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AMERICAS
Alaska Air said on August 15 that it has agreed to further extend the review period of its proposed $1.9bn acquisition of peer Hawaiian with the US Department of Justice, Reuters reported.
The companies will extend the review period with the DOJ until August 20. The deal was announced last year, and the carriers said in March they "have been working cooperatively with the DOJ and expect to continue to do so".
Alaska Air is advised by Bank of America (led by Steven Baronoff), PJT Partners, and O'Melveny & Myers (led by Andor Terner). Financial advisors are advised by Cleary Gottlieb Steen & Hamilton (led by Charlie Allen). Hawaiian Airlines is advised by Barclays, Wilson Sonsini Goodrich & Rosati (led by Tony Jeffries), and Joele Frank (led by Kelly Sullivan). Barclays is advised by Sullivan & Cromwell (led by Stephen M. Kotran).
Blackstone, an alternative investment management company, agreed to acquire a majority stake in Chartis, a healthcare advisory firm. Financial terms were not disclosed.
“Chartis was founded with the mission to help clients fundamentally improve healthcare delivery across the United States. Over the past 23 years, since our inception, great strides have been made. Looking to the future, we are excited to do even more. Blackstone shares our commitment to supporting industry leaders across the healthcare landscape as they strive to make care in the US more accessible, more affordable, more reliable, more equitable, and more human for patients and caregivers,” Ken Graboys and Ethan Arnold, Chartis CEO and Managing Partner.
New State-backed Jones Industrial, a provider of installation, maintenance and repair of critical rotating and reciprocating equipment, completed the acquisition of the rotating equipment segment of Universal Plant Services, a specialist in rotating and reciprocating equipment services. Financial terms were not disclosed.
"This partnership with New State represents a significant milestone for our company. Coupling our team's technical expertise and long-term client relationships with New State's operational support and financial resources will be invaluable as we execute on our growth strategy. This targeted operating strategy makes us even more desirable as a partner, and we'll be even more competitive as we recruit, hire, and retain the most highly skilled craftspeople in the industry. We are confident in a bright future for UPS with New State by our side," Reagan Busbee, Universal Plant Services CEO.
New State Capital Partners was advised by Piper Sandler, Morgan Lewis & Bockius, and Lambert & Co (led by Joanne Lessner). Universal Plant Services was advised by Harris Williams & Co and Sidley Austin.
Lone Star, a private equity firm, agreed to acquire commercial and residential fire business from Carrier, an intelligent climate and energy solutions provider, for $3bn.
"The sale of our Commercial and Residential Fire business marks a defining step in our planned business exits critical to our transformational journey to becoming a focused, agile, higher-growth, pure-play company dedicated to creating a more sustainable world for generations to come. I am so proud of what our deal and business teams have accomplished. We now have executed deals on all our divestitures, all signed within about a year of announcement, with a combined value of over $10bn, representing a mid-teens EBITDA multiple in aggregate. This reflects tremendous dedication by so many, and I could not be more appreciative of our team's tireless efforts and great work," David Gitlin, Carrier Chairman & CEO.
Carrier is advised by Goldman Sachs, JP Morgan, Linklaters and Paul Weiss Rifkind Wharton & Garrison (led by Laura Turano).
Warburg Pincus, a private equity firm, completed the acquisition of Service Express, a data center solutions provider specializing in multivendor maintenance, managed infrastructure and hardware services, from Harvest Partners, a private equity firm. Financial terms were not disclosed.
"We are incredibly proud of what we have been able to accomplish since partnering with Harvest in 2019. On behalf of the entire Service Express team, I would like to thank Harvest for its continued support and strategic direction over the last few years, and we are excited about our new collaboration with Warburg Pincus for the next chapter of the Company's growth," Ron Alvesteffer, Service Express CEO.
Service Express was advised by JP Morgan, William Blair & Co, Kirkland & Ellis, and Lambert & Co (led by Lisa Baker).
