Conyers Park II Acquisition, a publicly traded special purpose acquisition company, agreed to merge with Advantage Solutions, a provider of outsourced sales and marketing services to consumer goods manufacturers and retailers, in a $5.2bn deal.
Existing private equity partners of Advantage, including CVC, Leonard Green and Bain Capital, in addition to rolling over their entire existing stake in the business, are investing an additional $200m in the company.
"Our approach has always been to help our clients win by providing exceptional core services while building solutions that meet their evolving needs and help solve tomorrow's problems. We are proud after many years of strong performance as a private company to now be able to create value for public shareholders by continuing to drive profitable growth for our clients and further capturing significant share of the market for omnichannel services. In addition to the unparalleled insights and relationships they bring to our business, partnering with Conyers Park strengthens our balance sheet, enabling us to continue investing in growth initiatives for the benefit of all of our stakeholders," Tanya Domier, Advantage CEO.
Advantage is advised by Morgan Stanley, Latham & Watkins and Solebury Trout. Conyers Park II Acquisition is advised by Centerview Partners, Deutsche Bank, Goldman Sachs, Kirkland & Ellis and Shearman & Sterling. Debt financing is provided by Bank of America Merrill Lynch, Deutsche Bank and Morgan Stanley.
B. Riley Principal Merger, a special purpose acquisition company, agreed to merge with Eos Energy Storage, a manufacturer of zinc hybrid cathode battery energy storage systems, in a $550m deal. Upon closing of the transaction, the combined company will be renamed Eos Energy Enterprises and intends to list its shares of common stock on Nasdaq under the ticker symbol "EOSE".
"Today marks an important milestone of advancing Eos's mission to drive a low carbon, more resilient and sustainable energy future with our energy storage solution. We are excited to partner with the B. Riley Financial team, who share our vision of a safer and cleaner energy future powered by Eos," Joe Mastrangelo, Eos Chief Executive Officer.
Eos Energy is advised by Deloitte, KPMG, Evercore, Guggenheim Partners and Morrison Cohen. B. Riley Principal Merger is advised by B. Riley FBR and White & Case.
Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, completed an investment in Tropical Smoothie Cafe, a franchisor of fast-casual cafes with over 870 units across 44 states. Financial terms were not disclosed.
"We are excited to partner with Charles and the rest of the management team who have led the tremendous growth of Tropical Smoothie Cafe. We look forward to working with them as they continue to increase system-wide sales, improve franchisee unit economics and expand unit count in the significant remaining whitespace," Matthew Frankel, LLCP Managing Partner.
Tropical Smoothie Cafe was advised by Jamieson, Robert W Baird, Alston & Bird and Peter Klein. LLCP was advised by Kirkland & Ellis and Kekst CNC. Debt financing was provided by Golub Capital.
Universal, a tobacco company, agreed to acquire Silva International, a privately-held, natural, speciality dehydrated vegetable, fruit and herb processing company, for $170m.
"We're excited to have reached this agreement with Silva as we continue to diversify our offerings and generate new opportunities for value creation. This acquisition builds on our investment in FruitSmart and expands our plant-based ingredients platform. With this acquisition, we expect these businesses to represent 10% to 20% of our EBITDA by fiscal year 2022, ahead of our previously stated target outlined as part of our capital allocation strategy," George C. Freeman, Universal Chairman, President and CEO.
Silva International is advised by Houlihan Lokey, Steinhaus - Griesar and Winston & Strawn. Universal is advised by Harris Williams & Co and Troutman Pepper.
KAR Auction Services, a provider of whole car auction services in North America, agreed to acquire BacklotCars, an online marketplace for auto dealers, for $425m.
"KAR has led the digital transformation of the remarketing industry for over a decade, and we're 100% committed to providing dealers with the best, most advanced platforms to sell and source inventory. BacklotCars has grown rapidly in the highly competitive dealer-to-dealer space and is the perfect complement to our current capabilities and footprint. I'm confident the addition of Backlot's leadership, technology, and exceptional customer-service model will quickly benefit our combined customers, enhance KAR's competitive position and accelerate growth for both organizations," Jim Hallett, KAR Chairman and CEO.
BacklotCars is advised by Evercore and Stinson. KAR Auction Services is advised by Guggenheim Partners and Winston & Strawn.
