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AMERICAS
TD&I Cable Maintenance, a family-owned and operated telecommunications company, and Tower Arch Capital, a private equity firm, completed the acquisition of Midwest Utility Services, a full service underground construction company. Financial terms were not disclosed.
"Midwest has a deep-rooted legacy of providing exceptional infrastructure services for regional telecom providers. We are excited to partner with TD&I and Tower Arch Capital as we seek to further grow our presence across Minnesota and the surrounding states," Steve Kvistad, Midwest Founder.
Tower Arch Capital was advised by BDO and Gibson Dunn & Crutcher. Midwest Utility Services was advised by Copeland Buhl and Fabyanske, Westra, Hart & Thomson. Debt financing was provided by Zions Bancorporation.
Archer-Daniels-Midland, an American multinational food processing and commodities trading corporation, completed the acquisition of Revela Foods, a Wisconsin-based developer and manufacturer of innovative dairy flavor ingredients and solutions, from New Heritage Capital, a private equity firm. Financial terms were not disclosed.
“Over the last few years we have expanded our management team, added new product capabilities, launched a comprehensive go-to-market strategy - including a new brand - and completed a significant acquisition, all resulting in significant growth. Heritage was by our side throughout that entire journey, helping us to transform the company while preserving our history. We are proud of what we have accomplished together,” Terry Schneider, Revela CEO.
Revela Foods was advised by Houlihan Lokey, Lincoln International, Choate Hall & Stewart and Reinhart Boerner Van Deuren. New Heritage Capital was advised by Houlihan Lokey, Lincoln International, Choate Hall & Stewart, Reinhart Boerner Van Deuren and BackBay Communications.
Patrick Industries, a manufacturer and distributor of component products and building materials, completed the acquisition of Sportech, a supplier of premium component solutions to powersports OEMs, from Monomoy Capital Partners, a private equity firm, for $315m.
"Sportech's growth underscores the unique strength of our closely integrated teams and their commitment to our supportive approach as companies make the leap from a family- or founder-led operation to an enterprise with even broader scale and breadth. We are honored to have worked alongside the company's management team to exceed the goals we outlined together, and we are confident they are well-equipped for continued success as they join the Patrick family of brands," Dan Collin, Monomoy Founding Partner and Co-CEO.
Apex Service Partners, an HVAC, plumbing and electrical services company, completed the acquisition of Frontier Service Partners, a home services company, from Imperial Capital, an investment banking company. Financial terms were not disclosed.
"We are grateful for our partnership with Eugene and Imperial Capital and are proud of what we have built and accomplished. Now, we are excited to be part of a larger team at Apex, which will allow us to leverage their enhanced and industry-leading scale, operational capabilities and expertise to continue to grow in the Midwest," Henry Haley, Frontier Service Co-Founder.
Frontier Service Partners and Imperial Capital were advised by TD Cowen and Torys.
Minute Media, a digital media publisher, completed the acquisition of STN Video, a media company. Financial terms were not disclosed.
“Bringing STN Video into the Minute Media family is a big win for our owned sports content brands, distribution partners and advertisers. With STN’s sports content highlight rights and award-winning video technology, Minute Media’s partners and clients will have access to a 360 degree view of the sports industry, combining content from athletes, teams, creators, and now, leagues,” Asaf Peled, Minute Media Founder and CEO.
Debt financing was provided by HSBC and BlackRock.
Saalex, an engineering and information technology services company, agreed to acquire Spalding Consulting, a provider of software development, information technology, and engineering services to the defence industry, for $75m.
"At Saalex, we are continually exploring avenues for inorganic growth to complement our strong proposal capabilities. The acquisition of Spalding Consulting aligns seamlessly with our expansion objectives," Travis Mack, Saalex Chairman and CEO.
Saalex is advised by Technology PR Solutions (led by Neal Stein).
General Catalyst, a venture capital firm, led a $200m funding in Bilt Rewards, a loyalty program, with participation from Eldridge, Left Lane Capital, Camber Creek and Prosus Ventures.
