AMERICAS
Private equity firm Platinum Equity agreed to acquire Cabinetworks Group, the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States, from American Industrial Partners and GIC. Financial terms were not disclosed.
"Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team and a proven track record for growth. The company's leading position in the cabinets space, combined with Platinum Equity's operational toolkit and M&A resources, make Cabinetworks a great fit for our portfolio," Jacob Kotzubei, Platinum Equity Partner.
Cabinetworks Group is advised by Bank of America and Barclays. Platinum Equity is advised by Citigroup and Kirkland & Ellis. American Industrial Partners is advised by Ropes & Gray. Debt financing is provided by Bank of America.
KKR & Co agreed to acquire a 20% stake in Sempra Infrastructure Partners, whose assets include an LNG portfolio consisting of up to 45m tonnes per annum of LNG export capacity in development, construction or operation on the North American Pacific and Gulf Coasts, from Sempra Energy, an energy infrastructure company, for $3.4bn.
"Investing in critical new energy infrastructure creates jobs, delivers reliable energy with fewer emissions and supports North America's economic recovery. That is why we are excited to partner with Sempra Energy. This infrastructure platform provides a strong foundation to expand cleaner energy resources across the continent. Backed by strong, contractually-supported, long-term cash flows, our investment is also consistent with KKR Infrastructure's strategy to seek stable and predictable returns for our investors," Raj Agrawal, KKR Partner and Global Head of Infrastructure.
Sempra Energy is advised by Goldman Sachs and White & Case. KKR is advised by Credit Suisse, Mizuho Securities, Creel Garcia-Cuellar Aiza y Enriquez and Simpson Thacher & Bartlett.
Amneal, a fully-integrated pharmaceutical company focused on the development, manufacture and distribution of generic and specialty drug products, completed the acquisition of Kashiv Specialty Pharmaceuticals, a premier fully integrated specialty biopharmaceutical company, for $108m.
"Our management and scientists are excited to be a part of Amneal Pharmaceuticals. Kashiv Specialty has helped Amneal develop many high value, complex generic products, and possesses tremendous know how and patented novel technologies for developing complex generic and specialty products. Going forward, Amneal will provide valuable strategic, operational, and infrastructure support for the rapid development and commercialization of our specialty portfolio, which consists of differentiated 505(b)2 products that will serve patient needs in neurology and endocrinology and provide significant organic growth for Amneal," Navnit Shah, Kashiv Specialty President and Chief Scientific Officer.
Kashiv was advised by Holland & Knight. Amneal was advised by LEK Consulting, The Weinberg Group, RBC Capital Markets and Shearman & Sterling.
Partners Group, the global private markets investment manager, completed the acquisition of Wedgewood Pharmacy, a US animal-health compounding pharmacy business, from private equity firm New Harbor Capital. Financial terms were not disclosed.
"Wedgewood operates in an attractive, resilient market segment with strong fundamental growth drivers identified by our Thematic Sourcing approach. We have strong conviction in the pet and veterinary sector and the Company's talented management team, as well as in our ability to offer significant value given our established success building franchised specialty healthcare platforms in the US. The Company is an excellent candidate to achieve its next phase of growth supported by Partners Group's transformational investment strategy of operational improvement through active ownership. We look forward to working with Wedgewood to build further value in the business on behalf of all its stakeholders," Chris Russell, Partners Group Managing Director.
Wedgewood Pharmacy was advised by RSM International, Lincoln International and Reed Smith. Partners Group was advised by KPMG and Ropes & Gray.
Stewart Bainum, a Maryland hotel executive, and Hansjorg Wyss, a Swiss billionaire, made a $680m offer for Tribune Publishing, the publisher of the New York Daily News.
The proposal might terminate the deal at a $630m valuation Tribune struck with Alden Global Capital, a private equity firm. The new superior and Alden's bids represent $18.5 and $17.25 per share price, respectively. The Alden is reportedly given four days to make a superior offer or pay a $20m termination fee.
Tribune is advised by Lazard, Davis Polk & Wardwell and Joele Frank. Alden is advised by Akin Gump Strauss Hauer & Feld.
Investment companies Vestar Capital Partners and Leadenhall Capital Partners completed a $160m investment in Friday Health Plans, a Denver-based health insurance holding company.
