AMERICAS
CVC Capital Partners agreed to acquire a majority stake in WebPros Group, a provider of web hosting automation software, from Oakley Capital for £200m ($263m).
"WebPros brings critical automation and security tools to hosting providers, web agencies and their customers. We look forward to partnering with Oakley Capital and working closely with the management team to continue building the leading global SaaS hosting platform for server management," Leif Lindback, CVC Senior Managing Director.
WebPros Group is advised by Arma Partners. CVC is advised by Freshfields Bruckhaus Deringer, and Maitland. Oakley is advised by Liberum Capital, CMS, Kirkland & Ellis, and Greenbrook.
OceanFirst secured all regulatory and shareholders’ approvals for the merger with Two River, a Tinton Falls, New Jersey bank, and Country Bank Holding, a New York State-chartered commercial bank. Both the acquisitions are now expected to close on or about 1 January 2020.
"We believe the addition of these two high-performing franchises will further leverage the significant investments we have made in people, processes, and technology and positively impact our earnings potential. We look forward to continuing to provide our customers with extraordinary service and deliver enhanced value to our stockholders," Christopher Maher, OceanFirst Chairman, and CEO.
Country Bank Holding is advised by Sandler O'Neill + Partners, and Luse Gorman. Two River is advised by Boenning & Scattergood, and Stevens & Lee. OceanFirst is advised by Piper Jaffray, and Skadden Arps Slate Meagher & Flom.
Australia’s competition watchdog initiated an inquiry into the proposed merger of US-based publishers Cengage Learning and McGraw-Hill Education. The Australian Competition and Consumer Commission raised “preliminary competition concerns” about the betrothal of the global publishers, both of which have local subsidiaries and are “significant players in the publishing of Australian higher education resources”.
“This proposed deal involves the merger of two of the four biggest publishers in higher education worldwide. This may result in higher prices, reduced quality, or a more limited product range for students in Australia,” Stephen Ridgeway ACCC commissioner.
Cengage is advised by Freshfields Bruckhaus Deringer and Wachtell Lipton Rosen & Katz. McGraw-Hill is advised by Morgan Lewis & Bockius, Paul Weiss Rifkind Wharton & Garrison and Edelman.
Constellation Brands withdrew some brands, including Cook’s California, from its deal with E&J Gallo Winery after regulatory concerns, reducing the deal value by about $600m.
The deal price has now been revised down to about $1.1bn, of which $250m is an earnout based on divested brands’ performance over a two-year period, Reuters reported.
“We continue to focus our total portfolio to align with consumer-led premiumization trends and growing segments of the market,” Bill Newlands, Constellation Chief Executive.
E&J Gallo Winery is advised by Skadden Arps Slate Meagher & Flom. Constellation is advised by Bank of America Merrill Lynch and Goldman Sachs.
Brazilian antitrust body Conselho Administrativo de Defesa Economica approved the acquisition of 70% stake in Nextel Brazil, a telecommunication service provider, by America Movil, a Mexican telecommunications corporation, for $905m.
America Movil is advised by Cleary Gottlieb Steen & Hamilton. NII Holdings is advised by Greenhill & Co, Rothschild & Co, Hogan Lovells, and Jones Day.
Altaris Capital Partners, agreed to acquire a drug delivery business of 3M, an American multinational conglomerate, for c. $650m.
“The drug delivery business is a leading provider of transdermal and inhalation delivery technologies. This transaction will allow us to focus more resources on our core health care business as well as retain a share in the value of the drug delivery business as it grows over the coming years,” Michael Roman, 3M Chairman, and CEO.
3M is advised by Morgan Stanley and Cleary Gottlieb Steen & Hamilton. Altaris is advised by Schiff Hardin.
OFG received regulatory approval from the Board of Governors of the Federal Reserve System, Federal Deposit Insurance, and the Office of the Commissioner of Financial Institutions of Puerto Rico for the acquisition of Puerto Rico and Virgin Islands operations of Scotiabank by its subsidiary Oriental Bank.
OFG expects to complete the acquisition by December 31, 2019. Upon closing and for a transitional period, Oriental will continue using the Scotiabank technology platforms.
