Kroger, a retail company, agreed to acquire Albertsons, a grocery company, for $24.6bn.
"Albertsons brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors. As a combined entity, we will be better positioned to advance Kroger's successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings. We'll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders," Rodney McMullen, Kroger Chairman and CEO.
Albertsons is advised by Credit Suisse, Goldman Sachs, Debevoise & Plimpton (led by
Ted Hassi), Jenner & Block, Wachtell Lipton Rosen & Katz (led by
Adam Emmerich and
Zachary Podolsky) and White & Case. Financial advisors are advised by Davis Polk & Wardwell (led by
Phillip R. Mills and
Cheryl Chan). Kroger is advised by Citigroup, Wells Fargo Securities, Arnold & Porter Kaye Scholer and Weil Gotshal and Manges.
Avalaraa, a provider of tax compliance automation for businesses of all sizes, announced that its shareholders voted to approve the pending $8.4bn transaction with Vista Equity Partners, a global investment firm.
Approximately 80% of outstanding shares were represented at the meeting with 84% of those shares voting in favor of the proposed merger resulting in 66% of total outstanding shares in favor of the merger. The transaction is expected to close on October 19, 2022.
SailingStone Capital Partners intends to vote against the proposed $3.3bn transaction between Turquoise Hill, a mineral exploration and development company, and Rio Tinto, a metals and mining corporation.
SailingStone believes that the bid significantly undervalues Turquoise Hill Resources and attempts to take advantage of the material governance failures created by Rio Tinto and the Turquoise Hill independent directors over the last decade.
Turquoise Hill is advised by BMO Capital Markets, TD Securities, Blake Cassels & Graydon, Norton Rose Fulbright and Paul Weiss Rifkind Wharton & Garrison (led by
Adam M. Givertz). Rio Tinto is advised by Credit Suisse, RBC Capital Markets, Rothschild & Co (led by
Roger Ewart,
Derrick Queen and
Karina Danilyuk), McCarthy Tetrault (led by
Shea T. Small) and Sullivan & Cromwell (led by
Scott Miller).
US Bancorp, a parent company of US Bank National Association, announced that it has received all required US regulatory approvals to complete the $8bn acquisition of MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, a financial services group.
“We are pleased to have received US regulatory approval. We believe that this acquisition is good for customers, good for the communities that MUFG Union Bank has served and good for employees. It allows us to make investments to serve customers and enhance competition on the West Coast. We share many common values with MUFG Union Bank and we look forward to having their employees and customers join the US Bancorp family,” Andy Cecere, U.S. Bank Chairman, President and CEO.
Booz Allen Hamilton, an American management and information technology consulting firm, completed the acquisition of EverWatch, a provider of advanced solutions to the defense and intelligence communities, from Enlightenment Capital, a private equity firm. Financial terms were not disclosed.
“EverWatch’s talented workforce, national security expertise and core technical capabilities are an exceptional strategic fit with Booz Allen’s deep mission insights and robust portfolio of full-spectrum cyber operations, mission analytics, AI, and 5G offerings. The combination will deliver tremendous value to our clients as we work together to navigate a dynamic threat landscape and transform US national cyber capabilities,” Tom Pfeifer, Booz Allen President.
EverWatch was advised by Robert W Baird (led by
Jean Stack and
John Song), Moore & Van Allen and Morrison & Foerster (led by
Damien Specht). Booz Allen Hamilton was advised by The Avascent Group, Jefferies & Company and King & Spalding.
DiaCarta, a precision molecular diagnostics company and developer of novel oncology and infectious disease tests, agreed to go public via a SPAC merger with HH&L Acquisition, a publicly traded special purpose acquisition company, in a $460m deal.
“We are thrilled to enter into this transaction with HH&L. As a result of the transaction, DiaCarta will be well positioned to capitalize on significant future growth within our existing customer base and expand into compelling adjacent markets. This transaction represents a major milestone for DiaCarta, which will enable us to further invest in our technology and support pipeline growth,” Aiguo (Adam) Zhang, DiaCarta Founder and CEO.
DiaCarta is advised by Revere Securities and Loeb & Loeb. HH&L Acquisition is advised by Cohen & Company and White & Case. Cohen & Company is advised by Morgan Lewis & Bockius.
