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AMERICAS
Glatfelter shareholders approve the merger with Berry’s Health and Hygiene division.
Glatfelter Corporation and Berry Global Group announced that Glatfelter’s shareholders have approved all matters relating to the merger of Berry’s Health, Hygiene and Specialties Global Nonwovens and Films business with Glatfelter required to be approved by Glatfelter shareholders.
At the Special Meeting of Glatfelter Shareholders held, Glatfelter shareholders voted to approve the share issuance proposal, the charter amendment proposals, the omnibus plan proposal and the advisory (non-binding) compensation proposal.
TKO Group, a premium sports and entertainment company, agreed to acquire Professional Bull Riders, a premier bull riding organization, On Location, a premium experiential hospitality, offering ticketing, curated guest experiences, live event production and travel management across sports, entertainment, fashion and culture and IMG, an industry-leading global sports marketing agency, from Endeavor, a media company in the fields of sports, events, media and fashion, for $3.25bn.
“Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders,” Ariel Emanuel, TKO Executive Chair and CEO.
TKO Group is advised by Moelis & Co, Morgan Stanley, Skadden Arps Slate Meagher & Flom (led by Brandon Van Dyke and Kyle J. Hatton) and Brunswick Group (led by Seth Zaslow). Endeavor is advised by Latham & Watkins.
Keurig Dr Pepper, a manufacturer and distributor of coffee systems and ready-to-drink beverages including flavored sparkling soft drinks, agreed to acquire GHOST Beverages, an energy drink manufacturer, for $1.24bn.
"GHOST is a differentiated brand with significant growth potential, and we are excited to partner with its founders to take the business to the next level. This acquisition strengthens our position in the attractive energy drink category, accelerating our portfolio evolution toward consumer-preferred, growth-accretive spaces through a disciplined deal structure," Tim Cofer, KDP CEO.
Ghost is advised by Morgan Stanley and Winston & Strawn. Keurig Dr Pepper is advised by Bank of America and Cleary Gottlieb Steen & Hamilton.
Truelink Capital, a middle-market private equity firm, agreed to acquire GES business from Viad, a provider of extraordinary experiences, including attractions, hospitality, exhibition services, for $535m.
“After careful evaluation, and with both businesses performing at very high levels, we believe that now is the right time to separate GES and create a standalone publicly traded Pursuit. Both Pursuit and GES have seen significant demand and achieved remarkable results. After a decade long growth journey, Pursuit is now an industry leader with the assets, resources and capabilities to stand on its own. Through this transformative sale, we intend to establish Pursuit as a pure-play, high-growth, high-return business, with the financial strength and balance sheet to capitalize on its substantial growth prospects in the hospitality and attractions space. Additionally, the improved margin profile and growth trajectory of GES position it well for continued success under a new owner that is committed to maximizing GES’ growth potential," Steve Moster, Viad President and Chief Executive Officer.
Ascend Learning, a provider of educational content and software tools for healthcare students, completed the acquisition of StaffGarden, a cloud-based, data-driven clinical talent development and compliance platform. Financial terms were not disclosed.
“Ascend Learning strives to educate and empower a motivated, confident, and skilled healthcare workforce, a goal we proudly share with StaffGarden. We are excited to welcome StaffGarden to the Ascend Learning team to help solve the severe workforce challenges that exist today and enhance StaffGarden’s talent development programs that over 800 hospitals and thousands of nurses nationwide already trust," Sean Burke, Ascend Learning Chief Commercial Officer.
Ascend Learning was advised by Morgan Lewis & Bockius (led by Laurie Cerveny).
Apcela, an innovator in specialized, high-performance networks, completed the acquisition of SmartSky Networks, a company that is transforming the in-flight connectivity experience with its innovative air-to-ground technology. Financial terms were not disclosed.
"The acquisition of the SmartSky ATG Network is a game-changer. With SmartSky's innovative air-to-ground technology, we can now extend advanced networking and application acceleration capabilities to the skies, ensuring passengers, crew, and operations teams benefit from the same level of performance they experience on the ground. Together, and with our partners, we'll redefine in-flight connectivity and set a new standard for the aviation industry," Mark Casey, Apcela CEO.
