EMEA
Bowmark Capital is backing buy-out of Pirum Systems, a London based provider of post-trade market infrastructure technology for the global securities finance industry, from Five Arrows Principal Investments. Financial terms were not disclosed.
Pirum Systems provides fully hosted, multi-tenanted SaaS platform services to over 120 market participants, processing over $2tn of trades and collateral daily.
“Twelve years of uninterrupted revenue growth is a great testament to Pirum’s management team. Having known the company since 2011, we are delighted to be backing Rajen and his colleagues as they capitalise on the significant opportunities opened up by continued product innovation and regulatory change. We are also delighted to be working with Pirum’s chairman, Donal Smith, and its founder and non-executive director, Rupert Perry, both of whom will continue in their current roles. Previously, Donal was chief executive of Data Explorers when it was backed by Bowmark.” Julian Masters, Bowmark Capital Managing Partner.
Five Arrows is advised by Houlihan Lokey.
Laurel Solutions, an affiliate of private equity firm FFL Partners acquired Servelec Technologies, a UK based market-leading provider of remote monitoring systems, secure SCADA systems, and business optimisation software providing complete end-to-end automation and optimisation solutions to clients around the world. Financial terms were not disclosed.
“We are excited to partner with Servelec Technologies’ highly-talented management team, and plan significant investment in innovative products and solutions that will enhance the Company’s already outstanding offerings.” Martin Carter, Laurel Solutions CEO.
illy, an Italian coffee and chocolate company acquired Prestat, the UK chocolatier. Financial terms were not disclosed.
The deal will give Illy better distribution for its products via Prestat’s sales network in the UK, US and Australia.
“Where Domori goes from bean to chocolate, Prestat goes from chocolate to truffles. It is perfectly integrated. We have a similar approach philosophically. Both companies are looking at producing and selling super premium products,” Riccardo Illy, illy President.
APSE Capital acquired a 31% stake in Kallidus Holdings, leading human capital management, and e-learning software as a service (SaaS) provider from FPE Capital. Financial terms were not disclosed.
“It has been fantastic to see Kallidus grow and to be part of its development as it benefits from its major investment into the core software platform and expanded product offering. We would like to congratulate the team on their significant achievements in the past few years during our partnership with them, and to wish them continued growth and success.” Henry Sallitt, FPE Managing Partner.
Kallidus is advised by CIL, Houlihan Lokey, RSM, and Charles Russell Speechlys. FPE Capital is advised by Momentum Corporate Finance and Capital Law.
Deutsche Bank and Commerzbank officially started merger talks.
The senior management of Deutsche Bank and Commerzbank have begun exploratory merger talks after the executive boards of Germany’s two largest listed lenders agreed to evaluate the benefits of a tie-up.
“We confirm that we are engaging in discussions with Commerzbank,” Deutsche Bank said in a regulatory statement, adding that “there is no certainty that any transaction will occur", Financial Times reported.
Commerzbank informed investors that both lenders “have agreed today to start discussions with an open outcome on a potential merger”.
OTP Bank best bidder for Slovenia's Abanka.
OTP Bank, Hungarian financial services company, has filed the best bid for state-owned Abanka, Slovenia’s third-largest bank, with an offer of close to €300m ($339m), as reported by Reuters.
State investment fund Slovenian Sovereign Holding is in charge of the privatization of Abanka. OTP was also interested in buying SKB bank, the Slovenian unit of French bank Societe Generale, and had already conducted due diligence on the group.
Slovenia is aiming to sell the whole of Abanka by the middle of 2019 to meet the conditions of a deal to win European Commission approval for state aid to the bank in 2013.
Interserve to be taken over by its creditors.
Interserve, one of the British government’s biggest contractors, was taken over by its lenders after shareholders rejected a rescue plan for the debt-laden company. The company’s lenders include RBS, HSBC, BNP Paribas and hedge funds Emerald and Cerberus.
Interserve employs 68k people globally, including 45k in Britain, to clean schools and hospitals, run probation services and build roads and bridges.
