AMERICAS
Lockheed Martin, a global security and aerospace company, terminated the $4.6bn acquisition of Aerojet Rocketdyne, an American rocket and missile propulsion manufacturer.
"Our planned acquisition of Aerojet Rocketdyne would have benefitted the entire industry through greater efficiency, speed, and significant cost reductions for the US government. However, we determined that in light of the FTC's actions, terminating the transaction is in the best interest of our stakeholders. We stand by our long heritage as a merchant supplier and trusted partner and will continue to support Aerojet Rocketdyne and other essential suppliers in the Defense Industrial Base still overcoming the challenges of the pandemic," James Taiclet, Lockheed Martin Chairman, President and CEO.
Apollo, an alternative asset manager, agreed to acquire a majority stake in Novolex Holdings, a manufacturer of diverse packaging products, from Carlyle, a private equity firm. Financial terms are not disclosed.
"We are pleased to invest in Novolex, a high-quality, resilient business with a loyal, long-term customer base. The Company has a strong management team and is poised to capitalize on growth across food delivery and e-commerce as well as increasing demand for environmentally responsible and compostable products. Importantly, Novolex shares our commitment to sustainability. We look forward to working alongside Stan Bikulege and the rest of the talented management team to create significant value for customers and our investors," Rob Seminara, Apollo Partner.
Apollo is advised by Deutsche Bank, Evercore, Barclays, Paul Weiss Rifkind Wharton & Garrison. Novolex is advised by Goldman Sachs, Credit Suisse, Latham & Watkins and Nelson Mullins Riley & Scarborough.
Collegium Pharmaceutical, a pharmaceutical company, agreed to acquire BioDelivery Sciences International, a pharmaceutical company, for $604m.
“We are excited to announce this acquisition, which represents a major step forward in our mission to build a leading, diversified specialty pharmaceutical company committed to improving the lives of people suffering from serious medical conditions. The BDSI portfolio expands and enhances Collegium’s differentiated pain offerings and establishes a foothold in neurology, a strategic market adjacency. Importantly, we expect this acquisition will be immediately and highly accretive by expanding our revenue scale and generating significant synergies," Joe Ciaffoni, Collegium President and Chief Executive Officer.
BDSI is advised by Moelis & Co, Goodwin Procter and LifeSci Public Relations. Collegium is advised by Jefferies & Company and Troutman Pepper. Debt financing is provided by Pharmakon Advisors.
Zurn Water Solutions, a company provides water solutions and products, agreed to merge with Elkay Manufacturing, a commercial drinking water solutions provider, in a $1.56bn deal.
“This transaction is a true game-changer as we create an even stronger pure play water company by combining with the iconic brand, Elkay. The combination puts us well on our way to doubling the size of the business over the next couple of years while enhancing our competitive advantage within specified water solutions. We also add the high-growth, and increasingly essential, drinking water sector in our portfolio and have a clear path to capitalize on the significant synergies the combination will generate,” Todd A. Adams, Zurn Water Solutions Chairman and CEO.
Zurn Water Solutions is advised by Evercore and Morgan Lewis & Bockius. Elkay Manufacturing is advised by Citigroup and JP Morgan and Mayer Brown.
Safe Harbor Financial, a financial services provider, agreed to go public via a SPAC merger with Northern Lights Acquisition, a publicly-traded special purpose acquisition company, in a $327m deal.
"The acquisition by Northern Lights will allow Safe Harbor to advance its efforts to remain the premier cannabis financial services provider. Over the last seven years, our team has pioneered what many consider to be the industry standard cannabis banking platform by establishing strong internal processes and controls, and by complying with rigorous state and federal banking guidelines. Through the SPAC transaction, we believe Safe Harbor will be well-positioned to expand its suite of financial services for our existing and new clients and continue to support the growth of the cannabis industry at a very high level. Our goal is to become a 'one-stop-shop' for cannabis business financial needs," Sundie Seefried, Safe Harbor CEO.
