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AMERICAS
Sound Point Capital, a credit-oriented investment manager overseeing approximately $32bn in total assets, completed the acquisition of Assured Investment Management, a diversified alternative asset manager. Financial terms were not disclosed.
"This is a watershed event in Sound Point’s growth story, and it positions us for continued success in a business where scale has become increasingly important. It’s our largest transaction to date, and we’re extremely proud to be receiving a $1bn investment commitment over time from Assured Guaranty. We’re thrilled to be expanding our diversified platform through a powerful new partnership that will create immediate impact," Stephen Ketchum, Sound Point Founder and Managing Partner.
Assured Investment Management was advised by Goldman Sachs, Insurance Advisory Partners, and Mayer Brown (led by Eddie Best, Esther Chang, and Tram Nguyen). Financial advisors were advised by Sullivan & Cromwell (led by Stephen M. Kotran). Sound Point Capital was advised by Bank of America, DLA Piper, and Pryor Cashman.
DiaCarta terminated the $460m SPAC merger with HH&L Acquisition.
DiaCarta, a precision molecular diagnostics company and developer of novel oncology and infectious disease tests, terminated the $460m SPAC merger with HH&L Acquisition, a publicly traded special purpose acquisition company.
"HH&L's allegations are false and baseless, and the company rejects them in their entirety. We have worked diligently and in good faith to consummate the parties' transaction and the company has fulfilled all its obligations and duties under the Agreement. The company reserves all rights and remedies, whether under the Agreement or otherwise, with respect to the SPAC, its sponsor, its control persons and principals, and all others acting with or in concert with the SPAC and waives none. It is unfortunate that our arrangement with the SPAC has come to this, however, DiaCarta has a bright future, and we continue to be focused on realizing the full potential of our superior technology for the benefit of our partners and patient population," Adam (Aiguo) Zhang, DiaCarta CEO.
Ellington Financial, a specialty finance company that acquires and manages mortgage-related assets, agreed to merge with Great Ajax, an externally managed real estate investment trust, in a $173m deal.
“We are extremely excited about the opportunity to add a significant portfolio of strategic assets, including over $1bn of highly creditworthy first-lien residential RPL and NPL investments at attractive prices, which complement our existing investment portfolio nicely and align with our expertise and existing management platform. We believe that the benefits of this acquisition also include greater operating efficiencies, a larger market capitalization, and a closer relationship with Gregory Funding, Great Ajax’s highly respected affiliated mortgage servicer. We believe that this transaction will position us well to drive accretive earnings growth and provide strategic and financial benefits to our stockholders,” Laurence Penn, Ellington Financial CEO.
Ellington Financial is advised by Keefe Bruyette & Woods and Vinson & Elkins. Great Ajax is advised by Piper Sandler, Mayer Brown, BTIG, and Sheppard Mullin Richter & Hampton.
Byline Bancorp, a full-service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers, completed the merger with Inland Bancorp, a commercial bank, in a $165m deal.
“Inland Bank and Trust is a well-established and trusted financial institution with deep client and community relationships, which we look forward to continuing. Joining forces with Inland Bancorp brings to all of our customers an expanded footprint across Chicago. We are very excited to welcome Inland Bancorp customers and colleagues to Byline," Roberto Herencia, Byline Bancorp Executive Chairman and CEO.
Abacus Life, a buyer of life insurance policies and vertically integrated alternative asset manager specializing in specialty insurance products, went public via a SPAC merger with East Resources Acquisition in a $618m deal.
“We are thrilled to be partnering with East Resources on this significant milestone. They share our excitement about the opportunity ahead and bring invaluable expertise and knowledge in alternative investments. This transaction is an important milestone and will assist in accelerating the scale of our platform to increase penetration into the growing $233bn potential Annual Life Settlement market," Jay Jackson, Abacus Life CEO.
Abacus Life was advised by Locke Lord. East Resources Acquisition was advised by Aviditi Advisors and Latham & Watkins (led by Ryan Maierson).
VSE, a provider of aftermarket distribution and maintenance, repair and overhaul services, completed the acquisition of Desser Aerospace, an aftermarket solutions provider of specialty distribution and MRO services, for $124m.
"I am proud to announce today's transaction as another meaningful step in the execution of our multi-year business transformation plan centered on pursuing strategic organic and inorganic opportunities that allow us to expand our aerospace distribution and MRO service offerings," John Cuomo, VSE President and CEO.
Desser Aerospace was advised by Jefferies & Company. VSE was advised by Jones Day (led by Lorne Cantor).
Glencore, a global diversified natural resource company, offered to acquire the remaining 17.81% stake in PolyMet Mining, a mine development company, for $73m.
