The US Federal Trade Commission granted approval for Occidental’s proposed $57bn deal to buy Anadarko Petroleum Corporation, a company engaged in hydrocarbon exploration. The deal was first announced in April. Occidental won the bidding battle for Anadarko against Chevron Corp, another integrated oil & gas company. The deal is expected to close in the second half of 2019.
Anadarko is advised by Evercore, Goldman Sachs, Vinson & Elkins and Wachtell Lipton Rosen & Katz. Occidental is advised by Bank of America Merrill Lynch, Citigroup and Cravath Swaine & Moore.
Crane, a diversified manufacturer of highly engineered industrial products, said that it is willing to change the terms of its $894m buyout offer for Circor if the company engages in talks. Circor designs, manufactures, and markets engineered products and sub-systems worldwide. In an open letter to Circor’s board, Crane said it was committed to pursuing an all cash buyout at $45 per share but was willing to adjust the price if Circor provided “sufficient justification.”
Wells Fargo and Skadden Arps Slate Meagher & Flom are advising Crane.
Bonaccord Capital Partners, a division of Aberdeen Standard Investments, acquired a minority stake in MSouth Equity Partners, a leading lower middle market private equity firm. Financial terms were not disclosed. BCP will provide capital to support the future growth of the firm and the development of strategic initiatives.
“MSouth has established itself as a leading firm in lower middle market private equity. Their differentiated sourcing capabilities in the South and strong operating expertise provide a uniquely positioned and sustainable platform for investment success. We believe that MSouth’s track record of strong performance, prudent growth and institutional stability position it for continued success into the future. We look forward to actively partnering with MSouth to support their long-term strategic objectives." Ajay Chitkara, Bonaccord Capital Partners Head.
MSouth Equity Partners was advised by DC Advisory and Kirkland & Ellis. Bonaccord Capital Partners was advised by Fried, Frank, Harris, Shriver & Jacobson.
Angeles Equity Partners, a private investment firm, agreed to acquire APCT, a leading manufacturer of highly reliable, quick-turn printed circuit board prototypes with global production management capabilities. Angeles is partnering with APCT management with the aim of accelerating the company’s profitable growth, pursuing accretive bolt-on acquisitions, expanding global production capabilities, and driving systems integration and investment. Financial terms of the transaction were not disclosed.
“APCT is a leading provider of advanced quick-turn PCB prototypes for many of the world’s leading aerospace and defense, industrial, and consumer electronics companies,” said Timothy Meyer and Jordan Katz, Co-founders and Managing Partners of Angeles Equity Partners. “We are excited to partner with the APCT team, which has a long and successful history of executing a differentiated business model in this sector. We believe this is a compelling opportunity to leverage our firm’s strategy, M&A, and operational capabilities to help APCT realize its full potential.”
Lincoln International and Finn Dixon & Herling advised APCT. Massumi + Consoli advised Angeles Equity Partners.
Atlanta-based group purchasing organization Procurement Advisors, which specializes in the sourcing of maintenance, repair, and operating supplies and corrugated materials, received a strategic investment from Bregal Sagemount, a private equity firm. Financial terms were not disclosed.
"We are very excited to bring in the Sagemount team as a strategic and financial partner," commented Suja Katarya, CEO and Managing Partner at PA. “We have a tremendously exciting future ahead of us as we grow our membership base, strengthen our technology and processes, and expand into new product categories to drive maximum value for our members. The investment from Sagemount will allow us to further accelerate our innovations in the MRO space.”
Kirkland & Ellis advised Procurement Advisors. Goodwin Proctor advised Bregal Sagemount.
Olympus Partners, a private equity firm, acquired 3D Corporate Solutions, a manufacturer of premium and specialty protein ingredients used to make pet food. Financial terms were not disclosed.
"The 3D management team is really excited to partner with Olympus to continue to serve our customers and grow our business. Olympus is the right partner to help 3D execute on expansion opportunities going forward." Scott Clawson, 3D CEO.
Olympus was advised by Kirkland & Ellis. 3D was advised by Harris Williams & Co.
Kinderhook-backed Bestop, a truck accessories store in Louisville, Colorado, acquired Colorado-based Softopper, a leading designer, manufacturer and distributor of convertible soft tops for light-duty pickup trucks and SUV’s. Financial terms were not disclosed.
Tom Tuttle, Managing Director of Kinderhook Industries, stated: “The acquisition of Softopper will continue Bestop’s “buy-and-build” strategy of acquiring premium brand names in niche categories serving the automotive aftermarket. Softopper also enhances Bestop’s growing suite of premium products designed specifically for light-duty pickup trucks.”
