AMERICAS
DraftKings, a digital sports entertainment and gaming company, agreed to merge with SBTech, an international provider of sports betting and gaming technologies, and Diamond Eagle Acquisition, a public by an entity founded by Hollywood executives Jeff Sagansky and Harry Sloan, at a $3.3bn valuation.
"The combination of DraftKings’ leading and trusted brand, deep focus on customer experience and data science expertise and SBTech’s highly innovative and proven technology platform creates a vertically-integrated powerhouse. I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally," Jason Robins, DraftKings Co-Founder and CEO.
DraftKings is advised by The Raine Group and Sullivan & Cromwell. Diamond Eagle Acquisition is advised by Credit Suisse, Goldman Sachs, Winston & Strawn and Priority PR. SBTech is advised by Stifel, Herzog Fox & Neeman and Skadden Arps Slate Meagher & Flom.
Brookfield Infrastructure agreed to acquire Cincinnati Bell, a regional telecommunications service provider based in Cincinnati, for $2.6bn. The transaction price of $10.50 per share of Cincinnati Bell common stock represents a 36% premium to the closing per share price of $7.72 on December 20, 2019.
"After thoroughly reviewing a range of strategic alternatives and possible business opportunities for maximizing value, the Board determined this transaction was in the best interest of the company, its shareholders, and its customers. The transaction provides clear and immediate value at an attractive premium and represents an exciting new chapter for Cincinnati Bell," Lynn A. Wentworth, Cincinnati Bell Chairman of the Board of Directors.
Cincinnati Bell is advised by Moelis & Co, Morgan Stanley, BosseLaw, Cravath Swaine & Moore and Morgan Lewis & Bockius. Brookfield is advised by White & Case. Debt financing is provided by BMO Capital Markets, Bank of America Merrill Lynch, Citigroup, TD Securities and Wells Fargo Securities.
The Federal Trade Commission approved the $2bn acquisition of Reinhart Foodservice, a beverages provider, by Performance Food Group, a food producer. PFG now expects to close the transaction by December 30, 2019, subject to the satisfaction or waiver of the remaining closing conditions.
"We are pleased to receive FTC approval to move forward with our acquisition of Reinhart Foodservice. We expect this transaction to enhance our ability to help our customers thrive and believe the attractive financial characteristics will create long-term shareholder value," George Holm, PFG Chairman, President & CEO.
Reinhart is advised by Arnold & Porter Kaye Scholer, Neal Gerber & Eisenberg and Winston & Strawn. PFG is advised by Credit Suisse, Skadden Arps Slate Meagher & Flom and Alston & Bird. Debt financing is provided by Credit Suisse and Wells Fargo Securities.
Genworth Financial and China Oceanwide announced that they have agreed to a 13th waiver and agreement of each party's right to terminate the previously announced merger agreement. The 13th waiver and agreement extend the previous deadline of December 31, 2019 to no later than March 31, 2020.
"The extension allows significant additional time for regulators to complete their review of updated information including the recent sale of our Canadian mortgage insurance business, and for the NYDFS to review the results of our New York subsidiary's annual assumption and margin reviews, which they have linked to their re-approval of the transaction. We continue to believe the transaction with Oceanwide provides the best, most certain value for Genworth stockholders," Tom McInerney, Genworth Financial President and CEO.
Genworth is advised by Goldman Sachs, Lazard, Richards Layton and Finger, Weil Gotshal and Manges and Willkie Farr & Gallagher. China Oceanwide is advised by Willis Capital Markets & Advisory, Citigroup, Potter Anderson & Corroon and Sullivan & Cromwell.
IHS Towers, one of the largest independent owners, operators and developers of shared telecommunications infrastructure, agreed to acquire Cell Site Solutions, a telecommunications equipment supplier, from Cerberus and Goldman Sachs. Financial terms were not disclosed.
"I am delighted to announce that through the acquisition of CSS, IHS is expanding its footprint into Latin America. In particular, and as the largest market within this region, Brazil offers an exciting platform enabling us to go deeper into this new geography. Brazil's topography and compact urban areas, coupled with recent economic upturn, provide favorable macroeconomic factors for 4G and 5G deployment. As networks prepare for 5G transition, IHS will be well placed to deliver on these demands following our exceptional 18-year track record globally coupled with the excellent track-record of the CSS management team over the last six years. We are also very excited about providing our vast range of offerings to the markets in Peru and Colombia," Sam Darwish, IHS Chairman and Chief Executive Officer.
