J2 Acquisition, a special purpose acquisition vehicle, agreed to acquire APi Group, a market-leading provider of commercial life safety solutions and industrial specialty services, for $2.9bn. Current APi shareholders will receive approximately $2.05bn in cash and 28m ordinary shares in J2 and will own approximately 14.5% of the company at closing.
Sir Martin E. Franklin, co-founder of J2, commented, "We believe APi is an excellent foundation for J2's initial investment and is solidly in line with our disciplined investment criteria. The Company demonstrates similar qualities to Jarden, in that it unlocks uncommon value from niche businesses and delivers a strong track record of consistent organic performance complemented by disciplined M&A. This Transaction meets our long-established acquisition criteria with significant potential for short and long term value creation for our shareholders. We look forward to working with Russ Becker, the President and CEO of APi, whose leadership has positioned the Company for the strong growth opportunities ahead."
William Blair & Co, Faegre Baker Daniels and Fredrikson & Byron are advising APi Group. Citigroup, UBS and Greenberg Traurig are advising J2 Acquisition. UBS, Barclays, Citigroup and Bank of America Merrill Lynch are providing debt financing.
Air Canada challenged Onex Corp’s proposed $2.6bn acquisition of WestJet Airlines, on the grounds that the deal may not meet the country’s ownership rules. The deal was announced in May 2019.
“The uncertainty and flexibility of co-investor participation introduces significant risk that non-Canadian co-investors will have control-in-fact of WestJet following the transaction,” Air Canada said.
Bank of America Merrill Lynch, CIBC, Blake Cassels & Graydon and Norton Rose Fulbright are advising WestJet. Barclays, DLA Piper, Fried Frank, Goodmans and Longview Communications are advising Onex. Barclays, Morgan Stanley and RBC Capital Markets are providing debt financing.
The tender offer was extended to provide additional time for the US Federal Trade Commission and the UK Competition and Markets Authority to complete their previously disclosed reviews of Roche’s pending acquisition of Spark.
Closing of the tender offer is conditioned upon customary closing conditions, including the expiration or termination of the applicable waiting period.
Centerview Partners, Cowen & Company, and Goodwin Procter are advising Spark. Citigroup and Davis Polk & Wardwell are advising Roche.
Avista Capital Partners, a leading private equity firm focused on growth-oriented healthcare businesses, agreed to acquire GCM, a leading outsourced manufacturer of high-precision components and assemblies, from May River Capital. Financial terms were not disclosed.
Rob Girardi, a Partner at Avista, said: "GCM represents a highly attractive opportunity to acquire a leading outsourced component manufacturer serving the growing MedTech industry, with deep customer relationships. We are excited to partner with Seamus and the entire GCM team as the Company makes significant investments to further position itself for robust growth."
Ropes & Gray is advising Avista. William Blair and Paul Hastings are advising CGM.
AE Industrial Partners, a private equity firm specializing in Aerospace, Defense, Power Generation, and Specialty Industrial markets, acquires Triman Industries, a leading provider of distribution, supply chain and repair management solutions to the military aftermarket. Financial terms were not disclosed.
"The Triman team has built a great platform in our target markets and we look forward to partnering with the Company to build its brand and strengthen its already leading market position." Jon Nemo, AE Industrial Partner.
Blank Rome is advising Triman. Kirkland & Ellis is advising AE Industrial.
KKR-backed Spur Energy Partners, a natural gas and oil exploration firm, acquired Mexican assets of Concho Resources, a leading oil, natural gas, and shale explorer, for $925m.
In addition, the Concho’s board of directors authorized the initiation of a repurchase program of up to $1.5bn of the Concho’s shares of common stock. Following the sale, Concho will maintain a large presence and development program in southeastern New Mexico and will continue to support the local communities.
"Divesting our New Mexico Shelf position enables us to accelerate the value of these legacy assets while focusing our portfolio on opportunities with the highest potential for strong returns." Tim Leach, Concho CEO.
Kirkland & Ellis is advising KKR. RBC Capital Markets is advising Concho.
Vertex Pharmaceuticals, a leading biotechnology firm, agreed to acquire Semma Therapeutics, a privately held biotechnology company pioneering the use of stem cell-derived human islets as a potentially curative treatment for type 1 diabetes, for $950m in cash.
