AMERICAS
Lumentum, a holding company that supplies optical and photonic products, agreed to acquire Coherent, a global company that manufactures and sells a variety of laser- based photonic products, for $5.7bn. The transaction is expected to close in the second half of calendar year 2021, subject to approval by Lumentum's and Coherent's stockholders, receipt of regulatory approvals and other customary closing conditions.
"As we look ahead, we are thrilled to join forces with Coherent to create one of the world's largest and most diverse photonics technology companies with leading positions in the growing market for photonics. Coherent brings one of the most recognizable and respected brands in the photonics industry and a very talented and innovative team. By increasing our scale, expanding our portfolio, and bolstering our R&D capabilities at a time when global markets are increasingly relying on photonics products and technologies, we are confident in our combined ability to pursue exciting new growth opportunities," Alan Lowe, Lumentum President and CEO.
Lumentum is advised by Deutsche Bank, Wilson Sonsini Goodrich & Rosati and Joele Frank. Debt financing is provided by Deutsche Bank. Coherent is advised by Bank of America Merrill Lynch and Skadden Arps Slate Meagher & Flom.
Cisco's purchase of Acacia Communications, a company that designs, develops, manufactures, and markets communication equipment, has been approved by China’s antitrust regulator on condition that the companies ensure fair competition, Reuters reported.
The State Administration for Market Regulation said the Acacia acquisition could proceed provided the companies continue to service existing contracts in China and continue to supply customers in China “in accordance with the principles of fairness, reasonableness, and non-discrimination”.
Acacia is advised by Goldman Sachs and WilmerHale. Cisco is advised by Morgan Stanley, RBC Capital Markets, and Fenwick & West. Financial advisors are advised by White & Case.
Kingswood Capital, a private equity firm, completed the acquisition of Cost Plus World Market, a chain of specialty/import retail stores, from Bed Bath & Beyond, an American chain of domestic merchandise retail stores. Financial terms were not disclosed.
"The completion of this transaction marks the conclusion of our work to streamline our portfolio. These efforts will help fund our transformation and put us in the position to start fiscal 2021 with a more cohesive set of core businesses in Home, Baby, Beauty & Wellness. We remain committed to driving sales and margin growth, generating cash and investing in our business plan to drive shareholder value," Mark Tritton, Bed Bath & Beyond President and CEO.
Kingswood Capital was advised by Goodwin Procter. Debt financing was provided by Wells Fargo Securities, Callodine Commercial and Bank of America Merrill Lynch. Bed Bath & Beyond was advised by B. Riley FBR and Bryan Cave Leighton Paisner.
Citrix, a company that designs, develops, and markets technology solutions that allow applications to be delivered, supported, and shared on-demand, agreed to acquire Wrike, a collaborative work management platform, for $2.3bn. The transaction is expected to close in the first half of 2021, subject to regulatory approvals and other customary closing conditions.
“Work today is happening everywhere – at home, in the office and on the road. We believe that in the future, success will go to those companies that can support flexible and hybrid work models and provide a consistent, secure and efficient experience that removes the complexity and noise from work so employees can focus and perform at their best, wherever they happen to be. Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location," David Henshall, Citrix President and CEO.
Citrix is advised by JP Morgan, Joele Frank and Shearman & Sterling. Wrike is advised by Goldman Sachs and Kirkland & Ellis.
Altamont Capital Partners, a private equity firm focused primarily on making long term, control investments in middle market businesses, completed the investment in Kinetic Advantage, a newly-formed auto floorplan financing company. Financial terms were not disclosed.
"We were impressed by the vision that Marty and his team discussed in our initial dialogue and are thrilled to partner with Kinetic. We have deep familiarity with floorplan financing through our prior investment activity and current portfolio, and recognize the clear market need for a true partner to dealers that will provide transparent pricing, a hassle-free collateral audit process and technology solutions that deliver a more streamlined experience," Keoni Schwartz, Altamont Managing Director.
