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AMERICAS
General Atlantic, a global growth equity firm, and Dragoneer Investment, a public and private investor, completed the acquisition of Arco Platform, a developer of educational software, for $1.5bn.
The per share merger consideration represents a 55% premium over the closing price of $9.04 per Share on November 30, 2022, the last trading day before the company disclosed receipt of the bidders' proposal to acquire all of the public shares.
The US Federal Trade Commission has sent a second request to Chevron and Hess, for additional information and documentary materials related to their $53bn deal, Reuters reported..
US lawmakers have sought increased scrutiny by the FTC over multi-billion dollar deals. Last month, US Senate Majority Leader Charles Schumer and 22 other Democratic senators had written to the agency saying such acquisitions could lead to higher prices for consumers.
Honeywell, a technology and manufacturing company that offers energy, safety, and security solutions and technologies, agreed to acquire the global access solutions business from Carrier, an intelligent climate and energy solutions provider, for $4.95bn.
"Honeywell's strong track record delivering building automation products and services makes this a natural fit that will create a leading security platform with forecasted annual revenue in excess of $bn. By leveraging the capabilities of the combined company's advanced security and safety systems, customers will be able to maximize their performance, efficiency and cost-effectiveness and create long-term, sustainable value," Vimal Kapur, Honeywell CEO.
Honeywell is advised by Evercore, Simmons & Simmons, Skadden Arps Slate Meagher & Flom (led by Allison Schneirov and Alexandra McCormack) and Womble Bond Dickinson. Carrier is advised by Goldman Sachs, JP Morgan, Linklaters and Paul Weiss Rifkind Wharton & Garrison (led by Laura Turano).
Ember Infrastructure, a private equity firm, completed the acquisition of H2O Innovation, a water and wastewater treatment company, for $395m.
"Closing this transaction marks the start of an exciting chapter for H2O Innovation, as we continue our expansion with the resources and expertise that our new partners at Ember can bring to the company and our customers. Together, we are well positioned to accelerate our organic growth and make strategic acquisitions that will further enhance our customer offering, enabling them to more efficiently use and protect our shared water resources," Frédéric Dugré, H2O Innovation Co-Founder, President and CEO.
H2O Innovation was advised by Desjardins, Scotiabank and Norton Rose Fulbright. Ember Infrastructure was advised by Raymond James, Davies Ward Phillips & Vineberg and Weil Gotshal and Manges (led by Michael J. Aiello and Eoghan Keenan). CDPQ was advised by Blake Cassels & Graydon. Investissement Québec was advised by Fasken.
AMETEK, a provider of industrial technology solutions, completed the acquisition of Paragon Medical, a provider of highly engineered medical components and instruments, from American Securities, a private equity firm, for $1.9bn.
"We are excited to welcome the Paragon team to AMETEK. Paragon's outstanding capabilities and market leadership align seamlessly with AMETEK's commitment to delivering high-performance solutions, further broadening our presence in the attractive MedTech industry," David A. Zapico, AMETEK Chairman and CEO.
Paragon Medical was advised by Jefferies & Company and Piper Sandler. American Securities was advised by Hunton Andrews Kurth, Weil Gotshal and Manges and Prosek Partners.
Wilshire, a global financial services firm, completed the acquisition of Lyxor Asset Management, an investment advisor, from Amundi, an asset manager. Financial terms were not disclosed.
"The alternatives space is a key area of strategic focus for Wilshire and an important part of many investment portfolios. This acquisition furthers our goal of delivering innovative alternative investment solutions to our client base and will provide Lyxor US clients with access to Wilshire's asset allocation and investment research insights, portfolio construction capabilities, and more. Together with Lyxor US's leading alternatives platform and talented team, we will have an enhanced ability to deliver compelling investment opportunities for our clients," Jason Schwarz, Wilshire Deputy CEO and President.
Wilshire was advised by Solomon Partners, Kirkland & Ellis (led by April Larkin and Lauren Colasacco) and Prosek Partners. Amundi was advised by PJT Partners and Clifford Chance.
WITHit, a reading accessory and wearable tech accessory verticals manufacturer, completed the acquisition of Mighty Bright, a reading light accessory brand. Financial terms were not disclosed.
"Mighty Bright has been making great reading lights for nearly 40 years, and we look forward to carrying on their tradition of success in serving their incredibly dedicated and loyal customer base," David Nelson, WITHit CEO.
Mighty Bright was advised by Mayfair Associates and Stradling Yocca Carlson & Rauth. WITHit was advised by Strategic Law Partners and BPM-PR.
