AMERICAS
Australian buy-now-pay-later firm Zip dropped its plan to buy out US rival Sezzle, the companies said on Tuesday, adding to the list of fallen deals as rising interest rates hurt consumer finance firms.
As part of terminating the deal, which is effective immediately, Sezzle would receive $11m from Zip, the companies added in a joint statement.
Crestwood Equity Partners, a private equity firm, completed the acquisition of Sendero Midstream Partners, an oil and gas company, for $600m.
The Sendero Midstream transaction provides a natural catalyst to execute Crestwood's stated objective to consolidate First Reserve's 50% equity interest of CPJV, which enhances scale and removes the structural complexity of the joint venture in Crestwood's asset portfolio.
Sendero Midstream Partners was advised by Morgan Stanley and Latham & Watkins. Crestwood Equity Partners was advised by Citigroup, RBC Capital Markets, Locke Lord and Vinson & Elkins.
Falcon's Beyond, a fully integrated global entertainment development company specializing in intellectual property creation and expansion, agreed to go public via merger with FAST Acquisition II, a special purpose acquisition company, in a $1bn deal.
"FAST II was built to identify and accelerate the growth of an exceptional company – we believe we have found that in Falcon's Beyond and its best-in-class management team. The extraordinary and wide-reaching breadth of its IP and brick-and-mortar opportunities, ideal unit economics and significant opportunity for expansion offers an exciting platform for growth in the entertainment category. Scott and Cecil both have tremendous experience and expertise in the space, and we believe that the Company is poised for rapid growth and will continue to lead experiential entertainment development and IP expansion. We are so pleased to be able to play an important role in guiding Falcon's Beyond on its path to becoming a publicly-traded company," Doug Jacob, FAST II Founder.
Falcon's Beyond is advised by Guggenheim Partners, White & Case and ICR. FAST II is advised by Jefferies & Company and Gibson Dunn & Crutcher. Jefferies & Company is advised by Paul Hastings.
Blue Sage Capital, an Austin, Texas-based private equity firm, completed the investment in Baker Manufacturing Company, a provider of residential, industrial, municipal, and environmental water well equipment and accessories. Financial terms were not disclosed.
"Our partnership with Blue Sage Capital represents an exciting inflection point in Baker's history. We are looking forward to working alongside the Blue Sage team to continue to launch new water systems and pump products, expand into new geographies, pursue strategic acquisitions, and invest in our business," Don Wesdell, Baker President and CEO.
Baker Manufacturing Company was advised by Kroll and McDermott Will & Emery. Blue Sage Capital was advised by Cherry Bekaert, USI Insurance Services and Queen Saenz + Schutz.
Partners Group, a global private markets firm, completed the investment in Budderfly, a revolutionary energy management solutions provider. Financial terms were not disclosed.
"We have tracked the energy efficiency sector as part of our thematic focus on decarbonization and sustainability. Companies now face unprecedented scrutiny and pressure from investors, policymakers, and other stakeholders to take tangible action to deliver on climate goals, so the synergy between Budderfly's market-leading position and unique business model combined with Partners Group's focus on platform-building in thematic infrastructure comes at an opportune time. We look forward to working with Al and his team on scaling the business further," Todd Bright, Partners Group Partner and Head Private Infrastructure Americas.
Budderfly was advised by Guggenheim Partners, Shasta Partners and Dentons. Partners Group was advised by Latham & Watkins.
Audax Group backed-FDH AERO, an independent aerospace & defense supply chain solutions provider, completed the acquisition of Electro Enterprises, a supply chain partner to aerospace and defense OEMs across the globe. Financial terms were not disclosed.
“We are excited to partner with Scott and the FDH organization. Access to FDH’s global operations and infrastructure will expand our ability to provide quality support to our customers and enhance our growth trajectory. Together with FDH, we will be one of the largest, independent, full-line aerospace and defense component distribution businesses in the industry,” Mitch Enright, Electro President.
FDH AERO was advised by Kirkland & Ellis and Holland & Knight. Electro Enterprises was advised by Phillips Murrah.
