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AMERICAS
Endeavor Group, an American holding company for talent and media agencies, agreed to acquire World Wrestling Entertainment, an American professional wrestling promotion company, for $9.3bn.
Endeavor will merge WWE with UFC, to form a new, publicly listed company consisting of two iconic, complementary, global sports and entertainment brands. Upon close, Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest in the new company. Together, UFC and WWE will have global reach, impressive scale and omnichannel distribution. On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4bn and a 10% annual revenue growth rate since 2019.
World Wrestling Entertainment is advised by JP Morgan, Moelis & Co, The Raine Group, Kirkland & Ellis (led by Edward J. Lee, Jonathan Davis and Chelsea Darnell) and Paul Weiss Rifkind Wharton & Garrison (led by Kyle T. Seifried and Scott A. Barshay). Endeavor is advised by Goldman Sachs, Morgan Stanley, Latham & Watkins (led by Justin Hamill, Michael V Anastasio, Jonathan P. Solomon, Ian A. Nussbaum, Rick Offsay and Morgan E. Brubaker) and Brunswick Group.
Extra Space Storage, a real estate investment trust headquartered in Cottonwood Heights, Utah, agreed to acquire Life Storage, a real estate investment trust headquartered in Williamsville, New York, for $12.7bn.
"We are impressed with the management team's strategic repositioning of the Life Storage portfolio over the last seven years, creating a highly diversified portfolio of quality storage assets in strong growth markets. The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities through scale efficiencies, higher retained cash flow, data analytics, third-party management relationships and more. We look forward to welcoming the Life Storage family to Team Extra Space and bringing our organizations together to drive enhanced growth," Joe Margolis, Extra Space CEO.
Life Storage is advised by Bank of America, Wells Fargo Securities, Hogan Lovells, Quinn Emanuel and Joele Frank (led by Andrew B. Siegel and Dan Moore). Extra Space is advised by Citigroup, JP Morgan and Latham & Watkins.
Glencore, a Swiss multinational commodity trading and mining company, offered to acquire Teck Resources, a diversified natural resources company headquartered in Vancouver, for $23.2bn. The offer was rejected by Teck's board of directors.
"The Board is not contemplating a sale of the company at this time. We believe that our planned separation creates a greater spectrum of opportunities to maximize value for Teck shareholders. The Special Committee and Board remain confident that the proposed separation into Teck Metals and Elk Valley Resources is in the best interests of Teck and all its stakeholders, is a much more compelling transaction and does not limit our optionality going forward," Sheila Murray, Teck Chair of the Board.
Teck Resources is advised by Ardea Partners, BMO Capital Markets, Barclays, Goldman Sachs, Origin Merchant Partners, Blake Cassels & Graydon, Paul Weiss Rifkind Wharton & Garrison, Stikeman Elliott and Sullivan & Cromwell.
Ovintiv, a hydrocarbon exploration and production company, agreed to acquire Midland Basin assets of EnCap Investments, an American private equity firm, for $4.3bn.
"We are acquiring a unique undeveloped asset in the Northern Midland Basin. Located in some of the best rock in the Permian, these assets have demonstrated leading well performance and are a natural fit with our existing Martin County acreage. The acquisition checks all the boxes on our disciplined durable returns strategy – it will be immediately and long-term accretive across all key financial metrics, the acreage is in an area where we have a competitive operating advantage, and it significantly increases our premium Permian well inventory. This will expand free cash flow per share and enhance our ability to deliver durable returns to our shareholders. We are confident that – given our operational efficiency, culture of innovation, and expertise and scale in the Permian Basin – Ovintiv is best positioned to convert this high-quality resource into tremendous value for our shareholders," Brendan McCracken, Ovintiv President and CEO.
Ovintiv is advised by Goldman Sachs, Morgan Stanley, Tudor Pickering Holt, Blake Cassels & Graydon, Gibson Dunn & Crutcher and Kirkland & Ellis. EnCap Investments is advised by Jefferies & Company and Vinson & Elkins.
Bakkt, a digital asset platform, completed the acquisition of Apex Crypto, a cryptocurrency exchange and investment platform, from Apex Fintech Solutions, a fintech company, for $200m.
"This acquisition marks an exciting new chapter for Bakkt, significantly advancing portions of our crypto roadmap, helping us tap into a universe of 5.8m crypto-enabled accounts, and further establishing Bakkt as the B2B2C crypto provider of choice. We're looking forward to welcoming the Apex Crypto team members to Bakkt and working together to accelerate our growth and strategy," Gavin Michael, Bakkt CEO.
