AMERICAS
Private equity firm Clayton, Dubilier & Rice offered to acquire Anixter International, which supplies communications and security products and electrical and electronic wire and cable, for $3.8bn. Under the terms of the merger agreement, CD&R-managed funds will acquire all of the outstanding shares of Anixter common stock for $81.00 per share in cash. This represents a premium of approximately 13% over Anixter’s closing price on October 29, 2019.
“Anixter is an exceptionally well-positioned industrial distributor with leading market positions and differentiated capabilities that deliver strong customer value. We look forward to partnering with the outstanding management team, led by Bill Galvin, on initiatives to grow the business and further strengthen its competitive position while maintaining Anixter’s distinctive culture grounded in operational excellence, innovation, and an unwavering commitment to the company’s employees, customers, and global partners,” Nate Sleeper, Partner at CD&R.
Centerview Partners, Wells Fargo Securities and Sidley Austin are advising Anixter International. Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, JP Morgan and Debevoise & Plimpton are advising Clayton, Dubilier & Rice. Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and JP Morgan are providing debt financing.
The Carlyle Group agreed to acquire The Hilb Group, a national insurance broker, from private equity firm Abry Partners. Financial terms were not disclosed.
"This investment by Carlyle is a strong endorsement of our growth strategy and represents the next exciting chapter for Hilb. Carlyle's additional capital and resources will significantly benefit our company and associates as we grow our business organically and through targeted M&A opportunities," Richard Spiro, Hilb Chief Executive Officer.
JP Morgan, Sica Fletcher, Kirkland & Ellis and Chris Tofalli are advising Hilb Group and Abry Partners. Latham & Watkins and Simpson Thacher & Bartlett are advising Carlyle. Antares, Barings, Ares Management, Crescent and Owl Rock Capital are providing debt financing.
Daelim Industrial, a petrochemical company, agreed to acquire the Cariflex unit of Kraton, a producer of styrenic block copolymers, specialty polymers and high-value performance products, for $530m.
"Cariflex is a global leader in isoprene rubber latex and this combination will allow us to provide our customers with a wider range of innovative products while adding the ability to serve the medical and other high-end markets," Sang Woo Kim, Vice Chairman and Chief Executive Officer of Daelim.
UBS and Paul Hastings are advising Daelim. JP Morgan and Baker McKenzie are advising Kraton.
Arsenal Capital-backed Accumen, a healthcare transformation company, completed the acquisition of 3DR Laboratories, which provides services to several hospitals, radiology practices, and independent imaging centers. Financial terms were not disclosed.
The addition of 3DR Laboratories to the Accumen portfolio of companies brings expansion to Accumen’s clinical offerings, as well as depth to its imaging transformation offering, which is focused on operational performance in imaging departments and centers across the country bringing meaningful savings, operational efficiencies and improved patient care.
“We are delighted that 3DR Laboratories is joining our Clinical Performance Business Unit and further strengthening our imaging transformation service line. We are very impressed with the high quality and consistency of 3DR’s computed tomography and MRI post-processing work, as well as its strong service-centric reputation which is enabling radiologists to meet even the most urgent patient needs,” Jeff Osborne, Accumen President and CEO.
3DR Laboratories was advised by Edgemont Partners. Accumen was advised by Healthcare Growth Partners and Rana Healthcare Solutions.
Private equity firm AVAIO Capital agreed to acquire Mexico Pacific, a North American Pacific Coast provider of LNG. As part of this transaction, Tortoise Capital Advisors co-invested new capital in the business to fund MPL’s continued development. Financial terms were not disclosed.
“Demand for a Pacific Coast of Mexico export outlet for US shale gas is proven, and we are excited to acquire control of MPL, the only other LNG project on the west coast of North America that can serve as an outlet for US shale gas that has all its major permits in place. This transaction serves as an exciting inflection point for MPL. We look forward to completing the final engineering and taking FID before the end of 2020,” Mark McComiskey, partner at AVAIO.