Monroe Moxness Berg advised Bestop. Antares Capital provided financing.
Groupe Mach, a real estate developer in Montreal, Canada, offered to acquire Transat AT, an international, vertically integrated tour operator, for $393m. The price represents a premium of 18.2% to the last stock closing price. The offer topped the one made by Air Canada, the flag carrier and the largest airline of Canada.
Vincent Chiara, President & CEO of Mach, stated: "We are excited about the potential synergies between our companies in which the leading integrated international tourism model of Transat could be combined with Mach's vast experience in overseeing the construction, ownership and management of complex real estate development projects in a cost-effective manner and its on-going initiatives at modernizing the leisure travel experience."
Morgan Stanley is advising Air Canada.
Nagase, a diversified Japanese chemical trading firm, agreed to acquire Prinova Group, one of the world's largest manufacturers and distributors of nutritional ingredients for the global food and wellness industries. Financial terms were not disclosed.
“This acquisition marks a significant milestone in our continued effort to expand Nagase Group’s global footprint in a high value-added business,” said Kenji Asakura, President and CEO of Nagase Group. “The addition of Prinova’s expertise, unique positioning, and portfolio offering enables us to expand our food and nutrition ingredients value chain in North America, Europe and also in Asia.”
Lazard is advising Prinova Group.
OTB, Renzo Rosso's fashion group, agreed to invest in Amiri, a luxury fashion brand. Financial terms were not disclosed.
OTB has been looking at several investment opportunities, and previously disclosed that it plans to fuel growth through investments totaling $225m over the next three years.
Rothschild & Co advised Amiri.
Providence Strategic Growth, the growth equity affiliate of Providence Equity Partners invested in ThreatConnect, provider of the industry’s only intelligence-driven security operations platform. Financial terms were not disclosed.
This growth investment is intended to help continue the ThreatConnect Platform’s path of innovation and further the company’s continued leadership in its market. The new funding is aimed at accelerating ThreatConnect’s go-to-market strategy, supporting further development of the Platform, and expanding its ability to build a successful community of customers and partners.
"Our vision for the digital transformation of businesses through software aligns well with ThreatConnect’s vision for intelligence-driven security. Security software is one of the priority sectors for PSG, and we are excited to have found a high-quality organization. We look forward to working with Adam and the rest of the ThreatConnect leadership team to accelerate what is already a successful and fast-growing organization.” Gopi Vaddi, PSG Managing Director.
Sophos, a global leader in network and endpoint security, agreed to acquire Indiana-based Rook Security, a pioneer and leader in managed detection and response services. Financial terms were not disclosed.
“Rook Security provides managed detection and response services to detect and eliminate cyber threats. Through threat hunting and data analytics, Rook Security’s experts rapidly detect and mitigate active attacks,” said J.J. Thompson, founder and CEO, Rook Security. “We are excited to bring our experts and service delivery innovation to Sophos, a global leader in next-generation cybersecurity. Together, we can implement faster, more effective threat detection and response capabilities to better protect businesses.”
Serent Capital, a private equity firm focused on investing in software and services businesses, invested in The Professional Companies, the leading provider of home healthcare benefits management services. Financial terms were not disclosed.
"We are highly impressed by the business that Laura and the TPC team have built and humbled that they selected Serent as their partner. TPC's leadership in the home healthcare management space, with improved health outcomes for patients and proven value to its marquee health plan customers, make TPC a perfect fit for our investment focus. We are also fortunate to have an executive of Brian's caliber to lead TPC as the company executes on the growth opportunities ahead,” said David Kennedy, Serent Capital Partner.
Susquehanna Growth Equity, a private equity firm, invested $115m in Real Capital Analytics, a global leader in commercial real estate data and analytics.
“This investment marks a new stage in our evolution and positions RCA for continued growth well into the future. My team and I are confident that SGE will provide tremendous support, expertise, and financial flexibility to RCA.” Bob White, RCA’s founder and CEO.
Morgan Stanley Capital Partners-backed Manna Pro, a St. Louis-based manufacturer and marketer of pet care and nutrition, agreed to acquire Dallas-based Hero Pet Brands, a company that provides solutions to pet owner needs including nutrition, grooming, waste pickup and cleanup. Financial terms were not disclosed.
