AMERICAS
Centene, a multi-line managed care enterprise that serves as a primary intermediary for both government-sponsored and privately insured health care programs, completed the acquisition of WellCare Health Plans, which provides managed care health plans primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug plans, for $17.3bn.
"We are pleased to have completed this transformational acquisition to create a leading healthcare enterprise committed to helping people live healthier lives through access to high-quality and affordable healthcare solutions. Through the integration planning process, it has become even more apparent that our goals, cultures, and values are aligned. Centene is committed to building on our mission to further improve the health of the communities we serve. We look forward to Centene's next chapter, where we will continue to drive growth and create value for shareholders," Michael F. Neidorff, Centene's Chairman, President, and Chief Executive Officer.
WellCare was advised by Goldman Sachs, Kirkland & Ellis, Locke Lord, Cleary Gottlieb Steen & Hamilton and Sard Verbinnen. Centene was advised by Morrow Sodali Global, Allen & Company, Barclays, Evercore, JP Morgan, Skadden Arps Slate Meagher & Flom, and Joele Frank. Debt financing was provided by Barclays. Barclays was advised by Cravath Swaine & Moore.
Palladium Equity Partners, a private equity firm, completed the acquisition of Accupac, a provider of outsourced manufacturing and packaging solutions for the personal care and beauty markets from J.H. Whitney Capital Partners, a venture capital firm. Financial terms were not disclosed.
"We look forward to partnering with the Accupac team and supporting the company's continued growth. We believe the company is uniquely positioned with opportunities to deepen its relationships with existing customers, penetrate new accounts through its unique innovation capabilities, develop new products, and drive growth in adjacent categories both organically and through M&A. We believe Accupac is a best-in-class operator in its space and we are excited to work with management to continue to drive the business," Caleb Clark, Palladium Partner.
Accupac was advised by Lincoln International and Gibson Dunn & Crutcher. Palladium Equity was advised by Houlihan Lokey, Greenberg Traurig, and Kekst CNC.
Minute Media, a global technology and digital publishing platform completed the acquisition of FanSided, a platform of sports and lifestyle digital properties, from Meredith, a media publishing company. Financial terms were not disclosed.
"FanSided's approach to community and fandom is a perfect complement to Minute Media's existing properties. FanSided, combined with The Players' Tribune's athlete-perspective, provides our readers, partners, and advertisers with what we believe to be the most well-rounded and holistic sports digital offering. We are excited to welcome the FanSided team to the Minute Media family," Asaf Peled, Minute Media Founder and CEO.
Minute Media was advised by Herzog Fox & Neeman and Seyfarth Shaw. Meredith was advised by Fifth Generation Sports, Houlihan Lokey, and Cooley.
Anika Therapeutics, a global, integrated joint preservation, and regenerative therapies company, completed the acquisition of Parcus Medical and Arthrosurface, two medicine companies, for $170m, including $75m in contingent considerations.
“This acquisition immediately adds a diverse base of high-growth revenue and will help us achieve the objectives we set forth in our five-year strategic plan. We can now turn our attention to executing our integration plan and continuing to transform Anika into a leading global sport and regenerative medicine company,” Joseph Darling, Anika Therapeutics President, and Chief Executive Officer.
Anika Therapeutics was advised by SVB Leerink, Sullivan & Cromwell, and W2O Group.
Colgate-Palmolive, a global consumer products company, is set to acquire Hello Oral Care, a premium oral care brand, from Tenth Avenue Holdings, a diversified holding company. Financial terms were not disclosed.
“We are excited to welcome Hello to the Colgate family and are especially pleased that Craig and Lauri will continue in their leadership roles. We have great respect for the Hello team and their impressive product line, and value the strong connection they have made with younger consumers. With its distinct on-trend positioning, Hello is a terrific complement to our Colgate and Tom’s of Maine brands and we look forward to supporting its continued growth and success,” Noel Wallace, Colgate President, and CEO.
