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AMERICAS
Clayton, Dubilier & Rice, an American private equity company, completed the acquisition of Veritiv, a distributor of packaging, facility solutions and print products, for $2.3bn.
"The completion of this transaction represents an important milestone in our company's journey. CD&R's significant investment in Veritiv is a testament to our company's strong positioning as a leading specialty distribution solutions company and to our team's hard work and commitment. We are confident that this partnership, along with the financial and operational flexibility we will now have as a private company, will enable us to continue enhancing the innovative and sustainable solutions we deliver to our customers today – and into the future," Sal Abbate, Veritiv CEO.
Veritiv was advised by Morgan Stanley and Alston & Bird. Clayton, Dubilier & Rice was advised by BMO Capital Markets, Goldman Sachs, Guggenheim Partners, RBC Capital Markets, UBS, Wells Fargo Securities, Debevoise & Plimpton and Kirkland & Ellis (led by Richard Campbell and David Klein). Debt financing was provided by BMO Capital Markets, Goldman Sachs, RBC Capital Markets, UBS and Wells Fargo Securities.
Banc of California, a provider of a full-service banking and home lending to individuals and their businesses and families, completed the merger with PacWest, a bank holding company headquartered in Los Angeles, California, in a c. $1.15bn deal. Warburg Pincus and Centerbridge Partners will invest an aggregate of $400m for newly issued equity securities concurrently with, and subject to, closing of the merger.
“This transformational merger will create a robust, well-capitalized and highly liquid institution poised to deliver exceptional service to even more California businesses and communities. We believe both Banc of California and PacWest stockholders will benefit from the compelling economics of the combined company and its enhanced ability to deliver profitable and sustainable growth. Out of the gate, the combined company will have the strength and market position to support the banking needs of small and medium-size businesses in California and to capitalize on the opportunities created for stronger financial institutions in the wake of the recent banking industry turmoil,” Jared Wolff, Banc of California President and CEO.
Cetera, an independent wealth hub and financial services provider, completed the acquisition of Avantax, a tax-focused financial planning and wealth management solutions provider, for $1.2bn.
"This transaction represents the beginning of a promising new chapter together for two industry-leading firms, and we are pleased to welcome the Avantax team to Cetera. Partnering with Avantax is core to our growth strategy and capitalizes on Avantax's many capabilities that benefit financial professionals, affiliates and their clients. We are confident Avantax financial professionals, affiliates and staff will thrive at Cetera, and we look forward to serving clients together for years to come," Mike Durbin, Cetera Holdings CEO.
Ariel Alternatives, a private investment firm, completed the acquisition of a 58.5% stake in My Code, a multicultural media and marketing services company, from Falfurrias Capital Partners, a private equity firm for $235m.
"We are exceptionally proud of the partnerships My Code has built over the last eight years with the many brands, creators, and publishers who have put their trust in our Company. We are humbled that Ariel Alternatives sees our growth potential as well. With a new investment partner by our side, we look forward to working with both new and existing clients to help them understand, embrace, and reach the underrepresented communities driving economic growth in our country," Parker Morse, My Code Founder and CEO.
My Code was advised by Canaccord Genuity, The Raine Group, Cooley and K&L Gates. Ariel Alternatives was advised by Deloitte, Bridge House Advisors, Insight Sourcing Group, McKinsey & Company and Willkie Farr & Gallagher (led by Mark Getachew).
HF Sinclair, a petroleum refineries company, completed the acquisition of a 52.84% stake in Holly Energy Partners, a provider of petroleum product and crude oil transportation, for $1.44bn.
“We are pleased to announce this strategic transaction which we believe simplifies our corporate structure, reduces costs and further supports the integration and optimization of our portfolio. We expect the transaction to be accretive to earnings per share and available free cash flow within the first twelve months, further supporting our capital allocation strategy of returning excess cash to shareholders," Tim Go, HF Sinclair Chief Executive Officer and President.
Volato, an innovator in private aviation, went public via a SPAC merger with PROOF Acquisition I, a special purpose acquisition company, in a $261m deal.
"This is an exciting milestone for Volato, our customers, and our investors. We believe that this transaction provides not only the capital to accelerate our fleet growth and strategy, but also a level of transparency and institutional support that should make our product even more attractive to new fractional owners and private fliers. After founding the company in 2021 and quickly ramping to nearly $100m of revenue in 2022, we are now positioned to build on this momentum as a public company. More importantly, we believe that our total funding and capitalization at closing provides us with sufficient capital to execute on our growth strategy and fund our path to profitability. We're thrilled to begin this new chapter and look forward to delivering more efficient, friendly, and rewarding solutions to travelers while creating value for our shareholders," Matt Liotta, Volato CEO and Co-Founder.
Volato was advised by BTIG, Womble Bond Dickinson, and ROTH Capital Partners. PROOF Acquisition I was advised by LSH Partners, Lowenstein Sandler, Steptoe & Johnson, and Richards Layton and Finger. LSH Partners were advised by Baker Botts (led by Lee D. Charles).
Metalla Royalty & Streaming, a royalty and streaming company, completed the acquisition of Nova Royalty, a copper-focused royalty company, for $47m.