Apcela was advised by Morgan Lewis & Bockius (led by Andrew Ray).
Snow Peak Capital, a private equity firm, completed the acquisition of TurbineAero, an independent provider of maintenance, repair and overhaul services focused on aircraft auxiliary power units and other aeroengine components, from The Gores Group, a global investment company. Financial terms were not disclosed.
"We are excited to partner with Snow Peak to invest in the next phase of TurbineAero's growth and continue to deliver world-class services to our global client base. We look forward to maintaining our position as the leader in independent APU MRO services and aeroengines component repair and manufacturing," Peter Gille, TurbineAero Chief Executive Officer.
Socure, a provider of artificial intelligence for digital identity verification, fraud prevention and sanction screening, agreed to acquire Effectiv, a real-time risk decisioning company, for $136m.
"As we attained identity certainty to stop attacks and ensure trust at new account opening, many large partners asked us 'why not apply the same view of identity to login, payments, authentication, account recovery and regulatory reporting? With a world-class platform from Effectiv and analytics that allows for adaptive and progressive risk decisioning, we will be able to help our partners with a single view of identity to drive instant risk and trust decisions anytime, anywhere," Johnny Ayers, Socure Founder and CEO.
BC Partners said near deal to exit stake in Canada’s GardaWorld. (FS)
BC Partners is close to selling a large portion of its controlling stake in GardaWorld back to its management team, in a transaction that values the Canadian security services firm at about CAD13.5bn ($9.8bn), Bloomberg reported.
The London-based private equity firm is divesting a majority of its 51% stake to GardaWorld’s founder and chairman, Stephan Cretier, and some other members of the management team. The deal is backed by a group of private credit firms, led by HPS Investment Partners, who are committing several billions of dollars to the management of GardaWorld to support the buyout.
Eramet takes full control of lithium project from China's Tsingshan.
Eramet has bought out Chinese partner Tsingshan in a lithium project in Argentina that is about to begin production, the French miner said on October 24. Eramet used available liquidity for the $699m purchase of Tsingshan's 49.9% stake, Reuters reported.
The Centenario project, due to start production in the coming weeks, was attractive despite a drop in lithium prices and full ownership would let Eramet decide how to pursue a planned second production facility.
Elliott, Southwest said to near settlement to avert board battle. (FS)
Elliott Investment Management and Southwest Airlines are nearing a settlement that would avoid a proxy fight for control of the carrier’s board, Bloomberg reported.
Elliott and Southwest are discussing a framework that would result in the shareholder activist receiving several board seats but less than a majority. A settlement could be announced as soon as October 24.
Intel-backed blockchain startup R3 weighs options including a sale.
R3, a blockchain company backed by investors including Bank of America and Intel, is exploring strategic options including selling itself, Bloomberg reported.
The New York-based company has held initial discussions with representatives from Ava Labs, the Solana Foundation and Adhara. The talks, which have been happening for at least six months, included options ranging from a joint venture to a minority stake sale or an outright sale.
KKR earnings surge 58% on strength in capital markets unit. (FS)
KKR reported a third-quarter profit that beat Wall Street estimates as the alternative asset manager generated record transaction fees for its capital markets business, Bloomberg reported.
Adjusted net income rose 58% to $1.24bn, or $1.38 a share, KKR said October 24 in a statement.
Goldman, BNP see credit’s blanket rally turn to cherry picking. (FS)
The era of a rising tide lifting all boats in the global credit market may be over. Analysts at Goldman Sachs and BNP Paribas are forecasting the end of a rally that has turned the world’s credit market into a uniform mass of expensive assets, Bloomberg reported.
They recommend taking a more defensive stance and positioning for the gap between safer and riskier debt to widen.
Southwest strikes deal with Elliott, adds six new board members. (FS, People)
Southwest Airlines added six new board directors in a pact with Elliott Investment Management, as the carrier seeks to address the activist’s push for changes and salvage the job of its chief executive officer, Bloomberg reported.
New board members include former Chevron CFO Pierre Breber, former Virgin America CEO David Cush, ex-federal railroad administrator Sarah Feinberg, former Marriott International Group President Dave Grissen, ex-WestJet CEO Gregg Saretsky and NCR Atleos Chief Information, Technology Officer Patricia Watson, who all join November 1.