Hello is advised by Piper Sandler and Zukerman Gore Brandeis & Crossman. Colgate-Palmolive is advised by Wachtell Lipton Rosen & Katz.
Coca-Cola Brasil filed a motion in a Brazilian court to annul Heineken's 2017 acquisition of Brasil Kirin, Reuters reported.
Coca-Cola accused the Dutch brewer of designing a sale contract for Brasil Kirin with the intention of breaking the distribution contract the company had with Coca Cola. Heineken tried to break the contract in 2017, but Coca-Cola distributors began arbitration.
Heineken was advised by Davis Polk & Wardwell. Kirin Holdings was advised by Allen & Overy.
Smith+Nephew, a medical technology company, completed the acquisition of Tusker Medical, a manufacturer of ear tubes. Financial terms were not disclosed.
"I am immensely proud of the pediatric-focused technology that we have developed. Smith+Nephew is well-placed to accelerate and broaden the launch of Tula, and we look forward to working together to improve the quality of life of the millions of children who suffer from ear infections every year," Amir Abolfathi, Tusker President and CEO.
Smith + Nephew was advised by Brunswick Group.
Thoma Bravo-backed Cority Software, an environmental, health, safety, and quality software provider, agreed to acquire Enviance, an environmental, chemical management, sustainability, and ergonomics software provider. Financial terms were not disclosed.
"We are delighted to welcome the valued clients and talented employees of Enviance to the Cority family. The functional strengths of Enviance and Cority are highly complementary. Moreover, both our companies stand for technology innovation and a relentless focus on customer satisfaction. Our SaaS solutions currently serve global organizations across EHS and Quality, and now, our clients will benefit from even more industry-leading capabilities," Mark Wallace, Cority President, and CEO.
Enviance is advised by Houlihan Lokey.
Daxko, a comprehensive technology and payment solutions provider, agreed to acquire PlayerSpace, a sports program management technology provider. Financial terms were not disclosed.
"We're thrilled to start the new year with PlayerSpace joining the Daxko family of brands. Our vision at Daxko is to power health and wellness throughout the world. PlayerSpace supports that vision by facilitating safe and engaging youth programming like sports, camps, swimming, gymnastics, and more to their communities," Ron Lamb, Daxko's CEO.
Platinum Equity closes its $10bn fund. (FS)
Platinum Equity closed its $10bn flagship private equity fund, focused on complex transactions utilizing the firm's highly specialized M&A&O approach.
"We have great momentum, with a well-oiled investment machine built on discipline, urgency and a relentless focus on execution, and fueled by the capital resources to pursue complex transactions anywhere in the world," Tom Gores, Platinum Equity Chairman, and CEO.
AEA considers $2bn divestment of 1-800 Contacts. (FS)
AEA Investors, a private equity firm, explores a divestment of 1-800 Contacts that could value the US contact lens retailer at more than $2bn, including debt, Reuters reported.
AEA hired Goldman Sachs to manage the process.
Sequoia Capital to float a fund with a $1.25bn corpus. (FS)
Sequoia Capital, a Silicon Valley venture capital firm, is set to float its largest India-focused fund with a corpus of about $1.25bn, DealStreetAsia reported.
The move comes as Sequoia is set to hold an annual global meeting of its limited partners in India for the first time as it continues to be bullish on the country's thriving startup ecosystem. Till now, such meetings were held in the US and China. Over time, India has become a key and promising market for Sequoia, both in terms of investments and returns.
George Soros invests $1bn in a new educational network.
George Soros, a Hungarian-American investor, and philanthropist, allocated $1bn to fund a loose network of universities around the world to help educate young people and promote "personal autonomy," FN reported.
Soros, 89 years old, used his annual dinner and speech at the World Economic Forum to announce the initiative, calling it the most important one of his life. He asked other philanthropists to contribute.
HIG plans spinoff of Inmate Calling Solutions. (FS)
HIG Capital is taking another cut at disposing of Inmate Calling Solutions after regulators stopped its attempt to divest the prison phone operator to one of its main rivals last year, Bloomberg reported.