“Vertex has a proven track record of serial innovation and a deep commitment to developing transformative therapies for patients in need. Being a part of Vertex will allow the Semma team to rapidly and effectively advance our cell therapy and delivery approaches to patients who need them.” Bastiano Sanna, Semma President and CEO.
Skadden Arps Slate Meagher & Flom is advising Vertex.
Arsenal Capital Partners-backed CPS Performance Materials, a diversified specialty chemicals manufacturer of performance polymers, fine chemical and chemical illumination solutions, acquired GEO Specialty Chemicals, a diverse supplier of specialty chemicals and materials. The terms of the acquisition were not disclosed.
Jeremy Steinfink, President and CEO of CPS, said, “GEO significantly adds to the scale of CPS and positions us well in a number of growing end markets. Our strategy will focus on investing in GEO’s businesses which complement many of CPS’s existing positions in attractive end-markets such as CASE additives, specialty chemicals for pharma and medical uses, nutrition, personal care and a wide range of industrial applications. We see opportunities to expand across the portfolio where we can leverage our chemical expertise and continue to be a reliable commercial partner.”
CNH Industrial, a global leader in the capital goods sector, agreed to invest $250m in the Series D funding round of Nikola Corporation, which designs and manufactures hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen stations.
“The increasing focus on the recognition that there needs to be fundamental reductions in automotive emissions is driving our industry to rapidly seek advanced technological solutions. IVECO is now ideally placed to offer customers an even wider range of transport solutions including natural gas, electric and fuel-cell powered vehicles,” said Hubertus Mühlhäuser, Chief Executive Officer, CNH Industrial. “Nikola’s choice of IVECO as its strategic partner is a testament to our internationally recognized excellence in heavy-duty trucks and alternative powertrain technologies.”
Emerson, a global engineering and technology company, acquired Spence and Nicholson product lines from Circor International, a leading provider of flow-control solutions, for $84m. The Spence and Nicholson lines are established industry-leading products that include steam regulators, control valves, safety relief valves, temperature regulators, steam traps and other steam accessories and solutions.
“Spence and Nicholson’s capabilities will play an important role in bolstering our process offerings and expanding our opportunities with customers,” said Ram Krishnan, group president of Emerson’s Final Control business. “Enhancing these capabilities will strengthen our ability to serve customers, including automation customers, as well as hospitals, universities, commercial operations and the transportation industry, with a diverse portfolio of product offerings in the growing steam segment.”
Link Media Outdoor, a rental service for highway billboards, acquires outdoor advertising assets of Image Outdoor Advertising, an operator of billboard faces. Financial terms were not disclosed.
“The Image assets greatly enhance our West Virginia footprint, and allow Link to expand our service to advertisers and customers across the state. Mike Steadham did an excellent job building Image Outdoor, and Link is delighted to add these assets to our inventory.” Jim McLaughlin, Link President, and CEO.
Broadridge Financial Solutions, a public United States-based corporate services company, acquired Financial Database Services, a trusted provider of compensation management, compliance and advisor onboarding solutions for the wealth management industry. Financial terms were not disclosed.
“The acquisition of Financial Database Services is the latest example of Broadridge expanding our wealth capabilities and growing our client base,” said Michael Alexander, head of North American Wealth and Capital Markets Solutions for Broadridge. “Compensation management and compliance are key industry areas in need of transformation, and we look forward to extending our industry-leading capabilities.”
Global renewable energy developer, service provider and wholesaler BayWa acquired Toronto-based PowerHub, a software house. Financial terms were not disclosed.
"This is an important and strategic acquisition that recognizes the transformational opportunities digitalization represents for the rapidly evolving asset management services sector," commented Matthias Taft, Member of the Board responsible for the energy business, BayWa. "BayWa r.e. is committed to being at the forefront of this transformation, and I'm pleased to welcome the PowerHub team who bring with them world-class digital expertise and a market-leading software platform. This is just the latest stage in our digitalization investment program as our services business continues its global expansion."
MobilityWare, the original app developer for the game of Solitaire and creator of many other games, agreed to acquire Jump Ramp Games, the fastest growing mobile app publisher in the sweepstakes and rewards space. Financial terms were not disclosed.