"This funding will not only allow us to offer health plans to more people, but will also accelerate Friday's technology innovation. Friday was built specifically for individuals seeking simplicity, practical health benefits, and great service – all at an affordable price. We're able to offer that through a combination of efficient operational execution and consumer-centric technology," Sal Gentile, Friday Health CEO.
Friday Health Plans was advised by TripleTree, Edelman and Lambert & Co.
Private equity firm Brynwood Partners completed the acquisition of De Wafelbakkers, a manufacturer of branded, co-manufactured and private label frozen pancakes, waffles and French toast, from Anschutz, an American private holding company. Financial terms were not disclosed.
"We are pleased to announce the acquisition of De Wafelbakkers. Brynwood already has a presence in the breakfast category through its dry mix offerings with its Hungry Jack and Arrowhead Mills brands, owned by Brynwood portfolio company Hometown Food Company. We also have extensive experience in the frozen manufacturing space and believe that we can partner with the management team to accelerate performance in the De Wafelbakkers business. The frozen pancake, waffle and French toast market is a growing space and we are excited to be invested in the category with such a significant manufacturing player," Henk Hartong III, Brynwood Partners Chairman and CEO.
De Wafelbakkers was advised by William Blair & Co. Brynwood Partners was advised by Holland & Knight.
Platinum Equity-backed Deluxe, a global provider of digital and cloud-based solutions, agreed to acquire the Digital Fulfillment Business of Sony, a Japanese multinational conglomerate. Financial terms were not disclosed.
"We are delighted to welcome the Sony NMS team and customers into the Deluxe family. We believe we have created a best in class servicing and tech team. Joining the already robust system Deluxe has to offer, this allows us to strengthen our breadth of technology and workflows, while enabling NMS customers full access to Deluxe's spectrum of integrated supply chain solutions including cinema, localization and distribution," Cyril Drabinsky, Deluxe CEO.
Platinum Equity is advised by Falkowitz PR.
Digital Media Solutions, a digital performance advertising solutions, completed the acquisition of Crisp Results, a provider of performance based marketing solutions, for $55m. Consideration consisted of $40m paid upon closing ($20m in cash and the remainder in equity). The transaction also includes up to $10m in contingent consideration to be earned over the next twelve months, subject to the achievement of certain milestones, and a $5m deferred payment. The contingent and deferred compensation can be paid in cash or stock at the election of DMS.
"Through this acquisition, we believe we are better able to control the full-funnel engagement of consumers in the market for insurance-related products. The Crisp Results assets will expand both advertiser demand and media distribution for DMS," Joe Marinucci, DMS CEO.
Crisp Results was advised by Cannacord Genuity.
Redfin, a real estate brokerage firm, completed the acquisition of RentPath, a digital marketing services provider, for $608m.
"By acquiring RentPath, Redfin will be as committed as we are to the rental market. As part of the Redfin family, our platform will be well-positioned to lead the market in the quality and value of our products, while giving our current and future customers access to many more high-intent renters through Redfin's extensive network," Dhiren Fonseca, RentPath CEO.
NOW, a distributor to energy and industrial markets, completed the acquisition of Flex Flow, an industrial services provider, from GR Energy Services, a completion and production solutions company, for $90m. The deal includes the additional cash contingent consideration if certain profitability thresholds are achieved during the one-year period following the closing of the transaction.
“This acquisition meets the criteria we have set for inorganic investment: it bolsters and further differentiates DistributionNOW in non-commoditized customer solutions, strengthens and broadens Process Solutions in the fluid handling space, enhances our offering in the midstream markets, and provides enhanced gross margins and EBITDA flow-through dynamics. I also believe the Flex Flow business will benefit from our DigitalNOW innovation investments. I am excited to introduce the customer-enticing complementary benefits this new venture provides," David Cherechinsky, NOW President and CEO.
Falfurrias Capital Partners, a Charlotte-based private equity firm, completed the investment in Carolina Foods, a manufacturer of sweet baked goods including the company's own Duchess line of products. Financial terms were not disclosed.
"We have been aware of Carolina Foods for a number of years and have been impressed by the success of the business. We always enjoy partnering with companies in Charlotte, and this deal is especially exciting to us given our recent focus on the packaged foods market. We feel we can add a great deal of value to the company based on our team's knowledge of food manufacturing, marketing, and distribution," Chip Johnson, Falfurrias Partner.