TKC Holdings, the provider of food and commissary services through which HIG owns ICS, seeks approval from creditors to spin off the business as part of a management buyout.
Simon Property and Authentic Brands consider acquiring Forever 21.
Mall owner Simon Property Group is considering a bid to acquire Forever 21, a bankrupt teen retailer, Bloomberg reported. Simon would pair with Authentic Brands Group to acquire and manage the stores and the brand. The talks are continuing, and there's no guarantee that the various sides will agree on terms or that a sale will occur.
Vicentin in takeover talks with firms, including Glencore.
Argentina's top exporter of processed soy, Vicentin, is in talks over a potential takeover deal with firms including Glencore, a European grains giant, to help resolve a debt crisis, Reuters reported.
The nearly 90-year-old firm, which defaulted on payments to suppliers late last year, told grain farmers it owes money to that it will make a debt restructuring offer in the days ahead.
Jamf Software files confidentially for IPO. (FS)
Jamf Software, which makes tools for enterprises to manage Apple devices, filed confidentially for an IPO, Bloomberg reported.
Jamf, backed by the buyout firm Vista Equity Partners, will seek to be valued at about $3bn in the listing.
Lundin Gold is looking to expand through acquisitions.
Lundin Gold, a gold mining company, is considering expansion at a time when bullion prices are hovering near a seven-year high. The rally has bolstered the case for acquisitions in an industry that has seen years of underinvestment, resulting in a declining global production outlook, Bloomberg reported.
Newcrest Mining, the company's largest shareholder, is supportive of a potential acquisition, as is the Lundin family.
"The challenge for us is going to be finding something that's accretive for our shareholders," Ron Hochstein, Lundin Gold CEO.
Affinity Gaming divested its casino properties to Twin River Worldwide for $51m. (RE)
Affinity Gaming, an American private casino operator, divested its casino properties to Twin River Worldwide, a gaming company, for $51m.
"We are pleased to complete the sale of these three casino properties as we sharpen our focus on Affinity's other key markets in Nevada and the Midwest. We remain committed to driving sustainable, long-term growth, while further enhancing Affinity as a local casino leader by continually improving the customer and guest experience at our properties," Mary Beth Higgins, Affinity Gaming CEO.
John Stumpf banned from banking, fined $17m. (People)
John Stumpf, former Wells Fargo chief executive, has been banned from the banking industry and forced to pay $17m in fines for failing to prevent the creation of fake accounts at the bank.
Stumpf's settlement was one of several actions the Office of the Comptroller of the Currency. The misconduct, discovered in 2016, dated back to 2002, involved the creation of fraudulent savings and checking accounts, FN reported.
EMEA
AMS shareholders approved the $1.9bn capital increase to fund the Osram takeover, bringing the Austrian group closer to its goal of forming a European leader in sensors and lights.
AMS secured nearly 60% stake in Osram last month, taking on the debt of $4.9bn to finance the deal.
Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
WEX, a financial technology service provider, is set to acquire eNett International, a provider of B2B payments solutions to the travel industry, and Optal, a company that specializes in optimizing B2B transactions, from private equity firms Siris Capital Group and Elliot Management for $1.7bn including approximately $1.3bn in cash and approximately 2m shares of WEX common stock.
“We are pleased to be joining forces with WEX to offer leading travel companies globally an enhanced and unrivaled suite of innovative payment solutions. We look forward to working with the WEX team to successfully integrate our complementary assets, including our technology, products, and most importantly, our people,” Anthony Hynes, eNett Managing Director and CEO.
Optal is advised by Financial Technology Partners and Herbert Smith Freehills. eNett is advised by Credit Suisse, LionTree Advisors, and Wachtell Lipton Rosen & Katz. WEX is advised by Bank of America Merrill Lynch, Grant Samuel, Sullivan & Cromwell, Clifford Chance, and Wilmer Hale.
