Private equity firms Stone Point Capital and Clayton, Dubilier & Rice, completed the acquisition of the remaining 80% stake in Truist Insurance Holdings, the fifth largest insurance broker in the US and a subsidiary of Truist Financial, for $12.4bn.
"Today's announcement is a testament to our strategy, the value of our insurance business, and the strength and dedication of our teammates. Our investors provide us with a significant opportunity to expand our operations in an industry where scale is critical to remain competitive. With their backing, we will explore new avenues of growth and strengthen our overall operating strategy built around our diversified portfolio of top-performing businesses, each of which will continue to operate in the marketplace under its current brand name," John Howard, TIH CEO.
Stone Point Capital was advised by BNP Paribas, Bank of America, Barclays, Citigroup, Evercore, JP Morgan (led by Xavier Loriferne), Mizuho Securities, RBC Capital Markets, TD Securities, UBS, Wells Fargo Securities, Paul Weiss Rifkind Wharton & Garrison (led by Adam J. Longenbach and Brian M. Janson), and Simpson Thacher & Bartlett (led by Elizabeth Cooper and Mark Viera). Clayton, Dubilier & Rice was advised by BNP Paribas, Bank of America, Barclays, Citigroup, Evercore, JP Morgan, Mizuho Securities, RBC Capital Markets, TD Securities, UBS, Wells Fargo Securities, and Debevoise & Plimpton (led by Spencer Gilbert and Paul Bird). Mubadala Investment Company was advised by Skadden Arps Slate Meagher & Flom (led by Todd Freed and Patrick Lewis). Truist Financial was advised by Goldman Sachs, Morgan Stanley, Truist Securities, and Davis Polk & Wardwell (led by Margaret E. Tahyar, Oliver H. Smith, Evan Rosen, and Eric McLaughlin).
The European Union cleared US Steel's $14.9bn buyout by Japan's Nippon Steel on May 6, allaying competition concerns from a deal that has drawn political opposition in the United States, Reuters reported.
The approval by the European Commission was expected to be a formality but in the US, the deal is facing resistance from several lawmakers worried about national security and US Steel's union, which is concerned about job losses.
Private equity firms Clearlake Capital and Francisco Partners agreed to acquire Software Integrity Group, an application security testing software provider, from Synopsys, an American electronic design automation company, for $2.1bn.
"As security becomes more embedded in DevOps workflows, we believe the demand and importance of application security testing providers will continue to rise. We are ready to leverage Clearlake's O.P.S.® framework to foster operational enhancements, build upon the Software Integrity Group's robust product offering, and fuel new growth as a standalone enterprise," Behdad Eghbali, Clearlake Co-Founder and Managing Partner.
Clearlake Capital is advised by Barclays, Deutsche Bank, Evercore, Sidley Austin and Lambert & Co (led by Jennifer Hurson). Francisco Partners is advised by Barclays, Deutsche Bank, Evercore, Sidley Austin, Simpson Thacher & Bartlett and Sloane & Company (led by Whit Clay). Synopsys is advised by JP Morgan and Cleary Gottlieb Steen & Hamilton.
Bruker, a global life science analytical instrument company, completed the acquisition of NanoString Technologies, a provider of life science tools for discovery and translational research, for $393m.
“We have a proven track record in successfully integrating and nurturing our acquired businesses for growth and increased profitability, while preserving their cutting-edge R&D. We are excited to carry forward all the NanoString product lines which are so important for science and medical research," Dr. Mark R. Munch, Bruker NANO Group President.
Monomoy, a private equity firm, completed the acquisition of Southern Exteriors, a full-service installer of exterior building solutions tailored primarily for single-family homebuilders, from Halifax, a private equity firm. Financial terms were not disclosed.
"We enjoyed working with Aaron and the Southern Exteriors team to support the Company in its evolution into a leading, scaled platform serving key markets in the Southeast. Over our partnership, we developed a strategic plan to grow the business from its already outstanding foundation. We executed on this strategy by expanding into new markets, developing tech-enabled solutions to better serve our existing customer base and bolstering the management team," Doug Hill, Halifax Senior Partner.
Halifax was advised by Croft & Bender, Lincoln International, Locke Lord, and Lambert & Co (led by Caroline Luz).
Transom Capital-backed HALO Dream, a designer, developer, marketer and distributor of infant accessories and apparel, completed the acquisition of BreathableBaby, an innovative designer and manufacturer of juvenile safe sleep products. Financial terms were not disclosed.