EMEA
EQT, a private equity firm, Temasek, an investment company, and CPPIB, a global investment management firm, completed the acquisition of Keywords Studios, an Irish video game industry services company, for £2.2bn ($2.8bn).
“This is a significant milestone for Keywords Studios as we start the next phase of our growth journey alongside our new partners. The hard work and dedication of everyone at Keywords Studios, as well as the long-standing support of our clients and shareholders, has enabled our growth over the last decade and I would like to thank them all for their support. We are confident that our expertise, combined with EQT’s resources, will only strengthen our ability to serve our customers and realise our growth potential and mission to be the world’s leading content creation platform for the video gaming industry. I look forward to what the next chapter will bring for our company, customers and employees," Bertrand Bodson, Keywords Studios CEO.
KKR, an investment firm, agreed to acquire a 25% stake in Enilive, a biofuel unit, from Eni, an energy company, for $3.4bn.
“This agreement marks a significant further step in our business strategy related to the energy transition. Enilive, alongside Plenitude, is central to our commitment to providing decarbonized energy solutions and progressively reducing emissions from the end use of our products. Both companies have attracted significant interest from leading international partners and achieved high market valuations, which indicates that our approach to the energy transition is appreciated. We believe that the right path to successfully address the transition entails the creation of low or zero-carbon businesses that respond to a real and existing demand for energy products and that grow independently thanks to the success of their business models and products. With KKR’s support, Enilive is poised to capitalize on its ambitious growth plans and continue delivering real, scalable energy transition solutions,” Claudio Descalzi, Eni CEO.
ComfortDelGro-backed CityFleet Networks, a ground transportation provider operating a fleet of vetted & approved taxi, car and coach services, agreed to acquire Addison Lee, a private hire, courier and black taxi provider, for £269m ($349m).
“Addison Lee is an established leader in serving the differentiated premium segment in London. Beyond expanding our footprint in the UK, this acquisition will enable us to use Addison Lee’s expertise to deepen and scale our premium point-to-point capability globally. It will also strengthen our overall point-to-point proposition, creating strong synergy with our existing businesses," Cheng Siak Kian, ComfortDelGro Managing Director and Group CEO.
Ashtead Technology, a subsea equipment rental and solutions provider, agreed to acquire Seatronics, a global supplier of electronic subsea equipment to the hydrographic, environmental, geophysical, metocean, remotely operated vehicle and diving industries, and J2, an international subsea electronics and ROV tooling rental and services business, from One Equity and Buckthorn-backed Acteon, a company that provides project management and installation services for the operations of below the sea industries, for £63m ($82m).
"Upon closing, this transaction will be the next important step in focusing our service portfolio to achieve Acteon's long-term strategic goals. Seatronics and J2 have been an integral part of our business for many years and the teams have consistently worked very closely together over that time. I'm very pleased to see both teams moving together to such a dynamic new home at Ashtead Technology," Brice Bouffard, Acteon Chief Executive Officer.
Marlin-backed Puzzel, a provider of cloud-based contact centre solutions, agreed to acquire Capturi, a cutting-edge conversational analytics platform specialising in AI-driven insights for customer interactions, from Vækstpartner Kapital, a private equity fund, and Export and Investment Fund of Denmark, a Denmark's investment fund. Financial terms were not disclosed.
"We are thrilled to join forces with a leader in the European contact centre industry. Together, we will unlock the full potential of AI-powered conversational analytics, empowering businesses to deliver even more personalised and efficient customer experiences. This partnership allows us to scale our innovations even further, and deliver value creating solutions to a broader audience, helping them to understand and meet their customers’ needs even better," Tue Martin Berg, Capturi CEO.
JP Morgan Asset Management, an asset manager, completed the acquisition of Umove, a company that provides essential mobility infrastructure services to public transport authorities, from Cube Infrastructure, an independent asset manager pioneering infrastructure investment. Financial terms were not disclosed.
Founded in 2013 and headquartered in Copenhagen, Umove provides essential mobility infrastructure services to Public Transport Authorities in Denmark through a diversified portfolio of long-term and availability-based contracts.
Cube Infrastructure was advised by DC Advisory (led by Neale Marvin).