Roper Technologies, a diversified company that designs, manufactures, and distributes vertical software and technology enabled products, agreed to acquire Transact Campus, a provider of innovative payment, campus ID, and commerce solutions for a connected campus, from Reverence Capital Partners, a private investment firm, for $1.6bn.
"We are extremely excited for this next stage of our journey and look forward to continuing to provide best-in-class experience to our customer base, while also bringing to them the benefits of a more scaled platform. I also wanted to thank Reverence for their invaluable partnership over the past five years. Between standing up the business, building out the management team, and driving product investment that's led us to becoming a best-in-class institution, Reverence has been integral in getting us to where we are today," Nancy Langer, Transact CEO.
Transact Campus is advised by William Blair & Co, Cooley, and Gladstone Place Partners (led by Steven Lipin).
Insight Partners, a global venture capital and private equity firm, and Sixth Street, an investment firm, completed a $456m investment in Kiteworks, a technology company that secures sensitive content communications.
“This minority stake investment affirms Kiteworks’ role in providing a revolutionary solution to the world’s growing challenge of tracking and controlling sensitive data in motion and use. With recent groundbreaking innovations such as Next-Gen Digital Rights Management, combined with the growing industry and regulatory focus on tracking and controlling the data layer, the road to realizing our vision has never been clearer. We’re excited to accelerate our growth and continue innovating to meet the evolving needs of our customers with the support of Insight Partners and Sixth Street Growth," Jonathan Yaron, Kiteworks CEO and Chairman.
Kiteworks was advised by Moelis & Co and Pillsbury Winthrop Shaw Pittman (led by Justin Hovey). Insight Partners was advised by Willkie Farr & Gallagher (led by Matthew Guercio).
Gallatin Point, a private investment firm, completed the acquisition of a 15% stake in Discount Bank, an Israeli-owned bank operating abroad, is a commercial bank providing a comprehensive range of banking services, for $150m.
"Gallatin Point is a private US institutional investment fund with a special focus in financial services, loans, insurance, asset management, financial technology, real estate financing, banking, and capital markets. Our new partnership opens new opportunities for IDB as we strive to expand our customer base and enhance the services we provide them," IDBNY.
Gallatin Point was advised by Barclays and Davis Polk & Wardwell (led by Harold Birnbaum). Discount Bank was advised by Simpson Thacher & Bartlett (led by Sven Mickisch).
Universities Superannuation Scheme, a pension company, agreed to acquire 3,000 shared ownership homes from Blackstone, an investment group, for £405m ($517m).
“By deploying capital to fund the development of new homes, we are proud to have created an institutional-grade portfolio, which, in turn, has attracted more long-term institutional capital into the sector. This transaction will allow us to continue to invest capital into Sage Homes to help to alleviate the structural undersupply of housing across the UK," James Seppala, Blackstone Head of European Real Estate.
Lockheed Martin, a global security, defense and aerospace contractor, agreed to acquire Terran Orbital, a leader of satellite-based solutions primarily supporting the aerospace and defense industries, for $450m.
"We've worked with Terran Orbital for more than seven years on a variety of successful missions. Their capabilities, talent and business momentum align with Lockheed Martin Space's strategic plans – and we're looking forward to welcoming them to our team. Our customers require advanced technology and even faster product development, and that's what we can achieve together," Robert Lightfoot, Lockheed Martin President.
Terran Orbital is advised by Jefferies & Company.
Sciens Building Solutions, a provider of innovative fire alarm and security system solutions, completed the acquisition of Western Fire Protection, a provider of foam systems, fire hydrants, inspection, density upgrades, shell systems and maintenance services. Financial terms were not disclosed.
"Sciens' solid technical expertise and comprehensive building solutions, combined with Western's capabilities, allows us to develop more comprehensive offerings for the important San Diego market. Sciens is thoughtfully growing across the country and has earned a great reputation for helping take companies to the next level, which can only benefit our customers and employees," Lyle Hall, Western Fire Protection President.
