AMERICAS
Edgewell Personal Care completed the acquisition of Cremo for $235m.
Edgewell Personal Care, a pure-play consumer products company, completed the acquisition of Cremo, a premier men's grooming company, for $235m.
"We are very pleased to complete the acquisition of CREMO, which adds one of the strongest and most rapidly expanding brands in men's grooming to our business. The men's grooming category remains a strategic focus for Edgewell and this acquisition will help us accelerate growth and strengthen our position in the fastest growing categories in men's grooming," Rod Little, Edgewell President and CEO.
Cremo was advised by Goldman Sachs and Latham & Watkins. Edgewell was advised by Perella Weinberg Partners and Wachtell Lipton Rosen & Katz.
Advent-backed Sovos Brands completed the acquisition of Birch Benders from BFG Partners. (FS)
Advent International-backed Sovos Brands, a food company, completed its acquisition of Birch Benders, a just-add-water food products producer, from BFG Partners, a venture capital firm specializing in early-stage food, beverage and consumer products. Financial terms were not disclosed.
"Working with Matt, Lizzi and the Birch Benders team for the last six years has been rewarding both personally and professionally. We were lucky to partner with Birch Benders as a very early-stage company and have been impressed by their brand vision, thoughtful innovation and the ability to champion an exceptional leadership team," Tom Spier, BFG Partners Founder and Managing Partner.
Birch Benders was advised by Piper Sandler and Haynes and Boone. Sovos Brands was advised by Weil, Gotshal & Manges and M Booth.
Providence Strategic Growth, a middle-market software investor, agreed to invest in Semarchy, a disruptive provider of master data management software. Financial terms were not disclosed.
"Semarchy’s commitment to its customers and to the market has always been about agility, excellence, and innovation. With PSG, we have found a trusted partner that allows us to drastically improve our growth trajectory while accelerating investment in our product capabilities and in the support of our clients. The Intelligent Data Hub vision developed by Semarchy will benefit from the significant capital and operational expertise of PSG,” Salah Kamel, Semarchy Founder & CEO.
Semarchy is advised by L2 Counsel. Providence Strategic Growth is advised by Weil Gotshal and Manges and Sard Verbinnen & Co.
Zebra Technologies completed the acquisition of Reflexis Systems for $575m. (FS)
Zebra Technologies, a provider of enterprise-level data capture and automatic identification solutions, completed its acquisition of Reflexis Systems, a privately-held provider of intelligent workforce management, execution, and communication solutions, from private equity firms Great Hill Partners and Sageview Capital for $575m.
"The acquisition of Reflexis Systems fits squarely within our Enterprise Asset Intelligence vision of making every worker and asset at the edge connected, visible and fully optimized. Combining Reflexis’ market-leading platform with our complementary software offerings provides us the unique opportunity to unify the store associate experience and empower every front-line worker to execute the best next action. We are excited to welcome the Reflexis team to the Zebra family," Anders Gustafsson, Zebra Technologies CEO.
Reflexis Systems was advised by Goodwin Procter. Zebra Technologies was advised by Kirkland & Ellis.
Graycliff Partners, an investment firm focused on making lower middle market investments, completed its acquisition of Gerard Daniel Worldwide, a manufacturer and distributor of wire mesh and other wire products. Financial terms were not disclosed.
“Gerard Daniel has evolved into an impressive global competitor in wire mesh applications over its 70-year history. We are excited to partner with the team through this next iteration of expansion,” Andrew Trigg, Graycliff Partners Managing Partner.
Graycliff Partners was advised by MiddleM Creative.
Quest Software, a global systems management and security software provider, agreed to acquire Binary Tree, a provider of computer programming services. Financial terms were not disclosed.
“With the integration of our technologies and vast experience with their Power365 Active Directory and Power365 Tenant-to-Tenant solutions we are able to deliver more value faster to our customers and partners which is increasingly important as the market and business continues to evolve,” Patrick Nichols, Quest CEO.
Binary Tree is advised by Fairmount Partners.
JMD Properties completed the acquisition of Stella Diagnostics. (FS)
JMD Properties, a property management company, completed the acquisition of Stella Diagnostics, a molecular diagnostics-based organization focused on improving patient management strategies. Before the acquisition, an investor in biotech Keystone Capital provided the foundational seed capital for Stella Diagnostics. Financial terms were not disclosed.