Altamont Capital was advised by Morrison & Foerster and Joele Frank. Financing was provided by MidCap Financial Services. Kinetic Advantage was advised by Stephens and Ropes & Gray.
Sycamore Partners, a private equity firm, agreed to acquire Azamara Brand, a cruise ship fleet operator, from Royal Caribbean Group, a global cruise vacation company, for $201m.
"Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period. Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore's track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years," Richard D. Fain, Royal Caribbean Group Chairman and Chief Executive Officer.
Royal Caribbean Group is advised by Perella Weinberg Partners and Freshfields Bruckhaus Deringer. Sycamore Partners is advised by Kirkland & Ellis and Joele Frank.
General Atlantic, a global growth equity firm, agreed to acquire a majority stake in CareMetx, a technology-enabled hub services company improving patient access to specialty medications. The Vistria Group, a Chicago-based private investment firm and existing majority shareholder in CareMetx, will maintain a significant stake in CareMetx. Financial terms were not disclosed.
“CareMetx is a disruptor in pharma commercialization services, differentiated by its focus on leveraging technology and grounded in its commitment to helping patients. CareMetx plays a critical role to ensure specialty therapeutics effectively reach the patients who need them, and we look forward to working with Mark and the CareMetx team to further accelerate the Company’s growth," Justin Sunshine, General Atlantic Managing Director.
CareMetx is advised by Robert W Baird and North Point Advisors. The Vistria Group is advised by Res Publica Group.
Thermo Fisher Scientific, a manufacturer of scientific instruments, consumables, and chemicals, agreed to acquire Mesa Biotech, a biotechnology company, for $450m. The transaction is expected to be completed in the first quarter of 2021, subject to customary closing conditions, including regulatory approval.
"Mesa Biotech's innovative platform will enable us to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care. Since the start of the pandemic, Thermo Fisher has acted quickly to provide support to the scientists and healthcare professionals at the frontlines of combating Covid-19. The addition of Mesa Biotech's easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for Covid-related testing while we work to rapidly scale and develop point-of care tests for other infectious diseases in the future," Mark Stevenson, Thermo Fisher Scientific Executive Vice President and COO.
Thermo Fisher Scientific is advised by Joele Frank and Wachtell Lipton Rosen & Katz.
Illinois Tool Works, a designer and manufacturer of fasteners, components, equipment, consumable systems, and a variety of specialty products and equipment, agreed to acquire MTS test & simulation business from Amphenol, a provider of electrical, electronic and fiber optic connectors. Amphenol’s acquisition of MTS is expected to close by the middle of 2021, subject to certain regulatory approvals, approval from MTS’s shareholders and other customary closing conditions. Financial terms were not disclosed
“MTS’s Test & Simulation business is highly complementary to our existing Test & Measurement and Electronics business and positions us in new and attractive industry verticals. This acquisition continues our strategy of driving solid growth and best-in-class returns in businesses where highly innovative, customer-focused solutions are required. We look forward to welcoming the MTS Test & Simulation team to ITW," E. Scott Santi, ITW Chairman and CEO.
ITW is advised by Goldman Sachs. Amphenol is advised by Centerview Partners.
Pantheon Resources, a listed oil and gas exploration and production firm, agreed to acquire the remaining 10% of Talitha Unit, an energy project, from Otto Energy, an Australia-based company, which is engaged in investment in oil and gas exploration. Financial terms were not disclosed.
"We will now have a 100% working interest in the Talitha Unit at the same time we are drilling ahead with the Talitha #A well. Following completion of this transaction, Pantheon will have a 100% working interest in all of its Alaska North Slope projects. Otto was a good partner and we welcome them as a shareholder where they can continue to enjoy exposure to the Talitha project as well as to the remainder of our Alaska North Slope portfolio," Jay Cheatham, Pantheon Resources CEO.