Kirkland & Ellis is advising AVAIO.
Meredith, an American media conglomerate, agreed to acquire Stop, Breathe & Think, a mobile mindfulness app. Financial terms were not disclosed.
"Stop, Breathe & Think is an ideal strategic fit for Meredith and our increasing focus on consumer products, services and experiences. We are excited to enter the fast-growing mindfulness space and view this as an important addition to our well-established health and wellness expertise. SBT has natural synergies with Meredith brands and platforms and will provide Synapse, our affinity marketing business, with an attractive new product for its unique retail and online distribution channels," Tom Witschi, Meredith Consumer Products President.
Cooley is advising Meredith.
Tech Data, an end-to-end technology distributor, has agreed to acquire DLT Solutions, a value-added reseller of software and hardware and professional services providers to the federal, state, and local governments as well as educational institutions. Financial terms were not disclosed.
"This transaction represents an opportunity for DLT to expand its value proposition by aligning with a Fortune 100 company that brings broader vendor and partner relationships, financial strength, and a strong commitment to solutions aggregation. Government customers continue to look to new cloud and as-a-service delivery models requiring access to more technologies and partners to deliver them. The addition of DLT enables Tech Data to proactively develop opportunities, accelerate growth and simplify complexity for its channel partners serving the US public sector space," Art Richer, DLT CEO.
DLT Solutions is advised by Evercore.
East West Manufacturing, a global design, manufacturing and distribution business, agreed to acquire SureTech Assembly, a specialized provider of manufacturing, assembly, testing and rework services related to wire and cable interconnects and harnesses, electromechanical assemblies and box builds. Financial terms were not disclosed.
The acquisition of SureTech further enhances the growth of East West and advances the Company’s strategic focus on growing its domestic electronics manufacturing capabilities and expanding US manufacturing operations.
“We found the perfect partner with SureTech to expand our existing manufacturing operations in the Raleigh area. SureTech has a longstanding reputation for putting its customers first. This acquisition allows us to offer our customers even greater domestic, higher mix, lower volume, quick turn electronic manufacturing services, with a focus on specialized wire and cable interconnects and harnesses. Best of all, our collective design, manufacturing and supply chain capabilities will enable us to provide even higher levels of service and support to customers on a global basis,” Scott Ellyson, East West Co-founder and CEO.
Bluestar Alliance, an owner of consumer brands, agreed to acquire Hurley, a surf apparel and accessories producer, from Nike. Financial terms were not disclosed.
“We have always admired the Hurley brand as it has maintained its leadership role and premium positioning in the surf world. This is a transformative acquisition for Bluestar as Hurley’s international footprint will enhance Bluestar’s reach around the world. We look forward to building upon the existing Hurley network and expanding to additional countries with the deep relationships that already exist within the Bluestar portfolio of brands. We see Hurley continuing to evolve into a 360-degree lifestyle brand, with action sports playing a key role,” Joey Gabbay, Bluestar Alliance CEO.
M33-backed Titan Cloud Software, which provides solutions for environmental compliance, advanced fuel analytics, and facility management, agreed to acquire JMM Global, a SaaS organization. Financial terms were not disclosed.
"Merging with JMM Global allows us to bring together two market leaders to create a company that provides best-in-class software and services to an industry that is hungry for innovation, automation, and artificial intelligence, along with the high-touch support that we've always offered our customers. With JMM Global on board, we now have even more expertise and increased capabilities to provide our customers with the platinum software support and premium services they need," David Freese, Titan Cloud President and CEO.
The Jordan Company-backed Capstone Logistics, a third-party logistics company offering technology-enhanced labor solutions, agreed to acquire Priority Express Courier, a Pennsylvania-based logistics company. Financial terms were not disclosed.
