AMERICAS
Dufry, a Swiss-based travel retailer which operates duty-free and duty-paid shops and convenience stores, agreed to acquire a remaining stake in Hudson, a North America travel retailer, for $311m.
"While our ownership structure will change as a result of the proposed transaction, the re-integration of Hudson into Dufry will further facilitate the execution of our business strategy. Hudson successfully implemented its business and growth plans as a wholly owned Dufry subsidiary for nearly nine years prior to our initial public offering in 2018. Our strategy remains unchanged to serve as the all-encompassing travel partner and we will continue to focus on our four key pillars: travel convenience, specialty retail, duty free, and food and beverage," Roger Fordyce, Hudson CEO.
Dufry is advised by UBS, Davis Polk & Wardwell, Homburger and Appleby. Hudson is advised by Lazard, Santander and Cravath Swaine & Moore.
KBR, a global provider of differentiated professional services and solutions across the asset and program life cycle, agreed to acquire Centauri, a high-end engineering, intelligence, cybersecurity and advanced technology solutions company, from Arlington Capital Partners, a private equity firm, for $827m.
"By combining with KBR, Centauri will have greater opportunities to grow as part of a larger and more diversified company. Centauri and KBR share strong employee-focused, mission-first cultures and complementary platforms, making this an ideal combination. As part of KBR, our innovation and initiative will enhance our combined company's ability to develop systems and provide solutions in space, intelligence and cyber. KBR's global foundation of safety and sustainability will help us drive continuous growth and keep our nation safe," Dave Dzaran, Centauri Chief Executive Officer.
KBR is advised by Citizens Capital Markets, Bank of America Merrill Lynch, Arena Strategic Advisors and Hogan Lovells. Centauri is advised by Jefferies & Company and Holland & Knight.
Johnson & Johnson, an American multinational corporation that develops medical devices, pharmaceutical, and consumer packaged goods, agreed to acquire Momenta Pharmaceuticals, a biotechnology company, for $6.5bn. The agreement was unanimously approved by the Boards of Directors of both Momenta and Johnson & Johnson.
"This acquisition broadens Janssen's leadership in autoimmune diseases and provides us with a major catalyst for sustained growth. Autoantibody-driven diseases are often serious, and patients are underserved by current treatment options. We're excited by the opportunity to further advance patient care by combining Johnson & Johnson's world-class R&D, commercial and supply chain capabilities with Momenta's talented people, pipeline and deep expertise in this important area," Jennifer Taubert, Johnson & Johnson Executive Vice President, Worldwide Chairman, Pharmaceuticals.
Momenta is advised by Cravath Swaine & Moore, Centerview Partners, Goldman Sachs, Latham & Watkins and MacDougall. Financial advisors are advised by Skadden Arps Slate Meagher & Flom.
Empower Retirement, the US' second-largest retirement services provider, completed the acquisition of Personal Capital, an online financial advisor and personal wealth management company, for $1bn.
"This is an exciting day for Empower as we progress toward the evolution of an integrated platform to deliver personalized advice, financial wellness and comprehensive financial planning to millions of individual investors and retirement plan participants. I know we will deliver on our vision of transforming the financial lives of those we serve. I am thrilled about the opportunities for our associates and the new colleagues that we welcome to Empower," Edmund F. Murphy III, Empower President and Chief Executive Officer.
Empower was advised by Sullivan & Cromwell, Morgan Stanley and Rockefeller Capital Management. Personal Capital was advised by
Moelis & Co and Willkie Farr & Gallagher.
Freedom Mortgage, a full-service mortgage company, completed the merger with RoundPoint Mortgage Servicing, a national loan servicer, residential mortgage lender and co-issue purchaser. Financial terms were not disclosed.
"This merger will create a much larger and stronger organization with significant synergies. RoundPoint will benefit operationally in many ways, including having access to Freedom Mortgage's substantial origination platform. With the combination of servicing portfolios, the merger makes the company the seventh largest US mortgage servicer nationwide," Kevin Brungardt, RoundPoint CEO.