Pantheon Resources is advised by Canaccord Genuity and Blytheweigh.
ODP rejected bigger-rival Staples' more than $2bn takeover offer and instead proposed merging only the consumer-focused retail operations of the two office supplies companies to avoid regulatory scrutiny.
Staples' earlier attempts at combining the companies, in 1996 and 2016, were foiled as antitrust enforcers deemed the deal would mean higher stationery prices and reduced competition for nationwide contracts for office supplies.
"We believe the regulatory risk of pursuing a retail-only transaction to be significantly lower than your proposed transaction," Joseph Vassalluzzo, ODP chairman.
USR Parent is advised by Gladstone Place Partners.
BV Investment Partners, a middle-market private equity firm, completed the investment in PixelMEDIA, a digital commerce agency. Financial terms were not disclosed.
"Digital commerce continues to garner a greater share of B2C and B2B spend, correspondingly driving demand from brands for scalable enterprise-grade ecommerce software and related expertise. Pixel stood out for its domain expertise, unique partnership approach with brands, reputation, scale, and strong management team. Erik and Thomas have established Pixel as a leader in this market, delivering value to its customers in a critical and growing part of their businesses. We're excited to work with the Pixel team and continue to build and grow the business in the years to come," Matthew Kinsey, BV Senior Managing Director.
BV Investment Partners was advised by Chris Tofalli.
Philips, a provider of health technology equipment, agreed to acquire Capsule Technologies, a provider of medical device integration and non-critical care patient monitoring solutions, for $635m.
“Integrated patient care management solutions supported by essential real-time patient data and AI are core to our strategy to improve patient outcomes and care provider productivity by seamlessly connecting care. The acquisition of Capsule will further expand our patient care management offering. We look forward to integrating our strengths, adding a vendor-neutral medical device integration platform that further unlocks the power of medical device data to enhance patient monitoring and management, improve collaboration and streamline workflows in the ICU, as well as other care settings in the hospital and beyond its walls," Roy Jakobs, Philips Chief Business Leader Connected Care.
Nuveen, a global investment manager with over $1trn of assets under management, agreed to acquire Glennmont Partners, a Europe’s renewable energy fund manager. The transaction is expected to close during the first quarter of 2021, subject to regulatory approval and other customary closing conditions. Financial terms were not disclosed.
“Glennmont has a proven track record of investment excellence in one of the most dynamic and fastest growing infrastructure sectors. The Glennmont team also shares our values and our unwavering commitment to helping investors meet their long-term goals,” Jose Minaya, Nuveen CEO.
Intel chairman considers creating a $1bn health-tech SPAC IPO.
Intel Chairman Omar Ishrak is planning to raise funds for a blank-check firm targeting deals in the health technology sector, Bloomberg reported.
Ishrak, who previously ran medical device giant Medtronic, could file public registration documents with the US SEC. Ishrak is targeting to raise about $750m to $1bn for the SPAC.
Goldman Sachs is leading preparations for the IPO. Hedge fund manager Joshua Fink, the son of BlackRock's Larry Fink, and Medtronic executive Jean Nehme will have senior roles at the blank-check company. Ishrak is poised to be chairman.
Fullerton Health picks Bank of America for sale.
Fullerton Healthcare, a Singaporean medical services provider, has chosen Bank of America to advise it on a sale as the coronavirus pandemic drives increasing interest in health care companies, Bloomberg reported.
The potential sale would not include Fullerton Health's operations in Australia. The owners of the medical chain, including SIN Capital Group, a Singaporean private equity firm, are reviving the previously stalled sale because the pandemic has helped boost Fullerton Health's business.
The company's annualized earnings before interest, taxes, depreciation, and amortization for 2020 were about S$149m ($112m). The sale process could begin as soon as this quarter.