Under the Proposal, each Common Share would be acquired for a consideration of $2.11 in cash, which is at par with the recent rights offering done by PolyMet in April 2023.
Buyout groups weigh bids for a majority stake in FIS-owned Worldpay. (FS)
Private equity groups are exploring buying a majority stake in payments provider Worldpay, an American payment processing company and technology provider, from Fidelity National Information Services, a payment services provider, at a valuation of more than $15bn in what would be one of the largest corporate carve-outs ever.
US buyout firm Advent, previously part of a consortium that owned Worldpay, is among the parties studying a bid. GTCR, a Chicago-based private equity group that sold a business to Worldpay in 2010, has also studied a bid, Financial Times reported.
Apple becomes the first public company to be valued at $3tn.
Apple surpassed Microsoft, which is valued at $2.5tn, and became the first public company to be valued at $3tn. Google parent company Alphabet, Amazon and software giant Nvidia, have market values of more than $1tn each, while oil giant Saudi Aramco is worth $2.08tn, SkyNews reported.
The 47-year-old technology juggernaut, co-founded by Silicon Valley legend, the late Steve Jobs in 1966, officially closed up 2.3% at $193.97 per share at the end of trading on July 1, bringing its market value to $3.04tn.
EMEA
RS Group, a global omni-channel provider of product and service solutions for designers, builders and maintainers of industrial equipment, completed the acquisition of Distrelec, an online & catalog distributor for electronics, automation, measurement technology as well as for IT and accessories, from Aurelius, an investment firm, for €365m ($398m).
"Strategic acquisitions that value creative are part of our strategy, and I'm pleased with what I've seen of our disciplined identification, assessment, valuation and integration processes. These have helped to drive good progress at Risoul since we acquired it in January 2023. Distrelec is a complementary business to RS with excellent value-creation potential under our ownership. It materially strengthens our presence in key European markets, there is a strong cultural and operational fit and there are significant potential soft and hard synergies from the combination. We look forward to welcoming Distrelec to RS and to realizing the significant potential growth and value creation opportunities it creates for all our stakeholders," Simon Pryce, RS Group CEO.
Distrelec was advised by Robert W Baird (led by Thomas Fetzer and Oliver Meyer). RS Group was advised by McKinsey & Company, Ernst & Young, Greenhill & Co, Rothschild & Co, Osborne Clarke (led by Philip Meichssner) and Teneo (led by Martin Robinson and Olivia Peters). Aurelius was advised by AT Kearney, PricewaterhouseCoopers, Haver Mailänder, Linklaters (led by Andreas Müller), Ernst & Young and OMMAX Digital Solutions.
Royal Unibrew, a brewery group in Scandinavia with main focus on Western and Eastern Europe & various malt drink markets, agreed to acquire Vrumona, a beverage company that manufactures and supplies softdrinks, from Heineken for €300m ($327m).
"We are happy to have signed an agreement with Heineken to acquire Vrumona. Vrumona is a leading soft drinks manufacturer, and it comes with a strong local organization, which makes it a strategic very strong fit for Royal Unibrew. Vrumona will become a new growth platform for Royal Unibrew in continental Europe and is expected to drive organic earnings growth in the coming years," Lars Jensen, Royal Unibrew CEO.
Heineken is advised Nomura, PricewaterhouseCoopers, CMS, and De Brauw Blackstone Westbroek (led by Gaby Smeenk).
CACEIS, an asset servicing banking group of Crédit Agricole and Santander, completed the acquisition of RBC Investor Services' operations in Europe and Malaysia. This transaction, which has received all required regulatory and antitrust approvals, combines two strong asset servicing operations in Europe.
CACEIS' acquisition of the business of the UK branch of RBC Investor Services Trust and RBC Investor Services business in Jersey is expected to take place in the coming months, subject to the receipt of the necessary regulatory approvals.
Apollo, a US buyout firm, offered to acquire Applus Services, a Spanish industrial testing company, for $1.33bn.
The Applus board reacted positively to Apollo's bid for 100% of its shares, saying in a statement that it showed confidence in the company's performance and gave shareholders an option to monetize their investment at a premium.
Apollo is advised by BNP Paribas, Santander and Latham & Watkins.
OMERS, an investor and asset manager, and APG, a Dutch pension investment company, agreed to acquire Kenter, a Netherlands-based energy infrastructure solutions firm, for $764m.
"We're thrilled to announce OMERS second investment to enable the energy transition in the Netherlands. We look forward to growing a B2B energy solutions platform in the region, delivering energy infrastructure for businesses looking to meet their sustainability goals," Alastair Hall, OMERS Infrastructure Senior Managing Director and Head of Europe.
OMERS and APG are advised by DC Advisory, Emendo Capital and Allen & Overy.
