AMERICAS
Chevron, an integrated energy company, completed the acquisition of Noble Energy, an independent oil and natural gas exploration and production company, for $13bn in an all-stock deal.
“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits. With an industry-leading balance sheet and a track record of capital discipline, we believe we’re in a different place than others and can protect the dividend while driving long-term value,” Michael Wirth, Chevron Chairman and CEO.
Noble Energy was advised by JP Morgan, Vinson & Elkins, and Joele Frank. JP Morgan was advised by Simpson Thacher & Bartlett. Chevron was advised by Credit Suisse, Alston & Bird, Paul Weiss Rifkind Wharton & Garrison, and Shearman & Sterling.
Two exploration companies, Auryn Resources and Eastmain Resources, announced that securityholders of both companies voted to approve their respective plans of arrangement pursuant to which Auryn will spin out its Peruvian assets and immediately thereafter acquire Eastmain.
“On behalf of the board and team at Auryn, I would like to thank all our securityholders for support of our plan to create three significant opportunities to unlock considerable value across our portfolio of high-quality projects. The three companies will offer premier growth and exploration opportunities in gold, copper and silver as we head into a robust commodity market,” Ivan Bebek, Auryn Executive Chairman & Director.
Eastmain is advised by Maxit Capital and Cassels Brock & Blackwell. Auryn is advised by Minvisory, Stifel, Blake Cassels & Graydon and McMillan.
Avantus Aerospace, a provider of C-Class and composite parts for the aerospace and defence industries, agreed to acquire California Screw Products, a manufacturer of fasteners for commercial and military aerospace applications. Financial terms were not disclosed.
"The CalScrew team is known for taking care of their customers and we are excited about dovetailing their unique fasteners into our expanding product line-up. Our combined strength allows Avantus to continue offering a diverse range of high-quality products with exceptional customer service," Brian Williams, Avantus CEO.
Avantus Aerospace is advised by CDS, Grant Thornton, KPMG and Goodwin Procter.
Select Rehabilitation, a provider of physical, occupational and speech therapy services, agreed to acquire RehabCare business of Kindred Healthcare, a healthcare services company based in Louisville, Kentucky. Financial terms were not disclosed.
“Select’s exclusive focus on contract rehabilitation makes it an ideal partner to build upon RehabCare’s patient- and client-centric approach. Select shares many of our core values and is led by a senior management team whose number one priority is doing what is best for the patients entrusted to their care. Together, Select and RehabCare will be poised to enhance the quality and breadth of their services to customers and to bring new professional and growth opportunities for our RehabCare team members,” Benjamin A. Breier, Kindred President and Chief Executive Officer.
Kindred Healthcare is advised by Guggenheim Partners and Debevoise & Plimpton.
The Universities Superannuation Pension Fund, a pension fund for the Higher Education sector in the United Kingdom, and Alinda Capital Partners, an American private equity firm, agreed to acquire PECO Pallet, a provider of pooled rental pallets and services to the foodservice, grocery and consumer products industries. Financial terms were not disclosed.
“PECO is an excellent fit with USS’s investment philosophy of acquiring resilient businesses with a track record of sustainable growth and cashflow generation to help USS deliver a secure financial future for our members. We look forward to working with the management team and continuing our successful partnership with Alinda,” Michael Powell, USS Private Markets Group Head.
PECO Pallet is advised by Houlihan Lokey and GNF Communications.
Blackstone Tactical Opportunities, the opportunistic investment platform of the global investment firm The Blackstone Group, completed the acquisition of a majority stake in ZO Skin Health, a California-based global skincare brand. Financial terms were not disclosed.
"We look forward to investing further in the business to drive growth and believe ZO is well positioned to continue delivering premier solutions to physicians and patients,” Ram Jagannath, Blackstone Growth and Tactical Opportunities Global Head of Healthcare.
ZO Skin Health was advised by ThisIsMission. Blackstone was advised by Weil Gotshal and Manges.
Atar Capital-backed Pathways, an American provider of behavioral and mental health services, completed the acquisition of Access Family Services, Family Behavioral Resources and Autism Education and Research Institute of Community Intervention Services, which has been established to acquire, develop and operate a national network of specialized mental health and substance abuse facilities and community-based programs. Financial terms were not disclosed.