"We are very excited about the combination of these businesses. This merger represents a transformative moment for both companies and will lay a clear, low-risk path to becoming an intermediate royalty company. Together, we expect that our peer-leading, high-quality growth, underpinned by some of the best-in-class operators in the mining sector, will deliver superior long-term value for our shareholders," Brett Heath, Metalla President and CEO.
Metalla Royalty & Streaming was advised by BMO Capital Markets, Trinity Advisors Corporation, and Osler Hoskin & Harcourt. Nova Royalty was advised by Haywood Securities, PI Financial, Blake Cassels & Graydon, DLA Piper, and Dorsey & Whitney.
EagleTree Capital, a private equity firm, completed the acquisition of Summit Hill Foods, a food products manufacturer. Financial terms were not disclosed.
“Today, we embark on an exciting new chapter in the history of Summit Hill Foods and are absolutely delighted to join forces with EagleTree, whose vision and resources align seamlessly with our aspirations. We see incredible opportunity for our brands Better Than Bouillon and The Original Louisiana Hot Sauce in addition to our custom bases and sauces business. EagleTree’s partnership will empower us to accelerate our growth and innovation, expand our market reach and continue providing high quality products to our customers," Steve Goodyear, Summit Hill Foods CEO.
Summit Hill Foods was advised by Bank of America, Deloitte and Eversheds Sutherland. EagleTree Capital was advised by Alvarez & Marsal, BDT & Co, Jones Day (led by Andrew Levine) and FGS Global.
Chesapeake Utilities, a diversified energy delivery company, completed the acquisition of Florida City Gas, a natural gas distribution company, from NextEra Energy, a clean energy company, for $923m.
"We are pleased to formally welcome Florida City Gas and excited about the opportunities we can pursue given our combined capabilities. The integration of our businesses creates a compelling foundation: one focused on driving sustainable earnings growth consistent with our long-term track record. Together, we'll strengthen our Florida presence, leveraging our core competencies and building upon our strong community and regulatory relationships, while continuing to meet the growing demand for natural gas," Jeff Householder, Chesapeake Chairman, President and CEO.
Chesapeake Utilities was advised by Barclays, BakerHostetler, Shearman & Sterling (led by Lara Aryani and Creighton Condon) and Reevemark (led by Hugh Burns and Delia Cannan). NextEra Energy was advised by Goldman Sachs and Norton Rose Fulbright.
Mizuho, a banking holding company, completed the acquisition of Greenhill & Co, an independent investment bank entirely focused on providing financial advice, for $550m.
"Greenhill is a proven industry leader, and its team has led many of the largest and most complex transactions for clients globally, across a wide range of sectors. Mizuho is committed to the expansion of its investment banking platform, and we are excited for the Greenhill team and brand to become a core pillar of this strategy," Jerry Rizzieri, Mizuho Securities USA President and CEO.
KKR completed the acquisition of Potter Global Technologies, a manufacturer of fire and life safety equipment, from Gryphon Investors, a private equity firm. Financial terms were not disclosed.
“Potter’s growth is a testament to the performance of our talented team and to our reputation as a leader in the fire and life safety industry. Our mission to protect people, buildings, and critical infrastructure across the globe underpins everything we do, and we are excited to continue furthering this mission with KKR. We are aligned on Potter’s potential and look forward to continue serving our customers through accelerated new product innovation, superior customer service, and an expanded reach domestically and internationally. Implementing KKR’s equity ownership philosophy, which will make every employee an owner, will be instrumental in achieving our potential and we are looking forward to the exciting growth that all employees together will drive as co-owners in Potter,” Gerry Connolly, Potter CEO.
KKR was advised by Robert W Baird and Baker McKenzie (led by Airi Hammalov). Gryphon was advised by Harris Williams & Co, Raymond James, Kirkland & Ellis and Lambert & Co (led by Caroline Luz and Jennifer Hurson).
Arthur J. Gallagher, an American global insurance brokerage and risk management services firm, completed the acquisition of Cadence Insurance, an insurance company, from Cadence Bank, a financial services provider, for $904m.
"The completion of this transaction is a testament to the significant value of the insurance business. Over the past 24 years, we have enjoyed a strong partnership with Cadence Insurance, and we applaud their leadership and the entire team for their many contributions and commitment to serving their clients and communities," Dan Rollins, Cadence Chairman & CEO.
Arthur J. Gallagher was advised by Winston & Strawn. Cadence Insurance was advised by Ernst & Young, MarshBerry, Morgan Stanley and Hodgson Russ.
Evergreen Hill Enterprise, a business conglomerate, completed the acquisition of the Engineered Papers business of Mativ, a provider of specialty materials, for $620m.
"We are very pleased with the completion of the sale of Engineered Papers. They have a great team and strategy in place for a successful future. For Mativ, this is an important part of unlocking our strategy to become a leading manufacturer of specialty materials. As we head into 2024, over 80% of our revenue will be from our Advanced Technical Materials segment, where we have strong positions in large, growing, profitable markets," Julie Schertell, Mativ CEO.
Evergreen Hill was advised by Barclays. Mativ was advised by Morgan Stanley and King & Spalding (led by Rahul Patel).
Insigneo, a global wealth management firm, completed the acquisition of Latin American brokerage and investment operations of PNC, a financial services corporation. Financial terms were not disclosed.
