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AMERICAS
Semtech, a semiconductor products to original equipment manufacturer and distributor, completed the acquisition of Sierra Wireless, a wireless communication equipment designer and provider, for $1.2bn.
“Sierra Wireless brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-Cloud IoT solutions portfolio. Combined with Semtech’s LoRa-enabled end nodes, we believe we are very well positioned to deliver a highly differentiated, end-to-end platform to enable the transformation to a smarter, more sustainable planet. Our combined company will have strong expertise in high bandwidth cellular connectivity, ultra-low power LoRa connectivity, IoT software and services, and extensive knowledge of IoT hardware and software channels and vertical markets. We believe that Semtech is uniquely positioned to deliver a strong product portfolio and service model to customers across high growth IoT segments,” Mohan Maheswaran, Semtech President and CEO.
Sierra was advised by BMO Capital Markets, Qatalyst Partners (led by Adam Howell and Jason DiLullo), Blake Cassels & Graydon, Skadden Arps Slate Meagher & Flom and Joele Frank (led by Joseph Sala). Semtech was advised by JP Morgan, O'Melveny & Myers (led by Andor D. Terner and Eric Zabinski), Stikeman Elliott. Financial advisors were advised by Sullivan & Cromwell.
Lessen completed the acquisition of SMS Assist.
Lessen, a real estate software company, completed the acquisition of SMS Assist, a facilities maintenance technology company. Financial terms were not disclosed.
“Lessen recognized early on the opportunity to provide an enterprise-level solution that solved the real estate industry’s long-tenured property services pain points. This deal demonstrates the increasing demand within the underpenetrated, $330bn addressable North American property services market for a unified, extensible delivery platform that provides transparency, efficiency and data-driven insights for the entire real estate ecosystem including investors, owners, managers and service providers," Jay McKee, Lessen Founder and CEO.
SMS Assist was advised by JP Morgan, Katten Muchin Rosenman, Skadden Arps Slate Meagher & Flom (led by Howard Ellin and Christopher Barlow). Lessen is advised by Evercore, Fenwick & West and Bospar.
J.F. Lehman-backed NorthStar Group, an investment company, completed the acquisition of Trans Ash, a provider of coal ash services to utilities customers. Financial terms were not disclsoed.
“With the acquisition of Trans Ash, NorthStar has assembled market leading capabilities across our three primary service offerings: Commercial and Industrial Deconstruction, Nuclear Decommissioning and Waste Management, and Coal Ash Remediation and Reuse. We are excited to capitalize on the opportunities that lie ahead – including over $3.5bn of backlog – with our over 3,000 highly skilled and dedicated employees, fleet of modern equipment, industry-leading safety performance, and unique breadth and depth of capabilities,”
Scott State, NorthStar CEO.
Trans Ash was advised by Dinan & Company and Keating Muething & Klekamp. Northstar was advised by Macquarie Group and Jones Day. Debt financing was provided by Macquarie Group.
Alpine Investors-backed Alpine Software Group, an IT company, agreed to acquire ThinkLP, a software developer. Financial terms were not disclosed.
“I founded ThinkLP with a passion to use business for good by helping companies operate with high ethical standards through empowering loss prevention teams with world-class software. It has been the honor of a lifetime to build one of Canada’s fastest growing companies by serving our clients globally, creating the world's most innovative loss prevention software platform. As I thought about the next stage for myself and the business, I knew I needed a partner who understood how crucial ThinkLP is to our clients’ operational success and would continue building upon our vision for the entire loss prevention industry. I’m thrilled to have found that partner in ASG,” Doug Treleaven, ThinkLP Founder.
ThinkLP is advised by BDO and Cassels Brock & Blackwell. ASG is advised by Fasken and Willkie Farr & Gallagher.
World View, a private American near space exploration and technology company, agreed to go public via a SPAC merger with Leo Holdings II, a special purpose acquisition company, in a $350m deal.
“World View is already a leader in the burgeoning stratospheric economy, with notable mission successes across several key strategic partners and critical patent-protected technologies. Combining World View’s proven business model and mission-driven vision for the future with the institutional knowledge of the Leo team, we are excited and confident in World View’s ability to scale its global reach across its commercial and government offerings,” Lyndon Lea, Leo President and CEO.
