AMERICAS
CPPIB, a global investment management organization, completed the acquisition of Pattern Energy, a publicly-traded renewable energy company, for $6.1bn. Under the terms of the merger agreement, Pattern Energy shareholders received $26.75 in cash consideration for each share of Pattern Energy, representing a premium of approximately 14.8% to Pattern Energy's closing share price on August 9, 2019.
"This agreement with CPPIB and Riverstone provides certain and significant value for Pattern Energy shareholders with an all-cash transaction at a very attractive stock price. Over the years, Pattern Energy has been able to provide shareholders with a consistent dividend and now our shareholders can realize the value embedded in the company. We believe the proposed transaction reflects the strength of the platform we have built," Mike Garland, Pattern Energy CEO.
Pattern Energy was advised by Evercore, Goldman Sachs, Blake Cassels & Graydon, Paul Weiss Rifkind Wharton & Garrison, Gibson Dunn & Crutcher, Joele Frank and LodeRock Advisors. CPPIB was advised by Bank of America Merrill Lynch, Shearman & Sterling and Finsbury. Riverstone was advised by Sullivan & Cromwell and Kekst CNC. Debt financing was provided by BMO Capital Markets, Citigroup and RBC Capital Markets.
Cleveland-Cliffs, an independent iron ore mining company, completed the acquisition of AK Steel Holding, a producer of flat-rolled carbon, stainless and electrical steel products, for $3bn.
"This is a new era for Cleveland-Cliffs as a producer of differentiated, high quality iron ore, metallics and steel in North America. The new Cliffs will begin from a unique position of strength in our industry, with a dynamic combination of assets including two efficient integrated blast furnace steel mills, two electric arc furnace plants, a new state-of-the-art HBI plant and several other highly technologically developed facilities. We will be catering to a desirable customer base and primarily doing business in the United States, the most resilient manufacturing economy in the world," Lourenco Goncalves, Cleveland-Cliffs Chairman, President and CEO.
AK Steel was advised by Goldman Sachs and Weil Gotshal and Manges. Cleveland-Cliffs was advised by Credit Suisse, Moelis & Co, Jones Day and Squire Patton Boggs. Credit Suisse was advised by Alston & Bird. Debt financing was provided by Credit Suisse.
Monomoy Capital Partners, a private investment firm with $1.6bn in committed capital, completed the acquisition of Mac Papers, a distributor of paper, packaging, wide format and envelope products. Financial terms were not disclosed.
"Mac Papers is a proven, highly-regarded supplier to a diverse customer base, a true partner with its suppliers and is well-positioned for continued success in the future. Monomoy is excited to collaborate with the Mac Papers team to drive long-term value for the company's customers, suppliers and employees," Stephen Presser, Monomoy Co-Founder and Partner.
Mac Papers was advised by Mesirow Financial and Rogers Towers. Monomoy Capital was advised by Alvarez & Marsal, JLL Corporate Finance, Kirkland & Ellis and Sloane & Company. Debt financing was provided by Bank of America Merrill Lynch.
Science Applications International, an American company that provides government services and information technology support, completed the acquisition of the US federal business of Unisys, an American global information technology company, for $1.2bn. The acquired unit is a provider of infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service through scalable and repeatable solutions to US federal civilian agencies and the Department of Defense.
"With the addition of Unisys Federal, SAIC will be a leading provider of digital transformation services and solutions to the federal government. This exciting opportunity advances our strategy by building on our modernization capabilities, increasing customer access, accelerating growth and enhancing shareholder value. The financial benefits of acquiring Unisys Federal are compelling, including accretion of adjusted EBITDA margins, non-GAAP earnings per share, and cash generation," Nazzic Keene, SAIC CEO.
SAIC was advised by The Avascent Group, Citigroup, Guggenheim Partners and King & Spalding. Unisys was advised by Centerview Partners and Sullivan & Cromwell.
ADVANZ PHARMA, a global pharmaceutical company, agreed to acquire Correvio Pharma, a specialty pharmaceutical company focused on commercializing hospital drugs, for $76m. In connection with the transaction and subject to closing, Correvio will apply to have its shares delisted from the TSX and Nasdaq and will cease to be a reporting issuer under Canadian securities law.
