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AMERICAS
United Airlines has raised concerns with the Biden administration over how the pending $1.9bn merger of Alaska Air Group and Hawaiian Holdings could affect its business relationships with Hawaiian.
Robert Rivkin, United’s chief legal officer, expressed the carrier’s concerns in a conversation with the US Transportation Department’s deputy general counsel on the potential effect on marketing and loyalty agreements it has with Hawaiian, according to a government filing. The department is reviewing the proposed combination after the US Justice Department ended its evaluation without challenging it on antitrust grounds, Bloomberg reported.
Paladin Energy’s takeover of fellow uranium producer Fission Uranium is in doubt, as it has so far fallen short of winning enough support from shareholders to seal the deal.
In July, Paladin agreed to buy the Canadian company for C$1.14bn ($845m), contingent on at least two thirds of Fission shareholders voting in support of the transaction by Aug. 26. Paladin said it had failed to reach that mark, with nearly half of eligible shareholders yet to submit their proxies, Bloomberg reported.
“The majority of the votes received to date are in favor but are not sufficient to approve the transaction. The postponement of the meeting is intended to provide additional time for all security-holders to have the opportunity to make their voices heard," Paladin.
Paladin Energy is advised by Cantor Fitzgerald, SCP Resource Finance and Blake Cassels & Graydon. Paladin Energy is advised by Macquarie Group, Corrs Chambers Westgarth, Fasken and FGS Global.
Qemetica, a manufacturer of soda ash, silicates and other specialty chemicals, agreed to acquire the silica products business of PPG, a paints, coatings, and specialty materials manufacturer, for $310m.
“After conducting an extensive strategic review process, we are pleased to reach an agreement with Qemetica and believe it is well positioned to lead the silicas products business forward. This transaction will allow us to further focus our resources on our technology-differentiated coatings and specialty products businesses to accelerate our organic growth and drive increased shareholder value creation. I want to thank the silicas products business employees for their dedication and commitment throughout the years to deliver the quality products and services that meet our customers’ evolving needs," Tim Knavish, PPG Chairman and CEO.
Qemetica is advised by Bain & Co, BNP Paribas, KPMG and Greenberg Traurig. PPG is advised by Morgan Stanley and Hogan Lovells.
Koch Ag & Energy Solutions, a global provider of solutions for the agriculture, energy and chemical markets, agreed to acquire the Iowa Fertilizer Company, a greenfield nitrogen fertiliser plant from OCI Global, a chemical company, for $3.6bn.
“We are exceptionally proud of OCI and the IFCO operating team’s remarkable achievements in converting a cornfield into a world-class global nitrogen facility and in revitalising a core industry in the United States. KAES today is opportunely positioned both strategically and geographically to leverage and diversify its extensive platform, and to create significant opportunities to drive the facility’s future growth. We have been impressed by the entire KAES team throughout this process and wish them the best of luck in their onward journey," Ahmed El Hoshy, OCI CEO.
KAES was advised by Barclays and Jones Day. OCI Global was advised by Morgan Stanley, Cleary Gottlieb Steen & Hamilton and De Brauw Blackstone Westbroek.
Archrock, an energy infrastructure company, completed the acquisition of Total Operations and Production Services, a contract gas compression services provider, from Apollo, a global alternative asset manager, for $983m.
“We are excited to welcome the TOPS employees to Archrock and work together to expand our exceptional service to new and existing customers and create significant shareholder value. Given our high-quality contracted fleet, technical expertise and an industry-leading balance sheet, we are confident Archrock is poised to capitalise on the attractive opportunities presented by today’s robust market for natural gas and compression, while increasing returns to our shareholders," Brad Childers, Archrock President and CEO.
VivoPower-backed Tembo E-LV, an electric vehicle manufacturer, to go public via a SPAC merger with Cactus Acquisition 1, a blank cheque company, in a $904m deal.