"The acquisition of PNC’s Latin American brokerage and investment operations further cements Insigneo’s position in the Americas as a leader in international wealth management. We are committed to the region with our strategy of empowering investment professionals to deliver excellent service and compelling investment strategies and solutions to clients globally," Raul Henriquez, Insigneo Chairman and CEO.
Truelink Capital, a Los Angeles based private equity firm, agreed to acquire Ansira Partners, an independent global marketing services and solutions company with proprietary channel, website, and advertising technology platforms. Financial terms were not disclosed.
"Ansira is a multifaceted company that is services-led and technology-powered. Truelink is a trusted partner with a proven track record, and this acquisition by Truelink provides the opportunity for us to grow, innovate, and refine our operations while continuing to deliver cutting-edge marketing solutions. Their partnership with Ansira provides further validation of our work and our impressive roster of clients, many with long-standing tenure," Andy Arnold, Ansira President.
Truelink Capital is advised by FTI Consulting. Ansira is advised by Canaccord Genuity and Ropes & Gray.
CF Industries, a global manufacturer of hydrogen and nitrogen products, completed the acquisition of the Waggaman ammonia production facility of Incitec Pivot, an Australian multinational corporation that manufactures fertiliser, explosives chemicals, and mining service, for $1.7bn.
"We are pleased to reach this agreement with Incitec Pivot Limited that benefits from our industry-leading ammonia production capabilities, deploys our capital efficiently and provides long-term value for both companies’ shareholders. We believe the Waggaman facility will fit seamlessly into our network, as well as our strategic focus on ammonia as a clean energy source, given its proximity and pipeline connection to our Donaldsonville, Louisiana, Complex, its distribution and logistics flexibility, and its favorable characteristics for the addition of carbon capture and sequestration technologies to enable low-carbon ammonia production," Tony Will, CF Industries Holdings President and CEO.
CF Industries Holdings was advised by Goldman Sachs and Skadden Arps Slate Meagher & Flom (led by Brian W. Duwe).
Glencore, a British–Swiss multinational commodity trading and mining company, completed the acquisition of a 30% stake in Alunorte, a alumina refinery, and a 45% equity stake in Mineracão Rio do Norte, a bauxite producer, from Norsk Hydro, an aluminium and energy company, for $775m.
"This transaction is an important step to deliver on Hydro’s strategy. Proceeds from the transaction will be used for strategic growth and for shareholder distribution. Alunorte remains a core strategic asset for Hydro and is a key source of low-carbon alumina supply to our primary aluminum smelters. Hydro will continue to be long alumina, but now more balanced in relation to the demand from our aluminium smelter portfolio,” Hilde Merete Aasheim, Hydro President and CEO.
Norsk Hydro was is advised by Citigroup and Latham & Watkins.
Yieldstreet, a private market investment platform, agreed to acquire Cadre, an online, real-estate-focused investment platform that serves institutional and high net worth investors. Financial terms were not disclosed.
"Yieldstreet set out to create a category eight years ago. Today, we are leading the industry forward and setting the stage for accelerated growth, both organic and inorganic. We will continue to pursue strategic opportunities to increase revenue, enhance profitability, drive operating synergies, and unlock new channels for distribution or exceptional technology. Expanding complementary distribution channels and markets beyond the US, investment portfolios and capabilities with Cadre is just the beginning. We are thrilled to welcome Cadre to the Yieldstreet family," Michael Weisz, Yieldstreet CEO.
Cadre is advised by Davis Polk & Wardwell (led by Evan Rosen). Yieldstreet is advised by Prosek Partners.
Sustainable Development Capital, a specialist investment firm, completed the acquisition of Volery Capital, a private equity firm investing in rapidly growing companies that power the energy transition, from Ares Management, a private equity firm. Financial terms were not disclosed.
“We are in uniquely exciting times for the energy transition, and the financial sector has a vital part to play in delivering net zero. Sustainable Development Capital was founded with a view to help unlock capital to deliver decarbonisation at scale. We've been lucky to benefit from Volery’s support for many years and I am excited to bring them formally into the SDCL group to help us broaden the type of financing options we are able to provide. I look forward to seeing what can be achieved in private equity over the next decade as the world moves from making climate pledges to delivering on them at pace and scale," Jonathan Maxwell, SDCL Founder and CEO.
Volery Capital was advised by Winston & Strawn. SDCL was advised by Brunswick Group.
Sentinel Midstream, a midstream solutions provider, and ExxonMobil, an energy company, agreed to form a joint venture Enercoast Midstream Louisiana, a pipeline services provider. Financial terms were not disclosed.
"We are extremely pleased to continue the growth of our joint venture with ExxonMobil to maximize the potential of Enercoast in the critical Louisiana crude oil market. ExxonMobil and Sentinel's decision to form a second joint venture, in a new geographic area, speaks to the growth of our relationship and the value each party places on it," Jeff Ballard, Sentinel President and CEO.
Sentinel Midstream is advised by Willkie Farr & Gallagher (led by Archie Fallon). ExxonMobil is advised by Troutman Pepper.
Atlassian, a provider of team collaboration and productivity software, completed the acquisition of Loom, a video messaging platform, for $975m.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” Mike Cannon-Brookes, Atlassian Co-Founder and Co-CEO.
INEOS, a chemical producer that manufactures petrochemicals, specialty chemicals, and oil products, completed the acquisition of Texas City operations from Eastman Chemical Company, a global specialty chemicals company that produces a range of advanced materials, for $490m.