Vertex, an American biopharmaceutical company, agreed to acquire ViaCyte, a privately held biotechnology company focused on delivering novel stem cell-derived cell replacement therapies as a functional cure for type 1 diabetes, for $320m.
"ViaCyte's commitment to finding a functional cure for T1D is shared by Vertex, and this acquisition will allow Vertex to deploy ViaCyte's tools, technologies and assets toward the development of Vertex's multiple cell replacement therapy approaches designed to reduce the burden of millions of people living with T1D worldwide," Michael Yang, ViaCyte President and CEO.
Purdue Research Foundation, a commercial organization, agreed to acquire a 67% stake in Aspire at Discovery Park from Balfour Beatty, the international infrastructure group, for $150m.
The disposal proceeds are in excess of the Balfour Beatty Directors' valuation as of 31 December 2021, consistent with Balfour Beatty's strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities.
Ackman’s record SPAC to return funds after deal hunt fizzled. (FS)
Billionaire investor Bill Ackman told investors in the largest-ever blank-check company that it’s returning their $4bn after failing to consummate a merger deal, Bloomberg reported.
Pershing Square Tontine Holdings’ efforts to find a target company were thwarted in part by what Ackman said was the unexpected recovery of capital markets during the coronavirus pandemic.
Kanin Energy enters agreement with Tallgrass to develop waste heat to power clean energy projects.
Tallgrass and Kanin Energy announced a joint effort to develop four waste heat to power clean energy projects. Once developed, the WHP projects will have an installed capacity of more than 48 MW of baseload, carbon-free energy. The projects are a part of Tallgrass’ ongoing efforts to lead in the energy transition.
“Decarbonization is a priority for Tallgrass. We are working hard to identify opportunities to reduce emissions and promote clean power generation and that includes capturing and using heat that is currently wasted to generate electricity. Kanin’s expertise in this space de-risks and expedites the implementation of this project, which allows us to indirectly offset nearly 250k tons of CO2 equivalent a year and provide carbon-free power to local communities where we operate. These are the types of decarbonization opportunities and new investments that we are looking at across our system,” Justin Campbell, Tallgrass Vice President of Power & Transmission.
Sephora partners with commercetools.
commercetools, a provider of digital commerce and inventor of headless commerce, announced that Sephora, the prestige beauty omni-retailer, has selected commercetools as its next-generation commerce solution.
By enlisting commercetools' technology, Sephora is accelerating its digital architecture growth with state-of-the-art MACH (Microservices Based, API-First, Cloud-Native, Headless)-based technology, continuing to provide modern, seamless digital experiences for its customers.
Peloton to exit in-house manufacturing of its bike, tread products.
Exercise equipment maker Peloton Interactive said it will cease in-house production of its bikes and treadmills and move manufacturing to partners in an effort to simplify its operations and reduce costs, Reuters reported.
Once a pandemic darling, Peloton has seen its fortunes plummet following easing Covid-related restrictions and soaring costs that have led to bloated inventories and subscription cancellations.
Largest players drop out of Enel’s Brazilian power distributor sale process.
Major international players have dropped out of the bidding process for a Brazilian power distributor owned by Enel, leaving two local firms competing head-to-head for the asset, Reuters reported.
Equatorial Energia and Energisa were the only companies still interested in Celg-D, which distributes power to the center-west state of Goias in Brazil, after analyzing the firm’s operational details.
Lightspeed raises over $7bn to fund early and growth-stage entrepreneurs. (FS)
Lightspeed Venture Partners announced the closing of Lightspeed Venture Partners XIV-A/B with $1.98bn, Lightspeed Venture Partners Select V with $2.26bn, and Lightspeed Opportunity Fund II with $2.36bn of committed capital. Separately, Lightspeed India Partners announced the closing of a $500m early-stage fund.
"We believe in investing at the earliest stages of innovation, partnering with generational entrepreneurs who have clarity of vision, an insatiable desire to build something enduring, and the conviction and courage to compete and win against all odds. We love to partner with and even incubate companies around core dislocations in the enterprise landscape and to build relationships with prospective entrepreneurs years before they are ready to start building," Arif Janmohamed, Lightspeed Partner.
