EMEA
Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply after Fiat Chrysler abandoned its $35bn merger offer. Renault shares slumped 7% while Fiat’s shares fell around 3% in early trading.
Shares in Peugeot-carmaker PSA rose, as analysts examined the possibility that FCA might turn back to PSA after FCA withdraw a merger offer for Renault, Reuters reported.
France’s finance minister said following the collapse of merger talks between Fiat Chrysler and Renault that the government had engaged constructively but failed to win the support of Renault’s Japanese partner, Nissan.
“An agreement had been reached on three of the four conditions. What remained to be obtained was the explicit support of Nissan,” Bruno Le Maire said, as the answer on FCA blaming French politics for scuppering the $35bn merger proposal.
Russian Direct Investment Fund, Russia’s sovereign wealth fund, Alibaba Group, a global digital commerce company, MegaFon, a pan-Russian operator of digital opportunities and Mail.ru Group, the leading internet and IT company in Russia, have received approval from the Federal Antimonopoly Service (FAS) in Russia for a joint venture to integrate Russia’s key consumer internet and e-commerce platforms and launch a leading social commerce joint venture in Russia and the CIS, which will operate in compliance with local data protection regulations.
The AliExpress Russia JV creates an unmatched value proposition for merchants, consumers, and internet users across Russia and the CIS, and accelerates the development of Russia and the region’s growing digital economy by leveraging and integrating the strength and expertise of the new shareholder group. As part of the shareholder collaboration, the AliExpress Russia JV and Mail.ru Group will enter into a strategic cooperation agreement relating to, among other things, traffic, and product initiatives.
“This landmark partnership will bring significant benefits to customers and create unprecedented opportunities for services growth. RDIF continues to support the acceleration of the digital transformation of the Russian economy through the expansion of the e-commerce market. Bringing together the expertise of the companies at the forefront of social commerce and global retail opens a new era for the Russian market.” Kirill Dmitriev, the Russian Direct Investment Fund (RDIF) CEO.
Megafon is advised by Bank of America Merrill Lynch.
BMS signed an agreement for significant investment by affiliates of British Columbia Investment Management and Preservation Capital Partners. The financing, which values BMS at £500m ($635m), is subject to regulatory approvals and is expected to close in the third quarter.
The BMS management team, led by chief executive officer Nick Cook, will all remain in their current roles following completion, and management and staff of BMS will remain significant shareholders in the company.
“The long-term investment by BCI and PCP secures our future as an independent broker and maintains significant employee ownership. We have grown consistently over the past five years generating revenues over £100m ($127m) for the first time in 2018. We look forward to partnering with BCI and PCP as we continue to invest in our business and attract market-leading talent to the benefit of our clients. My thanks go to all of our colleagues who have been at the root of our success.” Nick Cook, BMS CEO.
Ferroglobe, the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, has sold its 100% interest in subsidiary FerroAtlantica, to investment vehicles affiliated with TPG Sixth Street Partners, the global finance and investment firm, for a total transaction value of €170m ($191m). The final price is subject to customary adjustments in this type of transaction, including net debt and working capital adjustments.
The assets owned by FerroAtlántica to be transferred in this transaction are ten hydroelectric power plants with a combined generating capacity of approximately 167 MW, and the Cee-Dumbría ferroalloys factory, all located in the province of A Coruña (Spain).
"The sale of FerroAtlántica represents an important step in the execution of Ferroglobe’s near term strategy of streamlining our business and strengthening our balance sheet. The structure of this transaction allows us to significantly improve the financial profile of our company, by deleveraging and enhancing liquidity, while maintaining our strong presence in the ferroalloy market and our commitment to the region of Galicia.” Pedro Larrea, Ferroglobe CEO.
Ferroglobe is advised by Natixis Partners, Uria Menendez, and ERM Iberia. TPG is advised by Deloitte, EY, Pérez Llorca and GTA Villamagna, ERM Iberia, Aon, and Mott MacDonald and Sener.
Hillhouse Capital Management, a global investment firm with a focus on innovative businesses in a growth industry, to acquire Loch Lomond Group, one of Scotland’s most historic and iconic whiskey producers, from Exponent Private Equity. Financial terms were not disclosed.
