AMERICAS
Menarini Group, a privately held Italian pharmaceutical and diagnostics company, agreed to acquire Stemline Therapeutics, a commercial-stage biopharmaceutical company focused on the development and commercialization of novel oncology therapeutics, for $677m.
"Stemline is an excellent fit for Menarini, enabling us to expand our presence in the US with an established biopharmaceutical company focused on developing oncology therapeutics. Through this acquisition, we will continue to strengthen our portfolio and pipeline of oncology assets and deliver novel therapies around the world. We look forward to uniting together with the Stemline team to advance our shared mission of serving patients," Elcin Barker Ergun, Menarini Group CEO.
Stemline Therapeutics is advised by PJT Partners, Bank of America Merrill Lynch, Alston & Bird, Skadden Arps Slate Meagher & Flom and Joele Frank. Bank of America Merrill Lynch is advised by Sullivan & Cromwell. PJT Partners is advised by Ropes & Gray. Menarini Group is advised by Goldman Sachs, Fried Frank Harris Shriver & Jacobson and Sard Verbinnen & Co.
Cengage, an educational content, technology and services company, and McGraw-Hill, a learning science company, terminated their $2.6bn merger of equals.
"Because the required divestitures would have made the merger uneconomical, McGraw-Hill and Cengage have decided to terminate the merger agreement. This will allow each of us to focus on our respective stand-alone strategies for the benefit of our owners, employees, customers and other stakeholders. I want to express my deep appreciation for the efforts and incredible commitment demonstrated by McGraw-Hill's employees over the past year and particularly in recent weeks as they have worked tirelessly to help educators make the transition to online learning," Simon Allen, McGraw-Hill CEO.
Amherst, a data-driven real estate investment firm with strategies across the residential and commercial real estate capital markets, terminated its $2.3bn merger with Front Yard Residential, provider of real estate and mortgage portfolio management services.
"While we are disappointed that the transaction with Amherst will not close, we believe that we have reached an outcome that will allow the Company to focus on delivering long-term shareholder value while putting it in a strong financial position going forward. We are pleased that the business performed well in the first quarter, which has continued into April," George Ellison, Front Yard CEO.
KLX Energy Services, a US onshore provider of mission-critical oilfield services, agreed to merge with Quintana Energy Services, a provider of diversified oilfield services to onshore oil and natural gas exploration and production companies. QES shareholders will receive 0.4844 shares of KLXE common stock for each share of QES common stock. Upon closing, KLXE and QES shareholders will, respectively, own approximately 59% and 41% of the equity of the combined company on a fully diluted basis.
“QES will add directional drilling, snubbing and well control services to KLXE’s already broad range of product and service lines. We will be rationalizing two of the largest fleets of coiled tubing and wireline assets, which will dramatically reduce future capital spending requirements and which will facilitate the pull-through of KLXE’s asset-light products and services. As QES has previously announced the idling of its capital-intensive frac business, we intend to repurpose the vast majority of the pressure pumping equipment to support what will become the largest fleet of large diameter coiled tubing assets in North America. Additionally, we will repurpose some of the pressure pumping equipment to support the wireline fleet, which will also be one of the largest in the US, and one of the largest independent providers of directional drilling services," Tom McCaffrey, KLXE President and CEO.
QES is advised by Tudor Pickering Holt, Skadden Arps Slate Meagher & Flom and Dennard Lascar. KLXE is advised by Goldman Sachs and Freshfields Bruckhaus Deringer. Goldman Sachs is advised by Sullivan & Cromwell.
British defence company BAE Systems completed the acquisition of Raytheon’s airborne tactical radios business, paying $275m out of existing cash resources to finalise the deal.
In January BAE announced the acquisition of the radio business and Collins Aerospace, a supplier of aerospace and defence products for a total of $2.2bn. Both were sold as a result of the merger of Raytheon RTX.N and United Technologies. The Collins deal remains pending.
