AMERICAS
Blackstone Group completed its acquisition of Bellagio, a resort, luxury hotel and casino on the Las Vegas Strip in Paradise, Nevada, from MGM Resorts, an American global hospitality and entertainment company, for $4.25bn. As part of the transaction, MGM Resorts will lease the property and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis.
“This transaction confirms the premium value of our owned real estate assets, highlights the unique value of Bellagio as a premier asset in gaming and solidifies our status as a premier operator of gaming and entertainment properties. We look forward to partnering with Blackstone on this asset and believe that this transaction will create significant value for our shareholders,” Jim Murren, MGM Resorts Chief Executive Officer.
Blackstone was advised by Citigroup, Morgan Stanley and Simpson Thacher & Bartlett. MGM was advised by JP Morgan, PJT Partners and Weil Gotshal and Manges. Citigroup, JP Morgan and Morgan Stanley provided financing to Blackstone.
Paulson, a Callon Petroleum shareholder, said it would not oppose the US shale producer’s purchase of smaller rival Carrizo Oil & Gas, after the company sharply cut its offer last week. The new terms value Carrizo at about $723m, compared with the original proposal of $1.2bn in July.
Billionaire investor John Paulson’s hedge fund, which had earlier said the deal was too expensive, also reduced its stake in Callon but did not give any details on its latest holding. Paulson holds 9.5% in the company, Reuters reported.
Carrizo is advised by Lazard, RBC Capital Markets, Baker Botts, O'Melveny & Myers, Sard Verbinnen & Co, and Gibson Dunn & Crutcher. Callon is advised by JP Morgan, Kirkland & Ellis, Davis Polk & Wardwell, and Joele Frank. Debt financing is provided by Bank of America Merrill Lynch and JP Morgan.
Vista Equity Partners, an investment firm, agreed to acquire a majority stake in Sonatype, the company that scales DevOps through open source governance and software supply chain automation. Financial terms were not disclosed.
“Vista’s standing as the preeminent investment firm and their commitment to growth and innovation perfectly aligns with our passion for helping businesses build software faster and more securely. This acquisition is a testament to our outstanding team and clear validation of our vision, strategy, and execution in empowering developers to leverage the power of open source, while optimizing the hygiene of their software supply chain,” Wayne Jackson, Sonatype CEO.
Sonatype is advised by Goldman Sachs, King & Spalding and Morrison & Foerster. Vista is advised by Morgan Stanley, Kirkland & Ellis and Laurel Strategies.
United Bankshares, a bank holding company, agreed to merge with Carolina Financial, the parent company of CresCom Bank, in a $1.1bn deal. The combined organization will be approximately $25bn in assets.
“We are partnering with a bank that has a strong community banking culture, along with the resources of a larger institution. We believe that United is the very best partner to create the most trusted community bank in the communities we serve,” Jerry Rexroad, Carolina Financial CEO.
Carolina Financial is advised by Raymond James & Associates and Nelson Mullins Riley & Scarborough. United Bankshares is advised by Sandler O’Neill & Partners and Bowles Rice.
HKW, a middle-market private equity firm focused on growth-oriented companies, agreed to acquire JMFA, a provider of software and consulting solutions designed to optimize overdraft programs for regional/community banks and credit unions. Financial terms were not disclosed.
“JMFA has a long track record of successfully assisting community/regional banks and credit unions with their overdraft programs on an ongoing basis. This is important because overdraft programs are difficult for these customers to manage in terms of compliance and processes. We look forward to helping JMFA continue to develop their software and services offering, as well as push to reach more customers throughout the United States,” Chris Eline, HKW Principal
.
JMFA is advised by Foley & Lardner and GulfStar Group. HKW is advised by Taft Stettinius & Hollister and BackBay Communications.
HP, a personal computer maker, is exploring a bid for Xerox, a US printer maker, after rebuffing a $33.5bn cash-and-stock acquisition offer from the latter as it “significantly” undervaluing the company, Reuters reported. Shares of HP fell as much as 5% after the company rejected a buyout offer.
“With substantive engagement from Xerox management and access to diligence information on Xerox, we believe that we can quickly evaluate the merits of a potential transaction,” HP.
