Mubadala's $3bn Fortress deal clears crucial US regulatory hurdle. (FS)
Mubadala Capital's $3bn bid for Fortress Investment Group, a powerhouse investor in credit markets with a large bet on US rail infrastructure, has cleared a significant regulatory hurdle after the parties agreed to important concessions, FT reported.
The Committee on Foreign Investment in the United States had approved Fortress's sale of a majority equity interest to Mubadala, the investment arm of Abu Dhabi's almost $300bn-in-assets sovereign wealth fund.
Mubadala is advised by Ardea Partners and Shearman & Sterling (led by Sean Skiffington and Clare O’Brien). Fortress is advised by Goldman Sachs, Kirkland & Ellis (led by Christopher Gandia, Carlo Zenkner and Daniel Lavon-Krein) and Skadden Arps Slate Meagher & Flom (led by Joseph A Coco and Blair Thetford). Softbank is advised by The Raine Group, Morrison & Foerster (led by Lauren Bellerjeau and Ken Siegel) and Perez Llorca (led by Francisco Iso and Javier Bau Cabestany).
Oklo went public via a merger with AltC in an $850m deal.
Oklo, an advanced fission technology and nuclear fuel recycling company, went public via a merger with AltC, a special purpose acquisition company, in a $850m deal.
"Today is a milestone for the entire Oklo team. As one of the initial investors in the company, I've seen first-hand how Oklo has proven itself to be a clean energy leader and innovator, developing a cost-competitive go-to-market strategy, and solidifying important relationships with regulators, customers, and suppliers. There are huge growth opportunities ahead. With Jake, Caroline, and the rest of the management team at the helm, I am confident they will continue pioneering advanced fission energy solutions as a public company," Sam Altman, AltC CEO.
Oklo was advised by Guggenheim Partners, Gunderson Dettmer Stough Villeneuve Franklin & Hachigian (led by David Gammell), Pillsbury Winthrop Shaw Pittman, Gladstone Place Partners (led by Christina Stenson) and ICR. AltC was advised by Citigroup, Ocean Tomo, Cooley (led by Gareth Osterman and Kevin Rooney), Morgan Lewis & Bockius and Weil Gotshal and Manges.
United Bankshares to acquire Piedmont Bancorp for $267m.
United Bankshares, the parent company of United Bank, agreed to acquire Piedmont Bancorp, the parent company of The Piedmont Bank, for $267m.
"We are excited to bring these two great companies together. We share similar commitments to serving our customers and communities with a relationship-focused approach. The greater Atlanta area is the perfect addition to UBSI's footprint, and we look forward to being a part of the vibrant and fast-growing communities there," Richard M. Adams, Jr., United Bankshares CEO.
Piedmont is advised by Burke Stelling Group, Piper Sandler and Alston & Bird. United is advised by Raymond James, Bowles Rice and Sullivan & Cromwell.
AlTi Global to acquire Envoi.
AlTi Global, a global wealth manager, agreed to acquire Envoi, a family office focused on multi-generational family wealth with assets under management. Financial terms were not disclosed.
"I am delighted to announce that Envoi is joining AlTi as we continue to execute our strategy to become the destination of choice for families, family offices and foundations looking for best-in-class wealth management solutions and services. Envoi's Principals have worked together for decades and have built a firm with similar values to AlTi, catering to entrepreneurial and multi-generational families looking to preserve, safeguard and grow their wealth," Michael Tiedemann, AlTi CEO.
Envoi is advised by Piper Sandler and Stinson. AlTi is advised by Houlihan Lokey, Seward & Kissel and Prosek Partners.
Forza Insurance to acquire Interboro Insurance from American Coastal Insurance.
Forza Insurance, an insurance services provider, agreed to acquire Interboro Insurance, a homeowners insurance services provider, from American Coastal Insurance, an insurance holding company. Financial terms were not disclosed.
"Interboro is a strong strategic fit for Forza and SageSure. We are incredibly pleased that we have found the right purchaser and program administrator to continue Interboro's 100+ year journey. Peter N. Resnick, President of Interboro, and his talented team will complement the teams from Forza and SageSure and will be able to take Interboro to new heights," Brad Martz, American Coastal President.
Forza Insurance is advised by Howden and ACCEL Law Group. American Coastal is advised by Raymond James and Debevoise & Plimpton.
Axon to acquire Dedrone.
Axon, a global public safety technology developer, agreed to acquire Dedrone, a smart airspace security services provider. Financial terms were not disclosed.
