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AMERICAS
Angelo Gordon-backed AG Mortgage Investment Trust, a real estate investment trust, completed the acquisition of Franklin Resources-backed Western Asset Mortgage Capital, an externally managed REIT that invests in, finances, and manages a portfolio of real estate-related securities, for $300m.
“The completion of the WMC acquisition marks a significant milestone for MITT in achieving its growth and scale initiatives. We are confident that we will maximize the synergies inherent in this transaction to deliver long-term risk adjusted returns to our stockholders,” TJ Durkin, AG Mortgage Investment CEO.
US antitrust enforcers are investigating Exxon Mobil’s plan to acquire Pioneer Natural Resources, which would be the largest oil-and-gas deal in two decades, WSJ reported.
The Federal Trade Commission has sought additional information from the companies about the deal, a step it takes when reviewing whether a merger could be anticompetitive under US law.
American Industrial Partners, a private equity firm, agreed to acquire restraint control systems business from SSW-backed Veoneer, a provider of automotive technology. Financial terms were not disclosed.
"We are pleased to announce this transaction with AIP, who bring a differentiated operating skillset alongside long-term capital that present a compelling platform for Veoneer's future growth, We are grateful for our loyal customers, supplier partners, and our dedicated employees, whose relentless pursuit of quality and innovation has created a leading platform of life-saving technology," Jacob Svanberg, Veoneer CEO.
American Industrial Partners is advised by Baker Botts and Ropes & Gray. Veoneer is advised by Evercore, Morgan Stanley, Baker Botts, Davis Polk & Wardwell and Eversheds Sutherland.
American Pacific Group, a San Francisco Bay Area-based private equity firm, completed the acquisition of Spark Power, an end-to-end electrical services provider, for $140m.
“We want to thank our employees, customers, and vendors, for their support in helping to build and shape Spark Power into the industry-leading organization it is today. Going forward, we are excited to be partnering with APG to execute our next chapter of growth. APG’s invaluable experience and support will help accelerate our ability to scale and better serve our key markets,” Richard Jackson, Spark Power CEO.
Spark Power was advised by MPA and Bennett Jones. American Pacific was advised by Jones Day (led by Joseph Hatina) and Stikeman Elliott.
Rockhold-backed Equity Bancshares, a bank holding company, agreed to acquire Bank of Kirksville, a financial services provider, for $44m.
“We couldn’t be more pleased to add another strong community bank to our network and continue to serve our Missouri customer base with additional locations, technology, and customized solutions for businesses and families. Our teams continue to work diligently to add customers, colleagues, and market locations within our four-state footprint, and we’re pleased to enter Kirksville and serve a vibrant customer base,” Brad Elliott, Equity Bancshares Chairman & CEO.
Bank of Kirksville is advised by The Capital Corporation. Equity Bancshares is advised by Stephens and Norton Rose Fulbright. Rockhold is advised by Stinson.
Riverside-backed ToolWatch, a construction operations solutions provider, completed the investment in busybusy, a time tracking software developer. Financial terms were not disclosed.
“ToolWatch’s mission is to create powerful tools that help contractors better understand and navigate an increasingly complex business landscape. busybusy’s record of innovation in time tracking for field-based workers is an ideal complement to the ToolWatch suite of construction operations solutions. Thanks to Riverside’s partnership, ToolWatch continues to aggressively build out its platform capabilities, most recently adding an integrated EHS module. Workforce management is the logical next step, since bringing these capabilities together creates safer, more efficient job sites,” Jay Martin, ToolWatch CEO.
The Riverside Company was advised by Jones Day (led by Jason R. Grove).
Ares Management, a private equity firm, and Kam Ghaffarian, a Founder of X-energy, led a $235m Series C round in X-energy with participation from Ontario Power Generation, Curtiss-Wright, Daelim Industrial and Doosan Enerbility.
“We are grateful to all of our investors for supporting X-energy and advancing our mission to meet growing energy demands facing the world today with clean, safe, affordable, and reliable solutions. We are proud of the technology advancements our team has developed and are excited about the market opportunities expected to underpin our growth going forward. Combined with our technological advantages and strategic customer and investor collaborations, X-energy is poised to generate value and execute our growth strategy,” Kam Ghaffarian, X-energy Founder and Executive Chairman.
Mercer, a consulting firm, agreed to acquire outsourced chief investment officer business from Vanguard, an investment advisor. Financial terms were not disclosed.
“Vanguard’s differentiated investment philosophy, strength in the not-for-profit sector, and client-centric approach complements our global capabilities across OCIO and managing alternative asset classes,” Marc Cordover, Mercer US Investments and Retirement Leader.