BAE Systems was advised by Bank of America Merrill Lynch. Bank of America Merrill Lynch was advised by Cleary Gottlieb Steen & Hamilton. Raytheon was advised by Citigroup.
Adare Pharmaceuticals, a clinical-stage pharmaceutical company, completed the acquisition of Orbis Biosciences, a pharmaceutical technology company. Financial terms were not disclosed.
"The acquisition by Adare will globalize the reach of our technologies and services. Orbis’s focus on precision delivery solutions has enabled us to develop expertise in novel extended-release and pulsatile-release formulations and to collaborate with great partners. We are pleased to join Adare, an industry leader in drug formulation development and manufacturing," Maria Flynn, Orbis Biosciences President and CEO.
Orbis Biosciences was advised by Stifel, Gunderson Dettmer Stough Villeneuve Franklin & Hachigian and Life Science Legal. Adare Pharmaceuticals was advised by Duane Morris.
CareCentrix, a provider of home-based and post-acute care services, completed the acquisition of Turn-Key Health, a community-based palliative care company serving health plans, hospitals and physicians, from Consonance Capital Partners, a healthcare-focused private equity manager. Financial terms were not disclosed.
“Health plans and patients are looking for home-based palliative care that honors the hard choices that patients and families need to make as well as gives them the opportunity to remain at home. The acquisition of Turn-Key is the next step in CareCentrix’s commitment to provide more home-based services for all patients as delivering care at home becomes the new norm,” John Driscoll, CareCentrix CEO.
Turn-Key Health was advised by Evercore and Latham & Watkins. CareCentrix was advised by Nelson Mullins Riley & Scarborough and Sloane & Company.
Sonoma Brands, an emerging brand private equity investor and incubator, completed the acquisition of KRAVE, a producer of gourmet meat, poultry and now plant-based protein snacks, from The Hershey Company, a manufacturer of chocolate, sweets, mints and other great-tasting snacks. Financial terms were not disclosed.
“I have always had a great relationship with The Hershey Company and watched them grow KRAVE. From expanding KRAVE’s product offerings to dipping into the plant-based category and increasing worldwide distribution, KRAVE is in a great spot to come back home to Sonoma where we can continue the brand's fantastic momentum as a category leader,” Jon Sebastiani, Sonoma Brands Founder and Managing Partner.
Sonoma was advised by Konnect Agency.
Change Healthcare, an independent healthcare technology company that provides data and analytics-driven solutions, completed the acquisition of eRx Network, a provider of comprehensive, innovative and secure data-driven solutions for pharmacies, for $213m.
“Bringing eRx back into the fold will enable us to leverage our combined scale, breadth of solutions, and network capabilities to increase market penetration, advance innovation, and create new opportunities. As a leader in delivering advanced technology solutions for pharmacies, providers, and pharmaceutical companies, eRx aligns with our strategy to reduce costs, improve outcomes, and enhance consumer engagement for our customers,” Neil de Crescenzo, Change Healthcare President and CEO.
Insight Partners-backed ComplianceQuest, which develops cloud-based compliance and quality management software products, completed the acquisition of LifeGuard Solutions, a Salesforce native Environmental, Health & Safety solution provider. Financial terms were not disclosed.
"An EHS solution built on the Salesforce Platform is a natural extension of our leading quality management system. With the integrated offering of HSEQ (EHS and EQMS) solution suites built with the Salesforce platform, we now have a unique offering that brings to the market a scalable, flexible, future-proofed enterprise-ready system that is world-class," Prashanth Rajendran, ComplianceQuest CEO.
PointCentral, a subsidiary of Alarm.com, which provides short and long-term residential property managers with a full suite of smart property solutions, completed the acquisition of Doorport, a provider of innovative smart intercom solution. Financial terms were not disclosed.
