AMERICAS
Private equity firm Francisco Partners and Evergreen Coast Capital, an affiliate of Elliott Management, completed the acquisition of LogMeIn, a provider of cloud-based connectivity, for $4.3bn. The all-cash transaction represents a premium of approximately 25% to LogMeIn's unaffected closing stock price on September 18, 2019.
"This transaction acknowledges the significant value of LogMeIn and provides our stockholders with a meaningful and certain cash offer at a compelling premium. Together, Francisco Partners and Evergreen are committed to addressing the unique needs of both our core and growth assets. We believe our partnership with Francisco Partners and Evergreen will help put us in a position to deliver the operational benefits needed to achieve sustained growth over the long term," Bill Wagner, LogMeIn President and Chief Executive Officer.
LogMeIn was advised by JP Morgan, Qatalyst Partners and Latham & Watkins. Financial advisors of LogMeIn were advised by Debevoise & Plimpton and Morrison & Foerster. Elliott and Francisco Partners were advised by Barclays, Deutsche Bank, Jefferies & Company, Mizuho Securities, RBC Capital Markets, Gibson Dunn & Crutcher, Kirkland & Ellis and Paul Hastings. Debt financing was provided by Barclays, Deutsche Bank, Jefferies & Company, Mizuho Securities and RBC Capital Markets.
Clayton Dubilier & Rice agreed to acquire Epicor Software, an enterprise resource planning provider, from KKR for $4.7bn.
"Epicor's reputation for quality and performance, and its impressive portfolio of next-generation cloud products, position the company well to accelerate growth in the coming years. We look forward to partnering with the Epicor management team to further expand Epicor's product portfolio as well as make strategic acquisitions to meet customers' evolving digital transformation needs," Jeff Hawn, CD&R Operating Partner.
Clayton is advised by UBS and Debevoise & Plimpton. KKR is led by Bank of America Merrill Lynch, Barclays, Jefferies & Company and Simpson Thacher & Bartlett.
Ionis Pharmaceuticals, a biotechnology company based in Carlsbad, California, agreed to acquire the remaining 24% stake in Akcea Therapeutics, a development and commercialization company, for $500m.
"This acquisition is another step forward in Ionis' evolution and creates a stronger, more efficient organization to the benefit of all stakeholders. We believe becoming one company – with one vision and one set of strategic priorities, led by one team – will deliver significant strategic value, enhancing the future success of our company, accelerating our next phase of growth and positioning us to most effectively deliver our medicines to patients. Following the completion of the transaction, Ionis will retain more value from Akcea's rich pipeline and commercial products, further strengthening our financial position and supporting continued investments in our future," Brett Monia, Ionis CEO.
Akcea Therapeutics is advised by Cowen & Company and Ropes & Gray. Ionis is advised by Goldman Sachs, Stifel and Skadden Arps Slate Meagher & Flom.
Thai Union, a Thailand-based producer of seafood-based food products, agreed to acquire the remaining 75% stake in Red Lobster, an American casual dining restaurant chain, from private equity firm Golden Gate Capital. Financial terms were not disclosed.
"We are thrilled to deepen our relationship with Thai Union, a long-term strategic supplier to Red Lobster and an investment partner for the last four years. Our organization will also benefit from the tremendous international restaurant and hospitality expertise brought by Seafood Alliance. I want to thank Golden Gate Capital for their unwavering support over the past six years and particularly over the past five months," Kim Lopdrup, Red Lobster CEO.
Thai Union is advised by PJ Solomon and Allen & Overy. Golden Gate Capital is advised by Guggenheim Partners, Kirkland & Ellis, Nob Hill and Sard Verbinnen & Co.
Sanofi, a global biopharmaceutical company, announced that it intends to commence the $3.7bn tender offer to acquire all of the outstanding shares of common stock of Principia Biopharma, a late-stage biopharmaceutical company, without interest thereon and net of any applicable withholding taxes.
The offer is scheduled to expire on September 25, 2020, unless it is extended in accordance with the merger agreement and the applicable rules and regulations of the US Securities and Exchange Commission.
Principia Biopharma is advised by Bank of America Merrill Lynch, Centerview Partners and Cooley. Centerview Partners is advised by Goodwin Procter. Sanofi is advised by Evercore and Weil Gotshal and Manges.