“We are combining two excellent franchises to create a strongly capitalized, market-leading institution. We’re excited about welcoming Scotia’s valued customers and talented team into the Oriental family,” Jose Rafael Fernandez, OFG President, Chief Executive Officer, and Vice Chairman.
OFG is advised by Skadden Arps Slate Meagher & Flom. Scotiabank is advised by Credit Suisse, and Sullivan & Cromwell.
RealPage, a global provider of software and data analytics to the real estate industry, agreed to acquire Investor Management Services, which provides an investor relationship management platform with an investor dashboard, an investor portal to manage investor relations, and a comprehensive waterfall engine for distributions. Financial terms were not disclosed.
The combination of IMS with the RealPage AIM platform will service nearly 600 general partners supporting nearly 90k limited partners. Upon completion of the acquisition, RealPage plans to incorporate IMS into AIM and market a fully integrated asset & investment management platform to drive improved return on investment by providing 360-degree data visualization, performance monitoring, benchmarking and valuations across the entire investment lifecycle.
IMS is advised by Software Equity Group. RealPage is advised by Weil Gotshal and Manges.
Invesco, a global independent investment management firm, agreed to acquire RedBlack, a portfolio rebalancing and trading technology company. Financial terms were not disclosed.
“Invesco has a long history of providing advisors with the tools and digital solutions they need to help their clients achieve their investment objectives through a broad range of active, passive, and alternative capabilities. The addition of RedBlack demonstrates our commitment to continuously strengthening our global digital platform, further enhancing the solutions we offer to meet the evolving needs of advisors, our clients, and the industry,” Martin L. Flanagan, Invesco President and CEO.
RedBlack is advised by Broadhaven Capital Partners.
Wheels Up, a private aviation company, agreed to acquire Delta Private Jets, a wholly-owned subsidiary of Delta, which provides aircraft charter services, aircraft management, and its distinctive membership programs, from Delta Air Lines, the US global airline. Financial terms are not disclosed. The transaction is subject to customary closing conditions and required governmental and regulatory approvals.
“This groundbreaking partnership will democratize private aviation – making the convenience of private jet travel accessible to more consumers. Wheels Up’s lifestyle experiences and innovative digital platform, combined with the scale and service of Delta Private Jets, helps further Delta’s mission of connecting people and communities worldwide through travel. This agreement is the latest step in Delta’s ongoing effort to build partnerships that extend Delta’s brand beyond its core business,” Ed Bastian Delta CEO.
Wheels Up is advised by JONESWORKS.
Warner Music Group and Providence Equity Partners, a private equity firm, are set to invest $650m in a newly established platform, Tempo Music Investments. WMG will handle administration for music publishing and distribution for recorded music, drawing on its vast, deep-rooted music industry expertise, resources, and network.
“It is a privilege to partner again with Warner Music Group. We are excited about this innovative new relationship, which combines Providence’s investment expertise in media with WMG’s distinctive skill in working with and recognizing top artists and assets in music. We look forward to partnering with WMG and our investment management team to support creators and build a best-in-class portfolio of music assets,” Josh Empson, Providence Managing Director.
Nomura Holdings, an investment bank, is set to acquire Greentech Capital Advisors, a boutique investment banking and advisory services provider. Financial terms were not disclosed.
The transaction is expected to close on March 31, 2020, subject to certain conditions, including relevant regulatory approvals. Post-acquisition, Greentech will be rebranded as Nomura Greentech and form part of Nomura’s Americas Investment Banking franchise.
“By partnering with Nomura, we remain committed to helping our global clients accelerate their growth and profitability, while simultaneously offering them a full suite of product capabilities across geographies in order to address their needs better,” Jeff McDermott, Greentech Founder, and Managing Partner.
Amfil Technologies-backed Snakes & Lattes, a board game retailer, is set to acquire Starlit Citadel Logistics, the fulfillment operation of Starlit Citadel, a board game retailer. Financial terms were not disclosed.
This acquisition will be completed for a total of 1.2m shares of restricted stock and is expected to add significant value to the business and company.
“We are very pleased to have closed this deal with the nice people behind Starlit Citadel and look forward to a continued relationship moving forward that now adds a west coast operation in Canada to the fulfillment side of the Snakes & Lattes business, ” Ben Castanie, Snakes & Lattes Founder.
