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AMERICAS
TPG, a global alternative asset management firm, completed the acquisition of Angelo Gordon, an alternative investment firm focused on credit and real estate investing, for $2.7bn.
“This is a milestone transaction for TPG, representing an important step in our continued evolution as a diversified global alternative asset manager. As we continue to operate and invest in dynamic markets, the addition of Angelo Gordon expands our capabilities and creates highly compelling investment opportunities. We approach today's market from a position of strength with best-in-class talent, deep, sector-driven expertise, and broad flexibility to provide solutions for portfolio companies, clients, and shareholders. Moving forward, TPG expects to continue to deliver excellent performance, build an inclusive and diverse culture, and accelerate growth through new and existing strategies,” Jon Winkelried, TPG CEO.
TPG was advised by Ardea Partners, JP Morgan, Morgan Stanley, Cleary Gottlieb Steen & Hamilton (led by Adrian Leipsic, Elizabeth Dyer and Maurice Gindi), Davis Polk & Wardwell (led by David H. Schnabel), Shearman & Sterling (led by John J Cannon III and Gillian Moldowan), Weil Gotshal and Manges (led by Brian Parness and Harvey Eisenberg), Freshfields Bruckhaus Deringer (led by Ethan A. Klingsberg) and Joele Frank (led by Ed Trissel and Greg Klassen). Angelo Gordon was advised by Goldman Sachs, Piper Sandler, Paul Weiss Rifkind Wharton & Garrison (led by Marco V. Masotti, Steven Williams, Samuel Welt and Maury Slevin), Sullivan & Cromwell (led by Stephen M. Kotran) and Gasthalter & Co (led by Nathaniel Garnick and Amanda Shpiner).
New Relic, the all-in-one observability platform for every engineer, announced that its stockholders have voted to approve the acquisition of New Relic by Francisco Partners and TPG in a special meeting held yesterday. As previously announced, under the terms of the merger agreement, New Relic stockholders will receive $87 per share in cash for each share of New Relic common stock that they own.
New Relic is advised by Qatalyst Partners, Freshfields Bruckhaus Deringer (led by Sarah Solum), Latham & Watkins (led by Tad Freese and Mark M. Bekheit), Morrison & Foerster (led by Spencer Klein) and Joele Frank (led by Kelly Sullivan, Adam Pollack, Matthew Sherman and Kaitlin Kikalo). Francisco Partners is advised by Goldman Sachs, JP Morgan, Moelis & Co, Morgan Stanley, Davis Polk & Wardwell (led by Oliver H. Smith and Darren M. Schweiger), Kirkland & Ellis, Paul Hastings (led by Mike Kennedy and Jeffrey Wolf) and Sloane & Company (led by Whit Clay).
Cedar Fair, an amusement park company, agreed to merge with Six Flags, an entertainment services company, in a $8bn deal.
“Our merger with Six Flags will bring together two of North America’s iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance. Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests. The combination also creates an enhanced financial profile with strong cash flow generation to accelerate investments in our parks to delight our guests, driving increased levels of demand and in-park value and spending. I have great respect for the Six Flags team and look forward to joining forces as we embark on this next chapter together,” Richard Zimmerman, Cedar Fair President and CEO.
Iron Mountain, an IT services company, agreed to acquire Regency Technologies, a provider of IT asset disposition services, for $200m.
“We are excited to add Regency’s extensive experience of over 20 years, during which we’ve successfully served enterprises, government entities and retailers, to Iron Mountain’s already impressive customer portfolio, which includes 95% of the Fortune 1000. By integrating our presence, remarketing expertise, and recycling operations into Iron Mountain’s ALM business, we’ll be uniting a broad array of capabilities, further solidifying our leadership in the market,” Jim Levine, Regency Technologies CEO.
Iron Mountain is advised by Weil Gotshal and Manges (led by Michael J. Aiello and Iliana Karaoglan). Regency Technologies is advised by Lazard, Metronome Partners, BakerHostetler, Sonkin Koberna and BMF.
Thompson Street and Endicott Capital-backed MediaRadar, an advertising intelligence and sales enablement platform, agreed to acquire Vivvix from Kantar Group, an advertising intelligence company. Financial terms were not disclosed.
“By combining Vivvix and MediaRadar, we offer a complete view of the entire advertising industry. Together, our unparalleled market intelligence will enable strategic decision-making, allowing media sellers, brands, and agencies to navigate the dynamic advertising landscape with even greater confidence,” Todd Krizelman, MediaRadar CEO and Co-Founder.