INEOS, a producer of ethylene and propylene based chemicals, agreed to acquire the Ethylene Oxide & Derivatives business and production facility from LyondellBasell, a multinational chemical company, for $700m.
"We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its Ethylene Oxide & Derivatives business into the US, which is the world's largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana. There is free land on the Bayport Underwood site for INEOS' growth aspirations and it is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform. We look forward to welcoming the business, site and team of very professional and highly motivated people into the global INEOS group," Tobias Hannemann, INEOS Oxide CEO.
MG Properties, a real estate investment and management company, completed the acquisition of Bear Valley Park Apartments, a garden-style community, from Jackson Square Properties, a private real estate investment company, for $76m.
"This investment reflects our confidence in Denver's economic growth potential and allows us to further leverage the efficiency of our regional operations there. As a stabilized property in a high-quality submarket, Bear Valley Park is an excellent fit for our long-term investment strategy," Jeff Gleiberman, MG Properties President.
MG Properties was advised by JLL Corporate Finance (led by Charles Halladay). Debt financing was provided by Fannie Mae. Jackson Square Properties was advised by JLL Corporate Finance (led by Jordan Robbins).
Southfield Capital-backed Kelvin Group, an industrial and commercial mission-critical mechanical services company, completed the acquisition of Advanced Examination Services, a provider of non-destructive testing services for the petroleum, chemical and agricultural industries. Financial terms were not disclosed.
"We are excited to welcome the AES team into the Kelvin Group family of brands. Their reputation for delivering innovative technical services is a testament to their unparalleled expertise and unwavering commitment to safety and client satisfaction. This partnership presents an exciting opportunity for us to leverage AES's advanced non-destructive testing solutions, benefiting Kelvin's refrigeration customers, while concurrently fortifying HCG Associates' compliance offerings," Harry Gray, Kelvin Group CEO.
Kelvin Group was advised by G2 Capital Advisors and Finn Dixon & Herling. Debt financing was provided by Deerpath Capital Management.
Blackstone, a private equity firm, completed the acquisition of Power Grid Components, an electric power grid equipments manufacturer, from Shorehill Capital, a private equity firm. Financial terms were not disclosed.
"Our leadership team is thrilled to be partnering with Blackstone, a leader in energy transition investing. We believe Blackstone will be an outstanding strategic partner in helping us achieve long-term growth while continuing to supply essential components with outstanding quality, reliability and lead times to North America's electrical utilities," Rick McClure, Power Grid Components CEO.
Power Grid was advised by Lincoln International and Katten Muchin Rosenman. Blackstone was advised by Jefferies & Company.
Digital Realy, a provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, and Blackstone, a private equity firm, agreed to form a joint venture, in a $875m deal. Blackstone will acquire an 80% ownership interest in the joint venture for approximately $700m of initial capital contributions, while Digital Realty will maintain a 20% interest.
"By partnering with Blackstone, the world's largest alternative asset manager, Digital Realty is better able to deliver capacity to meet the burgeoning demand of our hyperscale customers, by accessing a deep pool of likeminded private capital. Digital Realty is focused on executing on the sizable opportunity that lies ahead and this partnership helps to accelerate the monetization of nearly 20% of our industry-leading land bank," Andy Power, Digital Realty President and CEO.
Digital Realy is advised by Latham & Watkins. Blackstone is advised by Simpson Thacher & Bartlett (led by Anthony Vernace and Michael Chao).
Stonepeak Partners, an American investment firm, Lineage, a Boston-based private equity firm, and Losa Group, an investment company in Guatemala, led a $500m investment in Emergent Cold LatAm, a provider of refrigerated storage and logistics in Latin America and the Caribbean.
“This equity raise validates the strength of our investment thesis and demonstrates our investors’ confidence in the Company’s business and management team. We proudly advance our mission to reshape the future of food chain logistics across Latin America for the benefit of our customers, employees and the communities where we invest," said Neal Rider, Emergent Cold LatAm CEO.
Emergent Cold LatAm was advised by JP Morgan and Latham & Watkins.
The US Federal Trade Commission is examining the nature of Microsoft's investment in OpenAI and whether it may violate antitrust laws, Bloomberg reported.
The inquiries are preliminary and the agency hasn't opened a formal investigation.
Hull Street Energy, a private equity firm, completed the acquisition of EF Oxnard, a nominal 48 MW simple cycle, gas-fired facility, from Atlantic Power & Utilities, a power generation and infrastructure company. Financial terms were not disclosed.