Investcorp, a global alternative investment firm, agreed to invest $100m in SEC Newgate, a global strategic communications and advocacy group.
"We are thrilled to partner with Investcorp on this next chapter of growth given their significant expertise and track record of helping professional services businesses grow and expand internationally. Investcorp's investment will accelerate our transformation and fuel our development strategy to achieve global leadership in corporate communications and public affairs," Fiorenzo Tagliabue, SEC Newgate CEO.
SEC Newgate is advised by Advant NCTM. Investcorp is advised by Clearwater International and Gattai Minoli Agostinelli & Partners.
Van Lanschot Kempen, a private equity firm, completed the acquisition of the online investment platform of Robeco, a financial services company. Financial terms were not disclosed.
"Since its inception nearly 95 years ago, Robeco has evolved from a Netherlands-based investment consortium into an international asset manager that serves institutional investors and distributes its investment funds through platforms such as banks, insurers and other intermediaries. This new partnership fits in with our strategic focus on further enhancing this position, with the Dutch market remaining a key priority. We've took extreme caution and care in our search to find a partner that would offer a new home, sufficient growth and a future-oriented perspective to both our online distribution platform clients and our colleagues. We look forward to expanding and enhancing this partnership and offering our combined proposition to clients," Karin van Baardwijk, Robeco CEO.
Robeco was advised by Ernst & Young.
IK Partners, a European private equity firm, agreed to invest in Cinerius Financial Partners, an independent wealth management platform. Financial terms were not disclosed.
"We look forward to the next chapter in our journey, drawing on IK's extensive experience in the financial services sector. We believe that the IK team can help us realize our ambitions to further strengthen our position in the IWM marketplace through both organic and inorganic growth. We are grateful to have had the support of Summit Partners over the last two years and are pleased to see them reinvest in our dynamic company," Christoph Lieber, Cinerius Financial Partners CEO.
Schneider Electric, a French multinational company that specializes in digital automation and energy management, agreed to acquire EcoAct, a climate consulting firm, from Atos, a digital transformation firm. Financial terms were not disclosed.
"I am excited for EcoAct to potentially join Schneider Electric and to continue to grow our ability to lead clients through challenges at the heart of the energy and resource transition. I believe this transaction could provide fantastic opportunities to our talented and passionate 'EcoActors' and look forward to the promising future ahead," Stuart Lemmon, EcoAct Global Head.
JD Sports enters Middle East with GMG franchise deal.
Britain's biggest sportswear retailer JD Sports Fashion will open about 50 stores in the Middle East after agreeing its first ever franchise deal with Dubai-based GMG. The trainers and sportswear chain said its entry into the region forms part of it strategy to expand into underpenetrated markets. The 10-year agreement will focus on locations in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt, Reuters reported.
JD noted that a heightened focus on health and wellness, as a result of the Covid-19 pandemic, has driven strong growth in the athletic leisure market in the Middle East. In February, JD said it would spend up to £3bn ($3.8bn) to open as many as 1.75k stores over five years, as Schultz outlined his plans for the retailer to become an athletic leisurewear "powerhouse".
Bahrain signs deals to invest $1.3bn in UK economy.
Bahrain has signed a memorandum of understanding for strategic investments and collaborations with Britain that will see the Gulf state's private sector invest £1bn ($1.3bn) in Britain, the Bahraini crown prince's social media account said on Monday, Reuters reported.
The investments will be through Bahraini sovereign wealth fund Mumtalakat, Investcorp, GFH Financial Group, and Osool Asset Management, the twitter account of the crown prince of Bahrain said.
Top Mediobanca investor gets green light to increase Generali stake above 10%. (FS)
The holding company of late Italian billionaire Leonardo Del Vecchio, investment bank Mediobanca's single most prominent investor, has received regulatory approval to raise its stake in insurer Generali above 10%.
Shares in Generali rose more than 5% after the news in anticipation that an investor battle for control will resume.
Italy's insurance watchdog IVASS said it had authorized Delfin to own more than 10% of Generali after the company inadvertently crossed the threshold because of a share buyback at Italy's biggest insurer, Reuters reported.
Poland's Orlen lays out red lines for buying a stake in the German Schwedt refinery.
Poland's largest oil company may buy a stake in an east German refinery only after the government in Berlin decides to dump Russia's biggest crude producer as its shareholder, PKN Orlen Chief Executive Officer Daniel Obajtek said.
The ultimatum follows months of speculation that Orlen is looking at investing in the PCK facility in Schwedt to ensure supplies to its own gas-station network in neighboring Germany and help with deliveries to the domestic market.
Israel to buy 25 Lockheed Martin F-35 jets in $3bn deal.