Cell Site Solutions is advised by Banco Itau, Goldman Sachs, Gibson Dunn & Crutcher and Mattos Filho. IHS is advised by Citigroup, Allen & Overy and Souza, Mello e Torres Advogados.
Advent-backed Culligan, the innovative brand in consumer-focused and sustainable water solutions and services, agreed to acquire AquaVenture, a multinational developer and provider of sustainable Water-as-a-Service® solutions, for $1.1bn.
"We are pleased to reach this agreement to join forces with Culligan and its leading presence in the global water industry, and believe it delivers compelling value to all AquaVenture stakeholders. Our leadership team is proud of the development and success of AquaVenture, and excited for what our employees can accomplish in partnership with Culligan in the future," Anthony Ibargüen, AquaVenture President and CEO.
AquaVenture is advised by Citigroup, UBS and Goodwin Procter. Advent is advised by Finsbury. Culligan is advised by Weil Gotshal and Manges.
WaterBridge, which develops, owns and operates permanent, integrated water infrastructure networks, raised $345m of equity capital through the issuance of $195m of common equity to funds affiliated with Five Point Energy, an affiliate of GIC and the WaterBridge management, as well as $150m of preferred equity to Magnetar Capital, a alternative asset manager.
“Our ability to raise attractive capital in a challenging market is a clear reflection of our team’s success in building the premier produced water handling network in one of the most economic and de-risked basins available to producers. The capacity and redundancy offered by our system will continue to be instrumental in supporting current and future customers’ growing development programs in the Southern Delaware Basin,” David Capobianco, Five Point Energy CEO and Managing Partner and WaterBridge Chairman.
WaterBridge was advised by White & Case and Winston & Strawn. Magnetar Capital was advised by Kirkland & Ellis. Five Point Energy was advised White & Case and Kekst CNC.
The board of Instructure, an educational technology company based in Salt Lake City, determined a deal with private equity firm Thoma Bravo was in the best interests of shareholders and urged them to vote in favor of the agreement.
This follows criticisms from Instructure’s top shareholders Praesidium Investment Management and Rivulet Capital who said the company failed to conduct an exhaustive search and settled on a $47.60 per share deal with Thoma Bravo too quickly.
Instructure is advised by JP Morgan and Cooley. Thoma Bravo is advised by Kirkland & Ellis.
Asset management company GCM Grosvenor agreed to acquire a 49.9% stake in Long Ridge Terminal, an industrial port and rail terminal located in Hannibal, Ohio, from Fortress Transportation and Infrastructure, which owns and acquires high-quality infrastructure and equipment, for $150m.
"We are excited to invest in Long Ridge Energy Terminal and have the opportunity to partner with FTAI on what will be one of the most efficient natural gas-powered plants in North America. We believe Long Ridge will serve as a reliable low-cost energy provider to the region and, equally important, as a hub for new jobs and economic development," Michael Sacks, GCM Grosvenor Chairman and CEO.
Fortress Transportation and Infrastructure is advised by Citigroup. GCM Grosvenor is advised by TD Securities and Baker Botts.
American Vanguard, a diversified specialty and agricultural products company that develops and markets products for crop protection and management, agreed to acquire four herbicide brands from Corteva, an agricultural chemical and seed company. Financial terms were not disclosed.
The brands involved are Classic®, First Rate®, Hornet® and Python®. This transaction includes acquisition of end-use registrations, commercial sales and marketing information and finished goods inventory.
“Acquisition of these four brands from Corteva Agriscience provides our crop protection business with a strengthened portfolio of valuable herbicides that play an important role in weed control and resistance management. These brands broaden our US herbicide offering in soybeans, corn, peanuts and a number of other niche crop markets,” Eric Wintemute, American Vanguard Chairman and CEO.
American Vanguard is advised by The Equity Group.
CI Financial, an independent Canadian company offering global asset management and wealth management advisory services, agreed to acquire a majority stake in One Capital, an investment advisor managing $1.6bn in client assets. The transaction is expected to close in the first quarter of 2020. Financial terms were not disclosed.