The Blackstone Group agreed to invest $300m in Tricon Residential, a rental housing company focused on serving the middle-market demographic in North America.
"This investment in Tricon illustrates Blackstone Real Estate's confidence in our business fundamentals and the value in our stock. Blackstone inherently understands our business and is exceptionally well-positioned to help us bring our tech-enabled operating platform to its full potential. We are excited to have the support of one of the world's largest real estate investors, and we are confident that this investment will create significant value for both Tricon's and BREIT's shareholders," Gary Berman, Tricon Residential CEO.
Tricon Residential is advised by Morgan Stanley, Goodmans and Paul Weiss Rifkind Wharton & Garrison. Morgan Stanley is advised by Skadden Arps Slate Meagher & Flom. Blackstone is advised by Davies Ward Phillips & Vineberg and Simpson Thacher & Bartlett.
Spire Capital Partners, a New York-based private equity firm, completed the investment in Advocate Networks, a technology business management company. Financial terms were not disclosed.
"Tim Wise and Scott Fogle have built an incredible company and assembled a deeply talented management team that has grown to become the leader in managed services for TBM and TEM," David Schaible, Spire Capital Partner.
Advocate Networks was advised by Citizens Capital Markets and Barnes & Thornburg. Spire Capital Partners was advised by Eisner. Debt financing was provided by Synovus Bank.
Arco Platform, an educational software provider, agreed to acquire Escola da Inteligência, a solution in social-emotional learning in Brazil, for $89m.
"EI's team is proud to be joining Arco, a company that we admire and that has the same focus on quality that we do. This deal will combine the leading company in cognitive solutions with the leader in social-emotional learning. Together we will continue writing a successful story for EI, as this deal unlocks cross-sell opportunities and accelerates our technology offering," Camila Cury, EI CEO.
Escola da Inteligência is advised by BTG Pactual and Machado Meyer Sendacz e Opice Advogados. Arco Platform is advised by Riza Capital and Lobo de Rizzo.
Nestle Health Science, a nutritional therapy company, agreed to acquire the remaining 74.4% stake in Aimmune Therapeutics, a biopharmaceutical company, for $2bn.
"The agreement with Nestlé Health Science recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune. Delivering Palforzia, the world's first treatment for food allergy, has been a game-changing proposition in the bio-pharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy. This acquisition ensures a level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies," Jayson Dallas, Aimmune MD, President and CEO.
Aimmune is advised by JP Morgan, Lazard, Latham & Watkins and W2O Group. JP Morgan is advised by Davis Polk & Wardwell.
Numotion, a provider of mobility solutions, wheelchairs, and mobility equipment, completed the acquisition of Northland Rehab Supply, a mobility solutions provider. Financial terms were not disclosed.
"Numotion is proud to continue to grow our reach with this acquisition. This new location allows us to bring innovative mobility solutions to more individuals in the southern part of the state," Mike Swinford, Numotion CEO.
Allegro MicroSystems, a provider of sensing and power semiconductor technology, completed the acquisition of Voxtel, a privately held company specializing in advanced photonic and 3D imaging technology. Financial terms were not disclosed.
"Allegro is a market leader in magnetic sensors for the automotive market. Annually, we ship more than 1bn devices into automotive systems – 100m of which are shipped into advanced automotive safety systems, including semi-autonomous vehicle systems. Our experience, scale and design for quality uniquely position us to enhance the Voxtel LiDAR portfolio for ADAS applications, aiming to make LiDAR systems safer, cost-effective, and widely adopted features in the cars of the future," Ravi Vig, Allegro CEO.
CleanSpark, a diversified software and services company, completed the acquisition of GridFabric, a software solutions provider. Financial terms were not disclosed.
"This acquisition immediately adds to CleanSpark's revenue stream by layering-on an additional value-added SaaS product that may be implemented independently from, or in conjunction with our mPulse platform. We anticipate that the acquisition alone will add close to $1m in revenue over the span of the coming year, and significantly more in the following years as we provide resources to the GridFabric team to grow. Perhaps more importantly, this acquisition brings existing, recurring revenue and positive cashflows immediately," Lori Love, CleanSpark CFO.