"The BreathableBaby brand is an industry leader with significant potential for growth. Bringing the two companies together will unlock innovation grounded in deep consumer insight and executed across a broad range of channels globally," Walter Lehneis, HALO CEO.
Transom Capital was advised by Barnes & Thornburg and 35th Avenue Partners (led by Sam Butler). Debt financing was provided by MidCap Financial Services.
Osaic, one of the nation's largest providers of wealth management solutions, completed the acquisition of Lincoln Wealth, the wealth management division of Lincoln National, an insurance company. Financial terms were not disclosed.
“Lincoln is focused on continuing to execute on our enterprise strategic pillars, leverage our core strengths to grow our individual insurance solutions and workplace solutions businesses, and deliver long-term value for all of our stakeholders,” Ellen Cooper, Lincoln Financial Group Chairman, President and CEO.
Osaic was advised by Haven Tower Group (led by Joseph Kuo). Lincoln National was advised by Skadden Arps Slate Meagher & Flom (led by David Hepp).
Turnspire Capital, a private equity firm, agreed to acquire the nutraceuticals business unit of Ashland, a global speciality materials company serving customers in a wide range of consumer and industrial markets. Financial terms were not disclosed.
“We are thrilled to acquire this great platform with strong formulation and manufacturing capabilities, underpinned by its portfolio of proprietary ingredients, that position it as a supplier of choice to global multinationals and emerging brands alike. As an independent company benefiting from Turnspire’s extensive experience transforming corporate carve-outs into thriving standalone companies, the Business can build upon its capabilities to achieve sustainable, profitable growth,” Ilya Koffman, Turnspire Managing Partner.
Turnspire is advised by Gasthalter & Co (led by Mark Semer).
ReAlpha, a real estate technology company, completed the acquisition of Naamche, a technology company focused on developing AI-powered solutions for large industries. Financial terms were not disclosed.
“This transaction marks a milestone in our strategy to build and scale our capabilities for creating and delivering AI-powered real estate solutions. We are pleased to integrate Naamche’s talented team into our workforce and look forward to our collaboration to continue seeking real-estate focused product innovation,” Giri Devanur, reAlpha CEO.
ReAlpha was advised by ICR.
Core & Main, a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services, completed the acquisition of Geothermal Supply, a distributor and fabricator of high-density polyethylene pipe and other related products. Financial terms were not disclosed.
Core & Main provides solutions to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets, nationwide. With more than 350 locations across the US, the company provides its customers local expertise backed by a national supply chain.
Schueco International, a $2B+ global expert in windows, doors and façade solutions, agreed to acquire a minority stake in Skyline Windows, a window supplier. Financial terms were not disclosed.
“With four generations and more than 150 years’ worth of management experience, the Skyline team will apply their systems and processes on day one to lead our US operations forward,” Andreas Engelhardt, Schueco International CEO.
Akamai, an American delivery company that provides content delivery network, cybersecurity, DDoS mitigation, and cloud services, agreed to acquire Noname Security, an application programming interface security company, for $450m.
"API development continues to proliferate as customers prioritize their investments in application modernization and digital transformation initiatives. Combining Noname with Akamai's API Security offering will provide a solution for any type of customer. No matter where the customer's applications reside – be it in the cloud, natively on the edge, on-premise, or on other vendor platforms – they will be protected," Oz Golan, Noname CEO.
Privateer, the space data startup founded by Apple co-founder Steve Wozniak, completed the acquisition of Orbital Insight, an analytics firm. Financial terms were not disclosed.
The acquisition was made possible by the recent boost in funding and is set to enhance Privateer's space data offerings with mapping and intelligence services. Combining Orbital Insight's TerraScope Earth observation platform, which acts as a search engine for recently captured satellite imagery with Privateer's satellite-tracking software will create a comprehensive platform for satellite data analysis.
Stronghold, a provider of innovative digital payment solutions, completed the acquisition of 20022 Labs, a pioneer in advancing the ISO 20022 financial messaging standard. Financial terms were not disclosed.
"This integration aligns with our vision to lead in innovative payment solutions, leveraging 20022 Labs' expertise to propel our platforms, especially StrongholdNET, forward. This acquisition strengthens our position and underscores our commitment to fostering global financial accessibility and efficiency," Tammy Camp, Stronghold CEO.
Goldman Sachs Alternatives and Everstone Capital-backed Cprime, a trusted global consulting partner, agreed to acquire INRY, a ServiceNow Elite Partner. Financial terms were not disclosed.