"Through this acquisition, Capstone enhances its ability to deliver on one of our key strategic objectives, growing in the last mile delivery segment. Jon Rydel and the Priority Express team are a great cultural fit and they bring a proven execution-focused background that will complement Capstone's existing last-mile delivery solution. We're excited to have them on board," Steve Taylor, Capstone Chief Executive Officer.
Whatfix, a digital adoption platform, agreed to acquire Airim, a company that provides an AI-powered personalization engine for users and customers. Financial terms were not disclosed.
"Whatfix already provides customers with AI-powered contextualization, work-step execution, midway step remembrance, and BOT-based data entry and retrieval. With Airim's acquisition, Whatfix will be the first Digital Adoption Platform to provide Autonomous Personalization," Khadim Batti, Whatfix Founder and CEO.
EVERSANA, a provider of commercial services to the life science industry, agreed to acquire Cornerstone Research Group, a global health economic and market access research company supporting pharmaceutical and medical device companies. Financial terms were not disclosed.
"Pharmaceutical companies face strong pressures to quickly assess and quantify both the direct and indirect value of their in-market products and development pipeline. By adding a strong health economics and outcomes capability to our integrated commercial platform, we can now conceptualize, deliver and measure value at every stage of the product lifecycle from clinical trials to ongoing patient adherence. The Cornerstone Research Group team brings tremendous expertise that will deliver immediate value to our clients worldwide, and we're thrilled to have them on board," Jim Lang, Eversana CEO.
TapClicks, a provider of marketing intelligence, analytics, reporting, workflow and orders management, agreed to acquire Megalytic, a provider of client reporting and dashboard solutions. Financial terms were not disclosed.
"Megalytic's beauty is in its simplicity and power. While automating the tedious, repetitive task of client reporting, it allows users to create beautiful, engaging and interactive dashboards that are loved by clients, management and other marketing stakeholders alike. We are excited to bring Megalytic into the TapClicks ecosystem to give marketers a robust but streamlined reporting solution that seamlessly integrates with the TapClicks Marketing Operations Platform suite of intelligence capabilities," Colby West, TapClicks President.
Enstar Group, an insurance group, agreed to acquire BorgWarner Morse TEC, a wholly-owned subsidiary that holds asbestos and certain other liabilities, from BorgWarner, an American worldwide automotive industry components and parts supplier. Financial terms were not disclosed.
"Enstar continues to provide market-leading legacy solutions for large corporates and their historic liabilities. This is our second acquisition of a non-insurance company and we see a growing potential market here as we expand our business." Dominic Silvester, Enstar Chief Executive Officer.
KKR seeks to raise nearly $100bn for various funds by 2022. (FS)
KKR & Co expects to raise close to $100bn for its three largest funds and other strategies over the next three years, the firm's co-president and co-CEO Scott C. Nuttall said. Mr. Nuttall said KKR would launch fundraising for its flagship Asia and Americas private equity funds and a global infrastructure fund over the next 12 months.
KKR raised $94bn in the last three years outside of its big three funds. The firm now expects to exceed that number over the next three years with the launch of major funds and additional strategies. The firm's three largest funds aggregated $30bn in their last vintage.
BIP Capital closed Venture Fund IV at $101m. (FS)
Venture capital firm BIP Capital closed BIP Capital Venture Fund IV, with $101m in capital commitments, surpassing its target of $100m.
Venture Fund IV will provide Series A and Series B financing for market-disrupting B2B SaaS and tech-enabled services companies focused on Enterprise SaaS, Healthcare IT, Digital Media, Dev Tools, and MarTech.
Turner Impact Capital to invest $1bn in affordable housing funds. (RE)
Turner Impact Capital, one of the US' largest real estate investment firms, is planning to invest an additional $1bn in affordable workforce apartment communities in major metropolitan areas.
“We are pleased to be enlarging and extending our commitment to preserve workforce housing that serves the families who make up the backbone of our communities. These residents include teachers, police officers, and healthcare professionals who earn too much to qualify for subsidized apartments but can’t afford a newer luxury or upgraded housing,” Bobby Turner, Turner Impact Capital CEO.
