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AMERICAS
Bank of America is leading a $1.83bn leveraged loan for Lone Star Funds’ purchase of Carrier Global’s commercial and residential fire unit, Bloomberg reported.
The proposed buyout, announced two weeks ago and expected to close by year-end, is worth $3bn on an enterprise value basis.
Lone Star is advised by Citigroup. Carrier is advised by Goldman Sachs, JP Morgan, Linklaters (led by Matthew Devey and Derek Tong) and Paul Weiss Rifkind Wharton & Garrison (led by Laura Turano).
First Busey, the holding company for Busey Bank, agreed to merge with CrossFirst Bank, a bank, in a $917m deal.
“The partnership between our high-quality franchises is a great fit from a strategic, financial and cultural perspective, and we look forward to capitalizing on the many opportunities we see as a combined company in 2025 and beyond. CrossFirst is a natural fit alongside Busey’s established commercial and wealth management offerings and our payment technology solutions business, FirsTech," Van Dukeman, Busey Chairman and CEO.
CrossFirst Bank is advised by Keefe Bruyette & Woods and Squire Patton Boggs (led by Jim Barresi). First Busey is advised by Raymond James and Sullivan & Cromwell (led by Mark J. Menting).
New Mountain Capital-backed Qualus, a pure-play power services firm and innovator at the forefront of the energy transition, agreed to acquire PFES, a specialized and differentiated provider of program management and strategic advisory services to the power industry and utilities. Financial terms were not disclosed.
“The addition of PFES to Qualus will broaden our service offerings and enhance the ability of both firms to provide clients with more robust, comprehensive solutions and resources, by deploying our full range of capabilities from strategic advisory to program development and management, to engineering and digital solutions, to specialized field services, to full program and project delivery. We look forward to welcoming the PFES team to Qualus and are excited for the opportunities this combination will create for our people and clients,” Dr. Hisham Mahmoud, Qualus Chairman and CEO.
PFES is advised by Houlihan Lokey and AEC Advisors. Qualus is advised by Environmental Financial Consulting Group. Debt financing is provided by Goldman Sachs.
Capgemini, a technology services and consulting company, agreed to acquire Syniti, a data migration, quality, and governance capabilities all in one platform provider, from Bridge Growth Partners, a private equity firm that targets investments in the technology and technology-enabled services sectors. Financial terms were not disclosed.
“As a highly focused investment firm building differentiated and strategically relevant technology companies, we are incredibly proud of the growth and development Syniti achieved. With the active support of our full team, including our highly experienced advisors, Syniti’s leadership team and employees transformed the company into a true market leader in data management that we believe will be an excellent strategic fit with Capgemini," Alok Singh, Bridge Growth Partners CEO.
Syniti is advised by Evercore and Willkie Farr & Gallagher. Bridge Growth is advised by FGS Global (led by Kevin Siegel).
Callaway Capital, an alternative asset management firm, completed the acquisition of Platinum Parking, a parking services and management company. Financial terms were not disclosed.
"It is an honor to be part of the leadership legacy of Platinum Parking, and we are thrilled to partner with CalHudson and industry veterans like Jerry Skillett. This partnership represents yet another leap forward toward realizing our mission of delivering exceptional service and asset value creation for our clients. The capital resources and parking expertise that CalHudson brings to the table will be a cornerstone for our continued growth and success," Matt Adey, Platinum Parking President.
Callaway Capital was advised by Marsh, KPMG and Fenwick & West.
Citation Capital, a private equity firm specializing in partnering with founder- and family-led businesses, completed the acquisition of a majority stake in Aptive Environmental, a pest control company. Financial terms were not disclosed.
"We are thrilled to partner with Citation as we embark on this next chapter of growth for Aptive. Citation's investment in Aptive underscores the exceptional company we have built over the past decade. We look forward to driving further growth in partnership with Citation and continuing to carry out our mission of providing top-tier services and helping people to better enjoy their homes," Vess Pearson, Aptive Co-Founder and CEO.
Citation Capital was advised by Weil Gotshal and Manges (led by Chris Machera) and Prosek Partners.
Wynnchurch Capital-backed M2S Group, a materials science company, completed the acquisition of a label solutions business from Atlas-backed Iconex, a provider of innovative label solutions and paper receipts that boost efficiency and sustainability. Financial terms were not disclosed.
"Combining Iconex with M2S Group provides additional high-performance variable print label solutions to our customers and expands our portfolio of proven technology. This transaction fully aligns with our long-term growth and diversification objectives. We are excited to welcome the Iconex coworkers and customers to M2S Group and are looking forward to continued success," Paul Charapata, M2S CEO.
DFW Capital, an investment company, completed the acquisition of Bart & Associates, an information technology systems integrator, from Battle Investment, an investment management firm. Financial terms were not disclosed.