"Correvio's highly experienced European commercial team provides us with a direct commercial presence in France, Germany, Spain, Italy and the Benelux region, while further strengthening our existing presence in the Nordics and the United Kingdom. Correvio's niche portfolio, consisting of an established brand, and two growing, patent-protected brands, plus a pipeline of potential product launches, are highly complementary to our current priorities and future focus. This is a transformative transaction that we are very excited about, creating what we believe is a leading global platform with advanced commercial capabilities in Western Europe, which should enable us to access further portfolio opportunities going forward," Graeme Duncan, ADVANZ PHARMA CEO.
ADVANZ PHARMA is advised by PJT Partners, Fasken Martineau DuMoulin and White & Case. Correvio is advised by Piper Sandler, Blake Cassels & Graydon, Skadden Arps Slate Meagher & Flom and Argot Partners.
New Mountain-backed MAG Aerospace, an American-owned military contractor, agreed to acquire AASKI Technology, which offers communication engineering, intelligence analysis, investigation, litigation, and business systems services. Financial terms were not disclosed.
"When considering all our options, the one that stood out the most is the fastest-growing company serving the Department of Defense, MAG Aerospace, and the outstanding support that they provide to the Warfighter. It is an honour to join such an exceptional company," Bharat Parikh, AASKI CEO.
AASKI is advised by Robert W Baird and Holland & Knight. MAG Aerospace is advised by Cooley and Ropes & Gray.
BigRentz, an equipment rental network, agreed to acquire Lizzy Lift, a nationwide and international provider of construction equipment rental services. Financial terms were not disclosed.
“Our goal has always been to make heavy equipment rentals easier for our clients by leveraging technology and automation. BigRentz has the technology infrastructure that completely automates the equipment rental workflow and the user interface that makes it easier for clients to not just book rentals, but also invoice management and equipment logistics. It’s a win-win for our customers and BigRentz,” Jennifer DuBose-Lombard, Lizzy Lift Co-Owner and Senior Vice President.
BigRentz is advised by Ray Public Relations.
Mirae Asset Global Investments led a $500m Series F funding round for Impossible Foods, a company that develops plant-based substitutes for meat products, with participation from existing investors including Khosla Ventures, Horizons Ventures, and Temasek.
"Our mission is to replace the world's most destructive technology -- the use of animals in food production -- by 2035. To do that, we need to double production every year, on average, for 15 years and double down on research and innovation. The market has its ups and downs, but the global demand for food is always there, and the urgency of our mission only grows. Our investors not only believe in our mission, but they also recognize an extraordinary opportunity to invest in the platform that will transform the global food system," Patrick O. Brown, Impossible Foods Founder and CEO.
Huntsman, an American multinational manufacturer and marketer of chemical products, agreed to acquire CVC Thermoset Specialties, a North American speciality chemical manufacturer serving the industrial composites, adhesives and coatings markets, for $300m.
"This bolt-on fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve significant synergies within two years," Peter Huntsman, Huntsman Chairman, President and CEO.
Lansing Building Products, a provider of building products and materials, agreed to acquire the distribution business of Harvey Building Products, a distributor of exterior building products and a manufacturer of windows and doors, from Dunes Point Capital. Simultaneously, Lansing entered into a definitive agreement to sell a majority interest to Markel. Financial terms were not disclosed.
"This partnership places us in a powerful position of strength to lead the building products industry and to set a new bar of what it means to deliver a best-in-class experience for our associates and customers," Jim Barreira, Harvey Building Products Chairman.
Arthur J. Gallagher, a global insurance brokerage, risk management and consulting services firm, completed the acquisition of McConnell, Manit & Trout Insurance Services, a full-service property/casualty broker with a focus on serving the building materials, energy, waste, construction and transportation industries. Financial terms were not disclosed.
"MMT will deepen our expertise in several key industries and brings us significant growth opportunities. The team is also a great cultural fit. I am delighted to welcome Rick, Mike, Doug and their associates to our growing global enterprise," J. Patrick Gallagher, Arthur J. Gallagher Chairman, President and CEO.
Destination Pet, a pet health care and services company, agreed to acquire VitalPet, an operator of veterinary hospitals. Financial terms were not disclosed.