"The addition of INRY to our organization marks a significant milestone in our journey to empower enterprises with transformative technology solutions," Srinivasan Veeraraghavachary, Cprime President.
Kimmeridge plans to invest more in US LNG despite Biden’s pause. (FS)
Kimmeridge plans to continue to invest in the US LNG export industry, even though new permitting is on hold while the Biden administration scrutinizes the sector, Bloomberg reported.
The company expects to make additional investments in the proposed Commonwealth LNG project in Louisiana. Kimmeridge is also open to deals with other US LNG export projects.
Dealmakers eye all-stock deals as US rate cut hopes fade.
As markets dial down expectations for US interest rate cuts this year, America's largest corporations are poised to rely more heavily on their stock and a bulging cash hoard instead of expensive debt to finance acquisitions, Reuters reported.
Since the start of 2023, the volume of mergers and acquisitions financed by stock or a mix of cash and stock has touched its highest level in more than two decades.
Paraguay pushes rival bid for $1.5bn Argentina-Brazil gas connector.
Paraguay is advancing talks with energy firms and high-ranking government officials from Argentina and Brazil over a potential $1.5bn gas pipeline to connect the three countries, Reuters reported.
The plan being drawn up by Paraguay, reported in detail for the first time, aims to compete with a rival Bolivian bid to repurpose existing pipelines to transport Argentine gas to Brazil. If either project is realized it would mark a major potential shift in regional energy flows.
Paul Weiss hires top M&A lawyer Jim Langston. (People)
Paul Weiss Rifkind Wharton & Garrison announced that James Langston has joined the firm as a partner in the Mergers & Acquisitions practice in the Corporate Department, resident in New York. Langston focuses his practice on public and private merger and acquisition transactions, activist defense M&A, and corporate governance. He is joining from rival firm Cleary Gottlieb Steen & Hamilton.
"Jim is an M&A superstar. Jim's arrival further secures our place at the top of the public M&A marketplace. Jim's vast experience on major deals will serve as a tremendous asset to our market-leading clients on their most critical transactions," Brad S. Karp, Paul Weiss Chairman.
UPS CFO Brian Newman to step down on June 1. (People)
United Parcel Service said on May 6 that its CFO and Executive Vice President Brian Newman would leave the company on June 1. UPS will evaluate internal and external candidates to replace Newman, Reuters reported.
The largest parcel delivery firm by market capitalization beat analysts' estimates for first-quarter profit in April as cost cuts offset still-soft demand for package delivery.
EMEA
The board of Banco Sabadell, a Spanish banking group, rejected the $12.9bn all-share merger offer from BBVA, a Spanish multinational financial services company.
The board said it believed BBVA's proposal significantly undervalues the potential of Banco Sabadell and its growth prospects, calling the offer unsolicited.
Sabadell is advised by Goldman Sachs and Morgan Stanley. BBVA is advised by UBS.
Goldman Sachs Alternatives, the alternative investments platform is part of Goldman Sachs, agreed to acquire a 75% stake in Crystal, an independent wealth management services and product provider, from Seven2, a private equity firm in Paris, France. Financial terms were not disclosed.
"Crystal is an exceptional company within the attractive wealth management advice and distribution sector. We are confident GS Alternatives as a partner and investor can help further accelerate Crystal’s growth trajectory," Michele Titi-Cappelli, Goldman Sachs Alternatives Partner.
Gruppo San Donato and GKSD-backed American Heart of Poland, the largest network of private hospitals in Europe regarding treatment of cardiovascular diseases, agreed to acquire Scanmed, a private healthcare provider in Poland, from Abris Capital, the ESG transformation specialist private equity investor group. Financial terms were not disclosed.
"This has been an exceptional value creation story over the past three years, as we have worked hard to transform Scanmed into the highest quality, fully diversified in-patient healthcare services provider in Poland. Through a combination of operational improvement, organic growth and the consolidation of several add-on acquisitions, the company has significantly exceeded the original investment case," Wojciech Lukawski, Abris Partner.
SoftBank, a Japanese multinational investment holding company, led a $1.05bn Series C round in Wayve, a developer of embodied intelligence for autonomous vehicles, with participation from NVIDIA and Microsoft.
"At Wayve, our vision is to develop autonomous technology that not only becomes a reality in millions of vehicles but also earns people's trust by seamlessly integrating into their everyday lives to unlock extraordinary value. This significant funding milestone highlights our team's unwavering conviction that Embodied AI will address the long-standing challenges the industry has faced in scaling this technology to everyone, everywhere," Alex Kendall, Wayve Co-Founder and CEO.