Since the original buyout of Loch Lomond from the Bulloch family in 2014, the company has invested significantly in growing its portfolio of brands, distillery and bottling infrastructure, global distribution platform, and management team. The business now generates about 70% of its revenue from more than 100 international markets, versus less than 10% at acquisition.
“We believe now is the right time to move forward into the next stage of our growth strategy as we look to innovate further, extend our portfolio of brands and continue to expand our international presence, particularly in Asia where Hillhouse has significant experience." Colin Matthews, Loch Lomond Group CEO.
Innova Capital, a leading Central European private equity firm, acquires a majority in CS Group Polska, one of the top online marketing services suppliers for the small and medium enterprises sector. Financial terms were not disclosed.
Innova Capital Funds are in the final stages of negotiations for a majority stake in CS Group Polska. The transaction exposes the fund to an attractive and growing online advertising market. Innova Capital is interested in further consolidation of the web marketing services market for small and medium enterprises both in Poland and abroad.
AS Ekspress Grupp, acquired a 100% of shares in Latvian ticketing platform company SIA Bilesu Paradize. Financial terms were not disclosed.
SIA Bilesu Paradize operates the electronic ticket platform and box offices to organize the sale of tickets to various entertainment events on behalf of event organizers. The company has provided online ticket distribution for more than 15 years and is one of the two leading ticket service providers in Latvia.
The acquisition aims to expand into new areas with the focus on increasing the share of the group’s digital revenues.
Ekspress Grupp is advised by Merhels and Vilgerts. The sell side is advised by Porta Finance.
Sommet Education, a major higher education player, acquires 51% stakes in Ducasse Education, a significant player in culinary arts and pastry training. Financial terms were not disclosed.
Sommet Education was backed by Eurazeo Capital, a leading global investment company. In line with its strategy to accompany the long-term development of its investments, Eurazeo Capital deploys all the financial, technical, and human resources at its disposal to accelerate Sommet Education’s growth and transformation.
“This acquisition fits perfectly with our desire to strengthen our presence in the culinary arts, a sector which, we have noted, is of significant interest to the general public. We’re looking forward to working closely with the Ducasse Education teams and pooling our know-how and expertise.” Benoit-Etienne Domenget, Sommet Education Chairman.
Strabagg Property and Facility Services (PFS), a leading real estate service provider, acquires 100% stakes in Porreal's Poland and Czechia's operations. Financial terms are not disclosed.
Porreal specializes in providing technical and infrastructural facility management for office properties. The acquisitions supplement the company’s service portfolio with additional technical expertise and open up new customer segments.
Germany to explore Commerzbank-ING deal with the Netherlands.
The German government is probing the possibility of a tie-up between Commerzbank and ING Groep as one option to forge a European financial heavyweight, Bloomberg reported.
Buyout giant EQT considers buying £1.5bn Trainline float. (FS)
The Swedish-based investor is examining a potential bid for the transport booking app, Sky News reported.
EQT Partners is among a small number of parties examining takeover offers to buy Trainline ahead of its listing on the London Stock Exchange later this month.
EQT, which has previously invested in UK-based companies, including Independent Vet Care, has not yet decided whether to make a formal bid for Trainline's parent company.
Philip Green seeks more time to get Arcadia restructuring approval.
Philip Green’s Arcadia fashion group adjourned Wednesday’s creditor meetings to vote on the struggling British retailer’s restructuring plan until June 12. Green needs his restructuring proposals for each of Arcadia’s brands - Topshop, Topman, Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge, and Wallis - to be approved by creditors, including landlords, or the group, which employs 18k, will likely be placed into administration.
“It is in the interests of all stakeholders that we adjourn today’s meetings to continue our discussions with landlords,” Ian Grabiner, Arcadia chief executive. His plan consists of seven Company Voluntary Arrangements (CVAs) that will close stores and cut rents, Reuters reported.
Stefanel shares suspended as fashion brand struggles to survive.
Shares in Stefanel were suspended until further notice after the troubled Italian clothing group said it would apply for particular administration under bankruptcy law.
The move is the last bid for survival for the 60-year-old fashion brand, globally known in the 1980s along with rival Benetton as a retail chain of affordable Italian fashion.
“The decision was required because of the big amount of money to be used to refund creditors next year, resources which would have thus been taken away from the recovery plan,” the company’s board said in a letter to employees.