“I’m honored to lead this growing team of committed and talented behavioral health professionals. By joining forces, we can reach more children, families, adults and employees with services tailored to help them reach their goals. This acquisition fulfills our commitment to deliver behavioral health services to more individuals and more communities in inclusive, open, ethical and positive environments,” Jill Winters, Pathways CEO.
Pathways was advised by Sterling Kilgore.
Susquehanna Private Capital, an investment company, agreed to acquire Brandywine Coach Works, a multi-site auto repair operator, and to form Quality Collision Group, a holding company that will pursue strategic acquisitions of auto repair facilities throughout the US. Financial terms were not disclosed.
“As auto technology has advanced, independent collision and mechanic shops have largely been unable to keep pace. Our industry finds itself at an inflection point where consumers face higher repair costs and few alternatives for qualified technicians. QCG’s growing network of auto repair facilities will seek to leverage these shifting industry dynamics to provide consumers with an innovative option in OEM certified repair service. We look forward to bringing QCG to additional markets across the US as we partner with like-minded businesses who share our mission,” Jerod Guerin, QCG CEO.
Susquehanna is advised by Gasthalter & Co.
BHP, an Anglo-Australian multinational mining, metals and petroleum dual-listed public company, agreed to acquire a 28% stake in Shenzi field from Hess, an American global independent energy company, for $505m.
The acquisition would bring BHP’s working interest to 72% and immediately add approximately 11k barrels of oil equivalent per day of production.
“This transaction aligns with our plans to enhance our petroleum portfolio by targeted acquisitions in high quality producing deepwater assets and the continued de-risking of our growth options. We are purchasing the stake in Shenzi at an attractive price, it’s a tier one asset with optionality, and key to BHP’s Gulf of Mexico heartland. As the operator, we have more opportunity to grow Shenzi high-margin barrels and value with an increased working interest,” Geraldine Slattery, BHP President Petroleum Operations.
Avalara, a provider of tax compliance automation for businesses of all sizes, completed the acquisition of Transaction Tax Resource, the tax answer company, primarily serves enterprise businesses and their internal tax teams, for c. $377m.
“Avalara works every day to improve and expand our compliance content for businesses of all sizes. I have long admired the TTR team and I am excited to have them join Avalara. As our teams work to integrate and execute, we believe the exchange of expertise, information, and technologies between the two companies will improve our products, grow our business, and continue to pioneer tax technology services in our field. As more businesses move to rely on digital infrastructure, we believe our technologies will change how tax teams think about cloud-based tax automation to support their business decision-making and growth,” Scott McFarlane, Avalara Co-founder and CEO.
Faraday Future considers going public through SPAC merger.
Faraday Future, an electric vehicle startup, aims to close a deal soon to go public through a reverse merger with a SPAC, Reuters reported.
SPACs have emerged as a quick route to the stock market for companies, particularly auto technology startups, and have proven popular with investors seeking to echo Tesla's high stock valuation. Faraday has said it wants to raise $800m-$850m to launch the FF 91.
"We are working on such a deal ... and will be able to announce something hopefully quite soon," Carsten Breitfeld, Faraday Future CEO.
NextEra's Duke Energy bid faces many of regulatory hurdles.
NextEra Energy Chief Executive James Robo joked last week he does not pursue small acquisitions because the reward is not worth the “brain damage” of getting them past regulators, Reuters reported.
Yet his $65bn-plus pursuit of Duke Energy will only pay off if he can overcome major regulatory hurdles in putting together the biggest ever US utility deal.
Duke rebuffed a takeover approach from NextEra, the world’s largest producer of renewable energy from wind and sun, as inadequate. The deal would help accelerate Duke’s transition away from coal- and gas-fired power plants.
Greycroft Partners raised $680m to invest in startups. (FS)
Greycroft, the venture capital firm, has raised $680m to find the next Bumble or Venmo, topping its previous $250m fundraised in 2017 and 2018, Bloomberg reported.
The New York and Los Angeles-based firm, which has backed both of those businesses, plans to invest $310m in early-stage startups and $370m in growth-stage startups.
Greycroft's portfolio includes Axios Media, mobile games publisher Scopely, Bird Rides, scooter rental service, and Gwyneth Paltrow's lifestyle startup Goop. It was also invested in fashion resale business The RealReal, which went public last year.
