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AMERICAS
A Delaware judge halted a court case against Elon Musk over his $44bn purchase of Twitter giving the parties more time to complete the deal.
Delaware Chancery Judge Kathaleen St. J. McCormick said if the transaction isn’t done by 5 pm on October 28, she will set new trial dates in November, Bloomberg reported.
Twitter is advised by Allen & Company, Goldman Sachs, JP Morgan, Simpson Thacher & Bartlett (led by Katherine Krause, Alan Klein and Anthony Vernace), Wachtell Lipton Rosen & Katz, Wilson Sonsini Goodrich & Rosati (led by Katharine A. Martin) and Joele Frank (led by Jamie Moser). Financial advisors are advised by Sullivan & Cromwell (led by Alison S. Ressler). Elon Musk is advised by Bank of America, Barclays, Morgan Stanley (led by Michael Grimes), McDermott Will & Emery (led by Heidi Steele), Quinn Emanuel, Skadden Arps Slate Meagher & Flom (led by Mike Ringler) and Sard Verbinnen & Co (led by Paul Kranhold). Debt financing was provided by BNP Paribas (led by David Berger), Bank of America (led by Scott Tolchin), Barclays (led by Jeremy Hazan), Mitsubishi UFJ Financial Group (led by Timothy Dilworth), Mizuho Securities (led by Raymond Ventura), Morgan Stanley (led by Andrew Earls), Societe Generale (led by Richard Knowlton). Debt providers are advised by Davis Polk & Wardwell (led by Louis L. Goldberg, Alan F. Denenberg, John M. Brandow and James A. Florack).
House Speaker Nancy Pelosi urged regulators to closely scrutinize Standard General’s proposed purchase of broadcaster Tegna, citing concerns the transaction could result in less local news, journalism job cuts and higher prices for consumers, Bloomberg reported.
“This transaction deserves your full and complete attention,” Pelosi said in a letter to Federal Communications Commission Chairwoman Jessica Rosenworcel, who is leading the agency’s review of the $5.4bn deal.
The deal needs approval from the FCC, which is in a two-to-two partisan split as a nominee who would give Democrats a majority awaits Senate confirmation, Bloomberg reported.
Tegna is advised by Evercore, Greenhill & Co, JP Morgan, Covington & Burling, Wachtell Lipton Rosen & Katz (led by Andrew Brownstein and Victor Goldfeld) and FGS Global (led by George Sard). Financial advisors are advised by Freshfields Bruckhaus Deringer (led by Ethan A. Klingsberg). Standard General is advised by Goldman Sachs, Moelis & Co, RBC Capital Markets, Cooley, Fried Frank Harris Shriver & Jacobson (led by Warren S. Wied), Pillsbury Winthrop Shaw Pittman and Joele Frank (led by Andrew Brimmer). Debt financing is provided by RBC Capital Markets.
MasTec, an infrastructure engineering and construction company, completed the acquisition of Infrastructure and Energy Alternatives, an infrastructure construction company with specialized energy and heavy civil expertise, from Ares Management, a private equity firm, for $1.1bn.
"We are proud to expand our service capabilities, scale and expertise providing critical infrastructure to support the nation's energy transition to secure and sustainable renewable sources. We are excited to welcome JP, the IEA management team and almost 6k IEA team members to the MasTec family. We have long admired IEA's operating excellence, and we have a strong cultural alignment with IEA in safety and customer service," Jose Mas, MasTec CEO.
Infrastructure and Energy Alternatives was advised by Lazard, Gibson Dunn & Crutcher (led by Andrew Kaplan), Joele Frank (led by Sharon Stern and Scott Bisang). Financial advisors were advised by Cravath Swaine & Moore (led by Andrew C. Elken). MasTec was advised by JP Morgan, Fried Frank Harris Shriver & Jacobson (led by Philip Richter) and Holland & Knight. Financial advisors were advised by Simpson Thacher & Bartlett (led by Jakob Rendtorff). Debt financing was provided by Bank of America and JP Morgan. Ares was advised by Paul Weiss Rifkind Wharton & Garrison (led by Michael Vogel and Kenneth Schneider).
