive improved patient outcomes and convenience while accelerating market penetration and scale," Lee Hathaway, Glenview Capital Partner.
Quanta Dialysis was advised by JP Morgan.
Goldman Sachs led a $120m Series D funding round in Aircall, a developer of mobile application software. The round had participation from investors DTCP, eFounders, Draper Esprit, Adams Street Partners, NextWorld Capital and Gaia Capital Partners.
"The past 12 months have been a catalyst for Aircall's cloud based SaaS communication solution. In a hybrid work environment, users are looking to Aircall to provide an easy to use experience that is highly integrated into their workflows, thereby making the most out of every customer interaction. We are very excited to partner with Aircall, as the company looks to accelerate its growth and expand globally," Christian Resch, Goldman Sachs Managing Director.
Aircall was advised by InkHouse.
Citigroup agreed to acquire a 13.9% stake in the Bank of Ireland from the Government of Ireland for $807m.
"Today's announcement marks the start of a phased exit from the state's remaining investment in Bank of Ireland. When all cashflows are taken into account the taxpayer has already recorded a surplus on its investment in and support for the bank, even before the sales of these shares are accounted for," Paschal Donohoe, Minister for Finance of Ireland.
DST Global, an Internet investment firm, led a $244m Series C funding round in GoStudent, a developer of an online learning application. Additional investors include SoftBank Vision Fund 2, Tencent, Dragoneer, Coatue, Left Lane Capital and DN Capital.
“At the heart of GoStudent is our mission to build the No. 1 Global School. The new investment and the resulting opportunities for continued international growth bring us one step closer to fulfilling our mission," Felix Ohswald, GoStudent Co-Founder and CEO.
Cinven and Bain battle for $1.8bn acquisition of Rolls-Royce's ITP Aero. (FS)
Private equity firms Bain Capital and Cinven are reportedly battling it out in the final bidding for Rolls-Royce’s ITP Aero division, which could fetch around $1.8bn.
The remaining bidders are courting local partners to join their offers for the Spanish aircraft-engine supplier and help win government approval for a deal.
Bain was understood to be planning to join up with a member of a local wealthy family, while Cinven is teaming up with a firm in the Basque region, where ITP is based.
Swiss Re sells 6.6% stake in Phoenix for $608m.
Swiss Re, a provider of reinsurance, insurance and other forms of insurance-based risk transfer, ie reducing its shareholding in Phoenix Group, a British closed life assurance fund consolidator, for $608m.
The company sells approximately a 6.6% stake via an accelerated book building process. The sale was done in the context of a regular review and rebalancing of Swiss Re’s investment portfolio and is consistent with the group’s overall investment strategy.
DWS Group weighs a sale of $600m Omnicom London headquarters. (RE)
Deutsche Bank’s DWS Group is weighing a sale of one of its largest London office assets as the easing of pandemic restrictions tempts buyers back to the city’s real estate market.
The asset manager has appointed advisers to gauge buyer interest in the Bankside 2 and 3 buildings on the south bank of London’s River Thames. The offices are leased to advertising giant Omnicom Group and were recently valued at $597m.
Petronas is eyeing a potential exit from Engen.
Petroliam Nasional, a Malaysian oil and gas company, is reviving discussions on a potential exit from South African fuel retailer business Engen.
The Malaysian state energy company is studying options for its 74% stake in Engen, including a sale or initial public offering. It has recently been fielding preliminary interest from potential buyers.
Petronas had previously held discussions about a listing of the Cape Town-based business as soon as early 2020, though the deal didn’t go ahead.
UK weighs selling Channel 4.
The UK will consider a sale of state-owned broadcaster Channel 4 Television and new regulations for streaming services like Netflix, in a major shakeup of the government’s role in television.
The government will consult on Channel 4’s ownership and remit, and is set to publish findings later in the year, the Department for Digital, Culture, Media and Sport said in a statement, Bloomberg reported.
“Moving Channel 4 into private ownership could allow it to access new capital, create strategic partnerships, and reach international markets only available through the private sector,” DCMS.
AptarGroup is in exclusive negotiations to acquire Voluntis.
AptarGroup, a drug delivery, consumer product dispensing and active material science solutions company, announced that it has entered into exclusive negotiations to acquire Voluntis, a pioneer in digital therapeutics.