Thomson Reuters said to look for buyers for 3 Times Square stake.
Thomson Reuters is exploring the sale of its 50% stake in Manhattan office tower 3 Times Square, becoming the latest media giant to rethink its property holdings, Bloomberg reported.
The company has tapped an adviser to solicit potential interest in buying Thomson Reuters' stake in the property, which it co-owns alongside Rudin Management. The 32-story building serves as a hub for the news service.
"We regularly engage with advisers to ensure that our real estate footprint best supports our workforce and their ability to serve our customers," David Girardin, Thomson Reuters spokesman.
Evolution Credit Partners raises $565m in committed capital for a lending fund. (FS)
Evolution Credit Partners Management, an alternative credit firm with over $1.6bn in assets under management, made the final close of its inaugural middle-market direct lending fund, Evolution Credit Partners I. The Fund has approximately $565m of investable capital, including leverage.
Evolution received commitments from a prominent group of domestic and foreign limited partners including insurance companies, endowments and foundations, banks, family offices and high net worth individuals. Since the firm's spin-out from Harvard Management Company in April 2018, ECP I has invested approximately $500m across 25 private-equity backed portfolio companies.
Bullpen Capital raised $130m for fifth fund. (FS)
Bullpen Capital, post-seed-stage investment house, has struck a $130m final close for its fifth flagship fundraise. Bullpen was just about to outdo the $125m it collected for its previous fund in 2018.
Bullpen's funds have all been similar in size, backing approximately 25 startups each. Paul Martino, Bullpen's Co-founder, expects the same of the firm's new fund, which will generally invest $2-4m into rounds that are $4-6m in size.
EMEA
Chrysaor, a holding company that focuses on exploration and production of oil and gas resources, agreed to acquire Premier Oil, an independent UK oil company with gas and oil interests in the UK, Asia, Africa and Mexico, for $3.93bn.
“Through this deal we will become the UK’s largest London-listed independent E&P, by all key metrics. With our combined organisation and operatorship of a large part of our now international portfolio, we will have the ability to deliver value safely, and play our part in the energy transition,” Phil Kirk, Chrysaor CEO.
Chrysaor is advised by Barclays, BMO Capital Markets, Brunswick Group and Sard Verbinnen. Premier Oil is advised by Jefferies & Company, RBC Capital Markets, PJT Partners and Camarco.
GardaWorld, a Canadian private security firm, which launched a hostile bid last month for G4S, a British multinational security services company, will begin meeting with key G4S shareholders this week after the company repeatedly rejected its offers, Reuters reported.
The firm offer, made at the end of September, followed an earlier offer last month for the same amount apiece, which was also rejected by G4S. The UK-based firm also turned down two prior proposals of $1.88 per share and $1.98 per share each.
G4S is advised by Citigroup, JP Morgan, Linklaters, and Brunswick Group. BC Partners is advised by Kirkland & Ellis. GardaWorld is advised by Barclays, Simpson Thacher & Bartlett, and Montfort Communications.
Polhem Infra, a company that invests in and manages infrastructure assets, agreed to acquire Telia Carrier, a provider of Internet backbone networks, from Telia, a Swedish multinational telecommunications company and mobile network operator, for $1.06bn.
”The divestment of Telia Carrier highlights the value Telia has built in its digital infrastructure - and today we are able to crystallize some of that value. As a consequence, we can now fully concentrate on our Nordic and Baltic footprint, while we at the same time have secured future access for our customers to Telia Carrier's world-leading solutions, through a long-term strategic partnership. The majority of the proceeds from the sale will be used to strengthen our balance sheet and thereby provide a solid financial base for Telia Company and our shareholders, enabling both investments in services and networks in our core markets as well as providing a strong foundation for attractive shareholder remuneration," Allison Kirkby, Telia President and CEO.
Polhem Infra is advised by Analysys Mason, Carlsquare, ICECAPITAL Securities, PricewaterhouseCoopers, DLA Piper and Weil Gotshal and Manges.
Arch Capital and Kelso-backed Premia, a reinsurance group, agreed to acquire Navigators, which is holding or owning securities of companies other than banks, from The Hartford Financial Services Group, a property and casualty company in the United States. The transaction is subject to typical regulatory approvals. Financial terms were not disclosed.