MediaRadar is advised by Solomon Partners and Simpson Thacher & Bartlett. Kantar Group is advised by Barclays and Weil Gotshal and Manges.
Core Specialty, an insurance company, agreed to acquire American Surety Company, a property & casualty company. Financial terms were not disclosed.
“We are delighted that American Surety will become our 15th Specialty Business Unit. We believe that the surety market represents a highly attractive market segment for us to enter given its strong underwriting profitability over time and barriers to entry. According to AM Best market data, the surety market included approximately $9bn in direct premiums written in 2022 and produced a 10-year average combined ratio of 71%. We look forward to working with the American Surety team to further build this business,” Jeff Consolino, Core Specialty Founder, President, and CEO.
American Surety Company is advised by Propel Advisory Group and Faegre Drinker Biddle & Reath. Core Specialty is advised by Skadden Arps Slate Meagher & Flom (led by Jon Hlafter).
Culligan International, a United States based global water treatment company, agreed to acquire a stake in international businesses of Primo Water, an American-Canadian water company, for $575m.
"We are pleased to have reached an agreement that we believe unlocks significant value for Primo Water shareowners. The Transaction was the result of a proactive board-led process that resulted in an agreement that offers an attractive premium valuation for a significant portion of our international businesses and simplifies and focuses Primo Water on our core North American water busines. Looking ahead, we will be laser-focused on growing the North American business, increasing our profitability and margins, enhancing our balance sheet strength, and returning capital to shareowners," Tom Harrington, Primo Water CEO.
Primo Water is advised by BMO Capital Markets and White & Case.
Royalty Management, a royalty company, went public via a SPAC merger with American Acquisition Opportunity, a blank cheque company, in a $111m.
"We are excited to create this synergistic relationship between RMC and AMAO so that the combined company can continue to build on its impressive growth trajectory as a public company and deliver both yield and growth to our shareholders," Mark Jensen, AMAO CEO.
American Acquisition Opportunity was advised by RedChip Companies.
TransAlta, an electricity power generator and wholesale marketing company, agreed to acquire Heartland Generation, a power generation company, from Energy Capital Partners, an American investment firm, for $658m.
"With this acquisition we are pleased to announce the addition of highly flexible and complementary assets to our Alberta portfolio. As the energy transition continues to drive new investment in renewables in the Province, our assessment is that the market will require low-cost, highly flexible and fast-responding generation, which will be supportive to grid reliability over the coming years. This transaction will support us in maintaining our competitive positioning and ensure we have a robust and diversified portfolio, which together with our marketing capabilities, can complement and support a cleaner grid," John Kousinioris, TransAlta President and CEO.
Cars.com, an audience-driven technology company, agreed to acquire D2C Media, an automotive technology and digital solutions provider, for $101m.
"The acquisition of D2C Media presents an exciting opportunity to expand Cars Commerce further across North America. With D2C Media's deep local relationships and established infrastructure, we will be able to tap into a new market with dozens of OEMs and thousands of retailers to fuel accelerated growth. I'm thrilled to welcome the D2C Media team, and, together, we look forward to creating tremendous value for Canadian retailers through our ongoing commitment to enabling local automotive retail and simplifying everything about buying and selling cars," Alex Vetter, Cars.com CEO.
Closed Loop Partners, an investment firm, agreed to acquire a majority stake in Sage Sustainable Electronics, an IT asset management and disposition provider. Financial terms were not disclosed.
"Sage Sustainable Electronics' work to safely increase reuse and proper disposition in the ITAD space is critical to ensuring valuable materials, such as IT assets, do not end up wasted in landfills or the natural environment. E-waste represents a massive loss of value that we can recover through more efficient reuse and recycling. We are proud to partner with the Sage team and support their continued growth as one of the leading IT Asset Disposition providers in North America," Karine Khatcherian, Closed Loop Partners Managing Director.
Cheaper Canadian oil and gas valuations lure potential US buyers north.
US corporates and private equity firms are increasingly eyeing Canadian oil and gas companies for acquisition, drawn by lower valuations, ample fossil fuel reserves, and improving market access, Reuters reported.
Companies operating in the huge Montney shale formation, which spans northern Alberta and British Columbia and accounts for roughly half Canada's gas production, are most attractive to potential buyers. Assets located in the smaller Duvernay and Clearwater formations are also piquing interest. The surge in interest comes in the wake of major US oil sector deals: Exxon Mobil's $60bn bid for Pioneer Natural Resources and Chevron's $53bn agreement to acquire Hess.