BofA, BNP poised to win lead roles on $20bn Sanofi spinoff.
Bank of America and BNP Paribas are on the verge of winning lead roles arranging Sanofi’s separation of its consumer-health business in one of the year’s most sought-after banking assignments, Bloomberg reported.
The French drugmaker has decided to hire the two banks, and probably will add one or two more to work on the transaction.
Etihad CEO considers buying small number of Airbus, Boeing jets.
Etihad Airways would consider buying a small number of aircraft from Airbus and Boeing over the next five years if delivery slots opened up, Reuters reported.
The Abu Dhabi's carrier plans to grow its fleet of narrow and wide-body aircraft to 150 over the next five years, up from around 80 jets today, which would mean adding around 10-15 new aircraft each year.
Prada heir says group always looking for M&A opportunities.
Italian luxury group Prada is always looking out for acquisition opportunities, Lorenzo Bertelli, son of the group's founders said, Reuters reported.
"The Prada group is and will always be looking around for opportunities", Bertelli, who serves as Prada's marketing director said, when asked whether the group was interested in acquiring Armani or other brands.
Al Gore fund boosts Octopus Energy stake as valuation soars to £7.2bn. (FS)
Generation Investment Management, which is chaired by the former US vice-president, has increased its stake in Britain's second-largest retail energy supplier, Sky News reported.
Britain's second-largest domestic energy supplier is now close to attaining a rare 'decacorn' valuation - referring to companies worth at least $10bn - after two shareholders increased their stakes in the company.
APAC
China Construction Bank, Bank Of China Asset Management, Hainan Zhongying Equity Investment Fund, Changshu Jingkai Guofa, and Guokai, led a $145m funding round in Hengtong Submarine Power Cable, a provider of ocean engineering cables and accessories, submarine optical-fiber cables.
Currently, there are a number of industry and institutional investors interested in joining the round. However, the total investment proceeds for the round will not exceed CNY3bn ($424m). Submarine cables have emerged to be another battleground for US-China rivalry.
Billups, a global Out-of-Home managed services agency, completed the acquisition of Billie Media, a New Zealand-based specialist OOH agency. Financial terms were not disclosed.
"Technology, innovation and transparency are growing engagement and opportunity in Out-of-Home. Our customers will get tremendous benefit from the centralized, global offering Billups brings to Australia and New Zealand. With the support of a cross-border, market-leading partner we can give advertisers confidence, value and accountability in buying OOH media wherever their customers may be," Ben Poole, Billie Media Director and Co-founder.
Philippines' PLDT in talks to sell up to 49% of data centre business to Japan's NTT.
The Philippines' largest telecommunications group PLDT is in talks to sell up to 49% of its data centre business to Japan's Nippon Telegraph and Telephone, Reuters reported.
The deal could value the data centre business at $750m.
Tycoon Richard Li said to near China Merchants fiber stake deal. (FS)
PCCW, the telecommunications group controlled by Hong Kong tycoon Richard Li, is in advanced talks to sell a significant minority stake in its fiber business to China Merchants Group, Bloomberg reported.
PCCW is close to selling 40% of its fiber unit to the Chinese state-owned conglomerate for $850m to $900m. PCCW and China Merchants are finalizing details and an announcement could be made as soon as the coming weeks.
Perpetual to be broken up with name being sold to KKR in nearly $1bn deal. (FS)
Australia's Perpetual will be broken up, with its name sold to global investment firm KKR, in a deal worth over AUD1.5bn ($990m), Reuters reported.
The transaction will represent the biggest overhaul in the fund manager's 138-year-old history and will give KKR the Perpetual name.
Thai drinks firm plans Singapore IPO for coconut water exporter.
Thai drinks maker General Beverage is planning a Singapore IPO for a unit that distributes its brands including IF coconut water overseas, Bloomberg reported.
The company is working with financial advisers and seeking a valuation of about SGD300m ($222m) for IFBH in a listing that could raise SGD30m ($22m) to SGD50m ($37m).
Princeton Digital gets green loan for $1.5bn Asia AI hub. (FS)
Princeton Digital Group secured a $280m green loan to help finance a $1.5bn data center it’s building in southern Malaysia, a first for the Asian infrastructure operator as it aims to get that complex operational by June, Bloomberg reported.
The Warburg Pincus-backed company, which builds and operates server facilities around the region, secured the financing from Maybank, Santander Chartered and United Overseas Bank. Princeton Digital said the deal marked its first so-called green loan, a form of debt targeted at environmentally friendly projects.