“This is a strategic and complementary acquisition for our company,” said Dave Yonamine, CEO of MobilityWare. “The Jump Ramp team has not only created a successful suite of games and a sophisticated performance marketing platform, but they also bring extensive experience in digital sweepstakes and rewards. This acquisition offers a number of key synergies and will allow us to take the lead in a new and growing category of mobile gaming.”
Otimo Retail, a Montreal-based private investment firm focused on retail technology, acquired XCCommerce, a Canadian software developer. Financial terms were not disclosed.
"XCCommerce is the best-kept secret in retail systems," says Otimo partner Howard Stotland. "We were highly impressed by their client base and the quality of both their products and services. As evidenced by their stellar references, XCCommerce clearly delivers tangible business value to their customers. We are thrilled to add them to our portfolio."
Brightstar Capital Partners, a private investment firm that partners with closely-held, middle-market companies, agreed to acquire Capstone Nutrition, a leading developer and manufacturer of high-quality nutrition products. Financial terms were not disclosed.
"Capstone is a top-tier platform in a fragmented and rapidly growing segment of the health and wellness market," said Gary Hokkanen, Brightstar Partner and incoming Chairman of Capstone. "The Company has a 30-year history of making health-oriented products for a variety of customers in the United States and internationally, and we are eager to apply our operational experience and expertise to help the business thrive."
CGI, a Canadian global information technology consulting, systems integration, outsourcing, and solutions company, acquired Sunflower Systems, a leading provider of asset management software solutions and services. Financial terms were not disclosed.
"CGI's merger with Sunflower Systems is aligned to our Build and Buy strategy, providing opportunities to expand our offerings to the public and private sector, and offering IT modernization opportunities aligned with our strategy," said Tim Hurlebaus, President, CGI Federal. "Sunflower Systems' industry-leading expertise and IP meet a critical need in an evolving and complex asset management market. Sunflower Systems member's deep expertise in asset management complements CGI's expertise in financial and acquisition management. Together, we will continue to innovate and strengthen our collective leadership positions, and—through the delivery of surrounding services—will create greater value for our customers."
S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, acquired Canadian Enerdata, an independent provider of energy data and information in Canada. Financial terms were not disclosed.
Martin Fraenkel, president of S&P Global Platts, said: "Canadian Enerdata is a service of record for Canada's natural gas pricing and will extend S&P Global Platts' market insight in Canada, building on our strong benchmark position in the US market. Not only does Enerdata complement our existing pricing and analytics offerings, but as the exclusive publisher of Canadian benchmark ICE NGX indices, it increases the transparency and risk management tools available to our customers."
CRH Medical Corporation, a North American company focused on providing gastroenterologists, acquired the remaining ownership in Central Colorado Anesthesia Associates, a gastroenterology anesthesia practice located in Colorado. CRH initially acquired 51% of this practice in September of 2017. Financial terms were not disclosed.
Tushar Ramani, CEO of CRH, commented on the transaction, "We are pleased to announce our latest transaction in Colorado. CCAA represents one of our premier GI Anesthesia partnerships, and we are grateful for the opportunity to extend it further with this second transaction. With additions like this one, CRH remains well on its way toward its stated growth goals for 2019 and beyond."
Teledyne, a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems, acquired Alberta-based Micralyne, a privately-owned foundry providing Micro Electro Mechanical Systems or MEMS devices. Financial terms were not disclosed.
"Micralyne’s technology, processes, and strong product development pipeline ideally complement Teledyne’s state of the art 200mm manufacturing capability and expertise,” said Robert Mehrabian, Executive Chairman of Teledyne. “The acquisition of Micralyne solidifies Teledyne as the number one independent multi-product MEMS foundry in the world.”
American Tower stikes MLA deal with AT&T.
American Tower, owner and operator of wireless and broadcast communications infrastructure in several countries, inked a new multi-year master lease agreement with AT&T, and separately bolstered its US portfolio, closing an acquisition of 400 towers. Financial terms were not disclosed.
An AT&T spokesperson said that terms, while confidential, generally simplify the overall structure and administration of the lease management process, and promote a long-term strategic relationship between AT&T and American Tower.
Juul Labs raised $785m in debt and equity funding.
E-cigarette maker Juul Labs, which is facing regulatory scrutiny in the domestic US market, raised $785m in an equity and debt offering as it looks to expand globally. The company sold convertible debt in a bridge financing, which was less time consuming than an equity financing round.