"Bilt plans to use the new capital toward expanding its Rewards Alliance, which partners with multifamily, single-family, and student housing operators nationwide. It will also go towards bolstering its Neighborhood Rewards program, which aims to help local merchants “connect and build loyalty” with new and existing residents in their community. The company also plans to expand into mortgage payment rewards," Bilt Rewards.
Bilt Rewards was advised by Financial Technology Partners.
HubStar, a software development company, completed the acquisition of Relogix, a hardware enabled software company. Financial terms were not disclosed.
“By providing customers and partners with a new way to optimize workplace value, our latest acquisition represents an inflection point in the industry that will fundamentally change market dynamics. This transaction will strengthen HubStar’s position at the nexus of developing AI-powered workplace trends. It will expand our reach and drive innovation for existing HubStar and Relogix customers, as well as the vast number of organizations struggling to navigate the complexity inherent in hybrid work,” Steve Vatidis, HubStar Executive Chairman.
Collegium, a nonprofit consulting, broad system of best-in-class professional services firms exclusively serving nonprofits, completed the acquisition of Alexander Haas, a fundraising consulting firm headquartered in Atlanta. Financial terms were not disclosed.
"We are always seeking ways to add value for our clients, and our partnership with Collegium will empower both our current and future clients to navigate the evolving landscape of modern philanthropy. This interdependent partnership is a win-win-win for Alexander Haas, Collegium, and, most importantly, our clients," David King, Alexander Haas President and CEO.
Saco Foods, a branded, niche market-leading food products company, completed the acquisition of Solo Foods, a manufacturer of food ingredients. Financial terms were not disclosed.
This strategic move marks a significant step forward for Saco Foods, solidifying their commitment to excellence and providing high quality food products. This acquisition brings together two industry leaders combining Saco Foods fresh, innovative approach and expertise with Solo Foods rich heritage.
Hilton Global Associates, a provider of timely, relevant, and actionable investigative due diligence, completed the acquisition of Investigative Due Diligence Group, a New York City-based company with a significant legacy of expertise in servicing private equity groups and law firms. Financial terms were not disclosed.
This strategic acquisition aligns with Hilton Global's commitment to enhance their investigative due diligence solutions offering, grow their client base, and to continue strengthening their ability to meet the ever-evolving due diligence needs for both the investment and legal communities.
Walgreens explores $4bn-plus sale of Shields Health.
Walgreens Boots Alliance, the troubled drug-store chain in turnaround mode, is exploring options including a sale of Shields Health Solutions, the specialty pharmacy business it acquired a majority of three years ago, Bloomberg reported.
The business could be valued at more than $4bn in a sale. Walgreens is working with advisers to scope out interest in Shields Health, which is expected to draw interest from private equity firms and health-care companies.
Churchill Capital VII announces intention to transfer listing to Nasdaq. (FS)
Churchill Capital VII, a special purpose acquisition company, announced that it plans to transfer the listing of its shares of Class A common stock, public warrants and public units from the New York Stock Exchange to Nasdaq Global Market.
Churchill VII expects that listing and trading of its securities on the NYSE will end at market close on February 2, 2024, and expects to commence trading as a Nasdaq-listed company upon market open on February 5, 2024. Churchill VII's Class A common stock, public units and public warrants will trade under the respective ticker symbols, "CVII," "CVIIU" and "CVIIW," on Nasdaq after the transfer from NYSE to Nasdaq is completed.
Morgan Stanley direct lending fund raises $103m in IPO.
Morgan Stanley Direct Lending Fund said on January 23 it had raised $103m in its initial public offering, Reuters reported. The fund chiefly invests in riskier bonds, like those issued by middle-market companies or by private equity firms looking to finance their acquisitions.
Such bonds typically fetch higher interest than top-rated corporate debt. The interest income is Morgan Stanley Direct Lending Fund's primary source of revenue.
Mexico discount retailer Tiendas 3B is said to seek $500m in US IPO.
BBB Foods, the operator of a discount retailer in Mexico, is looking to go public with a US initial offering that’s expected to raise as much as $500m, Bloomberg reported.