General Motors, a vehicle manufacturer, agreed to acquire an 11% stake in Nikola, a designer and manufacturer of electric components. Nikola will exchange $2bn in newly issued common stock for the in-kind services and access to General Motors' global safety-tested and validated parts and components. The transaction is subject to customary antitrust regulatory approval and closing conditions.
"This strategic partnership with Nikola, an industry-leading disrupter, continues the broader deployment of General Motors' all-new Ultium battery and Hydrotec fuel cell systems. We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability. In addition, applying General Motors' electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero-emissions future," Mary Barra, General Motors Chairman and CEO.
Health Catalyst, a provider of data and analytics technology and services to healthcare organizations, completed the acquisition of Vitalware, a provider of revenue workflow optimization and analytics SaaS technology solutions to healthcare organizations. Financial terms were not disclosed.
"In addition to adding a best in KLAS technology solution from Vitalware, this acquisition is another powerful example of Health Catalyst's ability to integrate and scale software on top of our DOS™ platform. Ultimately, DOS, our cloud-based data platform, will further enhance the analytics insights made available by Vitalware's technology by integrating charge and revenue data with claims, cost, and quality data," Dan Burton, Health Catalyst CEO.
Private equity firm Wynnchurch Capital completed the acquisition of Labrie Environmental Group, a manufacturer of refuse collection vehicles and related parts. Financial terms were not disclosed.
"We are committed to delivering best-in-class refuse collection vehicles and service for our customers and are excited to partner with Wynnchurch as we continue that mission. Wynnchurch understands our business and the demanding needs of our customers, and we believe, that through our shared vision, we can take Labrie to new levels," Diana Grootonk, Labrie CEO.
Warburg Pincus in talks to invest in Vista-backed Infoblox. (FS)
Warburg Pincus, a private equity firm, is in advanced talks to invest in Vista Equity Partners-controlled Infoblox in a deal that values the closely held technology company at more than $3bn, including debt, Bloomberg reported.
Vista and Warburg Pincus will share equal ownership of the combined company after the deal closes.
Hub International to acquire assets of Charles R. Butler.
Hub International, a global insurance brokerage, agreed to acquire the insurance brokerage assets of Charles R. Butler. Financial terms were not disclosed.
Rhett Butler, the founder of the insurance agency, was part of Nationwide Mutual Insurance Company's exclusive distribution model and is now joining Hub as he recently transitioned to an independent broker. This addition will complement and strengthen Hub's personal insurance solutions.
Sumitomo divests its full stake in US Marcellus shale gas project.
Sumitomo, a Japanese trading house, sold all of its stake in the Marcellus shale gas project in the United States for an undisclosed sum, Reutersreported. Sumitomo bought a 30% stake in the project in 2010 from Rex Energy, which went bankrupt in 2018. The project is now 70% owned and operated by PennEnergy Resources.
"We have sold our stake as it is difficult to predict future prices of natural gas, and as it may take a long time to gain profit contribution from the project and its development may not proceed as planned even after the prices recover," Sumitomo spokesman.
Keurig Dr Pepper considers Nasdaq switch.
Keurig Dr Pepper will move its listing to the Nasdaq stock exchange as part of a series of measures designed to diversify its shareholder base. The coffee and soft drinks manufacturer will shift its shares from the New York Stock Exchange later this month, Bloomberg reported.
With a market value of about $42bn, Keurig Dr Pepper will rank among the largest companies on the historically tech-focused exchange. Its size will secure it a place on the widely-tracked Nasdaq-100 index, helping it attract more passive investment funds.
"Listing on Nasdaq is an important milestone in Keurig Dr Pepper's evolution as a modern beverage company with a diverse and widely-held shareholder base," Bob Gamgort, Keurig Dr Pepper Chief Executive Officer.
Pactiv Evergreen considers raising $862m in IPO.
Pactiv Evergreen, a food packaging products maker, considers raising up to $862m in its IPO. The company intends to sell 41m shares, at a price range of $18-$21 per share. The top end of the price range values the firm at $3.7bn.
Pactiv Evergreen manufactures and distributes food merchandising products and fresh beverage cartons and counts major US chains McDonald’s and Walmart among its customers.
Credit Suisse, Citigroup, Bank of America and Goldman Sachs are the lead underwriters to the firm’s offering.
Sumo Logic looks to raise $310m in US IPO.
Sumo Logic, a big data firm, is looking to raise $311m in a US IPO that could value the company at over $2.1bn. The company said it expects to sell 15m shares at a price range of $17-$21 per share, Reuters reported.