EMEA
The British government cleared the $5.5bn acquisition of Inmarsat, a British satellite telecommunications company, by a consortium including private equity firms Apax Partners, Warburg Pincus, OTPP and CPPIB. The deal was announced in March 2019.
The government said the undertakings by the consortium provided assurance that sensitive information was protected and that enhanced security controls were in place to ensure the continued supply of key services used by the Ministry of Defence.
Credit Suisse, JP Morgan, PJT Partners, Clifford Chance and Headland Consultancy are advising Inmarsat. Bank of America Merrill Lynch, Barclays, UBS, Freshfields Bruckhaus Deringer, Kirkland & Ellis, Weil Gotshal and Manges and Kekst CNC are advising the buyers.
Bain Capital-backed Fedrigoni, an Italian and European provider of specialty papers and high value-added products for packaging and fine printing and self-adhesive labels, agreed to acquire Ritrama, an Italian multinational group specializing in self-adhesive products. Financial terms were not disclosed.
"Strong synergies exist between the businesses of Arconvert and Ritrama. Both companies operate with excellent results on largely complementary markets, with Arconvert specializing in self-adhesive labels manufactured from specialty papers, and Ritrama focusing on the production of self-adhesive plastic films," Marco Nespolo, CEO of the Fedrigoni Group.
Tamburi Associati, Martinez & Novebaci and LED Taxand are advising Ritrama. BCG, Golder Associates, Pirola Pennuto Zei, PwC, Rothschild & Co, Kirkland & Ellis and Latham & Watkins are advising Fedrigoni.
TA Associates-backed Confluence Technologies, a software firm that provides back-office automation systems to the investment management industry, completed the acquisition of StatPro Group, a United Kingdom-based company engaged in the development, marketing and distribution of software systems, for £161m ($207m). The acquisition price represents a premium of approximately 54.9% to the closing price per StatPro share on 19 September 2019.
"Confluence is an excellent and complementary partner both in terms of geographical disposition and product capabilities. The combined entity will offer asset managers and fund administrators a more comprehensive range of support services and analytics on one platform. For shareholders, this transaction values StatPro at a very attractive premium of 54.9% to StatPro's last closing share price. For our colleagues around the world, Confluence, who we have got to know well, have indicated that they plan to invest in StatPro and with their substantial resources will provide a wider range of opportunities." Rory Curran, Non-Executive Chairman of StatPro.
Panmure Gordon & Co, Marlin & Associates, Fieldfisher and Instinctif Partners advised StatPro. Oakley Advisory and K&L Gates advised Confluence Technologies.
Future, a British media company, offered to acquire TI Media, a consumer magazine and digital publisher in the United Kingdom, for £140m ($180m).
"This acquisition provides an outstanding opportunity to accelerate Future's strategy and to bolster its growth levers. TI Media's long-established market-leading brands, industry events and quality content are an exceptional fit with our business and our strategy. TI Media will substantially expand our presence in existing verticals and bring a number of new content verticals that will significantly enhance the Future portfolio," Zillah Byng-Thorne, Future CEO.
Future is advised by N+1 Singer, Numis Securities, and Instinctif Partners.
Fiat Chrysler Automobiles, the world's eighth largest auto maker agreed to merge with PSA Group, a French multinational manufacturer of automobiles and motorcycles, in a $50bn deal.
The official announcement is expected to be released on Thursday, 31st of October. Fiat Chrysler Chairman John Elkann will be Chairman and Peugeot CEO Carlos Tavares will be CEO of merged company. Peugeot and Fiat Chrysler are expected to have six and five board seats respectively. The US and French Governments have been briefed on deal. Peugeot will pay $3.3bn to its shareholders from sale of Faurecia stake.