UniCredit taps Jefferies for hedging, optionality on Commerzbank.
UniCredit is taking out additional protection on its existing holdings in German lender Commerzbank and securing optionality for any future moves, Bloomberg reported.
The Italian bank has been working with Jefferies Financial Group in recent days to hedge more of its Commerzbank position using complex financial instruments that mitigate the risk of share price declines.
Hydro cuts stake in Vianode battery materials company and halts funding. (FS)
Norwegian metals maker Hydro will reduce its stake in graphite materials company Vianode and stop providing funding for the group, it said on October 24, joining other Nordic companies in scaling back their battery making ambitions, Reuters reported.
Vianode, originally owned by metals groups Hydro and Elkem along with private equity group Altor, in 2022 announced plans to build a plant providing anode graphite for two million electric vehicles a year.
Spanish drugmaker Rovi to keep third-party manufacturing business.
Spanish drugmaker Rovi will not sell its third-party contract development and manufacturing business after reviewing several non-binding offers, it said on October 24, Reuters reported.
"Given the strength, momentum and prospects of this business, the best way to maximise value for shareholders at this time is to continue executing on the company's standalone strategic plan," Rovi.
Thames Water creditors offer company alternative financial lifeline.
A group of Thames Water creditors have proposed an alternative liquidity package of up to £3bn ($3.89bn) to give the British utility more time to seek a restructuring of its debt, Reuters reported.
The group, comprising investors with hundreds of millions of pounds worth of so-called B notes, hope their plan will compete with one proposed by a more senior ranking group of A bondholders.
Bankers do anything it takes to grab a slice of rare buyout deal. (FS)
Little more than two years ago, Clayton Dubilier & Rice’s purchase of UK grocer Morrisons became a case study of what can go wrong for bankers who back big private equity buyouts. The firm’s latest effort to snap up a French headache-pill maker shows just how forgiving Wall Street can be, Bloomberg reported.
CD&R this week entered exclusive talks with drugmaker Sanofi to buy half of its consumer arm, Opella. Getting burned on Morrisons back in 2022 hasn’t stopped a horde of banks from fighting to provide funding on the €16bn ($17.3bn) deal, one of this year’s few largescale buyouts. It’s evidence of life coming back to the leveraged-finance market as interest rates start to turn — and of debt bankers’ desperation to start generating proper fees again.
Google’s Anthropic AI investment gets formal UK merger probe.
Google’s partnership with AI firm Anthropic is at risk of being derailed in the UK after the competition watchdog called for further investigation into the pact’s potential impact, Bloomberg reported.
The Competition and Markets Authority said October 24 it’s opening a formal phase one merger probe, in the latest sign that regulators are taking closer order of the wave of investment into startup AI firms.
Whistles-owner Foschini in advanced talks to buy White Stuff.
The owner of fashion chains Whistles and Phase Eight is in advanced talks to buy White Stuff, another prominent high street clothing retailer. The Foschini Group, the South African-based retailer, is close to concluding a deal to acquire White Stuff and invest in its future expansion, Sky News reported.
Foschini, which has a British subsidiary called TFG London, also owns Hobbs and Damsel in a Dress.
Lone Star is said to shelve sale of Spanish property business. (FS)
Lone Star Funds and CaixaBank have walked out of negotiations with at least two suitors to sell their real estate management company Servihabitat and decided to keep the business, Bloomberg reported.
The alternative asset manager and the Spanish bank chose to retain control of Barcelona-based Servihabitat after failed talks with DoValue, Italy’s biggest manager of credit portfolios and real estate assets, and Hipoges Iberia. Hipoges is a Spanish real estate management company controlled by KKR.
Intel wins ight to scrap $1.14bn EU antitrust fine in long-running case.
Intel scored a win October 24 after the European Union’s top court ruled the bloc couldn’t reimpose a penalty of €1.06bn ($1.14bn) on the company in a long-running case over alleged anticompetitive practices in the market for computer chips, WSJ reported.
The European Commission, the EU’s executive arm, levied the record fine in 2009, saying the chip maker had abused its dominance in the market for computer chips known as x86 central processing units by paying manufacturers to halt or delay the launch of specific products with competing chips.
French court approves Atos rescue plan.