Charlesbank targets $1.2bn for a third opportunistic credit fund. (FS)
Charlesbank Capital Partners is aiming to raise $1.2bn for its third opportunistic credit fund, looking to invest in new corporate loans as well as to purchase them from other private credit shops to take advantage of market dislocations.
The fundraising, which so far has closed on a commitment of $1.2bn, is looking to wrap up early next year. The fund has already deployed $900m. Credit Opportunities Fund III will focus mainly on direct lending debt, often defined as senior secured loans to risky companies, that range from performing to stressed and distressed.
GCM Grosvenor closes $882m infrastructure fund. (FS)
GCM Grosvenor has successfully closed its CIS III fund with committed capital of $882m, marking a 37% increase from the previous CIS II fund. This latest close has propelled the firm's total infrastructure fundraising to an impressive $7.8bn since 2021.
The Chicago-based global investment and advisory firm manages approximately $13bn in infrastructure assets as of the second quarter of 2023, and around $76bn in total assets under management across various investment strategies including private equity, real estate, credit, and absolute return. Scott Litman, Managing Director of Infrastructure Investments at GCM Grosvenor, attributed this success to the firm's unique global sourcing strategy and flexible investment implementation approaches. The fund aims to offer diversified opportunities across multiple sub-asset classes such as transportation, energy transition, digital infrastructure, battery storage, and e-commerce logistics.
EMEA
PIF-backed AviLease, an aircraft lessor with a portfolio of the latest generation, environmentally friendly aircraft, on lease to commercial airlines, completed the acquisition of global aviation finance leasing business from Standard Chartered, a banking firm that provides banking and financial services, for $700m.
“The sale of our Aviation Finance leasing business allows us to continue focusing our efforts on those areas where we are most differentiated, and make further progress on our Return on Tangible Equity journey. I want to thank our Aviation Finance colleagues, whose commitment to building an outstanding franchise over more than 15 years has enabled the success of this transaction,” Simon Cooper, Corporate, Commercial & Institutional Banking and Europe & Americas at Standard Chartered CEO.
Standard Chartered was advised by JP Morgan. AviLease was advised by Citigroup, KPMG, Allen & Overy and Arthur Cox (led by Ruth Lillis and Maeve Moran). Debt financing was provided by BNP Paribas, HSBC, MUFG Bank and Citigroup. Debt providers were advised by Clifford Chance (led by Graham Brewer).
Inari Medical, a medical device manufacturer, agreed to acquire LimFlow, a medical device manufacturer, for $415m.
“We are excited to join forces with Inari Medical to expand the reach of our remarkable technology and bring hope to patients currently suffering from it. We sincerely thank the exceptional LimFlow team, our dedicated clinical partners and our investors who believed in our mission. Together, we look forward to advancing our shared vision of addressing critical unmet needs in vascular disease," Dan Rose, LimFlow CEO.
LimFlow is advised by Chronic Communications (led by Michelle McAdam). Inari Medical is advised by Bank of America and Latham & Watkins.
Mitie Group, a British strategic outsourcing and energy services company, agreed to acquire GBE Converge Group, an independent fire & security company, for £27m ($33m).
"We are delighted to welcome the GBE team to the Group. As our customers' needs for facilities transformation evolve and demand grows for 'smart buildings', Building Management Systems are increasingly converging with Fire & Security platforms. The acquisition of GBE brings sophisticated intelligence-based Fire & Security capabilities and enables Mitie to broaden the range of projects we can self-deliver for our customers in the built environment," Phil Bentley, Mitie Group CEO.
Challenger plan for Telecom Italia includes €16bn in asset sales. (FS)
The sale of Telecom Italia's domestic retail operations and Brazilian unit could raise at least €16bn ($17bn). The suggested sales are key planks of a revamp plan put forward by former TIM deputy general manager Stefano Siragusa and London-brd investment firm Merlyn Advisors, who together own under 3% of TIM, Reuters reported.
Merlyn and Siragusa are challenging TIM's plan to sell its landline grid to US fund KKR. The grid sale is backed by Giorgia Meloni's conservative government, which has authorised the Treasury to buy a 15-20% stake in the asset it deems strategic.
EQT revives talks to acquire Global Switch in a $6.5bn deal. (FS)
EQT has resumed seeking to acquire Global Switch in a deal that could value the data center company at around $6.5bn, months after earlier talks stalled over disagreements on valuation, Bloomberg reported.
