AMERICAS
Canadian miner Continental Gold said its shareholders have voted in favor of a $1bn takeover offer from China’s Zijin Mining Group.
State-backed Zijin aims to secure Continental Gold’s flagship Buritica gold project in Colombia. Buritica’s high-grade ore and hearty output estimates make it a coveted project for miners who are waiting to lay their hands on the unexplored mineral riches of Colombia.
Continental Gold is advised by Cormark Securities, Maxit Capital, Cassels Brock & Blackwell and Fasken Martineau DuMoulin. Zijin is advised by Credit Suisse and McCarthy Tetrault.
Stanley Black & Decker, an industrial organization, agreed to acquire Consolidated Aerospace Manufacturing, a group of manufacturers of fittings, hardware, fasteners and engineered products solutions for the aerospace sector, for $1.5bn.
"Our team is excited at the prospect of welcoming CAM to the Stanley Black & Decker family to further diversify our Industrial business segment. With its well-recognized brands, proven business model and experienced management team, CAM will play a significant role in the growth of our Industrial business and company overall," John Wyatt, Stanley Black & Decker Industrial President.
Consolidated Aerospace Manufacturing is advised by Lazard, Lincoln International, Montgomery McCracken Walker & Rhoads and Sullivan & Cromwell. Stanley Black & Decker is advised by Skadden Arps Slate Meagher & Flom.
Two gold mining companies, Equinox Gold and Leagold, shareholders approved all matters voted to support the transaction announced on December 16, 2019 to combine the companies.
The transaction was approved by 99.88% of the votes cast by Equinox Gold shareholders and by 99.73% of the votes cast by Leagold shareholders.
Equinox Gold is advised by BMO Capital Markets and Blake Cassels & Graydon. Leagold Mining is advised by Fasken Martineau DuMoulin and Scotia Capital.
Milliken & Company, a global diversified manufacturer, completed the acquisition of Borchers, a global specialty chemicals company, from The Jordan Company, a private equity firm. Financial terms were not disclosed.
"We are ecstatic about partnering with Milliken to further invest in our business, build out our global platform and continue providing innovative and satisfying solutions to our customers. Combining our capabilities and approach with the depth of Milliken's technology and innovation will allow us to provide exemplary solutions to the markets we serve," Devlin Riley, Borchers President & CEO.
Milliken & Company was advised by Jones Day. The Jordan Company was advised by Moelis & Co and Mayer Brown.
Bayou City Energy Management, a private equity firm, and Mach Resources, an independent oil and natural gas producer, agreed to acquire the upstream and midstream oil and gas assets of Alta Mesa and Kingfisher for $320m.
"This was a unique opportunity to acquire a sizeable cash-flowing asset with the supporting midstream infrastructure, through a bankruptcy process, in an area of our team's expertise and still have an extensive inventory for future development. Our strategic aim in partnership with BCE has been to aggressively consolidate and maximize underdeveloped, undercapitalized or otherwise distressed areas in the Mid-Continent. We have been successful in buying assets at a discount, increasing production in a cost-effective manner and avoiding overspending. In a lot of ways, we have gone back to the fundamentals that were true when I began my career," Tom L. Ward, Mach CEO.
Bidders are advised by UBS and Kirkland & Ellis.
C.H. Robinson, a provider of multimodal transportation services and third-party logistics, agreed to acquire Prime Distribution Services, a provider of retail consolidation solutions, from Roadrunner Transportation, an asset-light transportation and supply chain solutions provider, for $225m.
“Prime Distribution brings capabilities and synergies to our North American Surface Transportation business and allows us to provide a strategic advantage for our customers delivering to retailers. We are excited to welcome the talented team at Prime to C.H. Robinson, and we will work hard to create even more value for our combined set of employees, customers and carriers,” Mac Pinkerton, C.H. Robinson President of North American Surface Transportation.
Roadrunner is advised by Oppenheimer & Co and Debevoise & Plimpton.
CenterOak Partners-backed FullSpeed Automotive, an automotive aftermarket services platform, agreed to acquire American LubeFast, a provider of quick lube services with 50 total locations in Georgia, Florida, Mississippi and Alabama. Financial terms were not disclosed.
"FullSpeed has been actively expanding over the last 26 months to better serve customers in key regions. American Lube Fast's location density in a strategic area combined with their focus on delivering exceptional customer service made this an ideal fit for the FullSpeed platform," Randall Fojtasek, CenterOak Managing Partner.
CenterOak Partners is advised by BackBay Communications.
Penn National, which owns, operates or has ownership interests in gaming and racing facilities and video gaming terminal operations, agreed to acquire a 36% stake in Barstool Sports, which sells sports products online, from Chernin Group, a media and investment company, for $163m.