“Property managers and residents alike want a seamless curb-to-couch solution that conveniently and securely manages front door access for guests as well as service and package delivery. Doorport allows us to provide a complete range of solutions in a well-integrated comprehensive product suite. A key strength of the PointCentral open platform is our third-party integrations that give property managers choice. While we see Doorport as a best-in-class solution, especially for retrofits, we will continue to invest in our ecosystem integrations with other smart intercom solutions,” Sean Miller, PointCentral President.
Mirae Asset terminates the $5.8bn acquisition of US hotels from Anbang. (RE)
South Korea's Mirae Asset Global Investments terminated the $5.8bn deal to acquire 15 US Hotels from China-based Anbang, Reuters reported. The acquirer claims Anbang did not hold onto its part of the contractual obligations.
Anbang had to sell some of its overseas assets due to the difficult financial situation of the company. Hotels that were supposed to be acquired are located in New York, San Francisco and Los Angeles. Dajia Insurance Group claims that the termination of the contract is unlawful and should not be permitted. Mirae Asset also announced the litigation suit against it filed by Anbang.
"Among other things, AnBang had failed to timely disclose and discharge various material encumbrances and liabilities impairing the Hotels and failed to continue the operation of the Hotels in accordance with contractual requirements," Mirae Asset.
FT reported that Cinven and Advent, the private equity firms behind the planned €17.2bn ($18.8bn) acquisition of Thyssenkrupp’s lifts business, are searching for other investors to help them pay for Europe’s biggest buyout deal in a decade.
The two groups are seeking to pull in additional equity to reduce their own exposure to the deal. They have spoken to investors including Canadian rival Brookfield, which was earlier defeated in the multi-month auction for the lifts division, and the Canada Pension Plan Investment Board.
Cinven and Advent are advised by Ernst & Young, Rothschild & Co, UBS, Kirkland & Ellis, NautaDutilh and Hering Schuppener. Thyssenkrupp is advised by Deutsche Bank, Goldman Sachs, JP Morgan, Macquarie Group, Nomura and Linklaters.
Private equity firm Ardian completed the acquisition of a minority stake in Argon & Co, the global management consultancy that specializes in operations strategy and transformation. Financial terms were not disclosed.
"The arrival of Ardian as a minority shareholder consolidates our development strategy. Operations management has never been so critical for our clients who are facing very short-term business recovery issues, and also issues of competitiveness and resilience of their operations, all in a context of environmental sustainability. We are applying all our expertise on these subjects alongside them to meet these challenges," Yvan Salamon, Argon & Co CEO.
Argon was advised by Oderis, Rothschild & Co, Jeausserand Audouard and Paul Hastings. Ardian was advised by KPMG and McDermott Will & Emery. Debt financing was provided by LCL, which was advised by Hogan Lovells.
Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, completed the acquisition of SiPM, a provider of high-impact e-learning solutions for blue-chip corporations worldwide. Financial terms were not disclosed.
"We welcome LLCP's extensive experience in corporate education and training, along with its proven track record of supporting entrepreneurs. We are very excited about this next step in the development of our Company and look forward to continuing our mission to provide clients with best-in-class, personalized training programs," David Rajakovich, SiPM Managing Director Operations.
SiPM was advised by Lincoln International, Pricewaterhousecoopers and Stibbe. LLCP was advised by KPMG, NautaDutilh, Deloitte and Kekst CNC.
Reuters reported that Europe’s biggest copper smelter Aurubis won European Union antitrust approval for its planned $424m acquisition of Belgian-Spanish metal recycling group Metallo.
The Commission said in a statement that “the merger would not adversely affect competition” in the copper recycling sector.
Metallo is advised by Houlihan Lokey. Aurubis is advised by BNP Paribas and Freshfields Bruckhaus Deringer. TowerBrook is advised by Loyens & Loeff, Sidley Austin and Brunswick Group.
Elisa Automate, a Finland-based provider of network automation solutions, completed the merger with Polystar, a global supplier of analytics, assurance and monitoring solutions for mobile operators, in a $85m deal.
