AMERICAS
Clearlake Capital Group, an investment firm, operating integrated businesses across private equity, credit, and other related strategies, completed the acquisition of Intertape Polymer Group, a packaging products and systems company which supplies retailers and manufacturers, for $2.6bn.
"We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems. Clearlake provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability, and market expansion," Greg Yull, IPG President and CEO.
Intertape Polymer Group was advised by Morgan Stanley, National Bank Financial, Fasken, Paul Weiss Rifkind Wharton & Garrison and LodeRock Advisors. Clearlake Capital is advised by Credit Suisse, Deutsche Bank, Goldman Sachs, Kirkland & Ellis, Stikeman Elliott and Lambert & Co. Debt financing was provided by Credit Suisse, Detusche Bank and Wells Fargo Securities.
SMBC, one of the largest industrial, energy and infrastructure lenders in the world, agreed to invest in Marathon Capital, an independent investment banking firm. Financial terms were not disclosed.
“Marathon Capital’s partnership with SMBC is a pivotal strategic milestone, enabling us both to create bold sustainability solutions for our clients through enhancements across various capabilities, as well as the expansion of our teams,” Ted Brandt, Marathon Capital Founder and CEO.
Marathon Capital is advised by Scheumack & Co, Neal Gerber & Eisenberg and Rimon Law. SMBC is advised by Shearman & Sterling and Skadden Arps Slate Meagher & Flom.
FFL Partners, a private equity firm, completed the investment in Abacus Group, a financial services-focused IT managed services provider specialising in hedge fund, private equity, venture capital and family office clients. Financial terms were not disclosed.
"The increasing focus on cybersecurity, transition to the cloud, need for enhanced data and analytics, and consistent difficulty of attracting and retaining IT talent only increases the importance of a world-class MSP like Abacus. This is even more relevant in highly regulated industries like financial services, where the specialization and deep industry knowledge Abacus brings should continue to help the company expand its private equity, venture capital, family office and wealth management client base," Cas Schneller, FFL Managing Partner.
Abacus was advised by Guggenheim Partners, Lazard, Latham & Watkins and Lowenstein Sandler. FFL Partners was advised by Kirkland & Ellis and Stanton PRM.
Investment funds TPG, Climate Adaptive Infrastructure and Trilantic agreed to invest $750m in Intersect Power, a clean energy company bringing innovative and scalable low-carbon solutions to its customers in retail and wholesale energy markets.
"Intersect’s proven delivery of large, scalable clean energy projects and differentiated business model positions the Company to lead the way into new markets and clean energy products, as our economy continues to decarbonize," Ed Beckley, TPG Partner.
Intersect Power is advised by Bank of America and Orrick Herrington & Sutcliffe. TPG is advised by PJT Partners and Kirkland & Ellis.
Whitecap Resources, a Canadian public oil company based in Calgary, agreed to acquire the Canadian shale assets of ExxonMobil, an American multinational oil and gas corporation, and Imperial Oil, a Canadian petroleum company, for $1.5bn.
The assets include 567k net acres in the Montney shale, 72k net acres in the Duvernay shale and additional acreage in other areas of Alberta. Net production from these assets is about 140m cubic feet of natural gas per day and about 9k barrels of crude, condensate and natural gas liquids per day.
ExxonMobil and Imperial Oil are advised by RBC Capital Markets. Whitecap Resources is advised by National Bank Financial. Debt financing is provided by National Bank Financial and TD Securities.
Gaming And Leisure Properties, a real estate investment trust specializing in casino properties, agreed to acquire two Rhode Island casino properties from Bally's, a global casino-entertainment company, for $1bn.
"Bally's is excited to enter into this transaction with GLPI, further strengthening our growing relationship. The transaction will provide the Company with significant, long-term liquidity, ensuring that Bally's is best positioned to continue executing its capital and strategic plan, as well as to capitalize on future opportunities presented in the market," Bobby Lavan, Bally's CFO.
Bally's is advised by Jones Day and Kekst CNC. Gaming And Leisure Properties is advised by JCIR.
Highview Capital-backed Watterson, a national facility services company, agreed to acquire Bassett Creek Services, a provider of restoration and renovation services, from Gladstone, a private equity firm. Financial terms were not disclosed.