The parties expect a registration statement on Form F-4 to be filed with the US Securities and Exchange Commission in connection with the proposed transaction, which they are working to close, subject to satisfaction of closing conditions, including, without limitation, the completion of the SEC review process and approval of the transaction by CCTS shareholders, prior to the end of calendar year 2024. In connection with the business combination, the parties will submit to Nasdaq an application to list the securities of a newly formed company (“Tembo Group”) established in connection with the transaction on Nasdaq.
Cactus Acquisition 1 is advised by De Metz Advocaten and Ellenoff Grossman & Schole (led by Meredith Laitner and David Landau). VivoPower is advised by Chardan, NautaDutilh and White & Case.
DERM-JES completed the acquisition of DermTech, a precision dermatology company offering non-invasive skin genomics solutions. Financial terms were not disclosed.
Following completion of the court-approved auction process, DermTech selected DERM-JES as the winning bidder.
DermTech was advised by AlixPartners, TD Cowen, Mintz Levin and Wilson Sonsini Goodrich & Rosati. DERM-JES was advised by Polsinelli PC.
IFS, a technology innovator in cloud and Industrial AI software, completed the acquisition of Copperleaf, a company that provides AI-powered asset investment planning and management software, for $741m.
"The acquisition is a watershed moment in the evolution of decision-making for the industries IFS serves. By combining Copperleaf's decision analytics with IFS's robust enterprise solutions, businesses will be able to make more informed, real-time decisions, giving them a powerful competitive advantage in navigating complex and volatile economic environments with confidence and resilience," Mark Moffat, IFS CEO.
Mutual Federal Bank, a federally-chartered savings association, agreed to merge with Pulaski Savings Bank, a mutual savings bank. Financial terms were not disclosed.
"This transaction brings together two customer-centric and highly-respected institutions. Both Mutual Federal and Pulaski have a similar culture and take pride in our long traditions of outstanding customer service and community involvement," Stephen M. Oksas, Mutual Federal President.
Pulaski is advised by Godfrey & Kahn. Mutual Federal is advised by RP Financial and Vedder Price.
Solaris Oilfield Infrastructure, a specialized equipment for oil and natural gas operators manufacturer, announced that all of the proposals related to its previously announced $200m acquisition of Mobile Energy Rentals, a provider of distributed power solutions, were approved by the requisite holders of Solaris common stock at the company's special meeting of stockholders.
"We are pleased with the shareholder support for our pending acquisition of MER. We look forward to closing this transaction in the next couple of weeks, at which point we will begin our combined, complementary offering to our customers as 'Solaris Energy Infrastructure," Bill Zartler, Solaris Chairman and CEO.
Mobile Energy Rentals is advised by Skadden Arps Slate Meagher & Flom (led by Eric Otness). Solaris is advised by Santander and Vinson & Elkins (led by Mike Marek).
Edgewater Midstream, a midstream company focused on the development of US crude oil and refined products midstream assets, agreed to acquire the Sinco pipeline system and Colex terminal from Shell, an oil and gas company. Financial terms were not disclosed.
"This sale follows our guidance at Shell's Capital Markets Day to continue to simplify our portfolio as we seek to deliver more value, with less emissions. After the completion of the sale of Shell's equity in Deer Park Refinery, these assets are non-integrated and no longer fit within Shell's Powering Progress strategy. This transaction enables re-deployment of capital to other projects that will do so," Andrew Smith, Shell Executive Vice President Trading & Supply.
Outside Interactive, a creator of outdoor content, services, events, and experiences, completed the acquisition of MapMyFitness, a fitness tracking application, from Under Armour, a sportswear company. Financial terms were not disclosed.
"As the original co-founder of MapMyFitness, I am excited about bringing the MapMy community into the Outside network to enhance the value of our platform for our users and paid members. I believe that by continually adding high-value services to the Outside platform, consumers win, and ultimately, we achieve our mission of getting more people outside daily," Robin Thurston, Outside Founder and CEO.
