Flutter Entertainment, a bookmaking business created by the merger of Paddy Power and Betfair, agreed to acquire and merge with The Stars Group, a Canadian gaming and online gambling company traded on Nasdaq and the Toronto Stock Exchange, into a £10bn ($12.3bn) group. Under the terms of the combination, TSG Shareholders will be entitled to receive 0.2253 new Flutter shares in exchange for each TSG Share.
"The combination represents a great opportunity to deliver a step-change in our presence in international markets and ensure we are ideally positioned to take advantage of the exciting opportunity in the US through a media relationship with FOX Sports as well as our development of US sports betting through Flutter's FanDuel and TSG's FOX Bet brands. We are committed to these two high-quality brands to drive the growth of the Combined Group in the US." Peter Jackson, CEO of Flutter.
BMO Capital Markets, Barclays, Moelis & Co, A&L Goodbody, Blake Cassels & Graydon, Gilbert + Tobin, Jones Day, Osler Hoskin & Harcourt and Slaughter & May are advising The Stars Group. Goldman Sachs, Goodbody, PJT Partners, Arthur Cox, Blank Rome, Clayton Utz, Freshfields Bruckhaus Deringer, Stikeman Elliott, Drury Porter Novelli and Finsbury are advising Flutter.
Versum Materials, a leading materials supplier to the semiconductor industry, announced that Chinese regulators cleared its $6.5bn acquisition by Merck. Subject to the satisfaction of other customary closing conditions, Versum expects the merger to close on Oct. 7, 2019. The deal was announced in January 2019.
"With this transaction, Merck KGaA, Darmstadt, Germany, will be optimally positioned to capitalize on long-term growth trends in the electronic materials industry. Our combined business shall deliver leading-edge innovations to our customers around the globe," Stefan Oschmann, Merck Chairman of the Executive Board and CEO.
Citigroup, Lazard, Simpson Thacher & Bartlett, Skadden Arps Slate Meagher & Flom and Latham & Watkins are advising Versum. EY, Goldman Sachs, Guggenheim Partners and Sullivan & Cromwell are advising Merck. BNP Paribas, Bank of America Merrill Lynch and Deutsche Bank are providing debt financing.
Warburg Pincus-backed Citizen Energy agreed to acquire Roan Resources, an independent oil and natural gas company headquartered in Oklahoma City, for $1bn.
"This transaction is the culmination of our board's extensive review of strategic alternatives to maximize value for our stockholders, including a comprehensive process during which we engaged with a considerable number of counterparties. Ultimately, the board unanimously determined that an all-cash transaction with Citizen Energy is in the best interests of our stockholders and the company and will deliver value to our stockholders at a premium to our recent share price." Joseph A. Mills, Roan's Executive Chairman of the Board.
Citigroup, Jefferies & Company and Vinson & Elkins are advising Roan Resources. Bank of America Merrill Lynch and Latham & Watkins are advising the buyers. BMO Capital Markets, Bank of America Merrill Lynch, JP Morgan and TD Securities are providing debt financing.
United States Steel Corporation, an American integrated steel producer headquartered in Pittsburgh, agreed to acquire a 49.9% interest in Big River Steel, an Arkansas-based steel producer, for $700m, with a call option to acquire the remaining 50.1% within the next four years. KM BRS and TPG Furnace, an affiliate of TPG Growth, would remain preferred equity holders of Big River.
"Our new partnership with Big River is designed to accelerate our strategy to offer our customers the 'best of both' by bringing together the capabilities of integrated and mini-mill steel production. Big River operates the most advanced, state-of-the-art and sustainable mill in North America, and our investment would ultimately strengthen our competitive positioning in highly strategic steel-end markets, creating an unmatched value proposition for our stakeholders." David B. Burritt, President and Chief Executive Officer of US Steel.
Goldman Sachs, JP Morgan and Baker Botts are advising Big River Steel. Barclays and Milbank are advising United States Steel Corporation. Jones Day is advising KM. Debevoise & Plimpton is advising TPG.
Hudson's Bay Co's shareholder Paradise Developments decided to oppose Chairman Richard Baker's $1.3bn take-private offer for the department store operator, calling it inadequate. The investor, which holds a 0.6% stake, urged the board to negotiate for a better price or recommend that the "insider offer" be rejected.