EY was appointed as an administrator with Interserve.
Saipem joint venture push with US drillers.
Saipem, an Italian oil services company, intends to enter into joint ventures with big US rivals but has so far failed to secure deals for stakes in drilling operations valued at up to €1.5bn ($1.7bn), reported Reuters.
Saipem has been reviewing options for its onshore and offshore assets for the past nine months. The Milan-based company hired Citi last year to sound out interest from land-based rig businesses including Patterson-UTI, Pioneer Energy Services, and Helmerich and Payne.
The Company also approached Swiss driller Transocean, which has operations across the United States and Canada, to combine some of their respective assets but talks have failed to take off.
Ex-Steinhoff executives used €6.5bn in fake transactions.
Executives used €6.5bn ($7.35bn) in fake transactions to inflate the value of Steinhoff before the international retail group collapsed in 2017.
A former “senior management executive” at the South Africa-based company, which owns Poundland in the UK and Mattress Firm in the US, led the fakery, “which had the result of substantially inflating the profit and asset value” of the group.
The 14-month investigation by PwC was commissioned after the discovery of an accounting black hole that wiped $15bn from Steinhoff’s shares in 2017. Markus Jooste, the group’s longtime chief executive, resigned in the wake of the scandal which Steinhoff only survived through doing a deal with creditors.
KGHM does not plan to sell Sierra Gorda mine.
KGHM, a Polish mining company, does not intend to sell its Sierra Gorda copper mining project in Chile.
KGHM has a controlling stake in Sierra Gorda, which is also part-owned by Japan’s Sumitomo Corp, has been hit by high production costs and other problems.
“At the moment we do not have plans to sell the Sierra Gorda asset, even though the project historically has been difficult we are now managing to rebuild its value,” Marcin Chludzinski, Chief Executive KGHM.
Allianz considers combining its asset management unit with DWS.
The German insurer Allianz is investigating combining its asset management business with DWS, which is mostly owned by Deutsche Bank, Bloomberg reported.
The insurer is looking to create a business with €1.17tn ($1.33tn) under management. Allianz’s deliberations are at an early stage and may not lead to any formal talks or agreement. DWS is one of Deutsche Bank’s crown jewels and the lender is reluctant to sell its holding in the stock-listed unit.
Still, such a transaction could help Deutsche Bank finance a merger with Commerzbank.
AMERICAS
Judge Richard Leon, a judge from US District Court for the District of Columbia, issued order to discuss health insurer Aetna merger with CVS Health, a US pharmacy chain and benefits manager, on April 5.
The $69bn transaction closed in November 2018.
Aetna was advised by Davis Polk & Wardwell, Allen & Company, Evercore and Lazard. CVS Health was advised by Bank of America Merrill Lynch, Barclays, Centerview Partners, Goldman Sachs, Dechert, McDermott Will & Energy, Shearman & Sterling, and Sullivan & Cromwell.
The US Federal Reserve will hold two public hearings related to BB&T Corp’s proposal to acquire SunTrust Banks.
The deal is the biggest bank merger since the 2007-2009 global financial crisis and has been subject to much criticism post announcement.
BB&T is advised by RBC Capital Markets and Wachtell, Lipton, Rosen & Katz. SunTrust is advised by Goldman Sachs, SunTrust Robinson Humphrey, and Sullivan & Cromwell.
Vice Chancellor Sam Glasscock of the Delaware Chancery Court said that Vintage’s failure to inform Rent-A-Center that it was extending the merger deal by an agreed-upon date triggered Rent-A-Center’s right to call it off under the two parties’ contract.
Rent-A-Center is a “rent-to-own” business, allowing customers to rent furniture, electronics and other goods with the option of eventually purchasing them.
“We are pleased that the court has affirmed the validity of our termination of the merger agreement with Vintage Capital,” Mitch Fadel, Chief Executive Rent-A-Center. He added “Looking ahead, we will continue to focus on executing our strategic plan to grow our business and enhance value for our stockholders.”