“We are happy to have reached this agreement with INEOS. They have been a strong partner with us at the Texas City site and have extensive experience and a complementary position in the acetyls space. Our Texas City Operations is an attractive site with an incredible team of people, and we are pleased that INEOS plans to further invest in and grow the site. We look forward to working closely with INEOS as we prepare for a seamless transition later this year, and longer-term as operators of our plasticizer assets at the site,” Erwin Dijkman, Eastman Division President.
Tenzing Private Equity, a private equity firm, completed the acquisition of Webexpenses, an expense software provider. Financial terms were not disclosed.
"This is a hugely exciting time for the business, I am filled with gratitude for the incredible team that has brought us to this point. This is a testament to the hard work, dedication, and innovation that defines our company. Joining forces with Tenzing opens up new horizons and opportunities for growth. I believe this acquisition is not just a milestone but a stepping stone towards even greater success for our Clients and Partners. Our shared vision and combined strengths will undoubtedly propel us to new heights, and I am eager to see the remarkable achievements that lie ahead," Andrew May, Webexpenses Managing Director.
K1 was advised by Rothschild & Co.
BroadRiver Asset Management, a specialist in the management of fixed-income alternative investments, completed the acquisition of the US & Bermuda businesses of Lombard International, a provider of wealth structuring, life assurance solutions for succession and wealth planning. Financial terms were not disclosed.
"This transaction is an outstanding opportunity for BroadRiver and its investors and an additional step in BroadRiver's strategic expansion into the insurance sector. We look forward to supporting the sustained development of Lombard US/BDA's position in specialty life insurance and variable annuity products," Andrew Plevin, BroadRiver Co-Founder and Co-CEO.
BroadRiver Asset Management was advised by Henley Cay Capital.
Tampa General Hospital, a medical center, completed the acquisition of Bravera Health, a health care provider network of companies in the US, from Community Health Systems, a provider of general hospital healthcare services. Financial terms were not disclosed.
"We have a bold vision to offer world-class health care, research and innovation to communities throughout Florida, and a key step toward realizing this vision is embracing partnerships that allow us to expand services where they are needed most. By bringing the Bravera Health network into our system and coming together as one organization, we will be stronger in our united mission to transform health care for all Floridians," John Couris, Tampa General Hospital President and CEO.
Tampa General Hospital was advised by Red Hills Strategies (led by Amanda Bevis).
Ryan Specialty, an international specialty insurance firm, completed the acquisition of AccuRisk, a medical stop loss managing general underwriter. Financial terms were not disclosed.
"Dan and the AccuRisk team are proven leaders in the medical stop loss space, having built one of the largest independent medical stop loss MGUs. Moreover, the AccuRisk team shares our vision to develop a comprehensive integrated health solution, providing retail brokers with a 'one stop shop' for self-insurance needs. Together Ryan Specialty and the AccuRisk professionals will be able to accelerate the rate of innovation in the employee benefits industry," Patrick G. Ryan, Ryan Specialty Founder, Chairman and CEO.
AccuRisk was advised by Houlihan Lokey.
Wentworth Capital, a real estate private equity firm, completed the acquisition of a Logistics Portfolio from GPT, a Real Estate Investment Trust, for $140m.
The deal shows that industrial portfolio trades are still on the agenda despite quieter times in capital markets. GPT has been expanding in logistics. Last year, it said its joint venture with Canada’s Quadreal Property had expanded to $2bn. It has also built up substantial holdings and has a near $5bn industrial empire. A deeper shift into logistics has been a hallmark of departing GPT chief executive Bob Johnston’s period at the helm of the company. But it has been selling off smaller assets, and Wentworth has been on the expansion trail, becoming one of the key players in last-mile logistics since it was set up in 2019.
Nevro, a provider of pain relief solutions for patients suffering from low back pain and other types of chronic pain, completed the acquisition of Vyrsa Technologies, a provider of a solution to chronic SI joint pain by securely stabilizing the SI joint, for $75m.
"The acquisition of Vyrsa leverages Nevro's ability to drive long-term shareholder value by accelerating our key strategic initiatives of commercial execution, market penetration, and profit progress. Vyrsa offers differentiated implants to our current call point of physicians that will help drive growth. We are ecstatic to be able to bring long-term pain relief to the 15-30% of people suffering with chronic low back pain associated with the SI joint2," Kevin Thornal, Nevro CEO.
Calian Group, a diverse products and services company, completed the acquisition of Decisive Group, an IT infrastructure and cyber security services company, for $55m.
“We’re pleased to be acquiring a company that not only has so much to offer, but also has similar values. This acquisition is also an important step in our growth strategy allowing us to continue to scale our IT and cyber business. Ultimately, we will be able to offer stronger managed services capability in both the short and long term to customers across industry and government," Kevin Ford, Calian CEO.
Pandion Optimization Alliance, a supply chain and logistics company that offers consulting services, agreed to acquire GPO assets from Vantage Healthcare Network, a specialist in the development and management of healthcare business ventures that generate customer savings. Financial terms were not disclosed.
"This acquisition represents over $390m in estimated purchasing volume and aligns seamlessly with Pandion's vision of providing a multi-billion dollar marketplace that democratizes access in order to amplify buying power and savings to our customers. We're thrilled with the way this deal came together and believe it's a win-win for both companies." Travis Heider, Pandion President & CEO.
