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AMERICAS
Kansas City Southern, a transportation holding company, terminated its $29bn merger agreement with Canadian Pacific Railway in favor of a competing $34bn proposal from Canadian National Railway, a dramatic turn with big implications for the shape of the US rail industry.
The expected move follows a decision by Canadian Pacific to hold firm on the terms of its already-agreed deal with Kansas City Southern after the US railroad operator indicated it would favor a topping bid by Canadian National.
In connection with the termination of the Canadian Pacific merger agreement, Kansas City Southern paid Canadian Pacific a breakup fee of $700m, which will be reimbursed by Canadian National, WSJ reported.
Kansas City is advised by Bank of America, Morgan Stanley, Baker & Miller, Davies Ward Phillips & Vineberg, Wachtell Lipton Rosen & Katz, White & Case, WilmerHale, Joele Frank and MacKenzie Partners. Financial advisors are advised by Willkie Farr & Gallagher. Canadian National is advised by Centerview Partners, JP Morgan, RBC Capital Markets, Cravath Swaine & Moore, Norton Rose Fulbright, Sidley Austin, Stikeman Elliott, Torys, Brunswick Group and Longview Communications.
Owl Rock Capital, a specialty finance company, Neuberger Berman-backed Dyal Capital Partners, an asset manager, and Altimar Acquisition, a blank check company, completed the formation of Blue Owl Capital, an alternative asset management firm with over $45bn in assets under management, in a $12.5bn deal.
"Today marks an important milestone in our mission to provide public investors access to the fastest growing areas of private markets and our clients with access to attractive private investments to help them achieve their return objectives. We are excited about the opportunity to deliver value for our shareholders by continuing to grow our leadership position in the alternative asset management industry," Doug Ostrover, Blue Owl CEO.
Altimar Acquisition was advised by JP Morgan, Paul Weiss Rifkind Wharton & Garrison and Prosek Partners. Neuberger Berman was advised by Ardea Partners, Citigroup, UBS and Skadden Arps Slate Meagher & Flom. Dyal Capital was advised by Ardea Partners, Evercore, Fried Frank Harris Shriver & Jacobson and Prosek Partners. Owl Rock was advised by Bank of America, Goldman Sachs, Perella Weinberg Partners, Kirkland & Ellis and Prosek Partners. ICONIQ Capital was advised by Sard Verbinnen & Co.
European regulators cleared SK. Hynix’s $9bn acquisition of Intels' Nand storage unit, taking another step toward sealing a deal to strengthen the Asian chipmaker’s position in the booming memory market, Bloomberg reported.
The European Commission has granted approval for the acquisition. Hynix had earlier secured a greenlight from US regulators and awaits approval from the UK and China. Icheon, South Korea-based Hynix, which announced the deal in October, is trying to win approval from the remaining countries this year.
SK Hynix is advised by Deloitte, Citigroup, Credit Suisse, Fangda Partners and Skadden Arps Slate Meagher & Flom. Intel is advised by Bank of America, Bae Kim & Lee, Galicia Abogados, Linklaters, Munger Tolles & Olson, WilmerHale, Brunswick Group and Sard Verbinnen & Co.
Shaw Communications shareholders voted in favour of a proposed sale of the company to Rogers Communications, a Canadian communications and media company, for $21bn. In total, 99.8% of votes cast at a special virtual meeting were in favour of the plan of arrangement, well above the required two-thirds support.
“Today marks an important milestone in the journey to combine Shaw and Rogers, creating a truly national network provider with far-reaching and multi-generational benefits for all Canadians. Shaw’s shareholders overwhelmingly supported the transaction and the high voter turnout, which exceeded 70%, represents a strong endorsement for the combination,” Brad Shaw, Shaw Communications Chairman and CEO.
Shaw Communication is advised by CIBC World Markets, TD Securities, Burnet Duckworth & Palmer, Davies Ward Phillips & Vineberg, Dentons and Wachtell Lipton Rosen & Katz. Rogers Communication is advised by Bank of America, Barclays, Cravath Swaine & Moore, Goodmans and Torys. Financial advisors are advised by Latham & Watkins.
Social Capital Hedosophia V, a special purposes acquisition vehicle, recommended its shareholders to vote in favor of the $8.65bn deal with Social Finance, a financial services platform.
The business combination is expected to be completed on May 28. Social Capital Hedosophia Holdings V shares will then be exchanged one-for-one for SoFi shares and transferred to the Nasdaq exchange. Social Finance Technologies stock is scheduled to begin trading on Tuesday, June 1, using the ticker SOFI.
SoFi is advised by Citigroup, Goldman Sachs, Goodwin Procter, Wachtell Lipton Rosen & Katz and Blueshirt Group. Social Capital Hedsophia V is advised by Connaught, Credit Suisse, Skadden Arps Slate Meagher & Flom, Finsbury Glover Hering and Gasthalter & Co. Silver Lake is advised by Simpson Thacher & Bartlett.
FirstGroup’s second-biggest shareholder Schroders said it planned to vote against the company’s $4.6bn sale of its North American bus businesses to private equity firm EQT, joining top investor Coast Capital in opposing the deal. The deal has the backing of Columbia Threadneedle Investments, FirstGroup’s third-largest shareholder with a stake of around 10%, Reuters reported.
The move comes after activist hedge fund Coast Capital asked other FirstGroup investors to vote against the proposed sale of the crown jewel assets unless the offer was improved.