World View is advised by Guggenheim Partners and Cooley. Leo is advised by Kirkland & Ellis.
Neste, an oil refining and marketing company, completed the acquisition of the used cooking oil collection and aggregation business of Crimson Renewable Energy, an industrial organic chemicals manufacturer. Financial terms were not disclosed.
"The completion of this transaction is another important step for Neste in growing renewable and circular solutions, following our strategy. We are strengthening our presence and operations in the United States and on the US West Coast which is an important market for servicing our customers and the location for our joint venture for renewable diesel production in Martinez, California. I am happy to welcome the team to join Neste's operations in the US,” Matti Lehmus, Neste President and CEO.
Procter & Gamble, a FMCG company, agreed to acquire Mielle Organics, a hair products manufacturer, from Berkshire Partners, a private equity firm. Financial terms were not disclosed.
“From the moment we stepped into P&G, we saw a diverse team of leaders who share our values and vision for innovation, education and community empowerment, including several Black leaders who play a key role in the hair care and beauty businesses. This partnership gives Mielle an opportunity to serve more textured hair consumers with the great products and formulas that our community loves," Monique Rodriguez, Mielle Organics Co-Founder and CEO.
Mielle Organics is advised by Raymond James (led by Vennette Ho) and William Blair & Co.
Private equity firms Energy and Minerals Group and Vision Blue Resources completed a $150m investment in Denham Capital-backed Serra Verde, a mining company.
“This is a compelling opportunity to both enable the sustainable energy transition and provide a new source of large scale production of both heavy and light rare earth elements outside Asia, which are utilized today in the manufacturing of 90% of all permanent magnets. Robust growth in demand for these rare earths, driven by renewable energy applications and a desire for alternative sources of supply, inform our view of a very positive outlook for the Serra Verde product," Mick Davis, VBR CEO.
Serra Verde was advised by Morgan Stanley.
CVS Health Ventures, a venture capital firm, led a $100m Series D round in Carbon Health, a healthcare services provider.
“While healthcare has evolved tremendously over the past few years, there are still many ways in which care delivery and quality have not. We're focusing on everyday touchpoints with an integrated care team to help patients achieve better health outcomes – because healthcare is not just what happens during a visit but also what happens in between. Now, with the support of CVS Health, we can further accelerate our goal of designing healthcare as it should be – simple, flexible, and personal," Eren Bali, Carbon Health CEO and Co-Founder.
Carbon Health was advised by JP Morgan.
The Riverside Company, a private equity firm, completed an investment in Oval Room Group, a commercial real estate visual media solutions company. Financial terms were not disclosed.
“Oval Room’s services are a natural extension of the Buildout marketing software that would allow brokers to purchase professional digital content with a quick turnaround while creating marketing materials for a property. This investment brings together Buildout's CRE technology and Oval Group's unmatched media services for a program that stands out," Loren Schlachet, Riverside Managing Partner.
Enfinity Global, a renewable energy firm, completed the acquisition of 400MW of operating solar projects in the United States from Capital Dynamics, an independent global asset management firm. Financial terms were not disclosed.
"Our long-term ownership business model allows us to partner with relevant investors, stakeholders and customers, aligning capabilities that create a zero-carbon future. Our ability to deploy operational expertise across the entire renewables value chain, coupled with our international presence, translates into value creation for our investors and customers," Carlos Domenech, Enfinity Global CEO.
Capital Dynamics was advised by Barclays.
Ashcroft Capital, a private equity firm completed the acquisition of the apartments at Midtown 501. Financial terms were not disclosed.
"The current capital markets present challenges to our acquisition team. As such, we remain highly selective. For this reason, we are focusing on excellent submarkets such as Chapel Hill, which is a high-growth market where we want to invest. We look forward to expanding our portfolio there. Over time, we plan to build a sizable footprint in the Raleigh-Durham-Chapel Hill area. And though we're not in a rush, we saw Midtown 501 as too good of an opportunity to look away from," Frank Roessler, Ashcroft Founder and CEO.