Fleet Complete, an IoT solutions provider, is set to acquire Centro de Soluciones Inalambricas, a telematics solutions provider. Financial terms were not disclosed.
"The combination of Fleet Complete and CSI combines outstanding products, state-of-the-art technology and complementary marketing capabilities. We are excited to be part of the Fleet Complete team and look forward to excel together," Emilio Blanco del Villar, CSI CEO.
SC Johnson, a manufacturer of household consumer brands, completed the acquisition of Stasher, a manufacturer of reusable silicone storage bags. Financial terms were not disclosed.
"We are beyond excited for Stasher to be joining SC Johnson. We at Stasher have been leading a movement by providing a durable, reusable alternative to single-use plastic bags, and through this acquisition, we can now scale our mission beyond our reach," Kat Nouri, Stasher Founder.
iNSERViO3, a provider of legal support services, completed the acquisition of IVAMS Arbitration & Mediation Services, an alternative dispute resolution firm. Financial terms were not disclosed.
"The entire IVAMS team is thrilled to be joining iNSERViO3. This acquisition ensures our ability to continue providing excellent customer service and support as well as an additional expanded suite of legal services," Peter Eggertsen, IVAMS President.
Nuvei, a global payment technology provider, completed a $270m common equity financing, valuing the company at $2bn. The investment comes primarily from Nuvei’s existing shareholders: Canadian private equity firm Novacap, supported by some of its key limited partners, and Caisse de dépôt et placement du Québec. This financing allows Nuvei to further bolster both its organic and acquisition growth plans.
“Our partnership continues ahead to support the global expansion of a leading Quebec tech firm,” Charles Émond, CDPQ executive vice-president, Québec, private equity and strategic planning.
Liberty Media seeks to increase stake in iHeartMedia.
An affiliate of John Malone’s Liberty Media is seeking Justice Department permission to buy a larger piece of iHeartMedia, a deal that would put the nation’s largest radio broadcaster under the same corporate umbrella as concert promoter and satellite-radio giant SiriusXM, WSJ reported.
Liberty owns a 4.8% stake in iHeart through Liberty SiriusXM Group; the deal now under consideration could give it control or outright ownership of the broadcaster.
WeWork sells Conductor back to its founder.
WeWork completed the disposal of Conductor, a provider of marketing software, to the firms management led by co-founder Seth Besmertnik.
The buyout was partly financed by Besmertnik, along with Selina Eizik, the chief operating officer at Conductor, and Jason Finger.
Francisco and Elliott looking to buy LogMeIn. (FS)
Private equity firm Francisco Partners Management partnered with hedge fund Elliott Management in a bid to take workplace software provider LogMeln private for more than $4bn, Bloomberg reported.
The firms are in advanced discussions to acquire LogMein and could announce a deal in the coming weeks.
CapStreet Group closes $500m Fund V. (FS)
The CapStreet Group, a Houston, Texas-based private equity firm that invests in privately held, lower middle-market companies, held the final closing of CapStreet V, at its hard cap, with total commitments of $500m. CapStreet V exceeded its original target of $400m with commitments from a diverse group of existing and new investors.
"CapStreet V will continue its existing strategy of recapitalising entrepreneur and family-owned businesses where there is a defined strategy to accelerate growth through operating initiatives, technology enhancement and strategic M&A,” George Kelly, CapStreet Managing Partner.
EMEA
Fiat Chrysler Automobiles and Peugeot maker PSA Group are aiming to sign a formal agreement next week to combine into the world's fourth-biggest car manufacturer, Bloomberg reported.
Progress is being made on the memorandum of understanding even though some outstanding issues still have to be resolved.
FCA is advised by Goldman Sachs, d'Angelin & Co, Community Group, Image Sept, Sard Verbinnen & Co. BPIFrance is advised by Willkie Farr & Gallagher. Peugeot is advised by Zaoui & Co. PSA is advised by Messier Maris & Associes, Morgan Stanley, and Perella Weinberg Partners. Exor is advised by Lazard.
Ardian is set to acquire a minority stake in Nutripack Group, a food packaging manufacturer from Credit Mutuel, a private equity firm. Financial terms were not disclosed.
