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AMERICAS
Emerson, a technology, software and engineering powerhouse, completed the acquisition of National Instruments, a provider of testing and measurement equipment and integrated, software-led solutions, for $8.2bn.
"Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness and end market diversification across Emerson's portfolio. We are pleased to welcome NI employees to Emerson and benefit from our shared visions and cultures, including our mutual commitment to innovation, operational excellence and sustainability. Together, we look forward to providing our customers more innovative and differentiated products, executing on our synergy targets and delivering increased shareholder value," Lal Karsanbhai, Emerson President and CEO.
ExxonMobil, an international petroleum and petrochemical company, agreed to acquire Pioneer Natural Resources, an oil and gas exploration and production company, for $64.5bn.
“Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis. Their tier-one acreage is highly contiguous, allowing for greater opportunities to deploy our technologies, delivering operating and capital efficiency as well as significantly increasing production. As importantly, as we look to combine our companies, we bring together environmental best-practices that will lower our environmental footprint and plan to accelerate Pioneer’s net-zero plan from 2050 to 2035," Darren Woods, ExxonMobil Chairman and CEO.
ExxonMobil is advised by Citigroup, Centerview Partners, and Davis Polk & Wardwell (led by Louis L. Goldberg and Oliver H. Smith). Pioneer Natural Resources is advised by Goldman Sachs, Morgan Stanley, Petrie Partners, Bank of America, and Gibson, Dunn & Crutcher.
Spin Master, a children's entertainment company, agreed to acquire Melissa & Doug, a children's toys manufacturer, for $950m.
"Throughout our 35-year history, Melissa & Doug has helped ignite children's imaginations by fostering open-ended, sustainable play, We are confident that by working together with Spin Master, we will be able to reach more families, inspire more imaginations and unlock greater growth potential," Fernando Mercé, Melissa & Doug President and CEO.
Spin Master is advised by Evercore, RBC Capital Markets, TD Securities, Pillsbury Winthrop Shaw Pittman, Torkin Manes and Crestview Partners. Melissa & Doug is advised by Harris Williams & Co and Fried Frank Harris Shriver & Jacobson.
Citation Capital, a private equity firm, agreed to acquire a majority stake in Cibo Vita, a natural and functional snacks producer. Financial terms were not disclosed.
"Our vision in founding Cibo Vita was to bring healthier snacking options to all families, inspired by our Mediterranean roots. Throughout our history, we have experienced phenomenal growth, attributed to our innovation capabilities, commitment to quality, and a drive to meet the needs of consumers increasingly seeking healthier functional snacking. We sought out a strategic partner that could help ensure that we stay on the forefront of innovation and who is aligned with our personal core values," Emre Imamoglu, Cibo Vita CEO.
Citation Capital is advised by Nelson Mullins Riley & Scarborough and Maximum Exposure PR. Cibo Vita is advised by Gibson Dunn & Crutcher and Prosek Partners. Debt financing is provided by American Ag Credit, Bank of America and Wells Fargo Securities.
Harmony Biosciences, a pharmaceutical company dedicated to developing and commercializing innovative therapies for patients with rare neurological diseases, completed the acquisition of Zynerba Pharmaceuticals, a provider of innovative pharmaceutically-produced transdermal cannabinoid therapies for orphan neuropsychiatric disorders, for $200m.
"Zygel is a significant market opportunity that advances our long-term growth strategy of developing a diversified portfolio beyond sleep/wake therapies.This acquisition expands our pipeline with a product candidate in our area of expertise that could address high unmet medical needs for people living with rare neuropsychiatric disorders," Jeffrey M. Dayno, Harmony Biosciences President and CEO.
TPG Rise Climate, the dedicated climate investing strategy of TPG, agreed to acquire a majority stake in AmSpec, a testing, inspection, and certification company, from Olympus Partners, a private equity firm. Financial terms were not disclosed.