TPG Capital, a private equity firm, completed the acquisition of Convey Health Solutions, a healthcare platform that utilizes technology and processes, for $1.1bn.
"We look forward to continuing our partnership with TPG as we work together to serve Convey's health plan clients and their members with our best-in-class technology platforms and business process solutions," Stephen Farrell, Convey CEO.
Seacoast Banking Corporation of Florida, the holding company for Seacoast National Bank, completed the acquisition of Drummond Banking Company, parent company of Drummond Community Bank, for $173m.
"Drummond Community Bank has an outstanding reputation for exceptional service and strong financial performance, with a deep commitment to the communities it serves for the last 32 years. We see great opportunity in complementing its strengths with Seacoast’s innovation and breadth of offerings to grow our presence and expand our position in the state. The transaction is expected to be significantly accretive to earnings in 2023 with modest dilution of tangible book value. We look forward to welcoming Drummond’s employees and customers to the Seacoast franchise," Charles M. Shaffer, Seacoast Chairman and CEO.
Drummon was advised by Hovde Group and Smith Mackinnon. Seacost was advised by Piper Sandler (led by Reid Brewer), Alston & Bird (led by Randy Moore) and Sachs Media.
Seacoast Banking Corporation of Florida, the holding company for Seacoast National Bank, completed the acquisiton of Apollo Bancshares, the parent company of Apollo Bank, for $168m.
"Apollo Bank is a customer-focused franchise with an outstanding reputation for service excellence and deep customer relationships in this important market. We see a great opportunity to grow our presence and expand our position in South Florida by complementing Apollo’s strengths with Seacoast’s innovation and breadth of offerings," Charles M. Shaffer, Seacoast Chairman and CEO.
Apollo was advised by Keefe Bruyette & Woods (led by Joseph Berry) and Fenimore Kay Harrison & Ford. Seacost was advised by Piper Sandler, Alston & Bird (led by Randy Moore) and Sachs Media.
Arco, a data-driven learning methodology provider, agreed to acquire a 75.1% stake in isaac, a provider of an all-in-one platform that offers a suite of financial and software products to K-12 schools, for $116m.
"The acquisition of isaac significantly expands Arco’s footprint in Brazil’s education ecosystem by increasing the scope of its portfolio of products, making Arco a true one-stop-shop for our partner schools, while establishing closer relationships with families. We made our decision to acquire isaac after being an early investor in the company and gaining confidence not only in its business model and growth potential as a standalone company but also in the synergies and opportunities that will arise from the combination of the two businesses as we become the world’s largest operating system for schools," Ari de Sá Neto, Arco CEO and Founder.
isaac was advised by Gunderson Dettmer Stough Villeneuve Franklin & Hachigian and Lefosse Advogados. Arco was advised by JP Morgan, Davis Polk & Wardwell (led by Manuel Garciadiaz) and Mattos Filho Veiga Filho Marrey Jr. e Quiroga Advogados.
Greenbelt Capital Partners, an investment company, and Trilantic Energy Partners, a private equity firm, completed an investment in Tenex Capital-backed Unirac, a designer and manufacturer of solar photovoltaic. Financial terms were not disclosed.
“We are excited to partner with Unirac’s executive team and Tenex to combine our significant experience in the solar and broader distributed energy sectors and support the continued growth of Unirac, which has consistently differentiated itself from the competition to become a leader in the space,” Chris Murphy, Greenbelt Partner.
Unirac was advised by Cowen & Company, Lazard, Koley Jessen and Prosek Partners. Greenbelt was advised by Kirkland & Ellis (led by Jhett Nelson, Shubi Arora and Leon Johnson).
DT Midstream, an operator of natural gas interstate and intrastate pipelines, completed the acquisition of an additional 26.25% stake in Millennium Pipeline, a gas distribution company, for $552m.
“Increasing our ownership in a premium integrated asset like Millennium Pipeline directly aligns with our strategic investment thesis and accelerates our growth plan. This transaction also increases the revenue contribution from our pipeline segment, underpinned by take-or-pay contracts with high credit quality customers,” David Slater, DT Midstream President and CEO.
DT Midstream was advised by Lazard and Shearman & Sterling (led by Omar Samji).