Judge set to rule on Berkshire Hathaway request for speedy trial over Pilot unit.
A Delaware judge said she will decide whether to give Warren Buffett's Berkshire Hathaway a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family, Reuters reported.
Berkshire already owns 80% of Pilot, having paid the Haslams $2.76bn for a 38.6% stake in 2017 and $8.2bn for another 41.4% in January. The dispute concerns how much Berkshire would owe if the Haslams, including Cleveland Browns owner Jimmy Haslam, exercised their option to sell the remaining 20% in the first two months of 2024.
Reverence seeks buyer for $2.5bn stake in Osaic. (FS)
Reverence Capital Partners, the financial-services focused private equity group, is seeking buyers for a minority stake in Osaic, the network of wealth management firms formerly known as Advisor Group.
Reverence is seeking to sell up to 20% of Osaic, a stake that could be worth as much as $2.5bn. Deliberations are ongoing and Reverence may yet opt to sell a larger holding, Bloomberg reported.
Kinepolis shelves potential bid for Canada's Cineplex.
Kinepolis Group, one of the largest theater operators in Europe, recently considered making a bid for Cineplex, the number one chain in Canada, but chose not to proceed after concluding a deal would struggle to win regulatory approval, Bloomberg reported.
Kinepolis may still pursue a deal if it can partner with another bidder to acquire some of Cineplex's theaters.
Apparel maker Faherty explores selling minority stake.
Faherty Brand, a family-owned clothing brand and retailer, is exploring strategic options including the sale of a minority stake, Bloomberg reported.
The New York-based company, which is profitable, has tapped a financial adviser as it seeks to solicit interest from potential investors including private equity firms and family offices. Terms, including Faherty's potential valuation, couldn't immediately be learned.
EIG closes in on a multi-billion-dollar LNG acquisition. (FS)
EIG Global Energy Partners expects to announce soon a deal of several billion US dollars to buy an LNG asset in addition to a stake in an Australian project, EIG chief executive officer R. Blair Thomas said in an interview.
EIG via its unit MidOcean Energy, is currently looking to buy a 27.5% stake in the Australia Pacific LNG project in eastern Australia. The project is currently owned by ConocoPhillips with a 47.5% stake, Australia’s top energy retailer, Origin Energy, with 27.5%, and Chinese state-owned energy giant Sinopec with a 25% interest, WSJ reported.
HPS Investment Partners considers filing for a $8bn IPO. (FS)
HPS Investment Partners, the private credit firm carved out of JP Morgan in 2016, confidentially filed for an initial public offering. HPS could be valued in a listing at about $8bn
The firm submitted its registration to the US Securities and Exchange Commission more than a year ago. As a result of that filing, HPS is positioned to pursue a listing if equity capital markets become more favorable. The firm has been working with JP Morgan and Goldman Sachs on the effort, Bloomberg reported.
Canada's Brookfield raises record $28bn for infrastructure fund. (FS)
Canada's Brookfield Asset Management said on December 1 it had raised $28bn for its largest-ever fund, wagering on infrastructure assets the company believes would benefit from a shift to "deglobalization", given recent geopolitical tensions, FT reported.
The fund, raised by the group's Brookfield Infrastructure Partners arm, is the largest-ever dedicated to investing in assets such as airports, toll roads, pipelines and natural gas export plants. It is also the biggest fund ever raised by Brookfield, which manages $850bn across sectors spanning real estate, credit and insurance, renewable energy and corporate buyouts.
Brookfield sees renewable and data driving deployment for $6bn infra debt fund. (FS)
The growing capital needs of renewable energy and data infrastructure are driving the deployment of Canadian investment firm Brookfield Asset Management's third global infrastructure debt fund, which has disbursed over $3bn, half of its capital, in recent times, DealStreetAsia reported.
The fund focuses primarily on investments in North America and Europe and considers lending to projects across the renewables, utilities, transportation, data and midstream verticals.
TPG and ALTÉRRA partner on $1.5bn climate investment initiative within $10bn Fundraising. (FS)
TPG, a leading global alternative asset management firm, and ALTÉRRA, the world's largest private investment vehicle for climate change action launched at the World Climate Action Summit at COP28, today announced an aggregate $1.5bn commitment to the next generation of TPG Rise Climate private equity funds, including its new Global South Initiative.
The Global South Initiative will be managed by TPG and is purpose built to accelerate and attract institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities in the Global South.
EMEA
Kering, a multinational corporation specializing in luxury goods, completed the acquisition of a 30% stake in Valentino, an Italian luxury fashion house, from Mayhoola, a private equity firm, for €1.7bn.
“I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance. I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation that Jacopo Venturini will continue to lead,” François-Henri Pinault, Kering Chairman and CEO of Kering.
Kering was advised by Centerview Partners and Rothschild & Co. Mayhoola was advised by Intesa SanPaolo and JP Morgan. JP Morgan was advised by White & Case.
BorgWarner, an American automotive supplier, completed the acquisition of the Electric Hybrid Systems business segment of Eldor, a provider of automobile products, for €75m.
"Eldor's technologies are a great complement to BorgWarner's ePropulsion portfolio, particularly as it relates to expanding in high-voltage power electronics beyond the inverter. As we continue with our Charging Forward M&A strategy, we look forward to welcoming Eldor's talented team to BorgWarner later this year," Frédéric Lissalde, BorgWarner President and CEO.