"Over the past four years, we've built Basset Creek Services into one of the nation's leading restoration and renovation services platforms through our unwavering focus on consistently delivering excellence to our customers. This partnership between BCS and Watterson will allow us to build the national leader in restoration recovery services while providing continuity for our customers, brands, and employees," Daniel O'Brien, Bassett Creek Services CEO.
Bassett Creek Services is advised by Raymond James. Highview Capital is advised by FGS Global.
Vertafore, a modern insurance technology firm, completed the acquisition of MGA Systems from Polaris Partners, a private equity firm. Financial terms were not disclosed.
"As the MGA market continues to grow, it is more important than ever for MGAs to have integrated technology solutions that strengthen their ability to make informed risk and pricing decisions. MGA Systems has been at the forefront of the industry's work in this area. I am very pleased to welcome the MGA Systems team into the Vertafore family, along with the wealth of talent, passion, and expertise they bring," Amy Zupon, Vertafore CEO.
MGA Systems was advised by Raymond James. Vertafore was advised by Next PR.
Morningstar, an American financial services firm headquartered in Chicago, completed the acquisition of Aquantix, a Montreal-based technology company that develops and delivers property-level climate risk data services for the real estate and mortgage lending industries. Financial terms were not disclosed.
"Real estate is an asset class directly impacted by increasing physical climate risks. With the addition of the Aquantix team and their technology, we are fast-tracking our asset-level data collection and developing innovative climate-focused solutions for the commercial and residential real estate market. We are excited to bring the Aquantix team into the Morningstar Sustainalytics family and look forward to collaborating with Teranet," Azadeh Sabour, Morningstar Sustainalytics Senior Vice President of Climate Solutions.
Evolent Health, a health management services organization that integrates the technology, tools and on-the-ground resources, agreed to acquire IPG, a technology and services company providing surgical management solutions for musculoskeletal conditions, from TPG Growth, a private equity firm, for $462m.
"Today's announcement represents an important step in Evolent's journey to become a national leader in value-based specialty care solutions. The acquisition of IPG will expand Evolent's specialty portfolio, add new customers, and increase our commercial insurance revenue mix. IPG is a leader in surgical cost management solutions with a focus on musculoskeletal cost and quality and adds unique clinical value and an enhanced financial profile to support our mission for our patients, providers, payers and shareholders," Seth Blackley, Evolent Health Chief Executive Officer and Co-Founder.
Index Ventures, a venture capital firm, led a $100m Series C round in Pave, a real time compensation platform, with participation from Andreessen Horowitz, YC Continuity Fund, LocalGlobe, Craft Ventures, Original Capital, Backend Capital and Contrary Capital, Jeff Weiner and Tudor Havriliuc.
"The Pave journey has just barely started. There are four billion participants in the global workforce, and compensation is a guessing game for every single one of them. We will not stop until every single person in the world knows their value and earns what they deserve," Matt Schulman, Pave Founder and CEO.
Lindsay Goldberg, a private equity firm, agreed to invest in MMS Holdings, a data-focused contract research organization. Financial terms were not disclosed.
“We are delighted to have found a private equity partner who both values our unique culture and who can help us scale our business, as we grow to be the best in class. Lindsay Goldberg has decades of experience in actively building healthcare businesses and working collaboratively with founders. We are proud to have a partner with a shared vision and deep experience in successfully growing founder-led businesses,” Uma Sharma, MMS Founder and CEO.
Byju’s said to offer over $1bn for 2U to expand in US.
Indian online-education provider Byju’s has offered to buy 2U in a cash deal that values the US-listed edtech company at more than $1bn, Bloomberg reported.
Byju’s made the offer of about $15 a share to 2U’s board last week. The offer represents a 61% premium to 2U’s closing price of $9.30 on the Nasdaq on Tuesday and gives the Lanham, Maryland-based company an enterprise value of about $2bn.
Telus announces agreement to acquire shares of Telus International. (FS)
Telus, a Canadian multinational publicly traded holding company, announced that its indirect, wholly-owned subsidiary has entered into a purchase agreement with an entity affiliated with Baring Private Equity Asia relating to the acquisition by Telus of 3m multiple voting shares in the capital of Telus International, a customer experience innovator.
“Following thoughtful consideration, it is our strong belief that this represents an attractive opportunity to invest further in Telus International. This share purchase is reflective of our strong, ongoing confidence in the continued prospects and robust profitable growth trajectory of the Telus International organization, and demonstrates our continued support for our Telus international team and their strategic objectives,” Darren Entwistle, Telus President and CEO.