Freedom Mortgage was advised by Classic Strategies Group, Zuckerman Gore Brandeis & Crossman and Strategic Vantage. RoundPoint Mortgage was advised by Goldman Sachs and Sidley Austin.
Crane Credit Union, a provider of banking services, agreed to acquire Our Community Bank, which personal banking services provider, from Home Financial Bancorp, a bank holding company. Financial terms were not disclosed.
“We are excited to join Crane Credit Union because of the expanded opportunities it brings to our customers, our employees, and our communities. CCU has the financial strength, systems infrastructure, and expanded products to help us better serve our current and potential customers. Most importantly, CCU and OCB fit culturally and philosophically,” Kurt Rosenberger, Our Community Bank President & CEO.
CCU is advised by Performance Trust Capital Partners and Krieg DeVault. OCB is advised by Renninger & Associates and Barnes & Thornburg.
El Salvador’s antitrust authority will allow an expanded market share for telecommunications firm Claro, a unit of Mexico’s America Movil, on guarantees that it will abide by competition and consumer protection safeguards, Reuters reported.
America Movil, a Mexican telecommunications corporation, plans to acquire for $315m two units of Spain’s Telefonica that operate in the Central American country which could generate “limits on competition,” El Salvador’s Competition Superintendent said in a statement.
America Movil is advised by Cleary Gottlieb Steen & Hamilton. Telefonica is advised by Citigroup and Latham & Watkins.
NGP Energy-backed Covenant Testing Technologies, a construction company that provides services such as flowback and well testing, completed the merger with Stuart Pressure Control, which offers a complete pressure control package for unconventional oil and gas development. Financial terms were not disclosed.
"By combining our people, assets and systems in accordance with our core values and safety culture, the combined company will deliver superior equipment and service to the well site from frac to production. With our expanded service offerings, our competitiveness in each business line will increase and enable us to be more efficient and cost-effective for our customers, "Jim Burtner, Covenant President and CEO.
Covenant was advised by FMI Capital Advisors and Locke Lord. Stuart was advised by Bracewell.
Silversmith Capital-backed Absorb Software, a provider of learning technology tools, completed the acquisition of Koantic, a cloud-based course authoring tool. Financial terms were not disclosed.
"We went through an extensive search to find not only the best course authoring tool to complement Absorb LMS, but the best authoring tool, period. Koantic is that product. The Koantic acquisition keeps Absorb moving forward on a path of strong growth and market expansion. It also reinforces our position as a truly all-in-one learning platform at a time when intuitive, powerful tools are a differentiator for businesses," Mike Owens, Absorb Software Founder and CEO.
Absorb Software was advised by Choate Hall & Stewart and Dentons.
GEF Capital Partners, a private equity firm, completed the acquisition of a majority stake in EnviroMix, a water and wastewater management solutions provider. Financial terms were not disclosed.
"EnviroMix is very proud of its ten-year history of technology and product development, which has resulted in industry-leading solutions such as BioMix compressed gas mixing and BioCycle optimized aerobic digestion. Through our new partnership with GEF Capital, we will have the opportunity to build upon this decade of success, driving further innovation and expansion to new markets," Ted Jenkins, EnviroMix CEO.
EnviroMix was advised by Nelson Mullins Riley & Scarborough. GEF Capital is advised by Goodwin Procter.
Roark Capital, an Atlanta-based private equity firm, completed the investment in Divisions Maintenance Group, a tech-based provider of integrated facilities maintenance services. Financial terms were not disclosed.
“We are delighted to partner with Roark. The transaction process was seamless; the Roark team did exactly what they said they would do every step of the way, and their operational expertise, great culture, and deep need-based multi-unit services experience will help us further accelerate our growth,” Gary Mitchell, DMG President and CEO.