PCF Insurance Services, an insurance brokerage, completed the acquisition of the insurance business from Kentucky Health Solutions, a company specializes in health and life insurance products. Financial terms were not disclosed.
"Our acquisition of the Kentucky Health Solutions team speaks to our strategic focus on expanding our footprint in key markets with insurance businesses that deepen our bench strength across our industry verticals. We want to ensure that every business we bring on has a long runway for growth ahead of them. By intentionally focusing on these types of transactions, we're setting the stage for our long-term profitability," Felix Morgan, PCF Insurance CEO.
Carlyle nears a $13bn sale of Sedgwick stake to Altas. (FS)
The Carlyle Group is in advanced talks to sell a minority stake in claims management company Sedgwick to Altas Partners.
The potential deal values Sedgwick at about $13bn. A deal could be announced within weeks, assuming talks don’t fall apart, Bloomberg reported.
YPF eyes sale of Lithium unit as focus narrows on shale ramp-up.
Argentine state-run oil company YPF is considering a sale of its lithium unit as part of a sweeping divestment strategy to streamline investments into the heralded Vaca Muerta shale patch.
Executives are mulling an exit from YPF Litio. The company has been reviewing business holdings that fall outside YPF’s traditional sphere of drilling for oil and gas and refining crude.
A sale of the unit would come just three years after it was created as YPF — and oil companies the world over — have looked to reposition themselves in the face of the energy transition, Bloomberg reported.
BC Partners in advanced talks to acquire a stake in GSE Worldwide. (FS)
Private equity firm BC Partners’ credit arm is in advanced talks to acquire a stake in the sports agency GSE Worldwide and agreed to finance the business’s expansion, in the latest push by a private investment firm into the talent agency industry.
BC Partners Credit has provided capital to the golf, tennis and football sports talent agency in the form of new preferred equity and debt.
The deal comes days after the US’s National Football League opened its doors to private equity investment. Interest in sports investment by alternative asset managers has also been growing, FT reported .
EMEA
A.P. Moller, a business conglomerate, agreed to acquire Concentric, a manufacturer of hydraulic products and diesel engine pumps, for $838m.
“Concentric is a global leader in pump, fan, and thermal management solutions for the commercial vehicle market, and is uniquely positioned to actively support its customers through the energy transition. Furthermore, Concentric’s innovative solutions are well positioned for expansion into new and adjacent markets such as energy storage and datacentres. To pursue these growth opportunities, the Company faces significant investments in the organisation and product development, initiatives that will require both capital and patience from all stakeholders," Jan Thorsgaard Nielsen, A.P. Moller CIO.
Concentric is advised by Ernst & Young, SEB Corporate Finance and Advokatfirman Lindahl. A.P. Moller is advised by Citigroup, Danske Bank, Sverige Filial, White & Case and Fogel & Partners.
Suzano, a Brazilian pulp producer, completed the acquisition of a 15% stake in Lenzing, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, from B&C Group, an investment company, for €230m ($255m).
"Lenzing's unparalleled track record of innovation and best-in-class technology make it a global leader in developing sustainable solutions from wood. With this transaction, we intend to build our expertise in the textile market and identify how we can help strengthen the company's competitive position," Beto Abreu, Suzano CEO.
ČEZ Group, an energy conglomerate, completed the acquisition of a 55.21% stake in GasNet, a natural gas distributor, from Macquarie, a financial services group, for €847m ($937m).
“We are very pleased that we have managed to obtain approval from the European Commission as well as the Ministry of Industry and Trade of the Czech Republic and to complete the acquisition of GasNet. This will allow us to advance further in the transformation of ČEZ as well as in the modernisation of the country’s energy sector. Natural gas is an important fuel that will help the region transition from coal to emissions-free sources. Gas will play a key role in the heat generation sector, where we want to switch from coal to gas and biomass by 2030. Subsequently, we are planning to convert our gas infrastructure to the distribution of green hydrogen,” Daniel Beneš, CEZ Chairman and CEO.