The US Federal Trade Commission pulled back in its first preemptive challenge to a takeover by Meta Platforms, dropping some claims from a lawsuit that seeks to block the tech giant’s acquisition of virtual reality app Within, Bloomberg reported.
The agency, which sued to block the deal on antitrust grounds July 27, said it asked US District Judge Edward Davila Friday to let it remove some allegations about anticompetitive effects in the market for virtual-reality fitness apps.
Walmart, an American multinational retail corporation, agreed to acquire Alert Innovation, an e-grocery fulfillment automation company. Financial terms were not disclosed.
“I am proud that Alert Innovation is one of the most innovative and capable automation companies in operation today. Our mission to improve people’s lives through innovation will now be dedicated to Walmart customers and associates which is an inspiring undertaking,” John Lert, Alert Innovation Founder and Executive Chairman.
Alert was advised by RAM Communications. Walmart was advised by Morgan Stanley.
The Riverside Company-backed InVita Healthcare Technologies, a healthcare supply chain company, completed the acquisition of BloodHub, a provider of supply chain automation for most of America's blood centers, hospitals, and patients. Financial terms were not disclosed.
“The BloodHub team has tirelessly worked to earn a well-established reputation as a leader in helping blood collection centers manage orders and optimize inventory. We are thrilled to bring BloodHub under the broader InVita portfolio and look forward to accelerating innovation across the combined company, including with BloodHub’s new IRL software," Garrett Monda, Riverside Principal.
The Riverside Company was advised by Jones Day (led by Joseph Hatina).
Light & Wonder, a cross-platform games and entertainment, completed the acquisition of House Advantage, a loyalty and marketing software and technology provider. Financial terms were not disclosed.
“By joining Light & Wonder, we will be able to expand the reach of our solutions and gain resources to accelerate the development of cutting-edge technology to help customers optimize player management. Convergence of disparate platforms and unification of data across these platforms into a contiguous customer experience is our hallmark, and we’re excited that Light & Wonder shares our player-centric mindset and our vision for creating a converged, cross-platform future," Jon Wolfe, House Advantage Founder and CEO.
The Riverside Company-backed SureWerx, a provider of safety products, tools and equipment, completed the acquisition of NEOS Overshoe, a designer and provider of protective overshoe products. Financial terms were not disclosed.
“Adding NEOS enables SureWerx to further expand its specialized and technical safety offering, furthering our goal to build SureWerx into a global leader in safety and productivity. We are thrilled to be adding this highly respected brand to our market leading portfolio of best-in-class safety products,” Brad Roberts, Riverside Co-Chief Investment Officer.
Holcim, a building materials manufacturer, completed the acquisition of the Polymers Sealants North America division of Illinois Tool Works, a producer of engineered fasteners and components, equipment and consumable systems, and specialty products. Financial terms were not disclosed.
“With PSNA we are broadening our waterproofing and coatings offering while delivering significant synergies with our roofing business. Building on their proven engineering and technical expertise, we will accelerate new product development and leading solutions together. I warmly welcome all PSNA employees into the Holcim family and look forward to investing in this business’ next era of growth together. By expanding our building envelope offering, together we can play a bigger role in providing innovative and sustainable solutions for energy-efficient buildings," Jamie Gentoso, Holcim Head Solutions & Products.
Copel, a Brazilian power company, agreed to acquire the 260MW two wind farms of EDP Renewables, an energy company, for $345m.\
“The acquisition is part of the company's strategy of growth in renewable energy, expands the diversification of the generation matrix and is fully in line with its investment policy,” Copel.
Somera Capital Management, an investment company, completed the acquisition of Quorum Hotels & Resorts, a hotel management company. Financial terms were not disclosed.
"We have well established regard for the culture and talent of Quorum and look forward to continuing the legacy for our associates, partners, and guests alongside a growing portfolio. We congratulate the founding partners on their 35 years of success and thank them for the opportunity to work with such a dedicated, dynamic, and talented leadership team in this new chapter," David Brown, Somera CEO.
CVS is in exclusive talks to acquire Cano Health.
CVS Health, an American healthcare company, is in exclusive talks to buy Cano Health, the health-care provider backed by billionaire Barry Sternlicht.