A special panel of Hudson's Bay reviewing the offer proposed by Chairman Richard Baker and a group of shareholders has said it was inadequate based on an initial analysis.
JP Morgan, Centerview Partners and Blake Cassels & Graydon are advising Hudson's Bay Co.
Blackstone agreed to acquire 65% of Great Wolf Resorts, a leading owner and operator of family-oriented entertainment resorts, from Centerbridge Partners. As part of the transaction, Blackstone and Centerbridge will form a new $2.9bn joint venture to own the company.
"We are enthusiastic about partnering with Blackstone to continue accelerating the growth of the company. Blackstone is one of the most experienced and successful investors in the hospitality and leisure industries, and is highly supportive of Great Wolf's growth potential and each lodge's ability to provide unparalleled experiences for families." William D. Rahm, a Senior Managing Director and Global Head of Real Estate at Centerbridge.
Citigroup, Goldman Sachs and Simpson Thacher & Bartlett are advising Great Wolf Resorts. Fried Frank Harris Shriver & Jacobson is advising Blackstone. Kekst CNC is advising Centerbridge.
Permira completed its investment in Axiom, the global leader in specialized on-demand legal talent. The deal was announced in September. Financial terms were not disclosed.
"Our industry is in the early days of a complete transformation, away from the historical law firm paradigm toward nimble, technology-powered solutions. Axiom has been leading that transformation, and this partnership is about preparing for faster innovation, more disruption and extending our lead." Elena Donio, Chief Executive Officer of Axiom.
Goldman Sachs and Cooley advised Axiom. Bank of America Merrill Lynch and Skadden Arps Slate Meagher & Flom advised Permira. Barclays provided debt financing and was advised by Weil Gotshal and Manges.
Lantheus, a leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products, agreed to acquire Progenics, an oncology company developing innovative medicines and artificial intelligence to find, fight and follow cancer. Progenics shareholders will receive 0.2502 shares of Lantheus Holdings stock for each share of Progenics stock, representing approximately a 35% aggregate ownership stake in the combined company. The exchange ratio implies a 21.5% premium to Progenics' 30-day volume-weighted average closing stock price.
"Today marks the beginning of an exciting new chapter for Progenics. This combination unlocks additional value for stakeholders and stockholders alike through Lantheus' enhanced resources and R&D capabilities, proven commercial expertise and complementary portfolio of products. The transaction also creates value for Progenics stockholders through a significant premium and the opportunity to participate in the future growth of Lantheus." Mark Baker, Chief Executive Officer of Progenics.
Jefferies & Company, O'Melveny & Myers and Joele Frank are advising Progenics. SVB Leerink, White & Case and Sard Verbinnen & Co are advising Lantheus.
Investment banks have struggled to raise about $2bn of debt for Apollo Global Management's buyout of Shutterfly, which specializes personalized products and services, highlighting investors’ newfound caution toward the riskiest portions of the credit markets. Barclays, Citi and other banks Apollo Global Management hired for the sale agreed to buy up to $280m of the financing themselves after failing to find enough outside investors.
Regulations passed after the 2009 financial crisis require banks to hold expensive cash reserves against junk debt they hold and the banks can lose money if they eventually sell the debt for less than the original purchase price net of fees.
Morgan Stanley, Fenwick & West and Joele Frank are advising Shutterfly. Barclays, Citigroup, Evercore, LionTree Advisors, UBS, SunTrust Robinson Humphrey, Paul Weiss Rifkind Wharton & Garrison and Rubenstein Associates are advising Apollo.
Warburg Pincus agreed to acquire Petplan, a leading pet health insurance provider in North America. Financial terms were not disclosed.
"This investment is a game-changer for Petplan. It enables us to catapult the product innovation and customer experience that our company was founded upon and introduce the very best pet health insurance to millions of pet parents in North America," Paul Guyardo, CEO, Petplan.
Cozen O'Connor is advising Petplan. Wachtell Lipton Rosen & Katz is advising Warburg Pincus.