"CI Financial is an ideal partner as we embark on the next stage of our firm's development. CI provides financial strength, capabilities in operations and technology, and the experience and expertise developed in operating one of Canada's largest wealth management firms. Most importantly, CI is fully committed to this market and to supporting our growth aspirations, which are based on a deep understanding of our clients and a marriage of investment management with advanced wealth planning," Patrick Bowen, One Capital President.
Apache, a US-based oil and gas exploration and production company, and its French rival Total agreed to form a joint venture to explore and develop Block 58 offshore Suriname.
Under the terms of the agreement, Apache and Total will each hold a 50% working interest in Block 58, which comprises approximately 1.4m acres. Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.
“We are very pleased to team up with Apache and Staatsolie, and to become operator of this promising license where we will bring our deepwater expertise. It is indeed a unique exploration opportunity in a prolific basin," Patrick Pouyanne, Total CEO.
Adam Street Partners raises $740m for 2019 global fund. (FS)
Adam Street Partners, a Chicago-based investment management firm, raised about $740m in capital commitments for its global fund. The Adams Street 2019 Partnership Fund Program will offer exposure to all of the firm's investment strategies, including primaries, secondaries, co-investments, growth equity, and private credit, Deal Street Asia reported.
"We're pleased to see ongoing demand from current clients and new investors in our global fund program, which continues to incorporate cutting-edge research and risk management in the development of comprehensive, globally diversified private equity portfolios," Miguel Gonzalo, Adam Street Partner and Head of Investment Strategy and Risk Management.
Motive Partners raised a $473m private equity fund. (FS)
Motive Partners, an investment firm focused on backing companies building technology for financial services, raised a $473m private equity fund to focus on growth and buyout opportunities in more traditional financial services companies. The fund received commitments from public pension plans, sovereign wealth funds, alternative asset managers, family offices, endowments, and foundations in North America, Europe, the Middle East, Australia, and Asia.
"In a relatively short period of time, Motive has made great strides. And I look forward to working with the talented team on the future phases of the firm's development," Blythe Masters, Motive Partners Industry Partner.
EMEA
The Carlyle Group offered to acquire Harwood Wealth Management Group, a financial planning and discretionary wealth management firm, for $118m.
"Looking ahead, the Board believes that Carlyle and Hurst Point will be excellent partners to Harwood, providing the capital backing, strategic support and additional resources and investment needed for the business to continue to grow. We therefore believe the acquisition is in the best interests of all our stakeholders. We are committed to maintaining the very highest quality of service to our clients and our partners going forward. The Harwood Board therefore unanimously recommends that shareholders vote in favour of the resolutions relating to the acquisition," Peter Mann, Harwood Non-Executive Chairman.
Harwood is advised by N+1 Singer, Evercore, Blake Morgan and Alma PR. The Carlyle Group is advised by RBC Capital Markets and Linklaters.
Twelve Seas Investment Company, a company formed for the purpose of entering into a business combination, and Brooge Petroleum and Gas Investment Company, an oil & natural gas company in the United Arab Emirates, completed their $1bn merger.
"We are excited to enter into this agreement with Twelve Seas as it provides us with the ability to enter the US capital markets and provide this unique opportunity to investors globally. The US capital markets are the largest in the world and include sophisticated investors with large investments in similar public companies within our industry. We look forward to the opportunity to demonstrate our industry-leading operations in the emerging global hub for oil at the Port of Fujairah in the UAE. This transaction enables BPGIC to continue its exciting growth and accelerate future opportunities," Nicolaas Paardenkooper, BPGIC CEO.
Brooge Petroleum was advised by Hogan Lovells and K&L Gates. Twelve Seas was advised by EarlyBirdCapital, Ellenoff Grossman & Schole and Maples & Calder.
Allvotec, a provider of end-to-end technology and communications services and solutions for major services businesses, completed the acquisition of ISG Technology, a provider of services for the design, deployment and management of enterprise network connectivity, from WestBridge, an independent private equity house. Financial terms were not disclosed.