Cresent Point to dispose of Uinta Basin assets for $684m to cut debt.
Crescent Point Energy, Canada's leading oil and gas company, agreed to exit the Uinta Basin in Utah and sell parts of its assets in southeast Saskatchewan for about $684m as it looks to cut debt under new management.
The oil and gas producer said it would sell more assets, including the remaining portion of its southeast Saskatchewan conventional assets.
The acceptance period for AMS' $4.8bn bid for Osram, a multinational lighting manufacturer headquartered in Munich, began on September 3 and will last until October 1. AMS' offer automatically extends the period for the offer made by Bain Capital and Carlyle Group, the private equity funds which were outbid by AMS in early August.
“Our offer and the combination of Osram and AMS represents a better option to all stakeholders than the private equity proposal,” AMS Chief Executive Alexander Everke said.
Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, and Gleiss Lutz are advising Osram. PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Schellenberg Wittmer, and Brunswick Group are advising AMS. Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco and FTI are advising Bain and Carlyle.
Eminence Capital, a New York-based hedge fund holding more than 4% stake in Just Eat opposes the $11bn merger between Just Eat and Takeaway.com stating that Takeaway.com's offer was “highly opportunistic” and a “gross undervaluation”.
“We believe that a valuation disparity of this degree is unprecedented in similar transactions over the past decade,” Ricky Sandler, Eminence CEO.
Goldman Sachs, UBS, Oakley Advisory, Linklaters and Brunswick Group are advising Just Eat. Bank of America Merrill Lynch, Lazard, De Brauw Blackstone Westbroek, NautaDutilh, and Slaughter & May are advising Takeaway.
The Competition Commission of India granted approval to the $4.1bn acquisition of Altran, the global leader in Engineering and R&D services, by Capgemini, a global leader in consulting, IT services and digital transformation. The deal was announced in June 2019.
"By joining forces, we are positioning ourselves as a clear strategic partner to assist our clients in taking full advantage of the revolution created by the developments of the cloud, Edge computing, IoT, artificial intelligence and 5G. I am delighted to welcome to Capgemini the talents and leaders of Altran, who share our beliefs and corporate culture.” Paul Hermelin, Capgemini CEO.
Ernst & Young and Cleary Gottlieb Steen & Hamilton are advising Capgemini. BNP Paribas is providing debt financing and is being advised by Hogan Lovells.
Kerridge Commercial Systems, which provides specialist software, offered to acquire MAM Software Group, a leading global provider of cloud-based business and on-premise management solutions for the auto parts, tire and vertical distribution industries, for $154m in cash. The purchase price represents a 14% premium over the closing price on August 30, 2019.
"This all-cash transaction provides MAM Software's stockholders with a premium over the pre-announcement market price of their shares, and we believe it will allow our team to increase our focus on long-term success that will benefit customers, employees and partners. Together with KCS, we can offer a broader portfolio of solutions to our customers globally," said Mike Jamieson, MAM Software CEO.
Mirus Capital Advisors and Sullivan & Worcester are advising MAM Software Group. Kirkland & Ellis is advising Kerridge Commercial Systems.
Greencore Group, a leading manufacturer of convenience foods in the UK, acquired Freshtime, a well-established supplier of food-to-go salads, chilled snacks and prepared produce in the UK, for £56m ($68m). The acquired business will extend Greencore's presence in food-to-go salads and chilled snacking and Freshtime's strong customer base is highly complementary to the group's existing portfolio.
Commenting on the transaction, Patrick Coveney, CEO of Greencore, said: "Freshtime is an excellent strategic fit for Greencore. It is a business and a customer set that we know very well and it provides us with an exciting opportunity to enhance our product offering, add further capacity to our manufacturing network, and help drive growth and value for shareholders. We look forward very much to welcoming the Freshtime team to Greencore."
Drury Porter Novelli and Powerscourt advised Greencore Group.
Camelot Capital Partners, an investment management company, offered to acquire Synnovia, which manufactures high volume specialized components & consumables for niche applications and highly specialized designs, at a £49m ($59m) valuation. As at the date of the announcement, Barker Partnership (via Camelot, the 100% owner of Bidco) holds approximately 29.9% of Synnovia's existing issued shares.