“Hero Pet Brands has a leading product portfolio that perfectly complements our current offering and enables us to grow in scale in the thriving companion pet care and wellness category,” said John Howe, CEO, Manna Pro. “Our companies share a relentless focus on enriching the lives of pets and their families and we welcome their deep pet care expertise, brand building excellence and talented employee base.”
LyondellBasell terminated talks to buy Braskem.
Reuters reported that LyondellBasell, a public multinational chemical company, terminated its talks with Odebracht to buy Braskem, a Brazilian petrochemical company. The potential $11bn deal for Braskem slowed due to issues linked to a delayed US filing and a supply contract for naphtha with Petrobras. Odebrecht, which has been trying to restructure after being implicated in Brazil’s sweeping “Car Wash” scandal, had been discussing the deal with Lyondell for more than a year and a half.
The end of the talks to sell Braskem complicates the restructuring efforts of the highly indebted conglomerate. Two of its units, Odebrecht Engenharia e Construcao, and ethanol unit Atvos, are already restructuring debt. Atvos has filed for bankruptcy protection last week.
Part of BRF board resisted merger talks with Marfrig.
Management at Brazilian food processor BRF met with resistance from a minority of its board to talks on a potential merger with Marfrig, the second largest Brazilian food processing company. The deal would create one of the world’s largest meat producers. The companies announced on Thursday they were discussing a potential deal.
Dissenters questioned how a tie-up would fit with the strategy of Chairman and Chief Executive Pedro Parente to cut debt, sell assets and restructure operations after a string of losses.
China Three Gorges considers buying EDP's Brazil assets.
China Three Gorges Corporation, a Chinese state-owned power company, is weighing a deal to gain control of EDP-Energias de Portugal’s Brazilian business. Three Gorges is considering merging its own Brazilian assets with EDP’s operations. The company may seek a majority stake in the combined entity. The talks are reportedly at an early stage.
Gravity Oilfield to acquire Pyote water disposal assets. (FS)
Gravity Oilfield Services, an oil field services provider and a portfolio company of Clearlake Capital Group, acquired certain water disposal assets from Pyote Water Systems, an oil & natural gas company in Midland, Texas. Financial terms were not announced.
“The strategic acquisition of the Pyote facilities brings additional scale to Gravity’s extensive footprint in the core of the Midland Basin, and further expands its current water infrastructure operations in the Delaware Basin,” said Rob Rice, Chief Executive Officer of Gravity. “We are excited to leverage these new locations as we bring our customer-focused approach to our growing base of relationships. Gravity remains committed providing leading water infrastructure offerings in the most attractive domestic oil plays.”
WindRose Health recapitalized Lykan Bioscience. (FS)
WindRose Health Investors, a healthcare private equity firm, said that it recapped Lykan Bioscience Holdings, a manufacturing services organization that provides production and logistics solutions for pharmaceutical and biotech companies focused on cell and gene therapies. Financial terms were not disclosed.
“We are excited to be partnering with Tony and the rest of Lykan’s highly experienced management team,” said CJ Burnes, Partner with WindRose. “Lykan represents an attractive opportunity for WindRose to support a differentiated and emerging platform that provides high quality, complex cell and gene therapy manufacturing solutions for a growing, but capacity-constrained market.”
Covington Associates and Greenberg Traurig advised Lykan. McDermott Will & Emery advised WindRose.
FloSports raised $47m in a Discovery-led funding round. (FS)
Live sports streaming service FloSports raised $47m in a financing round led by Discovery, an American mass media company. Other current investors that participated included Causeway Media Partners, Fertitta Capital and DCM Ventures. Strategic investors included World Wrestling Entertainment and Bertelsmann Digital Media Investments, a unit of Bertelsmann.
“We are excited to continue building on the momentum of our recent strong growth, including our best quarter ever,” FloSports CEO & Co-Founder Mark Floreani said. “With this new round of funding from our investors, we will further enrich underserved sports communities by broadening our existing coverage and expanding into new verticals.”
Crestview gathered $1.9bn for its fourth fund. (FS)
Crestview Partners amassed almost $1.9bn for its fourth flagship fund, according to an SEC filing. The private equity firm currently manages around $8bn, making investments across the media, financial services, energy and industrial sectors. Its previous portfolio companies include Samson Resources and Charter Communications.
GenNx360 secured over $298m for its third fund. (FS)
GenNx360 Capital Partners raised over $298m for its third fund, according to an SEC filing. The target is $800m. The New York City-based private equity firm invests in middle-market industrial and business services companies.