This acquisition would complement Aptar’s existing digital health portfolio of connected devices by adding digital therapeutic solutions and broadening its digital health services across multiple chronic conditions and diseases.
"Voluntis has established itself as a true innovator in digital therapeutics over the last decade with chronic disease management at the core of their offering. Combined with our existing device platforms, extensive research and development capabilities, and long-established relationships in the healthcare space, this strategic investment would accelerate Aptar’s future digital healthcare offerings and drive innovation that delivers life-changing and empowering support tools for patients around the globe," Stephan B. Tanda, Aptar President and CEO.
Aptar is advised by Societe Generale and Linklaters.
Hillebrand shortlists private equity groups in a sale. (FS)
Hillebrand, has shortlisted several private equity groups as potential buyers of the German liquor logistics group in a deal that could value the business at up to $1.8bn.
CVC, Onex, Rhone and Lindsay Goldberg are among those who have advanced to the second round of bidding, with offers worth 11-13 times Hillebrand’s expected 2021 core earnings of $143m.
Belgian investor Cobepa, which is working with Rothschild on the divestiture, put the alcoholic beverage freight forwarder up for sale as an online shopping boom during the Covid-19 pandemic saw demand for its services spike, Reuters reported.
Mediaset Dutch move set to get green light in boost to M&A push.
Mediaset’s shareholders are set to back a plan to make the Netherlands the legal base of Italy’s top commercial broadcaster, potentially paving the way for cross-border deals needed to fight competition from online rivals, Reuters reported.
Mediaset is trying to reshape its business, which has been hit by the growth of web advertising giants such as Facebook and Google. Controlled by the family of former Prime Minister Silvio Berlusconi through its Fininvest holding company, Mediaset has long been targeting cross-border growth in Europe.
But the plan, which initially envisaged a merger of Mediaset’s Italian and Spanish units under a Dutch holding, had stalled due to opposition from Mediaset’s second-largest shareholder, Vivendi.
Novum plans a $1.7bn IPO.
Novem, a German car parts maker, is preparing for a stock market flotation as Chinese carmakers step up production of premium cars, opening up new business opportunities for the German interiors supplier, CEO Guenter Brenner said.
Novem could be valued at about $1.7bn in a potential flotation, and an IPO could be announced as early as next week. Novum is working with JP Morgan.
“We can see that the Chinese carmakers are now starting to build their own premium vehicles and want to attack the world market as well. An IPO would be an almost logical step after our bond issue," Guenter Brenner.
Mister Spex is looking to raise $1bn in a Frankfurt IPO.
German online spectacles retailer Mister Spex, set a price range of $27 to $32 per share for its stock market listing, putting a prospective value on the business of up to $1bn. The bookbuilding is expected to end on June 30, with July 2 the first day of trading on the Frankfurt Stock Exchange, Reuters reported.
The Berlin-based startup intends to raise between $268m and $314m in its flotation, and will use the funds to ramp up its growth strategy, expand internationally and repay a bridge loan facility. Including stock offered by its owners, 15m shares are on offer at a valuation of up to $482m, assuming an over-allotment option is fully exercised.
Berenberg, Barclays, Jefferies, Bryan Garnier, Commerzbank, Quirin Privatbank, Freshfields Bruckhaus Deringer, Sullivan & Cromwell and Ashurst are advising Mister Spex.
FSN Capital raises $2.1bn for its sixth mid-market fund. (FS)
FSN Capital Partners, a private equity firm, announced the final closing of FSN Capital VI at $2.1bn. The fund was oversubscribed and closed above its original hard cap. With the new fund, FSN has grown significantly since FSN Capital V closed in 2016 at $1.17bn. Fund VI will continue FSN’s proven investment strategy of targeting control buyout investments of mid-sized companies operating in Northern Europe.
“ESG is a core part of FSN Capital’s value creation approach. Fund VI’s ESG commitments demonstrate our passion for building resilient businesses of strong integrity that will stand the test of time,” Frode Strand Nielsen, FSN Capital Managing Partner and Founder.
FSN Capital was advised by UBS and Kirkland & Ellis.
ABN Amro launches a $506m fund for sustainable impact companies. (FS)
ABN Amro, a Dutch bank announced the launch of Sustainable Impact Fund, a fund investing in companies accelerating the transition towards a sustainable and inclusive society.