"VitalPet aligns nicely with our commitment to provide the most comprehensive care to today's pets. This acquisition is a significant step in our growth strategy and highlights our commitment to delivering high-quality care and integrated extending services focused on the total health and wellbeing of the pet," Shane Kelly, Destination Pet CEO.
EMEA
Reuters reported that London Stock Exchange Group gained approval from the US Committee on Foreign Investment for its $27bn takeover of analytics firm Refinitiv, judging there were no national security concerns with the deal.
LSEG said it remained committed to closing the deal during the second half of 2020.
Refinitiv is advised by Canson Capital Partners, Jefferies & Company, Evercore, Corrs Chambers Westgarth, Osler Hoskin & Harcourt, Simpson Thacher & Bartlett and Eterna Partners. LSEG is advised by RBC Capital Markets, Oliver Wyman, Barclays, Goldman Sachs, Morgan Stanley, Robey Warshaw, Blake Cassels & Graydon, Freshfields Bruckhaus Deringer, Herbert Smith Freehills and Teneo. CPPIB is advised by Weil Gotshal and Manges. Thomson Reuters is advised by Allen & Overy.
Hellman & Friedman agreed to acquire a majority stake in Checkmarx, a provider of software security solutions for DevOps, from Insight Partners for $1.2bn.
“As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical. Only one company – Checkmarx – has the breadth of products, developer-centric DNA, and culture of relentless innovation to serve the entire software security market. We look forward to building on Checkmarx’s tremendous success to date and supporting the company’s rapid growth in the years ahead,” Tarim Wasim, Hellman & Friedman Partner.
Checkmarx is advised by Evercore, Herzog Fox & Neeman and InkHouse. Hellman & Friedman is advised by RBC Capital Markets, Simpson Thacher & Bartlett and Stifel. Insight Partners is advised by Willkie Farr & Gallagher.
CDH Investments, a major Chinese alternative asset management firm, completed the investment in WOW Tech Group, a company in the premium intimate health and sensual wellness products industry. Financial terms were not disclosed.
"For years, WOW Tech has worked intensively to earn the loyalty of consumers and build strong, reliable relationships with retailer partners worldwide. With CDH, we found an investor that is also committed to continuing that path of striving for excellence in our products and services. CDH's network and experience in Asia Pacific will be very welcome as we take our brands to new markets," Johannes von Plettenberg, WOW Tech Group CEO.
WOW Tech Group was advised by CMS. CDH Investments was advised by Latham & Watkins.
Bel Group, a multinational cheese marketer, agreed to acquire an 80% stake in All in Foods, a French startup that produces a range of vegan speciality for all the applications. Financial terms were not disclosed.
"The Bel Group has enhanced its entry into the plant-based era and confirms its strong ambitions. We continue to diversify our product offering to meet new consumer expectations, and we are guided by our mission to champion healthier and responsible food for all. We believe in the excellence and potential that All in Foods has to offer, to meet the challenge for more sustainable food," Antoine Fievet, Bel Group Chairman and CEO.
All in Foods is advised by Rothschild & Co. Bel Group is advised by Burson Cohn & Wolfe.
Riskonnect, a provider of integrated risk management solutions, completed the acquisition of Xactium, a UK-based GRC software provider. Financial terms were not disclosed.
"Today's enterprise risk landscape is dominated by uncertainty, complexity, and change. Staying ahead requires a robust combination of expertise, intelligence, and technology. Xactium delivers on all three fronts. Adding Xactium's deep industry experience, talented team, and innovative solutions to our GRC offerings will empower our customers to elevate and transform the way they manage risk and compliance and create value. We're thrilled to welcome the entire company and customers to Riskonnect," Jim Wetekamp, Riskonnect CEO.
Riskonnect was advised by Corporate Ink.
State Grid Corporation of China, the state-owned electric utility monopoly of China, completed the acquisition of a 49% stake in Oman Electricity Transmission Company, the power distribution grid in the Gulf nation of Oman, for $1bn.
Through advanced power transmission technologies, management experience and strong brand, SGCC seeks to fulfil its social responsibilities to accomplish with better results. In its approach to international stock assets acquisition in the overseas power and energy sector, greenfield development projects and asset operation management, SGCC follows the principles of equality and mutual growth.