The Ensign Group, the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health care, hospice care, senior living and other post-acute related companies, completed the spin-off of The Pennant Group. In the spin-off, Ensign stockholders received one share of Pennant common stock for every two shares of Ensign common stock held at the close of business on September 20, 2019.
"We are thrilled to complete the spin-off of Pennant and couldn't be more optimistic about their future and the future of Ensign. This is the second spin-off we have completed in the last five years and believe that this transaction, much like the spin-off of CareTrust REIT in 2014, will be a great long-term benefit to our many stakeholders. Our guiding principle in this transaction has always been to make sure both Ensign and Pennant would not only be very healthy in terms of their balance sheets, but that both would be poised to drive the enormous organic growth potential within all our respective operations while having enough dry powder to continue acquiring and transforming underperforming healthcare operations." Ensign's Executive Chairman, Christopher Christensen.
Bank of America Merrill Lynch and Kirkland & Ellis advised Ensign.
The Chernin Group, a privately held, independent media company, invested $83m in Food52, the premier kitchen and home brand.
"This injection of new capital unlocks tremendous growth opportunities, allowing us to reach new markets, create new retail channels, and invest in technologies that will serve our community better," Amanda Hesser, Food52 Co-founder and CEO.
GCA Altium and Lowenstein Sandler advised Food52. Gibson Dunn & Crutcher advised The Chernin Group.
AVALT, a family office that makes direct private equity investments, agreed to acquire Ned Stevens, a leading provider of residential gutter cleaning and essential exterior home services. Financial terms were not disclosed.
Ned Stevens was founded in 1965 and provides gutter cleaning, soft wash and other related, non-discretionary residential services in 15 states. The company has grown rapidly, fueled by its reputation for high-quality service, expansion into new markets and the addition of complementary service offerings.
"Our management team is very excited about our new partnership with AVALT. Our business has grown quickly and the AVALT team brings all the right skills, experience and expertise to launch us to the next level. Like Ned Stevens, AVALT is a highly collaborative, energetic team with goals and objectives perfectly aligned with ours." Rob Rapuano, Ned Stevens CEO.
Alvarez & Marsal and Ropes & Gray are advising AVALT. Audax Group, Carlyle Global Credit and Twin Brook Capital Partners are providing debt financing.
MI Windows and Doors, a leading manufacturer of precision-built vinyl and aluminum windows and sliding patio doors, agreed to acquire Milgard Windows & Doors from parent company Masco for c. $725m. The deal is expected to close by the end of the year.
The acquisition combines two leading brands in the residential window industry, both born from humble beginnings – MI as an insect screen fabricator and Milgard as a glass shop. Today, MI is well known throughout the eastern and southern United States, while Milgard is one of the most trusted names in the western US.
"This acquisition aligns with our strategies to diversify our product offering, balance the end markets we serve, and expand our presence in growing markets. Milgard's dedication to manufacturing high-quality, market-preferred windows and doors makes it a natural fit for MI, as both companies share a family-first culture where team member and customer satisfaction are top priorities. We are pleased to welcome the Milgard team to the MI family, and we are confident they will help us achieve our Vision to be the most valuable brand in the fenestration industry." Matt DeSoto, MI CEO.
Cable One, an American Internet and cable service provider, closed its $526m acquisition of Fidelity Communications, a family-owned cable operator. The deal was announced in April 2019.
"We are thrilled to welcome Fidelity associates and customers to the Cable ONE family," said Julie Laulis, President and CEO of Cable ONE. "Fidelity is a fantastic geographical, cultural and business fit. Its operating philosophy and customer-centric focus are similar to our own. That, coupled with future growth opportunities within or near our existing footprint, makes this an exciting acquisition."
AssetMark, a leading provider of extensive wealth management and technology solutions, agreed to acquire OBS Financial, an established turnkey asset management platform delivering academically constructed, structured investment strategies to independent advisors, bank Trust officers and their clients. Financial terms were not disclosed.
"This transaction will allow us to give our clients broad access to AssetMark's compelling and curated platform while providing continuity and support of the OBS investment portfolios, accelerating our ability to deliver the comprehensive capabilities to advisors and bank Trust officers who require and deserve these enhanced capabilities. The OBS team is looking forward to working closely with AssetMark to integrate our platforms and provide a market‐leading foundation that is proven to help advisors and Trust officers grow and prosper." John Henry, President and CEO of OBS.