Southern Home Services, a provider of air conditioning, heating, electrical, and plumbing repair and maintenance services, completed the acquisition of Elite Electric, Plumbing & Air, a provider of HVAC, electrical, and generator services to both residential and business clients. Financial terms were not disclosed.
"Aligning with Southern Home Services will enable Elite to grow and advance rapidly. Their resources and industry expertise will be crucial in helping us elevate our customer support and drive business growth to the next level," John Pankraz, Elite Electric, Plumbing & Air Co-Owner.
Energy producer Maverick's owner explores sale valuing it at $3bn. (FS)
The private equity owner of Maverick Natural Resources is exploring a potential sale that could value the US oil and gas producer at nearly $3bn including debt, Reuters reported.
The Houston-based exploration and production company, which is owned by energy-focused investment firm EIG, is working with investment bankers at Jefferies on the sale process.
Nubank CEO sells $404m of shares after 60% stock rally.
David Velez, the billionaire co-founder and chief executive officer of Nu, sold stock on August 15 for the second time since a 2021 initial public offering, Bloomberg reported.
Velez unloaded 31m shares, or about 3% of his total stake, via his trust Rua California to raise $404m. The sale is intended for "estate planning purposes."
US watchdog Cfius discloses $60m fine against T-Mobile.
The government watchdog that oversees foreign investment in the US for the first time named a company it had penalized - telecom giant T-Mobile US - as it escalated pressure on firms to comply with national-security rules linked to acquisitions, Bloomberg reported.
The Committee on Foreign Investment in the United States, or Cfius, fined T-Mobile $60m earlier this year for failing to prevent or disclose unauthorized access to "certain sensitive data". T-Mobile had signed a national security agreement with Cfius in 2018 as part of its merger with Sprint.
Coach owner Tapestry rides on Tabby handbags demand to beat estimates.
Tapestry beats analysts' expectations for fourth-quarter results on robust demand for its popular Coach Tabby handbags, signaling interest in affordable luxury as global spending eases from post-pandemic highs, Reuters reported.
Tapestry has banked on Tabby shoulder bags to drive more full-price sales at its stores, as Stuart and Kate Spade, its subsidiaries, struggle with weak demand in the US and China. The company's shares rose 8% in early trading on August 15.
Man Group nears deal to sell 1700 rental homes to AMH. (FS, RE)
Man Group, the world's biggest publicly traded hedge fund firm, is in advanced talks to sell a portfolio of roughly 1700 US rental houses to single-family landlord AMH, Bloomberg reported.
The homes are located in Florida, Texas and Nevada, with average market rents above $2k. Man Group, headquartered in London, is being advised by Roofstock.
US Steel outperforms on bets Nippon Steel deal has better chance.
US Steel is beating its peers in the stock market as investors speculate that political and labor opposition to Nippon Steel's $14.1bn takeover may be easing, Bloomberg reported.
Nippon Steel agreed to buy US Steel in December, but opposition from the United Steelworkers union and both Trump and Biden left investors uncertain about the fate of a deal that's still navigating federal foreign investment review.
Shares in the Pittsburgh-based firm are up more than 6% in the past month, recovering more of the ground lost when President Joe Biden and Donald Trump voiced opposition to the deal.
Sixth Street consortium to be buyer of UBS mortgage unit. (FS)
A group of investors led by Sixth Street Partners has agreed to buy Credit Suisse's US mortgage servicing business from UBS, Bloomberg reported.
Sixth Street is working with co-investor Davidson Kempner Capital Management on the deal to acquire UBS's Select Portfolio Servicing. The sale is expected to close in the first quarter of 2025.
Klarna nears picking Goldman as lead bank for US IPO.
Klarna Bank is close to selecting Goldman Sachs to lead the financial technology firm's US initial public offering next year, Bloomberg reported.
