EMEA
Portugal’s CMVM market regulator has given China Three Gorges an ultimatum on its bid for EDP-Energias de Portugal, warning that its takeover attempt of Portugal’s largest company could fail if reform of voting rights is rejected this month.
In a clarification to the market on the bid by China’s state-owned hydro-power giant CTG, CMVM said that if the motion to scrap a 25% voting right limit is rejected at an EDP general assembly meeting on April 24 it could scupper the bid.
Activist investor Elliott, which holds a 2.9% stake in EDP and has proposed an alternative to CTG’s bid and has called on EDP shareholders to reject the voting reform.
EDP is advised by Lazard, Millennium, Morgan Stanley, Rothschild & Co, UBS, DLA Piper, King & Wood Mallesons, and MLGTS. Three Gorges is advised by BofA Merrill Lynch, Citigroup, and Linklaters.
Green Arrow Capital has acquired the majority of Labware, producer of integrated systems for the point of sales in the foodservice and retail business. Financial terms were not disclosed.
The company, born has a hardware producer, over the years has developed an integrated system of hardware and software, including all the devices needed for the point of sales (cash register, handheld terminals, fiscal printers) able to support management applications and all other necessary devices for the point of sale management.
“We are delighted to have realized this new deal that allows us to recall more than 50% of the Fund’s commitment by keeping on increasing in our portfolio the number of Italian excellence with a strong international presence. Also, Labware is a good example of which the Fund can contribute not only financially but also providing managerial and organizational support, in order to accelerate the company growth, thus creating a positive impact on the real economy.“ Daniele Camponeschi, Green Arrow Capital Founding Partner.
Labware is advised by Ernst & Young and DLA Piper.
Grafton Group, the merchanting and DIY Group with operations in the UK, Ireland, the Netherlands, and Belgium, acquired Polvo from Pallieter Group, a holding company that engages in commercial vehicle dealership, hardware products distribution, and energy businesses, for €131m ($148m).
Polvo is one of the top three leading businesses in the specialist ironmongery, tools, ventilation systems, fixings, and related products market in the Netherlands. It trades from 51 branches and is an excellent geographic fit with the Group's Isero branch network.
"This acquisition will complement our existing Isero business, increase our exposure to the attractive, fast-growing Dutch market and support our strategy of creating a more balanced portfolio of businesses internationally. Polvo is a long-established high-quality business and brand that gives Grafton a unique opportunity to materially increase its scale and consolidate its market leadership position in The Netherlands." Gavin Slark, Grafton Chief Executive Officer.
Grafton is advised by Murray & Co and MHP Communications.
Royal HaskoningDHV has acquired Ambiental, a UK-based leading provider of actionable intelligence from data to protect people, property, and capital from flooding and climate change. Financial terms were not disclosed.
The acquisition, which strengthens its position in the (re)insurance market, supports Royal HaskoningDHV’s strategy to provide clients with software and services in which its extensive engineering and consultancy knowledge are combined with data-driven and technology-based solutions.
“Ambiental has a strong position in the (re)insurance market, complementary to our current market position and client base. The acquisition opens new and promising high-growth markets in international (re)insurance which are looking to better predict risks and prevent flood losses to people and properties,” Erik Oostwegel, Royal HaskoningDHV CEO.
IK Investment Partners has acquired BST Brandskyddsteamet, a leading Swedish provider of active fire protection services, from Infrea. Financial terms were not disclosed. The founders and management team will remain as shareholders.
BST provides a wide range of sprinkler system services, including consultancy & design, installation, and repair & maintenance. Through its strong local presence across Sweden with a full-service offering and blue-chip client base, the Company has established a solid market position. The Swedish sprinkler market has experienced strong growth historically and is expected to continue to grow at a high pace driven by favorable trends such as tightening regulation, increased safety awareness, and urbanization.
“Despite its relatively young age, BST has established itself as a Swedish market leader within the fire protection market. We are truly impressed with the management team and all of BST’s employees, and we look forward to supporting the company as it continues on its growth trajectory,” Kristian Carlsson Kemppinen, IK Investment Partner.
German utility Uniper has caved into demands from activist investor Elliott to allow shareholders a vote instructing management to enter negotiations with its largest investor, Fortum.
The company said in a statement that it has added a vote on a so-called domination agreement - a type of takeover structure used in Germany that allows bidders to tighten their control over a company without holding all the shares - to the agenda for its annual general meeting on May 22.
Uniper is currently in talks with Fortum over how to cooperate in the future, an attempt aimed at repairing their strained relationship after Fortum made a hostile bid in 2017.
Macquarie fund to sell wind assets in Italy and France for $450m.
A Macquarie-run infrastructure fund managing the Renvico wind farm portfolio in Italy and France has started a process to sell the company which could be worth around €400m ($450m).