Commenting on the Offer, Keith Butler Wheelhouse, Non-Executive Director of Synnovia, said: "The Independent Synnovia Directors believe that the Synnovia Group has made sound investments in product development, geographic reach, production capacity and management capability in order to deliver long-term profitable growth. However, we recognize that this Business Growth strategy requires considerable patience and a long term orientation which many investors find challenging, particularly in the current economic environment. Therefore, we believe that the value presented by the Offer is an attractive opportunity that may not be otherwise achievable in the near term."
Cenkos Securities is advising Synnovia. Numis Securities is advising Camelot.
Burton’s Biscuit Co, a British biscuit manufacturer, acquired Pateron Arran, one of Scotland’s leading independent food companies. Financial terms were not disclosed.
Nick Field, Burton’s Biscuit Co.’s CEO, said: “Paterson Arran is a superb business with a first-rate product portfolio and baking expertise which combines time-honored methods with the very latest technology, to make outstanding products."
National General Holdings, an insurance company, sold Euro Accident Sweden, which provides health insurance, predominantly personal medical insurance, to Impilo, a Swedish investment company focused on Nordic healthcare investments, for $138m.
National General Chief Executive Officer Barry Karfunkel stated: “The sale of Euro Accident Sweden will allow us to continue to focus on our growing domestic A&H business. This transaction will also allow us to simplify our operations, legal and financial structure, and allow us to continue to allocate resources to domestic initiatives and opportunities. I would like to thank the Euro Accident team for what they have accomplished over the past six years turning an agency into a full-fledged Swedish insurance company.”
Chr. Augustinus Fabrikker, an investment company with extensive interests in Danish business, invested €48m ($53m) in Abacus Medicine, a Danish pharmaceutical company.
Flemming Wagner, CEO and founder of Abacus Medicine, says: “Abacus Medicine has delivered high growth year after year, and we have ambitions for even more. That is why we have been looking for the right, long-term partner to provide us with additional capital. We have found that now, and I look forward to the cooperation. Chr. Augustinus Fabrikker represents an invaluable experience that will strengthen us in our efforts to develop Abacus Medicine into a global company. ”
RavenQuest BioMed, one of Canada’s most innovative cannabis producers, and Cannabis Biocare, a cannabis company, formed a joint venture. The Joint Venture plans to initially build two cannabis cultivation facilities in Portugal, with an option for further expansion across Europe and beyond. Financial terms were not disclosed.
Commenting on the deal, RavenQuest CEO, George Robinson, stated, “We are very pleased to enter into this Joint Venture. Europe is a huge marketplace with over 700m residents and a progressive attitude toward cannabis legalization. Many European nations already allow for medical cannabis consumption, with many more moving toward adult-use legalization. Portugal is one of the most attractive of these nations, and an excellent fit to establish RavenQuest’s first European facilities.
Softbank-backed hospitality and hotel chain company Oyo acquired Danamica, a specialist in automated dynamic pricing and business intelligence for vacation rental agencies. Financial terms were not disclosed.
The purchase of Danamica will be leveraged across its full range of vacation rental brands, i.e. Oyo Homes, Belvilla and DanCenter.
“We are delighted to announce our acquisition of Danamica, a Europe based, machine learning and business intelligence company specialized in dynamic pricing, that will help us be more accurate with pricing, leading to higher efficiencies and yield for our real estate owners and value for money for our millions of global guests, both everyday travelers and city dwellers, that choose an OYO Vacation Homes as their abode." Maninder Gulati, Oyo Chief Strategy Officer.
Bowmark Capital reinvested in Aston Lark, the leading independent insurance broker, which has been recently acquired by Goldman Sachs’ Merchant Banking Division. Financial terms were not disclosed.
David Torbet, Bowmark partner, said: “Over the past four years, we have worked closely with the Aston Lark team to create a highly scalable business with the right people, systems and processes to consolidate the fragmented insurance broking market. The combination of the company’s strong track record of growth and an exceptional acquisition pipeline gives us great confidence in Aston Lark’s future. We look forward to working with Goldman Sachs and the management team to support the next phase of growth.”
Argos Wityu, an European independent private equity group, sold Salvia Group, a French software developer, to Total Specific Solutions, a software company in Nieuwegein, Netherlands. Financial terms were not disclosed.