“We are looking forward to working with the company. Philippe Berthe has a visionary approach by adopting a greener approach and therefore transforming the company. We intend to work hand in hand with the management and the R&D team to support this global transformation and go further in the industrial optimization," Alexis Lavaillote, Ardian Managing Director.
Ardian is advised by BNP Paribas, Banque Populaire du Nord, Credit Agricole, Credit Lyonnais, Societe Generale, Advancy, Banque Palatine, Alvarez & Marsal, Indefi, Satec, Allen & Overy, and Headland Consultancy. Credit Mutuel is advised by Natixis Partners, and De Pardieu Brocas Maffei.
One Equity Partners, a middle-market private equity firm, completed its investment in Nexion, an automotive solutions business, focused on garage equipment, diagnostics, and advanced driver assistance systems aftermarket solutions. Financial terms were not disclosed.
"A partnership with OEP positions Nexion for its next phase of growth. Over its 65-plus year history, Nexion has developed a track record of introducing market-leading products and acquiring and integrating strategic brands. With OEP as our new partner, we can accelerate our organic and inorganic growth trajectory in our traditional garage equipment products, as well as our new ADAS offerings," Giulio Corghi, Nexion Chairman.
Nexion was advised by Kaleidos Corporate Finance, Chiomenti and Studio Morandi. One Equity Partners is advised by Banca Akros, Banco BPM, Eidos Partners, Freshfields Bruckhaus Deringer, Stanton PRM and FRM Tax.
Columbian regulator Agencia Nacional de Hydrocarburos approved the £242m ($318m) acquisition of Amerisur Resources by GeoPark. The acquisition still needs approval from Amerisur's shareholders, who will be meeting on December 19 to vote.
Amerisur is advised by Arden Partners, Investec, Stifel, BMO Capital Markets, Ashurst, Rosenblatt Law, and Camarco. GeoPark is advised by Rothschild & Co, and Norton Rose Fulbright.
Var Energi, a Norwegian upstream company, completed its acquisition of the Norway upstream operations from ExxonMobil, an international oil and gas company, for $4.5bn.
“The ExxonMobil portfolio is a perfect match for our ambitions and business strategy. It reinforces our long-term commitment to further develop the NCS. Our portfolio is strengthened, and we will continue to further explore, develop and produce resources and reserves in a profitable and sustainable manner," Kristin Kragseth, Var Energi CEO.
Var Energi was advised by BNP Paribas, Goldman Sachs, and Thommessen. ExxonMobil was advised by Jefferies & Company, and Schjodt. BNP Paribas provided debt financing.
AXA Investment Managers, an investment management company, completed the acquisition of a 75% stake in Italie Deux, a large shopping centre in Paris, from Hammerson, a major British property development and investment company, for $525m.
“These transactions provide us with an almost unique opportunity to secure access to two prime central Paris retail destinations, on behalf of clients, both of which would otherwise rarely come to market. Both the Italie Deux shopping center and the ‘Passage du Havre’ retail-led mixed-use asset benefit from superb central locations, high footfall, and offer opportunities to create value, including leasing vacant space.” Antoine Mesnage, Head of Acquisitions France AXA IM.
AXA was advised by De Pardieu Brocas Maffei. Hammerson was advised by Herbert Smith Freehills and FTI Consulting.
Leonard Green and Partners-backed PureGym, Britain’s biggest health and fitness club operator, agreed to acquire Fitness World, a Danish fitness chain, for £350m ($460m). This deal will give PureGym a significant scale in Continental Europe and rapidly accelerate its international expansion.
"This transaction brings together two well-matched, successful market-leading businesses, and the combination creates a powerful platform from which to accelerate growth and deliver on our purpose of getting even more people, more active, more often” Humphrey Cobbold, PureGym Chief Executive Officer.
PureGym is advised by Teneo.
Centric, which operates as a holding company, agreed to acquire Administratie Groep Holland, a pension administrator. Financial terms were not disclosed.
“An acquisition fits in with the growth strategy of Centric PaIS. By expanding the organization, we are working on our goal to be an important player for pension funds - for now and in the future,” Marianne de Boer, Centric Managing Director.
Waymo, which operates as an autonomous vehicle development company, agreed to acquire Latent Logic, a UK company that spun out of Oxford University’s computer science department. Financial terms were not disclosed.