Polska Grupa Lotnicza, the owner and operator of LOT Polish Airlines, is set to acquire Condor, a German airline operator. Financial terms were not disclosed.
"The acquisition of Condor fits perfectly into PGL’s strategy. It also secures the future of Condor and offers stability and great opportunities to its employees, customers and business partners. We want to develop Condor’s iconic brand in Germany and also introduce it to other markets in Europe. We wholeheartedly welcome all Condor employees to the PGL family and invite them to build together one of the greatest aviation groups in Europe,” Rafał Milczarski, PGL President of the Management Board.
Condor is advised by Rothschild & Co and Noerr. PGL is advised by Lazard, Pekao, and White & Case.
Petrus Advisors, a London-based activist hedge fund squeezed a 14% premium from Commerzbank in the sale of its stake in online lender Comdirect to the German bank, FT reported.
The move, which came after Petrus Advisers agreed to drop a lawsuit against Comdirect, is likely to provoke an angry reaction from its other minority shareholders, which were offered a significantly lower price by Commerzbank when it attempted to buy them out in December.
Commerzbank is advised by Hengeler Mueller and FTI Consulting.
The Carlyle Group-backed StandardAero, a provider of aftermarket engine maintenance, repair, and overhaul services for the aerospace and defense industries, completed the acquisition of TRS Ireland, a highly specialized provider of component repair and manufacturing processes for a large range of industrial, aero-derivative and aircraft gas turbines, from Tuckerman Capital, a private equity firm. Financial terms were not disclosed.
“TRS Ireland has a long-standing, hard-earned reputation in the industry as a reliable service partner and will bring immediate growth and opportunity for StandardAero. The company has also been extremely successful in implementing lean manufacturing initiatives to drive efficiency, which is very much in line with StandardAero’s operating model,” Russell Ford, StandardAero Chairman, and CEO.
TRS Global Services was advised by Alantra.
Swiss insurer Helvetia is set to acquire a 70% stake in Spanish insurer Caser for $861m.
"The acquisition of Caser perfectly fits Helvetia’s strategy. Our business in Spain has performed very well in recent years and will now be strengthened further by this transaction, which will also substantially increase the importance of our European activities. Both companies complement each other outstandingly, including from a cultural perspective," Philipp Gmuer, Helvetia CEO.
Saudi wealth fund in talks to buy Newcastle United for $455m. (FS)
Saudi Arabia's sovereign wealth fund is in discussions to acquire English Premier League football club Newcastle United for c. £350m ($455m), becoming the latest Middle Eastern investor to seek entry into the world's most popular sport, FT reported.
Amanda Staveley, a British financier, is brokering the deal, with almost all of the funding coming from the Public Investment Fund, controlled by Saudi crown prince Mohammed bin Salman.
The club is owned by Mike Ashley, UK retail magnate, who was asking £400m ($520m) from potential buyers earlier this month.
Advent and Partners Group consider bids for Pepco Group. (FS)
Steinhoff International's European retail unit, which runs the Pepco and Poundland discount chains, is attracting interest from buyout firms, Bloomberg reported.
Advent International and Partners Group are among private equity firms considering bids for Pepco Group. Steinhoff has been weighing interest from potential buyers alongside its preparations for an IPO.
Steinhoff is seeking to value Pepco Group at more than $4.4bn in any sale. No final decisions have been made, and there's no certainty the buyout firms will proceed with formal offers.
BayWa considers divesting renewables stake to Credit Suisse.
BayWa, a German agriculture group, is in talks with Credit Suisse over the sale of a minority stake in its renewables business for a potential value of $2.2bn, including debt, Reuters reported.
The deal is expected to give the unit an equity value of about $1.1bn and would be the latest addition to Credit Suisse's growing portfolio of renewable assets in Europe.
Axa reviews options for Middle Eastern operations.
Axa considers options for its Middle Eastern operations, including a potential sale, as CEO Thomas Buberl continues to streamline the operations of Europe's second-largest insurer, Bloomberg reported.