D1 Capital led a $120m Series G round in Warby Parker, an American online retailer of prescription glasses and sunglasses, with participation from T. Rowe Price, Durable Capital Partners and Baillie Gifford.
The company intends to use the funds to continue to expand operations and its business reach.
Motorola Solutions, a mission-critical communications and analytics provider, completed the acquisition of Callyo, a cloud-based mobile applications provider for law enforcement. Financial terms were not disclosed.
"With Callyo’s technology, agencies can improve collaboration and enhance the evidence collection process to build stronger cases more efficiently, ultimately enabling them to better serve and keep communities safe," Andrew Sinclair, Motorola Solutions Senior Vice President and General Manager.
Haley & Aldrich, a environmental and geotechnical engineering consulting provider, completed the acquisition of Hart Crowser, a construction engineering company. Financial terms were not disclosed.
“Adding Hart Crowser’s high-end geotechnical capabilities—in particular in seismic design—and deep knowledge and experience in the Northwest and Pacific will delight Haley & Aldrich clients. This merger will allow both companies to offer our clients throughout the US an even greater depth of technical expertise across a broad range of environmental and geotechnical engineering services,” Larry Smith, Haley & Aldrich CEO.
Averhealth, a provider of substance use monitoring and treatment services, and private equity firm Five Arrows, agreed to acquire drug testing services of Treatment Assessment Screening Center, an innovator in the development and implementation of drug testing and behavioral health programs. Financial terms were not disclosed.
"This acquisition further advances Averhealth's strategy of uniting people, technology, and science to create and deliver the smartest, most innovative solutions for substance use disorder monitoring and recovery. Together, we will help more individuals safely cross the intersection of criminal justice and healthcare by supporting them to develop lasting coping and refusal skills to new use events, enhancing public safety, and equipping courts and social service agencies with intelligent data and automation," Jason Herzog, Averhealth CEO.
Groupe MACH, a private equity investment firm, completed the acquisition of La Cordee Plein Air, which operates five outdoor equipment stores that specialize in skiing, cycling and mountain sports. Financial terms were not disclosed.
"The support of a partner as seasoned as MACH Capital will allow us to close a painful chapter in our company's history and we are now beginning the transformation that will allow La Cordée to reposition itself as a key Québec player in the outdoor equipment retail segment. We are confident that MACH Capital's ambition for a return to profitability and growth for La Cordée will give new impetus to our activities," Emmanuelle Ouimet, La Cordee CEO.
AACP in the hunt for firm stakes. (FS)
Azimut Alternative Capital Partners is on the hunt for stakes in midsize private-markets investment firms, betting that the power of permanent capital and access to global markets will help it win deals,
WSJ reported.
“GPs are interested in more than just getting a check. They look for people that have experience running a firm successfully,” Jeffry Brown, Azimut Alternative Capital Partners Chief Executive.
Bain Capital’s new fund provides fee flexibility. (FS)
Bain Capital’s latest flagship fund gives some fee flexibility to investors as well as recurring opportunities to claw back their capital while lowering the threshold at which the firm can begin collecting profits,
PE News reported.
The private equity firm’s terms for investors in its Bain Capital Fund XIII fund feature a two-tiered fee structure as well as a deal-by-deal distributions format that can accelerate the firm’s receipt of its share in investment profits.
GFL lockup expired with shares hovering below IPO price.
A lockup associated with a waste management company GFL Environmental’s initial public offering expired ahead of Monday’s trading session with the shares in a recent slump,
Bloomberg reported.
GFL sold 75m subordinate voting shares in its IPO in March, valuing the company at $5.9bn. The Vaughan, Ontario-based trash hauler lowered its IPO price when investors balked at its debt load and questioned its growth prospects. The deal also took place in the early days of a market selloff sparked by the Covid-19 pandemic.
EMEA
Veolia, a resource management company, offered to acquire a 29.9% stake in Suez, a French waste and water management company, from Engie, a multinational electric utility company, for $3.5bn.
"This project will enable us to complement the solutions we provide to public and private actors in order to give them the means to sustainably reduce their environmental impact. This historic opportunity will enable us to build the French world champion in ecological transformation, while accelerating international development and strengthening the new entity's capacity for innovation. This project is part of a friendly approach, as we share the same businesses, corporate culture and values with Suez," Antoine Frérot, Veolia Chairman and CEO.