HP is advised by Goldman Sachs and Wachtell Lipton Rosen & Katz.
Coty, an American beauty company, is set to acquire a 51% stake in the cosmetics and beauty care company Kylie Cosmetics for $600m.
“We are pleased to welcome Kylie into our organization and family. Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics, and skincare, allowing Kylie’s brands to reach their full potential,” Pierre Laubies, Coty CEO.
Kylie is advised by Full Picture. Coty is advised by Tiger Chark.
Banner Midstream, an energy services company, completed its merger with Mount Tam Biotechnologies, a pharmaceutical company. Financial terms were not disclosed.
“The completion of our merger marks a critical point in Banner’s evolution. On our new public platform, Banner is even better positioned to execute on its growth strategy and achieve continued success. The fragmented markets in which we focus provide a tremendous opportunity for further growth and to benefit from our wider resource and capital base,” Jay Puchir, Banner Midstream President and Principal Financial Officer.
Banner was advised by ICR.
Accel-KKR-backed Vobile, an online video content protection and monetization company, completed the acquisition of Rights ID and Channel ID units of Zefr, a video advertising company. Financial terms were not disclosed.
"At Accel-KKR, we invest in vertically oriented technology businesses that add value to their niche industry. In our industry research, we have come to understand that Vobile along with Rights ID and Channel ID are viewed as thought leaders by content owners and production studios. We are pleased to support the acquisition and are excited to see Vobile expand with innovative solutions to help content owners address digital piracy and revenue opportunities," Samantha Shows, Accel-KKR Managing Director and Head of Credit Investing.
Vobile was advised by Ellipses PR.
Converge Technology Solutions, which provides information technology services, agreed to acquire VSS, a technology solutions provider. Financial terms were not disclosed.
"VSS is now poised to deliver a more widely-based platform of services to its customers while still offering its top-of-the-line customer service and white-glove treatment to ensure that their business objectives are met or exceeded," Robert L. Jernoske, Jr., VSS CEO.
Arthur J. Gallagher, an insurance broker, completed its acquisition of Horseshoe Insurance Services Holdings, a provider of full-line insurance service. Financial terms were not disclosed.
"We are excited to join forces with Artex and Gallagher. Being part of a larger organization will give us the opportunity to access worldwide resources and accelerate the development of bespoke solutions and products for ILS," Andre Perez, Horseshoe CEO.
Cott, a provider of home and office bottled water delivery services in North America and Europe, agreed to acquire The Water Guy, a provider of water solutions and office coffee service to residential and commercial customers. Financial terms were not disclosed.
"DS Services was the natural partner when we decided to sell our business. Their expanded portfolio of hydration solutions and commitment to serving customers will benefit our customers with even more beverage options delivered where they live and work," Bryan and Douglas Shinn, The Water Guy Owners.
EMEA
SIX Group, a financial service platform, launched an all-cash tender offer to acquire Bolsas y Mercados Españoles, the operator of the Spanish stock exchanges, for $3.1bn.
The combination of BME and SIX would create a diversified group with a strong presence across Europe. In addition, SIX believes that the proposed transaction represents an attractive financial proposition for the current shareholders of BME.
“A combination with BME will bring direct and immediate benefits to the stakeholders of both our institutions, at a time when consolidation in global financial markets infrastructure is accelerating. This is in line with SIX’s growth strategy and our commitment to serving customers with highly reliable infrastructure services and seamless access to capital markets,” Romeo Lacher, SIX Chairman of the Board.
SIX Group is advised by Alantra, Credit Suisse, Linklaters, Brunswick Group, and Estudio de Comunicacion. BME is advised by Morgan Stanley and Latham & Watkins.
Private equity firm HQ Equita completed its acquisition of a majority stake in WOLF Verpackungsmaschinen Group, a manufacturer of vertical form, fill and seal machines for food, industrial goods and chemicals. Financial terms were not disclosed.
"The packaging industry is a growth market. WOLF is optimally positioned with its innovative and high-quality products and services and the state-of-the-art assembly site in China. It will enable us to strengthen our packaging platform and drive the growth and internationalization of our three packaging specialists through promising synergies," Florian Wiemken, HQ Equita Partner.