Aldar Properties, a real estate developer, investor, and manager, completed the acquisition of London Square, a residential home developer, for £230m ($291m).
“Our recently announced international expansion strategy centres on exploring opportunities to acquire or partner with established operating platforms in our target markets. The acquisition of London Square represents our first market entry outside of the region, and is a testament to the company’s management team, governance framework, and business model which has consistently delivered strong performance. The transaction, which is synergistic in nature, gives us the ability to leverage our mutual strengths, shared values, and common approach to homebuilding to scale London Square while bringing the best of Aldar to bear in the UK’s property market, as we continue to build our foothold outside of the region," Talal Al Dhiyebi, Aldar Properties CEO.
Ares Management is advised by Rothschild & Co.
The takeover of Everton FC by 777 Partners is facing increasing scrutiny from Premier League officials studying the investment firm's suitability to own a major football club, Bloomberg reported.
Decision-makers in the Premier League have begun adopting a more sceptical stance in recent weeks after questions were raised about the finances of Miami-based 777 Partners.
The Prax Group, an independent oil refining, storage, distribution, sales conglomerate dealing in crude oil, petroleum products & bio-fuel, agreed to acquire a 36.36% stake in National Petroleum Refiners of South Africa refinery, a joint venture inland refinery with Sasol Oil and Total as the main partners from, TotalEnergies, a French multinational integrated oil and gas company. Financial terms were not disclosed.
"The signing of this agreement is the first step towards our entry into Africa. This will provide us a solid platform from which to execute our future growth strategy. The acquisition marks another significant milestone for the Prax Group, and will create unique opportunities across the South African supply chain, meeting the needs of customers and communities for years to come," Sanjeev Kumar Soosaipillai, The Prax Group Chairman and CEO.
Infrastructure funds prepare sales of airports in UK and Italy.
A group of infrastructure investors around Europe are working on the sale of their stakes in European airports, leveraging on the recovery of travel in the wake of the Covid-19 pandemic.
Among the largest of the airports that may see a change of ownership as soon as 2024 is Edinburgh. Its owner Global Infrastructure Partners is working on the sale of its majority stake in a process that may value the airport at over $2.72bn.
AGS Airports, which oversees operations at Aberdeen, Glasgow, and Southampton airports and is owned by Macquarie Group and Ferrovial, may also follow. Investors in 2i Aeroporti, which has a stake in the operator of Milan's Linate and Malpensa airports, are also weighing a sale. The minority investors in 2i Aeroporti, Ardian and Crédit Agricole Assurances, have hired Mediobanca and Crédit Agricole CIB to find a buyer for their 49% stake in the company, Reuters reported.
Blackstone, EQT, CVC bid for Deutsche Fußball Liga TV rights. (FS)
Blackstone, EQT Group and CVC Capital Partners are submitting bids for a minority stake in a vehicle that holds broadcasting rights for Germany’s top football leagues. DFL Deutsche Fußball Liga is seeking bids of up to €1bn ($1.1bn) for a stake of as much as 8%.
Advent International also is interested in a stake. Bidders are also bound to commit to an eight-year minimum holding period and bidders must come from Western nations, ruling out investment from the Middle East or China, Bloomberg reported.
Credit Agricole seeks Worldline stake to bolster troubled partner.
Credit Agricole is exploring building a stake in Worldline as it looks for ways to help stabilize its struggling payments partner. Worldline shares surged as much as 9.1%, Bloomberg reported.
The French lender has been discussing a potential move to buy stock in Worldline after its shares plunged in recent weeks. Credit Agricole is seeking to play a role in shoring up the business, which has a market value of about €4.1bn ($4.5bn).
BPCE explores options for Natixis Asset Management arm.
French financial group BPCE is exploring strategic options for its $1.2tn Natixis Investment Managers business, Bloomberg reported.
BPCE has been working with advisers to study a range of possibilities for the asset manager. It's open to selling a majority stake though could also opt to divest a minority holding.
Commerzbank seeks wealth fund investor in Asia, Mideast. (FS)
Commerzbank is talking to sovereign wealth funds about becoming an anchor investor to shore up its defenses against any opportunistic takeover bid and preserve its independence, Bloomberg reported.
Commerzbank Chief Executive Officer Manfred Knof has approached state-backed funds from Asia and the Middle East in recent weeks to gauge their interest in buying a stake of up to 9.9%. The bank sees an opportunity to speak with investors as it has recently unveiled a new strategy and its share price is up.
US forces Saudi fund to exit Altman-backed AI chip startup. (FS)
The Biden administration has forced a Saudi Aramco venture capital firm to sell its shares in a Silicon Valley AI chip startup backed by OpenAI co-founder Sam Altman, Bloomberg reported.
Prosperity7, a lead investor in a funding round that raised $25m for Rain AI in 2022, sold its shares in the startup after a review by the Committee on Foreign Investment in the United States. The agency, the primary US watchdog for deals with national security implications, instructed the Saudi fund to unwind that deal sometime over the past year.
UK pension provider PIC is said to explore takeover interest.
The UK's Pension Insurance, an insurer and provider of bulk annuities to companies including Walgreens Boots Alliance, is exploring a sale, Bloomberg reported.