The fund, advised by Rothschild, has sent out teasers and information memoranda will follow at the end of the month. Non-binding bids are expected by the end of May, but another said no time-frame had yet been set.
Deutsche Bank CEO and Chairman to keep posts after a potential merger. (People)
Deutsche Bank’s current Chief Executive Christian Sewing and Chairman Paul Achleitner would continue to lead the bank if it merges with Commerzbank.
Commerzbank’s CEO Martin Zielke would serve as deputy CEO of the combined group in charge of private and corporate banking.
Mediaset and ProSiebenSat.1 denied merger talks.
Italian media group Mediaset and its German rival ProSiebenSat.1 Media denied a media report that they were in merger talks, as at Fri 12th April, some newspapers including Il Sole 24.
Earlier, was reported that two companies were in talks to merge via a share exchange to create a pan-European independent broadcaster.
“No talks are being held for a merger with German TV group Prosiebensat1 Media,” Mediaset said in a statement. "I see no industrial logic in combining,” Max Conze, ProSiebenSat1 CEO, also denied talks.
WPP attracted at least 5 PE bids for Kantar, rumoured to value the company at c.$4.6bn. (FS)
WPP has attracted at least five of the world’s biggest private equity firms into an auction for a majority stake in its data analytics unit Kantar ahead of a deadline for indicative bids, Reuters reported.
US private equity funds Bain Capital and Apollo are putting the finishing touches to their rival bids and will compete with European funds CVC Capital Partners, Permira, and Apax.
The auction - led by Goldman Sachs - is gaining momentum as the deadline for first-round bids looms. But private equity investors, who have been reviewing the business in recent weeks, are taking a conservative approach to valuation.
UBI Banca is open for M&A opportunities.
Italian lender UBI Banca would consider any merger opportunity provided it creates value and does not complicate group governance, Chief Executive Victor Massiah said.
Massiah, speaking at UBI’s annual meeting, made the comment when asked about speculation it might be interested in doing a deal with either state-controlled bank Monte dei Paschi di Siena or Banco BPM.
“We are open to studying any type of proposal provided it has two components: the creation of value and simple and effective governance,” he said.
CRH looking to offload European distribution division for c. €2bn.
Irish building materials group CRH has hired Bank of America to launch the sale of its European distribution business in a deal valuing the unit at about €2bn ($2.25bn) including debt, Reuters reported.
The sale is expected to kick off next month and has already drawn interest from a series of buyout funds including Advent, Lone Star, and CVC.
Lone Star, which owns Nordic building materials supplier Stark, is also working on a similar deal to buy Saint Gobain’s Raab Karcher business which specializes in providing building materials to the German market.
AMERICAS
Chevron Corporation, an American multinational energy corporation, to acquire Anadarko Petroleum Corporation, a company engaged in hydrocarbon exploration, for $33bn or $65 per share.
Based on Chevron’s closing price on April 11, 2019 and under the terms of the agreement, Anadarko shareholders will receive 0.4 shares of Chevron and $16.25 in cash for each Anadarko share. The total enterprise value of the transaction is $50bn. Occidental was also submitting a bid proposing $70 per share, which was rejected by the Anadarko’s Board.
“This transaction builds strength on strength for Chevron. The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.” Michael Wirth, Chevron’s Chairman and CEO.
Anadarko is advised by Evercore, Goldman Sachs, Vinson & Elkins, and Wachtell Lipton Rosen & Katz. Chevron Corporation is advised by Credit Suisse and Paul Weiss Rifkind Wharton & Garrison.
Merck has acquired Versum Materials, a leading supplier of innovation-driven, high-purity process chemicals for $53 per share in cash. The business combination has been unanimously approved by the Executive Board of Merck and by Versum’s Board of Directors.
The business combination is expected to significantly strengthen Merck, Darmstadt, Germany’s Performance Materials business sector, creating a leading electronic materials player focused on the semiconductor and display industries. The business combination rebalances the company’s diversified three pillar portfolio of Healthcare, Life Science and Performance Materials while executing on Performance Material’s previously communicated transformation program.
“With this transaction, Merck, Darmstadt, Germany, will be optimally positioned to capitalize on long-term growth trends in the electronic materials industry. Our combined business shall deliver leading-edge innovations to our customers around the globe,” Stefan Oschmann, Merck Chairman of the Executive Board and CEO.
Entegris, a provider of products and systems that purify, protect, and transport critical materials used in the semiconductor device fabrication process, and Merck, are bidding for Versum Materials, which specializes in delivery equipment for the semiconductor industry. Entegris' initial $4bn bid was topped by Merck's $5.9bn offer. Merck increased its offer to $6.5bn. The sweetened bid was recommended by the board of Versum.