California-based Sumo Logic, which makes cloud-based tools to crunch data on a massive scale, posted a loss of $92m compared to a loss of $48m a year earlier.
Mission Produce files for IPO.
Mission Produce, a distributor of fresh avocado, filed for an initial public offering with plans to list on Nasdaq, under the ticker "AVO." Proceeds will be used for working capital and other general corporate purposes. The company had a net loss of $13min the six months ended April 30, after income of $23m in the year-earlier period.
Mission Produce is advised by Bank of America Merrill Lynch, Citigroup and JP Morgan.
GI Partners raised $1.8bn for its data infrastructure fund. (FS)
GI Partners smashed its target for its inaugural data infrastructure fund by hitting a $1.8bn final close for the vehicle. The private equity house had hoped to raise $1.2bn for the fund, which will invest across data centres, data transport, wireless access, and tech-enabled infrastructure, primarily in North America, AltAssets reported.
"Technology and communications are the largest and fastest-growing drivers of the global economy and the infrastructure that supports these sectors is critical to the operation of every business, government, and household in the developed world," Steve Smith, GI Partners Managing Director.
Mountain Capital Management raised nearly $415m for its second flagship fund. (FS)
Mountain Capital Management, a private equity firm focused on growth and turnaround capital investments in the North American energy sector, raised $415m for its second flagship fund.
Based in Houston, Mountain Capital primarily makes growth investments of between $50m and $150m in North America's middle-market energy sector.
EU antitrust regulators set a new December 16 deadline for their decision on the London Stock Exchange's $27bn takeover of Refinitiv, a global provider of financial market data and infrastructure, after resuming their investigation into the deal.
The EU's competition regulator voiced concerns that a combination of LSE's bond-trading platform MTS and Refinitiv, which owns bond platform Tradeweb, would have a large market share in European government bond trading. LSE is now considering divesting Borsa Italiana, Italy's only stock exchange, which it acquired for $1.89bn in 2007, to address such concerns.
Refinitiv is advised by Canson Capital Partners, Evercore, Jefferies & Company, Corrs Chambers Westgarth, Osler Hoskin & Harcourt, Simpson Thacher & Bartlett, and Eterna Partners. LSEG is advised by RBC Capital Markets, Oliver Wyman, Barclays, Goldman Sachs, Morgan Stanley, Robey Warshaw, Blake Cassels & Graydon, Freshfields Bruckhaus Deringer, and Teneo. Legal advice to financial advisors to LSEG is provided by Herbert Smith Freehills. CPPIB is advised by Weil Gotshal and Manges. Thomson Reuters is advised by Allen & Overy.
Inframedica, a company directly and wholly controlled by DWS, agreed to acquire Medipass, a provider of diagnostic and treatment services, from KOS Group, an Italian healthcare group, for $202m. Before the sale is completed, KOS will buy back the Indian subsidiaries from Medipass. The deal is expected to complete by the end of 2020.
"We are delighted to invest in Medipass and to partner with its impressive management team in this next phase of its journey. Medipass has been one of the pioneers in the Cancer Care sector, offering outsourcing services in diagnostics and cancer care since the 1990s, with a consistent track record of providing patients with the highest quality of care using cutting edge technology," Hamish Mackenzie, DWS Global Head of Infrastructure.
KOS Group is advised by Deloitte, Mediobanca and Carnelutti Law Firm. DWS is advised by Bain & Co, Marsh, PricewaterhouseCoopers, Rosa & Roubini, DC Advisory, Nomura and Legance.
Saudi Telecom, a telecommunications company, is in talks to reduce its non-binding $2.4bn offer for a 55% stake in Vodafone Egypt, a mobile network operator, Bloomberg reported.
The discussions come as a deadline nears for STC to move ahead with the non-binding offer first made in January. The Saudi company in July extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.
Vodafone is advised by Citigroup and Goldman Sachs. Saudi Telecom is advised by Barclays.
Technology Crossover Ventures, a California-based venture capital firm that invests in growth-stage companies in the technology industry, led a $106m Series B round in Mollie, a Dutch payments startup.
"We are delighted to partner with Adriaan and the Mollie team. TCV looks to invest in category-leading technology companies that are disrupting large markets – exactly what Mollie is doing today. Mollie is a customer-obsessed company that delights its e-commerce merchant customers with beautifully engineered products and by putting the needs and priorities of merchants at the centre of everything they do," John Doran, TCV General Partner.