The company, a holding firm that conducts business through its main subsidiary Tiendas 3B, is seeking a listing that would imply a valuation of at least $1bn. The transaction could be launched as soon as the first quarter.
EMEA
Kyowa Kirin, a global speciality pharmaceutical company, completed the acquisition of Orchard Therapeutics, a global gene therapy company, for $478m.
“We are truly excited about the acquisition of Orchard Therapeutics, a leading provider of HSC gene therapy. This platform offers significant potential to deliver more innovative treatments and breakthrough therapies and aligns with our purpose to deliver life-changing value for people living with rare and complex diseases. Going forward, our companies will build on the extensive experience of Orchard’s gene therapy platform and apply it to under-served indications and diseases where we believe it to be scientifically and clinically differentiated,” Masashi Miyamoto, Kyowa Kirin Representative Director, President and CEO.
Lufthansa's bid for a minority stake in ITA Airways could reduce competition in flights to and from Italy, EU antitrust regulators warned, ramping up pressure on the German carrier to offer stronger remedies, Reuters reported.
Lufthansa wants to acquire a 41% stake in the state-owned Italian carrier for €325m ($353m) as part of a capital increase. The European Commission opened an in-depth investigation, saying the deal could reduce competition in passenger air transport services on several short-haul and long-haul routes.
Lufthansa is advised by FGS Global (led by Brigitte von Haacke). ITA Airways is advised by JP Morgan and Mediobanca.
Brighton Park Capital, a private equity firm in Greenwich, Connecticut, led a $116m Series D round in Silverfort, an identity protection company, with participation from Acrew Capital, Greenfield Partners, Citi Ventures, General Motors Ventures, Maor Investments, Vintage Investment Partners and Singtel Innov8.
"Identity has become the weakest link in enterprise security, and solving it requires a new approach – a unified, end-to-end layer of security that covers all the silos and blind spots of the identity infrastructure. We are very excited about our new partnership with BPC, which will allow us to accelerate our platform vision and strong business momentum. We look forward to reshaping the way identity security is done in every company, to effectively answer today's and tomorrow's cyber threats," Hed Kovetz, Silverfort Co-Founder and CEO.
SoftBank Vision Fund 2, a 2019 vintage venture capital fund managed by SoftBank Investment Advisers and SoftBank Group, led a $104m funding round in TravelPerk, the hyper-growth business travel management platform, with participation from Kinnevik and Felix Capital.
"Within the enormous global business travel market, SMBs have remained a largely underserved segment. TravelPerk continues to innovate, integrating AI across the product stack to deliver a world-class experience for customers and travellers. We are excited to partner with TravelPerk and support the next stage of growth," Stephen Thorne, SoftBank Investment Director.
Main Capital Partners, a software investor managing investment funds active in Northwestern Europe and North America, completed the investment in buchner, a provider of therapy and medical rehabilitation. Financial terms were not disclosed.
"We are delighted to join forces with Main and are confident that this partnership will support us in maintaining and improving our market position as the go-to partner when it comes to practice management for general therapists. Together with Main, we will continue to put our customers in the center of our strategy by innovating our products and helping our customers to navigate through the daily challenges of being a general therapist," Ralf Buchner, Buchner Founder and CEO.
Italy plans to sell up to 13% stake in Poste Italiane.
Italy plans to sell a stake of up to 13% in postal service group Poste Italiane, its industry ministry told parliament on January 23, Reuters reported.
The stake sale is part of government plans to raise roughly €20bn ($21.67bn) through asset sales between 2024 and 2026 to keep in check the euro zone's second-largest debt pile as a proportion of gross domestic product.
SIX Group considers bid for Allfunds, no offer imminent.
Swiss stock market operator SIX Group is considering a bid for fund distribution company Allfunds, a move that could be complicated by the difficulty of raising acquisition financing, Reuters reported.
Allfunds management is expected to meet prospective bidders next month.