"As part of its broad set of services, AmSpec has developed deep expertise in the control of pollutants and emissions factors in legacy fuels, and they will play a critical role in processing, testing, and certifying the growing volume of increasingly complex renewable fuels that we see coming online. We are thrilled to be investing in AmSpec's best-in-class lab network at this inflection point in the global fuels mix, and we look forward to working closely with the management team to enter new markets and accelerate the global energy transition," Marc Mezvinsky, TPG Partner.
AmSpec is advised by Goldman Sachs, Robert W Baird and Morgan Lewis & Bockius.
TA Associates and OceanSound, two private equity firms, agreed to invest in Kinective, a provider of connectivity, workflow, and analytics software. Financial terms were not disclosed.
"Kinective is a force multiplier in banking, enabling access to innovation so financial institutions can reduce time-to-market of new technology, lower operating costs, build connected experiences, and delight their clients. We believe there is considerable opportunity to unlock further value for Kinective's customers through product investments, new partnerships, and strategic acquisitions. We are pleased to join OceanSound as partners in Kinective and look forward to leveraging TA's software expertise and global add-on acquisition and integration capabilities to drive sustained growth," Hythem El-Nazer and Mike Libert, TA Managing Directors.
GTS, an electronic market maker across global financial instruments, completed the acquisition of the foreign exchange trading assets of HC Tech, an algorithmic trading firm. Financial terms were not disclosed.
“Enhanced liquidity through sophisticated, real-time pricing across asset classes and geographies is a hallmark of GTS’s market making activities. This acquisition allows us to bring pinpoint pricing to the volatile FX marketplace – pricing that GTS excels in," Ari Rubenstein, GTS Co-founder and CEO.
GTS was advised by Profile Advisors (led by Rich Myers).
Central Valley Community Bank, a community bank, agreed to merge with Community West Bank, a financial services company, in a $99m deal.
"Central Valley Community Bank has steadily and profitably grown for over 43 years, building a highly attractive franchise in California's San Joaquin Valley and Greater Sacramento region. The complementary culture, client service model and Central Coast presence of Community West Bank further the opportunity for company growth in well-recognized Central California communities, creating a combined franchise whose strength and size continue to serve clients and communities with integrity, offering enhanced professional employee development opportunities and greater earnings power for shareholders," James J. Kim, Central Valley Community Bank President and CEO.
Alamo Group, a company that designs and manufactures agricultural machinery and tools for maintaining infrastructure, completed the acquisition of Royal Truck & Equipment, a manufacturer of attenuator trucks. Financial terms were not disclosed.
"We are very pleased to have completed this acquisition and to have Royal Truck join the Alamo Group family of companies. This acquisition aligns very closely with our long-term strategy of acquiring business operations in adjacent markets. Royal Truck represents our entry into the highway safety equipment market, a new platform where we see compelling future opportunities. We are excited about the potential to accelerate Royal Truck's growth in an expanding market that should benefit from higher government infrastructure spending," Jeff Leonard, Alamo Group President and CEO.
Billionaire Paolo Rocca has a plan B for lithium if the Alpha bid fails.
Billionaire Paolo Rocca’s oil drilling unit will enter the lithium business one way or another — saying it’s lining up other options in case it fails with a $1bn plan to develop a project in Argentina, Bloomberg reported.
Tecpetrol is giving shareholders in Alpha Lithium until October 20 to accept a “best and final offer” that’s worth $210m to $230m, said Jorge Dimopulos, Tecpetrol Energy Transition Vice President. If it manages to gain control of the Vancouver-based firm, Tecpetrol will plow ahead with an $800m investment to build Alpha’s project in Salta province. If not, it will turn its attention to other lithium opportunities.
Astra Space is exploring options, including asset sales.
Rocket-launch company Astra Space is considering selling a 51% stake in its in-space propulsion business, among other strategic sale options, Bloomberg reported.