Kong, creators of the leading API and service lifecycle management platform, agreed to acquire Insomnia, a popular open source API testing platform, to expand Kong's portfolio of open source technologies and provide the foundation for the new Kong Studio, an integrated service design and collaboration suite. Financial terms were not disclosed.
"Today, we're delivering the industry's first comprehensive platform for full lifecycle service management to make data available anytime, anywhere from design to production, and function as the nervous system for hybrid- and multi-cloud organizations," Augusto Marietti, CEO and co-founder of Kong.
Next Fifteen Communications Group, a digital marketing and communications group, agreed to acquire the US division of Health Unlimited, a leading global health consultancy and communications agency advancing landmark developments in some of the most complex and challenging areas in health. Financial terms were not disclosed.
"The acquisition is a major milestone for Next Fifteen as it adds another specialist business to the portfolio and greatly expands our international footprint in the healthcare sector. We see significant complementary opportunities for both businesses," Tim Dyson, CEO of Next Fifteen Communications Group.
Moody's Corporation, an American business and financial services company, agreed to acquire ABS Suite Business, a software platform used by issuers and trustees for the administration of asset-backed and mortgage-backed securities programs, from Deloitte, a multinational professional services network. Financial terms were not disclosed.
"The acquisition of ABS Suite deepens Moody's Analytics' presence with issuers of securitized transactions. Adding the expertise and experience of the ABS Suite team to our already formidable capabilities enables us to provide more and better solutions that improve funding decisions, increase operational efficiency and promote transparency and efficiency in the securitization financial markets." Mark Almeida, President of Moody's Analytics.
AmWINS Group, a global distributor of specialty insurance products and services, agreed to acquire Stealth Partner Group, an Arizona-based, independent full-service general agent specializing in medical stop-loss insurance. Financial terms were not disclosed.
"The partnership between Stealth and SLIS will generate incredible value and opportunity for group benefits brokers and their clients. We look forward to working with Rebecca Bocek, Gerry Gates and the entire team at SLIS. Together, our two firms will provide us with unique access to all of the leading stop-loss markets and enable us to build a wide range of other value-added capabilities that support our carrier partners, retail brokers, and their self-funded clients." Harley Barnes, co-founder of Stealth.
Downhole Technology, the leading manufacturer of high-quality, composite frac plugs used in plug-and-perf multizone fracturing operations, and Resource Well Completion Technologies, a leading innovator and developer of market-leading technologies, completed their merger, creating The WellBoss Company. Financial terms were not disclosed. The deal was announced in August.
"This is an incredible opportunity to combine two highly-successful, innovative businesses," said Jeff McNamara, President of Downhole Technology. "WellBoss will be better positioned to increase the velocity of new completion solutions to the market, thereby increasing the value we offer for our oil and gas partners around the world. Our intense focus on solving the oil and gas industry's completion challenges combined with an execution mindset will separate us from the competition and better serve our customers."
HCP, a Real Estate Investment Trust, investing primarily in real estate serving the United States healthcare industry, agreed to acquire the 51% joint venture interest of Brookdale Senior Living, which owns and operates over 1k senior living communities and retirement communities in the United States, for $510m.
"We are pleased with the outcome of this mutually beneficial transaction, which reflects the collaboration and partnership we share with Brookdale. This transaction will allow HCP to improve its operator diversification, as well as strengthen its remaining Brookdale triple-net portfolio." Tom Herzog, President and Chief Executive Officer of HCP.
Wynnchurch Capital, a leading middle-market private equity investment firm, invested in Eastern Metal Supply, a leading value-added distributor of aluminum extrusions and related products. Financial terms were not disclosed.
"We have built and grown EMS by providing our customers with exceptional service, just-in-time delivery and a wide breadth of value-added products. Wynnchurch shares this commitment and we are excited to partner with them as we continue that mission and pursue our next phase of growth," Greg Weekes, President and Co-Founder of EMS.