Rent-A-Center also maintains that Vintage owes it a $127m termination fee, which was guaranteed by Vintage Capital’s banker, B. Riley Financial. The fee is much higher than most termination fees, which are typically about three percent of a deal’s value.
Rent-a-Center was advised by JP Morgan, Sullivan & Cromwell and Winston & Strawn. Vintage Capital was advised by B. Riley, Guggenheim, and Wilson Sonsini Goodrich & Rosati.
BioScrip and Option Care Enterprises, US-based largest independent providers of home infusion therapy services, merged. Option Care CEO John Rademacher and CFO Mike Shapiro will lead the combined company. BioScrip President and CEO Daniel Greenleaf will become a special adviser to the company’s board of directors.
“This is a compelling and complementary fit of two leading players in the U.S. infusion market,” Greenleaf said. “Together, we will be able to provide a diverse set of life-improving and cost-effective services to more patients across the United States. Our expanded reach and the broader array of offerings provide a key competitive advantage at a time when the demand for home and alternate site infusion services continues to grow.”
Expected benefits of the transaction include improved, cost-effective patient care; enhanced scale and therapy offerings; a “powerful growth engine in an attractive industry”; and compelling financial benefits, the companies say.
Option Care is advised by Kirkland & Ellis.
LBO France has acquired a majority stake in the capital of the Passman group, a
Villeurbanne based digital solution company. Financial terms were not disclosed.
The Passman group has over 70 employees and more than 5.9k clients in France with presence in 42 countries. The Company had revenues of €27m in 2018, with an average annual growth rate of more than 15% over the past ten years.
“Our ambition is to support the company’s founders in their external growth project. We want to help them in this structuring phase to become a fully-fledged acquisitions platform. In 2018, the Group acquired its Belgian competitor Screen Services, a company specialising in digital solutions for the hotel sector and care facilities and intends to continue to pursue its international development.” Jean-Marie Leroy,LBO France Partner.
Envestnet, a provider of intelligent systems for wealth management and financial wellness, acquires PIEtech, a US based creator of the MoneyGuide family of financial planning applications. Financial terms were not disclosed.
MoneyGuide solutions – including MoneyGuideOne, MoneyGuidePro and MoneyGuideElite – are integrated with more than 150 wealth management data and technology providers and serve tens of thousands of financial advisors across enterprise, institutional and independent firms.
“We have admired the MoneyGuide offerings for some time, and recently announced our collaborative partnership with Apprise Labs and the PIEtech team. With MoneyGuide’s financial planning applications more deeply integrated into Envestnet’s wealth management solutions, enterprises, advisors and their clients can benefit from a frictionless wealth management technology solution across the application stack, driving higher productivity and better client outcomes.” Jud Bergman, Envestnet Chairman and CEO.
TorQuest Partners acquired Prepac Manufacturing, a manufacturer of ready-to-assemble home furniture sold exclusively through online retailers. Financial terms were not disclosed.
Prepac was an early mover into the online retail space and began drop-shipping its products directly from its manufacturing facility to the end customer's doorstep.
“Steve Simpson and the management team have steered the business on an impressive growth trajectory over many years. The expertise within the business and operational excellence give us great confidence that the business will continue to thrive.” Rachel Skelton, TorQuest Partners Principal.
Gamut Capital-backed JPW Industries rumoured to have acquired Baileigh Industrial, metal machinery and metal fabrication equipment company for almost $150m, as reported by PEHub.
Petrobras CEO plans $10bn diverstment in Q1 2019.
Petroleo Brasileiro SA, a Brazil-based petroleum company intends to divest close to $10bn assets in the first four months of 2019, aided by the sale of a significant pipeline unit.
“The firm is accepting the final round of bids for its TAG gas pipeline unit on April 2, which is expected to bring in several billion dollars and will likely be the company’s largest-ever asset sale” told Reuters.
JBS, Pilgrim’s Pride executives face US trial in a lawsuit over Moy Park deal.
Brazilian meat processor JBS SA and its US-based subsidiary Pilgrim’s Pride Corp executives will face trial regarding a shareholder lawsuit questioning the acquisition of Moy Park in 2017.