Mollie is advised by De Brauw Blackstone Westbroek and Stibbe.
Sard Verbinnen & Co, a global strategic communications consultancy, agreed to acquire Oakhill Communications, a UK-based communications and public affairs firm. Financial terms were not disclosed.
"Becoming part of SVC provides a first-class platform to create a leading UK public affairs business. That, coupled with SVC's market-leading expertise in providing trusted, senior-level corporate counsel, will lead to growth opportunities for our team as well as for our clients. We are excited about what the future will bring," Lee Petar, Oakhill Communications Co-Founder.
Takeda sells non-core assets in Europe to Cheplapharm for $562m.
Takeda, a Japanese multinational pharmaceutical and biopharmaceutical company, entered into an agreement to divest a portfolio of select non-core prescription pharmaceutical products sold predominantly in Europe and Canada to Cheplapharm, a speciality pharmaceutical company headquartered in Germany, for $562m.
"Today's announcement allows Takeda to continue to be patient-focused as we streamline and optimize our portfolio according to our global long-term strategy. While the trusted products included in the sale address key patient needs in these countries, they are outside of our core business areas of focus. We are confident that Cheplapharm is the right partner to ensure patients continue to have access to these products," Costa Saroukos, Takeda CFO.
Takeda is advised by JP Morgan and White & Case.
Mylan to acquire intellectual property and commercialization rights of Aspen for $760m.
Mylan, a global pharmaceutical company, agreed to acquire the intellectual property and commercialization rights of the thrombosis business of Aspen Pharmacare, a multinational South African holding company for pharmaceutical concerns, for $760m.
"The acquisition of this thrombosis portfolio is a significant addition to Mylan's European business that will not only make Mylan the second largest supplier of these products to patients in Europe, according to IQVIA, but also bolster our existing commercial infrastructure to further expand access to complex injectables. By adding to our highly experienced sales and marketing team, we will further strengthen our current reach in hospitals and enhance the future growth of our biosimilars franchise in Europe," Rajiv Malik, Mylan President.
VW not looking for a deal with Tesla.
Volkswagen's Chief Executive Herbert Diess sought to quell speculation that the world's largest carmaker, which is on a mass production push for electric cars, has plans to develop deeper ties with start-up rival Tesla, Reuters reported. Diess met with Tesla's Chief Executive Elon Musk in Braunschweig, Germany, last week, and during his visit he let Musk drive its new ID.3 electric car.
"Just to be clear: We just drove the ID.3 and had a chat - there is no deal/cooperation in the making," Herbert Diess, VW CEO.
Actis eyes African power projects after $1bn of investments. (FS)
Actis, a London-based private-equity firm, is looking at African energy projects to add to the $1bn it has already invested in the sector on the continent, Bloomberg reported. Investments will probably be spread across East and North Africa and also in South Africa.
"We're seeing some new opportunities that we've not yet approved," Neil Brown, Actis Partner and Head of the Investor Development Group.
KKR-backed Hensoldt prepares Germany's largest IPO this year. (FS)
Hensoldt, a KKR-backed defence supplier, plans an IPO in Frankfurt that would be the biggest of the year in Germany, helping to drive a revival of a market that has lagged behind other European exchanges for most of the year, Bloomberg reported.
Hensoldt will sell new stock to raise capital in the IPO, and KKR plans to sell shares as well. Hensoldt did not specify the size of the deal, which it aims to complete by the end of the year. The sale will include a public offer to the individual and institutional investors in Germany and private placements elsewhere. KKR considers seeking a valuation of as much as $3.5bn and investors may be offered 20% to 30% of Hensoldt through the listing.
Private equity firm Hillhouse Capital led a $418m investment in I-Mab, a clinical-stage biopharmaceutical company committed to the discovery, development and commercialization of novel biologics, with significant participation by GIC, Avidity Partners, OrbiMed, Octagon Capital Advisors, Invus, Lake Bleu Capital, Perceptive Advisors, Cormorant Asset Management, Sphera Healthcare and Alyeska Investment Group.
"Our latest investment in I-Mab is a perfect example of Hillhouse's long-term commitment to funding pioneering innovation in life sciences. We see in I-Mab the same qualities that have propelled other biotech companies to success: clear scientific vision, unswerving focus on innovation and flawless execution. We are delighted to partner with an industry leader like I-Mab to scale new heights in its quest for truly transformative therapies," Michael Yi, Hillhouse Co-CIO.