Relativity Space, the company building the world's first autonomous rocket factory and launch services for satellites, raised $140m in Series C funding round led by Bond and Tribe Capital. The Series C round includes participation by new investors Lee Fixel, Michael Ovitz, Spencer Rascoff, Republic Labs, and Jared Leto, with participation from current investors Playground Global, Y Combinator, Social Capital, and Mark Cuban.
"Relativity was founded with the long term vision of 3D printing the first rocket made on Mars and expanding the possibilities for human experience in our lifetime. With the close of our Series C funding, we are now one step closer to that vision by being fully funded to launch Terran 1 to orbit as the world's first entirely 3D printed rocket. Bond and Tribe are unrivaled partners in leading this funding round, and we are excited to build this important future together with our entire team." Tim Ellis, Cofounder and CEO of Relativity Space.
Broadridge Financial Solutions, a $4bn global Fintech leader, agreed to acquire Shadow Financial Systems, a provider of multi-asset class post-trade solutions for the capital markets industry. Financial terms were not disclosed.
"The acquisition of Shadow Financial Systems is the latest example of Broadridge building upon our industry-leading capital markets solutions. We look forward to bringing real benefits to a new set of market participants as well as new capabilities to our existing client base." Michael Alexander, co-head of North American Wealth and Capital Markets Solutions for Broadridge.
County Bank Corp, the parent company of Lakestone Bank & Trust, completed its merger with ChoiceOne Bank, the parent company of ChoiceOne Bank. The deal was announced in September.
"We received strong shareholder support for this partnership. We believe that the positive shareholder response we received today validates the significant opportunity we see for our collective communities, customers, and employees while adding significant value for the shareholders of our two organizations. With limited overlap and disruption, the combined company will present efficiencies and new growth opportunities in our expanded network across Michigan." Kelly Potes, President and Chief Executive Officer of ChoiceOne Financial Services.
Hub International, a leading global insurance brokerage, agreed to acquire Saskatchewan-based Regency Advisory Corporation, an employee benefits consulting firm that provides innovative and proprietary benefit solutions to move clients to more cost sustainable and value-added benefits programs. Financial terms were not disclosed.
"We continue to build on our efforts to add talented organizations like Regency to boost our employee benefits and pension capabilities in Canada. Regency has been involved in many facets of employee benefits, and will be a great collaborator for innovation and drive client-centric services and solutions." Keith Jordan, President and CEO of Hub International Manitoba.
Beecken Petty O'Keefe and Company, a leading private equity firm focused exclusively on the healthcare industry, invested in Midwest Products & Engineering, a leading design and manufacturing partner to healthcare and technology OEMs. Financial terms of the transaction were not disclosed.
"MPE is proud to be a premier partner to many of the nation's largest medical device and technology OEMs. BPOC's experience in contract manufacturing and the broader healthcare industry is well aligned with our business model and strategy and will allow us to better serve our customers while continuing our rapid growth. I am excited by this new partnership with BPOC and our realizable future together." Hank Kohl, President & CEO of MPE-INC, who will continue to lead the company.
Acadia Professional, one of the nation's largest medical professional liability agencies, agreed to acquire Toro Risk Consulting Group, a highly-specialized healthcare consulting firm that primarily works with emerging companies to support providers in value-based care programs. Financial terms were not disclosed.
"Traditional medical malpractice risk can no longer be viewed in a silo. Toro brings a deeper understanding of value-based care and new market access that allows us to better position our clients from a risk perspective," Scott Parker, President of Acadia.
Oracle, an American multinational computer technology corporation, agreed to acquire CrowdTwist, a privately held company headquartered in New York that provides a SaaS based omni-channel loyalty and analytics platform. Financial terms were not disclosed.
"Oracle is taking a unique approach to the customer data platform space, enabling the application of intelligence across every customer touchpoint. CrowdTwist's leading loyalty platform will significantly augment Oracle CX's ability to help our customers build more meaningful relationships with their customers." Rob Tarkoff, Executive Vice President, Oracle.
Golden Gate Capital intends to sell Angus Chemical. (FS)
Golden Gate Capital, a private equity firm, intends to sell Angus Chemical, a producer of specialty additive chemicals, in a deal valuing the business at more than $1.6bn, Bloomberg reported.
The firm is working with Morgan Stanley and JPMorgan Chase on an auction process for Angus following unsolicited interest from potential buyers.