WOLF Verpackungsmaschinen Group was advised by cf:M, EGW Law and Taxess. HQ Equita was advised by Munich Strategy, ERM, Alantra, Ebner Stolz, Eiger Law, Miller Simons O'Sullivan, Watson Farley & Williams and Taxand.
Vista Equity Partners agreed to acquire Accelya, a global provider of financial, commercial and analytics solutions to the airline and travel industry, from Warburg Pincus. Financial terms were not disclosed.
“Our clients count on us to deliver data-driven insights, efficiency and unrivaled value in a highly competitive industry, while also managing risk and compliance and delivering an excellent customer experience. Vista shares with us a long-term view and focus on product innovation that will allow us to accelerate the expansion of our solutions to propel our clients forward in the dynamic travel marketplace,” John Johnston, Accelya Chief Executive Officer.
Accelya is advised by Bank of America Merrill Lynch, Evercore, Socios Financieros and Squire Patton Boggs. Warburg Pincus is advised by Kirkland & Ellis. Vista is advised by Goldman Sachs, Houlihan Lokey, Simpson Thacher & Bartlett and Laurel Strategies.
Recipharm Group, a Swedish pharmaceutical group, agreed to acquire Consort Medical, contract development and manufacturing pharmaceutical company, for $809m.
"I am excited at the prospect of combining Recipharm with Consort which is extremely complementary. In our view Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm's broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak's key technologies, and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing whilst providing access to a new customer base," Thomas Eldered, Recipharm Group CEO.
Recipharm is advised by Peel Hunt, Lazard, Clifford Chance and Setterwalls Advokatbyra. Consort is advised by Investec, Evercore, Allen & Overy and FTI Consulting.
Elavon, a global merchant acquirer and subsidiary of US Bank, agreed to acquire Sage Pay, a payments gateway business of The Sage Group, a provider of cloud business management solutions, for $300m.
The acquisition is part of Elavon’s strategy to help its business customers grow as the global economy becomes more digital, and as businesses look to streamline their operations with software that includes payments capabilities. This acquisition also extends Elavon’s market share in the UK and Ireland, particularly for small and medium-sized enterprises where Sage Pay is a highly-trusted payment gateway with a loyal customer base.
“We are a customer-focused company that is helping businesses succeed in a global marketplace that is changing rapidly. This acquisition brings tremendous talent and leading technology to Elavon, which can be leveraged across the European market,” Hannah Fitzsimons, Elavon Merchant Services President and General Manager.
The Sage Group is advised by Citigroup, Morgan Stanley, Rothschild & Co, Allen & Overy and FTI Consulting.
Biofourmis, a provider of digital therapeutics based in Boston, agreed to acquire Biovotion, a developer of a clinical-grade wearable biosensor platform. Financial terms were not disclosed.
"Biovotion had been a trusted partner for many years as we have leveraged each other's technologies across numerous clinical, commercial and research applications. We are thrilled to add Everion to the Biovitals ecosystem, which will continue to help our clients achieve their goals such as demonstrating the value of pharmacotherapy, managing chronic diseases, predicting and preventing adverse events, and improving clinical outcomes - and ultimately reducing healthcare costs," Kuldeep Singh Rajput, Biofourmis CEO and founder.
Biofourmis is advised by Amendola Communications.
Spectrum Global Solutions, a provider of the next-generation communications network and professional services to telecommunications and enterprise markets, completed its acquisition of WaveTech, a German-based company with a technology platform that provides efficient and reliable energy infrastructure for telecommunication networks and data centers. Financial terms were not disclosed.
“Our acquisition by Spectrum is an incredibly exciting moment in the history of our company. As we transition our unique battery life extension product and our technology platform into an established commercial product, the skillset that the team at Spectrum bring to the table is invaluable. We have several existing partnerships in place with a solid opportunity pipeline facing us today. This transaction allows us to deliver upon the potential that our technology enables, providing our combined shareholders with an incredible value proposition,” Dag Valand, WaveTech CEO and Founder.
Spectrum was advised by MZ Group North America.
Tawazun, an industry enabler responsible for the creation and development of a sustainable defense and security industry in the UAE, agreed to acquire a 50% stake in VR Technologies, a subsidiary of Russian Helicopters, which is developing helicopters and unmanned aerial vehicles.