"The EF Oxnard plant and its excellent employees will be a high-quality addition to Hull Street Energy's transition. Hull Street Energy looks forward to working with employees and stakeholders to provide efficient, reliable support for California grid operations as the region continues to decarbonize," Hull Street Energy.
Hull Street Energy was advised by Troutman Pepper. Atlantic Power & Utilities was advised by Sidley Austin.
Brown & Brown, an insurance services provider, completed the acquisition of ABS Group, a risk and compliance management services provider. Financial terms were not disclosed.
"We are excited about the synergies this partnership will bring to our business. Brown & Brown's full suite of leading insurance programs and automotive F&I products will enable us to provide new value-added solutions to our aftermarket customers," Michael Cox, ABS Group CEO.
ABS Group is advised by Houlihan Lokey.
Nearmap, a location intelligence and aerial imagery solutions provider, agreed to acquire Betterview, a property intelligence and risk management platform in the insurance industry. Financial terms were not disclosed.
"The Nearmap acquisition of Betterview is transformative for the industry. Integrating the Betterview platform and AI solutions into the Nearmap technology stack will enable better visualization of the truth on the ground with a richer, more powerful set of AI capabilities that combine the best of both companies. This is a significant milestone in our ongoing efforts to innovate solutions for insurance carriers, and expand our presence within the property and casualty space," Andy Watt, Nearmap CEO.
Betterview was advised by Jefferies & Company.
KKR, a global investment firm, and Hellman & Friedman, an American private equity firm, led a $90m investment in Ajax Health-backed Cortex, a medical technology company developing an integrated mapping and ablation solution suite for the treatment of atrial fibrillation, with participation from AI Life Sciences and Access Industries.
"Cortex's vision is to enable more intelligent AFib treatment. We are developing solutions that prioritize precision, simplicity, and efficiency to simultaneously improve patient outcomes and lower procedural cost," Duke Rohlen, Ajax Health and Cortex CEO.
Indiana Center for Recovery, a provider of addiction treatment and mental health services, completed the acquisition of the former St. Vincent Hospital. Financial terms were not disclosed.
"We are excited about this expansion. The acquisition of the former St. Vincent Hospital not only strengthens our footprint but also enhances our ability to offer comprehensive, integrated care. This facility will provide much-needed mental health and addiction treatment services to the greater Bedford community," Cheyenne Riker, Indiana Center For Recovery General Counsel.
Ferrero in advanced talks to acquire Michel et Augustin from Danone.
Ferrero, a manufacturer of chocolate and confectionery products, is in advanced talks to acquire Michel et Augustin, a French brand of food products, from Danone, a food products conglomerate.
The proposed transaction will be submitted to the relevant employee representative bodies for consultation and is expected to close in the coming months, subject to customary closing conditions. The planned acquisition would improve Ferrero's position in France and mark the latest purchase in the premium biscuits market.
Danone is advised by Nomura.
Stone Point, General Atlantic propose to buy remaining stake in HireRight. (FS)
Stone Point Capital and General Atlantic proposed to buy the shares the investment firms do not already own in employee-screening company HireRight, Reuters reported.
The proposed transaction is for a price per share equal to $12.75 in cash, a near 3% discount to HireRight's last closing price.
Stone Point and General Atlantic are HireRight's largest shareholders with a combined 74.8% of its stock.
China power giant weighs bid for Chile’s Transelec stake.
China Southern Power Grid, the country’s second-largest electricity supplier, is considering a bid for the stakes held by Canadian pension funds in Transelec, Bloomberg reported.
The Chinese state-owned utility, which already holds almost 28% of Chile’s biggest power-transmission company, is working with a financial adviser as it evaluates a potential offer. One of the options under consideration is a joint bid with a strategic partner in a move to ease regulatory concerns in the Chilean market.
Carlyle’s Rubenstein is in talks to acquire Baltimore Orioles. (FS)
Carlyle Group co-founder David Rubenstein is in talks to acquire Major League Baseball’s Baltimore Orioles, Bloomberg reported.
Rubenstein is among suitors pursuing a transaction. Nothing has been finalized and talks may still fall apart.
Both majority and minority stakes in US sports teams have continued to change hands, driven in part by owners looking to cash in on rising valuations, and a perception among investors, following the pandemic, that live sports remain a hit with viewers.
Bankrupt trucker Yellow rejects offer to revive operations.
Defunct cargo hauler Yellow rejected a long-shot offer to revive the bankrupt company, Bloomberg reported.