Israel plans to buy a third squadron of F-35 fighter jets from the US government in a deal valued at about $3bn.
The purchase of the aircraft, manufactured by Lockheed Martin, will be financed by US military aid, Israel's defense ministry said.
UBS aims to avoid using the $10bn Credit Suisse backstop amid backlash.
UBS Group, a multinational investment bank, and financial services company, aims to avoid using a $10bn backstop for Credit Suisse amid a backlash.
The report added that UBS executives hope to announce that the bank will not call on the government backstop when it publishes its second-quarter results on August 31.
In June, UBS reached an agreement with the Swiss government under which the government will guarantee up to CHF9bn ($10bn) of losses UBS may incur from the sale of its rival's assets beyond CHF5bn ($5.6bn) the lender is due to cover itself, Reuters reported.
Naturgy shareholders propose Citi banker as CEO. (FS, People)
A group of shareholders at Spanish power utility Naturgy, a multinational natural gas, and electrical energy utility company, have proposed appointing a top Citigroup banker as CEO.
Investment funds CVC, Global Infrastructure Partners and IFM Global Infrastructure, which together control about 55% of Naturgy, proposed Ignacio Gutierrez-Orrantia for the job, Reuters reported.
APAC
InVivo, an agricultural group, agreed to acquire United Malt, a maltster, for AUD1.5bn ($998m).
“Today’s announcement is completely in line with the strategic approach we designed for Malteries Soufflet in 2021 with our strategic partners, KKR, Bpifrance and Crédit Agricole Group. The acquisition of United Malt is a unique opportunity to reinforce our presence in the high-value craft beer market, expand our geographical footprint to new strategic markets, and accelerate our ambitious strategy in the malt sector. A larger global platform would also enable customers to access increased resources and support their own growth ambitions. This acquisition would be a key step in our journey to becoming a global leader in the malt sector,” Thierry Blandinières, InVivo CEO.
InVivo is advised by Credit Agricole, Goldman Sachs, Allens, Aramis, Bredin Prat, and Vivien & Associes. United Malt is advised by Macquarie Group and Gilbert + Tobin.
Platinum Equity, a global investment firm, completed the acquisition of the Australia windows and doors business from Jeld-Wen, a manufacturer of doors and windows, for $461m.
"We are proud to have crafted a divestiture solution that delivers speed and certainty to JELD-WEN at a time when the M&A market remains challenging. We are excited about the prospects for the Australasia business. Platinum has decades of experience with corporate carve-outs, helping establish standalone companies that can maximize their potential," Louis Samson, Platinum Equity Co-President.
Platinum Equity was advised by Gresham and Allens. Jeld-Wen was advised by Ernst & Young, Macquarie Group and Herbert Smith Freehills (led by Jason Jordan).
Investcorp, a Bahrain-based asset manager, agreed to invest $61m in NDR Warehousing, a warehouse development and operations platform.
"We anticipate strong tailwinds and a long runway ahead for the sector and with an InvIT listing under evaluation, we expect NDR will be well positioned to capitalize on these market dynamics," Ritesh Vohra, Investcorp Partner.
Costa in final takeover talks with private equity investor. (FS)
Costa Group, Australia's largest horticultural company, is set to call time on the ASX with the board on track to recommend a takeover offer from New York private equity firm Paine Schwartz Partners as early as this week.
While a transaction was yet to be signed as of Monday, sources on both sides were hopeful of an agreed deal in the coming days.
AIP Capital plans to acquire a minority stake in Eastar Jet. (FS)
AIP Capital, the aviation asset management arm of 777 Partners, is pursuing a 10% stake in South Korean low-cost airline Eastar Jet.
AIP Capital confirmed to the outlet that discussions were underway and said it would lease five B737-8s to Eastar Jet. The interest marks an abrupt turnaround for the carrier, which only resumed flying in March after a three-year grounding.
Muzinich closes first Asia private credit fund at $500m. (FS)
Muzinich & Co has closed its first private credit fund dedicated to the Asia Pacific region with $500m in capital commitments from institutional investors and family offices.
Munich & Co's regional chief executive officer Andrew Tan, who also leads the private credit business, confirmed that half of the commitments are from Asia-based investors, with Singapore's DBS Group serving as the fund's anchor investor with a $200m commitment.
Citigroup Hong Kong investment banker Jiang is said to leave. (People)
Citigroup investment banker David Jiang is leaving the US lender as part of a recent round of layoffs.
Jiang, a Hong Kong-based managing director and co-head of industrial deals in Asia, is departing as global banks seek ways to adapt to a slump in dealmaking. Before joining Citi in 2018, he had worked at UBS Group for more than eight years. He also had stints at Macquarie Bank and Deloitte.
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