Françoise Farag, President of Salvia Group, said “Argos Wityu has been an active partner at all the steps of our common path, starting with our accession to independence from the Sage Group, and has demonstrated a real knowledge of the challenges and specific nature of our business. I have been very pleased with this partnership and the confidence they have shown in us for more than six years. This new step with Total Specific Solutions will allow us to contribute to TSS’ French expansion, especially in the Public sector.”
Voyant, a leading UCaaS and CPaaS service provider to businesses, agreed to acquire Czechia-based Acrobits, the market leader of mobile communication apps. Financial terms were not disclosed.
"We are extremely pleased to welcome the highly skilled Acrobits' team to Voyant. Our combined team will more effectively meet our evolving business and service provider customer needs through tight integration of the mobile app experience with Voyant's cloud-based UCaaS service offering and our tier 1 carrier voice network," said Justin Nelson, Voyant's president.
Berlin Packaging, the largest full-service supplier of glass, plastic, and metal containers and closures, acquired Netherlands-based Vincap, an important packaging supplier. Financial terms were not disclosed.
"As Berlin Packaging continues to acquire companies that share our commitment to quality, service, and bottom-line growth for our customers, we further separate ourselves from the competition with a tremendous global footprint, an unparalleled product and service offering, and a long history of double-digit organic growth," said Andrew Berlin, Chairman and CEO of Berlin Packaging.
Main Capital sold its majority stake in Ymor, an international, independent ‘technology-enabled’ managed service provider, to Sentia Group, a provider of high-end Cloud solutions. Financial terms were not disclosed.
CCO Ymor Iman Alipour: “We are very enthusiastic about this step with Sentia. Together with Main, we have made this decision carefully and well-considered. We are confident that with this strategic partnership, we are able to realize our extended growth ambitions and, at the same time, provide excellent performance monitoring to our clients”.
SOPREMA, a worldwide specialist in waterproofing and thermal insulation for buildings and civil engineering, acquired a majority stake in Termo Organika, a manufacturer of expanded polystyrene boards. Financial terms were not disclosed.
This acquisition further strengthens SOPREMA’s ongoing Strategic Initiative to develop its positions in Central and Eastern Europe, and more particularly in Poland, where SOPREMA has already made strategic investments: in 2010, SOPREMA built a brand-new, state-of-the-art factory dedicated to waterproofing systems and bitumen roll production in Błonie, near Warsaw.
EG, a software developing firm, acquires Sonlinc, a provider of trading and billing software for utilities. Financial terms were not disclosed.
"Sonlinc has in-depth knowledge of the utility market and strong customer relationships. The company is, therefore, a perfect match with our existing activities in this market. Sonlinc is exactly the type of company that has a strategic fit with EG, with our focus on industry-specific software and growth." Mikkel Bardram, EG CEO.
Engie, a French utilities firm, acquires the African utility assets of Mobisol, a leading installer, and developer of solar home systems. Financial terms were not disclosed.
With the acquisition of Mobisol, Engie will be offering solar home systems in 3 additional countries, complementing the six countries where it is already present with its solar home system company Fenix International.
Rubix Italy, a European industrial company, acquired Fluidmec, a specialist distributor of industrial products covering pneumatics, hydraulics, automation, gaskets and lubrication. Financial terms were not disclosed.
Marco Minetti, CEO of Rubix Italy, said: “This acquisition enables us to increase our portfolio of products and services while giving Fluidmec access to a broader customer base, including multi-site key account customers.”
Intracto, a provider of digital communication services acquires Frontmen, a leading front end, and mobile application developer. Financial terms were not disclosed.
The acquisition of Frontmen fits perfectly with Intracto's growth strategy: whether the issue is in strategy, technology, marketing and/or creation, Intracto wants to play a leading role in each of those processes and preferably a combination of them.
Lloyds Banking Group acquired Tesco Bank's mortgage portfolio for $4.5bn.
Lloyds Banking Group, a British retail and commercial bank with branches across England and Wales, acquired Tesco Bank's UK residential mortgage portfolio for $4.5bn, representing a 2.5% premium on the gross book value and will be funded using existing internal resources.
“The sale is in line with Tesco Bank’s strategy of focusing on a reduced number of products and services that serve the broad range of Tesco customers, and will reduce operating and funding costs,” the supermarket said in a statement on Tuesday.