The ABN Amro Sif will make private equity investments of $4.7m to $35m in companies that have a proven business model and are ready for the next phase of their growth. The fund will also make venture capital investments ranging from $596k to $4.7m in companies with a proven concept. It will allocate across the following three themes: the circular economy; energy transition; and, social impact.
Golding Capital Partners holds closing of its dedicated buyout co-investment fund at $192m. (FS)
Golding Capital Partners has reported the first closing for its co-investment fund “Golding Buyout Co-Investment 2020”, with capital commitments of $192m. The asset manager for alternative investments has thus been able to place three quarters of the target volume of $238m with investors – primarily pension funds and insurance companies – within just a few months.
“Golding Buyout Co-Investment 2020” continues to pursue the investment strategy launched back in 2015, with a focus on companies with proven business models in defensive sectors, such as health and technology, with conservative capital structures in Europe and North America. Despite this defensive orientation, the fund aspires to a net target IRR of 13-15%. The final closing is scheduled for the end of 2021.
“In spite of the general yield compression, we believe that we can still identify attractive investments for our investors. We are constructing a hand-picked portfolio of companies with sustainable growth – both organic and through buy-and-build strategies. One of our earlier investments has accelerated their growth strategy with our investment and is already involved in advanced discussions regarding a possible IPO, thus providing early proof of the attractiveness of our investment strategy,” Daniel Boege, Golding Partner and Head of Buyout.
APAC
KKR agreed to acquire a majority stake in Education Perfect, a New Zealand-based online education company, from Mulpha International, a diversified investment company, and Five V Capital, a private equity firm, for $319m.
"An investment by KKR’s Global Impact Fund validates EP’s stand-out position and exceptional track record in the fragmented education technology industry. Covid-19 has put education technology in the spotlight, and our amazing team and world-class data, technology and content have been the foundation of our success. I welcome KKR’s investment, which marks a key moment in the Company’s journey and sets EP up for its next phase of global growth. I’m excited by what the investment represents, and how it validates the quality of the product that we are offering to teachers, students, parents and school leaders, and the exceptional work the entire EP team is doing," Alex Burke, Education Perfect CEO.
KKR is advised by PricewaterhouseCoopers, Macquarie Group, Clifford Chance, Gilbert + Tobin and Citadel Magnus.
Carlyle Group, Bain Capital and Mahle to acquire a 70% stake in Hanon Systems from Hahn & Co and Hankook for $5.8bn. (FS)
Two private equity firms, Carlyle Group and Bain Capital and Mahle, an auto supplier, offered to acquire a 70% stake in Hanon Systems, a thermal and energy management solutions provider, from Hahn & Co, a private equity house, and Hankook, a company engaged in automobile parts industry, for $5.8bn.
Hanon Systems, the world’s second-largest supplier of auto thermal management systems, reported revenue of $6.08bn and operating profit of $278m last year.
Mahle is advised by Deutsche Bank.
Heineken, an international producer of beers, spirits, wines, and soft drinks, completed the acquisition of a 15% stake in United Breweries, a manufacturer of alcoholic beverages, for $781m.
A narrowing of the gap between tax on beer and on spirits would give significant potential for the market to grow from current annual beer consumption of 1.6 litres per capita towards the global average of 24.4 litres.
Ke Liming completed the acquisition of HengTen Networks from Evergrande for $570m.
Ke Liming, a private investor, completed the acquisition of HengTen Networks, aholding company principally engaged in the manufacturing and sale of accessories, from Evergrande, an integrated residential property developer, for $570m.
Evergrande Group sold stakes in its internet unit to ease funding pressure.
Actis, an investor in growth markets, agreed to acquire 500 MW solar power plants in India from Fortum, a provider of a full range of energy related products and services, for c.$333m.
"We can utilize the strong competencies Fortum has gained over the years in solar development and construction while utilizing the financial strength and track record of Actis to realize the investment potential," Per Langer, Fortum’s City Solutions division Executive Vice President.
RATCH Group-backed RH International to acquire Paiton Energy from Mitsui.