The Alameda, California-based company would seek to value that unit at more than $100m in that scenario. Astra is weighing the potential sale of various parts of its business, including its equipment, parts of its rocket factory and its in-space propulsion division.
Elite Avenues schools in NY and Sao Paulo are to be sold to Nord Anglia.
The New York and Sao Paulo campuses of the elite Avenues school will be acquired by Nord Anglia Education, Bloomberg reported.
Headwinds caused by the pandemic and changing financial markets made it challenging for the campuses to continue on a growth path. Avenues, founded in 2012, operates a network of schools around the world.
Smucker kicks off bond sale to help fund Hostess acquisition.
The American food manufacturing giant, also known as Smuckers, is selling bonds in as many as four parts. The longest portion of the offering, a 30-year fixed-rate note, may yield around 2.05 percentage points above Treasuries.
Warburg Pincus raises record $17.3bn for latest global fund. (FS)
US private equity giant Warburg Pincus has announced raising $17.3bn for its latest global flagship fund Warburg Pincus Global Growth 14, marking the largest-ever fundraising in its 57-year history, DealStreetAsia reported.
The fund, which was launched in 2021, exceeded its $16bn target and the size of the previous global flagship fund, which closed at $15bn in 2018, according to the announcement. The new fund also surpassed in size Warburg Pincus Private Equity X, a $15.1bn PE fund the firm launched in 2007, which was its largest fund prior to WPGG 14.
EMEA
Britain's antitrust watchdog is examining whether a $19bn tie-up between Vodafone's UK operation and CK Hutchison's Three UK would substantially lessen competition, Reuters reported.
The Competition and Markets Authority invited comments from interested parties on the deal announced in June, which would create the UK's biggest mobile operator.
Vodafone is advised by Morgan Stanley, Robey Warshaw (led by Simon Robey) and Slaughter & May (led by Roland Turnill, Victoria MacDuff and Richard Hilton). CK Hutchison is advised by HSBC, Freshfields Bruckhaus Deringer (led by Thomas Wolfgang Wessely and James Aitken) and Linklaters (led by Thomas Greenhalgh, Matthias Schorer, Connor Chalmers, Nicholas Puschman, Matthew Halliday, Maesya Roebuck, Christian Mok, Tatum Govender, Sam Kember, Robert Cleaver, Georgina Kon, Hugo Stolkin, Marly Didizian and Chris Smale).
PowerFleet, an internet of things software-as-a-service solutions, agreed to merge with MiX Telematics, a provider of fleet and mobile asset management solutions. Financial terms were not disclosed.
"By leveraging our proven SaaS strategy across the combined business, spearheaded by our Unity platform and data highway, we firmly believe we will be extremely well positioned to drive incremental market consolidation. Realizing transformative scale, this transaction with MiX will provide the go-forward company with 1.7m subscribers, and the ability to sell additive and accelerated AI and data-powered software solutions to a truly global set of customers," Steve Towe, Powerfleet CEO.
MiX Telematics is advised by Java Capital, Raymond James and DLA Piper. Powerfleet is advised by William Blair & Co, Olshan Frome Wolosky, Webber Wentzel and Gateway Group (led by Cody Cree).
Britain's antitrust regulator said it has decided to refer for an in-depth investigation into Turkish domestic appliances maker Arcelik's proposed purchase of Whirlpool's appliances business in Europe, Reuters reported.
The Competition and Markets Authority said the decision for a Phase 2 probe was taken after the parties informed the regulator they would not offer any undertakings towards addressing any potential substantial lessening of competition within the UK due to the deal.
Ara Partners, a private equity firm, completed the acquisition of Vacuumschmelze, an advanced magnetic materials producer, from Apollo, an investment company. Financial terms were not disclosed.