RAG Stiftung has no plans to take a stake in Thyssenkrupp.
German foundation RAG Stiftung, tasked with bearing the costs for the country’s exit from hard coal mining, has currently no plans to invest in ailing Thyssenkrupp, whose shares came close to a 16-year low earlier this week.
The foundation, the top shareholder of German chemicals group Evonik, is regularly assessing investment opportunities, its head Bernd Toenjes, adding there were no plans at the moment to invest in Thyssenkrupp.
The founders of Mecalux arranged a €265m financing for the share buyback from minority shareholders. (FS)
The founders of Mecalux, a leading provider of integrated warehouse solutions, arranged a €265m ($298m) financing for the share buyback of minority shareholders, representing 37 % of the group.
Mecalux will continue with its strategic plan to double the total turnover in the next five years, with projected growth of up to €1.4bn ($1.57bn) in revenues. The program will be based on organic growth in the different divisions and currency markets of the company, although possible strategic alliances and technology investments will be studied.
Alantra acted as sole financial advisor to Mecalux.
Rosneft considers the acquisition of Petersburg Fuel Company.
Rosneft seeks the acquisition of Petersburg Fuel Company. If the deal passes, Rosneft will increase its Gas station network from 5% to 27%.
AMERICAS
Alphabet's Google acquires Looker, a unified platform for business intelligence, data applications, and embedded analytics for $2.6bn in an all-cash deal.
Upon the close of the acquisition, Looker will join Google Cloud. This acquisition builds on an existing partnership where the two companies share more than 350 joint customers, such as Buzzfeed, Hearst, King, Sunrun, WPP Essence, and Yahoo! The acquisition of Looker is expected to be complete later this year and is subject to customary closing conditions, including the receipt of regulatory approvals.
“We are excited to welcome Looker to Google Cloud and look forward to working together to help our customers solve some of their biggest challenges.” Sundar Pichai, Google CEO.
Industrial Scientific, a global leader in connected sensing technology and a wholly-owned subsidiary of Fortive (FTV), has acquired Intelex Technologies for approximately $570m from JMI Equity. The acquisition is subject to customary closing conditions, including regulatory approvals.
Intelex is a recognized leader in the environmental, health & safety, and quality (EHSQ) management space and focuses on improving business performance for its customers.
"We are building the company that our customers need-one capable of improving safety and productivity in the field while also being the system of record for EHSQ data. We are excited by the opportunity to expand our connected safety capabilities into the global EHSQ software space and beyond." Justin McElhattan, Industrial Scientific President.
Intelex is advised by Evercore, Goodwin Procter, and Osler, Hoskin & Harcourt.
Elastic, the company behind Elasticsearch and the Elastic Stack, acquired Endgame a security company focused on endpoint prevention, detection, and response for $234m.
The proposed acquisition will further advance Elastic’s ability to offer a comprehensive security solution focused on endpoint security and integrated with Elastic’s existing SIEM efforts.
“It's been a humbling experience to get to know the Endgame team. We are very aligned on a go-to-market strategy and building solutions that combine our search technology with Endgame's endpoint product to give users the best possible threat hunting, SIEM and endpoint experience. We are excited for the opportunity to join forces with Endgame and welcome the Endgame team to Elastic and our community.” Shay Banon, Elastic CEO and Founder.
BDT Capital Partners, a private equity firm acquires Lew's Holdings, an outdoor consumer products company from Peak Rock Capital, a leading middle-market private investment firm that makes equity and debt investments in companies in North America and Europe. Financial terms were not disclosed.
“We’re excited to partner with Lew’s and support the growth of their leading fishing and outdoors brands.” Tiffany Hagge, BDT Capital Partners Managing Director.
Robert W. Baird and McDermott Will & Emery are advising Lew's Holding.
Northleaf Capital Partners, an independent global private markets fund manager, acquires 49% of the stakes in Odfjell Holdings, a portfolio of bulk liquid storage terminals in the United States. Financial terms were not disclosed.
Odfjell is holding the remaining 51% stakes.
“Direct investments in high-quality bulk liquid storage assets in partnership with a world-leading organization such as Odfjell are consistent with Northleaf’s strategy and offer our investors the significant potential for stable, long-term returns.” Jamie Storrow, Northleaf Managing Director.