"The convergence of our businesses means that customers and partners will benefit from a broader, richer solution suite, based on advanced Machine Learning algorithms, adapted to tackle the challenges of the next decade in the evolution of communications networks," Kirsi Valtari, Elisa Automate Executive Vice President.
Duff & Phelps, a global advisor company, completed the acquisition of Lucid Issuer Services, Lucid Agency and Trustee Services and Fluyd, Europe’s providers of securities solicitation and loan and bond services solutions. Financial terms were not disclosed.
“With this transaction, we are able to provide clients with best in class global restructuring, loan and bond agency, and trustee solutions. This transaction marks an important step in expanding the Business Services division’s geographic footprint and the comprehensive set of services that we offer to our clients. I look forward to further expanding our practice and our continued success now that the Lucid Companies are part of the Duff & Phelps family,” Shai Y. Waisman, Duff & Phelps Global Head of Business Services.
Pendragon is no longer interested in a merger with Lookers.
Pendragon, a British auto retailer, will not be pursuing the merger with rival Lookers after the latter rejected its approach. The pandemic drove many auto retailers into bankruptcy following harsh regulatory conditions brought by Brexit, reducing demand and increasing costs. The company previously struggled with decreasing profits and the departure of CEO and COO at the end of 2019.
Lookers' operating divisions are being investigated for fraud after a probe found errors in its balance sheet and fraudulent expense claims. Lookers' share price dropped by more than 50% as of Friday's close. Pendragon's stocks also took a significant hit, losing approximately 37% of its value during the period.
Intel considers acquisition of Moovit public transit app for $1bn.
Intel is in advanced talks to acquire Israel's Moovit, a free mobile navigation app, for $1bn, Reuters reported. The deal is reportedly close to being disclosed. Moovit previously gathered $133m from Intel, BMW iVentures and Sequoia Capital.
Intel was relatively active with its investments in Israel, acquiring Mobileye, an autonomous vehicle technology provider, for $15.3bn. In December 2019 Intel bought Habana Labs, an artificial intelligence firm, for $2bn.
A consortium of former Stewart Investors and Fidelity International employees launched a new funds boutique. (FS)
A team consisting of seven former analysts and portfolio managers at investment firms Stewart Investors and Fidelity International launched a new funds boutique promising responsible investments in emerging markets, Financial News reported.
The newly established venture is called Aikya Investment Management. Ashish Swarup, a lead portfolio manager on a range of emerging-markets at Stewart Investors, and his co-manager Tom Allen are taking their partnership to the new firm.
They will be accompanied by Stewart colleagues Alan Nesbit, Michael Summers and Alex Khosla, Trevor Fung, a senior analyst at Income Partners Asset Management, and Rahul Desai, a portfolio manager of Fidelity International's Emerging Markets All Cap Strategy.
Verso Capital launches new $110m fund. (FS)
Verso Capital, a growth stage buyout investor with focused on carve-out situations, launched a $110m sector agnostic fund called Verso Fund III. Verso Fund III has already attracted such investors as KRR III, Tesi, pension funds Ilmarinen, Varma and Elo, as well as Nokia, Valeado and Etrisk, with $72m in total commitments.
Target buyout value ranges from $5m to $55m and will focus on distressed businesses. Verso Fund III's goal is to source enterprises that could be run as a separate company, including non-core businesses inside larger firms and companies whose potential cant fully bloom with current owners.
HSBC hires Jacques Callaghan as head of UK M&A team. (People)
Financial News reported that HSBC hired a senior investment banker from Macquarie to lead its coverage of mid-market companies, a core element of its strategy to gain more mergers and acquisitions work.
The UK lender named Jacques Callaghan as head of UK mid-market M&A, the first appointment to a new team that will eventually number around 20 bankers.
Citigroup names Richard Aby as new Eastern European trading head. (People)
Financial News reported that Citigroup named a new leader of its sales and trading unit in Central and Eastern Europe, the latest changes at the top in is markets business on the continent.