Roark Capital was advised by ICR and Paul Weiss Rifkind Wharton & Garrison.
PE-backed Centauri Health Solutions, a healthcare technology and services company, completed the acquisition of HCFS, a provider of self-pay management solutions. Financial terms were not disclosed.
“In this time of industry challenge and uncertainty, I’m confident this union with one of nation’s growing leaders in hospital revenue management solutions will enable HCFS clients to receive the level of excellent, compassionate service they are accustomed to, while also providing them with access to a new portfolio of industry-leading products and services,” Julie Faling, HCFS Chief Executive Officer.
Centauri Health was advised by Weiss Brown. HCFS was advised by Shields Legal Group.
Take-Two Interactive Software, a video game holding company, agreed to acquire Playdots, a mobile games developer for $192m.
“Our acquisition of Playdots will diversify and strengthen further Take-Two's mobile game offerings, particularly within the casual, free-to-play segment. We are very pleased to welcome Nir and the entire team at Playdots to the Take-Two family and are excited by the potential of their development pipeline and positive, long-term contributions to our business,” Michael Worosz, Take-Two Executive Vice President.
Take-Two Interactive is advised by Willkie Farr & Gallagher.
Petmate, a pet supply manufacturer, completed the acquisition of Pet Qwerks, a pet toys manufacturer. Financial terms were not disclosed.
"Petmate has always been focused on helping to build the bonds between pets and their families with quality products to help enhance their well-being. We are excited Pet Qwerks will be joining the Petmate portfolio, as their combined strength in the chew and interactive categories is complementary to our commitment to providing quality innovative products to pets and pet parents,” Alice Tillett, Petmate CEO.
Pet Qwerks was advised by Carl Marks Advisors.
Change Healthcare, an independent healthcare technology company, agreed to acquire Nucleus.io, a provider of advanced, fully enabled, cloud-native imaging and workflow technology, from Nucleus Health, a provider of cloud-based image technology and teleradiology solutions. Financial terms were not disclosed.
"Now more than ever, customers are seeking ways to lower cost, reduce complexity, protect their patient data, and deliver the best care possible. Our next-generation Enterprise Imaging Network platform helps meet those needs in ways not previously possible and delivers exceptional value to our customers. This transaction will accelerate the realization of our vision and the innovation our industry has been waiting for," Tracy Byers, Change Healthcare Senior Vice President and General Manager, Enterprise Imaging.
Social Capital, a technology holding company that supports innovative companies in areas including healthcare, artificial intelligence, climate change and space, completed the acquisition of Hustle, a peer-to-peer text messaging platform. Financial terms were not disclosed.
"Hustle is uniquely positioned to rethink the way we engage with organizations and companies across the globe. As a scalable mobile platform that leverages machine learning to process billions of interactions at a time, Hustle can refine these critical interactions and foster greater connectivity between community-based organizations, non-profits, corporations and the people they serve. I look forward to supporting their continued growth and success," Chamath Palihapitiya, Founder Social Capital.
Trump supports Oracle's intention to buy TikTok.
President Trump voiced support for Oracle to buy the US operations of TikTok, adding a fresh wrinkle to the bidding for the Chinese-owned video-sharing app, WSJ reported.
Oracle is a new entrant in the negotiations for TikTok, whose owner ByteDance is facing a fall deadline from the Trump administration to divest itself of its US operations.
Oracle, a giant in business software, has had preliminary discussions about teaming with some of ByteDance’s existing minority investors to buy TikTok’s US operations but it isn’t clear how advanced the talks are.
SpaceX raises $1.9bn in funding.
Billionaire Elon Musk's SpaceX has raised $1.9bn in new funding, Reuters reported. This would be the largest single fundraising round to date by SpaceX.
The private rocket company will have an equity value of $46bn after the transaction.
The funding comes as SpaceX races to build out its Starlink satellite constellation to offer broadband internet commercially by the end of 2020. The company launched its eleventh batch of satellites and operates over 600 satellites in low-Earth orbit.