Versum is advised by Citigroup, Lazard, Latham & Watkins, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. Merck is advised by BNP Paribas, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs, Guggenheim Partners, and Sullivan & Cromwell. Entegris is advised by Morgan Stanley and Wachtell Lipton Rosen & Katz.
Bristol-Myers Squibb’s shareholders voted to approve the drugmaker’s $90bn acquisition of biotech Celgene despite a campaign by activist hedge fund Starboard Value to scuttle the deal.
The company said investors holding 76% of the shares voted were in favor of the deal in a preliminary count.
“We, from a management perspective, from a board perspective, truly believe this is the right transaction for us. The focus is on us right now to execute on the integration and then deliver the value of the combined portfolio, to confirm that the new company will deliver significant value for shareholders,” Giovanni Caforio, Bristol-Myers Chief Executive.
Celgene is advised by Citigroup, JP Morgan, Simpson Thacher & Bartlett, and Wachtell Lipton Rosen & Katz. Bristol Myers is advised by Bank of Tokyo Mitsubishi Group, Morgan Stanley, Dyal Co., Evercore, Morgan Stanley, Kirkland & Ellis, and Joele Frank.
Publicis Groupe acquired Alliance Data’s Epsilon business for a net purchase price of $3.95bn after tax step-up (total cash consideration of $4.4bn) and build a strategic partnership with Alliance Data remaining business. Goldman Sachs Private Equity and Advent also proposed their bids.
Epsilon is a unique technology and platform company focusing on maximizing the value of its clients’ data. This acquisition will accelerate the implementation of Publicis’ strategy to become the preferred transformation partner for its clients.
“Our clients are facing increasing pressure from the rise in consumer expectations, the mainstreaming of direct-to-consumer brands and new data regulations. The only response is to deliver personalized experiences at scale. They have to transform to meet this new market imperative." Arthur Sadoun, Publicis Groupe Chairman, and CEO.
Publicis Groupe is advised by Allen & Company, BNP Paribas, Citi, and JP Morgan, and Wachtell, Lipton, Rosen & Katz. Alliance Data is advised by Latham & Watkins.
Butterfly, a Los Angeles-based private equity firm specializing in the food sector, has acquired Bolthouse Farms from Campbell Soup Company for $510m in cash, subject to customary purchase price adjustments.
Bolthouse Farms is a vertically integrated food and beverage company focused on developing, manufacturing and marketing proprietary, high value-added natural, healthy products.
“We are thrilled to partner with vertically-integrated produce and fresh food leader with a history as rich as Bolthouse Farms, and we believe the company’s future is very bright especially given the continued rise of plant-based food in the diet of today’s consumer,” Adam Waglay, Butterfly Co-Founder.
Butterfly is advised by Kirkland & Ellis. Campbell is advised by Centerview Partners, Goldman Sachs, and Weil Gotshal and Manges.
Ridgemont Equity Partners, a middle market private equity investor, acquired Munch’s Supply alongside the Company’s seasoned management team, led by CEO Bob Munch from Rotunda Capital Partners. Financial terms were not disclosed.
Munch’s is a leading wholesale distributor of heating, ventilation and air conditioning (“HVAC”) equipment, parts and supplies. Munch’s Supply distributes products from more than 100 leading HVAC equipment, parts, and supplies manufacturers, including Trane, American Standard, Rheem, and Mitsubishi.
“Specialty distribution has been a cornerstone of Ridgemont’s Business and Industrial Services practice, and we have been focused on identifying opportunities within the HVAC sector for many years. Munch’s is the only private equity-backed top 50 HVACR distribution platform in the country, which makes the Company uniquely positioned to continue its growth trajectory through increased M&A and other initiatives that will enhance its presence in its existing markets and aid in the development of new markets.” Jack Purcell and Tim Dillon, Partners at Ridgemont, in a joint statement.
Munch's Supply is advised by Lincoln International. Ridgemont Equity Partners is advised by Baird, Livingstone Partners, and Alston & Bird. AEA Private Debt, JP Morgan, Kayne Anderson Private Credit, PNC Erieview Capital, PineBridge Private Credit, and Stellus Capital Management provided debt.
Court Square Capital Partners acquired Data Blue from Platinum Equity and The Gores Group. Financial terms of the transaction were not disclosed.
Founded in 2011, Data Blue is a provider of customized infrastructure, cloud architecture and virtualized solutions to enterprise customers in North America.
“We’ve enjoyed a great partnership over the past three years that has helped substantially grow and diversify our business. We have evolved from our roots in data storage and established the company as a leading provider of converged infrastructure solutions that are well positioned for continued success.” Stephen Ayoub, Data Blue CEO.
Court Square is advised by Dechert. Sellers Consortium is advised by Raymond James & Associates and Morgan Lewis & Bockius.