Kistos, a closed-ended investment company, offered to acquire Serica Energy, a British-based independent upstream oil and gas company, for $1.2bn.
"While Serica has stated that its Board "can see industrial logic in combining the portfolios of the two companies", the Proposed Combination has been rejected by the Board of Serica. Accordingly, this announcement is being made by Kistos to urge Serica shareholders to encourage the Board of Serica to engage in constructive discussions with the Board of Kistos regarding the Proposed Combination," Kistos.
Serica Energy is advised by Peel Hunt, Rothschild & Co and Vigo Communications. Kistos is advised by Bank of America, Panmure Gordon & Co, Orrick Herrington & Sutcliffe, Camarco and Hawthorn Advisors.
Mubadala, an Emirati state-owned holding company, led a $400m Series D round in wefox, the Berlin-based insurtech, with participation from Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.
"This new valuation of $4.5bn is a clear validation of our business model, which focuses on indirect distribution via agents rather than direct. This makes our business one of the most credible insurtechs in the market right now," Julian Teicke, wefox CEO and Founder.
wefox was advised by Homburger, Berns Communications Group, DAG Communications, Faith Haydin and Trescom PR.
SDCL Energy Efficiency Income Trust, a large British investment company dedicated to investments in energy efficiency projects, agreed to acquire the non-appointed renewable energy business of United Utilities, a water supply company, for £100m ($119m).
"We are committed to our ambitious carbon pledges and target of achieving net zero carbon emissions by 2030. A key part of setting the foundations for that goal has been our renewable energy portfolio that, in recent years, we have built across our UU sites. With the portfolio now fully built-out and operating well, we are excited about the opportunity to recycle our investment in these assets to support the next steps in our plans to achieve net zero," Steve Mogford, UU CEO.
SDCL Energy Efficiency Income Trust is advised by Jefferies & Company and TB Cardew.
Mortgage Advice Bureau, a mortgage network as well as the UK's most recognised intermediary consumer brand, completed the acquisition of The Fluent Money Group, a mortgage broker in Horwich, England, for £73m ($87m).
"We are very excited to partner with a like-minded management team and high growth intermediary that is a leader in centralized telephone mortgage advice," Peter Brodnicki, MAB Founder and CEO.
Mortgage Advice Bureau was advised by Numis Securities and Norton Rose Fulbright.
A group of investors, including Sequoia Capital, Bestseller, Silver Lake, Commonwealth Bank of Australia, Mubadala Investment Company and CPPIB, led an $800m funding round in Klarna, a Swedish fintech company that provides online financial services.
"The shift in Klarna's valuation is entirely due to investors suddenly voting in the opposite manner to the way they voted for the past few years. The irony is that Klarna's business, its position in various markets and its popularity with consumers and merchants are all stronger than at any time since Sequoia first invested in 2010. Eventually, after investors emerge from their bunkers, the stocks of Klarna and other first-rate companies will receive the attention they deserve," Michael Moritz, Sequoia Partner.
Klarna was advised by Goldman Sachs.
LSL and Pollen Street-backed Pivotal Growth, an independent alternative investment management company, agreed to acquire The Buy to Let Broker, one of the largest specialist buy to let mortgage brokers in the UK. Financial terms were not disclosed.
"This acquisition will provide us with specialist expertise in the buy to let market, further building on our existing specialist broking capabilities. Matthew and Matt have built a fantastic business with an excellent reputation, and I am excited to be working with them and their team to continue to deliver first class solutions to landlords," Simon Embley, Pivotal Growth CEO.
LSL is advised by Buchanan.
IK Partners, a private equity firm, agreed to invest in IG&H, a Dutch digital transformation specialist. Financial terms were not disclosed.
"This is an extremely exciting time for IG&H as we continue to build on our market-leading position in digital transformation services and sector solutions. The support of IK, with their deep market expertise and pan-European presence, will allow us to support our clients better and pursue further international expansion and solidify our position in both the Benelux and DACH markets," Jan van Hasenbroek, IG&H CEO.