Veolia is advised by Citigroup, Messier Maris & Associes, Perella Weinberg Partners, Cleary Gottlieb Steen & Hamilton, Flichy Grange Avocats, Gide Loyrette Nouel, Hogan Lovells, Patrice Gassenbach, Peltier Juvigny Marpeau & Associes and Xavier Boucobza.
Private equity firm EQT Partners is set to acquire Colisee, an operator of nursing home facilities and home care services for elderly, from investment company IK Investment Partners. Financial terms were not disclosed.
"EQT Infrastructure has followed Colisee for a long time and we are deeply impressed by Christine Jeandel and her management team's achievements in successfully creating a leading platform in the elderly care sector. Colisee constitutes a truly thematic investment in social infrastructure, a sector where EQT has a proven track record of owning and developing strong companies," Ulrich Köllensperger, EQT Partner.
Colisee is advised by Oloryn Partners, Opleo and Plead. EQT Partners is advised by Brunswick Group. IK Investment Partners is advised by LEK Consulting, Eight Advisory, Lazard, Goodwin Procter and Maitland.
SK Capital, a private investment firm, agreed to acquire a 40% stake in Venator Materials, a global manufacturer and marketer of chemical products, from Huntsman, an American multinational manufacturer and marketer of chemical products, for $100m.
"We have had a long-term focus on the pigments industry and are delighted to have reached an agreement to purchase Huntsman's remaining interest in Venator. We are also pleased to continue strengthening the relationship we've developed with Huntsman Corporation and its President, Chairman and CEO, Peter Huntsman. Huntsman is a clear leader in the global chemical industry, and we feel privileged to acquire their ownership position in Venator, which we view as a world-class functional and speciality pigments business with a leadership position in titanium dioxide. We look forward to working with Simon Turner, CEO and President of Venator, and its board to support its growth and improvement," Barry Siadat, SK Capital Partners Co-Founder.
SK Capital is advised by BackBay Communications.
OYAK, a pension fund, completed the acquisition of Milangaz, an LPG transmission company. Financial terms were not disclosed.
"With the acquisition of Milangaz, we will now begin to serve 100% domestic capital in the entire value chain of the LPG industry, including wholesale, autogas and bottled LPG. Milangaz's high filling capacity, wide network coverage and storage capacity that is over the average will provide us with new business opportunities. In the coming period, while the number of our members will increase, we will continue to benefit from efficient investments for our members' savings and to contribute to the growth and employment targets of our country in line with our values," Süleyman Savaş Erdem, OYAK General Manager.
OYAK was advised by Citigroup.
Pinova Capital, a capital market company, completed the investment in AT Automation Technology, a Germany-based 3D sensor producer. Financial terms were not disclosed.
For Pinova, the participation in AT is already the second participation in the field of optical image processing in the fast-growing segment of industrial automation, after acquiring a stake in Sill Optics in 2019.
Pinova Capital was advised by BPG Beratungs- und Prüfungsgesellschaft.
Private equity firm Capricorn Partners completed the investment in Zeopore Technologies, a Belgian technology developer, active in the commercialization of cost-effective mesoporous zeolites for catalytic applications. Financial terms were not disclosed.
The proceeds will be used to accelerate the commercialization of its technology platform for key refining and petrochemical processes, to expand its knowledge and equipment base for industrial catalytic testing and to pursue emerging opportunities in chemical conversion of plastic waste.
Delek Group in talks about a possible merger of Ithaca Energy.
Delek Group, an Israeli conglomerate which is involved in the energy and infrastructure, is in talks with third parties about a possible merger of its North Sea energy business, as it reported a second-quarter loss.
Merging Ithaca Energy with an international group would be part of a process of turning it into a public company traded in London. Delek also expected to receive a cash payment under the plan being considered.
Implantica considers IPO on Nasdaq First North.
Implantica, a medical technology company, intends to launch an initial public offering of Swedish depository receipts on Nasdaq’s First North Premier Growth Market in Stockholm, with the first day of trading expected on September 21,
Reuters reported.