Bridge Investment Group, a vertically integrated real estate investment manager, completed the acquisition of Newbury Partners, an investment manager, from RidgeLake Partners, a partnership between PA Capital and Ottawa Avenue Private Capital, for $320m.
"This acquisition and our expansion into the attractive secondaries sector further diversifies our strong platform and positions Bridge for accelerated growth. We believe secondary investments are increasing in appeal to a growing group of investors and we are excited to add Newbury's expertise to our platform," Robert Morse, Bridge Executive Chairman.
Mars, a confectionery, pet food, and other food products manufacturer, agreed to acquire Heska, an advanced veterinary diagnostic and specialty healthcare products manufacturer, for $1.3bn.
"Today's announcement is a great testament to the quality of our Heska family - we are small, but our people and their creativity, execution, expertise, and value-creation have made us exceptional. We are thrilled to join Mars Petcare on its quest to build A BETTER WORLD FOR PETS™. Working together, Heska's innovations will more quickly reach more veterinarians to help more pet families live better, healthier, longer lives. That's been our mission for over a decade and today is an incredible milestone towards realizing it," Kevin Wilson, Heska CEO & President.
Mars is advised by Bank of America, Piper Sandler and Gibson Dunn & Crutcher. Heska is advised by Lazard and Skadden Arps Slate Meagher & Flom.
Darling Ingredients, a service provider for efficient used cooking oil recycling and sanitary fat and bone pickup, completed the acquisition of Gelnex, a global producer of collagen products, for $1.2bn.
"Driven by strong growth in demand for collagen products in the global health and nutrition market, we anticipate the collagen peptides market to double in the next five years. Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increases our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide," Randall C. Stuewe, Darling Ingredients Chairman and CEO.
The Financial Times, a business news organisation, completed the acquisition of Endpoints News, a source of news and analysis for the thriving biopharmaceutical industry. Financial terms were not disclosed.
"We're thrilled to invest in Endpoints, a fast-growing business with a robust reputation for delivering quality news to audiences across the biopharma ecosystem. There is strong alignment between Endpoints and the FT in terms of mission, business model and focus on reader revenues. This acquisition also supports our ambitions to reach new audiences in innovative sectors and grow our footprint in the US," John Ridding, FT CEO.
Endpoints News was advised by Lazard and Lathrop GPM. FT was advised by PricewaterhouseCoopers and Morgan Lewis & Bockius.
EQT-backed Covanta, a sustainable materials management company, agreed to acquire Circon, a full-service provider of environmental services, from Kinderhook Industries, a private equity firm. Financial terms were not disclosed.
"Covanta, with Circon's new geographies and complementary capabilities, will offer the absolute highest value proposition for customers, with full integration across logistics, field services, processing and disposal. This acquisition accelerates our flightpath to becoming the premier company for sustainable materials management. With Circon, we are enhancing our carbon negative solutions and bringing our offerings to the next level. We're excited about this development and look forward to welcoming Circon's impressive team. Together we'll continue to transform Covanta into the very best service provider for our customers' unique environmental challenges and ESG goals," Azeez Mohammed, Covanta President and CEO.
Circon is advised by Brown Gibbons Lang & Company, Houlihan Lokey and Kirkland & Ellis. Covanta is advised by Simpson Thacher & Bartlett.
nVent, a provider of electrical connection and protection solutions, agreed to acquire ECM Industries, a global manufacturer and supplier of electrical products for construction and maintenance, irrigation and landscape supply, for $1.1bn.
"We are excited to acquire ECM Industries. This deal aligns with nVent's acquisition strategy focused on great products in high-growth verticals that we can scale, positioning us for continued long-term value creation. ECM Industries has a highly complementary portfolio of electrical power connection and grounding solutions, including its ILSCO brand. Together with ECM, nVent can provide a broader offering to customers, including electrical contractors, and to distribution partners. With a long history of focusing on the customer and growth, industry-leading brands and a people-oriented culture, we believe ECM will be a great fit with nVent," Beth Wozniak, nVent CEO.
nVent is advised by Foley & Lardner. Debt financing is provided by JP Morgan.
Bio-Techne, a life sciences company, completed the acquisition of a 20% stake in Wilson Wolf, a developer and manufacturer of cell culture technologies, for $257m.