IK Parters is advised by DC Advisory.
Holcim, a Swiss-based global building materials and aggregates flagship division, completed the acquisition of Teko Mining, a Serbian-based producer of aggregates. Financial terms were not disclosed.
“Teko complements our existing cement and concrete operations perfectly, allowing us to add aggregates and asphalt as part of our integrated offer in this highly dynamic market,” Miljan Gutovic, Holcim regional head for Europe and Middle East Africa.
Joffre Capital seeks financing to gain control of Playtika. (FS)
Joffre Capital, a tech-focused buyout firm started by Chinese dealmakers, is seeking financing to fund a potential bid for control of mobile game developer Playtika Holding, Bloomberg reported.
The investment firm is considering boosting its Playtika stake to become the majority shareholder. It is studying a purchase of Chinese online gaming tycoon Shi Yuzhu’s remaining holding in the firm.
Saipem raises initial $1.4bn in capital increase.
Italy’s Saipem has raised around $1.4bn to stabilise its finances, the energy services group said on Monday, adding that investors subscribed around 70% of the new shares it was issuing in a cash call, Reuters reported.
Last month Saipem launched a $2.1bn hyper-dilutive capital increase, which was open until Monday, as part of a plan to try to get back into the black and refocus its business after a surprise profit warning in January.
Lego terminates contract with Russian store operator, franchisee says.
Lego has terminated its contract with the operator of its 81 stores in Russia, franchisee Inventive Retail Group said on Tuesday, a move that could spell an end to the Danish toymaker’s operations in Russia, Reuters reported.
IRG, which also operates stores of other foreign companies in Russia including Nike and Samsung, confirmed that the contract with Lego had been terminated.
Global Ports terminates sale talks with shipping firm MSC.
Global Ports had terminated talks with Swiss-based MSC Mediterranean Shipping Company which had approached the world’s largest cruise port operator to acquire it, adding it was confident about its strategic direction, Reuters reported.
SAS Shipping Agencies, a unit of MSC confirmed that it does not intend to make an offer for Global Ports, which is owned by Turkish businessman Mehmet Kutman.
Anglo Pacific to buy copper, nickel project royalty from South32.
Natural resources streaming company Anglo Pacific said it would buy a portfolio of royalties with copper and nickel projects from diversified miner South32 for up to $200m, Reuters reported.
“We believe this is an attractive copper and nickel entry point with substantial commodity price upside potential, all the while meeting our disciplined approach to acquisitions and robust sustainability criteria,” Marc Bishop Lafleche, Anglo Pacific CEO.
APAC
Foresight Group, a sustainability-led alternative assets and SME investment manager, agreed to acquire Infrastructure Capital, an Australian specialist infrastructure manager, for $95m.
"Acquiring Infrastructure Capital is a transformational deal for Foresight and well-aligned with our ambitious growth plans. We have been in Australia since 2015 and know that Infrastructure Capital, with its significant infrastructure presence and strong institutional client base, is a highly complementary fit for the Group," Bernard Fairman, Foresight Group Executive Chairman.
Foresight Group is advised by Lazard, Marsh, PricewaterhouseCoopers, Allens, Travers Smith and Citigate Dewe Rogerson. Debt financing is provided by Numis Securities.
Lifecell, an Indian biotechnology company, agreed to merge with MFine, a health tech startup. Financial terms were not disclosed.
"Overall, healthcare delivery is transforming worldwide with the rapid adoption of new technologies such as genomics and digital health. This combination paves the way to create a new market leader that meets the emerging customer expectations," Mayur Abhaya, LifeCell CEO.
KKR eyes over $2.7bn value for MYOB in ANZ talks. (FS)
KKR is seeking a valuation of more than $2.7bn in a potential sale of accounting software business MYOB Group as the buyout firm continues talks with Australia & New Zealand Banking Group, Bloomberg reported.
Discussions between ANZ and KKR are at an advanced stage. The Melbourne-based lender has been in talks for loans to finance the potential transaction.