"The Company is confident that a move into the diagnostic sector of the biotech industry will be beneficial both to our investors and to all those suffering from serious esophageal disease which is an underserved and ever-growing patient population in the US and abroad," Daniel Wainstein, JMD Properties Chairman of the Board.
Keystone was advised by ICR.
Bunzl completed the acquisition of MCR Safety.
Bunzl, the specialist international distribution and services group, completed the acquisition of MCR Safety, a personal protection equipment and other safety products distributor. Financial terms were not disclosed.
"The acquisition of MCR Safety is an important development for Bunzl. It is a high quality business with a strong leadership team and well established portfolio of own brand products which will complement our existing product range and significantly strengthen and expand our safety operations both in the US and elsewhere," Frank van Zanten, Bunzl CEO.
Bunzl was advised by Tulchan Communications.
Gestion Audem rejected the $7.8bn bid for Cogeco.
Gestion Audem, the Audet family holding company and the largest shareholder in Cogeco, rejected the $7.8bn bid from a broadband communications and video services provider Altice USA.
"Members of the Audet family unanimously reiterated that they are not interested in selling their shares," Louis Audet, Gestion Audem President.
Lodo Therapeutics completed the acquisition of Hibiskus BioPharma.
Lodo Therapeutics, a biotechnology company, completed its acquisition of Hibiskus BioPharma, an early-stage pharmaceutical venture pursuing the development of novel small-molecule cancer therapy. Financial terms were not disclosed.
"This is our second targeted transaction at Lodo and reflects our disciplined acquisition strategy based on the extensive experience of our senior team in executing value-creating transactions. We believe these novel proteasome inhibitors are an excellent fit for Lodo. They are derived from natural products and have the potential for improved efficacy and therapeutic index compared to existing proteasome inhibitors, a mainstay of multiple myeloma treatment. Early studies conducted at the NCI and elsewhere suggest that LODO-141 may have utility in treating solid tumors. We intend to assess its potential as a single agent and also in combination with cancer immunotherapy," Dale Pfost, PhD, Lodo Chairman and CEO.
Align Capital-backed Alliance Holdings to acquire emissions monitoring division of Bureau Veritas. (FS)
Align Capital-backed Alliance Holdings, an environmental services platform, agreed to acquire emissions monitoring division of Bureau Veritas, a provider of testing, inspection, and certification services. Financial terms were not disclosed.
“The opportunity to partner with EM’s experienced leadership, managers and technical team members expands our core competencies, deepens Alliance customer relationships and provides a powerful platform for future growth,” Chris LeMay, Alliance CEO.
Enterprise Holdings, an owner of rental services companies Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car, completed the acquisition of Discount Car and Truck Rentals, a Canadian car and truck rental company serving customers across Canada. Financial terms were not disclosed.
"We are excited about and encouraged by the long-term opportunities for diversification and innovation this acquisition brings. Through a broader fleet of cars and trucks of all sizes and an expanded portfolio of services – from airport service car rentals to neighborhood leisure and moving truck rentals – the acquisition allows us to enhance our ability to meet the unique mobility needs of Canadian customers and offer more efficient service," Steven Tudela, Enterprise Holdings Senior Vice President of Canadian Operations.
TSR, a provider of information technology consulting and recruiting services, completed the acquisition of Geneva Consulting Group, a provider of temporary and permanent information technology personnel. Financial terms were not disclosed.
"We believe this acquisition fits very well with TSR's new Board of Directors' overall strategic vision of accelerating growth and improving returns for shareholders," Thomas Salerno, TSR CEO.
Superior Plus, an energy distribution and specialty chemicals company, completed the acquisition of Rymes Propane and Oil, a retail propane and heating oil distribution company. Financial terms were not disclosed.
"We're looking forward to expanding our footprint in the New Hampshire and New England propane markets and growing our business in these attractive markets in the Northeast US," Andy Peyton, Superior President.
Michael Jordan makes a bet on DraftKings.
Michael Jordan’s love of gambling once threatened to overshadow his legacy. Now the billionaire is embracing the growing online gaming industry as part of his personal investment portfolio, Bloomberg reported.
Jordan is the latest owner of a major US sports franchise to push into the gambling space, joining New England Patriots owner Robert Kraft and Dallas Cowboys owner Jerry Jones. The NBA legend is receiving an equity interest in DraftKings in exchange for his role as a special adviser to the online sports-betting company’s board of directors, a move that sent the company’s high-flying shares even higher.