“Barstool Sports is a dynamic content company that has grown into a media juggernaut thanks to some of the best talent and fans in the world. Over the last five years, Barstool Sports has brought its audience, creativity, and expertise to the biggest sports betting and DFS operators in the country with great results. The chance to combine our content and fans with Penn National's massive footprint, and to develop a unique and compelling omni-channel approach together, was for us a no brainer,” Erika Nardini, Barstool Sports Chief Executive Officer.
Penn National is advised by JCIR.
Lee Enterprises, a local news provider and platform for advertising in 50 markets, agreed to acquire Berkshire Hathaway Media, newspaper operations of Berkshire Hathaway, for $140m. Berkshire Hathaway is providing approximately $576m in long-term financing to Lee at a 9% annual rate.
“My partner Charlie Munger and I have known and admired the Lee organization for over 40 years. They have delivered exceptional performance managing BH Media’s newspapers and continue to outpace the industry in digital market share and revenue. We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges. No organization is more committed to serving the vital role of high-quality local news, however delivered, as Lee. I am confident that our newspapers will be in the right hands going forward and I also am pleased to be deepening our long-term relationship with Lee through the financing agreement,” Warren E. Buffett, Berkshire Hathaway Chairman and CEO.
CC One Virgin Islands, a member of CC1 Companies, agreed to acquire the US Virgin Islands unit of Southern Glazer's Wine & Spirits, the largest wine and spirits distributor in the United States. Financial terms were not disclosed.
"We are pleased to be the new owners of Southern Glazer's Wine and Spirits of the Caribbean. We continue to grow our portfolio of sparkling and still brands, and the acquisition of Southern Glazer's Caribbean operation solidifies our strategy to become a total beverage company," Carlos Diaz, CC1 Companies Vice President of International Operations.
AMCS, a global supplier of integrated software and vehicle technology for the waste, recycling and resource industries, completed the acquisition of TRUX Route Management Systems, a software solutions provider for the waste industry. Financial terms were not disclosed.
“The North American waste market is a very strategic market for AMCS and shaping to be an exciting place for growth in the coming years. Now and in the future, TRUX's impressive customer base will add further expansion of our business in North America. With the strength of TRUX’s customers in the mid and enterprise market, coupled with AMCS’s investment and resources, I am confident that all our customers will benefit from the integration of the two businesses," Jimmy Martin, AMCS CEO.
Partner One Capital, a private investment firm, completed the acquisition of SL, a provider of real-time middleware monitoring, visualization and diagnostic software. Financial terms were not disclosed.
"I'm delighted to announce the acquisition of SL by Partner One Capital, which indicates exciting times ahead for our customers and partners. Partner One's investment demonstrates complete confidence in SL's outstanding track record, market-leading products, and impeccable customer service. The financial strength, resources and expertise of Partner One Capital will solidify and expand SL's position as a market leader," Tom Lubinski, SL Founder.
Incline Equity Partners, a Pittsburgh-based private equity firm, completed the acquisition of Foundation Source, a provider of outsourced solutions includes foundation creation, administrative support, active compliance monitoring, philanthropic advisory, tax and legal expertise, and online foundation management tools. Financial terms were not disclosed.
“As the industry’s only comprehensive support provider, the company has a compelling value proposition that leverages proprietary client-facing and back-end software along with foundation management expertise. There is substantial opportunity for future growth, including further penetration of the foundation market while entering new markets and adding expanded service capabilities,” Joseph Choorapuzha, Incline Partner.
Petrobras prepares sale of Petrobras Distribuidora.
Brazil’s state-controlled oil company Petroleo Brasileiro hired seven investment banks to sell a stake in its fuel distribution unit, Petrobras Distribuidora, Reuters reported.
The investment banking units of Morgan Stanley, JP Morgan, Goldman Sachs, Itau Unibanco, XP, Bank of America and Citigroup will manage the offering. Petrobras is working to sell some $20-$30bn in assets over the next five years to reduce its hefty debt load.
L Brands CEO considers stepping aside and selling Victoria's Secret. (People)
Victoria's Secret-owner L Brands CEO Leslie Wexner is in talks to step aside from the role and is exploring strategic alternatives for the lingerie brand, the Wall Street Journal reported.
The discussions are ongoing and could result in a full or partial sale of Victoria's Secret. The chain, with about $7bn in annual sales, has long dominated the US lingerie market but has struggled in recent years with falling sales.
Marlin Equity explores $2bn Virgin Pulse sale. (FS)
Marlin Equity Partners hired Morgan Stanley to sell Virgin Pulse in a deal that could value the Providence-based healthcare IT company at more than $2bn. Marlin Equity acquired Virgin Pulse and RedBrick Health in 2018 and merged the companies under the Virgin Pulse name.