"After careful consideration of the merits of the proposed sale...we have the intention of voting against the deal as it stands, as we believe it undervalues these businesses. We continue to have full confidence in Chairman David Martin to provide the necessary leadership and vision for the ongoing business,” Schroders spokesperson.
EQT is advised by BMO Capital Markets, Barclays, Morgan Stanley and Simpson Thacher & Bartlett. FirstGroup is advised by Goldman Sachs, JP Morgan, Rothschild & Co, Davis Polk & Wardwell and Brunswick Group.
Platinum Equity-backed Mad Engine, a wholesaler of licensed, branded and private label apparel and accessories, agreed to merge with Fifth Sun, a designer, distributor, and technology-driven innovator of print-on-demand manufacturing and supply chain systems for a wide range of licensed, generic, and private label graphic apparel. Financial terms were not disclosed.
"As the eCommerce channel for apparel and accessories continues to grow, demand for digital solutions like direct-to-garment and print-on-demand is accelerating. Bringing these two companies together will not only better meet the changing needs of licensors and customers, it will also help both businesses diversify and capture opportunities in this substantial emerging market," Jacob Kotzubei, Platinum Equity Partner.
Fifth Sun is advised by CriticalPoint Partners and Buchalter. Platinum Equity is advised by Lincoln International, Alston & Bird and Gibson Dunn & Crutcher. Debt financing is provided by Credit Suisse, Deutsche Bank and Wells Fargo Securities.
Jam City, a mobile entertainment company behind some of the world's highest-grossing mobile games, agreed to go public via a merger with DPCM Capital, a publicly-traded special purpose acquisition company, in a $1.2bn deal.
"We believe Jam City is at the forefront of mobile gaming, and its unique Games-as-a-Service model has proven to sustain player retention and drive monetization. We are proud to partner with Chris, Josh and the team in their efforts to continue Jam City's growth and further define the company as a category-defining entertainment brand," Emil Michael, DPCM Capital Chairman and CEO.
Jam City is advised by The Raine Group, Fenwick & West and ICR. DPCM Capital is advised by UBS and Greenberg Traurig. Netmarble is advised by Paul Hastings.
Tribune Publishing announced that its stockholders voted to approve the definitive merger agreement with private equity firm Alden Global Capital at a special meeting of the company's stockholders. Holders of approximately 81.28% of the shares held by non-Alden stockholders have voted to approve the merger agreement, in excess of the two-thirds minimum required.
"Today's results represent an important milestone in completing the transaction, and we appreciate the strong support we received from Tribune stockholders," Philip G. Franklin, Tribune Chairman of the Board.
Tribune is advised by Lazard, Davis Polk & Wardwell and Joele Frank. Alden Global is advised by Moelis & Co and Akin Gump Strauss Hauer & Feld.
Ares Management, a private equity firm, agreed to acquire Black Creek Group, a real estate investment management firm. Financial terms were not disclosed.
“We are very pleased to enter into this strategic transaction with Black Creek, which further scales our real estate business, expands us into core / core-plus strategies and provides us with a leading non-traded REIT retail distribution platform. We believe that this highly complementary combination will add meaningful revenue synergies for our real estate business as we offer new products to our existing investor base," Michael Arougheti, Ares President and CEO.
Black Creek Group is advised by Hodes Weill Securities and Simpson Thacher & Bartlett. Ares Management is advised by Eastdil Secured, Latham & Watkins and Brunswick Group.
Financial services company FBL Financial Group announced that its shareholders approved its $575m acquisition by Farm Bureau Property & Casualty Insurance Company.
“Throughout this process, the Special Committee was singularly focused on maximizing value for FBL Financial Group’s unaffiliated shareholders and we welcome their support. Over the coming days, FBL Financial Group will be focused on working with FBPCIC to complete the transaction, and on maintaining FBL Financial Group’s dedication to protecting the livelihoods and futures of our client/members as a private company," Paul Larson, FBL Financial Chairman.
FBL Financial is advised by Barclays and Sard Verbinnen & Co. FBPCIC is advised by Goldman Sachs and Skadden Arps Slate Meagher & Flom.
Thoma Bravo-backed Majesco, a provider of cloud insurance platform software, agreed to acquire Utilant, a US-based InsurTech company, from private equity firm Aquiline. Financial terms were not disclosed.
"We’re thrilled to welcome Utilant’s customers to our community and look forward to working with them to accelerate their digital transformation," Adam Elster, Majesco CEO.
Utilant is advised by Raymond James. Majesco is advised by Nomura and Sheppard Mullin Richter & Hampton.
SDCL Energy Efficiency Income Trust, a UK-listed investment company that invests exclusively in the energy efficiency sector, completed the acquisition of RED-Rochester, a district energy systems provider, from Stonepeak Infrastructure Partners, a private equity firm, for $177m.
"We expect the project to make positive contributions to SEEIT's earnings and cash flow. At the same time, the project offers the potential for growth over the medium to long term through the addition of new customers and the implementation of accretive energy efficiency measures," Jonathan Maxwell, SEEIT CEO and Founder.
SDCL was advised by Jefferies & Company and TB Cardew.
Baillie Gifford led a $300m Series E round in Workrise, a workforce management platform, with participation from Franklin Templeton, Founders Fund, Bedrock Capital, Andreessen Horowitz, Moore Strategic Ventures, 137 Ventures, and Brookfield.