Bill Foley raises $1.3bn for blank-check company. (FS)
Veteran investor Bill Foley’s latest blank-check company has raised $1.3bn through an initial public offering after increasing the size of the deal by $100m.
Foley Trasimene Acquisition II will raise $1.5bn if the so-called greenshoe option is fully exercised by the underwriters.
Repeated issuers like Foley are flooding the market and are on the hunt for potential targets to buy. Foley’s other special purpose acquisition company, Foley Trasimene Acquisition, raised $1bn in May.
ViacomCBS in talks to sell tech site CNET to Red Ventures. (FS)
ViacomCBS is in talks to sell technology news and reviews site CNET to digital-media holding company Red Ventures, as the media giant looks to shed noncore assets and focus on video streaming. The price being discussed for CNET is about $500m, WSJ reported.
Kevin Hartz targets tech founders with blank-check firm.
Blank-check acquisition company one, backed by ticketing site Eventbrite founder Kevin Hartz, has started its search for a tech firm to merge with, as it made its stock market debut after raising $200m, Reuters reported.
The company, whose stock price closed up 1% at $10.1 on the New York Stock Exchange, is targeting fast-growing tech startups valued at around $1bn, joining the race among special purpose acquisition companies looking to take so-called unicorns public.
Evertec explores sale options.
Evertec, a Puerto Rico-based payments processor, is exploring strategic options including a potential sale. Its shares rose as much as 17% on the news, Bloomberg reported.
The company is working with a financial adviser to field interest from potential buyers. It could appeal to larger payments companies such as Global Payments and Fiserv.
Former Chancellor of the Exchequer joins JP Morgan as senior adviser. (People)
Conservative MP and former Chancellor of the Exchequer Sajid Javid is joining JP Morgan as a senior adviser on the US bank’s advisory council for Europe, the Middle East and Africa, FN reported.
“We are delighted to welcome Sajid back to JPMorgan as a senior adviser, and we look forward to drawing upon his in-depth understanding of the business and economic environment to help shape our client strategy across Europe,” JPMorgan spokesperson.
EMEA
The London Stock Exchange has set deadlines for this week and mid-September for indicative bids of all or parts of Borsa Italiana to help European Union approval for its $27bn takeover of data company Refinitiv, Reuters reported.
A bidding war for all of Borsa could be triggered, with Euronext CEO Stephane Boujnah having said he wants to add Borsa Italiana to the exchange group’s stable of European bourses.
Two other consortiums consisting of Italian state lender Cassa Depositi e Prestiti which is preparing to bid for MTS and Borsa, and lawmakers of governing Italian party 5-Star recently crafted a proposal with the help of Mediobanca to form a bidding consortium for Borsa involving CDP.
Refinitiv is advised by Canson Capital Partners, Evercore, Jefferies & Company, Corrs Chambers Westgarth, Osler Hoskin & Harcourt, Simpson Thacher & Bartlett, and Eterna Partners. LSEG is advised by RBC Capital Markets, Oliver Wyman, Barclays, Goldman Sachs, Morgan Stanley, Robey Warshaw, Blake Cassels & Graydon, Freshfields Bruckhaus Deringer, and Teneo. Legal advice to financial advisors to LSEG is provided by Herbert Smith Freehills. CPPIB is advised by Weil Gotshal and Manges. Thomson Reuters is advised by Allen & Overy.
The Competition and Markets Authority said it had opened a probe into the proposed $1bn merger of beer giants Carlsberg and Marston's. CMA is considering whether the deal would create a relevant merger situation and damage competition.
The Campaign for Real Ale has called for an investigation of the merger saying it would reduce the choice of beers available to pubgoers.
"The Competition and Markets Authority is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services," CMA.
Carlsberg is advised by Norton Rose Fulbright. Marston's is advised by Numis Securities, Instinctif Partners, and JP Morgan.