Sun Capital-backed Platinum Dermatology, a clinical dermatology platform, agreed to merge with Skin & Cancer Associates of Florida, a provider of dermatology services. Financial terms were not disclosed.
"Having SCA as part of Platinum represents a major milestone for us. This partnership is yet another example of the highest quality physicians in our specialty choosing to align with an organization deeply committed to delivering an exceptional experience to its patients and providers through a materially differentiated culture and innovative resources," Michael Pennington, Platinum Dermatology CEO.
US power utility Allete explores sale.
Allete, a US power utility and renewable energy developer that has a market value of about $5.2bn, including debt, is exploring a sale of the company, Reuters reported.
Allete is working with JP Morgan Chase on a sale process that has attracted suitors that include infrastructure funds and buyout firms.
Allete shares jumped 9% on the news to $61.22 in afternoon trading in New York on December 5, giving the company a market capitalization of about $3.5bn. Allete also had net debt of about $1.7bn as of the end of September.
Call center software firm Five9 approached on potential takeover.
In a statement December 5, the San Ramon, California-based company said it “was approached with such an opportunity” but is not pursuing a transaction.
Elon Musk's AI firm xAI files to raise up to $1bn in equity offering. (FS)
Elon Musk's artificial intelligence startup xAI has filed with the US securities regulator to raise up to $1bn in an equity offering, Reuters reported.
The company has raised $135m in equity financing from a total offering amount of $1bn, the filing with the Securities and Exchange Commission showed.
Fundraising for AI remains a bright spot for startups this year, following OpenAI's launch of popular chatbot ChatGPT last year and raising of $10bn from its strategic backer Microsoft Regulators, however, are concerned about the potential use of the technology to spread misinformation.
Airbnb appoints Ellie Mertz as new CFO. (People)
Airbnb appointed Ellie Mertz, an 11-year veteran of the short-term rental company, as its new CFO, WSJ reported.
Mertz succeeds Dave Stephenson, Airbnb’s CFO since 2019, who was promoted to become the company’s chief business officer, a newly created role.
“Under her leadership, our company grew from adolescence to adulthood, with revenue growing over 100x. Ellie’s superpower is that she combines a comprehensive knowledge of our business with impeccable judgment,” Brian Chesky, Airbnb CEO and Co-Founder.
Ex-Silicon Valley Bank startup banking chief joins law firm Orrick. (People)
US law firm Orrick, Herrington & Sutcliffe on December 5 said it has hired the ex-head of startup banking at Silicon Valley Bank, which was a top lender to tech startups before it collapsed earlier this year, as a managing director of its technology company and fund relationships, Reuters reported.
The former executive, Lewis Hower, said he wants to offer Orrick's clients advice that goes beyond traditional legal services. Startups and other clients "need good counsel" as they face evolving regulations and other challenges.
EMEA
Danaher, a global science and technology innovator, completed the acquisition of Abcam, a global supplier of protein consumables, for $5.7bn.
"We couldn't be more excited to have Abcam join Danaher. Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio positions them as a key partner for the scientific community. We look forward to welcoming Abcam's innovative and talented team to Danaher as we continue to help our customers solve some of the world's biggest healthcare challenges," Rainer M. Blair, Danaher President and CEO.
Trive Capital, a private equity firm, agreed to acquire Ten Entertainment Group, a bowling centers company, for £287m ($362m).
"Trive is delighted to have reached agreement with the TEG Board with respect to the Acquisition. We have been extremely impressed by the TEG management team and TEG's ability to deliver a high quality customer experience across its locations in the UK," Shravan Thadani, Trive Capital Partner.
HENSOLDT, a defence supplier, agreed to acquire ESG, an IT service management, from Armira Beteiligungen, a private equity firm, for €675m ($733m).
“The acquisition of ESG is an excellent fit with our overall strategy and accelerates HENSOLDT’s development as a solution provider for defence and security. By combining highly complementary capabilities from HENSOLDT and ESG, we are taking a decisive step towards becoming a leading European provider of seamlessly integrated solutions. This will put us in an ideal position to meet the existing and future requirements of our customers around the world,” Thomas Müller, HENSOLDT CEO.
HENSOLDT is advised by Deutsche Bank, Gleiss Lutz and Hengeler Mueller. Armira Beteiligungen is advised by Rothschild & Co and Hengeler Mueller (led by Hans-Jorg Ziegenhain and Daniel Moritz).
Eco Modular, a modular construction company, agreed to go public via SPAC merger with Zalatoris II Acquisition, a special purpose acquisition company, in a $600m deal.