"The shift to clean energy and a redoubling of investment in infrastructure are opening up jobs that are desperately in need of filling. Our platform makes it easier for skilled workers to find work and for companies to hire in-demand workers. We are grateful to everyone who has backed our vision for bringing infrastructure and energy staffing into the future," Xuan Yong, Workrise CEO.
Workrise was advised by Untitled Partners.
Morgan Stanley Capital Partners, a middle-market focused private equity fund, completed an investment in Nivel Parts & Manufacturing, a manufacturer and supplier of branded aftermarket parts for personal transportation vehicles, from Kelso & Company, a private equity firm. Financial terms were not disclosed.
“We are delighted to partner with Nivel and its talented management team led by Brent Moore. The Company has differentiated itself through continued product innovation across vehicle categories and by providing best-in-class customer service to its highly passionate customer base. We look forward to working with Brent and the team to further scale the company through organic growth and strategic acquisitions,” Aaron Sack, MSCP Managing Director.
MSCP was advised by Jones Day.
ThayerMahan, a provider of autonomous maritime security solutions, agreed to acquire Wingman Defense, an artificial intelligence startup based in Park City, Utah. Financial terms were not disclosed.
"With the acquisition of Wingman Defense, ThayerMahan completed its goal of vertically integrating its ability to collect, curate, disseminate, and apply machine learning tools to ocean acoustic information and precision seabed survey. Wingman's AI capability will help ThayerMahan's global customers in government and industry improve the efficiency with which they monitor the safety and security of ports, harbors, seabed infrastructure, marine protected areas, and vital sea lanes," Mike Connor, ThayerMahan President and CEO.
ThayerMahan is advised by Wilson Sonsini Goodrich & Rosati.
Private equity firm SFW Capital Partners completed the investment in Pion, a provider of analytical instrumentation for formulation development and quality control in the life sciences industry. Financial terms were not disclosed.
"Pion's high-value products, proprietary technology, deep customer relationships, and significant opportunities for growth make it an obvious fit with SFW's investment philosophy," Ahmad Sheikh, SFW Partner.
SFW was advised by Stanton PRM.
Marfrig Global Foods, a Brazilian beef producer, agreed to acquire a 24.23% stake in BRF, one of the biggest food companies in the world, for $800m.
The acquisition in BRF aims to diversify Marfrig's investments in a segment that has complementarities with its sector of activity in a company where the Administration has been carrying out recognized management.
Andreessen Horowitz, a private American venture capital firm, led a $130m Series C round in Loom, a video messaging platform for work, with participation from ICONIQ Growth, Kleiner Perkins, Sequoia Capital, Coatue Management, and General Catalyst.
"The time is now to rethink how work happens, the tools that support it, and how they fit together. This is a change on a generational scale. That begins with embracing new models of working, but also using tools that foster high-performing, sustainable cultures. We believe Loom is the future of communication at work and essential to making that shift successfully. Our growth over the past year, coupled with this new financing, validate that we're well on our way to delivering a new standard for teams worldwide," Joe Thomas, Loom CEO.
Group 11 led a $130m Series D round in Sunbit, a buy now, pay later technology provider, with participation from Zeev Ventures, Migdal Insurance, Harel Group, AltaIR Capital and More Investment House.
"The continued support from existing investors as well as new commitments from esteemed investors such as Migdal Insurance and Harel Group underscores the impact we are making in the sizable markets we serve," Arad Levertov, Sunbit CEO.
SeaSpine Holdings, a global medical technology company, completed the acquisition of 7D Surgical, a developer of advanced optical technologies and machine vision-based registration algorithms, for $110m.
"We are truly excited to welcome the 7D Surgical team and their market-leading Flash Navigation technology to the SeaSpine family. The acquisition of 7D Surgical brings an additive core competency to the organization and complements our innovative philosophy and approach to improving spine surgery by delivering clinical value and improving surgeon, staff and patient safety profile compared to other navigation technologies in the market," Keith C. Valentine, SeaSpine President and Chief Executive Officer.
Five Arrows-backed Averhealth, a provider of substance use monitoring and treatment services, completed the acquisition of Aspenti Health, a healthcare company located in Burlington, Vermont. Financial terms were not disclosed.
"The acquisition of Aspenti broadens Averhealth's referral base to include physicians, treatment centers and healthcare systems. Aspenti's social mission of promoting positive change, improving well-being and creating a better world perfectly aligns with Averhealth's mission of reclaiming lives, uniting families and strengthening communities. This is a perfect fit for us as we advance our goal of improving patient outcomes for those struggling with substance use disorder," Jason Herzog, Averhealth CEO.
Rimkus Consulting Group, a provider of forensic engineering and technical consulting services, completed the acquisition of M&E Engineering Consultants, an engineering consulting services provider. Financial terms were not disclosed.
“M & E Engineering Consultants brings a rich, 40-year history of practicing engineering in Ontario to our firm, and we couldn’t be more pleased to welcome them to the Rimkus family. Their market leadership and reputation for client success aligns closely with our growth strategy. Together, our teams are positioned for long-term success, with the ability to quickly scale and meet our clients’ mechanical, electrical, and life safety challenges,” Robert Kocher, Rimkus Consulting President and CEO.
Sysco, a global foodservice distribution company, agreed to acquire Greco and Sons, an independent Italian specialty distributor in the United States, from private equity firm Arbor Investments. Financial terms were not disclosed.