"This investment represents a great step toward our eventual full ownership of Wilson Wolf. The acquisition of Wilson Wolf, combined with our world-renowned portfolio of cell and gene therapy workflow solutions, caps 5 years of strategic investment to position Bio-Techne as a leader in tools serving this market. I am excited about Wilson Wolf's role in simplifying and reducing the cost of manufacturing cell therapies. Wilson Wolf has been a great partner in our ongoing collaboration through ScaleReady, and we are looking forward to further strengthening the relationship upon the achievement of the remaining milestone," Chuck Kummeth, Bio-Techne President and CEO.
SoFi, a digital financial services provider, completed the acquisition of Wyndham Capital Mortgage, a fintech mortgage lender. Financial terms were not disclosed.
"At SoFi, we're on a mission to help people get their money right and purchasing a home is often one of, if not the, biggest financial decision individuals make in their lives. Several macro- and socioeconomic factors – high inflation and rising mortgage rates, the new world of work, and others – have ushered in a new era across the US real estate market. These changing conditions mean it's more important than ever that borrowers have a trusted partner they can look to as they go through the process of obtaining a mortgage for a home. Today's acquisition of Wyndham Capital will not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies and helps members get their money right when it comes to one of life's most significant financial milestones," Anthony Noto, SoFi CEO.
UBS deal for Credit Suisse unseats JP Morgan as Latin America's top wealth manager.
UBS Group will leapfrog JP Morgan Chase & Co to become Latin America's biggest wealth manager through its acquisition of Credit Suisse Group, Bloomberg reported.
With about $150bn in wealth under management from clients from the region, UBS will take the top spot after adding Credit Suisse's $80bn total. JP Morgan manages about $180bn. Itau Unibanco Holding will keep its no. 3 position, with $140bn in assets.
US biotech firm Apellis is said to attract takeover interest.
Apellis Pharmaceuticals, a biotech firm focused on rare diseases and ophthalmology, is drawing takeover interest from larger drugmakers, Bloomberg reported.
The company is speaking to advisers to consider its options amid the interest. Apellis may also consider seeking partnerships or licensing agreements for some of its ophthalmology products.
EMEA
Switzerland's Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse by UBS Group, Reuters reported.
The prosecutor, based in the Swiss capital Bern, is looking into potential breaches of the country's criminal law by government officials, regulators and executives at the two banks, which agreed on an emergency merger last month to avoid a meltdown in the country's financial system.
M&G Investments will vote against a takeover from Providence Equity of British events group Hyve, along with two other Hyve shareholders who think the bid significantly undervalues the international exhibition company, Reuters reported.
Redwheel fund manager David Stewart and Douglas Smith, managing partner at Blackmoor Investment Partners also plan to vote against the deal. M&G, Redwheel and Blackmoor are among the top 20 shareholders of Hyve.
Vermilion Energy, an international oil and gas producer, completed the acquisition of an additional 36.5% stake of Corrib gas project from Equinor, an energy company, for $434m.
"The Corrib field has been an important non-operated project for Equinor for several years. We have taken the decision to sell the asset to focus our portfolio, in line with our strategy, to capture value from the current strong market and to free up capital that we can re-invest elsewhere," Arne Gürtner, Equinor Senior Vice President.
Phoenix Group, a British closed life assurance fund consolidator, completed the acquisition of Sun Life UK, a closed book UK life insurance company, from Sun Life Financial, a provider of insurance and savings services, for £248m ($306m).
"The acquisition of Sun Life UK is highly attractive for Phoenix Group and demonstrates the significant value that smaller cash-funded M&A transactions can deliver for our shareholders. We expect this acquisition to deliver incremental long-term cash generation of around £470m ($580m), inclusive of cost and capital synergies. This supports a 2.5% dividend increase, in line with our ambition to sustainably grow our dividend over time," Andy Briggs, Phoenix Group CEO.
The Blackstone Group, an American alternative investment management company, agreed to acquire Industrials REIT, a listed property company focusing on UK multi-let industrial estates, for £500m ($617m).
The Board of Industrials REIT has indicated to Blackstone that it intends to recommend the financial terms of the final offer to Industrials REIT shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such terms.
Trimble, a SaaS technology company, completed the acquisition of Transporeon, a cloud-based transportation management software platform, from Hg, a private equity firm, for €1.88bn ($2.04bn).
"The past three years has significantly accelerated Transporeon forward in our mission to bring transportation in sync with the world. Innovation in our products and an expansion of the business has meant we have built a remarkable platform in a rapidly growing sector, with solutions that are in high demand globally. This would not have been possible without the software expertise delivered by Hg. The management team thank everyone at Hg and Transporeon who have worked hard together to put us in this very advantageous position," Stephan Sieber, Transporeon CEO.