Northern Lights is advised by Benchmark Investments, Nelson Mullins Riley & Scarborough and KCSA Strategic Communications. Safe Harbor is advised by Donald T. Emmi and David Waller.
Varian Biopharmaceuticals, a biopharmaceutical company, agreed to go public via a SPAC merger with SPK Acquisition, a special purposes acquisition company, in a $116m.
“Varian Bio has the support of leading cancer physicians and scientific institutions both in the US and abroad, and aPKCi is a unique protein kinase target whose inhibition could have a significant impact in a broad range of tumor types. Our merger with SPK will provide the capital needed to further the development of our proprietary, anti-cancer targeted therapies," Jeffrey B. Davis, Varian Bio CEO.
Varian Bio is advised by Dorsey & Whitney. SPK Acquisition is advised by LifeSci Capital, Loeb & Loeb and LifeSci Public Relations.
Clayton Dubilier & Rice, a private equity firm, offered to acquire the remaining 51% stake in Cornerstone Building Brands, a building materials products provider, in a $2.3bn deal.
CD&R intends to remain a shareholder of Cornerstone if a potential deal cannot be completed under its proposal, the buyout firm said, adding that it was not interested in pursuing any alternative transactions.
CD&R is advised by Centerview Partners.
BBVA, a financial services company, agreed to acquire an additional 21.7% stake in Neon, a digital bank, for $300m.
“The commitment to innovation is part of BBVA’s DNA, and digital is opening new ways for us to grow in very attractive markets. Neon’s value proposition connects with the financial needs of Brazilians serving as a platform to continue to grow rapidly in a market with great potential,” Carlos Torres Vila, BBVA Chairman.
Menasha to acquire the Color-Box business of Georgia-Pacific.
Menasha, a corrugated and plastic packaging manufacturer, agreed to acquire the Color-Box business of Georgia-Pacific, an integrated packaging supplier. Financial terms were not disclosed.
"Menasha Packaging and Color-Box are a great fit, and we are excited about the opportunities ahead. Color-Box will expand our geographic footprint and provide additional graphics, design, and structural packaging options for our customers. Color-Box's business culture also strongly aligns with Menasha Packaging's, with a priority on safety and employee wellbeing, excellence in serving customers, and a focus on innovative solutions," Mike Riegsecker, Menasha President.
Jitse Groen says US delisting does not indicate plan to sell Grubhub.
The company's decision to delist its shares from Nasdaq should not be considered as a plan to sell its Grubhub subsidiary, said Jitse Groen, Just Eat Takeaway.com CEO.
Takeaway, a food delivery company, acquired Grubhub for $7.3bn in June 15, 2021, but has since come under pressure to sell the unit.
Jana Partners limits stake in Macy's. (FS)
New York-based hedge fund Jana Partners cut its holding in department store Macy's by 84% in the last months of 2021 not long after the activist investment firm prodded the retailer to consider alternatives for its online unit, Reuters reported.
Jana Partners owned 760k shares in Macy's at the end of the fourth quarter on December 31, 2021. That compares with 4.6m shares the hedge fund owned at the end of the third quarter. The firm's holding at the end of September amounted to 1.5% of the company.
EMEA
Central European Media Enterprises, a media and entertainment company, agreed to acquire RTL Croatia from RTL Group, a media group, for $57m.
“We would like to thank the management and all employees of RTL Croatia for their performance, passion and commitment. With its clear regional focus on Central and Eastern Europe and its commitment to editorial independence and integrity, CME is well equipped to further develop RTL Croatia. The sale is in line with our consolidation strategy and the best strategic option for RTL Croatia, its dedicated team and our shareholders," Elmar Heggen, RTL Group COO and Deputy CEO.
RTL Group is advised by JP Morgan and Wolf Theiss.
Apollo Global Management, a private equity firm, agreed to acquire a minority stake in Aldar Properties, a real estate development, management and investment company, for $1.4bn.