“We are delighted that we have developed a positive solution with The Hartford for ASCO, and we look forward to welcoming ASCO and its staff into the Premia family,” Bill O’Farrell, Premia Chief Executive Officer.
Premia is advised by Clifford Chance. The Hartford is advised by Citigroup and Mayer Brown.
Curtis Banks Group, a financial services company based in Bristol, announced that the pre-conditions to the acquisition of Talbot and Muir, including receipt of approval from the Financial Conduct Authority, have been satisfied. Completion of the acquisition will occur on October 30, 2020.
"I am delighted that the acquisition of Talbot and Muir will complete at the end of the month. Our two businesses are highly compatible in terms of the culture, service offering and distribution routes and this combination reinforces our position as a leading SIPP provider in the UK whilst also being immediately earnings enhancing for the Group as a whole. I very much welcome the Talbot and Muir team into the Curtis Banks Group and I look forward to working with them to drive the future growth of the business," Will Self, Curtis Banks CEO.
Curtis Banks is advised by N+1 Singer, Peel Hunt and Camarco.
Syngenta Group, a maker of crop produces agrochemical products, agreed to acquire Valagro, a biologicals company. Financial terms were not disclosed.
“We are looking forward to welcoming the Valagro team to Syngenta Group. This acquisition underlines our growth ambitions in this area and positions us as one of the strongest players in the global biologicals market. The investment also forms part of our $2bn commitment to help farmers address the effects of climate change and improve agricultural sustainability as part of our Good Growth Plan,” Erik Fyrwald, Syngenta Group CEO.
P27 Nordic Payments Platform, a payment initiative that connects the Nordic region, agreed to acquire Bankgirot, the Swedish mass payment clearing house behind Swish, from Swedish banks - Danske Bank, Nordea, SEB, Skandiabanken and Swedbank. Financial terms were not disclosed.
“P27’s acquisition of Bankgirot is a very important step in our ambition to build a solid Nordic clearing infrastructure. This will enable the Nordics to take the lead in building the world’s first integrated cross-border and cross-currency payments region, facilitating the needs of banks, consumers and society at large,” Lars Sjögren, P27 Nordic Payments Platform CEO.
Prism Advance Solutions, an international platform dedicated to providing technology and software solutions, offered to acquire Finablr, a global platform for payments and foreign exchange solutions. Financial terms were not disclosed.
"After months of hard work under very trying liquidity conditions compounded by the impact of the Covid on our operations, I am excited to now go forward with Prism. My management team has done a stellar job of focusing on our operations whilst seeking a holistic solution for the group. Our employees have worked at reduced or zero pay for some months and this deal is only possible thanks to their hard work and sacrifice. We now enter a new chapter in the company's history. We thank all our clients, regulators, creditors, advisors, and vendors who stood by us during these trying times. We are honoured to be involved in this game-changing transaction in the Middle East," Bhairav Trivedi, Finablr CEO.
APAC
Northern Star Resources, an Australian gold producer, agreed to merge with Saracen Mineral, a gold growth company with three mines on the doorstep of Kalgoorlie, in a $12bn deal. Upon implementation of the scheme, Northern Star shareholders will own 64% of the combined entity and Saracen shareholders will own the remaining 36%.
“This is one of the most logical and strategic M&A transactions the mining industry has seen. The savings, the synergies and the growth opportunities it will generate make the transaction extremely compelling. In short, it is a unique opportunity for Saracen shareholders unlikely to be replicated via any other avenue,” Raleigh Finlayson, Saracen Mineral Managing Director.
Northern Star is advised by Sternship Advisers, Ashurst and Read Corporate. Saracen Mineral is advised by Macquarie Group and DLA Piper.
Adani Ports and Special Economic Zone, a privately owned multi-port operator completed the acquisition of a 75% stake in Krishnapatnam Port, a deepwater port on the east coast of India, from private equity firm 3i Group and Indian conglomerate Navayuga for $1.9bn.
“This transformational acquisition enables us to roll out world class customer service to an increased customer base and provide pan India solution to them. Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100m tonnes by FY25 and double its EBIDTA by FY23," Karan Adani, APSEZ CEO and Whole Time Director.