Based in Northern Ireland, poultry processor Moy Park was a subsidiary of JBS as well. Minority Pilgrim’s shareholders sued the company’s executives, including board members appointed by its parent, after the $1.3bn acquisition, saying Pilgrim’s was forced by JBS to purchase conditions that were not favourable.
Constellation nears deal to sell some wine brands.
Corona beer maker Constellation Brands is in advanced talks to sell some of its low-end wines to privately held E.&J. Gallo Winery.
In early February, Constellations said it was looking to sell some of its lower-end wine brands, as it doubles down on more profitable high-end segment and shift towards beer and cannabis products that target a younger demographic.
The sale could fetch around $2bn or less, adding that the talks are still ongoing and could fall apart.
Blackstone Group agreed to buy Ayumi Pharmaceutical, a Japanese drug maker. Financial terms were not disclosed.
Blackstone will acquire the maker of anti-rheumatism drugs from PE firm Unison Capital and medical information site business M3.
“We look forward to working with the company to leverage Blackstone’s global footprint and expertise in this sector to help Ayumi meet the growing need for its RA (rheumatoid arthritis) and orthopedic products,” Atsuhiko Sakamoto, head of Blackstone’s PE business in Japan.
Itochu, a Japanese trading company, gathered a 40% stake in Descente, a Japanese sportswear maker, setting the stage for a rare hostile takeover in Japan’s consensus-driven market.
Descente licensed brands includes Le Coq Sportif, Munsingwear and Umbro with major focus in the South Korean market.
Itochu, with close to 30% stake in Descente shares, offered to buy more from other shareholders at a 50% premium in January. With more than one-third stake in Descente, Itochu has veto power over acquisitions and other strategic decisions. Including nominating Descente’s board members as well.
Global Power Synergy Company (GPSC), the power generating unit of state-owned PTT, acquired a portion of Glow Energy, in one of Southeast Asia’s largest energy deals. The deal brings GPSC’s electricity generating capacity to close to 4.7k megawatts.
GPSC purchased 69.1% in Glow from France’s Engie SA for 93bn Bhat ($2.93bn). Glow Energy is also preparing a mandatory tender offer for remaining 30.89% held by public investors for 40bn Baht.
“France’s Engie sale of Glow was in line with the company’s strategy of reducing coal assets and carbon footprint” Isabelle Kocher, Engie CEO.
A consortium headed by Jin Jiang International Holdings acquired Radisson Hospitality and Radisson Holdings from HNA Group.
The deal was initially announced on 11 Dec 18 and outcome of the tender offer was known on 5 Feb 19.
Jin Jiang was advised by Lazard, Baker McKenzie, PwC, Aktieinvest, and Pareto Securities. Radisson was advised by Benedetto Gartland & Company, Rothschild & Co, and Gernandt & Danielsson.
Dubai’s IMG explores options for largest indoor theme park.
Ilyas & Mustafa Galadari Group (IMG), Dubai based owner of IMG Worlds of Adventure theme park, the world’s largest indoor theme park is exploring options for the business, including a possible sale after struggling to restructure a 1.2bn dirham ($327m) loan.
In 2017, the company had been working with JP Morgan and EFG-Hermes Holding SAE on a possible initial public offering.
Samara to acquire 3i Infotech. (FS)
Samara, a private equity firm, plans to purchase 3i Infotech, an Indian based IT services firm at an enterprise value of $140-150m, Times of India reported.
Per the news report, the deal is triggered by lenders of the cash-strapped company, which has been undergoing debt restructuring since 2016 after it defaulted on foreign currency convertible bonds (FCCBs).
Sony plans to acquire a stake in Zee.
Sony, a Japanese conglomerate, is in advanced talks to buy 20-25% stake in Zee Entertainment, India based mass media company, at 30% premium.
The transaction will allow repaying promoter debt worth 1.3bn ($190m) rupees. Reliance Industries had also put in a bid for the company, but the negotiations did not materialise.
|