Cerberus considers acquiring Closure Systems International from Rank Group. (FS)
Cerberus Capital Management considers acquiring Closure Systems International, a packaging firm, from Rank Group, a manufacturing conglomerate, Bloomberg reported.
CSI could fetch $1bn in a sale. A final decision hasn’t been made, and Rank Group could keep the business or sell it to another suitor.
Democrats interested in private equity firms with prison ties. (FS)
Five private equity companies invested in prison services - BlueMountain Capital Management, HIG Capital, American Securities, Apax Partners, and Platinum Equity - are receiving interest from progressive Democrats demanding information about their business practices.
Senator Elizabeth Warren and Representatives Alexandria Ocasio-Cortez and Mark Pocan sent letters to the companies asking them to provide information about their stakes in correctional services, their revenue and if they have paid fees for violating federal or state laws.
Escalate Capital Partners holds a first close of Escalate IV at $282m. (FS, People)
Escalate Capital Partners held a first close of Escalate Capital IV with $282m of capital from returning and new limited partners. Escalate IV’s core investment strategy continues to be lending to venture and growth capital-backed companies within the technology, services, and healthcare industries across the US.
Escalate Capital Partners also declared the hirings of Travis Wood as a Director and Brendan Scher as an Associate, as well as the promotion of Chris Hall to Principal.
“The complementary equity investment strategy expands our toolbox and augments the firm’s 15-year history of providing flexible capital solutions,” Chris Julich, Escalate Capital Managing Director.
Paine Schwartz Partners to close Fund V at $1.4bn. (FS)
Paine Schwartz Partners, a specialist in sustainable food chain investing, closed Paine Schwartz Food Chain Fund V, which has focused on food and agribusiness, with $1.4bn in total capital commitments.
"We are excited about the successful closing of Fund V. This was truly a global capital raising effort, with participation from new and existing limited partners around the world. We have seen an increasing number of institutional investors focused on the food and agribusiness opportunity set, along with the need for sustainability, which is synergistic with driving positive investment outcomes in this sector. We have built a leadership position and successful track record in this area over two decades, and look forward to continuing that execution with Fund V." Kevin Schwartz, Paine Schwartz CEO and a founding Partner.
Venture capital funds to protest against traditional IPOs. (FS)
Venture capitalists and executives from more than 100 startups gather to protest against traditional IPO and promote direct stock exchange listings, Reuters reported.
Among them were Airbnb, which in September declared plans to go public in 2020, is looking at a direct listing, and Poshmark, which in September delayed plans for an IPO until next year.
Other participants included Cohesity, a data storage firm, and Amplitude, a product analytics platform, whose CEO Spenser Skates confirmed he was at the event and would strongly prefer direct listing over an IPO.
HKW to close fund V at $365m. (FS)
HKW, a middle-market private equity firm focused on growth-oriented companies, closed HKW Capital Partners V fund with $365m of total capital commitments. HKW V exceeded its original $350m target.
HKW has completed five investments from Fund V – GCR, Certified Tracking Solutions, Indigo Wild, Urban Armor Gear, and Fresh Direct Produce.
“HKW V will be a continuation of our efforts to identify outstanding businesses with meaningful growth potential, led by talented and partnership-oriented management teams. Seeking to ensure that the interests of all parties are aligned from the start allows us to focus on the best possible outcome for the company, our investors, and for HKW.” Jim Snyder, HKW Partner.
EQT Partners, Abu Dhabi Investment Authority and PSP Investments successfully completed their $10bn acquisition of Nestlé Skin Health unit of Nestle, which provides science-based solutions to meet the specific skin health needs of healthcare professionals, patients and consumers. The business has been rebranded to Galderma. The deal was first announced in May 2019.
"The management and team at Nestlé Skin Health have done an excellent job creating a high-growth, leading dermatology business. I believe that Galderma, as a newly focused pureplay dermatology business, has outstanding prospects built on its existing quality portfolio, team and rich pipeline of innovation. I look forward to working with the talented Galderma team to further build on its success to date." Flemming Ornskov, Galderma's new CEO.