Chemical maker Huntsman is in talks to sell textiles unit to SK Capital. (FS)
US chemicals group Huntsman is in advanced talks to sell its textiles unit to private equity firm SK Capital Partners, Bloomberg reported.
The groups are discussing a deal that would value the business at less than $1bn. A final decision hasn’t been made and Huntsman could elect to keep the unit.
ARCH Venture Partners closes $2.975bn Fund XII. (FS)
ARCH Venture Partners has closed ARCH Venture Fund XII with $2.975bn to invest in the creation, development and funding of early stage biotechnology companies.
ARCH investments made from Fund XII will reflect the firm's focus on companies formed around breakthrough technologies. This means investing in early stage biotechnology companies with potential to solve some of the biggest health challenges in areas including infectious disease, mental health, immunology, oncology, neurology, age-related diseases, manufacturing, clinical trials, genomic and biological tools, data sciences, and ways to reimagine diagnostics and therapies.
Rotunda Capital closes oversubscribed Fund III at $405m. (FS)
Rotunda Capital Partners has closed Rotunda Capital Partners Fund III with $405m in total capital commitments. The fund was oversubscribed above its initial target of $295m.
Fund III received capital commitments from a diverse set of investors, including public pensions, corporate pensions, insurance companies, healthcare companies, multi-manager funds, consultants, and family offices. Rotunda is especially thankful for the continued support by way of fund commitments from several former Rotunda portfolio company executives and family-founders with whom we have partnered in the past.
Top Goldman Sachs M&A banker Michael Carr retiring from firm. (People)
Top Goldman Sachs Group dealmaker Michael Carr is retiring from the firm, Bloomberg reported.
EMEA
Meggitt, a British international company specialising in components and sub-systems for the aerospace, defence and selected energy markets, rose after Britain said national security concerns tied to the aerospace supplier’s agreed £6.3bn ($7.7bn) sale to US-based Parker-Hannifin have been allayed, Bloomberg reported.
The government said late Tuesday that Business Secretary Kwasi Kwarteng is minded to accept legally binding undertakings given by Parker.
Meggitt is advised by Bank of America, Morgan Stanley, Rothschild & Co, Slaughter & May and FTI Consulting. Parker-Hannifin is advised by Citigroup, Freshfields Bruckhaus Deringer, Jones Day and Brunswick Group. Debt financing is provided by Citigroup. Citigroup is advised by Weil Gotshal and Manges.
Joffre Capital, a technology-focused investment firm, agreed to invest $2.2bn in Playtika, an Israel-based digital entertainment company that specializes in the development and publication of mobile casino games.
In February this year, Playtika announced that it was examining different strategies for maximizing its value to shareholders. "As part of the process, the Board intends to consider a full range of strategic alternatives, which could include a sale of the company or other possible transactions," the announcement said.
Samsung, a producer of electronic devices, completed the acquisition of Cynora, a display company, for $300m.
As part of the deal, Samsung acquired Cynora’s intellectual property and technology but not its engineers. The Bruchsal, Germany-based company terminated its workforce in recent weeks as part of the transaction.
Czech firm PPF aims to exit China, wants partners for Europe acquisitions. (FS)
Czech investment group PPF, controlled by the wife of billionaire founder Petr Kellner who died last year, aims to divest its once flagship consumer lending business in China and focus acquisitions on Europe, Reuters reported.
"We are trying to find a strategic partner there (in China) who will gain majority and following that will completely take over the firm, because we believe that under current conditions it is impossible to operate in China," Jiri Smejc, PPF CEO.
De Nora, holders raise $501m in rare European IPO.
Industrie De Nora and its backers raised €474m ($501m) in an initial public offering, with the green-hydrogen specialist defying a broad listings slump, Bloomberg reported.
The company priced its share sale at €13.50 ($14.27), at the bottom end of an initial range, for a market value of €2.7bn ($2.85bn). De Nora scaled back its valuation from an original target of €5bn ($5.3bn) as roiling markets spooked investors.
APAC
British International Investment, a development finance institution, LeapFrog Investments, a private investment firm, Asian Development Bank, an international development finance institution, and Premji Invest, a venture capital firm, led a $112m funding round in Shubham Housing Development Finance.
“Access to quality housing is a critical step in improving sanitation, delivering clean water. LeapFrog is committed to Shubham’s vision of helping deliver home ownership to thousands of low-income Indian families for the first time," Michael Fernandes, LeapFrog Senior Partner.