French technology group Atos has received approval from the Nanterre Commercial Court for its proposed accelerated restructuring plan, the company said on October 24.
The restructuring will be executed between November 2024 and January 2025 through several capital increases and debt issuance, Reuters reported.
Applied Nutrition shares rise on debut in boost to London IPOs.
Protein-shake maker Applied Nutrition rose on its trading debut on October 24, in a boost to London’s sluggish capital market, Bloomberg reported.
Shares opened at £1.5 ($1.94), more than 7% above the price of its initial public offering, and were changing hands around £1.48 ($1.91) at 8:15 am in London.
LCM eyes €6bn for new private credit fund. (FS)
LCM Partners, an alternative asset manager partially owned by Brookfield Asset Management, is seeking to raise €6bn ($6.5bn) for its new Credit Opportunities 5 fund, which will focus on investing in non-performing loans across Europe.
Since starting its fundraising efforts in June, LCM has already secured €3.3bn ($3.55bn) of indicative interest from investors, according to CEO Paul Burdell. The fund, which aims to deliver an annual internal rate of return of 15%, will also target performing and rescheduled loans to individuals and small- to mid-sized companies.
Mike Ashley demands to be made Boohoo chief. (People)
Sportswear tycoon Mike Ashley has demanded to be installed as chief executive of Boohoo, claiming the fast-fashion retailer is being “mismanaged”, FT reported.
Ashley’s Frasers Group, formerly Sports Direct, built a stake in Boohoo last year and is its largest shareholder with about 27% of the shares. In a letter to Boohoo’s board it said the company “urgently needs to address the management of its business” and that it sought to appoint Ashley as chief executive.
APAC
HMC Capital, an alternative asset manager, agreed to acquire Global Switch, a telecommunications service provider, for $1.3bn.
“Digital infrastructure represents a major funds management growth opportunity for HMC and we believe the establishment of both a listed and unlisted vehicle will enable HMC to take advantage of high quality acquisition opportunities across the value chain to generate attractive risk adjusted returns," David Di Pilla, HMC Managing Director and CEO.
Seven & i makes no mention of $47bn buyout bid in laying out growth plan.
Seven & i held an "investor day" to brief analysts and investors on its plan to hive off underperforming businesses and expand overseas as it battles to win over critics and remain independent.
India approves $119m fund to propel space startups.
The Indian government on October 24 approved an INR10bn ($119m) fund for its burgeoning space sector, with 40 startups expected to benefit as the country strives to win a significant share of the commercial space market by 2033, DealStreetAsia reported.
With funding ranging from INR100m ($1.2m) to INR600m ($7.1m) depending on how mature each startup is, the fund will help generate employment, boost space technology development, fortify supply chains and support research and development.
Horizon Robotics’ shares pare gain in HK debut amid tech selloff.
Shares of Horizon Robotics rose in their trading debut in Hong Kong on October 24, though the initial listing euphoria was marred by a broader selloff in technology shares, Bloomberg reported.
The stock soared almost 38% over its issue price of HKD3.99 ($0.51) in early trading, before cutting the bulk of its gain to finish just 2.8% higher. Market watchers attributed the move to profit-taking by some investors following the strong opening surge as well as to broad weakness in tech stocks in Hong Kong, where the Hang Seng Tech Index slid 2.6%.
GIC, Montana, AlpInvest back Ping An’s $850m private equity fund. (FS)
China’s Ping An Insurance Overseas, the insurer’s wholly-owned offshore investment and asset management platform, has closed its third private equity fund at $850m. The fund commitments were led by London-based AlpInvest Partners and Switzerland’s Montana Capital Partners, DealStreetAsia reported.
Singapore sovereign wealth fund GIC and Ping An also signed on as limited partners. Other investors remained undisclosed. A portfolio of existing stakes in buyout and growth managers in North America and Europe were transferred into the latest fund as a secondary transaction.
Disney Hotstar head Sivanandan quits after merger with Reliance. (People)
The resignation comes days after an internal decision for all live sporting events of the merged entity, including the popular Indian Premier League, to be streamed on Disney’s Hotstar app, and not Reliance’s JioCinema. That was the first major step in integration after the deal to create India’s biggest entertainment company.
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