"I'm filled with immense passion for the modular manufacturing industry and the transformative impact we've had since our inception. We've been on a mission to simplify processes and bring cutting-edge technology to the manufacturing landscape. The integration with Zalatoris II is not just a milestone; it's a testament to our unwavering dedication. Looking ahead, I believe the potential of the modular market over the next 10-20 years has never been stronger. I'm excited about the journey ahead, the innovation we'll drive, and the lasting mark we'll make in this dynamic industry," Edvinas Cinga, Eco Modular Co Founder and CEO.
Eco Modular is advised by J. Streicher, Calabrese Consulting and Arthur Cox. Zalatoris II Acquisition is advised by Meteora Capital and Nelson Mullins Riley & Scarborough.
Yum! Brands, an American multinational fast food corporation, agreed to acquire 218 KFC restaurants from EG Group, a British retailer. Financial terms were not disclosed.
“The KFC business is a powerhouse for Yum! globally and the UK and Ireland is one of our strongest markets. Over the past five years, we’ve secured our leadership position within the UK and Ireland chicken market, opening 200 new restaurants, and we’re now close to being a £2bn business in the UK, thanks to our extremely talented local management team. We’re pleased to add these restaurants to our equity portfolio, in a market where we are well placed to drive strong growth while also making further digital and strategic progress,” Sabir Sami, Yum! Brands KFC Division CEO.
Yum! Brands is advised by Headland Consultancy (led by Edward Young).
Russia's Sberbank to invest over $4.8bn in IT in next three years.
Russia's top lender Sberbank will invest more than RUB450bn ($4.84bn) in IT in the coming three years, its financial chief said on December 6, as the bank continues its push to develop domestic technology solutions.
CEO German Gref, placed artificial intelligence and digital transformation at the heart of the bank's new three-year strategy, as Russia adjusts to life without Western technology after sanctions over the conflict in Ukraine, Reuters reported.
Nissan, Mitsubishi confirm plans to invest in Renault EV unit Ampere.
Renault's long-standing alliance partners Nissan and Mitsubishi confirmed plans to invest in the French car maker's electric vehicle unit Ampere and use it to develop EVs for the European market, Reuters reported.
After years of contentious partnership, the announcement on December 6 confirms that the new alliance between the three automakers is smaller and more pragmatic, focusing on regional cooperation.
Spirits giant Diageo seeks to sell beer portfolio on margin concerns.
Diageo is seeking to divest its beer portfolio on margin concerns, except flagship brand Guinness, Reuters reported.
The company is looking to sell beer brands including Smithwick's, Kilkenny and Harp Lager, based in Ireland, and Tusker in Kenya, among others. Its beer brands were a margin drag on the rest of the business.
Brentford, Premier League's data success story, is open to potential offers.
Matthew Benham, the owner of Brentford FC, is considering potential offers for a stake in the Premier League team. The London-based club is set to appoint a bank to advise on the sale, Bloomberg reported.
While not as well known as larger rivals such as Manchester United and Everton FC, which have also been up for sale, Brentford has been an unmitigated success story in one of football’s most competitive competitions, thanks in part to a sporting strategy engineered on the west coast of America.
APAC
Australian fund manager Perpetual rejects $2bn bid from top investor. (FS)
Australian fund manager Perpetual on December 6 rejected a AUD3.1bn ($2bn) takeover offer from its largest shareholder, diversified investor Washington H Soul Pattinson, saying the proposal undervalued its business, Reuters reported.
WHSP has a 9.9% stake in Perpetual. Its proposal came hours after Perpetual announced that it was looking at splitting off its corporate trust and wealth management businesses from its core asset management division.
Toyota to sell entire stake in Japan's Harmonic Drive Systems.
Toyota Motor will sell its entire stake in the company Harmonic Drive Systems, a Japanese maker of speed reducers, in the open market overseas, Reuters reported.
The move could fan hopes among investors that Toyota will accelerate sales of shareholdings in affiliates and partners following last week's announcement it would divest a stake in supplier Denso, a pillar of the Toyota.
Japan's Rakuten to raise up to $433m with further sale of bank unit.
Rakuten Group said on December 6 it plans to sell a large stake in Rakuten Bank to overseas investors, its latest fundraising effort as the Japanese company grapples with heavy debt and losses at its mobile network unit, Reuters reported.
The planned sale of 25.5m shares is equivalent to just under 15% of the online bank, according to LSEG data.
Fosun Weighs FFT stake sale at $1.6bn value.
Fosun International is exploring options including a minority stake sale in German automatic manufacturing solutions provider FFT, which could be valued at about €1.5bn ($1.6bn) in a deal, Bloomberg reported.
The Chinese conglomerate has reached out and gauged interest from potential investors. Fosun may look to list the holding company of FFT — Shanghai Easun Technology — in China in the next three years though the plan remains at an early stage.
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