"The agreement signed today lays the foundation for long-term cooperation in the format of not just colleagues, but business partners. With the support of Rostec State Corporation and RT-Business Development, we were able to achieve full understanding with Tawazun, without which it would be impossible to implement such significant and large-scale projects. As equal partners, we plan to invest at least $442m in the development of VR-Technologies, which will help make the company's products competitive and in demand all over the world," Andrey Boginskiy, Russian Helicopters Director General.
Private equity firm Arlington Capital Partners agreed to acquire Blaenavon forging business of Doncasters Group, an international manufacturer of high-precision alloy components. Located in South Wales, United Kingdom, the acquired unit is a provider of complex, precision-forged rings and closed die products primarily for OEM and Tier 1 aerospace & defense engine customers. Financial terms were not disclosed.
"Lee and the Forged Solutions Group team have established credibility as a trusted supplier for mission-critical engine parts. For Arlington, this investment represents an opportunity to invest in an attractive part of the aerospace & defense value chain with strong customer relationships, high barriers to entry, and high revenue visibility," Erica Son, Arlington Capital Vice President.
Etteplan, which provides solutions for industrial equipment and plant engineering, agreed to acquire Triview Technical Communication, a Dutch company specializing in technical documentation. Financial terms were not disclosed.
"The acquisition of Triview Technical Communications is a logical next step for us when growing our business in the Netherlands. It will open up opportunities also outside our current customer base. Triview Technical Communications is well known in the industry and has a good track record among its customers. Together we will be the leading company offering technical documentation services in the Netherlands," Mikael Vatn, Etteplan SVP Technical Documentation Solutions.
Aramco sets IPO valuation at as much as $1.7tn.
Saudi Aramco said it is aiming for a valuation of $1.6tn to $1.7tn in the planned IPO, falling short of the initial $2tn targeted by Saudi Crown Prince Mohammed bin Salman in what could still be the world’s biggest ever public offering. Aramco said that it aims to price the offering at between $8 and $8.52 a share and sell a stake of 1.5%, or 3bn shares.
Aramco also canceled the London leg of its IPO roadshow, scheduled for Wednesday, in the latest sign that the giant Saudi oil company has scaled back the international ambitions for the IPO because of lackluster demand from money managers. The company had already decided not to market the share sale in the US, Canada or Japan, according to a Bloomberg report.
Hillhouse Capital to bid for Thyssenkrupp's elevator unit. (FS)
Asian private equity firm Hillhouse Capital is set to join bidders for Thyssenkrupp’s elevator unit as competition heats up for the prized asset, Bloomberg reported.
The Hong Kong-based investment firm reportedly made a non-binding offer this month. Its bid valued the business at more than €15bn ($17bn). Hillhouse is competing against a number of other buyout firms and strategic bidders, a list that’s expected to be whittled down to a handful in the next few weeks.
QIAGEN explores strategic options after indications of interest.
QIAGEN, a provider of sample and assay technologies for molecular diagnostics, applied testing, academic and pharmaceutical research, started exploring strategic options including a sale after it received several indications of interest for acquisition.
One of the offerers is believed to be the instruments manufacturer Thermo Fisher Scientific.
Andrew Tinkler plans $97m rescue bid for Eddie Stobart.
Andrew Tinkler, the former CEO of Eddie Stobart, a British infrastructure, aviation, energy, and civil engineering company, is putting together a £75m ($97m) rescue bid for ailing Eddie Stobart Logistics. Tinkler is putting together a £50m ($65m) package to save the business and said existing shareholders could raise an additional £25m ($32m).
“Shareholders do take my offer seriously, and even Stobart Group has supported me on this transaction. They see what I am trying to do is preserve value for shareholders,” Andrew Tinkler.
Jupiter drops a $755m stake in Wirecard. (FS)
Jupiter, a UK-based asset manager, dropped a $755m stake in Wirecard, a German payments group. The move follows intense media scrutiny of Wirecard, which came under pressure earlier this year following allegations about its accounting practices in Asia.
