AMERICAS
Penn National Gaming, an American operator of casinos and racetracks, agreed to acquire Score Media and Gaming, a digital media company, for $2bn. The transaction is expected to close in the first quarter of 2022.
"We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America. theScore's unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content," Jay Snowden, Penn National President and CEO.
Score Media and Gaming is advised by Canaccord Genuity, Greenhill & Co, Morgan Stanley, McCarthy Tetrault, Osler Hoskin & Harcourt, Paul Weiss Rifkind Wharton & Garrison and JCIR. Penn National is advised by Code Advisors, Goldman Sachs, Blake Cassels & Graydon, Wachtell Lipton Rosen & Katz and Joele Frank.
Private equity firms TowerBrook Capital Partners and Further Global Capital Management completed the acquisition of ProSight Global, an insurance brokerage firm, for $586m.
"This transaction and the new partnership with TowerBrook and Further Global will expand ProSight's underwriting capabilities and fund investments in talent and technology that will improve our offerings to distribution partners and customers. I'm very proud of what we created, thank them for their dedication, and very much look forward to working closely with Jonathan as we write ProSight's next chapter as a private company," Larry Hannon, ProSight President and CEO.
ProSight was advised by Barclays, Goldman Sachs, Guy Carpenter, Ropes & Gray and Sullivan & Cromwell. Financial advisors were advised by Simpson Thacher & Bartlett. TowerBrook was advised by Piper Sandler, Sidley Austin and Brunswick Group. Debt financing was provided by Truist Bank. Further Global was advised by Kirkland & Ellis.
Meta Materials, a smart materials and photonics company, agreed to acquire Nanotech, a manufacturer and distributor of nano-optic products that have brand protection and enhancement applications, for $91m.
“We are pleased to announce this transaction with META, which offers our securityholders an attractive valuation and significant premium to the recent trading price of the company’s shares. The transaction is also expected to provide Nanotech with greater access to capital to accelerate its commercialization and growth strategies. After careful consideration, the special committee and the company’s board have both unanimously concluded that the transaction is fair to Nanotech’s securityholders and is in the best interests of the company and its employees," D. Neil McDonnell, Nanotech Chair of the Board and Special Committee.
Meta Materials is advised by Cormark Securities, Hamilton Clark, Fasken and Wilson Sonsini Goodrich & Rosati. Nanotech is advised by Echelon Wealth Partners, Borden Ladner Gervais, Dorsey & Whitney, Firm IR Group and Sophic Capital.
Moody's, an American business and financial services company, agreed to acquire RMS, a global provider of climate and natural disaster risk modeling and analytics, from Daily Mail and General Trust for $2bn.
“In the context of a global pandemic, the climate crisis and increasing cyberattacks, our customers must manage a wider range of risks than ever before. We are excited to add RMS and its team of world-class data scientists, modelers and software engineers to the Moody’s family to help accelerate solutions that enable customers to build resilience and make better decisions," Rob Fauber, Moody President and CEO.
Moody’s is advised by Centerview Partners and Paul Hastings. Daily Mail is advised by Lazard, Cravath Swaine & Moore, Slaughter & May and Teneo.
New York Community Bancorp, a bank, and Flagstar Bancorp, a bank operator, received the necessary shareholder approval for their $2.6bn merger. The transaction is expected to close during the fourth quarter, subject to the satisfaction of certain closing conditions and the receipt of all necessary regulatory approvals.
"I am very pleased with today's vote, which validates the shareholder value created by the merger. The entire organization is very excited about the opportunities which lie ahead for the combined company while maintaining a strong commitment to our employees, customers, and to all the communities we serve," Sandro DiNello, Flagstar President and CEO.
Flagstar is advised by Jefferies & Company, Morgan Stanley and Skadden Arps Slate Meagher & Flom. New York Community Bancorp is advised by Goldman Sachs, Piper Sandler and Sullivan & Cromwell.
Clean Harbors, a provider of environmental and industrial services, agreed to acquire HydroChemPSC, an industrial cleaning company, from Littlejohn, a private equity firm, for $1.25bn. The acquisition, which is subject to regulatory approval and other customary closing conditions, is expected to close in 2021.
"Clean Harbors represents the ideal buyer of HPC. Through this transaction, our organization gains access to considerable resources, a broader suite of offerings and the largest network of permitted disposal and recycling assets in North America. We are confident that this combination will provide a meaningful benefit to our customers while enriching career opportunities for HPC employees," Brad Clark, HydroChemPSC President and CEO.