The private equity firm is in discussions with Global Switch's Chinese owners about a potential deal. An agreement could be reached in the coming months depending on the outcome of the due diligence.
Greece to start sale of National Bank stake in coming weeks.
Greece's bank bailout fund plans to start the process for selling a 20% stake in National Bank, the country's second largest lender, in the coming weeks, Reuters reported.
After injecting about €50bn ($53bn) to prop up Greece's largest banks during its decade-long economic crisis in return for shares, the state-controlled Hellenic Financial Stability Fund (HFSF) this year decided to start selling the shares as the lenders have been recovering. HFSF last month sold a 1.4% stake in Eurobank back to the bank and invited investors to submit bids for a 9.4% stake in Alpha Bank, which UniCredit also wants to acquire. HFSF currently holds a 40.4% stake in NBG, with a market value of €4.9bn ($5.2bn), and a 27% stake in Piraeus Bank.
RedBird weighs sale of French football club Toulouse. (FS)
RedBird Capital Partners is considering a potential sale of French football club Toulouse FC. The US investment firm is in the early stages of studying the feasibility of a sale of the team, Bloomberg reported.
Lloyds rejects latest bid by Barclay family for UK's Telegraph. (FS)
Lloyds Banking Group has turned down the latest bid from the Barclay family to reclaim the Telegraph newspaper as it looks to reassure potential bidders in an ongoing auction process, Bloomberg reported.
The lender rejected a £1bn ($1.2bn) offer backed by a Middle East investor. The bank has told the family to either bid in the auction or return with a transparently funded offer for the full amount it owes.
Investcorp Capital seeks up to $403m in UAE listing. (FS)
Investcorp Capital and the Middle East's biggest alternative asset manager, its parent, are looking to raise as much as $403m in an Abu Dhabi initial public offering, Bloomberg reported.
The price range for the investment vehicle was set at $0.52 to $0.63 per share, according to a statement on November 2. Investcorp is selling 322m shares in Investcorp Capital, which is offering another 322m new shares in the IPO. Together, that represents about a 29.3% stake.
The IPO was covered on the total size within an hour of opening books. However, over 60% of the offering is being bought by one special-purpose vehicle as a cornerstone investor.
APAC
Zurich Insurance Group, a Swiss insurance company, agreed to acquire a 51% stake in Kotak Mahindra General Insurance Company, a general insurance company, from Kotak Mahindra Bank, an Indian banking and financial services company, for $488m.
“The alliance brings together two trusted and respected brands. The combined expertise and resources of respective firms will enable us to provide innovative solutions to meet the evolving needs of our customers. Kotak Mahindra Group’s pan India distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats has potential to create a transformational impact for the Kotak General Insurance franchise delivering innovation efficiently and rapidly in the Indian General Insurance space,” Dipak Gupta, Kotak Mahindra Bank Managing Director & CEO.
Zurich Insurance Group is advised by Cyril Amarchand Mangaldas (led by Indranath Bishnu).
Asiana backs sale of cargo unit, removing one hurdle to Korean Air merger.
South Korea's Asiana Airlines said on November 2 its board had approved the sale of the company's cargo business - an important step towards allaying EU competition concerns about a proposed takeover by Korean Air Lines, Reuters reported.
Korean Air, the country's biggest carrier, said in a statement following the decision that it had submitted a package of remedies to the European Commission - remedies that also include divesting routes to some European Union cities. However, Asiana's greenlighting of the cargo unit sale did not necessarily ensure smooth sailing ahead for the deal. Valuation for the air cargo unit of some $520m including debt was probably too high. That could become a new stumbling block for the sale and hence regulatory approval.
Nippon Steel drops patent lawsuits against Toyota, Mitsui.
Japan's Nippon Steel said on November 2 it had dropped lawsuits against Toyota Motor and Mitsui over electrical steel sheet patents, but continues to seek damages from China's Baoshan Iron & Steel (Baosteel), Reuters reported.
Nippon Steel's lawsuits, which were filed in 2021, sought compensatory damages from Toyota, Baosteel, Mitsui and Mitsui Steel, alleging infringement of patents on non-oriented electrical steel sheets. The Japanese steelmaker said it had terminated the lawsuits against Toyota and Mitsui by waiving claims against them. Nippon Steel said in a statement it will continue its case against Baoshan and "firmly protect its intellectual property rights as the fruits of its technological development."
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