Foresight Group, an independent infrastructure and private equity investment manager, completed the acquisition of Pensions Infrastructure Platform, the infrastructure investment fund. Financial terms were not disclosed.
“We are delighted to welcome Paula and her team, whose skills and experience will add breadth and depth to our already impressive infrastructure focus. Investment in infrastructure and particularly in green infrastructure lies at the heart of the Government’s recovery plans. Our team at Foresight continues to target long-term investment into projects that are transforming the infrastructure of the UK, boosting jobs, helping accelerate the much-needed economic recovery and creating a smarter future for all,” Bernard Fairman, Foresight Chairman.
Foresight is advised by Citigate Dewe Rogerson. Pensions Infrastructure Platform is advised by Opus Corporate Finance.
Financiere Agache, a holding company controlled by Groupe Arnault, offered to acquire a 27% stake in Lagardere Capital & Management, a holding firm of Lagardere. Financial terms were not disclosed.
“This investment gives tangible form to the long-standing relationship between our two families and shows our commitment to the integrity of the Lagardère group based on its two priority areas, Lagardère Publishing and Lagardère Travel Retail,” Bernard Arnault.
The Competition and Markets Authority has launched a probe into the acquisition of Bupa Insurance's acquisition of Civil Service Healthcare, a health insurance service provider.
CMA contemplates whether the deal would create a merger situation and substantially lessen the competition within the UK market and abroad.
Norwegian Government Pension Fund managed to recover its massive losses. (FS)
The Norwegian Government Pension Fund, one of the largest pools of sovereign capital in the world, lost $21.3bn in the first half of 2020, but has made back essentially all its money as markets swiftly recovered since the end of June.
The giant fund’s 3.4% investment loss for the first six months of the year has been reversed in the six weeks that followed, said Tronde Grande, the deputy chief executive of Norges Bank Investment Management, which oversees the fund.
“The markets have performed well since the summer, especially the equity market. We have seen falling interest rates as well, which means there is some uplift on the bond portfolio. The fund is now basically at zero, or maybe a little bit plus, for the year as a whole,” Tronde Grande.
Amazon develops Morrisons deal with full-range offer.
Amazon has stepped up its move into Britain’s grocery market, expanding its relationship with Morrisons so Prime members have access to the supermarket group’s full range on the internet giant’s main website, Reuters reported.
Amazon and Morrisons have had a tie-up since 2016 and have been steadily expanding their links, leading to speculation that the US group could even emerge as a possible bidder for Britain’s number 4 supermarket chain.
APAC
Bain Capital has agreed to cough up $543m should it fail to acquire Virgin Australia, Australia’s second-biggest airline. The high break fee has helped Bain Capital win over the collapsed airline's administrator Deloitte.
Virgin’s creditors are due to vote on Bain’s takeover on Sept. 4. The potential penalty is a “strong impetus” for the firm to complete the deal “irrespective of operational challenges caused by Covid-19,” Deloitte told creditors, without specifying the sum, Bloomberg reported.
Virgin Australia is advised by Deloitte, Houlihan Lokey, Morgan Stanley, and Clayton Utz. Bain Capital is advised by Herbert Smith Freehills.
FANCL Asia owner starts the sale that could fetch $1bn.
The owner of skin care brand FANCL in Asia ex-Japan has hired Morgan Stanley to initiate a sale, targeting strategic and private equity investors for a deal that could fetch $1bn, Reuters reported.
Hong Kong-based Chris Chan is sole distributor of FANCL’s brand in Asia outside its home market of Japan, operating over 200 stores in Greater China and Southeast Asia via his company CMC Holdings.
The sale, which has not been reported before, comes as the retail sector globally grapples with shifts in consumer spending brought about by the Covid-19 pandemic.
Takeda is preparing to sell Japan consumer health unit to Blackstone. (FS)
Japan’s Takeda Pharmaceutical is making final arrangements to sell its domestic over-the-counter business to US investment fund Blackstone, Reuters reported.