"We wholeheartedly welcome Apollo as a long-term strategic investor and look forward to collaborating in order to grow our portfolio through additional value and yield accretive acquisitions. This transaction enables us to add further scale to our business and forms a critical milestone of our upcoming growth journey,” Jassem Busaibe, Aldar Investment CEO.
Apollo Global is advised by Brunswick Group.
Greece might sign more privalisation deal.
Greece is set to sign off this year on a long-term concession for its longest highway and a gas company sale, helping it meet an annual $2.5bn revenue target from state assets, Reuters reported.
Greece is also due to get $540m from the sale of Greek gas grid DEPA Infrastructure to Italgas by June.
Amazon and Spotify mull bids for Audioboom.
Amazon, an American multinational technology company, and Spotify, a Swedish audio streaming and media services provider, consider takeover approaches for Audioboom, a London-listed podcasting group, valuing the company at £275m.
The companies have been exploring bids for Audioboom in recent weeks, and could decide whether to make formal offers as soon as this month. Amazon is reported to have been working with JP Morgan.
Bluebell Capital drafts plans for Glencore's spin-off. (FS)
Activist investor Bluebell Capital Partners proposed a new structure for Glencore that would allow the miner to separate its thermal coal business and still maintain control of the spin-off, Reuters reported.
London-based Bluebell set out a plan for Glencore to separate its coal company with A and B shares on January 24, 2022.
Norgine weighs sales to PE firms. (FS)
Pharmaceutical company Norgine is exploring a potential sale that could value the specialty pharmaceutical company at more than $2bn, Bloomberg reported.
Amsterdam-based Norgine is working with Rothschild & Co. as it evaluates options. It’s drawing interest from large private equity firms.
Old Mutual hires Goldman Sachs for Lekela deal. (FS)
A unit of Old Mutual hired Goldman Sachs to help it acquire Africa-focused renewable-energy firm Lekela Power, Bloomberg reported.
Buyout firm Actis drew broad interest for its 60% stake in Lekela, including bidders from China and the Middle East. Old Mutual is bidding for Lekela through its African Infrastructure Investment Managers unit.
Var Energi priced at bottom of IPO range.
Planned stock market listing of Var Energi, a Norwegian oil and gas firm and spin-off from Eni, in Oslo will value the company at $7.9bn.
Shares in Var in the IPO will be sold at between $3.15 and $3.54 each, valuing the company from $7.9bn to $8.9bn.
Saudi Arabia transfers Aramco shares worth $80bn to state fund. (FS)
Mohammed bin Salman, Crown Prince of Saudi Arabia, transferred 4% of shares in Saudi Aramco, a Saudi Arabian public petroleum and natural gas company, worth $80bn to the kingdom's sovereign wealth fund.
The shares will bolster the Public Investment Fund's strong financial position and high credit ratings in the medium term. The state remains 94% of shares in Saudi Aramco after the transfer process.
APAC
Blackstone agreed to acquire a majority stake in ASK Investment Managers, an asset and wealth management company, from Advent International, a private equity firm. Financial terms were not disclosed.
“We are excited about the investment from Blackstone, as a long-term strategic partner. This partnership is a testament to ASK’s high-quality management team and the business we have built over decades. Blackstone’s global reach and deep knowledge of the financial services sector will further strengthen our asset and wealth management businesses and help us grow significantly," Sameer Koticha, ASK Investment Managers Founder and Chairman.
ASK Investment Managers is advised by KPMG, Nomura and AZB & Partners. Blackstone is advised by Boston Consulting Group, Ernst & Young, Moelis & Co, Simpson Thacher & Bartlett and Trilegal.
Reliance Industries-backed Jio Platforms, a technology company, agreed to invest $200m in Glance, a lock-screen platform.
“Glance has grown at a phenomenal pace over the past two years and
has given users a truly unique solution by unlocking the power of the lock screen for experiencing the internet, live content, creator driven entertainment commerce and gaming. With the help of this investment, Glance expects to launch in several key markets globally as well as extend the experience to millions of Jio users, further reinforcing our commitment to provide the most advanced and next-level tech and
digital ecosystem for consumers in India and beyond,” Akash Ambani, Jio Platforms Director.