Transporeon was advised by Goldman Sachs and Latham & Watkins (led by Oliver Felsenstein). Trimble was advised by Centerview Partners, Skadden Arps Slate Meagher & Flom (led by Thomas J. Ivey) and FGS Global (led by John Christiansen). Centerview Partners was advised by Freshfields Bruckhaus Deringer (led by Ethan A. Klingsberg). Debt financing was provided by Bank of America. Hg was advised by Brunswick Group (led by Azadeh Varzi).
Cathay Industries, a manufacturer and supplier of iron oxide pigments, coatings and construction-grade iron oxides, completed the acquisition of the iron oxide business from Venator, a global manufacturer and marketer of chemical products, for $140m.
"In addition to the recently announced $51m sale-leaseback transaction, we have entered into a definitive agreement to sell our iron oxide business from within our Color Pigments business to Cathay Industries for an enterprise value of $140m. The average EBITDA of this business in 2020 and 2021 proforma adjusted for the impact of the sale-leaseback was $16m. We believe Cathay will be an excellent long-term strategic owner of the business going forward. The transaction is expected to close by the end of the first quarter in 2023," Simon Turner, Venator President and CEO.
Perwyn, a private equity firm in London, completed the investment in Datatonic, a business-to-business services provider. Financial terms were not disclosed.
"We are delighted to be partnering with the Datatonic team, and to help accelerate their growth plans, starting with the acquisition of Montreal Analytics, which broadens access into the all-important North American market," Mike Rothwell, Perwyn Investment Manager.
The Rohatyn Group, a specialized global asset management firm, completed the acquisition of Ethos Private Equity, an alternative asset management firm in Africa. Financial terms were not disclosed.
"We are pleased to complete our acquisition of Ethos, which marks our official expansion into Africa, one of the largest and fastest growing regions in the world. Together, with unmatched local knowledge and a skilled global team of investors, we'll unlock significant opportunities to drive further growth across the continent's private markets, real assets, and public markets," Nicolas Rohatyn, The Rohatyn Group Founder and CEO.
Acorns, a saving and investing app, completed the acquisition of GoHenry, a startup focused on providing money management and financial education services. Financial terms were not disclosed.
"All kids around the world deserve access to responsible money management tools and financial education. GoHenry's mission driven approach is perfectly aligned with Acorns, which we expect will help us accelerate our roadmap and deliver financial wellness to the whole family through all of life's stages," Noah Kerner, Acorns CEO.
GoHenry was advised by Three Sixty Communications. Acorns was advised by Financial Technology Partners.
BDT Capital, a private equity firm, completed the acquisition of a minority stake in Exyte, a global provider of high-tech facilities. Financial terms were not disclosed.
"We look forward to working with Exyte's management team to support the company's continued growth as it executes against its strategy. This partnership is emblematic of our approach providing aligned long-term capital to family- and founder-led businesses to help them sustain and grow their businesses," Don McLellan, BDT Partner.
Sonic Healthcare, a Sydney-based, Australian company that provides laboratory services, pathology, and radiology services, agreed to acquire Diagnosticum, one of the largest clinical and anatomical pathology laboratory groups operating in the South East of Germany, around the city of Dresden, for €190m ($207m).
"We are delighted that the pathologists and staff of Diagnosticum will join Sonic Healthcare's expanding German and global team and I take the opportunity to warmly welcome these new colleagues to our company. Diagnosticum's reputation and expertise will complement and add substantial value to Sonic Healthcare and we look forward to working with our new colleagues to further strengthen and propagate our Medical Leadership culture, in the interest of our clinicians and their patients," Colin Goldschmidt, Sonic CEO.
Greencoat UK Wind, a specialist manager dedicated to the renewable energy infrastructure sector, agreed to acquire the Dalquhandy, a 42MW wind farm located near Coalburn in South Lanarkshire, from BayWa, a construction engineering company, for £50m ($62m).
"Greencoat UK Wind continues to generate significant cash flow in excess of its dividend and we are delighted to announce the acquisition of Dalquhandy wind farm. This NAV accretive transaction grows our portfolio to 46 wind farms with a generating capacity of 1.6k MW. Our pipeline of potential acquisitions remains healthy and we look forward to making further attractive investments in due course as we continue to play our role in decarbonizing the UK economy," Shonaid Jemmett-Page, UKW Chairman.