The company has tapped advisers to explore its options, which could also include offering up a minority stake or merging with a rival pension provider. An outright sale could value PIC at more than £5bn ($6.15bn).
Britain intervenes to refer Abu Dhabi-backed Telegraph deal to regulators.
Britain will intervene in the acquisition of the Telegraph Media Group by Abu Dhabi-backed RedBird IMI on public interest grounds, with regulators on Thursday asked to examine the deal's impact on accuracy and freedom of expression, Reuters reported.
The right-leaning Daily Telegraph broadsheet and Spectator magazine, favourites of politicians in the ruling Conservative Party, are being sold after Lloyds Banking Group in June seized control following a long-running dispute with owners, the Barclay family.
UAE's PureHealth seeks to raise $1bn in Abu Dhabi IPO.
PureHealth Holding, a health-care platform controlled by one of Abu Dhabi's wealth funds and its largest conglomerate, plans raise almost $1bn from an initial public offering in the United Arab Emirates' capital, Bloomberg reported.
The firm plans to offer 1.11bn shares, or a 10%, at AED 3.26 ($0.88754) a share. The subscription period starts on December 6 and will end on December 11 for both institutional and retail investors.
UAE set to announce $30bn climate finance fund at COP28. (FS)
The United Arab Emirates is preparing to announce a new $30bn climate-focused investment fund during COP28 with backing from some of the world's biggest investors including BlackRock, Reuters reported.
UAE would provide the bulk of the money and private equity firm TPG and infrastructure investor Brookfield would also be involved. Money would be overseen by UAE-backed investor Lunate Capital.
Eurazeo raises €3.2bn for private debt. (FS)
Eurazeo, an European investment group, has announced the closing of its sixth direct lending fund, including €2.1bn ($2.3bn) from third parties, the initial target of €2bn ($2.2bn). Adding in the €900m ($980m) raised from retail investors, the total scale of Eurazeo's Private Debt program reaches €3.2bn ($3.5bn).
Since its inception, the program is already over 70% deployed. The Private Debt VI fund has invested in over 50 companies across Europe, operating in resilient, non-cyclical sectors such as business services, healthcare, specialized financial services and information technology.
Lazard taps BofA's Adam Cady for financial sponsors coverage. (FS, People)
Lazard has hired Bank of America managing director Adam Cady to cover some of its largest private equity and alternative asset manager clients, Bloomberg reported.
New York-based Cady, who was last year named head of Bank of Americas' financial sponsors group, is set to join Lazard in a senior role in February after a standard period of leave.
APAC
Brookfield said on December 1 that it would consider the implications of Australia's new green energy policy on Origin Energy before making a new offer should its $10.6bn bid for the firm be voted down by the takeover target's shareholders on December 4, Reuters reported.
The government plan announced last week to underwrite a massive expansion of clean energy in the electricity market, where Origin is a major player, has scrambled the outlook for electricity prices, future investment and existing plants. Brookfield Australia's head of renewable energy and transition, Luke Edwards, said should the shareholder vote fail, the private equity firm would further examine the government's proposed expansion to the Capacity Investment Scheme (CIS) and National Energy Transformation Partnership (NETP).
Origin Energy is advised by Barrenjoey Capital Partners, Jarden, and Herbert Smith Freehills (led by Rebecca Maslen-Stannage). EIG is advised by JP Morgan and FGS Global (led by Kelly Kimberly). Brookfield Renewable is advised by Citigroup, Allens, and White & Case (led by Christopher Flynn). GIC is advised by SEC Newgate.
SiTime, a precision timing company, completed the acquisition of the clock products business of Aura Semiconductor, a semiconductor manufacturer, for $268m.
“SiTime’s vision is to transform all categories of the $10bn timing market. Since our IPO in 2019, our singular focus has been on solving the most difficult problems in the oscillator category, and that has paid off. In these four years, we’ve grown from 60 to 150 unique products, and the price of our highest-value oscillator has grown tenfold. With this acquisition, we bring our focus to the category of clocks, adding 20 best-in-class clocks now, and another 20 by the end of 2024," Rajesh Vashist, SiTime Chairman and CEO.
SiTime was advised by Barclays and Green Flash Media. Barclays was advised by Sullivan & Cromwell.
Arkema, a manufacturer of specialty materials, completed the acquisition of a 54% stake in PI Advanced Materials, a business of producing plastic films, from Glenwood Private Equity, an alternative investment firm, for €728m ($796m).
“PIAM is an outstanding company with a unique technological positioning, state of the art manufacturing facilities and invaluable customer relationships. This acquisition is fully aligned with our strategy to be at the forefront of high performance materials for high growth end markets supported by megatrends such as electric vehicles and advanced electronics,” Thierry Le Hénaff, Arkem Chairman and CEO.
Arkema was advised by Morgan Stanley. Glenwood Private Equity was advised by JP Morgan.
Fenix 360, a global social media company incorporated in Singapore that is designed to provide artists and creators with enhanced compensation, tools and control, to go public via a merger with DUET Acquisition, a special purpose acquisition company incorporated, in Delaware in a $610 deal.
"The unique value proposition of FENIX360 as a hyper-agile and asset-light engagement platform with lucrative rewards for artists and fans alike provides both FENIX360 and DUET an unparalleled opportunity to reshape the creative and media space. Tapping into the substantial digital advertising and digital commerce ecosystem will bolster FENIX360's revenue generation abilities," Dharmendra Magasvaran, DUET Acquisition Co-CEO.