Airbnb caught interest from Ackman's blank-check company.
Billionaire investor William Ackman has approached short-term home rental company Airbnb about going public through a reverse merger with his blank-check company, Reuters reported.
The discussions are currently not moving ahead and Airbnb is prioritizing going public through a traditional IPO this year in what would be one of 2020's most high-profile stock market debuts. The approach by Ackman's Pershing Square Tontine Holdings underscores the scale and ambition of the types of deals Ackman is pursuing with the new vehicle, which raised $4bn through an IPO on the NYSE earlier this year to buy a private company.
J.C. Penney lenders consider cooperating with outside bidders. (FS)
The lenders steering J.C. Penney's bankruptcy are considering joining forces with an outside bidder to buy the retailer after efforts to line up an independent owner stalled.
The plan envisions the hedge funds that hold J.C. Penney’s loans would become co-owners of a business they never planned to run, in partnership with a third party that could include one of the potential buyers they’ve been wooing, Bloomberg reported.
The lender group was already set to take over most of J.C. Penney's real estate at the outset of the bankruptcy case. This would have involved spinning the properties into a real estate investment trust and selling the rest of the retailer to the highest bidder.
VW-backed QuantumScape prepares for $3.3bn IPO.
QuantumScape, the 10-year-old Silicon Valley battery startup backed by Volkswagen, said it plans to go public through a reverse merger with Kensington Capital Acquisition, a blank check company, with an enterprise value of $3.3bn, Reuters reported.
San Jose-based QuantumScape, a 2010 spinout from Stanford University, said it will form a joint venture with VW to produce solid-state battery cells, starting in 2024, for VW’s electric vehicles, and eventually for other carmakers.
“Our ambition is to be a (battery) supplier to the industry as a whole,” Jagdeep Singh, QuantumScape Founder and CEO.
EMEA
Elaghmore-backed Hexcite, a single, all-encompassing entity that can provide brands and retailers with the breadth of products and services, agreed to acquire Blaze Signs, the UK’s signage business. Financial terms were not disclosed.
“We are delighted to be joining forces with the Hexcite Group businesses and are excited about accelerating the growth and development of Blaze by working closely with numerous likeminded colleagues, who understand the vital importance of innovation, quality and first class service for our many retail and brand owning customers,” Clive Knight, Blaze Signs CEO.
Elaghmore is advised by Arbuthnot Latham, KPMG, Mills & Reeve and Squire Patton Boggs.
CVC does not intend to takeover Capita. (FS)
CVC Capital Partners has no plans on the takeover of Capita, an international business process outsourcing and professional services company, and eyes only certain units of the firm, Reuters reported.
The private equity firm mulls the acquisition of Education Software Solutions unit of Capita, the value of which could reach $664m.
CVC reportedly refrains from acquiring businesses in need of turnaround after the damages caused by Covid pandemic to preserve cash.
Novo Banco never sold assets to Lone Star. (FS)
Portugal's Novo Banco, which emerged from the ruins of the collapsed Banco Espirito Santo, denied that it sold assets to its main shareholder, Lone Star, a US private equity fund, after some politicians suggested it had.
The bank, which is 75% owned by Lone Star since October 2017 and 25% by the state-backed Portuguese Resolution Fund, has recently been embroiled in a controversy over the sale of non-performing assets.
"Novo Banco has never made any sale of (non-productive) assets to Lone Star. What is going on are just false controversies," Antonio Ramalho, Lone Star CEO.
Dana Gas in discussions with IPR Energy on Egypt assets sale.
United Arab Emirates' Dana Gas is negotiating details of a sale of its Egyptian assets with Texas-headquartered IPR Energy, Reuters reported, ahead of repayment of some $300m in debt in October.
The energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq - was hoping to raise over $500m from the sale, but it will likely yield significantly less. Dana has said it would use the sale proceeds to pay $309m in outstanding Islamic bonds, or sukuk, due at the end of October.
DP World and CDPQ plan $4.5bn investments in port terminals. (FS)
DP World and Caisse de Depot et Placement du Quebec have agreed to invest an additional $4.5bn in their global portfolio of port terminals.
The Dubai-based ports operator and Canadian pension fund manager announced the injection of the funds into their existing venture in a statement, Bloomberg reported.
“We will further diversify our geographic reach and look to seize new opportunities in a sector that, even during a uniquely challenging period, is driven by long-term fundamental trends,” Emmanuel Jaclot, CDPQ Executive Vice-President and Head of Infrastructure.