Siris Capital Group, a private equity firm, and Elliott Management, one of the oldest fund managers of its kind under continuous management, completed a $200m investment in Travelport, a global technology company that powers travel bookings for hundreds of thousands of travel suppliers worldwide.
"The $200m investment from our owners, Siris Capital Group and Elliott Management, reflect their confidence in Travelport and the continued recovery of the travel industry. The main advantage of private equity ownership is agility, which is crucial in a rapidly changing environment. This investment will allow Travelport to further advance its tech innovations, while fueling the company's momentum," Greg Webb, Travelport CEO.
Saudi Arabian auto rental firm Lumi hires banks for planned IPO.
Saudi Arabian auto rental firm Lumi has hired Saudi Fransi Capital and EFG Hermes to arrange the sale of 30% of its shares in a planned initial public offering, DealStreetAsia reported.
The kingdom's largest travel company Seera, which owns Lumi, won approval for the float from Saudi Arabia's Capital Market Authority last week. Companies that secure approval from the CMA have six months to launch their public share sale.
APAC
Bain Capital, a global investment firm, and GIC, a global institutional investor, agreed to acquire WHI Holdings, an HR software provider. Financial terms were not disclosed.
"WHI has continued to elevate its compelling value proposition by helping workforces across Japan collaborate smarter and more effectively, and adapt seamlessly to a variety of work environments. We're extremely proud of their growth to-date and look forward to continuing to partner with senior management and GIC to bring their innovative solutions to customers across Japan and Asia," Yuji Sugimoto, Bain Capital Partner and Co-head of Asia Private Equity.
Bain Capital is advised by TrailRunner (led by Trudy Wang).
CITIC, a state-owned investment company of the People's Republic of China, agreed to acquire a 55% stake in Nanjing Iron & Steel Group, a Chinese iron and steel conglomerate company, for $2bn.
The acquisition represents the further consolidation of China's domestic steel mills.
CITIC is advised by CITIC Securities (led by Edmund Chan).
Westpac Banking, a financial services company, completed the acquisition of BT Financial Group, a financial services company. Financial terms were not disclosed.
"The completion of the merger and sale has created benefits for BT Super members, new opportunities for our people with a global investment and retirement specialist, and redefined the landscape of superannuation in Australia," Jason Yetton, Westpac Specialist Businesses Chief Executive.
Westpac was advised by Ernst & Young.
CapitaLand, a Singaporean headquartered company focusing on investment, development and management of real estate, agreed to acquire six multifamily assets in Osaka, Japan for $106m.
"CLI has over 20 years of experience in Japan, and we are pleased to source and execute this off-market deal for COREF in Japan's sought-after multifamily sector that has seen increasing interest from international investors," Tan Lai Seng, CLI Managing Director for Japan.
Trustar Capital weighs sale of Hong Kong soy sauce brand Amoy. (FS)
Trustar Capital, a private equity company, is considering selling Amoy Food, the 115-year-old Hong Kong soy sauce maker, Bloomberg reported.
The private equity firm formerly known as Citic Capital Partners has held initial discussions with potential advisers about the divestment. Trustar is seeking a valuation of about $300m for Amoy.
Hotpot ingredient supermarket chain considers $500m HK IPO.
Guoquan Supply Chain, a hotpot and barbecue ingredient supermarket chain, is considering a Hong Kong initial public offering that could raise $300m to $500m, Bloomberg reported.
The company, commonly known by its brand Guoquan Shihui, is working with China International Capital and Huatai Securities on the listing preparations. The company is looking to file a preliminary prospectus this week.
CICC Capital holds first close of new economy fund at $145m. (FS)
CICC Capital, the flagship private equity platform of China International Capital, has held the first close of a new RMB-denominated fund at about $145m to back new economy startups in southern China's Greater Bay Area, DealStreetAsia reported.
The fund, whose Chinese name can be directly translated into "CICC (Shenzhen) New Economy Venture Capital Partnership", will invest in new economy areas including advanced technology, high-end manufacturing, healthcare, consumption, new energy, and new materials.
Nomura appoints Rudolf Hitsch as North Asia's head of wealth management. (People)
Japanese investment bank Nomura Holdings appointed Dr. Rudolf Hitsch as head of North Asia for its international wealth management business, DealStreetAsia reported.
Hitsch, former head of North Asia at Citi Private Bank, will be based in Hong Kong and run client relationship management teams covering North Asia in the newly created post. He will report to Ravi Raju, head of the wealth unit.
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