Building on the strong foundation laid by B&A’s previous partnership with Battle, this new partnership with DFW positions B&A to accelerate its trajectory and unlock new opportunities.
Bart & Associates was advised by DC Advisory (led by Chris Oliver).
Mill Rock Packaging, a specialty packaging platform that invests in companies with advanced service and product capabilities in the consumer packaging industry, completed the acquisition of Woodland packaging and laminating facility from Everett Graphics, a producer of innovative folding-carton packaging solutions. Financial terms were not disclosed.
"I can't think of a better home for our laminating unit, and I'm excited to be partnering with Mill Rock Packaging on our growing tray offering. Their extensive network of facilities will be a valuable asset as we continue our mission to assist customers in replacing single-use plastic," Whit Everett, Everett Graphics CEO.
Lions Gate sued by pension fund seeking to block Starz split.
One of the world’s largest pension funds sued Lions Gate Entertainment to block the movie and television studio from separating from its struggling Starz cable and streaming service via a blank-check merger, Bloomberg reported.
Canada Pension Plan Investment Board, which manages nearly $700bn, filed a lawsuit on August 27 in New York alleging Lions Gate violated obligations to investors in a $1bn 2021 note issue in order to pave the way for its profitable studio business to be transferred to a special purpose acquisition company.
Samsung SDI finalizes deal with GM to build $3.5bn joint EV battery factory in US.
South Korea's Samsung SDI has completed an agreement with General Motors to build a joint electric vehicle battery factory in the US state of Indiana, Reuters reported.
The two companies will invest about $3.5bn to build a battery cell manufacturing plant with an annual production capacity of 27GWh initially. The joint plant aims for mass production in 2027 and annual capacity is expected to potentially rise to 36 GWh under expansion plans.
NFL allows private equity firms to invest in teams. (FS)
The owners of the National Football League have loosened some of the strictest ownership rules in professional sports and allowed some private equity firms to buy up to a 10% stake in a team, Reuters reported.
Firms initially approved by the NFL include Ares Management, Arctos Partners and Sixth Street in addition to a consortium comprising Blackstone, Carlyle, CVC, Dynasty Equity and Ludis. The private equity firms plan to invest a total of $12bn in up to six NFL teams each.
Exxon seeks to sell conventional Permian assets for $1bn.
ExxonMobil is looking to sell a package of conventional oil assets in the Permian Basin as the company focuses on growing shale production after buying Pioneer Natural Resources earlier this year, Bloomberg reported.
The package includes older wells in the Permian's Central Basin that produce small but stable amounts of oil. It could fetch about $1bn, but is highly dependent on oil prices. The value of deals in the oil and gas sector has doubled to $210bn this year.
Vale shares rise as markets welcome CEO appointment. (People)
Shares of Vale rose on August 27 as analysts and investors welcomed the appointment of Gustavo Pimenta as the Brazilian miner's next CEO, Reuters reported.
Pimenta has served as Vale's CFO since 2021 after 12 years as an executive at US energy company AES. Analysts expect the decision to reduce uncertainty about the miner's strategy and remove an overhang on Vale's stock that has depressed its shares this year.
Goldman Sachs hires power banker Tyler Miller from Citigroup. (People)
Goldman Sachs Group has hired veteran power banker Tyler Miller from rival Citigroup as a partner in its natural resources group, Bloomberg reported.
Miller most recently led a similar team for Citigroup, where he was a managing director. At Goldman Sachs, Miller will be global co-head of power, utilities and infrastructure.
Barclays hires Morgan Stanley’s Douglass to run sponsors M&A. (People)
Barclays, seeking to capitalize on the lucrative fees that come with private equity firms selling their assets, has hired Martin Douglass from Morgan Stanley to lead its financial sponsors mergers and acquisitions business, Bloomberg reported.
Douglass is joining London-based Barclays in New York and will report to Dan Grabos, head of Americas M&A. He’ll work closely with JF Astier, the bank’s global head of the financial sponsors group, and Christian Oberle, its head of the sponsors group in the Americas.
EMEA
Abu Dhabi National Oil Company is finalising due diligence for a takeover of Covestro in a deal that could reach €11.7bn ($13bn), Reuters reported.
An announcement could come in September as the process enters its final phase, with a price of €62 ($69) per Covestro share still on the table.
Covestro is advised by FGS Global (led by Sebastian Mewissen). ADNOC is advised by Morgan Stanley.
MaxAB, a B2B e-commerce platform, completed the merger with Wasoko, a Kenyan e-commerce firm. Financial terms were not disclosed.
“In line with the shift in focus on what’s important or not, we’ll decline to state specific GMV; however, what I will emphasize is that we are now making a net contribution margin or net profit per order, which wasn’t the case in the back in the day in the GMV maximizing period,” Daniel Yu, Wasoko CEO.