Live Nation looking for acquisitions with a $350m funding spree. (FS)
Live Nation, an American global entertainment company, is seeking to for acquisitions and other corporate functions through the sale of $350m in convertible notes.
The bonds that it intends to offer, subject to market and other conditions, are due to mature in February 2025. Live Nation also expects to grant the initial purchasers an option to buy an additional $50m aggregate principal amount of convertible notes.
NYSTRS reveals over $1bn of new private equity commitments. (FS)
The $121.8bn-managing New York State Teachers Retirement System revealed more than $1bn of new private equity commitments.
NYSTRS said new partnerships approved or closed in the last three months of 2019 included $200m commitments to a pair of funds.
EMEA
Comtech Telecommunications, a satellite telecommunications company, agreed to acquire Gilat Satellite Networks, a global provider of satellite-based broadband communications, for $532m. 70% of the consideration will be paid in cash and 30% in Comtech common stock.
"The acquisition better positions Comtech to take advantage of key marketplace trends, particularly the growing demand for satellite connectivity and the enormous long-term opportunity set that is emerging in the secure wireless communications market. I believe that the combination of accelerating satellite connectivity demand and the increasing availability of low-cost satellite bandwidth, makes this a perfect time to unify Comtech and Gilat's solutions and offer our combined customers best-in-class platform-agnostic satellite ground station technologies," Fred Kornberg, Comtech Chairman of the Board and CEO.
Gilat is advised by Alnitak & Co., Jefferies & Company, Quilty Analytics, Naschitz Brandes Amir and Comm-Partners. Comtech is advised by Goldman Sachs, Goldfarb Seligman & Co. and Proskauer Rose. Debt financing is provided by BMO Harris Bank, Citigroup, Goldman Sachs, Israel Discount Bank of New York, M&T Bank, Regions Bank and Santander. Goldman Sachs is advised by Sullivan & Cromwell.
CBPE Capital, a private equity firm, completed the majority investment in ETL Systems, a designer and manufacturer of RF distribution equipment used in the ground segment of the satellite communications market. Financial terms were not disclosed.
“ETL is an excellent company with a reputation for product quality and innovation, a blue-chip international customer base and is led by a strong management team. The business operates in the attractive and growing satellite communications market and is well placed to capitalise on the opportunity ahead of it. We are delighted to have the opportunity to support the management team in delivering the next stage of ETL’s growth strategy,” Jolyon Latimer, CBPE Partner.
CBPE was advised by Addleshaw Goddard, PricewaterhouseCoopers, PMSI, AJ Gallagher and AWT. ETL Systems was advised by IA Global Capital and CMS.
Leonardo, an Italian aerospace and defense group, agreed to acquire Kopter, an aerospace company, from Lynwood, an investment company, for $185m.
“Lynwood is very proud to have strongly supported the development of Kopter and its SH09 programme over the past 10 years. It is now the right time for Leonardo to take over as they are a perfect match for Kopter at this stage of development,” Marina Groenberg, Lynwood CEO.
Leonardo is advised by Ernst & Young and Gatti Pavesi Bianchi. Lynwood is advised by Hogan Lovells.
KONE, which manufactures, maintains, upgrades, and sells elevators, escalators, and autowalks, and CVC Capital Partners, a private equity firm, agreed to acquire Elevator Technology business of Thyssenkrupp, which manufactures industrial components, for $18.7bn.
KONE's interest towards Thyssenkrupp's Elevator Technology business is based on KONE's view regarding the highly complementary geographical footprint of the businesses, substantial value creation on offer from synergies, and joint innovation potential in an operating environment increasingly shaped by digitalization. “We believe we would be a good owner for Thyssenkrupp,” Henrik Ehrnrooth, Kone CEO.
Its rivals include a consortium of Blackstone Group, Carlyle Group and Canada Pension Plan Investment Board, as well as another group backed by Advent International, Cinven and the Abu Dhabi Investment Authority. Brookfield Asset Management, which partnered with Temasek Holdings, is also still in the running, Bloomberg reported.
KONE is advised by Hengeler Mueller.
Suntory Beverage & Food, a Japanese brewing and distilling company group, agreed to acquire a 10% stake in Edrington, a privately owned international spirits company. Financial terms were not disclosed.
"Edrington has a successful long-standing strategic partnership with Suntory. We share a similar ethos and the same passion for craftsmanship, innovation and quality in our brands. We look forward to cementing and building this deep relationship over the coming years," Scott McCroskie, Edrington CEO.
Edrington is advised by Nomura.
Saudi Telecom, a Saudi Arabia-based telecommunications company, agreed to acquire a 55% stake in Vodafone Egypt from Vodafone, a multinational telecommunications company, for $2.4bn.