Yellow has been out of business for several months, is nearing the end of an auction process for its most valuable property, and the competing offer is unlikely to cover the cost of the company’s bankruptcy case.
The auction is set to bring bring creditors at least $1.9bn. That could be enough to pay all the company’s bills and still leave something for shareholders.
Shari Redstone weighs options for Paramount as Skydance eyes bid for studio.
Paramount Global’s controlling shareholder has held talks about a sale of the legendary Hollywood studio and other assets to Skydance, the production company behind Top Gun: Maverick, Financial Times reported.
Skydance, whose shareholders include the Ellison family and RedBird Capital Partners, has emerged as a leading contender to take over Redstone’s National Amusements, which has a controlling stake in Paramount.
The conversations were at a very early stage and there was no certainty they would lead to a deal. Other parties were also interested in acquiring some of Paramount’s assets.
Sotheby’s ditches IPO strategy after picking bankers. (IPO)
Sotheby’s, the auction house owned by French-Israeli telecoms billionaire Patrick Drahi, has quietly stepped away from plans for an initial public offering, a prospect it once considered seriously enough to pick bankers for a US listing, Bloomberg reported.
With almost 300 years in business, New York-based Sotheby’s has been taken on and off the public market through successive owners. Drahi took the company private when he bought it for $3.7bn in 2019, ending Sotheby’s three-decade run as a public company. Last year Sotheby’s was once again exploring an IPO, selecting Goldman Sachs Group and Morgan Stanley as bankers.
EMEA
TA Associates-backed Elos Medtech, a development and manufacturing partner for medical devices, completed the acquisition of Klingel Medical Group, a manufacturer of metal products for medical technology, from IK Partners, a European private equity firm, for €370m ($399m).
"Elos is the exact image of Klingel. The focus is on the same values such as down-to-earthness, short decision-making paths, sustainable growth, and securing jobs for employees. I am pleased that we have arrived in a safe harbor together, combining our strengths for a great future with the new company," Ralf Petrawitz, Klingel Co-CEO.
Klingel Medical was advised by Jefferies & Company. Elos Medtech was advised by Rothschild & Co and Lenz & Staehelin.
Permira, a private equity firm, agreed to acquire GGW Group, an insurance brokerage firm, from Hg Capital, a private equity firm. Financial terms were not disclosed.
"The backing from the Permira funds marks an important milestone and yet we are only at the very beginning of GGW's success story. We are looking forward to working with Permira and are excited about the future as we continue to grow in Germany and expand further across Europe. Thanks to my fantastic colleagues we have surpassed all of our expectations, and quickly become a leading commercial insurance distribution platform in Germany and other European countries. The partnership with Hg has been a core pillar for our success," Tobias Warweg, GGW Group CEO.
SPIE, a multi-technical services provider in the areas of energy and communications, agreed to acquire an 85% stake in Correll Group, an engineering, installation, and maintenance services provider in the offshore wind sector. Financial terms were not disclosed.
"The acquisition of Correll Group is a significant milestone for SPIE Oil & Gas Services and its diversification strategy towards renewable energies, in addition to the emblematic contracts previously signed by the Group in the offshore wind sector. Our new name, SPIE Global Services Energy, perfectly highlights this strategic focus and demonstrates the Group's commitment and determination to take a leading role in the global transition towards low-carbon energy," Christophe Bernhart, SPIE Managing Director of Oil & Gas Services.
SPIE is advised by Agence Droit Devant and Image Sept.
Rovio applies for the delisting of its shares from Nasdaq Helsinki.
The Board of Directors of Rovio Entertainment has resolved to apply for the termination of public trading in the shares of Rovio and for the delisting of its shares from the official list of Nasdaq Helsinki.
Sega Europe holds more than 90% of the issued and outstanding shares in Rovio. Sega has on September 29, 2023 initiated redemption proceedings in respect of the minority shares in Rovio in order to obtain ownership of all the issued and outstanding shares in Rovio by serving its application to appoint an arbitral tribunal and to initiate arbitration proceedings.
Banijay pulls out of race for All3Media.
Banijay, the French TV production group owned by FL Entertainment, has pulled out of talks to buy British rival All3Media, Reuters reported.
All3Media's joint owners, Liberty Global and Warner Bros Discovery, are instead pursuing a deal with another buyer with the hopes of agreeing a deal by Christmas. Bidders submitted binding offers for the "Fleabag" and "The Traitors" maker last month, with the owners seeking a price of around £1.3bn ($1.64bn).