The IPO would be made at $7.5 per share, corresponding to a $336m market value before the offering. Implantica expects the IPO to generate $127m before costs, and $147m if an over-allotment option was fully exercised.
Swedbank Robur Ny Teknik, Handelsbanken Fonder, TIN Fonder, Skandia and Nordea Asset Management would be cornerstone investors, subscribing for $93m of SDRs in total.
APAC
IOOF, an Australian financial services company, agreed to acquire MLC Wealth, the wealth management unit of National Australia Bank, one of the four largest financial institutions in Australia, for $1.1bn.
"The combination of IOOF and MLC brings wide-ranging capabilities, technical expertise and a purpose-driven mindset to enable the new-era group to significantly enhance choice, accessibility and client experience," Renato Mota, IOOF CEO.
NAB is advised by Citigroup.
Investment firms BGH Capital and Ontario Teachers' Pension Plan Board offered to acquire Abano Healthcare, a New Zealand-based health care company, for $173m. The scheme price represents a 70% premium to Abano's share price.
"The dental industry is highly sensitive to the Covid-19 environment, with only limited emergency care able to be provided during level 3 and 4 lockdowns, and the pandemic has had a material impact on Abano's business and cashflows this year. While Abano is expected to recover to pre-Covid trading levels, the timing of this remains uncertain and the risks of further impacts from Covid-19 can be expected in the near term," Pip Dunphy, Abano Chair.
Abano is advised by Calibre Partners.
Cyient, a global engineering and digital technology solutions company, agreed to acquire IG Partners, a specialist Australian consulting firm. Financial terms were not disclosed.
"Mining is an important focus industry and Australia a strategic region for Cyient's growth. Mining industry is getting transformed with convergence of digital technologies. With this investment, the powerful synergy of Cyient's digital execution capabilities and IGP's advisory expertise creates a unique value proposition for the industry. This acquisition also adds to our footprint in Australia, which is an important region for our future growth," Krishna Bodanapu, Cyient Managing Director and CEO.
Cyient is advised by Perfect Relations.
Adani, a multinational Indian conglomerate company, agreed to acquire a 74% stake in Mumbai International Airport. Financial terms were not disclosed.
"The aviation industry has been severely impacted by Covid-19, setting it back by many years and has impacted the financials of Mumbai International Airport. It was therefore important that we bring in a financially strong investor in the shortest possible time," Gunupati Venkata Krishna Reddy, GVK Chairman.
Berkshire Hathaway buys stakes in five Japanese energy companies. (FS)
Warren Buffet's Berkshire Hathaway acquired c. 5% stakes in five big names in Japan with investments in energy sectors, the filing published before Tokyo market opened shows.
The disclosed investments are Mitsubishi, Mitsui, Sumitomo, Itochu Marubeni. By the end of trading day stocks of the abovementioned companies closed up between 4% and 9%. Financial terms of acquisitions were not disclosed, but it is estimated that investments are worth c. $6bn in total. The investment company said it might increase its holdings in any of five companies if the price is favorable.
"I am delighted to have Berkshire Hathaway participate in the future of Japan and the five companies we have chosen for investment. (Five companies) have many joint ventures throughout the world and are likely to have more of these partnerships," Warren Buffet.
Capital Today mulls stake sale in Three Squirrels. (FS)
Capital Today, a China-based private equity firm, mulls the sale of its 16.7% stake in Chinese online snacks retailer Three Squirrels,
WSJ reported. The stake was valued at $655m based on the stock price of Three Squirells.
Capital Today is advised by Deutsche Bank.
Foxit aims to raise $418m in STAR Market IPO.
Foxit Software, a Chinese software company that develops Portable Document Format software and tools used to create, edit, sign, and secure files and digital documents, is planning to raise $418m STAR Market IPO. The company is offering 12m common shares at $34.74 apiece. The shares have been oversubscribed 4.495 times.
Foxit plans to invest IPO proceeds to spruce up its PDF products and services, and also to develop its global sales and marketing network.
Evergrande plans an IPO of its property management unit.
Evergrande, China’s property developer, plans to complete an IPO of its property management unit in Hong Kong this year. The company is also looking to spin off other units.
Evergrande said last month it sold 28% of a property management unit for $3bn, bringing in strategic investors ahead of a possible IPO for the unit.