CI Financial, the largest investment management firm by assets under management in Canada, agreed to acquire the remaining stake in Lawrence Park Asset Management, a Toronto-based alternative asset manager. Financial terms were not disclosed.
"The Lawrence Park team has decades of experience in fixed-income markets and alternative investing, and has been a valued partner for CI since 2012. We are thrilled to finally bring that expertise in-house. Alternatives offer an array of benefits and are becoming increasingly embraced by advisors and investors. Building on CI's leadership in this category is a priority for us as we modernize our asset management business," Kurt MacAlpine, CI CEO.
CAPTRUST Financial Advisors, an independent registered investment advisor, completed the acquisition of Pacific Investment Consultants, a provider of wealth management and retirement planning. Financial terms were not disclosed.
"We look for firms who prioritize serving their clients as a fiduciary and PIC was no exception. We are excited for PIC to join our team and believe they will fit flawlessly into our business, with the new team members adding great value to the CAPTRUST organization," Rush Benton, CAPTRUST Senior Director.
Arctos Sports Partners set to invest in Golden State Warriors at a $5.5bn valuation. (FS)
Arctos Sports Partners, a private equity platform dedicated to the professional sports industry and sports franchise owners, is set to acquire a minority stake in the Golden State Warriors in a deal that values the NBA team at roughly $5.5bn.
The private equity firm is buying about 5% of the team. It is believed to be the first private equity investment in an NBA team since the league loosened its rules to allow institutional investors.
Air Transat explores help options after a failed takeover.
Air Transat, a struggling tour operator, is in talks with the federal government on aid but may not reach a deal by an April debt deadline, putting pressure on Quebec to ride to the rescue of another troubled aerospace brand in the province,
Reuters reported.
Air Canada dropped its merger plans with Transat, saying European regulators had signaled it was unlikely to pass antitrust concerns. Canada's largest carrier first bid for Transat in 2019 and discounted its offer last year as the pandemic decimated the travel and tourism sector.
Transat, which last month suspended flights until June due to pandemic guidelines, has said it needs at least C$500m ($397m) in financing this year.
Providence Strategic Growth seeks $4bn fifth fund. (FS)
Providence Strategic Growth Capital Partners is pitching investors on a new $4bn fund, which would make it the investment firm's largest fund should it reach that target,
WSJ reported.
The new fund, called PSG V, would be double the size of the predecessor Providence Strategic Growth IV, which closed with $2bn in September 2019. Providence Strategic Growth is the former growth-equity arm of media and communications-focused firm Providence Equity Partners.
Alkami seeks over $2.1bn valuation in US IPO. (FS)
Alkami Technology, a banking software provider, aims for a valuation of up to $2.1bn in a US IPO. The company said it was looking to raise as much as $150m by selling 6m shares at a price range of $22 to $25 per share.
Backed by investors including General Atlantic and D1 Capital, Alkami supplies cloud-based platforms that banks and credit unions can use to set up digital offerings for their retail and business customers.
Goldman Sachs, JP Morgan, and Barclays are the lead underwriters for the offering.
EMEA
Innoviz Technologies, an Israeli lidar startup, went public through a merger with Collective Growth, a blank check company, in a $1.4bn deal. The transaction was sponsored by Antara Capital, Perception Capital Partners and Magna International.
The successful completion of the business combination will allow Innoviz Technologies to meet the booming demand of the auto industry, which has been waiting for the LiDAR technology to mature. Innoviz is engaged in multiple automotive programs with multiple partners across the globe, and is growing.
Innoviz Technologies was advised by Goldman Sachs, Latham & Watkins and Meitar Law Offices. Collective Growth was advised by Cantor Fitzgerald, Goldfarb Seligman & Co and Graubard Miller. Antara Capital was advised by Akin Gump Strauss Hauer & Feld and Faegre Drinker Biddle & Reath.
Apollo leads buyout group for $10bn Aramco deal. (FS)
Apollo Global Management is leading a group of investors aiming to buy a roughly $10bn stake in Saudi Aramco's oil pipelines,
Bloomberg reported.
The buyout firm's consortium will include the US and Chinese investors and has been shortlisted to make a final offer. Aramco, Saudi Arabia's state energy company, has narrowed the pool of bidders and Canada's Brookfield Asset Management and BlackRock are no longer involved.