"We are excited to welcome Eddie Greco and the rest of the Greco and Sons family to Sysco. The addition of this great company to Sysco's portfolio of specialty companies will enable us to better serve Italian-focused customers by establishing a new Cuisine-Focused Selling platform. Greco has perfected a go-to-market approach to serve the Italian segment, and we are committed to maintaining that excellence and expanding the capability to new geographies, over time," Kevin Hourican, Sysco President and CEO.
Arthur J. Gallagher, a global insurance brokerage, risk management and consulting services firm, agreed to acquire Garner & Glover Company, an independent agency offering a full array of business and personal property/casualty, life and benefits products. Financial terms were not disclosed.
"Garner & Glover brings to Gallagher a strong and talented leadership, service and production team in an attractive and growing region of the US. We are delighted to welcome Matt, Chuck and their associates to our growing, global team," J. Patrick Gallagher, Chairman, President and CEO.
GCG Wealth Management, an independent, regional financial services firm, completed the acquisition of Cooper Investment Company, a wealth management firm. Financial terms were not disclosed.
"Joel and his team understand the importance of generational wealth building, and the value of succession planning. That is what attracted me to GCG Wealth Management," Greg Cooper, Cooper Investment Company President.
EOS Investors, a privately held real estate investment firm, agreed to acquire Ocean Suites Bethany Beach, Residence Inn and Holiday Inn Express Bethany Beach, two hotels in the Mid-Atlantic region. Financial terms were not disclosed.
"EOS is excited to welcome two additional drive-to leisure properties to the portfolio while expanding its footprint in the Delaware beaches. These two assets continue our strategic approach of identifying unique assets in high barrier-to-entry markets with attractive long-term demand growth," Tom Burns, EOS Managing Director.
GSK exits Innoviva in a $392m deal.
GlaxoSmithKline sold its entire stake in Innoviva back to the US-based company for about $392m, GSK said as it simplifies operations ahead of a split into two businesses.
The London-listed company sold its stake of about 32% in Nasdaq-listed Innoviva for $12.25 per share, a marginal discount to the stock's closing price of $12.29 on Wednesday, Reuters reported.
Existing royalty payment contracts between the companies on respiratory treatments are not affected by the share sale, GSK said, adding the disposal frees up capital for more investments.
Ford considers divesting unit Spin.
American multinational automaker Ford Motor Company is considering divesting its electric scooter-sharing service Spin, Bloomberg reported. Ford acquired Spin in 2018. The company operates dockless electric scooters on campuses and cities in North America and Europe.
The company is working with an adviser to examine strategic options including a sale or spinoff of the unit. It could also look to merge the unit with a special purpose acquisition company.
Algoma Steel looking to go public via Legato SPAC.
Canada's Algoma Steel, an integrated primary steel producer, is in talks to go public through a merger with Legato Merger, a blank check-firm, according to a Bloomberg report.
A deal is set to value the combined entity at more than $1bn. Terms could change and, as with all transactions that aren't yet finalized, it's possible talks could collapse.
Squarespace reaches a $6.5bn valuation in IPO.
Squarespace, an American website building and hosting company, reached a $6.5bn valuation in its IPO, a steep drop from the $10bn valuation after its funding round announced in March.
Shares of the website building and hosting company opened at $48, down from the reference price of $50 a share.
FIGS eyes a $3bn valuation in IPO.
FIGS, an American healthcare apparel brand based in Santa Monica, is aiming for a valuation of more than $3bn in its US initial public offering. About 1% of the 22.5m Class A shares on offer will be reserved for retail investors through online brokerage app Robinhood, FIGS said.
FIGS said it is offering about 5.9m Class A shares priced between $16 and $19 each, while existing investors will sell about 16.6m shares. At the top end of the range, it will raise about $427m.
TradersClub seeks $565m valuation in IPO.
TradersClub, a Brazilian financial social media platform, is looking to reach a valuation of $565m in its upcoming initial public offering. The company filed for an IPO to fund expansion and potential acquisitions.
The company , also known as TC, is aiming to price the offering in the first half of July.
TradersClub is advised by BTG Pactual and Banco Modal.
Elliott-backed Triple Flag prices IPO at $250m. (FS)
Elliott-backed Triple Flag, a pure play precious metals streaming and royalty company, priced its initial public offering at $250m. The proceeds will be used to repay the firm's debt.
Triple Flag provides up-front financing to miners in exchange for a share of future revenue or production. It holds royalty interests in Alamos Gold's Young-Davidson mine in Ontario and Kirkland Lake Gold's Fosterville underground mine in Australia.
Triple Flag was advised by Bank of America, Credit Suisse and Scotiabank.
SmartFit files for IPO.
SmartFit, a Latin American gym chain, filed for an initial public offering to raise funds for its expansion. The planned IPO move comes as many fitness chains have been forced to close gyms during coronavirus lockdowns.
An IPO filing on Wednesday by SmartFit did not mention its planned valuation, Reuters reported.
Bain Capital closes two funds at $1.3bn. (FS)
WSJ reported that Bain Capital Ventures closed two new funds worth a combined $1.3bn that will mostly target early-stage startups, as it continues to pivot away from growth investments.
The fresh capital raised by the venture-capital arm of private-equity giant Bain Capital will back a $950m core fund for seed and Series A investments and a $350m co-investment fund for growth opportunities. The infusion lifts assets under management to $8.3bn.