The Jordan Compan-backed Sunny Sky Products, a dispensed beverage manufacturer of cold dispensed, agreed to acquire GoodWest Industries, a manufacturer and supplier of low-acid aseptic beverages solutions, from Palladium Equity. Financial terms were not disclosed.
"GoodWest has experienced tremendous growth over the past few years, and its products and customer base are a natural fit for Sunny Sky. We look forward to welcoming GoodWest and its employees to the Sunny Sky family and are confident this partnership will better position us to scale our business and capitalize on our strong momentum. Additionally, we thank Palladium, who has been an excellent partner to GoodWest and has been instrumental in transforming the business into a world-class enterprise," W. Ashley Edens, Sunny Sky Products President and CEO.
GoodWest is advised by Lincoln International, Greenberg Traurig and Kekst CNC (led by
Jeffrey Z. Taufield and
Todd Fogarty). TJC is advised by Prosek Partners. Sunny Sky Products is advised by Kirkland & Ellis.
KKR led a $400m investment in Skydance Media, a diversified media company, with participation from The Ellison Family, RedBird Capital and Tencent.
"We are delighted to invest behind Skydance, David Ellison and the impressive, differentiated team of creative and entrepreneurial talent he has assembled.” Ted Oberwager, Partner, who leads the gaming, entertainment, media and sports verticals within KKR’s Americas Private Equity business, added: “Skydance has already created a diverse collection of premium content across multiple formats, and we are only in the early stages of what they can accomplish. We look forward supporting the Skydance team as they continue to build their business across TV, film, animation, gaming and sports and tell compelling stories in new and innovative ways,” Jenny Box, KKR Partner.
Advent-backed Caldic, a chemical products manufacturer and distributor, agreed to merge with Wilbur-Ellis-backed Connell, a marketer and distributor of specialty chemicals and ingredients. Financial terms were not disclosed.
"By bringing together the highly complementary businesses of Caldic and Connell, we will form a truly global business with significant exposure to high-growth regions and very diversified end markets with a high value-add offering. In Wilbur-Ellis, we have found a committed partner who shares our long-term vision of building a fully integrated growth and innovation focused business. We look forward to working together with Wilbur-Ellis and the management teams of both Caldic and Connell in this exciting new chapter which brings synergistic business development opportunities for principals and customers alike," Ronald Ayles, Advent International Managing Partner.
Wilbur-Ellis is advised by Natrium Capital and Rabobank.
Polychain Capital, a private equity firm, led a $165m Series B round in Uniswap Labs, a crypto exchange firm, with participation from a16z Crypto, Paradigm, SV Angel, and Variant.
The new funding will be used to support the firm’s expansion plans. In addition to “bringing the powerful simplicity and security. Uniswap Labs plans to launch non-fungible tokens and to move into mobile.
Manulife Investment Management, a wealth and asset manager, completed the acquisition of two Central Valley orchards. Financial terms were not disclosed.
"We are proud to add these high-quality orchards to our permanent crop portfolio, managed by our experienced direct-operation team of agricultural professionals, for the benefit of our investors. We believe that orchards, as a nature-based solution, can provide both economic returns to our investor clients along with social and environmental benefits. Producing healthy, nutritious food while responsibly managing these natural resources can also contribute positively to vibrant rural communities, such as the ones surrounding these investments," Oliver Williams, Manulife Investment Management Global Head of agriculture investments.
SmithAmundsen, a litigation, business and employment law firm, agreed to merge with Davis|Kuelthau, a business law firm, to form Amundsen Davis, a full service law firm. Financial terms were not disclosed.
"SmithAmundsen has grown steadily and strategically over the last 25 years to add service areas and expand our geographic reach to truly benefit our clients. The opportunity to combine with a firm that is so like-minded is one we are very excited about. What will set Amundsen Davis apart from our large law firm competition is our ability to maintain a boutique firm feeling in terms of client service while providing the resources and infrastructure of a large national firm," Larry A. Schechtman, SmithAmundsen Managing Partner.
Rupert Murdoch is considering a $26.15bn merger of Fox and News.
Rupert Murdoch has started a process that could reunite his media empire, News and Fox, saying they would consider combining at his behest, nearly a decade after the companies split. Both have formed special committees to review proposals of the $26.15bn potential combination.