Citigroup advised Tesco.
Eskom Holdings looking to spin-off its transmission unit.
According to Bloomberg South Africa, under pressure to save loss-making power utility Eskom Holdings, should quicken the process of spinning off one of its units as a first step toward overhauling its operating structure.
Eskom, which supplies about 95% of South Africa’s electricity, is buckling under $29bn of debt and relies on government bailouts to remain solvent. President Cyril Ramaphosa said in February that the utility would be split into transmission, generation and distribution businesses under a state holding company, which would make them easier to manage, but the process stalled while details were ironed out.
CNH Industrial plans to list its truck and bus unit.
CNH Industrial, one of the world's largest capital goods companies, is looking to split its operations in two and list its truck, bus and engine division in a bid to boost the value of its assets and create more focused businesses. CNH Industrial aims to complete the revamp by early 2021, creating a company to run its agriculture and construction operations and another publicly listed unit to run the truck, bus and engine assets.
The plan, dubbed ‘Transform 2 Win’ will reduce operating costs and increase the group’s asset base “through targeted restructuring actions,” CNH Industrial said in a statement.
Kyocera, a Japanese multinational ceramics and electronics manufacturer, acquired a 51% stake in Ube Electronics, a wholly-owned subsidiary of Ube Industries, a Japanese chemical company. Financial terms were not disclosed.
By combining the filter design technology of Ube Electronics with Kyocera's global ceramic components manufacturing expertise and sales network, the joint venture will seek to meet the rising demand for these key components enabling the expansion of 5G technology.
Temasek put off the sale of A.S. Watson Group.
Temasek suspended its $3bn sale of A.S. Watson Group, the world's largest health and beauty retail group, with over 14k stores in 24 markets worldwide, due to the pressures of Brexit and the anti-government protests rocking Hong Kong. Temasek was pondering selling a 10% of its 25% stake in the company.
GFG Alliance delayed steel unit's $675m Australian IPO.
GFG Alliance, an international group of businesses associated with businessman Sanjeev Gupta and the British Gupta family, delayed a planned $675m listing of parts of its Australian Liberty Steel unit until at least next year as a result of market volatility. Work had been underway to float parts of the steel business within the next two months.
GFG is now not expected to test investor appetite until at least the second quarter of 2020.
Xiaomi to buy back $1.5bn worth of stock.
Xiaomi, a Chinese consumer electronics company, announced a $1.5bn share buyback plan. Xiaomi shares responded to news of the buyback by climbing nearly 7%.
“The board believes that a share repurchase in the present conditions will demonstrate the company’s confidence in its own business outlook and prospects,” Xiaomi said in a stock exchange filing.
Synergy open to pick majority in Jet Airways should lenders agree to convert debt into equity.
DealStreetAsia reported that Synergy Group, one of the three potential investors for Jet Airways, an Indian international airline based in Mumbai, is willing to take a majority stake in the grounded airline if lenders agree to take a deep haircut and convert their debt into equity.
Synergy runs several airlines in South America, including Colombian carrier Avianca Holdings, the region’s second-largest airline. A plan to take a majority stake may, however, hit a regulatory hurdle, as foreign airlines are allowed to buy a maximum of 49% in a local airline.
Xiange He closed its second fund at $425m. (FS)
Chinese venture capital firm Xiang He Capital closed its second $‐denominated fund at the increased hard cap of $425m. The oversubscribed fundraising exceeded Xiang He Capital’s initial target of $350m, with support from both existing and new investors that include global consultants, university endowments, foundations, family offices, pensions and fund‐of‐funds from the US, Europe, the Middle East, and Asia‐Pacific.
“We have been able to source some interesting early investments in the fund and believe the coming cycle offers exciting opportunities for China’s TMT market and a more normalized valuation environment for this vintage,” said Hesong Tang, founding partner, Xiang He Capital.
India-based Druwa ponders an IPO. (FS)
Indian software-as-a-service startup Druva, which secured the unicorn status after fundraising in June this year, is now gearing up for an IPO in the US. In June, Druva raised $130m in a new funding round led by Viking Global Investors at a valuation of $1bn. Its total funding stands at $328m.
Connect the World of Dealmakers
Expand your network of fellow Dealmakers by inviting your colleagues and coworkers.