Rainier Partners looking to raise $250m for debut buyout fund. (FS)
Rainier Partners, a private equity firm rooted in the Pacific Northwest, is looking to raise $250m for its debut fund.
Rainier's approach is to develop a partnership with owners and management teams, combined with an open, collaborative form of communication, that allows businesses to accelerate their profit growth.
7wireVentures raises $150m for new digital health fund. (FS)
7wireVentures, the venture capital firm that backed Livongo and other healthcare technology companies, raised $150m for a new connected consumer fund.
"Our newest 7wireVentures fund will allow our firm to grow companies that enable a superior consumer-directed health and care experience and address the problems of healthcare," Lee Shapiro, 7wireVentures Partner.
EMEA
Allianz Global Investors, which owns an 8.6% holding in UDG Healthcare, said the $3.7bn offer for the company from private equity firm Clayton, Dubilier & Rice is opportunistic and significantly undervalues UDG and its prospects.
“Having come through the trials of the pandemic with a strong balance sheet, AllianzGI believes UDG can realise the potential of recent acquisitions, consider further inorganic opportunities and improve the efficiency of its capital structure,” Allianz GI.
UDG Healthcare is advised by Davy Corporate Finance, Liberum Capital, Peel Hunt, Goldman Sachs, Rothschild & Co, A&L Goodbody, Freshfields Bruckhaus Deringer and Powerscourt. CD&R is advised by Citigroup, Deutsche Bank, JP Morgan, Clifford Chance, Debevoise & Plimpton, William Fry and Teneo.
Asset manager Schroders, the second-largest shareholder at John Laing, backed private equity firm KKR’s $2.8bn bid for the British infrastructure firm. Schroders owns nearly 8% of John Laing.
“As a major shareholder in John Laing we believe management have secured a fair deal for all stakeholders,” Schroders spokesperson.
John Laing is advised by Barclays, Peel Hunt, Evercore, Freshfields Bruckhaus Deringer and Tulchan Communications. Equitix is advised by Goldman Sachs and Ashurst. KKR is advised by Goldman Sachs, Herbert Smith Freehills, Simpson Thacher & Bartlett and Finsbury Glover Hering.
PPG announced that it has received regulatory approval from the Federal Antimonopoly Service of Russia for the completion of its $1.8bn tender offer for all of the shares of Tikkurila.
With this approval, PPG has received all required regulatory approvals for completion of the tender offer and has announced that the tender offer will expire on June 4, 2021. PPG expects to complete the tender offer and close the transaction on or about June 10, 2021.
Tikkurila is advised by SEB Corporate Finance and Hannes Snellman. PPG Industries is advised by D.F. King & Co, Danske Bank, PJT Partners, DLA Piper and Wachtell Lipton Rosen & Katz.
HIG Capital, a private equity firm, agreed to acquire the UK plumbing and heating business of Travis Perkins, a home improvement company, for $461m.
“We are thrilled to welcome the Plumbing & Heating business from Travis Perkins into the HIG family. HIG has had great success investing in speciality distribution assets, and we will use this experience to support management in maximising the Company’s potential. This transaction is an ideal fit with our investment mandate and once more underscores HIG’s ability to execute on complex transactions such as carve-outs," Markus Noe-Nordberg, HIG Managing Director.
HIG Capital is advised by Skadden Arps Slate Meagher & Flom. Travis Perkins is advised by Morgan Stanley, Linklaters and Powerscourt.
Kistos, a closed-ended investment company, completed the acquisition of Tulip Oil Netherlands, an oil and gas exploration company, for $460m.
"We are very excited for the future of Kistos, with a proven low cost production base from the Q10-A field and two further appraisal wells planned this year, we look forward to extending our reserves base and increasing our presence in the Q Block core area . We welcome the team at Tulip on board. They have shown great professionalism and ability in the way they have led activity in the Q-Block area to date. We look forward to working together as we continue to grow Kistos into a company which can play a role in the broader energy transition," Andrew Austin, Kistos Chairman.
Tulip Oil was advised by Jefferies & Company and Stibbe. Kistos was advised by Panmure Gordon & Co and Camarco.
Biffa, a waste management company, agreed to acquire collections business and certain recycling assets of KKR-backed Viridor, a recycling, renewable energy and waste management company, for $178m.
“The acquisition of Viridor’s Collections business, and certain Recycling assets, is a compelling opportunity for Biffa. The addition of Viridor’s $120m collections revenues builds on the group’s strong track record as the leading market consolidator in the highly fragmented I&C collections market. In addition, the acquired recycling and treatment assets broadens our coverage and control of materials, strengthening Biffa’s position as one of the largest recyclers of post-consumer materials in UK," Michael Topham, Biffa CEO.
Biffa is advised by HSBC, Rothschild & Co and Houston PR. KKR is advised by UBS.
Synthos, a manufacturer of synthetic rubbers, styrene plastics, and vinyl and copolymer dispersions, agreed to acquire the synthetic rubber business of Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, for $491m.
"In pursuing our transformation strategy toward becoming a higher margin and less cyclical specialty materials and sustainable solutions provider, we believe our best path is to focus on growth in Engineered Materials and CASE applications. Following the acquisition of Arkema's PMMA business, the divestiture of Synthetic Rubber provides Trinseo with a stronger balance sheet and greater flexibility to pursue organic and acquisition growth opportunities," Frank Bozich, Trinseo President and CEO.