Aschcroft was advised by LinnellTaylor Marketing.
Mendocino, a forest products company, completed the acquisition of Utah Wood Preserving, a company that operates in the building materials industry. Financial terms were not disclosed.
"We welcome UWP employees as colleagues and look forward to working together on initiatives creating opportunities for everyone," Bob Mertz, Mendocino CEO.
Warner Bros Discovery explores sale of music library.
Warner Bros Discovery is exploring a sale of its music library that could be valued at more than $1bn.
The company is looking for buyers for the music copyrights that it owns, according to the report, which added that the process was in its early stages, Reuters reported.
Trian Fund says it will not pursue takeover bid for Wendy's. (FS)
Trian Fund Management, run by activist investor Nelson Peltz, said it will not pursue a takeover of Wendy's, months after the company's largest shareholder said it was considering a potential bid for the burger chain.
Trian said in May last year it was exploring taking over Wendy's, either on its own or with others, almost two decades after Peltz invested in the company. Wendy's separately announced a new $500m share buyback plan and doubled its quarterly dividend to $0.25 per share, Reuters reported.
WWE retains restructuring specialist Kirkland & Ellis as adviser for strategic review.
World Wrestling Entertainment said it has retained bankruptcy and restructuring powerhouse Kirkland & Ellis as its legal adviser related to its review of strategic alternatives for the company.
It has also retained The Raine Group as financial advisor and August as strategic communications adviser.
The announcement comes days after the company elected Vince McMahon as the executive chairman of the media and entertainment company's board and said co-chief executive officer and chairwoman Stephanie McMahon was stepping down, Reuters reported.
PGIM Real Estate raises $2.07bn for final close of PGIM Real Estate Capital VII. (FS)
The seventh fund in PGIM Real Estate’s European flagship high yield debt fund series, PGIM Real Estate Capital VII (PRECap VII), has closed on $2.07bn, the largest European real estate debt fund closed in 2021.
PGIM Real Estate’s European debt platform provides alternative financing, including senior debt, whole loans and mezzanine with co-invest equity. The platform has completed over €10bn ($11bn) across over 180 senior and high yield debt investments in UK and Continental Europe, through its PRECap series of funds, as well as its senior debt strategy, which also recently closed a global mandate of €1bn ($1bn) from a European investor.
JP Morgan names Anu Aiyengar as the sole head of M&A. (People)
JP Morgan’s Anu Aiyengar is becoming sole head of global mergers and acquisitions, making her the only woman to lead that franchise at a major Wall Street bank.
Dirk Albersmeier, who was previously M&A co-head alongside Aiyengar, is stepping aside to focus on client work. Albersmeier will now focus on providing clients with M&A advice and mentoring the next generation of M&A leaders.
Aiyengar takes the sole reins of JPMorgan’s muscular dealmaking franchise as the M&A market grapples with rising interest rates, a spotty leveraged loan market and a wobbly stock market depressing takeover activity. Aiyengar has been with the firm for more than 20 years and was named co-head of global M&A in 2020, Bloomberg reported.
EMEA
KKR, a private equity firm, completed the acquisition of IVI-RMA, a biotechnology company, for $3bn.
The transaction has been delayed for almost a year, however, according to the report. On the one hand, IVI-RMA and KKR have been negotiating the final details and on the other hand, it was not until 21 December that the Spanish regulator CNMC authorised the transaction with conditions.
KKR was advised by Jefferies. IVI-RMA was advised by Morgan Stanley.
Johnson Controls, an American Irish-domiciled multinational conglomerate, completed the acqusiition of Hybrid Energy, a growing provider of high-temperature energy management solutions. Financial terms were not disclosed.
"It's an exciting time in our industry as we come together to bring the next generation of safe, sustainable energy management technologies to market. Hybrid Energy is well positioned in its ability to deliver extremely high-temperature process heating while maintaining energy efficiency – and with the reach and resources of Johnson Controls, we will be able to solve the challenges of more customers. As we help reduce the energy consumption in buildings, our customers will benefit from a single, trusted source for heating solutions," Claude Allain, Johnson Controls President.