“By joining Waymo, we are taking a big leap towards realizing our ambition of safe, self-driving vehicles. In just two years, we have made significant progress in using imitation learning to simulate real human behaviors on the road. I’m excited by what we can now achieve in combining this expertise with the talent, resources, and progress Waymo has already made in self-driving technology,” Shimon Whiteson, Latent Logic co-founder and chief scientist.
Appello, the UK’s largest telecare monitoring provider, agreed to acquire Medvivo Careline, the telecare and out of hours call monitoring service business, from Medvivo Group. Financial terms were not disclosed.
“Medvivo Careline have delivered quality service for their customers for many years and we look forward to continuing that tradition. We felt a strong synergy because of our respective emphasis on service excellence and were attracted by their diverse customer base – from supported residential developments to individuals living in their own homes in the community. The acquisition represents the continuation of our ambitious growth strategy and reinforces our position as the leading provider in the UK of both telecare monitoring and digital telecare services,” Tim Barclay, Appello CEO.
Radius Payment Solutions, a payment and fleet services company, completed the acquisition of Reliance Networks, a telecommunications service provider. Financial terms were not disclosed.
“Reliance is a really good fit for our growing telecoms business as it has some unique technical capacities that will complement those of the other companies that have recently joined this division. This marks the seventh deal we have completed in the last seven weeks, three of which have been in Telecoms, and I’d really like to thank both the Radius teams and our advisers for all their hard work that has helped make this possible,” Bill Holmes, Radius CEO.
Qualitest, a managed services provider of quality assurance and testing solutions, completed the acquisition of AlgoTrace, a data science company. Financial terms were not disclosed.
"We are thrilled to be joining with Qualitest. Following successful implementations with the company in the past, we have complete faith that we will help Qualitest change the testing paradigm forever – enhancing their quality engineering with machine learning," Ron Ritter, AlgoTrace CEO.
Gryphon-backed Jensen Hughes, a provider of safety, security and risk-based engineering and consulting, agreed to acquire IFIC Forensics, the UK- and Ireland-based forensics firm specializing in fire, explosion, chemical spill, and water escape investigations across marine and other commercial industries. Financial terms were not disclosed.
"Professor James Lygate and his IFIC team have built an incredible business through a network of experts and client service. We are honored to have them join our team. World-class specialists like this team help us support our clients' fire and life safety requirements wherever they operate in the world with integrated, end-to-end solutions," Raj Arora, Jensen Hughes CEO.
Saudi Aramco hits Crown Prince's $2tn goal valuation.
Saudi Aramco hit the $2tn target sought by Saudi leader Crown Prince Mohammed bin Salman as its shares racked up the second day of gains, despite some skepticism about the state-owned oil firm's value.
Aramco's IPO is the centerpiece of the Saudi crown prince's vision for diversifying the kingdom away from its oil dependence by using the $25.6bn raised to develop other industries. Aramco shares hit $10.32, lifting its market value above $2tn.
Saudi Aramco is poised to pay a combined $64m to the banks that arranged the world’s largest initial public offering.
Partners Group considers acquiring packaging maker Schur Flexibles. (FS)
Swiss buyout firm Partners Group entered exclusive talks to buy Austrian packaging maker Schur Flexibles from fellow private equity investor Lindsay Goldberg Vogel, Reuters reported.
Partners is expected to sign a deal early next year, which is expected to value the maker of packaging for food, pharmaceuticals, tobacco products, cosmetic and hygiene items at $716-$827m.
Signature Capital and PGIM Real Estate to acquire Berlin Arrow Portfolio. (FS, RE)
Signature Capital and PGIM Real Estate acquired the Arrow Portfolio in Berlin from Patrizia in a share deal. The portfolio comprises four office properties in Berlin’s central districts of Mitte and Kreuzberg, with a total area of circa 32k square metres, as well as an additional fully permitted development of circa 8.5k square metres. The properties in Mitte, one of Berlin’s most desired office and retail locations, are former senior living residences which will be converted into top-grade new office space.
“The investment provided by our European value-add debt strategy for this successful acquisition demonstrates our commitment to capitalise on the strong economics and employment growth in Berlin and other German office markets on behalf of our investors,” Andrew Macland, PGIM Real Estate head of European debt.