Shubham was advised by Nomura.
Corun, an energy storage solutions provider, agreed to acquire a 30% stake in Jiangxi Dingsheng New Material Technology, a lithium-ion battery materials developer, for $167m.
“The signing of this agreement will help speed up our strategic transition, optimise resource allocation, improve management, and expand the scale of our core battery business. It is also beneficial to ensure the continuous development of CHS’s hybrid power business,” Corun.
Funding Societies, Southeast Asia’s largest digital financing platform for small and medium-sized enterprises, agreed to acquire CardUp, a provider of payment solutions. Financial terms were not disclosed.
CardUp's payment services will complement Funding Societies' lending products, to offer a unified financial experience for SMEs across the region, enabling SMEs to manage and pay expenses, receive payments, and borrow funds all within one seamless digital platform.
EQT-backed HMI weighs stake sale at SGD1bn valuation. (FS)
HMI Group, a Singapore-based regional health care provider, is exploring selling a minority stake that could value the company at about SGD1bn ($721m), Bloomberg reported.
The company, which is backed by Swedish buyout firm EQT, is working with a financial adviser on the potential offering of as much as a 30% stake. HMI Group plans to issue new shares and use the proceeds for expansion and acquisitions.
Equinix, STT among bidders for Time Dotcom’s data centers. (FS)
US-based investors DigitalBridge Group, I Squared Capital-owned BDx and Equinix are among potential suitors for the data center business of Malaysia’s Time Dotcom, Bloomberg reported.
Stonepeak-backed Digital Edge and Temasek Holdings Pte’s ST Telemedia Globe Data Centres are also among the possible bidders. The suitors are conducting due diligence on the assets, known as Aims Data Centre, as they weigh making binding offers.
Tianqi Lithium seeks up to HKD1.7bn in Hong Kong listing.
Tianqi Lithium, a Chinese supplier of the key material used in batteries, is planning to raise as much as HKD1.7bn ($210m) in what’s set to be Hong Kong’s biggest listing this year, Bloomberg reported.
The Chengdu-based company, which is already listed in Shenzhen, is offering 164m shares at HKD69 ($8.79) to HKD82 ($10.44) each. The price range is at a maximum 52% discount to its A-share price at Wednesday’s close. If an over-allotment option is exercised, proceeds could increase to nearly HKD2bn ($250m).
Sunwoda taps Goldman Sachs, UBS for $500m Swiss listing.
Battery maker Sunwoda Electronic is working with Goldman Sachs Group and UBS Group for a sale of global depositary receipts in Switzerland that could raise as much as $500m, Bloomberg reported.
A Swiss share sale by the Shenzhen-listed company could happen as soon as September. Sunwoda opted for a GDR sale an initiative encouraged by Beijing after previously considering a Hong Kong listing.
Manulife bids for full control of China fund JV, lured by $3.8tn market.
Manulife, Canada's largest life insurer, is seeking to bolster its presence in China's $3.8tn funds market. China's securities regulator officially accepted an application from Manulife's asset management arm recently to increase its stake in the joint venture to 100% from the current 49%, Reuters reported.
The Canadian insurer's move shows how foreign companies are positioning themselves in China as it opens up its financial services sector - from investment banking to insurance worth trillions of dollars to international competition.
FountainVest closes USD Fund IV at $2.9bn. (FS)
Asian private equity firm FountainVest Partners reportedly closed its oversubscribed fourth US dollar fund at $2.9bn, which is $100m more than its initial target.
As its latest USD fund, Fund IV followed the final closing of FountainVest’s oversubscribed third fund FountainVest China Capital Partners Fund III at $2.1bn in September 2016. Limited partners of the predecessor fund include pension funds, sovereign wealth funds, insurance companies and other institutions from North America, Europe, Australia, Asia and the Middle-East.
Voyagers Capital holds first close of debut USD fund. (FS)
China’s Voyagers Capital, a newly established healthcare investment firm, held the first closing of its maiden US dollar fund. The firm did not disclose the size of the first closing, nor the fundraising target of the fund.
“We are determined optimists. We’re calmer, believing in the intrinsic value of assets, when most investors are staying on the sideline. Although the Covid-19 pandemic has slowed down the dealmaking pace, we have gained more time to think through investment decisions. We often reflect on our strategies when the market competition intensifies, in our pursuit of truly valuable and differentiated innovations,” Voyagers Capital.
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