Supermarket Income REIT, a London-based real estate investment trust, agreed to acquire an additional 25% stake in reversion portfolio of J Sainsbury, a United Kingdom-based merchandise retailer company, for $211m.
Beneficial ownership of the five remaining stores is split between both companies using the same ratio as the beneficial interests.
CGN said to pause $2bn sale of European renewable assets. (FS)
China General Nuclear Power’s planned $2bn sale of its European renewable energy arm is stalling after offers fell short of its price expectations.
A consortium of Brookfield Asset Management and Macquarie Group and another led by Thailand’s PTT were among those that made binding offers for CGN Europe Energy late last year. CGN decided to pause the process after these bids came in below the price it was seeking.
While the potential disposal remains on hold, CGN could decide to revive it later this year. Chinese state-owned companies have been stepping up reviews of overseas portfolios as they look to optimize returns on their investments, Bloomberg reported.
Ionos, Euro Group aims to reopen Europe’s moribund IPO market. (FS)
United Internet’s web-hosting unit Ionos Group and auto parts maker Euro Group are expected to be the first major companies to attempt to open the European market to IPOs after months of dormancy.
Ionos is considering starting the sale of its Frankfurt shares as early as next week, while Euro Group intends to launch its Milan IPO in February. The companies have held early meetings with fund managers to gauge demand.
The Warburg Pincus-backed Ionos could have a potential market value of up to $5.3bn based on early feedback. Euro Group, which makes stators and rotors for electric motors, is considering raising around $500m from its share sale and could target a valuation of around $1.6n, Bloomberg reported.
Petromin revives $1bn IPO plan.
Petromin, a Saudi Arabian automotive services firm, plans to float shares in an initial public offering in the Kingdom.
The company is working with Saudi National Bank and Moelis & Co. on the potential offering, expecting the firm to raise as much as $1bn.
Details of the deal may change, more banks may also be added to the syndicate, Bloomberg reported.
M&G launches M&G European Living Property Fund. (FS)
M&G has launched a sustainable housing fund targeting students, the private rented sector and retirement accommodation across Europe.
The M&G European Living Property Fund is designed to provide institutional investors with index-linked rental income, house price exposure and geographical diversification. In addition, the firm is also aiming to reduce sector imbalances and support the additional supply of high-quality and sustainable housing.
The fund launches with a $433m investment from Dutch asset manager MN and $193m from the $144bn Prudential With Profits Fund. Marcus Eilers, who was appointed head of European residential at M&G in October, will oversee the management of the fund. Prior to joining the firm, Eilers served as head of residential asset management at Roundhill Capital.
IGM Financial-backed Mackenzie Financial, an investment management company, completed the acquisition of a 13.9% stake in China Asset Management, an asset manager in China, for $900m from Power Corporation of Canada, a financial services company.
"The Chinese asset management industry is one of the largest and fastest growing markets in the world. We believe that an expanded investment in ChinaAMC – one of the top three asset managers in the country – is strategically important to position IGM Financial for further growth," James O'Sullivan, IGM Financial President and CEO.
Power Corporation of Canada was advised by BMO Capital Markets, Morgan Stanley, Baker McKenzie and Blake Cassels & Graydon. IGM Financial was advised by RBC Capital Markets and Fasken (led by Grant McGlaughlin).
GIC and PIF in advanced talks to invest $966m in Kakao. (FS)
Sovereign wealth funds GIC and Saudi Arabia's Public Investment Fund are in advanced talks to invest $966m in tech conglomerate Kakao, making it the biggest overseas financing in a South Korean content company.
The move signals investors' bullish outlook for growth potential of Korean content and its recession-proof tendencies when weak economic outlook has dried up liquidity in many other sectors, Reuters reported.
EPF said to sell more than $115m in education assets. (FS)
Malaysia’s largest state pension fund, the Employees Provident Fund (EPF), is looking to sell local education assets worth more than $115m. The sale is expected to attract suitors, including regional private equity firms and education providers
EPF, which is also one of the world’s biggest pension funds with total assets of 1.01tr ringgit, is looking to sell assets held by its Malaysian education real estate investment trust, Alpha REIT. A sale could come as early as the first quarter of this year, DealStreetAsia reported
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