HydroChemPSC is advised by Moelis & Co and Troutman Pepper. Clean Harbors is advised by Goldman Sachs and Davis Malm & D'Agostine. Debt financing to Clean Harbors is provided by Goldman Sachs.
Bayer, a pharmaceutical and life sciences company, agreed to acquire Vividion Therapeutics, a biopharmaceutical company, from Versant Ventures, a healthcare investment firm, for $2bn, consisting of $1.5bn in cash upfront and $500m in potential future milestone payments. Closing of the transaction is contingent on customary closing conditions, including receipt of the required regulatory approvals, and is expected to take place in Q3 2021.
"This acquisition is a cornerstone of our strategy to fuel our pipeline with breakthrough innovation. Vividion's technology is the most advanced in the industry, and it has demonstrated its ability to identify drug candidates that can target challenging proteins. Together with Bayer's existing know-how, we will be able to develop first-in-class drug candidates, increasing the value of our pipeline. We want to provide innovative therapies for patients whose medical needs are not yet met by today's treatment options," Stefan Oelrich, Bayer Member of the Board of Management and President of the Pharmaceuticals Division.
Vividion Therapeutics is advised by Centerview Partners and Cooley. Bayer is advised by Credit Suisse and Baker McKenzie.
NexTier, a land oilfield service company, agreed to acquire Alamo, a pressure pumper based on next generation horsepower and active fleets, for $268m.
"The acquisition of Alamo accelerates and magnifies the impact of our next generation technology strategy, providing NexTier with significant opportunities for deploying gas-powered equipment and complimentary integrated solutions into a market with high and increasing demand. Combined, we will operate the third largest base of active hydraulic horsepower across the US and the largest base of next generation equipment in the Permian, improving our scale with highly-utilized fleets for an efficient customer base. We are impressed with Alamo's performance and their successful track record in the Midland basin. Therefore, other than enhancement by our last-mile logistics, NexHub and digital tools, operational integration will be minimal. Joe McKie, the Alamo President and CEO, will continue to lead the Alamo division of NexTier and report directly to me," Robert Drummond, NexTier President & CEO.
Alamo is advised by Kirkland & Ellis. NexTier is advised by Piper Sandler, King & Spalding and ICR.
Reliance Steel & Aluminum, a metals service center operator, agreed to acquire Merfish United, a distributor of carbon steel pipes, fittings and flanges, from One Equity Partners, a middle-market private equity firm. Financial terms were not disclosed.
"We identified Merfish as a unique business with strong growth prospects led by a talented management team. We're proud of our work with Merfish United's CEO Greg Leidner, Chairman Gerald Merfish and their team over the past eight years to create one of the largest master distributors of competitively priced standard pipe and tube products in North America," Jamie Koven, OEP Senior Managing Director.
One Equity Partners is advised by Houlihan Lokey, KPMG and Dechert.
Leaseweb, an infrastructure as a service provider, agreed to acquire iWeb, a provider of the on-demand server and cloud infrastructure, from INAP, a global provider of performance-driven, secure hybrid infrastructure solutions. Financial terms were not disclosed.
“We have followed the development of iWeb with great interest for a number of years, and as a business with very similar DNA to our own, we know they will bring a wide range of complementary services and skills to our presence in Canada. They live and breathe hosting, have a deep understanding of the requirements of Canadian customers, and we’re delighted to welcome them to the Leaseweb team," Con Zwinkels, Leaseweb CEO.
Leaseweb is advised by Touchdown PR. INAP is advised by Rothschild & Co.
Evolent Health, a clinical and administrative solutions deliverer, agreed to acquire Vital Decisions, a health care counseling services provider, from WindRose Health Investors, a private equity firm, for $130m.
"We believe Vital Decisions is a strong strategic fit for Evolent, as it adds patient engagement capabilities to New Century Health that should deliver strong clinical and financial outcomes, and presents two-way cross-sell opportunities. We believe this transaction also unlocks patient engagement and telehealth as levers for ensuring patients with complex illness receive high-quality, coordinated care," Seth Blackley, Evolent Health CEO.
Vital Decisions is advised by McDermott Will & Emery. Evolent Health is advised by Bass Berry & Sims.
DiamondRock, a real estate investment trust, completed the acquisition of Bourbon Orleans Hotel, a lifestyle boutique hotel, and Henderson Park Inn, a beachfront resort, for $108m.