Macquarie was advised by Morgan Stanley.
Hungarian manufacturer Ganz-Mavag has withdrawn its acquisition offer for Spanish rolling stock company Talgo after the government of Spain blocked the deal over national security concerns.
Ganz-Mavag, which comprises Hungary's state fund Corvinus and other local investors, did not rule out attempting to take over Talgo again in the future and said it planned to appeal the government's action.
Corvinus is advised by CMS.
Softline Projects, an electrical machinery and equipment, agreed to acquire IRE-Polus, a manufacturer of medical lasers, from IPG Photonics, a manufacturer of fiber lasers, for $51m.
“Our team executed flawlessly to transition our manufacturing operations after the war’s outbreak without any impact to our customers. Our ability to respond to adverse events out of our control highlights the resilience of the company as we were able to lean on our global manufacturing capabilities to increase production in Germany, the United States and Italy and start production in Poland. Today, with the sale of our Russian operations now behind us, we are focusing on optimising our operations to drive improved productivity," Mark Gitin, IPG Photonics CEO.
IPG Photonics is advised by Rothschild & Co.
BYD Automotive, an EV maker, agreed to acquire Hedin Electric Mobility, the appointed Dealer+ of BYD vehicles and spare parts in the German market, from Hedin Mobility, a mobility provider. Financial terms were not disclosed.
"BYD is committed to fostering strong long-term partnerships. The existing partnerships with the German retailers will continue. Together with its retail partners, BYD will further extend outstanding customer services and warranty support in Germany," Stella Li, BYD Executive Vice President.
German union prefers CVC as Schenker buyer to save jobs. (FS)
Verdi, Germany’s most powerful labor union, is making the unusual move of backing a private equity firm’s bid for Deutsche Bahn’s planned €14bn ($15.5bn) sale of its Schenker logistics arm.
After meeting with the two final suitors, Verdi estimated that 5.3k more jobs would be at risk if Deutsche Bahn were to sell the unit to Danish logistics company DSV instead of a consortium around CVC Capital. The union added that the supervisory board is strongly advised to work to preserve jobs. The union’s preference for CVC is an example of private equity’s reputational shift in Germany, where they were long derided as locusts for buying targets, cutting costs and then moving on, Bloomberg reported.
“If CVC were to take over, Schenker would continue to operate as one company. If DSV were to take over, DSV said the employees would be split between three companies,” Verdi.
Brookfield courts ADQ and GIC to join Grifols' $8.9bn takeover bid. (FS)
Brookfield Asset Management is in talks with several investment funds to join its bid to acquire Spanish blood-plasma company Grifols.
Abu Dhabi sovereign wealth fund ADQ and Singaporean counterpart GIC are among the investors that Brookfield has held discussions with over a potential partnership.
Brookfield and the Grifols family, who are working together to potentially take the company private, have yet to present a formal offer to the Grifols board and are waiting to complete their due diligence. Any proposal could give the company an equity value of around €8bn ($8.9bn), Bloomberg reported.
Virgin Media O2 said to seek investor for £5bn network arm.
Virgin Media O2, the owner of UK’s second-largest fixed network, is seeking outside investors to help fund its £5bn ($6.6bn) newly created network company to challenge incumbent BT Group.
VMO2 is working with advisers to raise at least £1bn ($1.3bn) by selling a minority stake in the new venture, whose valuation could be more than £5bn ($6.6bn). The potential stake sale, which could range from 20% to 40%, could kick off as soon as October. The company, jointly owned by Liberty Global and Telefónica, is targeting infrastructure, private equity, pension and sovereign wealth funds, Bloomberg reported.
Cellnex’s plans to sell Polish unit stake are on hold.
Cellnex Telecom has halted plans to sell a stake in its Polish business, which could have valued the unit at as much as €4bn ($4.4bn).