CVS is currently conducting due diligence on the Miami, Florida-based company. There is no certainty a deal will be reached, in part because Humana has a right of first refusal should Cano find a buyer under an agreement they made in 2019, Bloomberg reported.
EMEA
Davidson Kempner Capital Management is building its stake in Aveva Group and will join other investors in pushing Schneider Electric to up a £31 ($34.7) per share bid for the UK industrial software company, Bloomberg reported.
The hedge fund, which now has a holding of 3.5% in Aveva, and others may seek an improved offer of up to £35 a share. Davidson Kempner is continuing to add to its position.
Stanley Capital Partners, a private equity firm, completed the acquisition of a majority stake in Laboratoire XO, a French pharmaceutical group. Financial terms were not disclosed.
"SCP is pleased to partner with Karine Pinon and her impressive management team to accelerate Lab XO’s growth with a global footprint. All parties share a vision to couple further acquisitive growth with building leading lifecycle management capabilities to create a formidable specialist pharma player providing essential medicines to its customers in the patient community," Simon Cottle, SCP Founding Partner.
Stanley Capital Partners was advised by Willkie Farr & Gallagher (led by Gavin Gordon) and Brackendale Consulting.
Igor Borovikov, a Softline's founder and Chairman of the Board of Directors, agreed to acquire the Russian business fo Softline, a company which provides IT solutions and services, for $1.
“I am very proud to lead a company driven by a talented team who do incredible work for our customers in over 60 countries around the world. Softline Group’s success depends fully on our people, their capabilities, motivation and constant development. Together, we have built a great company, with a very strong track record for growth, and this provides a solid foundation for the next chapter for both independent organisations that will be leaders in their markets, Softline Russia and Softline Global. During this time of unprecedented change in our history, we have demonstrated an unwavering focus on delivering tangible value for our customers, while driving strong business results in line with our commitment to shareholders. It is an honour for me to lead Softline during this extremely important business period in our history, and I am confident that both companies will continue their progress with investments, growth and strategic initiatives to strengthen their leadership,” Sergey Chernovolenko, Softline Chief Executive Officer.
Softline is advised by Pagefield.
Waldorf, an oil and gas company, agreed to acquire the Dutch oil and gas assets of Abu Dhabi National Energy Company, an energy holding company. Financial terms were not disclosed.
The transaction remains subject to obtaining final regulatory and other third-party approvals. TAQA's exit from the Netherlands follows a strategic review of its oil and gas portfolio.
TAQA is advised by Jefferies & Company.
KKR agreed to acquire Telenor Fiber, a fiber optics services provider, from Telenor, a telecommunication services provider, for $1bn.
“We are very excited to be investing long-term capital behind Norwegian infrastructure. KKR has significant experience within telecom infrastructure investing, and we look forward to supporting Telenor with its fibre strategy in Norway," Julian Barratt-Due, KKR Director.
Pulp Invest, an investment company, completed the acquisition of the Russian operations of Sylvamo, a paper manufacturer, for $420m.
"We made a principle-based decision to exit Russia and believe Pulp Invest is the best option for our Russian colleagues and assets. We intend to use $325m of the proceeds to repay debt," Jean-Michel Ribiéras, Sylvamo Chairman and CEO.
American Tower weighs a $12.6bn offer for a stake in Vodafone towers unit. (FS)
American Tower, a real estate investment trust, is weighing entering the race for a stake in Vodafone’s $12.6bn wireless tower unit.
The US telecommunication infrastructure operator is exploring a possible investment in Frankfurt-listed Vantage Towers.
Vodafone plans to sell part of its roughly 82% interest in Vantage and has invited suitors to participate in an auction process. Private equity firms KKR, Global Infrastructure Partners and EQT Group are already in the running, Bloomberg reported.
Providence wins a $1.3bn auction for A2Mac1. (FS)
Providence Equity Partners has entered exclusive talks to buy French automotive data firm A2Mac1 for about $1.36bn, clinching one of Europe's rare private equity buyouts in a tough financing market, Reuters reported.
Providence signed an exclusive agreement with A2Mac1's owner Five Arrows Principal Investments last night, trumping rival bids from buyout funds EQT and TA Associates.