KPCL was advised by Shardul Amarchand Mangaldas. APSEZ was advised by Ernst & Young and Cyril Amarchand Mangaldas. 3i Group was advised by Trilegal.
The Carlyle Group completed the acquisition of a 20% stake in Piramal Pharma, the pharmaceutical business of Piramal, a diversified global business conglomerate, for c.$481m.
“We are pleased to announce the closure of the transaction for Carlyle’s growth investment in Piramal Pharma. Our track record of agility, transparency and robust corporate governance has enabled a seamless and earlier than committed timelines for the entire process. With this completion, we are now excited about the enhanced opportunities ahead and look forward to leveraging Carlyle’s deep expertise and global strengths to bolster our growth plans,” Nandini Piramal, Piramal Executive Director.
Piramal was advised by Rothschild, Covington & Burling and Cyril Amarchand Mangaldas. Carlyle Group was advised by JP Morgan, AZB & Partners and White & Case.
ADIA to invest $750m in Reliance Retail. (FS)
Abu Dhabi Investment Authority agreed to acquire a 1.2% stake in Reliance Retail from Reliance Industries, an Indian multinational conglomerate, for $750m.
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out,” Mukesh Ambani, Reliance Industries Chairman and Managing Director.
Danone plans to sell a 6.6% stake in Yakult for $588m.
Danone considers selling its remaining 6.6% stake in Yakult Honsha, a Japanese sweetened probiotic milk beverage, for $588m, Reuters reported.
Barclays analysts said the sale would help Danone focus expansion of plant-based dairy in Europe and Americas behind its key brands Alpro and Silk, while helping deleverage its balance sheet.
KKR raises $13bn so far for a record fourth Asia buyout fund. (FS)
KKR has raised more than $13bn for the world's largest Asia-focused private equity fund. The New York-headquartered firm has secured at least $13.1bn of total commitments across KKR Asian Fund IV and its parallel funds from 260 investors, DealStreetAsia reported. KKR was reportedly targeting $12.5bn for the fund.
Limited partners include the California Public Employees' Retirement System, Minnesota State Board of Investment and Taiwan's Cathay Life Insurance. KKR's GP commitment was 9.3% of the $10.7bn raised for Fund IV as of June 30.
GIC considers investing more than $1bn in Ant IPO. (FS)
GIC, Singapore's sovereign wealth fund, plans to invest more than $1bn in Ant Group's mega IPO as early investors look for a bigger slice of the Chinese payments behemoth, Bloomberg reported.
GIC and Singaporean state investor Temasek Holdings are considering participating in both the Hong Kong and Shanghai legs of the listing, which could together raise as much as $35bn. China's $318bn National Council for Social Security Fund plans to purchase shares in the mainland sale.
New Ruipeng Pet Healthcare Group picks banks for $500m IPO. (FS)
New Ruipeng Pet Healthcare Group has chosen banks to lead an IPO that could raise more than $500m, Bloomberg reported.
The Chinese pet clinic operator picked China International Capital, Credit Suisse and Morgan Stanley for the planned listing, which could take place as soon as early next year. The company is considering Hong Kong or the US as a potential listing venue but has not made a final decision.
SAIF Partners eyes to raise up to $400m. (FS)
SAIF Partners, an Indian venture capital firm, is back in the fundraising market eyeing up to $400m for its latest flagship vehicle. The fund is SAIF's fourth Indian vehicle, alongside three funds which have targets investments across the wider geographical reach in Asia.
SAIF has raised $350m for all of its previous funds in India, the most recent of which closed in 2017. SAIF was known as Softbank Asia Infrastructure Fund when it was founded in 2001, with Softbank as its only LP.
Mr DIY opens books to prepare for $361m IPO.
Mr DIY Group, a Malaysian home improvement retailer, opened the books for its $362 IPO, the country's largest listing in three years.
The company fixed the offer price at $0.38 per share, giving it an estimated market capitalisation of $2.4bn. The bookbuild period will last seven working days, before pricing on October 14 and listing on October 26.
"Reviewing the performance of our business, the resilience of our business, the continued growth, it clearly made sense for us to come back to the market," Adrian Ong, Mr DIY CEO.
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