The merged entity would still face substantial challenges, as auto manufacturers grapple with a global downturn in demand while trying to develop costly, cleaner car models as deadlines to meet ever more stringent anti-pollution rules loom. Fiat Chrysler abandoned the talks to merge with Renault earlier this year.
Private equity firms Altor and TDR Capital, alongside Norwegian investor Petter Stordalen’s Strawberry Group, agreed to acquire Nordic unit of Thomas Cook, a collapsed British global travel group. Financial terms were not disclosed.
Strawberry Group and Altor will each take a 40% stake in the business, with TDR Capital buying the remaining 20%, the parties said in a joint statement. The business will be restructured to form a new group, called Wing Group.
OCG Holdings, which offers manufacturers and distributors a platform to advertise business in orthopaedics and spine, has acquired Osteotec, an orthopaedic distributor and manufacturer. Financial terms were not disclosed.
"Osteotec is a well-established business, with over 26 years of commercial experience in the UK orthopaedic extremities market, and is a brand well-known to customers based in UK hospitals. As well as being one of the most tenured orthopaedic distributors in the UK, Osteotec Ltd has a number of own-brand products which are exported globally. I am looking forward to an exciting future with Osteotec," Matt Woods, OCG Founder and Owner.
Yngve Slyngstad steps down as CEO of Norway's sovereign fund. (People)
Yngve Slyngstad resigned as CEO of Norway’s $1.1tn sovereign wealth fund but will remain at the group to work on building up unlisted renewable energy infrastructure as a new investment area. He will remain CEO of Norges Bank Investment Management, which manages the fund, until the fund finds his replacement.
"I am proud of having been part of building up a leading international investment organization with talented and professional employees. We have delivered good returns for the best of our nation," Yngve Slyngstad.
Kloeckner & Co not in deal talks with Thyssenkrupp.
Kloeckner & Co, a listed, producer-independent steel and metal distributor, is not holding talks with larger rival Thyssenkrupp about a potential deal. CEO Gisbert Ruehl said that Kloeckner & Co was currently more focused on fixing its own operational issues following a recent profit warning, adding it was rather in a wait-and-see mode with regard to Thyssenkrupp's Materials Services division.
Yandex-Uber JV looking to hire Morgan Stanley, Goldman for IPO.
Russian search engine Yandex NV's ride-hailing unit, part-owned by Uber Technologies, is in talks to hire Morgan Stanley and Goldman Sachs to manage its initial public offering. The unit could be valued at approximately $8bn in the listing.
"An IPO is something we are considering as we have said previously, and we work with a number of banks on a variety of issues," a Yandex.Taxi spokesman.
Erste Group expressed interest in mBank.
Austria's Erste Group, one of the largest financial services providers in Central and Eastern Europe, would be interested in buying Commerzbank' Polish unit mBank, but only without its Swiss franc portfolio.
"Poland is an important and growing market, all in all, it is an interesting opportunity," Bernhard Spalt, Erste Deputy CEO.
Prada to acquire Milan Stores for €66m.
Prada, an Italian luxury fashion house, agreed to acquire four company stores from Miuccia Prada Bianchi, Co-founder of Prada, for €66m ($73m). The transaction will allow the Italian fashion brand to clean up its corporate structure.
"The move will be an important step in further developing and extending the group’s brand identity,” Prada said in a statement.
Alpek to buy UK plant from Lotte Chemical.
Mexican petrochemical company Alpek, a unit of conglomerate Alfa, has agreed to acquire a British plant from Lotte Chemical UK. Financial terms of the deal were not disclosed.
The plant, a unit of South Korea’s Lotte Chemical, has the capacity to produce 350k tonnes of polyethylene terephthalate per year and is located at Wilton, Teesside.
APAC
Private equity firm Quadrant has agreed to acquire QMS Media, a media company that specializes in providing clients and agency partners with quality outdoor advertising solutions for A$571m ($391m).