"These high-quality acquisitions continue DiamondRock's multi-year strategic initiative to assemble a leading portfolio of leisure-oriented, experiential hotels and resorts. Finding off-market acquisitions in unique markets allows DiamondRock to purchase higher quality real estate at better pricing than many others. Moreover, these two deals have numerous attractive attributes we target, including proven cash flow, significant ROI opportunities, irreplaceable locations, high-barrier-to-entry markets, fee simple and fully unencumbered by brand and management," Mark W. Brugger, DiamondRock President and CEO.
Accel-KKR, a global technology-focused investment firm, completed an investment in Unimarket, a provider of procurement software and services. Financial terms were not disclosed.
"We are thrilled to be working with Peter and the Unimarket team. The company has been on our radar for a number of years and has continuously expanded its market leadership position during this time. Given our extensive experience investing in procurement and spend management software, we know we can bring material value to Unimarket's growth strategy," Phil Cunningham, Accel-KKR Operating Executive.
OneWater Marine, a premium recreational boat retailer, completed the acquisition of Stone Harbor Marina, a boat sales, storage, service, and repair provider. Financial terms were not disclosed.
“The addition of Stone Harbor Marina further highlights our winning acquisition strategy as we continue to opportunistically identify market-leading dealerships to fold into the organization. Tom and his team have done an incredible job with the business over the years, and we look forward to providing new opportunities and resources to support their continued success. Stone Harbor Marina will be a perfect addition as we continue to execute on our strategy to provide the best brands and buying experience to our customers,” Austin Singleton, OneWater CEO.
Investcorp in talks to buy a US credit manager. (FS)
Investcorp Credit Management is holding acquisition talks with a number of credit firms as the alternative asset manager looks to expand its US footprint and grow its collateralized loan obligation business.
The potential purchase is part of a plan to become one of the top global CLO shops by assets under management, Bloomberg reported.
“We are looking at firms between $3bn to $10bn in AUM. We are in active discussions with a number of multi-asset credit platforms that have CLO,” David Moffit, Investcorp Co-Head of Credit Management.
Weber raises $250m in downsized IPO. (FS)
Weber, a manufacturer of charcoal, gas and electric grills and accessories, raised about $250m in its IPO, which was less than half the amount it had planned to raise earlier, Reuters reported.
The grill maker priced its IPO of about 17.9m shares at $14 a piece. Weber last month had planned to sell 46.88m shares at between $15 and $17 each, which would have helped it raise up to $797m at a valuation of about $5bn.
Weber is advised by Goldman Sachs, Bank of America and JP Morgan.
Moderne Ventures closes second fund at $200m. (FS)
Chicago-based Moderne Ventures buttoned up an oversubscribed second fund, raising $200m this time, to infuse capital into startups in and around those industries. Moderne’s newest fund includes new and returning high-profile strategic partners like AvalonBay Communities, Camden Property Trust, Greystar, JBG SMITH, funds managed by Oaktree Capital Management and Realogy. The firm now has $350m in assets under management.
To date, the firm has investments in more than 100 companies, including five unicorns, three IPOs and dozens of accretive financing events in the past year. Notable investments in the portfolio include ICON, Porch, Better Mortgage, Hippo Insurance, Homesnap (acquired by Costar), MotoRefi, Super, EasyKnock and Kaiyo. For its new fund, Moderne Ventures has invested in seven companies so far.
Root Ventures hopes to raise $150m for Fund III. (FS)
San Francisco-based venture capital firm Root Ventures is looking to raise $150m for its third fund. Reaching the target, the fund will double the size of its predecessor Fund II.
The firm expects to complete the fundraise within the next 12 months according to a filing it lodged with the US Securities and Exchange Commission. Root has not registered any capital for the fund to date.
EMEA
Qualcomm, a designer and supplier of computer chips, offered to acquire Veoneer, an American Swedish provider of automotive technology, for $4.6bn. Magna International, a retailer of auto parts, previously offered $3.8bn for Veoneer.
"As the automotive industry continues to transform, it is becoming increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition. The proposed acquisition will bring together our industry-leading automotive solutions with Veoneer's assisted driving assets to deliver a competitive and open ADAS platform to automakers and Tier 1 suppliers at scale," Cristiano Amon, Qualcomm President and CEO.