"By combining Axon's 30-year legacy of innovation with Dedrone's cutting-edge airspace security solutions, we aim to revolutionize public safety once again. Together, we will accelerate our efforts in creating a more advanced end-to-end drone solution that enables the good drones to fly and helps ensure the bad ones don't," Rick Smith, Axon Founder and CEO.
Dedrone is advised by Tidal Partners and WilmerHale. Axon is advised by Morgan Lewis & Bockius and Sullivan & Cromwell.
Southfield Capital-backed Kelvin Group completed the acquisition of Dahms Refrigeration Services. (FS)
Southfield Capital-backed Kelvin Group, a platform dedicated to building a collaborative group of the largest independent industrial and commercial mission-critical mechanical services companies, completed the acquisition of Dahms Refrigeration Services, an industrial and commercial refrigeration services provider . Financial terms were not disclosed.
"With the acquisition of Dahms, we're enhancing our service offerings in the Mid-Atlantic market and reinforcing our position as a leader in the industry. The addition of their skilled employees brings valuable knowledge to the RD&S team, positioning us for even greater success in meeting the evolving needs of our customers," Harry Gray, Kelvin Group CEO.
Kelvin Group was advised by G2 Capital Advisors and Finn Dixon & Herling. Debt financing was provided by Crescent Capital Partners and Deerpath Capital Management.
ArcLight Capital Partners to acquire a 16% stake in Gulf Coast Express pipeline from Kinetik for $540m. (FS)
ArcLight Capital Partners, a private equity firm, agreed to acquire a 16% stake in Gulf Coast Express pipeline, a gas pipeline company, from Kinetik, a midstream operator, for $540m.
The disposal of GCX pipeline comes as a one funding source for the Durango acquisition and capital for the new gathering and processing agreement. The transaction is expected to close in the next few weeks.
Kinetik is advised by Barclays and JP Morgan.
Hexaware Technologies completed the acquisition of Softcrylic.
Hexaware Technologies, a provider of digital solutions, completed the acquisition of Softcrylic, a data consulting firm. Financial terms were not disclosed.
"The acquisition of Softcrylic aligns perfectly with our vision of becoming a dominant preferred partner for our clients' needs around customer and marketing analytics. Softcrylic's deep data capability combined with their marketing analytics expertise will enable us to help our clients unlock the power of their data and drive tangible business outcomes," Girish Pai, Hexaware Global Head – Data & AI.
Softcrylic was advised by Canaccord Genuity. Hexaware Technologies was advised by Skadden Arps Slate Meagher & Flom.
Kinetik to acquire Durango Permian for $840m.
Kinetik Holdings, a midstream operator, agreed to acquire Durango Permian, a gas producer, for $840m.
"Following on from our tremendous success with our recent Lea County, New Mexico system expansion, we are delighted to now announce this series of strategic transactions that further our expansion into New Mexico and significantly increase our footprint across the Northern Delaware Basin," Jamie Welch, Kinetik President and CEO.
Continental Finance completed the acquisition of the Today Card Portfolio from Elevate Credit and Capital Community Bank.
Continental Finance, a marketer and servicer of credit cards, completed the acquisition of the Today Card Portfolio from Elevate Credit, an online credit solutions provider, and Capital Community Bank, a full-service bank. Financial terms were not disclosed.
"We are thrilled to announce the acquisition of the Today Card Portfolio. This strategic move underscores our unwavering dedication to providing consumers with access to best-in-class bank-issued financial products. The addition of the Today Card Portfolio not only strengthens our market presence, but also adds 25k new credit card holders to the portfolio we service, comprising approximately $1.1bn in credit card receivables and 1.3m credit card accounts," Stephen McSorley, Continental Finance President.
Calpine explores options including a $30bn sale. (FS)
The investment firms that took US power plant operator Calpine, private six years ago are exploring options that include a company sale, an initial public offering or a stake divestment at a valuation of about $30bn, including debt.
Energy Capital Partners, Access Industries and CPP Investments, which acquired Calpine for $17bn in 2018, are having early-stage talks with investment banks about their exit options. A transaction would likely happen late in 2024 or early in 2025, Reuters reported.
T-Mobile, Verizon in talks to buy parts of US Cellular in a $2bn deal.
T-Mobile and Verizon Communications, are in talks to buy parts of US Cellular in separate transactions.
T-Mobile is closing in on a deal to buy a chunk of US Cellular for more than $2bn, taking over some operations and wireless spectrum licenses. Verizon's talks with the regional carrier is expected to take longer and might not result in an agreement, Reuters reported.