The potential move comes as the Stockholm-based lender is in talks with investors for a sale of existing shares that would come before the proposed IPO. Klarna had considered seeking a valuation of around $20bn in the IPO.
Resurgens Technology Partners announces closing of $800m third fund. (FS)
Resurgens Technology Partners, a private equity firm investing in North American and European lower middle-market software companies, today announced the completion of fundraising for its Fund III, securing $800m in commitments.
Similar to predecessor Resurgens vehicles, Fund III will target majority investments in founder-owned software businesses as well as special situations such as carve-out transactions or venture-backed recapitalizations.
NextGen Growth Partners closes oversubscribed Fund III at $165m. (FS)
NextGen Growth Partners, a Chicago-based private investment firm, has closed its third fund, NextGen Growth Partners Fund III, at its $165m hard cap. Fund III was oversubscribed at a first and final close, welcoming capital commitments from new institutional partners alongside continued support from its existing partners.
"We're incredibly grateful for the trust and support of our investors. With Fund III, we're well-positioned to continue our mission of partnering with exceptional entrepreneurs and driving growth in fundamentally-sound businesses," Brian O'Connor, NextGen Founder and Managing Partner.
Canada Pension taps Gubbels to run global private equity team. (FS, People)
Canada Pension Plan Investment Board promoted Caitlin Gubbels to lead its global private equity group, replacing Suyi Kim, who's leaving the fund manager after 17 years, Bloomberg reported.
Gubbels, who has worked for CPPIB since 2010, is its head of private equity fund partnerships, a team that invests in large and middle-market buyout funds and also makes minority direct investments in companies. She's a former investment banker at Canadian Imperial Bank of Commerce.
Blackstone's Dwight Scott to retire after building credit colossus. (FS, People)
Dwight Scott, chairman of Blackstone Credit and Insurance, who helped build Blackstone's credit operation into a $330bn behemoth, is retiring from the firm, Bloomberg reported.
Scott came to Blackstone in 2008 through its acquisition of GSO Capital Partners, an asset-management firm that jumpstarted its credit business. Before joining Blackstone in 2005, he was an executive vice president and CFO of El Paso Corporation.
Victoria's Secret CEO exits with Hillary Super to be his successor. (People)
Shares for Victoria's Secret climbed after the lingerie retailer tapped Hillary Super, chief executive officer of Rihanna's popular Savage x Fenty brand, to be its next chief executive, WSJ reported.
Super will succeed Martin Waters, who led the company for three years. Before serving as CEO of Savage X Fenty, Super was a Global CEO of Anthropologie Group, an Urban Outfitters Company.
EMEA
Odevo, an international company challenging the property management industry, completed the acquisition of Retta Isännöinti, a service company in the management of residential and real estate companies, from Altor, a private equity firm. Financial terms were not disclosed.
“I am very happy to welcome Anders Gylling and his team to the Odevo family. We have an ambition to simplify living for people all over the world and drive innovation in technology and new services in a traditional industry. Retta Isännöinti shares the same drive and ambition, and joining forces allows us to invest in technology and deliver greater value to the Finnish customers," Daniel Larsson, Odevo CEO.
Retta was advised by Carnegie Investment Bank.
XPO explores sale of European transportation business.
XPO has revived a sale of its European transportation business almost two years since it last scrapped the attempt to divest the operation, Bloomberg reported.
The New York-listed logistics firm has been working with advisers and sounding out potential buyers for the business, which includes truckload and freight forwarding services. A sale of the unit could fetch as much as $2bn.
Russian court orders $1.2bn of Linde UK assets be frozen.
A Russian court has ordered that assets worth around $1.15bn of a British subsidiary of German industrial gases company Linde be frozen in a dispute over a gas processing plant, Reuters reported.
RusChemAlliance, which filed the lawsuit, is a joint venture 50% owned by Russia's Gazprom. The company has filed several other suits against European banks over the construction of a gas processing plant in Russia with Germany's Linde, which was terminated due to Western sanctions.