I-Mab is advised by China Renaissance Securities, Jefferies & Company, Burns McClellan and The Piacente Group.
First State Super, an Australian investment fund, offered to acquire OptiComm, a provider of FTTP network solutions, at a valuation of $443m, countering the $387m cash and share bid made by Uniti Group, a real estate investment trust.
First State has until September 18 to complete due diligence and make a binding offer. Under the terms of Uniti's proposal, it will be allowed to match First State's binding bid should it be received.
"We believe this is a compelling proposal and look forward to working with OptiComm and its management team on this transaction," First State Super.
Investcorp and China Resources Capital Management, a private equity real estate firm, agreed to acquire a 65% stake in City Super Group, a Hong Kong supermarket chain, from Fenix Group, an exporter and retailer, and the Lane Crawford Joyce Group, a fashion retail, brand management and distribution group. Financial terms were not disclosed.
"We believe that the Asia food sector continues to offer attractive growth opportunities, especially for leading brands like City Super Group, which has cultivated a strong, loyal customer base by offering premium, products with a commitment to exceptional quality, service and innovation. As one of the most preeminent food retail and lifestyle brands in Asia, we believe that City Super Group is well-positioned for growth," Hazem Ben-Gacem, Investcorp Co-CEO.
Highly, a machining manufacturer in Shanghai, and Marelli, an automotive supplier, agreed to form a joint venture focused on developing solutions for customers and suppliers specifically in electrification of compressors and heating, ventilation & air conditioning and electric driven compressor systems. Financial terms were not disclosed.
"This is a strategically significant and exciting partnership for Marelli. Through it, we have direct and immediate access to the growing Chinese market. It facilitates even greater investment in electrification technologies and achieves greater synergies, delivering even better value to our customers and career opportunities for our people. Highly's strong reputation and brand presence in China, combined with our reputation for manufacturing excellence creates a business with enormous potential. This is another great step forward for us towards building a leading global tier 1 supplier," Beda Bolzenius, Marelli CEO.
Silver Lake led a $500m funding round in Byju's, an online learning platform, valuing the company at $10.8bn. The round was also joined by Tiger Global, General Atlantic and Owl Ventures.
"We are delighted to lead this investment and partner with Byju and his impressive team of education technology pioneers in their mission to help children in India and around the world achieve their true potential," Greg Mondre, Silver Lake Co-CEO.
Indian government considers divesting a stake in BDL.
The Indian government is looking to dilute its stake in another defence manufacturer, Bharat Dynamics, following the $684m share sale in Hindustan Aeronautics last month.
On Monday, BDL informed the stock exchanges that the government is looking to sell at least 183m shares in a base offer, and could sell another 9.1m shares if it receives an oversubscription. The floor price for the offer for sale has been fixed at $4.5 per share. The government holds 87.75% in BDL as of 30 June.
Grab in talks with Prudential and AIA for up to $500m investment in fintech unit.
Southeast Asia's Grab is in advanced talks with Prudential, AIA Group and others as it seeks $300-500m in investments for its financial services unit, Reuters reported.
Grab, which evolved from ride-hailing app operator to a one-stop-shop for services as varied as food delivery and insurance, aims to reach agreements as early as October.
IDBI Bank divests remaining 0.21% stake in NSE. (FS)
IDBI Bank sold its remaining 0.21% stake or 10m shares in National Stock Exchange of India. Recently, state-run Life Insurance Corporation of India missed the Securities and Exchange Board of India's August 28 deadline to divest a 4.9% stake in the stock exchange.
LIC, the founding and largest shareholder in NSE, holds a 12.51% stake. While both IDBI and LIC held a stake in the exchange, the shareholding threshold in NSE was breached when LIC acquired a 51% controlling stake in IDBI Bank, Economic Times India reported.
Sequoia-backed iRay Technology considers raising $318m in IPO. (FS)
iRay Technology, a provider of X-ray system components used in medical, dental, veterinary and industrial imaging applications, kicked off the subscription process of an IPO on Shanghai's Nasdaq-style STAR Market, DealStreetAsia reported.
Backed by Sequoia Capital China, the company is offering common shares at $17 apiece, with target to raise $318m. Its shares have been oversubscribed 4.7k times.
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