"We are excited to partner with Ara Partners, which has a strong track record of working closely with management teams across the industrial economy to create value while achieving meaningful decarbonization benefits. Ara and VAC will capitalize on significant growth opportunities for soft and hard magnetic solutions alongside our loyal partners and customers. In addition, we will accelerate work towards building our rare earths value chain, pursuing a range of strategic growth opportunities to establish a robust supply chain for EV manufacturing in the Western World," Erik Eschen, Vacuumschmelze CEO.
Brickability, a building material company, completed the acquisition of Topek, a construction services provider, for £45m ($55m).
"We've seen in our Bricks and Building Materials division how cladding products supply has gone from strength to strength. With Topek, which will sit in our Contracting division, we will be building on that and expanding our existing product and services range into supply and installation as we continue to pursue our diversified multi-business strategy," Alan Simpson, Brickability CEO.
Brickability was advised by Cenkos Securities (led by Ben Jeynes) and Montfort Communications. Topek was advised by BDO.
JD Sports, a sportswear store, completed the acquisition of an additional 50% stake in Iberian Sports, a branded sports and casual wear provider, from Balaiko Firaja Invest and Sonae, a company with a diversified portfolio of businesses in retail, financial services, technology, for €500m ($543m).
"ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth," Régis Schultz, JD Sports CEO.
JD Sports was advised by Cuatrecasas Goncalves Pereira. Sonae was advised by King & Wood Mallesons (led by Pablo Diaz Gridilla).
DHL Global Forwarding, a freight forwarder company, agreed to acquire Danzas AEI Emirates, a third-party logistics provider, from Investment Trading Group and Al Tayer Group. Financial terms were not disclosed.
"Our close and trusted partnership with the Investment Trading Group over many years has taken Danzas to new heights and strengths. We are proud and grateful about what we have achieved together. As DHL continues on its expansion trajectory across the region, a merger of both organizations will create a winning proposition for customers in the region, driving efficiency and sustainability," Tim Scharwath, DHL Global Forwarding CEO.
Al Tayer Group is advised by Rothschild & Co.
Fidelity Management & Research, a multinational financial services corporation, led a $100m in Agomab Therapeutics, a Belgian biotech company, with participation from EQT Life Sciences, Canaan and Dawn Biopharma.
"With the addition of these world-class investors we continue to build the company as a leader in the field of fibrosis and have secured the funding required to conduct clinical studies for multiple drug candidates. I am very pleased to be able to work with the new board to further develop our potentially game-changing therapeutics for the many patients in high need for anti-fibrotic therapies," Tim Knotnerus, Agomab Therapeutics CEO.
KKR considers $4.2bn sale of European car park operator Q-Park. (FS)
KKR is considering a sale of Q-Park that may value the European car park operator at about $4.2bn, including debt. The private equity firm has held talks with potential advisers about an exit, Bloomberg reported.
It could start gauging buyer interest in Q-Park early next year. Deliberations are ongoing, and there's no certainty they will lead to a transaction. In 2017, KKR's infrastructure arm acquired Q-Park, based in Maastricht in the Netherlands. The company operates 677k parking spaces in over 3k commercial parking facilities across seven countries, including the UK.
Next close to buying rival UK fashion retailer Fat Face.
Next is planning to buy rival British fashion chain Fat Face for around £100m ($123m). The deal may be announced later this week, Bloomberg reported.
Next, which trades from over 500 stores and online, has been picking up stakes in or acquiring smaller retailers in recent years as it expands its Total Platform business. This year, it purchased the Cath Kidston brand and raised its stake in the upmarket fashion chain Reiss to 72%. Last year, Next bought fashion retailer Joules, furniture brand Made.com, and a minority stake in baby goods retailer JoJo Maman BéBé.
Safestyle UK explores alternatives including sale.
Safestyle UK confirmed it was exploring alternatives, including a potential sale of the company or a capital injection, as it deals with financial woes. The maker of polyvinyl chloride replacement windows said it has engaged Interpath Advisory to assist with the process, adding that a number of different parties had expressed their interest, Reuters reported.