“This acquisition is a major milestone in ISG’s 35-year trading history, becoming part of Allvotec is a fantastic opportunity to deliver our services to a much broader set of partners and provides an exciting opportunity for our employees and existing customers to be part of a larger, dynamic and innovative organisation," Dave Gardner, ISG CEO.
WestBridge was advised by Clearwater and Capital Law. Allvotec was advised by Pricewaterhousecoopers and DWF.
LDC, a mid-market private equity firm, completed the acquisition of a minority stake in Global Autocare, an independent vehicle leasing and rental company. Financial terms were not disclosed.
LDC’s support and investment will help the business to accelerate its national growth plans, building on its strong relationships with some of the world’s leading automotive manufacturers.
“Global Autocare is a fantastic example of a dynamic, homegrown business. It has used an innovative approach and an exceptional reputation for client service to become one of the region’s most exciting success stories,” Dale Alderson, LDC Director.
LDC was advised by Grant Thornton, Addleshaw Goddard and KPMG. Global Autocare was advised by Squire Patton Boggs.
Hg Capital agreed to invest in Personal & Informatik, a provider of cloud-based HR software headquartered in Germany, by acquiring the holding from funds advised by Permira at a €2bn ($2.2bn) valuation.
"P&I is an exceptional business and we've been in the privileged position of knowing the team there for almost two decades. Since our first investment in P&I in 2013 we remain impressed by the quality and long-term vision of the business and its management team. We're excited to partner with P&I and its team again and support them in the next phase of growth," Justin von Simson, Hg Managing Partner.
Hg is advised by Brunswick Group.
DryLog, a subsidiary of Greek shipping company Ceres, agreed to acquire a 50% stake in Global Chartering, the wholly owned shipping business of ArcelorMittal, for $530m.
"The joint venture will benefit from the combination of the two businesses respective knowledge and expertise, and ArcelorMittal’s extensive annual cargo commitments, a portion of which will be handled exclusively by the JV. It will also benefit from DryLog’s ability to optimize transport solutions and its technical and commercial vessel management expertise. These factors will enable the joint venture to grow its operations and become a significant player in the international shipping industry," ArcelorMittal.
Towa Pharmaceutical, a company specializing in generic drugs and based in Kadoma, Osaka, agreed to acquire the generics unit of Esteve, a Spanish pharmaceutical company, for $354m.
"I am happy that we can now build a foundation for full-scale overseas expansion by obtaining the sales networks that Pensa owns in Europe and the US, its know-how and knowledge on EMA/FDA regulations and commercial practices in each country, and its production facility in Europe. Our goal is to build a solid global structure by respecting and integrating one another's human resources, culture, and technologies. We will work unitedly as a group to provide Towa's value-added products to patients all over the world," Itsuro Yoshida, Towa President.
Algeco, a modular space leasing business in Europe and Asia Pacific, agreed to acquire Malthus Uniteam, a provider of relocatable modular buildings in the Norwegian market. Financial terms were not disclosed.
"This acquisition provides Algeco with a leading position in the attractive Nordic modular space market and further strengthens our presence across Europe. Malthus Uniteam's broad product range and strong customer base will ensure that Algeco is well placed to benefit from the continued growth of the Nordic markets. There will also be a good opportunity for Malthus Uniteam's customers to benefit from Algeco's industry-leading range of value-added products and services," Mike Smith, Algeco Chairman.
Voith Group, a global technology company, agreed to acquire ELIN Motoren, a manufacturer of electric motors and generators, and Toscotec, a manufacturer of tissue paper machines. Financial terms were not disclosed.
"The portfolio of ELIN Motoren is an outstanding addition to the existing industrial-drive solutions. It strengthens the position of Voith as a technology-independent supplier of electrical and mechanical drive systems," Voith.
AngloGold Ashanti and IAMGOLD in talks to sell stake in Mali mine.
Reuters reported that mining company AngloGold Ashanti and its joint venture partner IAMGOLD are planning to sell their stake in the Sadiola project in Mali for $105m, as the South African company looks to streamline its portfolio. AngloGold and IAMGOLD, which each hold 41% in the asset with the remaining 18% held by Mali’s government, plan to sell their stake in the operation, whose principal asset is the Sadiola Mine, to Allied Gold.