Munich Private Equity Partners launches €250m fund-of-funds. (FS)
Munich Private Equity Partners has launched its fourth buyout-focused fund-of-funds with a €250m ($300m) target. The announcement comes a month after the Germany-based firm held a final close at €162m ($197m) of its third strategy, PE Insights reported.
MPEP IV targets private equity fund investments in Europe and North America with a focus on buyout capital investments in the mid-market.
"For these funds the current situation resulting from the corona pandemic could present a favourable opportunity to acquire companies at relatively lower entry prices and benefit from an economic recovery post Covid-19," Christopher Bär, MPEP Managing Director.
APAC
SK Engineering & Construction, a construction engineering company, agreed to acquire EMC Holdings, a waste treatment platform provider, from Affirma Capital, an emerging market private equity firm, for $885m.
EMC was the highest-priced business among three waste disposal companies that had been for sale in 2020 so far. Companies were attractive due to favorable pricing in depressed M&A market despite high prospects for growth.
Affirma Capital is advised by Citigroup.
Amazon, Verizon consider investing over $4bn in Vodafone Idea.
Verizon Communications, US wireless carrier, and Amazon may invest more than $4bn for a stake in India's Vodafone Idea, Reuters reported.
The struggling Indian telecom firm's shares rose as much as 30%. The news comes days after India's top court ruled that mobile carriers must settle government dues within 10 years, giving Vodafone Idea some reprieve in a case it had said could affect its ability to continue as a going concern. Vodafone Idea's stake-sale talks had been paused pending the court ruling, but Amazon and Verizon are now set to resume them.
Aspiring TikTok buyers consider four options in effort to revive talks.
TikTok's prospective buyers are discussing four ways to structure an acquisition from its Chinese owner ByteDance, which include buying the app's US operations without key software after Beijing stalled a deal which could be worth $30bn, Reuters reported.
Other options being considered to include asking for Chinese approval to pass TikTok's algorithm on to the acquirer of the short video app's US assets, licensing the algorithm from ByteDance, or seeking a transition period from a US national security panel overseeing the deal.
"TikTok is loved by 100m Americans because it's a home for entertainment, self-expression, and connection. We're committed to continuing to bring joy to families and meaningful careers to those who create on our platform for many years to come," TikTok spokeswoman.
Kakao Games records South Korean Investors' Mania for IPOs.
Retail investors were so keen to get their hands on shares of South Korean game developer Kakao Games during its IPO that they put in tens of billions of dollars of orders for a $323m deal, Bloomberg reported.
Individual investors submitted orders for 1.5k times the amount of stock made available to them with $48.8bn in bids, according to SK Securities in a note. At Korea Investment & Securities, one of the lead arrangers for the deal, its mobile trading system for retail investors was halted for 20 minutes as users piled in for the deal.
"Frankly, I’m not sure if it’s right to give high multiples to Kakao Games. But the point is those kinds of growth stocks are so hot in Korea. No one can estimate exactly the valuations of these kinds of stocks. This is a party with liquidity," Jeon Kyung-dae, Macquarie Investment Management Korea Chief Investment Officer.
JP Morgan considers boosting stake in China securities venture to 71%.
JP Morgan is poised to raise its ownership in its Chinese securities joint venture to 71%, bringing it a step closer to becoming the first foreign bank to attain full ownership of a firm as the country opens its $49tn financial market, Bloomberg reported.
The bank has emerged as the qualified buyer of a 20% stake put up for sale by Shanghai Waigaoqiao FTZ as the other existing shareholders gave up their rights to add to their holdings. The stake will be sold for $26m. The remaining shareholders also agreed to not transfer or dispose of their holdings without approval from the US bank, which currently controls 51%.
KKR bet on Japan property. (FS)
KKR is doubling down on its operations in Japan, betting that the Covid-19 pandemic has opened up new opportunities in a country that was already its richest source of potential deals in Asia, FT reported.
The US private equity firm is planning to participate in a wave of transactions generated by railway companies, manufacturers and other corporations with substantial but underused property and land assets, according to Hirofumi Hirano, the Head of KKR in Japan.
"Real estate as a hard asset is becoming too expensive but KKR has a role to play on the operational front to create synergies for real estate and infrastructure," Hirofumi Hirano, KKR Head of Japan.
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