While the Apollo consortium is currently seen as a leading contender, another bidder could still emerge as the winner. Aramco, the world's biggest oil company, may choose a winner in the coming weeks, though it could decide not to sell the stake.
APAC
Byju’s, India’s edtech startup, agreed to acquire Aakash Educational Services, a test preparatory services provider, from Blackstone for $1bn. The consideration reportedly involves $600m in cash and the rest in stock.
“As 12 months of the pandemic have shown, there’s a clear need to disrupt education by combining offline with online, which has low single-digit penetration. The future of learning is hybrid, and bringing students to a nearby offline center provides rigor, intensity and human touch,” he said via a Zoom call to announce the acquisition," Byju Raveendran, Byju's Founder and Chief Executive Officer.
SoftBank Vision Fund 2 led the $300m Series E round in Meesho, a social commerce platform in India, at a $2.1bn valuation. Existing investors including Prosus Ventures, Shunwei Capital, Venture Highway and Knollwood Investment also participated in the round.
"With the new round of funding, we are extremely thrilled to have SoftBank onboard. We are focused on expanding our vision — from helping aspiring women entrepreneurs to creating Meesho as a single ecosystem that will enable all small businesses in India to succeed online. In the last one year, we have seen tremendous growth across small businesses and entrepreneurs seeking to move their businesses online. And with our new vision we will enable 100m small businesses to start, succeed and lead their operations online with Meesho as their partner in their journey," Vidit Aatrey, Meesho Founder and CEO.
EverSource Capital-backed Radiance Renewables, a provider of competitive renewable energy solutions, agreed to acquire a non-core solar rooftop portfolio of Azure Power, an independent solar power producer, for $73m.
"This sale, the first-ever asset sale in Azure Power's history, illustrates the company's commitment to capital discipline. The sale of this non-strategic portfolio allows us to enhance returns on invested capital through efficiency gains and cost optimisation whilst recycling capital into higher return, committed projects. Our focus is on creation of shareholder value," Ranjit Gupta, Azure Power CEO.
Bilibili to invest $123m in X.D Network.
Bilibili, a streaming platform, offered to invest $123m in X.D Network, an operator of a game distribution platform. The deal implies an equity acquisition of 22.66m shares, granting a 4.72% stake.
Bilibili is another top-tier gaming investor in Bilibili. Upon the completion of the deal, parties will start to proceed to making a series of "deep collaborations" based on videogames already created by X.D.
Tatas and the Indian government near the Air India deal.
Tata Sons, the front-runner to buy state-run Air India, and the government are close to sealing the terms of the purchase, having managed to narrow their differences on the three key sticking points of pension liabilities, real estate assets, and debt,
DealStreetAsia reported.
Final talks between both parties are underway, and a financial bid will be submitted by the Tata group as early as this month. The government is keen to sell Air India, which has been surviving on a government bailout. The airline has failed to turn in an annual profit since it was merged with state-run Indian Airlines in 2007.
POSCO considers exit options for the Myanmar military JV.
POSCO, a South Korean steelmaker, has begun reviewing how it might end a joint venture with a firm controlled by the military in Myanmar in the wake of the coup there in February,
Reuters reported.
As Myanmar's army rulers continue a deadly crackdown on protest, with hundreds killed, the Korean parent's POSCO C&C arm is looking into either selling its 70% stake in the venture with Myanmar Economic Holdings, or buying out its partner's stake. It was not immediately clear how much the 30% holding might be worth.
MEHL is among Myanmar military entities recently sanctioned by the United States and Britain. POSCO C&C has repeatedly said it has not paid dividends to MEHL since the 2017 Rohingya crisis drew international criticism of Myanmar's military.
Gail India considers investing in startups through its 'Pankh' initiative.
GAIL India will invest to support startups in identified focus areas through its initiative 'Pankh'. The company has opened a fresh round for solicitation of investment proposals from the startups operating in focus areas, including natural gas, petrochemicals, energy, project management, bio-manure marketing, nanomaterials, IoT, data mining, environment, health, and social.
Gail had launched 'Pankh' in July 2017 to invest in promising startups. The company has invested in 24 startups, operating in various areas through four solicitation rounds.