Boston Dynamics, an advanced robotics company, acquired Kinema Systems, a deep learning-based computer vision company. Financial terms were not disclosed.
Kinema Systems’ vision system will support the development of Boston Dynamics’ product offerings in the logistics and autonomy space.
“We are excited to bring Kinema Systems’ vision systems and deep-learning software to our robots to increase speed and agility and will be working with the Kinema team to grow sales and support of the Pick system. With this acquisition we will also be expanding our presence and team to the Bay Area, allowing for various employment opportunities,” Robert Playter, Boston Dynamics’ Chief Operations Officer.
Boston Dynamics is advised by Progress Partners.
Uber unveils IPO, with a warning it may never make a profit.
Uber Technologies has 91m users, but growth is slowing and it may never make a profit, the ride-hailing company said in its IPO filing.
The S-1 filing underscores Uber’s rapid growth in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders.
Lone Star is a frontrunner in Saint-Gobain auction. (FS)
US buyout firm Lone Star has emerged as the frontrunner to buy the German building materials business of France’s Saint-Gobain in a deal valued at up to €400m ($450m), Reuters reported.
Lone Star is using its Nordic building materials supplier Stark as an acquisition vehicle to purchase the unit, known as Raab Karcher. Stark was recently admitted to the second round of an auction process which kicked off in January. Private equity fund Platinum also made it to the final stages of the process, while US rival Advent initially expressed interest but subsequently dropped out.
Starwood to buy two power plants from Calpine.
Starwood Energy Group Global, a leading private investment firm focused on energy infrastructure, has acquired a two-asset portfolio from Calpine consisting of Garrison Energy Center, a 325MW combined cycle plant located in Delaware, and RockGen Energy Center, a 503MW peaker located in Wisconsin.
“This unique transaction is the culmination of a significant amount of work with the Calpine team to craft a deal that would achieve multiple objectives. For Starwood, the portfolio represents a combination of scale and risk-mitigation and is an excellent complement to our existing generation investments,” Himanshu Saxena, CEO of Starwood Energy.
Calpine is advised by White & Case. Starwood is advised by King & Spalding.
Lemonade raised $300m in Series D funding, reaching a $2bn valuation.
Insurance startup Lemonade has completed a $300m Series D led by SoftBank, reporting a valuation of more than $2bn. Allianz, General Catalyst, GV, OurCrowd and Thrive Capital also participated in the round. Lemonade provides AI-powered insurance offerings to renters, homeowners, and other customers.
SoftBank also led Lemonade's previous round of VC funding, a $120m Series C that valued the company at $570m in March 2018.
Slow Ventures raised $220m of funding.
Slow Ventures has closed its fourth flagship fund on $165m and its first opportunities fund on $55m. The Bay Area tech investor raised $145m for its prior flagship fund in 2016.
Founded in 2011, Slow Ventures has a portfolio that includes workplace communication company Slack, sneaker startup Allbirds and Wag, the creator of a dog-walking app.
APAC
India’s Supreme Court ordered ArcelorMittal to stop a payment to lenders to buy Essar Steel, Reuters reported, delaying billionaire Lakshmi Mittal’s entry into the country’s fast-growing steel market.
India’s bankruptcy court had approved ArcelorMittal’s $6bn bid for debt-ridden Essar on March 8, potentially ending months of court battles and opening the sector to outsiders.
On Friday, the Supreme Court halted ArcelorMittal’s payment while a bankruptcy appeals court - the National Company Law Appellate Tribunal - rules on various appeals in the case.
ArcelorMittal is advised by Credit Suisse, Linklaters, and Sullivan & Cromwell.
Lemonade raised $300m in Series D funding, reaching a $2bn valuation.
Insurance startup Lemonade has completed a $300m Series D led by SoftBank, reporting a valuation of more than $2bn. Allianz, General Catalyst, GV, OurCrowd and Thrive Capital also participated in the round. Lemonade provides AI-powered insurance offerings to renters, homeowners, and other customers.
SoftBank also led Lemonade's previous round of VC funding, a $120m Series C that valued the company at $570m in March 2018.
Abraaj founder Arif Naqvi arrested on fraud charges.
The chief executive and a managing partner of the collapsed Dubai private equity firm Abraaj Capital has been arrested on the US charges that they defrauded their investors, including the Bill & Melinda Gates Foundation.
Abraaj founder and Chief Executive Arif Naqvi was arrested in the United Kingdom while managing partner Mustafa Abdel-Wadood was arrested at a New York hotel, Assistant US Attorney Andrea Griswold said at a hearing in Manhattan federal court. Griswold said prosecutors would seek to have Naqvi, who is charged with the same crimes, extradited. Casey Larsen, a spokesman for Naqvi, could not immediately be reached.
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