The French insurer is working with HSBC on the strategic review. Axa hasn't yet kicked off a formal sale process.
Volkswagen divestment of Renk and MAN Energy Solutions depends on the buyer.
Workers' approval of a possible divestment of Volkswagen's transmissions making unit Renk and MAN Energy Solutions depends on who the new owner will be, Volkswagen labor chief stated.
“If there is a decent buyer, if there is a fit, the labor representatives in the supervisory board will not oppose a sale,” Bernd Osterloh, Volkswagen Head of work council.
Greece to divest troubled nickel producer Larco's assets.
Greece plans to liquidate Larco, one of Europe's biggest nickel producers, which is struggling under substantial debt, and then look for an investor for some of the company's assets, Reuters reported.
The European Commission stated it was taking Greece to the European Court of Justice over its failure to recover $151m of illegal state aid to Larco.
"Larco is the most troubled company in Greece right now, and the situation has been dragging on for 35 years," Kostis Hatzidakis, Greece Energy Minister.
Heidelpay seeks acquisitions. (FS)
Heidelpay, a German fintech company, seeks acquisitions and eyes an eventual IPO, Reuters reported.
PGNiG eyes energy sector acquisitions.
Poland’s dominant gas firm PGNiG is interested in acquisitions in the energy sector, Reuters reported.
“We want to be a multi-energy champion in the region. We can cooperate with all companies. It can also be takeovers, above all, we will focus on the energy sector,” Jerzy Kwiecinski, PGNiG CEO.
Thyssenkrupp to kick-off sale of the plant building unit.
Ailing German conglomerate Thyssenkrupp is planning to kick off the auction for its plant-building unit soon, Reuters reported.
First information packages on Plant Technology, which builds cement, fertilizer, and chemical plants, could be sent out as soon as next week or in February. The unit may end up being sold off in parts to several buyers.
Amethis is set to acquire a 30% stake in Kenyan retailer Naivas.
France's Amethis is near to closing the purchase of a stake in Naivas, a Kenyan general retailer, Reuters reported.
“Amethis first reached out to Naivas over a year ago and will be the first external investor in Naivas,” Naivas.
Hg plans to raise $4bn for the next fund. (FS)
Hg, a European private equity firm, plans to raise its biggest-ever pool of capital, as it prepares to seek c. $4bn for a new buyout fund, Bloomberg reported.
The investment firm is making early preparations for the fund, known as Saturn 2. It will target larger companies valued at more than $1.3bn, including debt.
Axel Springer considers delisting from the Frankfurt stock exchange. (FS)
Springer said that once private, it hopes to gain greater freedom to build its digital portfolio and look for acquisitions away from the eye of skeptical equity markets.
“Axel Springer plans to withdraw from the stock exchange. A respective application will be made at the Frankfurt Stock Exchange,” Axel Springer.
Finablr shares fall after the reveal of stock pledge for Travelex deal.
Finablr, the financial services group that owns Travelex, dropped more than a quarter of its value on Friday after it emerged that more than half of its stock had been used by BR Shetty, majority owner and billionaire, as security against debt from buying the British currency platform in 2015, FT reported.
The disclosure will increase scrutiny on the United Arab Emirates-based business empire run by Mr. Shetty.
FCA selected Christopher Woolard as Interim Chief Executive. (People)
Christopher Woolard, the director of strategy and competition at the Financial Conduct Authority, has been named interim chief executive of the UK market regulator, FN reported.
He takes on the responsibilities of Andrew Bailey, who is set to become the next governor of the Bank of England.
APAC
Sohu Group, a Chinese internet company, agreed to merge with Changyou, an online game operator for $579m. The merger is currently expected to close in the second quarter of 2020. If completed, the merger will result in Changyou becoming a privately‑owned company wholly owned directly and indirectly by Sohu.
Changyou is advised by Houlihan Lokey and Skadden Arps Slate Meagher & Flom. Sohu Group is advised by China Renaissance Securities, Conyers Dill & Pearman, Goulston & Storrs, Han Kun Law Offices, PRC Legal Counsel, and Christensen IR. Debt financing is provided by Bank of China.