Sports Streamer DAZN explores raising as much as $1bn. (FS)
DAZN Group, the sports streaming platform backed by billionaire Len Blavatnik, is exploring ways to raise fresh funding as it seeks to accelerate its global expansion, Bloomberg reported.
London-based DAZN has held early conversations with potential advisers about raising capital and could move forward with a process as soon as the coming months. It’s considering raising as much as $1bn.
APAC
SRIVARU Holding, a provider of premium electric motorcycles in India, went public via merger with Mobiv, a blank check company, in a $409m deal.
"We are excited to announce this transformative transaction, which we believe will not only drive significant value for stockholders, but has the potential to transform the Indian and global electric vehicle markets. We believe SRIVARU’s state-of-the-art technologies, low-cost manufacturing, expanding distribution channels and attractive price points for consumers are poised to disrupt the motorcycle market in both India and around the world," Peter Bilitsch, Mobiv CEO.
SRIVARU Holding was advised by ACP Capital Markets, Norton Rose Fulbright and SRI Solutions. Mobiv was advised by EF Hutton, J. Sagar Associates (led by Rupinder Malik), Winston & Strawn (led by Michael J. Blankenship) and Crescendo Communications.
Max Healthcare, India's largest private healthcare provider, agreed to acquire Starlit Medical Centre, a hospital, for $113m.
"We are excited about this acquisition, which is in line with our strategy to enter new Tier I / II cities which have a developed healthcare services ecosystem. Given our track record of successful postmerger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients," Abhay Soi, Max Healthcare Chairman and Managing Director.
Max Healthcare is advised by AZB & Partners.
Japan life insurer Dai-Ichi Life said it plans to launch a higher tender offer for healthcare platform Benefit One in a competing bid against M3, Reuters reported.
Benefit One's parent company Pasona Group had already agreed to tender all of its 51.16% stake in the subsidiary unit to digital healthcare provider M3, which launched its tender offer last month. Dai-Ichi Life said it plans to offer $12.39 per Benefit One share against M3's bid of $11, first buying up the shares Pasona does not own and then buying the 51.16% of shares held by Pasona, so as to take the company private.
Dai-Ichi Life is advised by Morgan Stanley.
Jensen Hughes, a professional engineering and consulting services company, completed the acquisition of Warringtonfire Australia, a fire testing and fire safety engineering consulting firm, from Element Materials Technology, a provider of product compliance and qualification testing services. Financial terms were not disclosed.
"This is a win-win for Jensen Hughes and for our new colleagues coming from Warringtonfire Australia. Fire safety engineering is integral to our core service mix. This acquisition significantly enhances our capability in this area and brings a NATA and ISO- accredited Fire Testing Laboratory into our operations. On behalf of our worldwide team, I'm delighted to welcome our new Warringtonfire Australia colleagues to Jensen Hughes and our growing global family!" Raj Arora, Jensen Hughes CEO.
Aggrieved Russian retail investors demand SPB Exchange recover their assets.
Around a dozen aggrieved retail investors met with the senior management of Russia's SPB Exchange, demanding the recovery of their foreign currency assets blocked by US sanctions, Reuters reported.
Washington's restrictions were blocking more than two thirds of clients' foreign currency funds and the rest would be transferred to them in roubles.
Woodside, Santos could sell assets to overcome merger antitrust hurdles.
Santos shares jumped on the prospect of a possible $52bn merger with bigger Australian rival Woodside, valuation will be key, while domestic asset sales are likely to be needed to overcome competition concerns, Reuters reported
Woodside and Santos confirmed speculation they were in preliminary talks to create a major oil and gas company, which together would have assets in Australia as well as Alaska, the Gulf of Mexico, Papua New Guinea, Senegal and Trinidad and Tobago.
Japan’s Tsuruha draws interest from Bain, Blackstone, KKR. (FS)
Private equity firms including Bain Capital and Blackstone are considering bids for Japanese pharmacy chain Tsuruha Holdings, Bloomberg reported.
KKR & Co is also among those that have expressed interest for the Tokyo-listed company, which has a market value of about $4.1bn. Deliberations are ongoing and the buyout firms could still decide against proceeding with offers.
Wanda sweetens offer to mall unit’s backers to delay repayment. (FS)
Dalian Wanda Group has sweetened a proposal for pre-IPO investors in its mall operating unit to postpone a repayment for not listing shares in the entity this year, Bloomberg reported.
The Chinese conglomerate is offering to give new shares in Zhuhai Wanda Commercial Management Group to the investors in a step that could lead to billionaire Wang Jianlin potentially giving up control in the unit.
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