CBC Group considers taking South Korea’s Hugel private. (FS)
CBC Group is considering taking cosmetic pharmaceutical company Hugel private, less than a year after a consortium it led agreed to buy a controlling stake in the firm, Bloomberg reported.
CBC is in preliminary discussions with advisers to seek financing for a potential transaction. The Singapore-based buyout firm could relist Hugel in Hong Kong, but no final decision has been made.
Billionaires are vying for Metro’s Indian wholesale unit.
Charoen Pokphand Group and Reliance Industries are among suitors for German retailer Metro’s wholesale operations in India as the companies seek to deepen their retail portfolio in one of the world’s largest consumer markets, Bloomberg reported.
The Thai conglomerate controlled by tycoon Dhanin Chearavanont and its Indian counterpart backed by billionaire Mukesh Ambani have submitted non-binding bids. Amazon, whose founder Jeff Bezos is the world’s second-richest man, is also considering lodging an offer.
Rare-earths developer Arafura inks supply deal with GE unit.
Arafura Resources said on Tuesday it will supply neodymium-praseodymium to France-based turbine manufacturing division of General Electric amid a global push to transition to clean energy, Reuters reported.
Under the memorandum of understanding, GE Renewable Energy will purchase NdPr from the miner’s flagship Nolans project in central Australia to manufacture offshore wind turbines.
Rival to Jack Ma’s Ant seeks pre-IPO funding at $3bn value.
LianLian DigiTech, a rival to Jack Ma’s Ant Group, is in talks to raise as much as $223m ahead of an initial public offering in Hong Kong as soon as next year, Bloomberg reported.
The Hangzhou-based startup is working with China International Capital on the financing round. Investment vehicles under the Zhejiang provincial government and a venture arm of China Mobile have expressed interest in participating. The fundraising will likely take LianLian’s valuation to about $2.9bn.
Temasek’s portfolio value hits a record $297bn despite pandemic and global uncertainties.
Despite disruptions caused by the Covid-19 outbreak, Singapore state-owned investment company Temasek’s portfolio value rose to a record SGD403bn ($297bn) on March 31, 2022, the latest performance review showed.
Temasek’s portfolio value in unlisted assets has increased about four times to SGD210bn ($149.6bn) from SGD53bn ($37.8bn) a decade ago. Over the last decade, the unlisted portfolio has generated returns of over 10% per annum.
Alibaba’s Freshippo seeks funds at much lowered $6bn valuation.
Alibaba’s supermarket chain Freshippo is seeking to raise funds at a valuation of about $6bn, much lower than a hoped-for valuation of up to $10bn earlier this year, Reuters reported.
The company had to cut its valuation expectations after China’s Covid-19 restrictions, in particular a draconian lockdown in the economic hub of Shanghai, badly dented business.
Vietnamese e-commerce firm Sendo has raised $57m via convertible loans since 2020.
According to its latest financial statements, Vietnam-based e-commerce firm Sendo has raised about $57m through convertible loans since 2020.
In 2021, the company issued two tranches of convertible notes to investors, including Econtext Asia — a subsidiary of the Japanese payments and e-commerce solutions firm Digital Garage Group — SBI’ SBI E-Vietnam, and subsidiaries of Sendo’s parent firm FPT, a Vietnamese software conglomerate.
Thai Life Insurance raises $1bn in its IPO.
Thai Life Insurance, the first Thai insurance company, raised $1bn from an initial public offering, the largest sale by a Thai firm in more than a year, Bloomberg reported.
The Bangkok-based life insurer and two of its major shareholders sold a combined 2.32bn shares, including a green-shoe option, at 0.44$ each to domestic and international investors, the company said in a statement.
China's Sky9 Capital raised $239m from US investors for latest funds. (FS)
Early-stage Chinese venture capital firm Sky9 Capital has so far raised an aggregate of $239m from US investors for its two new funds, its filings with the US Securities and Exchange Commission showed.
Sky9 Capital, which has been investing in sectors such as consumer internet, enterprise services, and deep technology in China, disclosed raising $179m so far for Sky9 Capital Fund V and $60m for Sky9 Capital MVP Fund II.
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