Five Arrows, advised by Harris Williams and Jefferies, will retain a minority stake in the business.
Assa Abloy is considering selling Yale, Emtek brands to win US approval for Spectrum deal.
Assa Abloy, a Swedish conglomerate, is considering options including selling its Yale and Emtek locks brands as it seeks to overturn US antitrust opposition to its planned purchase of Spectrum's Hardware and Home Improvement.
Owners of Parfums de Marly weigh a $495m sale.
The owner of Parfums de Marly is weighing a sale of the luxury scent maker. The brand’s founder Julien Sprecher is working with Jefferies to gauge interest in the company he founded in 2009. The company could fetch at least $495m in a sale.
The business could attract other perfume makers, family offices and buyout firms. Deliberations are ongoing and there’s no certainty they’ll result in a transaction, Bloomberg reported.
Credit Suisse eyes outside money for investment bank spinoff.
Credit Suisse is trying to bring in an outside investor to inject money into a spinoff of its advisory and investment banking businesses, as the firm aims to put the finishing touches on its planned overhaul, Bloomberg reported.
The bank is interested in an outside investor to take a partial stake in order to provide capital and help fund the costs of hiring and keeping talent.
Talks on reviving the First Boston name for the spun-out businesses, which would get most of their revenue from the US, are also advancing. The bank is also considering other options and deliberations are still ongoing.
Credit Suisse SPG unit draws Pimco, Centerbridge interest. (FS)
Pimco, Sixth Street and an investor group including Centerbridge Partners are among a shortlist of bidders for at least part of Credit Suisse Group’s securitized products business as the Swiss firm moves closer to a deal.
Centerbridge is vying for the unit in its capacity as co-asset manager for Martello Re, a life and annuity reinsurance company. It isn’t immediately clear if Pimco is pursuing a deal alone or as part of an investor group. Sixth Street is also bidding, Bloomberg reported.
The discussions have become more advanced as Credit Suisse is due to announce its strategic plan in less than three weeks.
Barclays names Maiorana co-head of European financial coverage. (People)
Barclays has promoted a senior dealmaker to lead its coverage of financial institutions in Europe as part of an ongoing shake-up of its investment bank, FN reported.
Luca Maiorana, who currently leads the bank’s fintech and asset managers dealmaking unit, has been named co-head of financial institutions for Europe, the Middle East and Africa, according to a memo sent to employees by Joel Fleck and Arif Vohra, global co-heads of the division.
Maiorana, who joined Barclays from Rothschild in 2010, will lead Barclays’ European FIG team alongside Enrique Pinel. Maiorana also headed up Barclays’ emerging Europe FIG team. Vohra, who previously co-headed FIG in Europe at the UK lender, was named co-global head of financial institutions as part of a broader shake-up of Barclays’ investment bank. He only joined Barclays in June from Bank of America.
APAC
EIG Global Energy Partners-backed MidOcean Energy, a natural gas firm, agreed to acquire the liquefied natural gas investments of Tokyo Gas, a provider of natural gas, for $2.15bn.
“The launch of MidOcean reflects our deep belief in LNG as a critical enabler of the energy transition and the growing importance of LNG as a geopolitically strategic energy resource. We believe this transaction provides MidOcean with a foundational portfolio of cost-advantaged integrated LNG assets in a low-risk jurisdiction, ideally positioned to supply key customers in Japan, Asia and across the globe for decades to come,” R. Blair Thomas, EIG chairman and CEO.
EIG is advised by Barclays, Barrenjoey Capital Partners, JP Morgan and White & Case.
Searchlight Capital Partners, a private equity firm, agreed to acquire a minority stake in Synergy Marine Group, a company which provides full ship management services for contemporary ships. Financial terms were not disclosed.
“We have always believed in and implemented a strong culture of customer centricity in Synergy. Now, to be able to further continue creating incremental value for our clients, we need to look at newer operating models focused on a value driven partnership as opposed to the present vendor mindset in the ship management industry. Amongst other things, this could be driven by digitalization especially considering the increased regulatory complexity and ever growing ESG considerations. Hence, we are excited to partner with Searchlight, who have a strong and demonstrable track record of rigorous transformation and operational excellence execution. With this transaction, we welcome new partners, Searchlight and our fellow Synergy colleagues, into the ownership of Synergy,” Rajesh Unni, Synergy Founder and CEO.