OakNorth to seek US deals after winning approvals for expansion.
OakNorth Bank will look to buy an existing business or a bank in the US after the British lender got regulatory approvals to expand its presence in the world’s biggest economy, Bloomberg reported.
The US Federal Reserve and the New York State Department of Financial Services this month allowed the London-headquartered bank to set up a representative office in New York, market its products and services, and undertake other activities such as back-office operations and market research.
CVC in talks to invest in $3bn property manager Odevo. (FS)
CVC Capital Partners is in talks about a potential investment in residential property manager Odevo, a company formed through a combination of Sweden’s Nabo and SBC with UK-based Rendall & Rittner.
The private equity firm has been discussing the purchase of a significant minority stake in Odevo. A transaction could value Odevo at more than $3bn, Bloomberg reported.
Ted Baker owner picks US partner to run UK online business after shop closures.
Authentic, the owner of Ted Baker, announced that it has struck a deal with an American group to re-establish an online presence in the UK, days after its remaining retail stores were shut for good, Sky News reported.
United Legwear and Apparel will takeover the management of the Ted Baker brand in Britain and Europe to operate an e-commerce presence for the brand in Britain and Europe.
John Wood Group sells businesses after collapsed takeover bid.
UK engineering company John Wood Group has sold two businesses for $165m as it seeks to persuade investors of its future as a standalone company, following two collapsed takeover bids in just over a year, FT reported.
Wood, based in Aberdeen in north-east Scotland, said it was selling its stakes in EthosEnergy, a joint venture focused on turbines and other rotating equipment, and CEC Controls, an industrial and process control systems business.
Repsol calls off sale of Norwegian subsidiary.
Spanish oil company Repsol has called off the sale of its Norwegian unit, Repsol Norge and will prioritize the disposal of other assets, Reuters reported.
The assets include seven producing fields with net reserves of 53m barrels of oil equivalent (mmboe), 36% of which are gas, and a projected 2024 net production of 29 mmboe.
JD Sports-backed Applied Nutrition plans London IPO this year.
Applied Nutrition, a sports nutrition, health and wellness company, is preparing for an initial public offering in London in the fourth quarter of this year, Bloomberg reported.
The Liverpool, UK-based company, which counts JD Sports Fashion among its backers, is actively readying itself for a first-time share sale on the main market of the London Stock Exchange.
Sweden’s NOBA Bank expands its strategic review to include IPO. (FS)
Swedish lender NOBA Bank Group says it’s evaluating a possible public listing of the company, Bloomberg reported.
Owner Nordic Capital has lined up banks including Goldman Sachs, JPMorgan Chase and Carnegie Investment Bank to work on a potential listing of the business.
APAC
Walt Disney and Reliance Industries have won approval for an $8.5bn merger of their Indian media assets subject to some modifications, India's antitrust watchdog said on August 28, after the deal sparked concerns over control of cricket broadcasts.
Reliance-Disney aims to create India's biggest entertainment player to compete with Sony, Netflix and Amazon with 120 TV channels and two streaming services.
Disney is advised by Citigroup, The Raine Group (led by Rounak Chandak), AZB & Partners (led by Ashwath Rau and Kashish Bhatia), Cleary Gottlieb Steen & Hamilton (led by Nallini Puri) and Covington & Burling. Reliance is advised by Ernst & Young, Goldman Sachs, Khaitan & Co (led by Deepak Jodhani, Tanu Banerjee, Haigreve Khaitan and Mehul Shah), Shardul Amarchand Mangaldas & Co (led by Pallavi Shroff) and Skadden Arps Slate Meagher & Flom (led by Howard Ellin). Viacom18 is advised by BDO, Ernst & Young, Goldman Sachs, HSBC, Khaitan & Co and Shardul Amarchand Mangaldas & Co. Paramount is advised by J. Sagar Associates (led by Bharati Joshi and Lalit Kumar).
Kirin extended again its deadline to buy a majority stake in Fancl, as a hedge fund’s sizeable holdings in the skincare brand raised doubts about the brewer’s ability to secure control, Bloomberg reported.
Kirin set a new Sept. 11 end-date for its tender offer, even as it said in an exchange filing on August 28 that it had already received enough shares of Fancl to complete the takeover bid. But shareholders are free to retract their offers anytime until the deadline.
Fancl is advised by UBS. Kirin is advised by Nomura.
VerSe Innovation, a technology platform that delivers personalised content to users based on their preferences, completed the acquisition of a majority stake in Valueleaf Group, an Indian digital advertising company. Financial terms were not disclosed.
“What we found with Valueleaf is that they were very strong in four core verticals: gaming, online commerce, banking and financial services, and digital-native brands, which are largely the four verticals that spend 80% of all their ad dollars on performance marketing. That was an added benefit that came to the table. In addition to India, Valueleaf also serves customers in the US and UAE," Umang Bedi, VerSe Co-Founder.