If a deal goes through, the combination will allow Murdoch greater control over his media assets and help the companies trim costs. Media companies are fighting decades-low growth in advertising sales and for users’ attention against deep-pocketed social media and content websites.
Reuniting Fox and News would give the combined companies greater scale to compete, and complement their assets. The combined companies would have around $24bn in revenue,
CNBC reported.
Carrix, Ports America bidding for $3bn GCT terminals.
Ports America, Terminal Investment, Carrix and Hapag-Lloyd are among shortlisted bidders for Global Container Terminals’ operations in Staten Island in New York and Bayonne of New Jersey.
Global Container Terminals’ owners Ontario Teachers’ Pension Plan, IFM Investors and British Columbia Investment Management have narrowed down the group of suitors vying for the two container terminal. The assets may fetch about $3bn.
Ports America is owned by Canada Pension Plan Investment Board, while Carrix is controlled by Blackstone Infrastructure Partners. TIL handles volumes for Mediterranean Shipping Company and counts Global Infrastructure Partners and Singapore’s GIC among its investors, while Hamburg-based Hapag-Lloyd is a global liner shipping company,
Bloomberg reported.
Schlumberger explores an $800m valves business sale.
Schlumberger, an oilfield services company, is exploring a sale of part of its US valves business.
The company is working with an adviser to study a potential divestment of the assets for more than $800m. The assets are expected to draw interest from oilfield services rivals. No final decision has been made and Schlumberger could opt against a sale,
Bloomberg reported.
Borr Drilling announces a $120m sale of Gyme.
Borr Drilling, an international drilling contractor, announces a $120m sale of Gyme, a jack-up drilling rig.
The sale of the rig is an undertaking by the Company under its most recent refinancing with PPL Shipyard which was completed early October 2022. The proceeds from the sale will be applied to all outstanding amounts owed on the rig, and excess amounts will be applied to the capitalised interest for the eight other rigs financed by PPL. The transaction is expected to close in the fourth quarter 2022.
Instacart cuts its valuation to $13bn, steering clear of the IPO.
Instacart is slashing its valuation to about $13bn and steering clear of a highly anticipated public stock listing until market conditions improve.
The US’s largest online grocery-delivery company set a new price of $38 a share, marking the third time it has reduced the valuation this year. Instacart cut its valuation in March by almost 40% to $24bn and again in July to $15bn.
The new valuation was announced internally at a recurring employee meeting where executives cited volatile market conditions as the reason for the revision. Leaders also reiterated the company’s intention of going public, stressing the business fundamentals were healthy and ready for that milestone but that it was waiting for an optimal open market window,
Bloomberg reported.
Bridge Investment Group raises $1.74bn for Bridge Workforce and Affordable Housing Fund II. (FS)
Bridge Investment Group Holdings, a private equity firm, announced the completed fundraising for Bridge Workforce and Affordable Housing Fund II, raising $1.74bn in equity commitments, ahead of its $1.50bn target.
BWAF II is dedicated to building, preserving, and rehabilitating predominantly non-government subsidized housing wherein at least 51% of residents earn below 80% of area median income, meeting the needs of the large and priced-out “missing middle” of US renters.
“We believe this represents the largest fund ever raised purely dedicated to the preservation of affordable housing in America. The US has an affordable housing crisis, with an estimated 10m households paying more than 50% of their annual incomes for housing. Currently, 82% of our Workforce and Affordable Housing residents earn less than 80% of AMI, and over 96% are not cost-burdened, typically defined as spending more than 30% of income on rent," Rachel Diller, Bridge Co-Chief Investment Officer.
Next Play Capital closes oversubscribed Fund III at $200m. (FS)
Next Play Capital, a venture capital firm, announced the closing of its third flagship fund at $200m. The Fund exceeded its initial target size of $150m and significantly surpasses the size of its predecessor Fund II. Fund III adds 11 new institutional limited partners who embody the values that reflect Next Play Capital’s diverse LP community.
“From the beginning, we have sought to make venture more accessible to those who historically haven't been given the resources to decode it, nor have they been given a seat at the table. We are grateful for the relationships with our general managers and look forward to continuing to support their efforts to back innovative founders," Ryan Nece, Next Play Capital Managing Partner.