Fenix 360 is advised by Lucosky Brookman. DUET Acquisition is advised by Nelson Mullins Riley & Scarborough.
Aviat Networks, a company in wireless transport and access solutions, completed the acquisition of the wireless transport business from NEC, a company in the integration of IT and network technologies, for $70m.
"We are pleased to close this transaction and further solidify our position as the leading wireless transport specialist company. Now with the two businesses' products and services together, Aviat will be able to offer a superior solution to its combined customers around the world. We are eager to bring our best-in-class services and operations to the customers joining Aviat. We are committed to our goal of providing a better customer experience for all customers as a result of this transaction. Additionally, we welcome the employees joining Aviat from NEC. We look forward to building a great business together," Pete Smith, Aviat Networks CEO.
Spectrlite UK, a holding company, agreed to acquire a 80% stake in Ncell Axiata, a private mobile service provider operating in Nepal, from Axiata Group Berhad, a telecommunications company, for $50m.
"Axiata has been in Nepal for seven years, working alongside hard-working colleagues in Ncell. However, the increasing challenges in the operating environment represents a fundamental shift. It has led the Axiata board to conclude, after a thorough process, that our foray in Nepal cannot continue due to the unfavourable conditions for Axiata, the uncertain regulatory and tax environment and the looming risks associated with the expiry of the mobile license in 2029. The offer we received has enabled and accelerated a clean exit for Axiata. Ncell retains full responsibility for its business and any of its liabilities, while The Purchaser will further indemnify Axiata against existing and future Nepalese tax claims in relation to Ncell. We believe this decision is in the best long-term interests of all our shareholders," Vivek Sood, Axiata CEO & Managing Director.
SAIC Motor, a Chinese state-owned automotive design and manufacturing company, and JSW Group, an Indian multinational conglomerate with diverse businesses including steel, energy, infrastructure, cement and paints, formed a joint venture to accelerate the transformation and growth of MG Motor in India. Financial terms were not disclosed.
"The automobile business is a global industry, and like in any other similar industry, access and collaboration are crucial for its healthy growth. SAIC has always adhered to the 'win-win cooperation' approach while steadily improving our core capabilities and expanding our scale of production and sales. In the growing Indian automotive market, both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India," Wang Xiaoqiu, SAIC Motor President.
Hahn & Co weighs sale of South Korea's SK Shipping.
South Korean buyout firm Hahn & Co is reviewing strategic options for its majority stake in SK Shipping Co, including a sale that could value the company at about $10bn including debt, Bloomberg reported.
Hahn & Co is working with financial advisers as it weighs a potential partial or full sale of its stake. Other options include selling individual divisions of the Seoul-based shipping company. Hahn & CoO had earlier this year evaluated the sale of SK Shipping's tanker business.
Adani to take call on Wilmar JV stake divestment in three months.
Adani Group plans to spend 7tr rupees ($84bn) over the next decade on infrastructure projects, Chief Financial Officer Jugeshinder Singh said.
The billionaire Gautam Adani-led group will also decide on divesting its stake in Adani Wilmar, its joint venture with Singapore's Wilmar International, in the next three months, Singh said on the sidelines of the Trust group event in Mumbai. Adani Group holds a 44% stake in the JV and has been considering a potential stake sale for a few months, Reuters reported.
Evergrande creditors demand controlling stakes in new proposal.
A group of offshore creditors to China Evergrande Group is demanding controlling equity stakes of the property developer as well as its two Hong Kong subsidiaries as part of discussions on the firm's revamped restructuring proposal, Bloomberg reported.
Their offer is the latest twist before a court hearing on Monday, when the distressed developer faces the risk of a liquidation order unless it submits a convincing restructuring plan. Creditors are requesting their debt be swapped for controlling stakes after Evergrande proposed offering 17.8% of the parent and 30% of each of the subsidiaries — Evergrande Property Services Group and China Evergrande New Energy Vehicle Group.
Bahrain's wealth fund to become 'engine for deals' under new CEO. (FS)
Bahrain's sovereign wealth fund plans to sell stakes in at least four companies next year as it seeks to become a more active investor, Bloomberg reported.
Mumtalakat Holding is "looking to increase our market activity. We are aiming to do at least four listings or market offerings of different parts of the Mumtalakat portfolio in 2024 on the main exchange and on alternative exchanges we have," Shaikh Salman bin Khalifa, Bahrain finance minister and chairman.
AirAsia parent Capital A weighs IPO of Philippine operations. (FS)
AirAsia parent Capital A said on Thursday it was exploring financing options for its Indonesian and Philippine operations, including a potential initial public offering for AirAsia Philippines in the near term, DealStreetAsia reported.
Bursa Malaysia stock exchange had classified both AirAsia X and Capital A as PN17, a tag given to financially distressed company, last year. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.
SenseTime mulls raising fund for auto, health care units.
SenseTime Group is exploring carving out its autonomous driving and health care units for separate fundraising as the Chinese AI company looks to expand these businesses, Bloomberg reported.
The Hong Kong-listed firm has approached potential investors for the funding plans. SenseTime is looking to sell partial stakes in the units to other companies in the industry, followed by financial investors at a later stage.
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