“This transaction is in line with our disciplined capital allocation strategy as we move to streamline our portfolio and intensify our focus on assets that have potential to build critical mass in the long term,” Kelvin Dushnisky, AngloGold Ashanti CEO.
Emaar to sell view from Burj Khalifa.
Emaar Properties, a real estate development company located in the United Arab Emirates, is selling the observation decks of the world’s tallest skyscraper Burj Khalifa, Reuters reported, potentially raising $1bn for Dubai’s biggest developer amid a real estate downturn.
Standard Chartered is advising on the sale.
TCV in talks to back Revolut. (FS)
Technology Crossover Ventures, a growth equity investor focused on investing in premier later-stage technology companies, is in advanced talks to commit a substantial proportion of a $500m equity-raising being assembled by Revolut.
The fundraising plan comes within months of Revolut unveiling a global deal with Visa, the payments giant, that will take the company into 24 new countries.
The Carlyle Group in talks to divest Eggplant Software. (FS)
Carlyle is in advanced talks to dispose of Eggplant Software, a software testing and monitoring company. The sale is expected to be kicked off in the first quarter of 2020.
Carlyle is advised by Evercore.
Creditors take over Bourbon.
Creditor banks are taking over Bourbon, a French marine services group which has been in a court restructuring process, after its business was hit by volatile energy markets.
Bourbon said the Marseille commercial court had ruled that Bourbon’s assets would be transferred to Société Phocéenne de Participations. The operation will lead to the liquidation of the company and a total loss for its shareholders and bondholders.
APAC
Japanese hotel chain Unizo Holdings confirmed that it received a friendly buyout offer from Lone Star Funds, a US-based investment fund. This deal could end the five-month takeover battle involving Blackstone Group, Fortress Investment Group, and activist investor Elliott Management.
Lone Star will launch a tender offer to buy Unizo for JPY175.4bn ($1.6bn), topping the bid Blackstone was planning to offer. The scheme would allow a group of Unizo employees to own a 73% stake in Unizo's common shares, while Lone Star would take a 27% stake.
Unizo is advised by Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Financial Group, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young. Fortress is advised by Kekst CNC.
Ventia, a telecommunications, infrastructure and utilities services company, agreed to acquire Broadspectrum, which provides operations and maintenance, asset management, project and capital management outsourcing and infrastructure development services, from Ferrovial, a Spanish multinational company, for $362m.
"Ventia and Broadspectrum are complementary infrastructure services businesses offering a variety of operational and maintenance services, to a wide range of private sector and government clients and their customers," David Moffatt, Ventia’s Executive Chairman.
GIC agreed to acquire a stake in Prestige Estates Projects, an Indian real estate developer, for $61m.
"Thehe Board has approved to create, offer, issue and allot on preferential basis, 13.4m equity shares of face value $0.14 at a price not less than floor price of $4.5, determined in accordance with Chapter V of the SHBI ICDR Regulations to Gamnat," Prestige Estates.
JD.Com's logistics approached banks for a potential $8-10bn IPO.
The logistics unit of Chinese e-commerce firm JD.Com held early discussions with banks regarding a potential overseas IPO that could raise $8bn to $10bn. JD Logistics is targeting a valuation of at least $30bn.
The unit is expected to select banks for the IPO in the second quarter of 2020. The listing could happen in Hong Kong or New York, although a timetable and venue have not been determined.
SoftBank's talks to secure $3b form Japanese banks stalled.
SoftBank Group's talks to secure $3bn from Japan's biggest banks have stalled as the lenders have hit internal lending limits to the firm. Mizuho Financial Group, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Financial Group are seeking ways to provide the financing while offsetting exposure, Deal Street Asia reported.
The talks illustrate the difficulty SoftBank poses for Japan's banks. Founder Masayoshi Son's tech juggernaut has long been a lucrative source of corporate lending in the world's third-largest economy, where banks typically have to lend at ultra-low interest rates given years of deflation.
Warburg-backed ESR considers REIT IPO of Korean assets. (FS)
Warburg-backed ESR Cayman, a logistics real estate developer, is considering an IPO of a REIT consisting of its South Korean assets. The listing could raise at least $500m.
ESR Cayman recently invited banks to pitch for the potential share sale in South Korea. The compositions of the REIT and other details of the offering have not been finalized.
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