The company earlier this month said it was in talks with stakeholders for funding and was working to achieve alternative financing solutions. The London-listed firm also said it was compliant with covenants of its £7.5m ($9.2m) borrowing facility and that it was renegotiating terms of its revolving credit facility.
Siemens Energy to sell high-voltage component business to Triton. (FS)
German energy development company Siemens Energy is selling Trench, its high-voltage component business, to private equity firm Triton, Reuters reported.
The deal was still subject to approval by labour representatives. The price was in the mid-three-digit million euro range.
Southwind Media eyes the sale its stake in Spain's Mediapro.
Mediapro's main shareholder, Hong Kong-based investor Southwind Media, is exploring a possible sale of its stake in the Spanish sports rights and broadcasting group. Southwind, which owns around 80% of Mediapro, is working with advisers to gauge buyer interest, Reuters reported.
Mediapro, which operates in 31 countries, produces television series and films, such as "The Good Boss," and has the rights to signal broadcasting for events like the Champions League final. It also provides audiovisual services. Deliberations are at an early stage, and there is no certainty that a sale will proceed.
PIF-backed ADES jumps 30% after the year's biggest Saudi IPO. (FS)
Shares in oil driller ADES jumped as much as 30% in Riyadh after the kingdom's largest initial public offering this year, even as the ongoing conflict between Israel and Hamas roiled markets, Bloomberg reported.
ADES, backed by the kingdom's sovereign wealth fund, rose as high as $4.68, up from the offering price of $3.60, which was at the top of the range. The 30% gain is the maximum allowed for newly-listed stocks. The company drew orders of almost $77bn from institutional investors for its $1.2bn offering, showing demand for share sales in the kingdom is strong.
APAC
Big Tree Cloud, a company devoted to the development, production and sales of personal care products and other consumer goods, agreed to go public via a SPAC merger with Plutonian Acquisition, a publicly traded special purpose acquisition company, in a $500m deal.
"We are excited to complete this business combination between Plutonian and Big Tree Cloud. The Plutonian team is honored to be part of this landmark occasion. The entire exceptional management team at Big Tree Cloud continues to execute on their robust growth plans and strategy, with multiple compelling dynamics in the consumer goods industry, we firmly believe that Big Tree Cloud as a public company has the right model and technology to leverage its experience and platform to create shareholder value," Wei Kwang Ng, Plutonian CEO.
Big Tree Cloud is advised by Commerce & Finance Law Offices, Maples Group and Paul Hastings. Plutonian is advised by Global Law Office and Wilson Sonsini Goodrich & Rosati.
EQT, a global investment organization, agreed to acquire VetPartners, a provider of veterinary services, from National Veterinary Associates, a global pet care organization. Financial terms were not disclosed.
"We are delighted to welcome EQT as a partner given their strong global track record in animal health and healthcare more broadly. Together, we will continue to be an advocate for the advancement of the veterinary profession, fostering a collegiate community of professionals delivering the highest-quality healthcare services to pet parents in the region with a common mission to improve the comfort and well-being of animals," Mark Jeffery, VetPartners CEO.
EQT is advised by Domestique.
Aster’s India unit draws suitors valuing the business at $1.5bn. (FS)
Private equity firm BPEA EQT and Ontario Teachers’ Pension Plan Board are among the firms considering a deal to acquire Aster DM Healthcare assets, including its India business, Bloomberg reported.
BPEA EQT and OTPP have expressed preliminary interest in the hospital operator’s business in the South Asian nation. A deal would help the investors tap into the growth potential of health-care services in the country. Others interested in potential bids for Aster’s India business include Blackstone and KKR. Prospective acquirers could decide to team up, and deal considerations could also lead to other transactions, including a full takeover of the company.