RH International, a unit of Thai energy firm Ratch Group, agreed to acquire Paiton Energy, an Indonesian coal power plants operator, from Mitsui, a Japanese trading house. This transaction is expected to close before the end of fiscal year ending March 2022 subject to completion of certain conditions precedent. Financial terms were not disclosed.
Mitsui expected to book a profit from the deal. This transaction is being implemented as part of Mitsui's ongoing strategy to re-cycle its business portfolio.
Korea Development Bank, a national bank, and Alkeon Capital Managemen, an American investment company, led a $410m funding round in Viva Republica, known as Toss Securities, a fintech company. Additional inverts include Altos Ventures and Greyhound Capital.
“Korea has the highest level of financialization per household in banking, card, insurance, etc. in the world, and the speed of digital transformation of finance is rapidly accelerating after Covid-19, so the growth opportunity for the mobile financial platform is very large. With Toss as a direct player in key areas such as banking and securities, we are able to design financial services and products from a customer perspective,” Seung-Gun Lee, Toss CEO of Toss.
Renault-Nissan-Mitsubishi led a $310m funding round in WeRide. (FS)
Renault-Nissan-Mitsubishi, a manufacturer of electric vehicles catering to the automobile industry, led a $310m funding round in WeRide, a developer of fully autonomous vehicles designed to deliver a safe, robust and convenient MaaS. Additional investor includes China Structural Reform Fund.
"As China stands at the forefront of helping define the future of mobility, we are delighted to partner with WeRide to bring even more innovative technologies and services to enrich people's lives in China," Ashwani Gupta, Nissan CEO.
Masayoshi Son says share buybacks remain an option for SoftBank.
Masayoshi Son, SoftBank Group CEO, said that share buybacks remain an option for the conglomerate, amid a slide in its shares.
Shares in SoftBank, which completed a record $22.6bn buyback programme in May, have fallen amid weakness in tech stocks. That has helped widen its conglomerate discount - the gap between the value of its assets and share price - to about 50%, Reuters reported.
“Buybacks are always on my mind as an important option but when and how big requires balanced thinking. I believe our potential is much bigger than the discounted share price. Just as the Rothschilds were a central player in the industrial revolution, we’d like to become the key player in the information revolution," Masayoshi Son.
SoftBank-backed Dingdong targets over $6bn valuation in US IPO. (FS)
SoftBank Vision Fund II-backed Dingdong, a Chinese grocery startup, aims for more than $6bn valuations in its New York debut. Dingdong plans to list its shares on the New York Stock Exchange under the symbol "DDL".
Dingdong said it aims to raise up to $357m in its IPO as it seeks to navigate a crowded sector. The valuation represents a jump of over 20% from the $5.1bn the company was worth after the Japanese conglomerate invested in it last month, Reuters reported.
Morgan Stanley, Bank of America and Credit Suisse are the IPO's lead underwriters.
Tencent-backed Missfresh eyes a $3.8bn valuation in US IPO.
Tencent-backed Missfresh, a Chinese online grocery startup, is planning to raise as much as $336m for its US IPO, which is expected to value the company at up to $3.8bn at the top end of the range.
Missfresh is offering 21m American Depositary Shares at a price range of between $13 and $16 each, Reuters reported.
JP Morgan, Citigroup, CICC and China Renaissance are the lead underwriters for the offering.
PE-backed Lalamove files for a $1bn US IPO. (FS)
Lalamove, an on-demand logistics and delivery firm, has filed confidentially for a US initial public offering.
Lalamove is looking to raise at least $1bn in the share sale. Details of the offering including the fundraising amount are still subject to change depending on investor demand. Lalamove is backed by Sequoia Capital China, Hillhouse Capital Group, Shunwei Capital, Xianghe Capital, & MindWorks Ventures among others.
SoftBank-backed EDDA weighs Hong Kong IPO.
SoftBank-backed EDDA Healthcare and Technology Holding, a robotic surgery firm, is considering a Hong Kong IPO, that could value the company at about $1bn.
EDDA is working with advisers as it seeks to raise about $300m in a share sale. It plans to use the proceeds of the fundraising on innovation in precision surgery to treat diseases such as cancer, and to further expand in Chinese cities where hospitals need surgical robots.
An IPO could take place as early as this year, depending on market conditions. Deliberations are in the early stages and no final decisions on the size and timing of any listing have been made.
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