Gridiron Capital explores a $1.5bn sale of GSM Outdoors. (FS)
The private equity owner of Good Sportsman Marketing Outdoors is exploring a sale of the hunting and fishing gear maker that could value it at about $1.5bn, including debt.
Texas-based GSM, which is owned by Gridiron Capital, is working with investment bank R. W. Baird to gauge interest from potential buyers that include other private equity firms. Gridiron is expecting to command a valuation for GSM equivalent to more than 10 times the company's 12-month earnings before interest, taxes, depreciation and amortization of about $140m. Some potential bidders for GSM have expressed concerns about investing in a business that has an impact on wildlife and hinges on gun safety, deeming it an environmental, social and corporate governance risk, Reuters reported.
SoftBank in talks with Naver over control of Line operator LY.
SoftBank Group CEO Junichi Miyakawa said that the Japanese firm is in talks with South Korea's Naver, opens new tab over control of LY, which operates the popular messaging app Line.
Naver said last week that "very unusual" administrative guidance from the Japanese government over a data leak last year required it to reduce its control of LY, which is majority owned by a joint venture between SoftBank and Naver, Reuters reported.
Zeekr tops US IPO goal to fetch $441m.
Zeekr Intelligent Technology Holding, the high-end electric car brand under Zhejiang Geely Holding Group, sold shares in an expanded initial public offering at the top of a marketed range to fetch about $441m.
In the biggest US IPO by a China-based company since 2021, Zeekr sold 21m American depositary shares for $21 apiece on Thursday. The company marketed 17.5m ADS, which represent 10 of the company's ordinary shares, for $18 to $21 each.
The IPO is being led by Goldman Sachs, Morgan Stanley, Bank of America and China International Capital, Bloomberg reported.
Onex collects $735m for its new short-term buyout fund. (FS)
Onex has gathered $735m for a new short-term buyout fund, the latest move by the Canadian private equity firm to restart growth under a new chief executive officer.
Onex Partners Opportunities Fund will give its investment teams some capital to work with while the company gears up for a larger fundraising push for the next vintage of its flagship Onex Partners fund. The new vehicle will invest mostly in "upper middle market" companies in North America and Europe, and is expected to be deployed relatively quickly — likely over 12 to 18 months, Bloomberg reported.
Bixby Land announces closing of Bixby Industrial Fund I. (FS)
Bixby Land, a commercial real estate owner, recently closed its newly established Bixby Industrial Fund I, a continuation fund that offered existing investors liquidity while extending duration for a portfolio of five industrial properties located in California, Arizona and Georgia totaling more than 836k sq. ft. of leasable space all of which are 100% leased. Vintage Strategies at Goldman Sachs Alternatives and an Ares Management Real Estate Secondaries fund are equity investors in Fund I.
"Given an attractive basis on these initial investments, and a lack of new supply being delivered in 2025 and 2026, we anticipate attractive value-add returns over a five-to-seven-year investment horizon," Mike Severson, Bixby CIO.
Bixby Land was advised by Accord Group.
JP Morgan hires Steve Lanese from Truist Securities. (People)
Healthcare investment banker Steve Lanese is joining JP Morgan as a managing director for mid-cap mergers and acquisitions.
Lanese, who has been at Truist Securities, will be based in Atlanta and focus on health-care services deals. He will report to Jay Hofmann and Ben Carpenter, JP Morgan's co-heads of North America M&A, Bloomberg reported.
Ford names Sherry House as its next CFO. (People)
Ford Motor has hired Sherry House, formerly chief financial officer of electric-vehicle maker Lucid Group, to be its next CFO as the company contends with tepid demand for EVs.
House will join the Dearborn, Mich.-based automaker in June as vice president of finance, and then transition to the CFO role in early 2025. She left Lucid in December, after nearly three years as CFO.
She succeeds John Lawler, who has held the CFO role since October 2020. Lawler in early June will take on the role of vice chair, where he will focus on areas including strategic development, partnerships and engagement with global leaders, WSJ reported.
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CMA kicks off probe into $3.1bn Thermo Fisher-Olink deal. (FS)
UK grants conditional security clearance for Vodafone-Three merger.
The British government on May 9 made a final order to conditionally approve the proposed merger between Vodafone's UK operation and Hutchison's Three UK, following a detailed national security assessment of the telecom deal, Reuters reported.
The UK's Cabinet Office said security conditions to approve the deal include the companies setting up a "National Security Committee" to oversee sensitive work that relates to or could affect national security.