China's sovereign wealth fund buys shares in big four banks. (FS)
China’s sovereign wealth fund snapped up shares in the nation’s Big Four lenders and said it plans to continue the purchases, a move apparently aimed at boosting the stocks, Bloomberg reported.
State-owned Central Huijin Investment said in filings to the Shanghai stock exchange on October 11 night that it raised its stakes in Bank of China, Agricultural Bank of China, China Construction Bank, and Industrial and Commercial Bank of China. It added that it would continue the purchases over the next six months, without saying to what extent.
Australian tycoon Rinehart increases stake in Liontown to 19.9%.
Australia's richest woman, Gina Rinehart, has stepped up her buying spree in Liontown Resources to accumulate a total stake of 19.9%, close to the 20% threshold that would normally trigger a mandatory takeover offer, Bloomberg reported.
Rinehart's privately-held Hancock Prospecting paid no more than $1.9 a share for its latest slice of the junior lithium miner, according to the company's statement on October 10. It previously held an 18.36% stake.
Codelco is said to be near a buyout of Australia's Lithium Power.
Codelco, the world's biggest copper producer, is nearing a deal to acquire Lithium Power International that could value the Sydney-listed firm at nearly $202m, Bloomberg reported.
The Chilean state-owned firm is in advanced discussions to buy out Lithium Power at about $0.3 per share, representing a 43% premium to its October 11 closing price. The companies are working on finalizing a deal.
Blackstone holds preliminary talks to buy stake in Disney's India arm. (FS)
Private equity firm Blackstone has held preliminary discussions with Walt Disney to acquire a stake in the Indian arm of the entertainment firm, DealStreetAsia reported.
Blackstone is the latest suitor for Disney’s assets in the hyper competitive Indian market, where it has been exploring a sale or a joint venture partner for the digital and TV business. Blackstone-backed US media firm Candle Media, founded by former Disney executives, led conversations between the two parties last week.
Indonesia's J&T Global Express aims to launch $500m Hong Kong IPO on October 16.
Indonesian courier services startup J&T Global Express is aiming to launch its Hong Kong initial public offering on October 16 to raise $500m in the city’s second-largest new share sale in 2023, DealStreetAsia reported.
The company had earlier aimed to raise at least $1bn via a Hong Kong IPO in the second half of 2023. It is not immediately clear what valuation J&T is targeting in its IPO. The company raised $2.5bn at a valuation of $20bn in 2021 from investors.
Citigroup Australia chief expects more IPOs with policy clarity.
Clearer messaging on central bank policy in the coming months will boost the market for initial public offerings in 2024 as confidence for companies and investors builds, according to Citigroup's head of Australia and New Zealand, Bloomberg reported.
“We certainly see a pickup in IPO activity into next year. If we look forward into 2024, if we get greater clarity around being toward the top end of the monetary policy cycle, the confidence will come back into the IPO market,” Mark Woodruff, Citigroup Head of Australia & New Zealand.
Malaysian PE firm Creador targets $800m for sixth flagship fund. (FS)
Malaysia-headquartered private equity firm Creador is reportedly preparing to hit the market to raise as much as $800m for its sixth flagship fund, DealStreetAsia reported.
According to a Private Equity International report on October 10, the PE firm will launch Creador VI early next year with a $750-800m target, which is above the $700m it raised for Creador V, which closed in December 2022. Creador VI will continue to focus on Southeast Asia and South Asia growth opportunities.
Barclays Asia Pacific, head of ECM Teo, leaving the firm. (People)
Kelvin Teo, Barclays head of equity capital markets for Asia Pacific, is departing from the firm after almost three years, Bloomberg reported.
Wei Lynn Chen, who helms the bank's sustainability and impact investment banking team in the region, is also leaving. The departures come as Barclays plans to dismiss about 3% of the total headcount in the corporate and investment banking unit. The lender is joining its peers, including Goldman Sachs Group and Citigroup, in reducing staff globally, given a prolonged slump in dealmaking and capital markets activity.
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