Trinseo is advised by Deutsche Bank and Clifford Chance. Deutsche Bank is advised by Debevoise & Plimpton.
Attestor, an investment fund, agreed to acquire a 51% stake in Condor, a German airline operator, for $244m.
"By investing in Condor, we are not only creating the foundation for a successful restart, but are also paving the way forward for the company’s long-term development into Europe’s leading charter airline. To this end, we will invest substantially to modernize the Condor fleet.,” Jan-Christoph Peters, Attestor Founder and Owner.
Condor is advised by Rothschild & Co and Noerr. Attestor is advised by Finsbury Glover Hering.
CELLINK, a bioconvergence startup, agreed to acquire Nanoscribe, a German company focusing on development of high-precision 3D printers, for €50m ($61m).
"With this strategic acquisition of Nanoscribe, we will further strengthen our market-leading position within the 3D bioprinting segment. With Nanoscribe's state-of-the-art 2PP technology, we will complement our product portfolio and offer a wider range of products to our amazing customers. We are combining our strong, purpose-driven growth agenda with trailblazing bioconverging technologies for the sake of improving health all around the world," Erik Gatenholm, CELLINK CEO.
CELLINK is advised by Zacco, Duff & Phelps and Hengeler Mueller.
Saint-Gobain, a French multinational corporation, agreed to acquire Chryso Group, a provider of specialty chemicals for the construction industry, from Cinven, a private equity firm, for $1.2bn.
“We are very enthusiastic to join Saint-Gobain and to build the next chapter of Chryso’s growth story together. This represents a great recognition for all the accomplishments of Chryso’s team over the past years. Saint-Gobain is the ideal strategic partner with a worldwide presence in the construction chemicals market and a large portfolio of solutions, with R&D and innovation capabilities and operational excellence that will allow Chryso to accelerate its development and ensure its continued success," Thierry Bernard, Chryso CEO.
Saint-Gobain is advised by Lazard and Gide Loyrette Nouel.
Nanosys, a provider of quantum dot light-emitting materials and technology, agreed to acquire glō, a technology company for microLED displays. Financial terms were not disclosed.
"Nanosys created a vibrant, growing marketplace for our proprietary quantum dot technology over the past two decades. Combining the best Quantum Dot and microLED technologies allows Nanosys to unlock the disruptive potential of microLED by lowering production cost and maximizing performance. Together, we can create the smallest, brightest, lowest cost pixels that will enable microLED to penetrate the mainstream TV market and open the doors for new applications in AR, automotive and beyond," Jason Hartlove, Nanosys President and CEO.
Nanosys is advised by Jefferies & Company and Latham & Watkins.
Liberty Global, an Anglo-Dutch-American multinational telecommunications company, and Digital Colony, a global investment firm, agreed to form AtlasEdge Data Centres, a European Edge data center business. Financial terms were not disclosed.
"Combining Liberty Global's technical real estate and track record in building successful, sustainable businesses with Digital Colony's expertise in digital infrastructure investment creates an exciting platform for growth that will deliver long-term value. The proposed joint venture presents significant growth opportunities as we look to build this business into a leading European edge data center operator. Furthermore, since several of our operating companies will become anchor tenants, Liberty Global customers will also benefit from better and more responsive services," Mike Fries, Liberty Global CEO.
Liberty Global is advised by Jefferies & Company. Digital Colony is advised by Joele Frank.
Lars Larsen Group, an investment company, completed the acquisition of SOFACOMPANY, a Danish furniture brand, from Procuritas, a private equity firm. Financial terms were not disclosed.
“We are delighted to have sold SOFACOMPANY to the Lars Larsen Group, which is a great fit for the business to complete its next stage of growth. During the course of our ownership we have overseen transformational growth through building up the company’s e-commerce capabilities and shifting its focus from wholesale channels to a direct-to-consumer brand as well as significant geographical expansion," Mattias Feiff, Procuritas Co-Managing Partner.
Procuritas was advised by Kepler Communications.
Altor, a private equity firm focused on leveraged buyout and growth capital investments, agreed to invest in Totême, a fashion label in the modern luxury sector. Financial terms were not disclosed.
"We are very impressed by what Totême, the management team and the employees have achieved to date. Totême has been built to a global fashion brand focused on high-quality products and slow fashion consumerism. We are excited to partner with the visionary founders, Elin Kling and Karl Lindman, and the CEO Johanna Andersson to support their vision of developing a world-class luxury fashion house," Stefan Linder, Altor Partner.
Totême is advised by Rothschild & Co.
Ailancy, a firm specialized in management and organizational advisory, agreed to acquire Headlink Partners, a management consulting company. Financial terms were not disclosed.
"This merger also creates the only advisory alternative to guarantee the sovereignty of French banking and insurance players," Ailancy.
Ailancy is advised by Rothschild & Co.
A consortium of private equity firms including Abu Dhabi Investment Authority, GIC, Neuberger Berman and Soros Fund Management completed a £1bn ($1.4bn) investment in TDR Capital-backed Constellation Automotive Group, a vertically integrated digital used car marketplace.
“Constellation’s marketplaces, technology, data and infrastructure provide the backbone of the used car market across Europe. This funding round demonstrates the scale of the opportunity ahead of us and allows us to turbocharge our business model and geographical reach in one of the most exciting and fastest growing retail markets in the world," Avril Palmer-Baunack, Constellation CEO.