“We are delighted to have an opportunity to partner with Barclay and his experienced team. QMS has a proven track record of delivering sustainable growth," Jonathon Pearce, Quadrant Partner.
QMS Media is advised by CLSA and Lander & Rogers. Quadrant is advised by Jefferies & Company, Nomura and Gilbert + Tobin.
Veoneer, a Swedish provider of automotive technology, agreed to sell its 51% stake in Japan and China operations of Brake System JV to Nissin-Kogyo and Honda Motor for $176m.
The termination of the VNBS joint venture and the divestiture of the Japanese and Chinese entities are part of Veoneer's previously announced market adjustment initiatives which are aimed at focusing Veoneer on its core businesses and providing an effective cost structure to address the current market and business situation in the company.
Morrison & Foerster is advising Veoneer.
Honda Motor Company, a Japanese public multinational conglomerate, agreed to acquire and merge its business with the vehicle components unit of Hitachi, a Japanese multinational conglomerate company. Financial terms were not disclosed.
“The merged company will be a mega supplier and will deliver competitive advanced technologies and solutions. We will leverage our strengths and our scale to expand globally,” Keiji Kojima, Hitachi Executive Vice President.
Tencent led a $110m financing round in MX Player, a video app that offers both local playback and streaming services. Times Internet, which acquired a majority stake in MX Player in late 2017 for $140m, also participated in the Series A financing round.
MX Player will use the fresh capital to double down on producing original TV shows and broadening its catalog of licensed content. The firm, which has so far added 15 original shows to its platform, has already commissioned the production of another 20 by year-end.
West Coast Paper Mills, one of the oldest and the largest producers of paper for printing, writing, and packaging in India, completed the acquisition of the Indian unit of International Paper, a producer of renewable fiber-based packaging, pulp and paper products, for $86m.
"As part of our strategic assessment of the IP portfolio, we have decided to exit our position in IP APPM. This decision is a reflection of our continued focus on growing our global packaging and cellulose fibers businesses. Our paper business continues to perform well in India and we wish the team there the very best in the future," Mark Sutton, International Paper Chairman and Chief Executive Officer.
Soho China considers selling eight office towers in Beijing and Shanghai for $8bn. (RE)
Soho China, a Chinese building developer, primarily in the office and commercial sector, is considering selling a majority of its commercial property holdings in deals that may fetch as much as $8bn. At least eight office towers in Beijing and Shanghai are being discussed as part of the planned sales.
The potential sales signal Soho China may be shifting away from the nation's office market, which has been hit by declining rents and decade-high vacancy rates as economic growth slows.
Fubon Financial's unit sale hurt by Hong Kong protests.
Taiwan's Fubon Financial's plan to sell its Hong Kong banking business is stalling as protests in the city hamper talks and undermine the unit's valuation, Bloomberg reported.
Negotiations with potential buyers, mostly from mainland China, have slowed in recent months and it will probably take longer to reach a deal. Twenty-one straight weekends of protests are giving companies pause on potential investments in Hong Kong.
Nestle ponders selling Hsu Fu Chi and Yinlu brands for $1bn.
Nestle, a Swiss multinational food and drink processing conglomerate, is considering options including a sale of two ailing Chinese units: Hsu Fu Chi, a local confectionery brand, and Yinlu, known for its ready-made Chinese porridge. The sale could fetch as much as $1bn. Nestle acquired both companies in 2011.
No final decisions have been made, and there is no certainty the deliberations will lead to a transaction.
Jungle Ventures raised $240m for third Southeast Asia fund. (FS)
Singapore’s Jungle Ventures, an early-stage venture capital firm, raised $240m from investors, including Temasek Holdings, for a third fund designed to back Southeast Asian startups, highlighting the growing interest in the region’s technology firms, Reuters reported.
Jungle Ventures’ latest fund comes as a growing number of venture capital firms, including Vertex Ventures and Golden Gate Ventures, have been raising funds focused on the region this year.
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