Genstar Capital, a leading private equity firm with expertise in drug research and healthcare, has acquired Advarra, the premier provider of institutional review board (IRB), institutional biosafety committee (IBC), and compliance and regulatory consulting services, from Linden Capital Partners, which intends to reinvest in the Company via a minority investment upon completion of the transaction. Financial terms were not disclosed.
“Advarra’s leadership has built a company with a stellar reputation in the pharmaceutical regulatory compliance industry that provides unmatched service, user-friendly technology, and rapid turn-around times. We are excited to support Advarra in continuing to build upon its leading reputation, while expanding, both organically and through strategic acquisitions, into other ancillary services to continue adding value for its customers,” David Golde, Genstar Capital Managing Director.
Anthem has acquired Beacon Health Options, the largest independently held behavioral health organization in the country. Beacon currently serves more than 36m individuals across all 50 states, including nearly 3m individuals under comprehensive risk-based behavioral programs. Financial terms were not disclosed.
The acquisition aligns with Anthem’s strategy to diversify into health services and deliver market-leading integrated solutions and care delivery models that personalize care for people with complex and chronic conditions.
“With an extensive track record in behavioral health, Beacon fits well with our strategy to better manage the needs of populations with chronic and complex conditions, and deliver integrated whole health solutions. Together with Beacon, we will enhance our capabilities to serve state partners, health plans, and employer groups as they seek to address consumer behavioral health needs.”Gail K. Boudreaux, Anthem President, and CEO.
The Riverside, a private equity firm, acquires Champion Healthcare Technologies, a software-as-a-service provider for hospitals to track and manage tissue and implantable devices from Jump Capital, a venture & growth capital firm. Financial terms were not disclosed.
Riverside has combined Champion Healthcare with portfolio company HemaTerra Technologies, a provider of SaaS-based solutions for independent and hospital-based blood collection centers and plasma collection centers.
“Champion’s robust set of software solutions and near-perfect customer retention rates speak for themselves we are thrilled to partner with the Champion team and help further expand their product development and customer support efforts.” Loren Schlachet, Riverside Managing Partner.
Mapp, a leading provider of cloud-based digital marketing solutions, backed by Marlin Equity Partners, had acquired Webtrekk, a provider of marketing analytics and customer intelligence software solutions. Financial terms were not disclosed.
Mapp and Webtrekk will combine their services into a fully integrated package allowing marketers to collect, analyze, and activate their data for customer engagement through a single platform. Webtrekk’s customer intelligence and Mapp’s cross-channel marketing execution are grounded in first-party data, designed to ensure a highly-personalized customer experience.
“We are delighted that the acquisition has been completed and that we can now officially welcome Webtrekk into our fold. Together, Mapp and Webtrekk will evolve into a true customer experience platform – empowering marketers and data analysts in their day-to-day work to deliver exceptional value to their customers.“ Steve Warren, Mapp CEO.
Arthur J. Gallagher & Co acquired MDV Wealth Planning. Financial terms were not disclosed.
MDV Wealth Planning sells and places life insurance products for clients of registered investment advisors (RIAs), independent financial advisors, institutional brokers, life insurance professionals, and property/casualty agents and brokers. Their focus is on C-suite executives and high-net-worth individuals.
"Gallagher continues to expand our capabilities in the individual life insurance and wealth planning space by seeking industry leaders, and MDV has a proven track record in this area. I am very pleased to welcome Tom and his associates to Gallagher." J. Patrick Gallagher, Jr., Chairman, President, and CEO.
Engineering/architecture companies Short Elliott Hendrickson and Russell Planning & Engineering announced their intent to merge. The pending merger agreement will leverage the strengths of both companies resulting in higher value for clients and employees. Financial terms were not disclosed.
“Early in the due diligence process, we recognized the value both companies could offer to employees and clients. Mike Russell and his company are well-known, well-respected and award-winning. We look forward to leveraging the talents of both companies for the benefit of our clients and our employees.” David Ott, SEH President, and CEO.
Costas acquires Atlas Nanotech, a high-tech nanotechnology research and development company focused on the field of nanomedicine. The acquisition is an all-stock transaction of 25m stocks to the principles of Atlas.