Goldman agrees to sell Ireland's largest shopping mall to SVP. (FS, RE)
Opportunistic credit firm Strategic Value Partners struck a deal to buy Blanchardstown Centre, Ireland's largest shopping mall, from Goldman Sachs, Bloomberg reported.
The US investment bank offered the center for sale last year, seeking about €650m ($716m). The selling price is lower than that, because the value of the best malls in Europe has fallen more than 40%.
InfraVia weighing sale of €1bn Swiss data center operator. (FS)
French private equity firm InfraVia Capital Partners is considering a sale of Swiss data center operator Green, Bloomberg reported.
The company bought Green for about CHF214m ($248m) from Altice in 2018. InfraVia is currently working with advisers on the potential divestment, which could value the company at about €1bn ($1.1bn).
Infinitas-backed HausVorteil is said to weigh listing in Germany. (FS)
HausVorteil, backed by the family office of the Lauber family, is considering going public in Germany as soon as this year, Bloomberg reported.
The Infinitas Capital-backed company has held initial discussions with potential advisers on the listing plan, which is unlikely to involve selling any new or existing shares. HausVorteil, which buys stakes in residential properties and provides financing in return, is targeting a valuation of €35m ($38.6m) to €50m ($55m) in a listing.
Norway wealth fund clocks $138bn profit in H1 as AI demand lifts tech.
Norway's $1.7tn sovereign wealth fund, the world's largest, had posted a profit of NOK1.48tn Norwegian ($138bn) in the first half of the year as global stock markets rose, DealStreetAsia reported.
"The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," Nicolai Tangen, Norwegian Sovereign Wealth Fund CEO.
APAC
SoftBank discussed AI chips tie-up with Intel to rival Nvidia.
SoftBank held talks with Intel about producing an artificial intelligence chip to compete with Nvidia but the plan foundered after the US chipmaker struggled to meet the Japanese group's requirements, FT reported.
Negotiations to partner with Intel would have accelerated SoftBank's efforts to combine the chip designs of its crown jewel - Arm, with the production expertise of its latest acquisition.
Alibaba's marquee business whrinks as Chinese consumer flails.
Alibaba posted an anemic 4% rise in revenue after its Chinese commerce business shrank for the first time in at least a year. The weak result dispelled hopes of a quick turnaround at the company that pioneered Chinese e-commerce two decades ago, Bloomberg reported.
Its shares slid more than 2% in premarket trading in New York, as a 27% plunge in profit spooked investors already nervous about the health of the Chinese consumer.
Jack Ma-backed Ant sees 10% profit slide after shake up.
Ant Group's profit dropped 10% in the March quarter, following a structural shakeup and ramped up efforts to grow overseas, Bloomberg reported.
The Hangzhou-based fintech company contributed CNY3.9bn ($545m) of profit to Alibaba Group. Based on Alibaba's one-third stake in Ant, that translates to an estimated CNY11.7bn ($1.6bn) in profit for the three month ended in March.
Convenience-store chain 99 Speed Mart launches Malaysia's biggest listing in seven years.
Malaysian convenience-store chain 99 Speed Mart Retail has launched its MYR2.36bn ($532m) listing, in what would be the country's biggest debut in seven years, Bloomberg reported.
The deal is set to further boost Malaysia's initial public offering market, where listings so far this year have raised more money than they did in all of 2023. The debut is offering up to 1.43bn shares at MYR1.65 ($0.37) apiece.
Sweden's EQT seeks $12.5bn for new Asia fund. (FS)
EQT plans to raise $12.5bn for its new Asia-focused fund, which will be managed by EQT Private Capital Asia, a company that was formed in October 2022 when EQT acquired Baring Private Equity Asia for $6.7bn.
If successful, EQT Private Capital Asia's BPEA Private Equity Fund IX will be one of the biggest-ever pools of private equity in the region. However, the actual size of the fund will be based on the outcome of the fundraising process, DealStreetAsia reported.
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