Veoneer is advised by Morgan Stanley, Rothschild & Co and Skadden Arps Slate Meagher & Flom. Financial advisors of Veoneer are advised by Debevoise & Plimpton and Sullivan & Cromwell. Qualcomm is advised by Centerview Partners, Evercore and Paul Weiss Rifkind Wharton & Garrison.
The metal packaging business of Ardagh Group, a global supplier of infinitely-recyclable metal beverage and glass packaging, went public via a SPAC merger with Gores Holdings V, a SPAC managed by Gores Group, a global private equity firm, in a $3.4bn deal.
"We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey," Paul Coulson, Ardagh Chairman and CEO.
Ardagh was advised by Citigroup and Shearman & Sterling. Gores Holdings was advised by Deutsche Bank, Morgan Stanley, Loyens & Loeff and Weil Gotshal and Manges. Gores Group was advised by Sard Verbinnen & Co.
Eneti, known as Scorpio Tankers, a Monaco-based company specializing in offshore wind farm construction and services, agreed to acquire a 58% stake in Seajacks, an operator of lift boats, from Marubeni, a general trading company, INCJ and Mitsui & Co, a general trading company, for $385m.
“This transaction reflects the biggest step yet in our transformation into a world-class contractor for offshore wind. Seajacks is a market leader with a fleet of five advanced jack-up vessels; via this combination we will gain the valuable support of Seajacks shareholders who now become Eneti shareholders; moreover what is central to this combination is the committed and experienced professionals who join our team,"
Emanuele A Lauro, Eneti Chairman and CEO.
Eneti is advised by Bank of America, ING Bank, CMS Cameron McKenna Nabarro Olswang, Seward & Kissel and Slaughter & May. Debt financing is provided by ING Bank. Seajacks is advised by Pareto Securities and Shearman & Sterling.
Pamplona Capital Management, a private equity firm that invests in a broad range of asset classes, geographical markets, and industry sectors in both public and private market situations, agreed to acquire Pelsis, a global manufacturer and distributor of pest control products, from Lloyds Development Capital. Financial terms were not disclosed.
"We are very excited to begin this new chapter for Pelsis together with Pamplona. Pamplona will actively support Pelsis in achieving our shared goals and growing further into the US and Europe, consolidating our position as a market leader and introducing new, innovative products to the market. Having met the Pamplona team, we look forward to working with them in driving the company's further success," Andrew Milner, Pelsis CEO.
Pelsis is advised by Rothschild & Co and DLA Piper. Pamplona is advised by PricewaterhouseCoopers, OC&C Strategy Consultants, Houlihan Lokey, William Blair & Co and Kirkland & Ellis.
Apollo, an alternative investment manager, agreed to acquire a majority stake Graanul, a wood pellet producer. The transaction, which is expected to close later in 2021, is subject to antitrust and regulatory approvals and other customary closing conditions. Financial terms were not disclosed.
“With the accelerating Energy Transition in Europe and globally, baseload renewable energy sources such as biomass are a critical and enabling piece of the puzzle, by providing dispatchable electricity and heat to must-run facilities. Raul and the Graanul team are best-in-class in this industry and have done an excellent job scaling and positioning the business to play a critical role supporting this energy transition, as a reliable supplier to its customers, with proven sustainability," Brad Fierstein, Apollo Principal.
Apollo is advised by Allen & Overy, Paul Weiss Rifkind Wharton & Garrison and Sorainen. Graanul is advised by JP Morgan, Ellex and White & Case.
Siemens Mobility, a provider of intelligent and efficient mobility solutions, agreed to acquire Sqills, a rail software provider, for €550m. Closing of the transaction is subject to customary conditions and is expected in the first quarter of fiscal year 2022.
"The acquisition of Sqills is a perfect example of how Siemens combines the real and digital worlds to empower its customers in their transformation. At the same time, Sqills supports our own growth path for digital services and is a great example of applying our capital allocation criteria through targeted acquisitions. It also fits perfectly to our recently announced focus on generating recurring revenu~e through resilient business models such as Software as a Service," Roland Busch, Siemens President and CEO.
Sqills is advised by Ashcombe Advisers and De Brauw Blackstone Westbroek.
3i, a multinational investor focused on mid-market private equity and infrastructure, completed a $71m investment in MAIT Group, a provider of innovative and pioneering digital solutions in the DACH region.