The US bank named Richard Aby as head of central and eastern Europe, the Middle East and Africa markets. The appointment follows the promotion of Fabio Lisanti to lead its sales and trading unit in Western Europe and Miguel Gabian as head of its sales and trading business in Spain and Portugal in February.
APAC
Chinese multinational conglomerate holding company Tencent completed the acquisition of a 5% stake in Afterpay, an Australian financial technology company, for $252m.
"We are pleased to become investors in Afterpay. Inside China we operate the leading digital payment service and a rapidly growing FinTech platform, and outside China we have actively invested in pioneering FinTech companies, providing us with unique insights into emerging FinTech services. Afterpay's approach stands out to us not just for its attractive business model characteristics, but also because its service aligns so well with consumer trends we see developing globally in terms of Afterpay's customer-centric, interest-free approach as well as its integrated retail presence and ability to add significant value for its merchant base. We look forward to a deep and long-term business partnership between Tencent and Afterpay," James Mitchell, Tencent Chief Strategy Officer.
HSBC agreed to acquire the remaining 50% stake in HSBC Life Insurance Company, its life insurance joint venture in China, from The National Trust. Financial terms were not disclosed.
"Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy. This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group," Noel Quinn, HSBC CEO.
IHS Markit, a global information provider, completed the acquisition of Catena Technologies, which specializes in architecture, design, and delivery of advanced technology solutions for the financial services industry. Financial terms were not disclosed.
"As part of IHS Markit, we will be able to offer customers a seamless, single-vendor solution that integrates transaction reporting with other post-trade and compliance workflows. This capability will enable customers to streamline their trade-reporting processes, reduce costs, and focus on strategic initiatives," Aaron Hallmark, Catena CEO.
CLSA Capital Partners, the asset management business of CLSA, completed the acquisition of Earth Technology, a bilingual IT services provider in Japan. Financial terms were not disclosed.
Sunrise III, a Japan-dedicated private equity strategy of CLSA, will assist in achieving further growth by providing support to the company on various aspects of the business such as streamlining and enhancing the organisational framework, strengthening sales capabilities, assisting in the recruiting processes and enhancing its branding strategy.
Blackstone's discussions to invest in Soho China put on hold. (FS)
Blackstone Group's discussions about investing in Soho China, a Chinese property developer, have been put on hold due to uncertainty caused by the outbreak, Bloomberg reported.
A rational assessment of Soho China's business prospects is reportedly tricky given the global market slump. Recent problems in the debt market raised concerns about funding the deal. The negotiations are expected to continue once the markets become more stabilized.
Soho China stock price dropped by 28.4% on Monday, the most significant decline in the company's history. Despite the failed negotiations, Soho China is exploring other overseas investors.
Silver Lake takes a 1% stake in Jio Platforms. (FS)
WSJ reported that private-equity firm Silver Lake struck a deal to invest $750m in Indian telecommunications and technology giant Jio Platforms, taking a 1.15% stake.
The deal comes less than two weeks after Facebook said it would pay $5.7bn for a nearly 10% stake in Jio, a subsidiary of Indian conglomerate Reliance Industries.
Reliance was advised by Davis Pols & Wardell.
Nongfu Spring plans $1bn IPO in Hong Kong.
Nongfu Spring, a Chinese bottled water manufacturer, speeds up to launch its IPO that could reach a $1bn mark, DealStreetAsia reported. The IPO launch is expected to take place in the third quarter.
"During the Covid-19 outbreak, our sales of beverage products decreased compared to the same period in 2019. According to the information currently available, our revenue and net profit decreased in the three months ended March 31, 2020, compared with the three months ended March 31, 2019," Nongfu Spring.
SinoHytec intends to raise $170m in its STAR IPO.
SinoHytec, a fuel cell engines manufacturer, is planning to raise $170m in its Shanghai Stock Exchange IPO filed in July 2019, which got approved previous week.
The proceeds will be used to invest in R&D, improve production and refill $71m in reserves used to cover costs.
|