Cleary Gottlieb Steen & Hamilton, Freshfields Bruckhaus Deringer, Weil Gotshal and Manges, Brunswick Group, PwC, Rothschild & Co, Freshfields Bruckhaus Deringer and Kirkland & Ellis advised the buyers. Ramboll, Evercore, Linklaters, Credit Suisse and Greenbrook advised Nestle.
Austrian sensor specialist AMS secured just 25% of Osram, a multinational lighting manufacturer headquartered in Munich which is an object of a takeover battle between AMS and private equity funds Bain Capital and Advent, shortly before its takeover offer was due to expire at midnight. However, it could take several days to determine the total number of shares tendered to the Austrian company by the Tuesday night deadline.
If AMS fails with its offer, it cannot launch a new bid for 12 months, unless Osram and the German regulator give their approval.
Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco and FTI are advising Bain. Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
Rapyd, a global Fintech-as-a-service provider, raised $100m in a financing round led by Oak HC/FT with participation from Tiger Global, Coatue, General Catalyst, Target Global, Stripe, and Entree Capital.
"As financial services become increasingly digitized and global, Rapyd's fintech-as-a-service approach has tremendous growth potential. We're thrilled to back and partner with the Rapyd team as they tackle one of the biggest challenges in financial services by helping businesses navigate the complexity of local and cross-border digital payments." Tricia Kemp, co-founder and managing partner at Oak HC/FT.
Dave Lewis to step down as CEO of Tesco. (People)
Dave Lewis, Tesco's CEO, announced that he is stepping down from his role at Britain's biggest retailer. Ken Murphy, who has held senior positions at the owner of chemist chain Boots, will replace him.
"I believe that the tenure of the CEO should be a finite one and that now is the right time to pass the baton. I am going to take some proper time out, recharge the batteries and think about what comes next." Dave Lewis said.
Aareal considers the scaling of Software Unit sales. (FS)
A second activist investor in Aareal Bank intends to support a full sale of the German real estate lender's software business. Aareal Bank is currently working on a sale of 30% of its software and services division Aareon, Bloomberg reported.
Activist hedge fund Teleios Capital Partners called on the bank to sell the entire business. Analysts have valued the unit at about €550m ($599m).
Selling the software division could help Aareal to deal with difficulties in its UK operations, where non-performing loans for shopping centers have been piling up.
Assicurazioni Generali considers investing in expansion.
Assicurazioni Generali, an Italian biggest insurer, considers investing at least €3bn ($3.3bn) to expand through mid-size acquisitions in insurance and asset management, CEO Philippe Donnet, said.
"I don't believe in big consolidation, because of risk management, regulation. I believe there will be some aggregation in asset management and insurance in Europe - some of the smaller companies won't be able to deal with low-interest rates for so long - definitely, we'll be proactive in these aggregations." Philippe Donnet, Assicurazioni Generali CEO.
HSBC to restructure its markets division.
HSBC has restructured its markets division to improve returns and consider that it views China and emerging markets as the main generators of its future growth.
The changes come eight months after the announcement that Georges Elhedery would lead HSBC’s global markets arm, the division that houses the bank’s trading activities across bonds, foreign exchange and equities.
UK private equity performance rises despite Brexit. (FS)
The UK has improved its already attractive risk-return profile for private equity investors, despite political and economic uncertainty created by Brexit. UK LBO performance figures remained at a similar level in 2018 to that seen the previous year, with an IRR of 15.87% and TVPI of 1.64x.
The more recent vintages of 2009-2015 have seen an exceptional performance, with 19.11% of IRR and TVPI of 1.66x, putting the UK second globally, behind only the Nordics. Extreme selection risk fell markedly, from 42.07% to 34.86%, putting the UK well above the global average and reinforcing the country’s position as an extremely attractive one for LBO investor.
For venture capital, the UK sits exactly on the global market trendline for risk-adjusted returns.
ICG to hire a new Chairman. (FS, People)
Intermediate Capital Group has appointed Mervyn Davies, a former Labour minister and Standard Chartered CEO, to lead its board.
Davies will replace outgoing chair Kevin Parry. Mervyn Davies currently also holds the roles of senior independent director at Diageo and chairman of private equity firm Corsair Capital.