Searchlight was advised by Prosek Partners.
Mizuho Securities, an asset management company, agreed to acquire a 20% stake in Rakuten Securities, an Internet securities company focusing on online transactions, from Rakuten, a digital services company, for $550m.
Through the deal, Mizuho hopes to tap Rakuten Securities' online brokerage expertise as well as its relatively young clientele at a time of stiff competition for traditional face-to-face brokerage services.
About Capital, a fund management company, completed the acqusiition of a majority stake in Huobi Global, a virtual asset exchanges company. Financial terms were not disclosed.
"This transaction marks a new chapter for Huobi Global. Over the past nine years, we have witnessed Huobi's ascendence into one of the largest virtual asset exchanges in the world. Following Huobi's exit from the Chinese mainland market in 2021, we have accelerated our globalization push amidst a challenging market environment, which adds to the impetus for Huobi to seek a new shareholding structure with a global vision and international resources. We believe the successful acquisition by About Capital vehicle will contribute to Huobi's global expansion in both aspects," Leon Li, Huobi Founder.
RattanIndia Enterprises, an India-based company, which operates in electric mobility sector, agreed to acquire Revolt Motors, an automotive company. Financial terms were not disclosed.
“Revolt is currently by far the best EV bike in the world. It is truly world class in all aspects – its technology, cost, build quality and performance. With this acquisition of 100% shareholding in Revolt Motors we are doubling down on our belief that EV revolution in the country is coming in faster than we anticipate. I do not have any doubt that what is good for environment and the country makes for a great business. Indian’s are very keen customers when they see value. We are ready for next growth phase for Revolt Motors," Anjali Rattan, RattanIndia Enterprises Chairman.
India offers to sell a 60.72% stake in IDBI Bank.
The Indian government is looking to sell a 60.72% stake in $5.6bn IDBI Bank and has invited expressions of interest.
The federal government and the state-owned Life Insurance of India together own about 95% in the lender. The government will sell 30.48% of its stake in the bank, while LIC will offload 30.24%, along with transfer of management control.
Banks, foreign lenders, shadow banks, alternate investment funds and offshore funds have been allowed to place bids. However, large industrial and corporate houses and individuals are not eligible to bid. Bids can be submitted by single entities or as part of a consortium and potential bidders should have a minimum capital net worth of at least $2.85bn, Reuters reported.
Binance may spend over $1bn on M&A.
Binance Holdings founder and CEO Zhao “CZ” Changpeng said the world’s biggest digital-asset exchange may spend more than $1bn on acquisitions and investments this year despite what is shaping up to be a prolonged crypto winter.
Binance has committed $325m to 67 projects so far this year, compared with $140m for 73 projects in 2021. That doesn’t take into account a possible more than $200m investment in the Forbes media company and $500m in financing for Elon Musk’s on-again acquisition of Twitter, which could carry into next year if it gets done at all, Bloomberg reported.
Nissan presses partner Renault to sell down its stake.
Nissan Motor is pressing partner Renault to sell down a portion of its stake in the Japanese auto maker as part of a grand bargain to reorganize its more than two decade-old alliance with the French car company.
The negotiations include whether Nissan will join a new unit Renault is creating to house its electric-vehicle assets in exchange for the French car maker winding down its stake in Nissan.
Top executives from Renault and Nissan have been shuttling back and forth between Japan and France to hammer out the details of the deal, which, if agreed, could be announced as early as November, WSJ reported.
SphitiCap launches maiden fund with a total corpus of $500m. (FS)
SphitiCap, a venture capital firm, has announced the launch of its maiden venture fund with a total corpus of $500m, which the firm is in the midst of closing.
"The investing landscape in India is exceptionally diverse. With new businesses sprouting daily, we are determined to decentralize the startup revolution and give impetus to founders who are resolved to make a difference and solve real-world problems. As a sector agnostic India-centred firm, we focus on value rather than valuation," Pallav Kumar Singh, SphitiCap Managing Partner.
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