The new managers of Jupiter’s two flagship $9bn European funds ditched their multi-million-pound holdings in Wirecard, weeks after star manager Alexander Darwall left the investment company, Financial News reported.
Aon reports significant growth in demand for M&A insurance.
Aon, a professional services firm providing a broad range of risk, retirement and health solutions, reported growth in the demand for M&A insurance products, and a growing trend of demand for US-style W&I policies in Europe, driven by US buyers trying to drive US terms and structures into European sale agreements.
“Aon expects to see increased awareness and uptake of the products as insurers begin to offer broader coverage, serve local European markets, and penetrate the small and medium deal size bracket. Tax insurance will be a major growth area, as the value proposition of tax insurance products extends past the M&A deal itself," Alistair Lester, Aon M&A and Transaction Solutions EMEA CEO.
Yandex considers restructuring its corporate governance.
Yandex, a Russian multinational corporation specializing in Internet-related products and services, agreed to a restructuring with the Kremlin that increases government influence over Russia’s largest tech company and seeks to prevent it from ever falling under foreign control, FT reported.
The company will create a new Public Interest Foundation that will have the power to block transactions and temporarily remove Yandex’s management if it deems it in the national interest. The Russian lawmaker behind a draft law, which would limit foreign ownership of Russian technology companies at just under 50%, reacted positively to internet giant Yandex’s decision to restructure its corporate governance.
Northzone raises $500m for the ninth VC fund. (FS)
Northzone, a venture capital firm, is set to close its latest fund Northzone IX with capital commitments of around $500m. The oversubscribed fund attracted existing and new limited partners and was raised at record speed, demonstrating a strong global interest in the European early-stage venture capital market.
The new fund will pursue opportunities that address large and established industries saddled with legacy technology, such as financial services, healthcare, education, mobility, and construction, in B2B as well as in consumer applications.
APAC
Z Holdings, a Japanese internet company originally formed as a joint venture between the American internet company Yahoo! and SoftBank, agreed to merge with Line, a Tokyo-based subsidiary of the South Korean internet search Naver. The combined firm would be valued at approximately $30bn.
"In the Internet market, overseas companies, especially those based in the United States and China, are overwhelmingly dominant, and even when comparing the size of operations, there is currently a big difference between such overseas companies and those in other Asian countries, other than China," SoftBank.
Line is advised by JP Morgan, Anderson Mori & Tomotsune and Shearman & Sterling. Z Holdings is advised by Mitsubishi UFJ Financial Group, Latham & Watkins and Mori Hamada & Matsumoto. SoftBank is advised by Mizuho Securities, Nagashima Ohno & Tsunematsu and Simpson Thacher & Bartlett. Naver is advised by Deutsche Bank, Simpson Thacher & Bartlett, Kim & Chang and Cleary Gottlieb Steen & Hamilton.
Estee Lauder Companies, a skin care products manufacturer, is set to acquire the remaining two-third stakes in the Korean skincare products manufacturer Have & Be for $878m. The company expects to fund this transaction with debt. The acquisition is subject to certain conditions, including regulatory approvals.
"The Estée Lauder Companies is the ideal home for our brands. Since the beginning of our partnership four years ago, the Company has shared our mission to provide the very best skin care and beauty products to consumers around the world. We are excited about the opportunity to continue this partnership as we continue to innovate and grow our brands globally,” ChinWook Lee, Have & Be CEO.
Have & Be is advised by Michel Dyens & Co, Bae Kim & Lee, and Skadden Arps Slate Meagher & Flom. Estee Lauder is advised by Perella Weinberg Partners, Kim & Chang, and Lowenstein Sandler.
Mitsubishi Chemical, a chemical maker, agreed to acquire a remaining stake in Mitsubishi Tanabe Pharma, a pharmaceuticals company, for $4.5bn. The chemical maker already held more than 56% of shares in Mitsubishi Tanabe.
The Osaka-based pharma company was the product of a 2007 merger between Mitsubishi Pharma and Tanabe Seiyaku. It focuses on autoimmune, diabetes, renal and central nervous system treatments.
Mitsubishi Chemical is advised by JP Morgan and Nagashima Ohno & Tsunematsu. Mitsubishi Tanabe Pharma is advised by KPMG, Merrill Lynch Japan Securities, Mori Hamada & Matsumoto and Nakamura, Tsunoda & Matsumoto.