The potential stake sale is on ice after an attempt to broker an agreement between two telecom clients to build out a network in Poland stalled. No final decisions have been made and the negotiations may still restart.
Cellnex, which has telecom masts across Europe, had made any divestment contingent on PLAY Communications agreeing to build a shared active network with rival Polkomtel using Cellnex’s infrastructure. The stake sale would’ve given Cellnex the funds to build up the network further. After more than a year of negotiations, talks with the two carriers hadn’t progressed, Bloomberg reported.
SIX Group explores options for financial information unit.
Swiss stock market operator SIX Group is weighing options for its financial information unit, including potentially merging it with another player.
The group wants to keep a majority stake in the business and may create a new legal entity for it. Carving out the business could facilitate merging the unit with another company or selling a stake to a financial investor such as a private equity firm, Reuters reported.
Spar Group weighs offer for West Pack Lifestyle.
South African retailer Spar Group is considering an offer to acquire cash-strapped West Pack Lifestyle.
The nation’s second-largest grocer by revenue previously said it plans to expand beyond the food segment and win more market share in South Africa. West Pack, which sells homeware, has gone into business rescue — a local form of bankruptcy protection. The group also sits on a large debt pile that a purchaser would have to take on, Bloomberg reported.
Carlyle’s Europe Head of Consumer Massimiliano Caraffa to depart. (FS, People)
Carlyle Group partner Massimiliano Caraffa is in the process of leaving the firm after spending the past two decades at the US-listed alternative asset manager.
Milan-based Caraffa is head of consumer, media and retail in Europe, and has been involved in the firm’s bets on companies including sneaker brand Golden Goose, Italian luxury brand Moncler and streetwear brand Supreme, Bloomberg reported.
Platinum Equity, a private equity firm, completed the acquisition of a majority stake in OSD business of Inventia Healthcare, a pharmaceutical company, from a consortium of investors including India Life Sciences Fund, NYLIM Jacob Ballas India Fund and Shah family. Financial terms were not disclosed.
"We believe Inventia is a strong platform for growth in a fragmented market, and our goal is to create a larger, more diversified B2B business focused on the attractive but underserved emerging markets. We are excited to build upon the strong foundation set by the Shah family by bringing in our operational and financial resources to further institutionalise the company and set it up for success on a significantly greater scale. Inventia's current product pipeline can drive strong organic growth over the foreseeable future, which we will look to enhance through acquisitions, with an emphasis on broadening the company's product portfolio and capabilities," Amit Sobti, Platinum Equity Managing Director.
Platinum Equity was advised by Barclays, Latham & Watkins, Trilegal and Kirkland & Ellis. Inventia Healthcare was advised by Rothschild & Co, Stifel and Quillon Partners.
Indian carrier Vistara said its planes would be operated by Air India from November as a merger between Vistara and the country's flag carrier gained momentum following a key Indian government approval.
Singapore Airlines, which owns 49% of Vistara in a joint venture with India's Tata Group said it had received approval for foreign direct investment into an expanded Air India, clearing a significant hurdle in the merger process, Reuters reported.
Vistara is advised by Shardul Amarchand Mangaldas & Co. Tata Group is advised by Bank of America and AZB & Partners. Singapore Airlines is advised by JP Morgan.
Adani Ports and Special Economic Zone, a port operator and logistics company, agreed to acquire 80% stake in Astro Offshore, an OSV operator, for $185m.
“Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers. This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint and deliver more end-to-end solutions to our customers,” Mark Humphreys, Astro Offshore Managing Director.
Alimentation Couche-Tard is seeking backing from some of Canada’s largest pension funds to support its proposed acquisition of 7-Eleven owner Seven & i Holdings.
The retailer is reaching out to funds including Caisse de Depot et Placement du Quebec, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to gauge their interest in providing equity. It’s seeking to raise several billion dollars from such co-investors. Couche-Tard is considering a range of funding options, from debt financing to issuing stock, Bloomberg reported.
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