EverArc raised $340m for new acquisition vehicle. (FS)
Britt Cool teamed up with US private-equity veteran Will Thorndike of Housatonic Partners and aerospace chief Nicholas Howley from TransDigm to launch EverArc, a shell company listing on the main market of the LSE. EverArc raised $340m for a new acquisitions vehicle floating in London.
The EverArc listing was hoping to raise $300m but demand led the offer to be increased. The founders will plug in $15m of their own cash and the other $325m has come from institutional investors. Shares start trading December 17. It is the largest listing of a special purpose acquisition vehicle in London in three years.
APAC
New Frontier, a publicly traded special purpose acquisition company, announced that its shareholders approved a business combination with United Family Healthcare, an international-standard healthcare organization, to form New Frontier Health.
In connection with the closing, NFC will change its name to New Frontier Health, and its ordinary shares and warrants will continue to be listed on the New York Stock Exchange.
“We believe China healthcare represents an unprecedented opportunity. We are excited to work closely with the management team of NFH/UFH to continue the next chapter of the growth of the company,” Antony Leung, New Frontier Group and NFC Co-Founder and Chairman.
Hughes Hubbard & Reed is advising United Family Healthcare. Credit Suisse, UBS, Global Law Office, Kirkland & Ellis, Simpson Thacher & Bartlett and Winston & Strawn are advising New Frontier. Paul Hastings is advising Fosun. Fangda Partners and Cleary Gottlieb Steen & Hamilton are advising TPG.
Bangkok Bank, a commercial bank, is set to acquire an 89% stake in Permata, an Indonesian bank, from Standard Chartered and PT Astra International, a general trading company, for $2.7bn. Completion of the transaction is subject to certain conditions including approvals by the shareholders of Bangkok Bank and the receipt of the applicable regulatory approvals in Indonesia and Thailand, which we hope to achieve by the end of 2020.
“The sale of our stake in Permata will allow us to focus on our wholly-owned business in the large and strategically important Indonesian market; and will release capital for reinvestment or return to shareholders. This transaction further demonstrates our focus on executing the refreshed strategic priorities we announced earlier this year,” Bill Winters, Standard Chartered CEO.
Bangkok Bank is advised by Morgan Stanley and Ogilvy. Standard Chartered and Astra is advised by JP Morgan.
SoftBank-backed OneConnect cuts IPO by 28%, lowering target valuation. (FS)
Ping An Insurance’s OneConnect Financial Technology downsized its planned US initial public offering by 28% and lowered its target valuation, dealing yet another blow to its investor SoftBank, which is still reeling from the fallout of WeWork’s failed listing.
OneConnect set a price range of $9 to $10 per share for its initial public offering of 26m shares, down from the $12 to $14 per share range it had set earlier.
Haier Smart Home plans Hong Kong IPO to take $7.7bn unit private.
Haier, the world’s biggest maker of household appliances, is planning a major restructuring that will see its main unit Haier Smart Home list in Hong Kong to take another group company valued at $7.7bn private, Reuters reported.
Under the deal, Haier Smart Home, formerly known as Qingdao Haier and already listed in Shanghai, would offer minority shareholders in-unit Haier Electronics Group newly issued Hong Kong stock for their shares. Haier Electronics, which makes and sells appliances such as washing machines, held about $2.8bn in cash and short term investments.
Citi and Credit Suisse drop out of Ucommune's US IPO.
Citigroup and Credit Suisse dropped out of the US IPO of Chinese shared workspace provider Ucommune, baulking at its desired valuation, Reuters reported.
Earlier filings had named Citi and Credit Suisse, but both walked away over the past few days because they could not agree an achievable valuation with Ucommune.
Ucommune’s latest filing with the US Securities and Exchange Commission list Chinese banks Haitong International and China Renaissance as leading the planned IPO.
Ichigo considers acquiring a 50% stake in Japan Display.
Japanese asset manager Ichigo Asset Management is likely to take a nearly 50% stake in Japan Display when it invests in the struggling Apple supplier, Reuters reported.
Japan Display announced it plans to receive $740m to $830m in financial support from Ichigo, but gave no further details. If Japan Display chooses to receive the maximum stake, Ichigo’s ownership will exceed 50%.
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