The terms of the share exchange agreement include the appointment of new managing officers and a new board of directors, the resignation of COSTA’s current officers and board of directors and the retirement of 12.6m shares.
Costas’ new board of directors and executive team will include members of Atlas executive board and its key management executives.
Brazil's Petrobras seeks to win in supreme court decision over asset sales.
Brazil oil producer Petroleo Brasileiro expects to narrowly win a supreme court decision that would allow it to proceed with asset sales, Reuters reported, freeing up billions of dollars.
In June 2018, Supreme Court Minister Ricardo Lewandowski issued a preliminary opinion saying the “sale of shares in public companies, of mixed capital firms and subsidiaries requires previous legislative authorization.”
Advent International closes the ninth fund at $17.5bn. (FS)
Global private equity firm Advent International has closed its ninth vehicle, GPE IX, at the hard cap of $17.5bn, surpassing its initial target of $16bn after six months in the market.
The vehicle will pursue the same strategy of investing in buyouts, corporate carve-outs, public-to-private, and growth equity transactions, primarily in Europe, North America, and selectively in Asia and Latin America.
Permira tops $1.4bn for debut growth fund. (FS)
Permira has raised $1.44bn for its first growth opportunities fund, per an SEC filing, is close to reaching a final close on about $1.7bn.
APAC
India Government investigations could postpone revival plans of Jet Airways.
The government’s investigations into Jet Airways (India) and its founder Naresh Goyal could derail plans of the Hinduja Group, Etihad Airways, and Abu Dhabi’s sovereign wealth fund Mubadala Investment Company’s policy to invest in the grounded Indian carrier, Deal Street Asia reported.
Jet Airways’ revival was still a long shot away since there were lots of issues to be resolved for Gulf-based companies to invest in the grounded airline, including re-negotiation of bilateral flying rights between India and Abu Dhabi. This would further increase traffic between the Gulf state and India, and also give Etihad Airways access to extra slots.
Warburg Pincus nearing close of $4.3bn China-Southeast Asia fund. (FS)
Warburg Pincus is nearing the final close of an at least $4.3bn private equity fund focusing on Chinese and Southeast Asian investments, Reuters reported.
The firm launched the fundraising earlier this year, and it disclosed the planned fund size in a filing to the United States Securities and Exchange Commission on May 24.
Australia's Pacific Equity Partners set to raise $1.7bn in the new buyout fund. (FS)
Pacific Equity Partners, one of Australia’s largest buyout firms, is close to raising A$2.5bn ($1.7bn) in its new fund, Reuters reported.
The Sydney-based firm is expected to receive the final commitments for its Fund VI in coming weeks and is ready to start using the money to invest.
Australia’s private equity capital levels have hit a record high this year at $30bn, with double-digit growth in private equity M&A activity.
Mondelez ends pursuit of Campbell’s Arnott’s biscuit brand.
Mondelez’s efforts to buy Campbell Soup’s iconic Australian Arnott’s biscuit brand have ended, CNBC reported.
Mondelez had submitted a final offer for Campbell’s international snacking business, including Arnott’s, below Campbell’s roughly $3bn price expectation.
The valuation was a crucial issue in the dispute. Mondelez, which owns brands like Oreos, Belvita and Chips Ahoy, has been looking to expand its snack portfolio as millennials eat on-the-go. It is approaching deals cautiously though.
Postal Savings Bank of China raises equity investments.
Postal Savings Bank of China said it would raise the proportion of equity investments in its holdings, a move that indicates a further shake-up of country’s capital markets as large banks spin off their wealth management units.
Equity investments only account for 4% of the bank’s investments at present, Xu Xueming, vice president of Postal Savings Bank of China. The bank, which embraces the largest network of branches in China, was sitting on outstanding wealth management funds of 843bn yuan ($122bn) by the end of May, the lender said. It also has 8tn yuan ($1.15tn) worth of savings due to its massive client base in rural areas.
Swiggy and Zomato in the race to raise over $1bn.
Online food delivery companies Swiggy and Zomato are both on the road to raise fresh capital as the discount war to win the market between the two companies continues. While Swiggy is in talks to raise $500-600m led by existing backer Naspers along with the participation of new investors like Google, Zomato is also in talks to raise $600-700m, Times of India reported.
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