Takeda, Japan’s largest pharma company, has been reducing its OTC assets worldwide as it seeks to refocus its business and reduce debt following its $59bn acquisition of Shire.
Blackstone was among final bidders for the OTC unit, along with Bain Capital, CVC Capital Partners and Taisho Pharmaceutical.
Sun Life nears deal to buy Crescent Capital. (FS)
Sun Life Financial is in advanced talks to acquire Crescent Capital, the $28bn credit manager co-founded by Milwaukee Brewers co-owner Mark Attanasio, Bloomberg reported. A transaction could be announced as soon as this month.
Sun Life said last year it was looking to boost its private-credit offerings. The Canadian insurer is willing to spend $500m to $1bn on firms with operations in North American and Europe that have more than $10bn in managed assets in mid-market lending, mezzanine financing or other areas of the private credit space.
Archer Daniels Midland to cut stake in Wilmar.
Grain trader Archer Daniels Midland said it plans to sell shares and bonds in Singapore-based Wilmar International with a combined value of $800m.
ADM, which is one of Wilmar’s largest shareholders, added that it expects to retain at least a 20% stake in the agribusiness firm.
Two of ADM’s units will undertake the proposed sale of Wilmar’s ordinary shares for about $500m pursuant to a secondary block trade agreement with a syndicate of managers, the Chicago-based company said.
Bennet Coleman mulls the minority stake sale in Internet unit.
Bennett Coleman is considering selling a stake in its Internet unit, as the publisher of The Times of India looks to expand the business in one of the world’s fastest-growing digital markets.
The Indian conglomerate, also known as the Times Group, is working with an adviser to explore options for a 10% stake in Times Internet. It is looking to bring in financial or strategic investors including global technology companies, for India’s biggest digital firm.
Bennett Coleman aims to start discussions with prospective suitors as soon as this month, one of the people said. It is too early to tell the value of a minority stake as deliberations are at an early stage. The conglomerate could still decide not to proceed with a deal.
Tahoe weights $300m healthcare unit sale.
China’s Tahoe Investment Group is weighing a sale of its US health care unit that could fetch $300m to $400m, Bloomberg reported.
Tahoe Investment had preliminary discussions with financial advisers on a potential divestment of Alliance Healthcare Services, an Irvine, California-based company it bought in 2017. Deliberations are at an early stage and Tahoe Investment could decide to keep the business.
Indian government keen to speed up stake sale in four banks.
Indian Prime Minister Narendra Modi’s office has asked officials to speed up the process of trimming government stakes in at least four primarily state-owned banks within the current fiscal year, Reuters reported.
The four lenders are Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank, in which the Indian government owns majority stakes through direct and indirect holdings.
New Delhi wants to overhaul the banking sector and is also pushing the privatisation of banks and other state-run companies to help raise funds for budgeted spending amid a fall in tax collections due to the economic downturn caused by the pandemic.
BASF and Idemitsu to terminate their joint venture in Japan.
BASF Idemitsu, a joint venture between BASF, a German multinational chemical company, and Idemitsu Kosan, a Japanese petroleum company, will be closing its 1,4-Butanediol plant at Chiba, Japan in December 2020. The joint venture agreement between BASF and IKC will be terminated thereafter.
“The closure of the Chiba plant has become inevitable due to a declining BDO market size in Japan and significant overcapacities in Asia due to recent investments into new coal-based BDO production sites,” Masaru Saitoh, BASF Idemitsu President.
L&T Finance weighs $450m rights issue.
L&T Finance is exploring a plan to raise around $450m through a rights issue, Bloomberg reported.
The financial services arm of Larsen & Toubro has started discussing the fundraising with potential advisers. L&T Finance’s parent, India’s largest engineering and construction company, has agreed it would buy any unsold shares in the offering.
|