Japanese road paving company Maeda Road Construction opposed the $786m tender offer by its top shareholder Maeda, turning the proposal into a hostile bid.
“We are opposed to the tender offer by Maeda. Becoming a consolidated subsidiary of Maeda would hurt our corporate value and prevent our sustainable growth," Maeda Road.
Maeda is advised by Daiwa Securities.
Siemens, a German multinational conglomerate is set to acquire a 99% stake in C&S Electric, a provider of electrical and electronic equipment for infrastructure, power generation, transmission and distribution, for $295m.
“The addition of C&S Electric’s products, sales network, manufacturing units, and a highly competent employee base will complement and strengthen the range of Siemens’ offering. This will bolster our portfolio not only in India but also for export to competitive international markets in line with our growth strategy,” Sunil Mathur, Siemens Managing Director, and CEO.
Singapore Exchange agreed to acquire a 93% stake in Scientific Beta, an independent index provider, for $206m.
“The acquisition of Scientific Beta marks an important step in the evolution of our index business. Scientific Beta brings a highly regarded research pedigree in the rapidly growing smart beta space, along with a strong suite of high-profile clients in the US and Europe. Besides being complementary to our existing SGX Index Edge thematic and custom index capabilities, we also see new product opportunities based on Scientific Beta’s indices,” Loh Boon Chye, SGX CEO.
Edelweiss, an investment and financial services company, through its Edelweiss Infrastructure Yield Plus fund, agreed to acquire a 74% stake in Engie's Solar Business in India. Financial terms were not disclosed.
“The completion of this transaction, subject to the usual conditions associated with this type of operation, is expected to occur during the first half of 2020 and will allow Engie to reduce its net debt by more than $443m," Engie.
Mastercard, a provider of payment processing services, agreed to invest in Pine Labs, a merchant commerce platform. Financial terms were not disclosed.
“This relationship is a great validation of the top-quality products that Pine Labs delivers to merchants. Together, we have a unique opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond,” Lokvir Kapoor, Pine Labs Founder, and Chairman.
Chevron considers divesting a stake in the Indonesian Deepwater Development project.
Chevron, a US oil giant, is considering divesting its participating interest in the Indonesian Deepwater Development gas project, as it makes sweeping changes to cut costs and streamline operations, Reuters reported. In December the company was considering selling some natural gas projects to prepare for low prices in the long term.
Lion Air to test investor appetite for stock market listing.
Indonesia's Lion Air is launching a pre-marketing drive next week for a potential public float, as the airline attempts to win over investors more than a year following the fatal crash of one of its Boeing 737 MAX jets, Reuters reported.
The carrier, one of Asia's largest budget carriers with 112 planes, will start investor presentations next week in Jakarta, followed by Singapore, Hong Kong and cities in Europe and the United States.
Toshiba Machine to seek shareholders' approval for takeover defense.
Japan’s Toshiba Machine stated it would seek shareholders’ approval if it decides to adopt defense measures against a hostile takeover, agreeing to demand from a prominent activist investor targeting the molding machine company, Reuters reported.
The former Toshiba unit has threatened to implement a “poison-pill” defense as investor Yoshiaki Murakami launched a hostile bid of up to $235m for control of the company.
CBC eyes more listings after Chinese firm I-Mab's debut in the US. (FS)
CBC Group, a private equity firm focused on the health-care industry, is preparing more of its portfolio companies for the capital markets on the back of growing investor demand, DealStreetAsia reported.
Chinese drug developer I-Mab raised $104m in an IPO in the US this month, and the stock has since risen about 8%. Singapore-based CBC Group, which manages more than $2bn, is one of the early investors in I-Mab.
"We have a strong portfolio of companies across our three core health-care sectors: pharma, medtech, and services, many of which are progressing well. Looking at the year ahead, we expect to see more capital market activities," Fu Wei, CBC Group Founder, and CEO.
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