Snap, an American camera and social media company, agreed to acquire WaveOptics, a maker of optical systems for augmented-reality headsets, for $500m.
For Snap, the purchase scoops up the maker of a key component for AR glasses in a nascent but quickly growing industry. WaveOptics will continue to supply other companies with its waveguides and work with Snap on custom optical systems.
ESCO Technologies, a global provider of highly engineered products, agreed to acquire Altanova, a supplier in the field of advanced condition assessment technologies centered around partial discharge measurement and analysis. Financial terms were not disclosed.
"I'm excited to welcome the outstanding and dedicated employees of Altanova to our team, and I'm pleased that Gino has agreed to remain with the company, post-closing. I look forward to working with Gino as he has successfully grown and managed this outstanding company for many years and I'm certain his future contributions will be meaningful," Vic Richey, ESCO Chairman and CEO.
Carrera of America, a producer of slot racing sets and R/C cars, completed the merger with Revell, a creator of true-to-the-original plastic model kits. Financial terms were not disclosed.
"We quickly recognized that there are synergies between the Revell and Carrera brands. Both companies have long histories with strong, enthusiastic fan bases – so while we didn't want to alter the end product, we are excited to offer a better, more streamlined operation for our business partners and expand our operations into Latin America. With slot cars and realistic models, we have something for every age group – children to adults – and this partnership will allow us to now bring those to more people around the world," Tiessen, Carrera Revell of Americas Co-President.
Benshaw, a provider of applied motor control solutions, completed the acquisition of Hiconics Europe, one of the largest manufacturers of medium voltage drives worldwide. Financial terms were not disclosed.
"We are pleased to have the Hiconics Europe team bring their expertise to Benshaw and our affiliated companies — Aucom Electronics and Excel Industrial Electronics. We will build IEC rated products at our German factory and UL listed products in our Pittsburgh facility after completion of UL compliance testing," Pete Morgan, Benshaw President.
KB Holding sold more than half of its stake in Luftansa. (FS)
KB Holding, Thiele family’s investment vehicle, sold 33m of its 60m shares in airlines group Deutsche Lufthansa, at a placement price of at $11.95per share, Reuters reported.
The deal came after Heinz Hermann Thiele died in February at the age of 79. Thiele had acquired a major stake in Lufthansa and became a highly visible public figure last year when portrayed as the main obstacle to the state bailout the airline needed to survive the coronavirus crisis.
Morgan Stanley was acting as bookrunner for the sale.
Nexi in talks to buy stake in Alpha Bank's payment business.
Reuters reported that Italian payments group Nexi is in talks with Alpha Bank to take a stake in the Greek bank's retailers payment business.
JSW Steel examining bid for Gupta's British business.
JSW Steel, India's largest steel producer, is considering a bid to buy Liberty Steel in Britain as well as mills elsewhere, as would-be buyers circle Sanjeev Gupta's global commodities empire.
JSW's interest, which extends to plants including Gupta's Adhunik steel mill in eastern India, could mark yet another chapter for Britain's steel industry, which has been privatized and sold to overseas buyers as its pre-eminence slid in lock-step with the country's manufacturing might, Reuters reported.
Absa in talks to sell asset management unit to Sanlam.
Absa Group, a South African-based financial services group, is in talks to sell part or all of its asset-management business to Sanlam, Africa's largest insurer, a deal that could create a firm with more than $65bn in assets.
A combination of the Absa business with the Sanlam-owned equivalent would become one of the country's largest money managers, behind the state-owned Public Investment. The negotiating parties see room for further growth as the sector is otherwise populated with a number of small players, Bloomberg reported.
Thyssenkrupp CEO says firm is not looking at steel merger at the moment.
Thyssenkrupp CEO Martina Merz said that the company has no plans at the moment to merge its steel business, Europe's second-largest, with a rival.
Talks with smaller peer Salzgitter are about broader matters in the steel industry, Merz said, but not about a tie-up.
Sporting Lisbon creditors looking to sell the club.
Bloomberg reported that the debtholders in Sporting Lisbon are looking to sell out of the historic Portuguese soccer club.
Lenders Novo Banco and Banco Comercial Portugues are working with Rothschild & Co to seek new buyers for the debt they hold in entities that control the club.
Wejo looking to go public via SPAC merger with Virtuoso.
Wejo, a British automotive-data startup backed by General Motors, is in talks to go public through a merger with Virtuoso Acquisition, a blank-check firm, Bloomberg reported.
Virtuoso is seeking to raise new equity to support a transaction with a combined enterprise value of more than $1bn. Terms could change and, as with all transactions that aren't yet finalized, it's possible the talks could collapse.
Electra Private Equity plans to list TGI Fridays and Hotter Shoes. (FS)
Electra Private Equity, a London Stock Exchange-listed investment trust focused on private equity investments, plans to list TGI Fridays and Hotter Shoes, its two remaining portfolio companies, as the British buyout firm prepares to wind down.
The company said it aims to list restaurant chain TGI Fridays on the main market of the London Stock Exchange in the third quarter of 2021. It then plans to list Hotter Shoes on AIM in the fourth quarter by reclassifying its own listing so that it becomes the listing vehicle for the footwear retailer.
Kartesia raises $1.8bn for latest credit fund. (FS)
European private credit firm Kartesia held a final close at the hardcap of $1.8bn for the fifth vintage of its flagship Credit Opportunities fund, following the close of its predecessor in 2017.