Vodafone is advised by Morgan Stanley (led by Anthony Zammit and Nuno Machado), Robey Warshaw (led by Simon Warshaw) and Slaughter & May (led by Roland Turnill, Victoria MacDuff and Richard Hilton). CK Hutchison is advised by HSBC (led by Kamal Jabre), Freshfields Bruckhaus Deringer (led by Thomas Wolfgang Wessely and James Aitken) and Linklaters (led by Thomas Greenhalgh, Robert Cleaver and Hugo Stolkin).
Fincantieri to acquire the Underwater Armament Systems business from Leonardo for €415m.
Fincantieri, a shipbuilding company, agreed to acquire the Underwater Armament Systems business from Leonardo, a company specializing in aerospace, defence and security, for €415m ($454m).
"We are extremely proud of this transaction, which represents a crucial milestone in our equity story and in the implementation of Fincantieri's underwater strategy for the next industrial cycle. Underwater technological independence and our global operational capabilities, in this new geopolitical and industrial scenario, will be key features which will allow us to fully exploit the potential of Fincantieri in the interest of our Group's industrial and financial stakeholders," Pierroberto Folgiero, Fincantieri CEO.
Leonardo is advised by Rothschild & Co.
iQSTEL to acquire a 51% stake in Lynk Telecom.
iQSTEL, a telecommunications and technology company, agreed to acquire a 51% stake in Lynk Telecom, a telecom service provider. Financial terms were not disclosed.
"Lynktel is a very strategic acquisition for iQSTEL adding substantial operating and net income in proportion to its revenue base and giving iQSTEL enhanced presence in the US market. Lynktel takes iQSTEL one step closer to realizing our billion dollar annual revenue goal," Leandro Iglesias, iQSTEL CEO.
Rio Tinto had considered a bid for BHP-target Anglo American.
Mining giant Rio Tinto had considered an offer for British miner Anglo American which is now BHP Group's $39bn takeover target.
Rio management had not ruled out making a play for part or all of the mining group and continued to study the day-to-day situation. Glencore is also studying options for a possible approach for Anglo, Reuters reported.
PAI Partners moves to delay exit from $10bn Nestle ice cream JV. (FS)
European private equity firm PAI Partners is in talks with investors about a new fund to hold its 50% stake in its ice cream joint venture with Nestle.
PAI is working with a bank to test investors' appetite for a so-called continuation fund that would help it extend the lifespan of its investment in the Froneri ice cream business. A deal could value Froneri at about $10bn, Bloomberg reported.
Daniel Kretinsky intensifies talks with Royal Mail owner about an improved bid.
Czech billionaire Daniel Kretinsky's EP Group has intensified talks with the owner of the UK's Royal Mail about an improved takeover bid, after his initial £4.5bn ($5.6bn) offer was rejected last month.
Discussions between EP and the board of International Distributions Services, owner of the former British postal monopoly, have deepened in the past couple of weeks. It remains unclear if EP and IDS can strike a deal. EP has until May 15 to make a firm offer for IDS under UK rules governing takeover bids for public companies, FT reported.
nVent Electric is mulling $1.5bn cable business sale.
Electrical equipment maker nVent Electric is considering options for its heating cables business, including a sale, that could value the unit at more than $1.5bn.
The company is working with an adviser to run an auction process for the division. The business is expected to attract interest primarily from private equity firms, though no final decision has been made and nVent may elect to keep the business, Bloomberg reported.
Natra in talks to acquire Gubor and Nutkao. (FS)
European cocoa supplier Natra is in conversations with lenders, including private credit funds, to finance a potential purchase of German chocolate business Gubor Schokoladen and Italian hazelnut-spread producer Nutkao.
Buyout firm CapVest, Natra's owner, is reaching out to lenders for debt proposals that could be as large as $754m for both businesses. The company may also choose to go to the broadly syndicated leveraged loan market for the debt, Bloomberg reported.
Shein steps up London IPO preparations amid US hurdles to listing.
Fast-fashion giant Shein is stepping up preparations for a London listing after its attempt to float itself in New York faced regulatory hurdles and pushback from US lawmakers. Shein, which was valued at $66bn in a fundraising last year, started engaging with the London-based teams of its financial and legal advisors to explore a listing on the LSE early this year.
The online fashion retailer plans to update China's securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month.
While Shein is now gearing up for a London IPO, it still prefers New York as its listing venue and plans to keep its SEC application alive in case there is a change in the stance of US regulators. It may also pursue a secondary US listing in New York following its London IPO when it deems the US political climate to be more favourable, Reuters reported.
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