Private equity rising in Italy according to Freeman Spongli chairman. (FS)
Ronald P. Spogli, co-chairman of Freeman Spongli, a private equity firm dedicated to investing with management in middle market companies in the consumer and distribution sectors, wrote in an article that the private equity industry has been very active in Italy for well over a decade, as the country abounds in successful small and medium-sized enterprises.
The market capitalization of domestic stock exchanges relative to GNP is low in Italy versus other G-7 countries, and, historically, successful businesses have generally remained private, closely-held, and been passed down to future family generations. In recent decades, a side effect of lower birth rates in the Bel Paese and a waning interest of younger family members to remain involved in the family business, has been a smaller pool available to inherit and run such businesses. Private equity has stepped in and become a popular way for owners to solve intra-generational ownership issues and provide liquidity for selling shareholders.
Martin Gilbert to step down from Standard Life Aberdeen. (People)
Gilbert would not seek re-election to the board at the company’s next annual general meeting and would retire on 30 September 2020.
Safilo is not aware of acquisition interest from Kering.
Safilo, an Italy’s eyewear maker, said it is not aware of any acquisition interest from French luxury group Kering, after Italian daily MF reported that Kering could be looking at it as a possible target.
CVC Capital looking to acquire IronSource for $450m. (FS)
CVC Capital Partners is close to acquiring a 25% stake in IronSource, an Israeli advertising technology firm, for at least $450m. The company is valued at $1.55bn, Reuters reported.
IronSource offers monetization and distribution solutions for app developers, software developers, mobile carriers, and device manufacturers.
Ubi Banca considers a merger.
Ubi Banca, an Italian lender, considers the possibility of a merger with other mid-sized banks such as MPS, BPER Banca and Banco BPM.
“Those are all dossiers that a bank like Ubi should examine one by one, even just to rule them out.” Domenico Genta, Chairman of Fondazione Cassa di Risparmio di Cuneo, the foundation which holds around 6% of Ubi's capital.
Jingye prepares a new bid for British Steel.
Jingye, a Chinese steelmaking group, has approached ministers with a renewed trial to buy British Steel, a UK's second-biggest steel producer, amid talks over a rescue led by Turkey's military pension fund.
Jingye did participate in the earlier phase of the British Steel sale process but has withdrawn its interest.
Helios Towers to set up a $1.8bn London IPO.
Helios Towers, an African mobile network operator, valued its IPO from $1.42bn to $1.79bn, Reuters reported.
Helios considers a free float of at least 25% of the company, with a listing on the London Stock Exchange, and will use the proceeds for expanding its services, including possibly into new countries, Helios Towers said.
SoftBank-backed investment company Fortress Investment Group said it had extended its tender offer for Japanese hotel operator Unizo to Oct. 17 and said that it had not proposed a change to employment conditions.
Fortress's bid for Unizo, originally a "white knight" offer, was thrown into doubt last week when Unizo withdrew its support for the $1.3bn offer, saying Fortress had not met concerns about employment and working conditions of current employees.
Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young are advising Unizo.
Goldman Sachs Group to appoint new M&A leaders in Asia business. (People)
Goldman Sachs Group named Raghav Maliah and Jung Min as new leaders for its M&A business in Asia ex-Japan as John Kim joined the buyout firm Carlyle Group. As part of the reshuffle, Sushil Bathija, co-head of Southeast Asia, will also be part of the M&A team for Asia ex-Japan, Bloomberg reported.
Pierre Chu and Weigang Li will remain as co-heads of China M&A.
RRJ Capital to bid $716m for PLUS Malaysia. (FS)
RRJ Capital, a consortium led by Asian private equity groups, has reportedly offered to buy PLUS Malaysia, the country’s most prominent expressway toll firm, for MYR3bn ($716m), Reuters reported. RRJ would cut toll rates by 20% across the board after a successful acquisition, RRJ said.
PLUS Malaysia is 51% owned by engineering infrastructure and services firm UEM Group, which is a wholly-owned subsidiary of Khazanah and 49% by state pension fund EPF.
“There have been several proposals on toll highways. Khazanah itself has submitted its own proposal to the government. Ultimately, it is up to the government to consider these proposals and decide what is best for the country and the people.” Khazanah said.
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