GRM, a rice exporter, completed the acquisition of a 44% stake in Rage Coffee, an instant coffee maker. Financial terms were not disclosed.
GRM, which mainly deals with rice, flour and edible oils, said it bought the stake in Swmabhan Commerce through primary infusion and secondary buyouts.
Apple eyes bigger slice of India's streaming music market with Airtel deal.
Apple is tying up with India's Bharti Airtel to offer the telecom firm's premium customers its music and video streaming services for free, giving the US giant access to thousands of consumers in the world's most populous nation, Reuters reported.
With mostly English-language content, Apple TV+ is a small player in India's $28bn media and entertainment market, where its rivals include Netflix, Amazon Prime Video, Disney+ Hotstar, and billionaire Mukesh Ambani's JioCinema.
China's DiDi to become 2nd-largest shareholder of state-backed NavInfo unit.
Chinese ride-hailing giant DiDi Global will swap cash plus its smart driving and cockpit unit for 16.5% of AutoAi, a subsidiary of state-backed maps firm NavInfo, Reuters reported.
DiDi Smart Transportation Technology will make up 87% of AutoAi's plan to boost its registered capital by CNY27.45m ($3.85m), with NavInfo contributing the remainder, showed the filing with the Shenzhen Stock Exchange. DiDi will become the second-largest shareholder of AutoAi, a provider of intelligent cockpits-related software and hardware. NavInfo will be the biggest shareholder with 27%. The deal values the DiDi subsidiary at CNY450m ($63m).
Bikaji says "not for sale" amid investor interest in Indian snacks market. (FS)
Indian snacks maker Bikaji Foods is "not for sale" and is instead on the prowl itself, aiming to cash in on the growing appetite for savoury brands in the world's most populous country. The Indian savoury snacks sector has ballooned in recent years as consumers splurge on packaged foods, Reuters reported.
"Bikaji is not for sale. Whatever price someone offers, there are certain things that are not for sale," Manoj Verma, Bikaji CEO.
New credit manager CCS Partners raises $4bn for deals.
CCS Partners, a credit manager focused on structured and private asset-based deals, launched this month and raised $4bn in commitments, Bloomberg reported.
The partnership was founded and is jointly led by Randy Takian as president and Rob Kinderman as chief investment officer. The firm, formally launched on August 1, will invest in securities and loans, including risk transfer trades.
Seven & i dips on news of protective steps after buyout approach.
Seven & i shares dropped as much as 4% after the operator of 7-Eleven stores asked Japan’s government for a designation that would raise potential hurdles for a takeover, Bloomberg reported.
The Japanese retailer is seeking designation as a “core” company under the Foreign Exchange and Foreign Trade Act, which would require prior notification of any entity’s purchase of its shares above 10%. The stock has risen 19% since Alimentation Couche-Tard's buyout proposal was made public on August 19, rebounding from 30-month lows.
Foreign lenders lured by rare stake sales in India banks, but tighter rules weigh.
Talks to sell majority stakes in two Indian banks have attracted interest from foreign peers in Japan and the Middle East betting on a fast-growing economy, but tighter regulations and valuation concerns could curb their appetite.
The rare opportunity for foreign banks to take controlling stakes in a market dominated by state-owned banks comes as existing investors in Yes Bank and IDBI Bank look to divest their holdings, Reuters reported.
Citigroup sees more Asia dealmaking activity in coming quarters.
Dealmaking activity in Asia Pacific is set to grow over the coming quarters amid a boom in markets including India, Taiwan and Japan, and a strong pipeline of transactions from China, Bloomberg reported.
"We’ve been incredibly busy across Asia, particularly in Taiwan and India. The underlying economic activity and innovation in Asia is at an all-time high, and more exciting companies are being created than ever before," Jan Metzger, Citigroup Head of Investment Banking in Asia Pacific.
Hillhouse to buy Dulwich schools in Asia for around $600m. (FS)
Hillhouse Investment has struck a deal to acquire Dulwich College International schools in Asia from their owners in a deal that could fetch around $600m, DealStreetAsia reported.
The investment firm founded by China-born dealmaker Zhang Lei has emerged as the final bidder for the schools and reached an agreement with Education in Motion owning and operating Dulwich College International schools and high schools in China, South Korea, and Singapore.
HKEX taps Nomura banker to draw overseas IPOs as market set for rebound. (People)
Hong Kong Exchanges and Clearing has hired a veteran investment banker Johnson Chui as managing director and head of global issuer services to lead its efforts in attracting overseas companies to go public on the city’s bourse, DealStreetAsia reported.
Chui will take over the newly created role from September 2024 and lead the global issuer services teams based in Hong Kong, mainland China, London and Singapore.
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