Bill Ackman, wife buy 4.9% stake in Israeli stock exchange. (FS)
Billionaire hedge fund manager Bill Ackman and his Israeli-born wife Neri Oxman have agreed to buy an equity stake of around 4.9% in the Tel Aviv Stock Exchange, the Israeli bourse said on January 24, Reuters reported.
The purchase was part of the TASE's secondary offering of 18.5% of its shares, in which it sold 17.2m shares at ILS20.60 ($5.47) per share for ILS353m ($95m).
The TASE said net proceeds amounted to ISL242m ($64m) after deducting placing commissions and other offering expenses.
CVC opts for bank deals over private credit for latest buyouts. (FS)
Global alternative investment manager Ares Management is set to hold a final close on what would be the largest ever direct lending fund raised to date, with over €20bn ($21.9bn) in capital commitments.
Lenders including UniCredit, Crédit Agricole and Natixis beat private lenders to provide a €200m ($218m) loan for the La Piadineria deal, with those lenders expected to sell on some of the debt to a wider group of banks.
CVC also funded its acquisition of German vitamin and supplement manufacturer Sunday Natural with about €200m ($218m) of financing from banks including Deutsche Bank, UniCredit and UBS.
Abrdn pursues deep cost cuts after fund drain. (FS)
British asset manager abrdn confirmed plans to axe 500 roles as part of deep cost cuts on January 24 after suffering worse than expected outflows of client cash in the second half of 2023, Reuters reported.
Abrdn and other active asset managers have been grappling with turbulent markets and growing competition from low-cost passive investors.
The Edinburgh-based company reported net outflows of £12.4bn ($15.75bn) for the period, more than double the £5.2bn ($6.6bn) withdrawn in the first six months of 2023, in a trading update ahead of its full-year results next month.
APAC
Apollo-backed aerospace supplier Arconic to sell China business in $300m deal. (FS)
US aerospace supplier Arconic, controlled by private equity firm Apollo Global Management, is selling its China business in a deal that could value it at as much as $300m, DealStreetAsia reported.
The Pittsburgh-based company has mandated Goldman Sachs to run the sale.
Alibaba shares rise as co-founders Jack Ma, Joe Tsai buy stock.
Alibaba Group shares rose on news that co-founders Jack Ma and Joe Tsai bought about $200m of the company’s stock in the latest quarter, giving the Chinese technology giant some welcome relief amid a monthslong slide, WSJ reported.
Alibaba closed 7.3% higher on January 24, outpacing the 4.2% gain in Hong Kong’s tech index and giving the company its biggest one-day percentage rise in 10 months.
SoftBank offloads another 2% in Indian payments app Paytm. (FS)
SoftBank has sold an additional 2% in India’s Paytm, the latest in a string of selldowns in the digital payments firm, DealStreetAsia reported.
The Japanese conglomerate, which sold shares between December 19 and January 20, now holds a 5.06% stake in the company, according to an exchange filing on January 24.
Paytm has recently seen a spate of selldowns, including the exit of Warren Buffett’s Berkshire Hathaway and China’s Alibaba. The Netherlands-based unit of Chinese fintech firm Ant Financial has also trimmed its stake in the company.
China’s Key Broad Capital launches $282m CNY PE fund to invest in new energy sectors. (FS)
China’s Key Broad Capital is setting up an CNY-denominated CNY2bn ($282m) private equity fund to focus on the new energy and energy storage industries, DealStreetAsia reported.
Earlier this month, Key Broad Capital signed agreements to rope in two domestic limited partners, including Hong Kong-listed battery products maker CALB New Energy, a Shanghai-listed provider of energy-saving solutions and core comp vehicles.
Axis investment banking head is said to leave amid IPO boom. (People)
Salil Pitale, the interim head of Axis Bank's investment banking arm, has departed the Indian firm, Bloomberg reported. Pitale left Mumbai-based Axis Capital earlier this week.
Veteran JM Financial banker Atul Mehra is set to take over as the new chief of Axis Capital. JM Financial announced earlier this month that Mehra had resigned and his term as joint managing director would end on April 20.
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