"The strong fundraising for the latest Credit Opportunities fund reflects the strong track record of the previous KCO vintages and increasing demand for European private credit strategies from investors across the globe," Laurent Bouvier, Kartesia Founding Partner.
Castik Capital announces the successful closing of a new single asset fund. (FS)
Castik Capital, the European private equity investment firm, announced the successful completion of a €700m ($854m) single asset fund, EPIC I-b. The fund will acquire a controlling stake in Waterlogic, a global provider of purified drinking water dispensers, from Castik Capital's EPIC I Fund, and it will be managed by Castik Capital, which has had a successful partnership with Waterlogic since 2015.
"This is an exciting investment opportunity for Castik Capital and a significant validation of Waterlogic as the leading provider of drinking water solutions to businesses globally. We are pleased to have the support of our existing limited partners and a blue-chip set of new investors. After six years of successful development at Waterlogic, we are enthusiastic to continue our partnership and support the company's ambitious growth strategy over the next few years," Michael Phillips, Castik Capital Managing Partner.
Castik Capital was advised by Monument Group, Skadden Arps Slate Meagher & Flom, P+P Poellath + Partners, Fried Frank Harris Shriver & Jacobson and Arendt & Medernach.
Polaris looking to raise $164m for new fund. (FS)
Polaris Partners, an investment firm, is set to raise $164m for its new fund, which will support attractive Nordic medium-sized companies with flexible capital for growth, investments, ownership changes and optimisation of capital structure.
"We are pleased to introduce an attractive new investment opportunity in the Polaris universe and have received great backing from our existing investors. We are looking forward to the cooperation with Polaris Flexible Capital's strong team, whom we have known and respected for many years," Jan Johan Kühl, Polaris Managing Partner.
Peel Hunt appoints Head of Private Equity coverage. (People)
Investment bank Peel Hunt appointed Mark Barrow as Head of Private Equity Coverage within its growing Investment Banking division.
With 24 years of corporate finance experience, 19 years of which has been focused on UK mid-market financial sponsors, Mark Barrow joins Peel Hunt from Zeus Capital where he was also Head of Private Equity Coverage.
APAC
Newegg, an online retailer of items including computer hardware and consumer electronics, completed the merger with Lianluo Smart, a provider of medical products and medical components in China, in a $1.2bn deal.
"Becoming a public company is a milestone 20+ years in the making, made possible by the hard work of Newegg's employees, and the support of our many partners, investors and customers. As we enter this new phase as a public company, we're more energized than ever about what the future holds for our company," Anthony Chow, Newegg Global CEO.
Lianluo Smart was advised by Benchmark Company, Bevilacqua and Kaufman & Canoles. Newegg was advised by Gibson Dunn & Crutcher and Hunter Taubman Fischer & Li.
Mindtree, a digital transformation and technology services company, agreed to acquire NxT Digital business of Larsen & Toubro, an Indian multinational technology, engineering, construction, manufacturing and financial services conglomerate. Financial terms were not disclosed.
"There is a huge opportunity ahead as global manufacturers and industrial companies are increasingly adopting Industry 4.0 focused smart solutions, systems, and processes, but are struggling to leverage data and analytics to drive efficiency and competitive advantage," S. N. Subrahmanyan, Larsen & Toubro, CEO and Managing Director.
China Resources considers $2bn supermarket Hong Kong IPO.
Chinese state-owned conglomerate China Resources Holdings is considering a Hong Kong initial public offering for its supermarket business CR Vanguard that could raise as much as $2bn.
The state-owned conglomerate has held initial talks with potential advisers on the share sale plan, which could happen as soon as next year, Bloomberg reported.
United Imaging weighs $1bn Hong Kong IPO.
Bloomberg reported that Shanghai United Imaging Healthcare, a medical imaging and radiotherapy equipment maker, is weighing a Hong Kong initial public offering that could raise at least $1bn.
The company is working with advisers on the prospective listing and is considering going public as soon as later this year.
MedPlus selects banks for its $300m IPO. (FS)
Warburg Pincus-backed MedPlus Health Services, one of India's largest healthcare companies, selected banks for its upcoming initial public offering in Mumbai that could raise about $300m.
The firm is working with Nomura, Edelweiss and Axis Capital on the potential offering. A listing could value the Warburg Pincus-backed startup at about $1bn.
Zhangmen files for a NYSE IPO. (FS)
Zhangmen, a Shenzhen-based online education platform, filed for an initial public offering on the New York Stock Exchange amid increasing scrutiny of the sector at home. The company is backed by SoftBank, Genesis Capital and Warburg Pincus.
"We have been the largest online K-12 one-on-one after-school tutoring service provider in China in terms of gross billings since 2017, with 31.9% market share in 2020," Zhangmen.
Meridian Capital closes its sixth RMB fund at $329m. (FS)
Meridian Capital China, a TMT-focused venture capital firm, completed fundraising for its sixth yuan fund at an aggregate of $329m. The vehicle received capital commitments from state-owned development funds, local government-led industry funds, funds of funds, insurance groups and conglomerates.
The fund has so far invested in 11 firms including AI chip startup Biren, noodle restaurant chain Heft- Noodle, emerging brand Baixiaot, fitness management firm Dyesoo, among others. It claims that some of the startups have seen their valuations soar nearly ten times, post-investment.
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