"The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region. The transaction, which is still subject to detailed due diligence, confirms stc's eagerness to maintain a leadership position not only in the KSA but also in the wider region. Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuous success," Nasser al Nasser, Saudi Telecom Chief Executive.
Credit Agricole agreed to acquire a 85% stake in Linxo, a fintech company that provides account aggregation, payment initiation and personal finance management solutions. The transaction is pending authorization from the French Prudential Supervisory and Resolution Authority. Financial terms were not disclosed.
“The acquisition of this major banking aggregation player in France, a long-time partner of the Crédit Agricole Group, is an important part of our strategic aim of offering customers of the Group's banks innovative payment services that meet the highest market standards. Moreover, it represents a major contribution in terms of technology that will enable the Group to take full advantage of the innovation opportunities offered by changes in regulations," Bertrand Chevallier, Crédit Agricole Payment Services CEO.
Mediaocean, the system of record for the advertising world, completed the acquisition of MBS, a Paris-based media management software provider. Financial terms were not disclosed.
"The acquisition of MBS is a key step in Mediaocean's continued expansion in Europe and worldwide servicing global marketers, agencies, sellers and the wider advertising community. The MBS acquisition helps Mediaocean deliver our system of record solutions across the plan to pay media buying process in France and beyond. We are very excited to have MBS join our team," Bill Wise, Mediaocean CEO.
Carlyle hires JP Morgan to sell Italy fashion brand Twinset. (FS)
The Carlyle mandated JP Morgan as financial consultant to sell its Italian fashion brand Twinset, Reuters reported.
The sale of the company, which is expected to report core earning of around $50m in 2020, should take place in the second quarter of this year.
Banca Mediolanum's stake in Mediobanca is no longer strategic.
Italian asset manager Banca Mediolanum said its 3.3% stake in Mediobanca was no longer strategic, given the uncertainty over the bank's future governance after billionaire Leonardo Del Vecchio became its top investor. The reclassification of the stake would make it easier for Mediolanum to sell it, Reuters reported.
Mediolanum said in a statement that it wanted to have more flexibility over the stake in light of possible changes in its future governance, and so was no longer classing it as strategic but among assets 'held to collect and sell.'
Carlyle-backed Addison Lee seals rescue deal with banks. (FS)
Addison Lee’s banks have struck a deal to take control of Europe's biggest minicab firm. Lenders have agreed to inject £45m ($59m) of new cash into the debt-laden business.
The rescue wipes out the investment of owner US private equity fund Carlyle, which bought Addison Lee for £300m ($390m) in 2013.
APAC
SoftBank-backed Fortress Investment Group raised its offer for Unizo to $1.6bn after Blackstone Group sweetened its offer as the bidding war for the Japanese hotel operator heats up. Blackstone announced that it is offering $1.75bn.
Unizo is advised by Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Financial Group, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young. Fortress is advised by Kekst CNC.
Starwood Capital, US investment firm, agreed to acquire Australian Unity Office Fund, which operates as a real estate investment trust, for $485m.
"Starwood's offer to acquire AOF for $2.98 per unit provides unitholders with an opportunity to obtain liquidity at a certain price. The Offer Price also represents a premium to the current trading levels and NTA. We look forward to engaging with all stakeholders regarding the Offer as we work to successfully complete the transaction," Jeffrey Dishner, Starwood Capital Senior Managing Director and Global Head of Real Estate Acquisitions.
Starwood is advised by Rothschild & Co, King & Wood Mallesons, Abernathy MacGregor Group, and Citadel Magnus.
GIC, Singapore sovereign wealth fund, and Norfund, a private equity company, agreed to acquire a 30% stake in Yoma Bank, one of Myanmar's largest commercial banks, for $89m.
"Post the introduction of the new investors, we will be the best capitalized local bank in Myanmar. One of the best things we get out of GIC is their experience across the regions. They're in many different businesses, they see many different business models and have experience in all kinds of things," Dean Cleland, Yoma Bank Chief Executive Officer.
Lion Air mulls $500m Indonesian IPO.
Indonesia's biggest private carrier, Lion Air, kicked off early marketing for its IPO, adding to a busy Southeast Asian pipeline as Hong Kong remains muted after the Lunar New Year holiday amid the novel coronavirus outbreak.
Lion Air began gauging investor demand this week for an Indonesian IPO that could raise at least $500m, Bloomberg reported.
Gojek to invest in ZULU.
Gojek, a Southeast Asian on-demand multi-service platform and digital payment technology group, invested in ZULU, a producer of Bluetooth motorcycle helmets, pollution control masks, motorcycle jackets, gloves, and goggles.
“We secured funding from Gojek in August 2018 after pitching our business in January 2018. From there, we managed the new project to produce new jackets (for Gojek driver-partners),” Yusuf Syaid, ZULU Co-Founder and CTO.
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