Blackstone completed its $244m investment in Future Lifestyle Fashions, an apparel & fashion company based out of Knowledge House, Mumbai.
“We have been impressed with the business that Kishore Biyani has built at Future Group and are delighted to support Future Group in this journey,” Kishore Moorjani, Blackstone Head of Tactical Opportunities, Asia.
SOMPO, an insurance company, and Palantir Technologies, a software company that specializes in big data analytics, agreed to form a $150m, 50-50 joint venture, Palantir Technologies Japan.
“We have the privilege of partnering with some of the most innovative and enduring companies in the world, including Sompo, a leader in its field whose business helped to define an industry. Our investment in Japan reflects our belief that the union of industrial expertise, built over decades on the front lines of business, with the right software will be the primary driver of economic outperformance moving forward,” Alexander Karp, Palantir Technologies Co-founder and CEO.
Quarz Capital Management urges Sabana and ESR-REIT to merge. (FS)
Sabana Shari’ah Compliant Industrial REIT and ESR-REIT, two Singapore-listed real estate investment trusts, are being urged to merge by activist fund Quarz Capital Management, according to a Bloomberg report. Quarz began buying into Sabana REIT in 2018 and controls around 4% to 5% of the firm, Chief Investment Officer Jan Moermann said.
Baring considers acquisition of VUS. (FS)
Baring Private Equity Asia considers acquisition of a majority stake in Vietnam USA Society English Centres, an operator of English language training centres in Vietnam, Deal Street Asia reported.
Aviva to keep China and Singapore units after review.
Aviva, a UK insurer that’s overhauling some businesses as part of its chief executive officer’s turnaround plan, is to retain its Chinese joint venture as well as assets in its biggest market, Singapore, according to a Bloomberg report.
The firm will continue to explore options for some other businesses in Asia, including in Vietnam, Hong Kong and Indonesia. Aviva’s shares slumped more than 4% in London after the insurer announced its plans for the region’s assets, which combined could be valued up to $4bn.
NewQuest raises $1bn for the fourth flagship fund. (FS)
HK-based private equity firm NewQuest Partners held the final close of its fourth dedicated secondary fund, NewQuest Asia Fund IV, with over $1bn in total commitments, surpassing its initial target of $850m.
The fund increased its original hard cap of $950m to accommodate strong investor demand. Fund IV investors include a diverse group of endowment funds, pension funds, sovereign funds, insurers, financial institutions, and family offices across Asia, North America, Europe, and the Middle East.
“We are very grateful to our limited partners for entrusting us with their capital and extremely excited about the market prospects for NewQuest’s secondary business,” Darren Massara, NewQuest Managing Partner.
HDFH launches Global Digital Bank Consortium Blockchain Investment Fund. (FS)
HDFH, a fintech firm in China, formally launched the Global Digital Bank Consortium Blockchain Investment Fund at the 2nd China International Import Expo in Shanghai. The fund will invest in digital banks and proven fintech infrastructure platforms worldwide and facilitate the upgrading of investment targets, ultimately maximizing value in the capital markets.
Initiated by HDFH, Yillion Bank, and Zhongguancun Private Equity & Venture Capital Association in collaboration with domestic and international investors, the size of the Global Digital Bank Consortium Blockchain Investment Fund will be around $1bn with a term consisting of a six-year investment phase and two-year exit phase.
Alibaba to close books at $13.4bn HK listing after strong demand.
Alibaba would close its secondary IPO valuation at $13.4bn, earlier than expected after attracting strong demand from the prospective institutional investors.
Order books will close on Tuesday at 12pm in New York, half a day earlier than initially planned by the Chinese e-commerce giant and its investment banking advisers, Reuters reported.
QSR Brands aims to revive IPO in the Q4.
QSR Brands Holdings, the operator of KFC and Pizza Hut in Southeast Asia, aims to revive and IPO as soon as the fourth quarter. Earlier, last week, the company had shelved the sale of its shares.
Discussions of the IPO revival are in early stages, and the company’s earnings in the next two quarters will play a key role in deciding the timing.
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