“MAIT is uniquely positioned at the intersection of PLM, ERP and managed IT services and has significant penetration growth potential, as well as multiple strategic M&A opportunities in a highly fragmented market. This makes it an exciting and attractive platform investment for 3i and we are looking forward to working with the excellent management team, and leveraging our other successful partnerships in the technology and software sector, to continue MAIT’s profitable growth trajectory," Ulf von Haacke, 3i Partner.
3i was advised by Willkie Farr & Gallagher.
Zurich Italy, an insurance company, agreed to acquire the financial advisors network of Deutsche Bank, a global financial service provider. Financial terms were not disclosed.
“A further strengthening of our presence in the Italian market thanks to a network that excels in terms of expertise and presence on the territory. Valuable advisory is for us the key to the success of our business: the strong partnership with Deutsche Bank, which we have been working with for many years in Italy and globally, has allowed us to appreciate the value and expertise of its financial advisors, a landmark in the asset management sector. This acquisition is for us a significant step forward in a path of growth and continuous innovation and evolution of the business towards multi-channel model,” Alessandro Castellano, Zurich Italy CEO.
Zurich is advised by Rothschild & Co.
DoorDash in talks to invest in Gorillas.
DoorDash, a food delivery group, is preparing to make its first investment in Europe by taking a stake in Gorillas, a German grocery delivery app, FT reported.
Gorillas is seeking to raise hundreds of millions of dollars of funding at a valuation of about $2.5bn, far reduced from its original aspiration of a $6bn price tag.
APAC
ESR, a logistics real estate platform, agreed to acquire ARA Asset Management, a global integrated real assets fund manager, from Warburg Pincus for $5.2bn. Following the completion of the deal, ARA's business will be combined with ESR's platform. The transaction is subject to customary closing conditions including, amongst others, regulatory approvals and its closing is expected by the end of 2021 or first quarter 2022.
"We look forward to partnering with the ESR team, whose expertise, dedication and vision have led to building the region's leading logistics real estate platform, and we can now together provide investors with a full suite of products with an outsized contribution from New Economy real estate," John Lim, ARA Co-Founder and Deputy Chairman.
ARA is advised by Citigroup, DBS Bank, OCBC Bank and Latham & Watkins. ESR is advised by Morgan Stanley, United Overseas Bank and Freshfields Bruckhaus Deringer.
New Frontier, Vivo Capital, Fosun, Goldman Sachs Asset Management and Warburg Pincus agreed to acquire New Frontier Health, known as United Family Healthcare, a comprehensive private medical service platform, for $1.58bn. The transaction, which is currently expected to close during the fourth quarter of 2021, is subject to customary closing conditions.
The deal will result in the company becoming a privately-held company and its shares will no longer be listed on the New York Stock Exchange.
UFH is advised by Duff & Phelps, Davis Polk & Wardwell, Maples Group and ICR. New Frontier is advised by Global Law Office, Ogier and Simpson Thacher & Bartlett.
Tiger Global, an investment firm, led a $370m Series E funding round in BharatPe, an Indian fintech startup. Other investors include Dragoneer Investor Group, Steadfast Capital, Sequoia Capital, Insight Partners, Coatue Management, Amplo and Ribbit Capital.
"We now have $0.5bn cash on books and are extremely well capitalized to deliver on our mandate to build India's first truly digital bank," Ashneer Grover, BharatPe Co-Founder and Managing Director.
Tiger Global was advised by AZB & Partners.
GLP, an investment management firm, and Sequoia China, a venture capital firm, completed an $800m investment in Harvest Capital, a consumer private equity firm.
"The systematic injection of the long-term capital coupled with the capital management capabilities of an insurance company, the global warehousing, logistics and real estate fund management capabilities of GLP and the world-renowned investment capabilities of Sequoia China are a recognition of Harvest Capital as a professional consumer investment institution and a big bet on China's consumption sector," Song Xiangqian, Harvest Capital Founding Partner and Chairman.
Foxconn, an electronics contract manufacturer, agreed to acquire the wafer plant of Macronix, an integrated device manufacturer, for $90m. The transaction is expected to be closed by the end of 2021.
“Macronix is pleased to see the subject 6-inch wafer fab continue to make its contribution to Taiwan as Foxconn commits to have the fab be used as an important base for Foxconn to reinforce its semiconductor development plan and to meet the demand of electric vehicles. Considering that Macronix is advancing to take the lead in the global automotive electronics market, a closer collaboration between Macronix and Foxconn in the near future may be anticipated,” Miin Wu, Macronix Chairman and CEO.
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