Glance is advised by Morgan Stanley, Khaitan & Co and Genesis BCW. Jio Platforms is advised by White & Case, K Law and Ernst & Young.
Blackstone, an alternative investment management company, agreed to acquire Crown Resorts, a gaming and entertainment group, for $6.3bn.
“The announcement today represents a compelling offer for Crown’s shareholders to consider. The price appropriately reflects the value of Crown's world-class assets and global reputation for premium service and experiences. The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers and stakeholders,” Steve McCann, Crown Managing Director and CEO.
Crown is advised by UBS, Allens and Herbert Smith Freehills. Blackstone is advised by Morgan Stanley and Clayton Utz.
GIC, a private equity firm, led a $170m funding round in TPG Growth-backed Asia Healthcare Holdings, a healthcare investment platform.
“At AHH, we have built a differentiated approach to bridge the demand-supply gap in healthcare services in India and the broader South Asia region by backing single specialty healthcare delivery enterprises with a combination of capital, operating expertise, and cutting-edge clinical practices to power their growth,” Vishal Bali, AHH Chairman.
Axis Bank in talks to buy Citigroup's Indian retail unit for $2.5bn.
Axis Bank, an Indian banking and financial services company, nears a deal to buy Citigroup's India retail banking business for $2.5bn, Bloomberg reported.
An agreement may be announced as soon as the next few weeks and is contingent on approval from the Reserve Bank of India. The deal would include a cash component of less than $2bn.
Sumitomo Mitsui weighs increasing stake in Rizal Bank.
Sumitomo Mitsui Banking, a Japanese multinational banking and financial services institution, considers increasing stake in Rizal Commercial Banking, a development bank, Bloomberg reported.
The company seeks to expand its footprint across Southeast Asia. Sumitomo Mitsui is working with financial advisers to boost its roughly 5% stake in Rizal Bank.
Kirin seeks the sale of two units in Myanmar.
Kirin Holdings, a Japanese beverage maker, seek the sale of its business in Myanmar and will terminate its joint venture with a military-linked partner.
Kirin has been in a dispute with Myanma Economic Holdings Public Company, a local partner, on how to dissolve their brewery venture following a military coup against the democratically elected government, Reuters reported.
Toshiba sets March 24, 2022, for preliminary vote on break-up plan.
Toshiba, a Japanese multinational conglomerate, planned an extraordinary general meeting of shareholders on March 24, 2022, to seek their initial approval to spin-off its devices business.
The final binding vote to determine whether to break up the 146-year-old conglomerate will not happen until next year. Still, next month's meeting will be a crucial gauge of shareholder support for the board's restructuring plan, Reuters reported.
Life Insurance files $8bn IPO papers.
Life Insurance Corporation, an Indian statutory insurance and investment corporation, filed draft papers with the market regulator to sell 5% of its shares to raise nearly $8bn.
The company reserved up to 35% of its total IPO size for retail investors as per the draft papers. Life Insurance Corporation plans to sell 316.25m shares.
CR Power picks banks for renewable unit's Hong Kong listing.
The renewable energy arm of China Resources Power Holdings, a Hong Kong-based investment holding company principally engaged in the investment, development and operation of power plants, picked the banks ABC International Holdings and China International Capital for an IPO in Hong Kong, Bloomberg reported.
The renewable unit is also working with HSBC and Morgan Stanley on a proposed first-time share sale. The IPO could raise about $1bn to $2bn, and take place as soon as mid-2022.
Some Chinese firms revive New York IPO plans after regulatory crackdown.
6 Chinese companies lodged documents for New York listings in recent weeks, promising an end to a months-long freeze after Chinese regulators' unprecedented clampdown last year, Reuters reported.
Chinese firms raised $12.8bn in the US in the first 7 months of last year, but the deals ended after the New York debut of Didi Global in late June, 2021, triggered a regulatory backlash by Beijing.
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