Air Liquide seeks coronavirus premium for hand sanitizer unit sale. (FS)
FT reported that French industrials group Air Liquide is selling its Schülke unit, whose products range from the alcohol-based hand rubs that have become a hot commodity since the coronavirus outbreak started, to hospital disinfectants and industrial cleaning products.
The company is asking would-be buyers to offer a higher sum than it first envisaged when the sale process began last year. When the division was first put on sale in the autumn — part of a move by Air Liquide to focus on its core industrial gases business — it had initially been expected to fetch about €1bn ($1.1bn).
Bidders are due to submit offers for Schülke next week. Buyout groups including EQT Partners, PAI Partners and Ardian are said to be considering bids, as is rival hand sanitizer producer Ecolab.
Salzgitter does not consider tie-ups with Thyssenkrupp.
German steelmaker Salzgitter is not discussing any partial or full merger scenarios with larger peer Thyssenkrupp, its CEO said, adding the group remained open to the idea of consolidation if it makes sense.
Steelmakers in Europe have been roiled by cheap Chinese imports that have hit prices, margins and profits, raising pressure to cut capacity and costs in a bid to remain afloat.
“From my point of view consolidation is not a particularly great vision to create a new company,” Heinz Joerg Fuhrmann, Salzgitter CEO.
Italy to take full control of Alitalia.
The Italian government is close to taking full control of Alitalia, as the coronavirus outbreak in Europe was forcing it to abandon plans to find a buyer for the ailing national carrier, Reuters reported.
According to the plan, the government would take control of both Alitalia’s aviation and land operations through a public vehicle.
Forex firm Global Exchange weighs bid for International Currency Exchange.
Global Exchange Group, a Spanish closely held foreign exchange business, is considering buying UK rival International Currency Exchange, Bloomberg reported.
Global Exchange is working with a financial adviser and seeking financing to acquire London-based ICE. The deal could be valued at about $150m to $200m.
Buyout firms bid for Walmart’s Asda. (FS)
Walmart is proceeding with the planned sale of UK supermarket chain Asda after attracting initial bids from three buyout firms, even as tightening credit threatens to hamper debt-fueled dealmaking, Bloomberg reported.
Apollo Global Management, Lone Star Funds and TDR Capital each submitted first-round offers for Asda and have been invited to join the next round of bidding. A deal could value the business at more than $8.6bn.
European private equity firms take steps to prevent сash сrunch. (FS)
European private equity firms are preparing their portfolios for a potential liquidity crunch as the impact of the coronavirus roils markets and threatens global growth, Bloomberg reported.
EQT and Permira have urged some companies they own to draw down credit facilities to prevent shortfalls of working capital if economic prospects worsen. CVC Capital Partners is also discussing the potential of tapping unused credit lines for certain firms in the future.
APAC
Australia's Healius, a diagnostic imaging centres company, turned down the $1.3bn takeover offer from private equity firm Partners Group, saying it undervalued the medical centre operator. Healius, however, said it was open to further talks with Partners Group to get a better proposal from the Swiss firm.
"We recognize the extreme volatility in the share market at present and the pressure our shareholders are under to deliver returns to their clients," Rob Hubbard, Healius Chairman.
Healius is advised by UBS and King & Wood Mallesons.
Vietnam-focused Penm Partners blames coronavirus for delay of the close of the fifth fund. (FS)
Vietnam-focused private equity firm Penm Partners expects slow-going for its fifth fund as the global economy reels from the effects of the new coronavirus. The Danish firm hopes to raise about $150m for its PENM V fund - the same amount as its previous investment vehicle.
"We were supposed to raise the fund by mid this year. But the coronavirus has caused a lot of uncertainties. So the end of this year or early next year would be more realistic. In Europe, China and Vietnam, investors are putting on hold to see how it will play out," Hans Christian Jacobsen, Penm Managing Partner.
JD.com hires banks for a Hong Kong listing.
E-commerce firm JD.com hired Bank of America and UBS to work on a second listing in Hong Kong, joining a queue of US-listed Chinese firms with plans to follow Alibaba Group Holding in trading closer to home, Reuters reported.
The listing could happen as early as mid-2020.
|