Birkenstock considers sale to CVC Capital Partners. (FS)
Birkenstock, the family-owned German company, is exploring a sale to private equity group CVC in a deal that may value it at more than €4bn ($4.82bn), including debt. Permira, a buyout group, and at least one other private equity group have also expressed interest in buying Birkenstock.
The company, which traces its roots to 1774, has been exploring a sale for months with the help of bankers at Goldman Sachs, FT reported. After initially seeking interest from rivals in the industry, it has turned to private equity bidders.
Roark Capital raised $5bn for New Flagship Fund. (FS)
Roark Capital Group, a midmarket private-equity firm, is raising its sixth flagship fund after closing a new restaurant-focused fund on nearly $1.4bn last year, WSJ reported.
The Atlanta-based firm has set a fundraising target of $5bn for the new fund. That would make the fund the same size as its predecessor, Roark Capital Partners V, which closed on its upper limit of $5bn in 2018. At that time, the firm also raised a separate $1.5bn fund to invest alongside its fifth flagship fund.
Tiger Global raised $3.75bn for a new venture fund. (FS)
Tiger Global Management, the New York-based private equity fund, is raising a new $3.75bn venture fund called Tiger Private Investment Partners XIV that it expects to close in March.
The fund is Tiger Global's thirteenth venture fund, despite its title - the partners might be superstitious - and it comes hot on the heels of the firm's twelfth venture fund, closed exactly a year ago, also with $3.75bn in capital commitments.
EMEA
MGM Resorts International, a casino operator, does not intend to submit a revised proposal for Entain, a British sports betting and gambling company, which rejected $11bn approach earlier this month for being too low.
MGM is committed to being a premier global omni-channel gaming and entertainment company, and will maintain a disciplined framework while evaluating a range of compelling strategic opportunities.
MGM Resorts was advised by PJT Partners. Entain was advised by Deutsche Bank, Morgan Stanley and Powerscourt.
SoftBank Group and Hughes Network Systems, a satellite and multi-transport technologies and networks provider, completed the $400m investment in OneWeb, the low Earth orbit satellite communications company.
"We are delighted to welcome the investment from SoftBank and Hughes. Both are deeply familiar with our business, share our vision for the future, and their commitment allows us to capitalise on the significant growth opportunity ahead for OneWeb. We gain from their experience and capabilities, as we deliver a unique LEO network for the world," Sunil Bharti Mittal, OneWeb Executive Chairman.
OneWeb was advised by Herbert Smith Freehills.
Chausson Matériaux, a major building materials distribution company, agreed to acquire Bois & Matériaux, a French building products distributor, from OpenGate Capital, a global private equity firm. Financial terms were not disclosed.
“This agreement marks an important juncture in the evolution of B&M and sets up the business for a new phase of growth. It has been great to work with the team at B&M and CEO Yves Martin, and I look forward to witnessing the continued momentum under Chausson’s ownership,” Andrew Nikou, OpenGate Founder and CEO.
OpenGate Capital is advised by Prosek Partners.
Zambia Consolidated Copper Mines Investments, a provider of premier diversified mining investments and operations, agreed to acquire a 90% stake in Mopani Copper Mines, a Zambian copper mine company, from Glencore-backed Carlisa Investments fro $1.5bn.
Completion of the sale is conditional on receipt of certain regulatory approvals in Zambia and on the approval of the shareholders and board of directors of ZCCM, and is expected to occur within the next three months
Guy Hands, a private investor, agreed to acquire housebuilding division from Kier, a provider of construction services, for $149m.
"Kier Living is a strong business but has limited operational synergies with other parts of the group. There is a new management team in place who have reorganised the business into a smaller more cash-focused operation," Kier.
Investcorp, a provider of investment services, agreed to acquire Unilog, a company that offers information technology consulting, engineering, training, and systems integration services. Financial terms were not disclosed.
“Unilog presents an attractive opportunity, as there is a growing market for e-commerce, with Covid-19 accelerating the pace of digital adoption. Unilog has a proven management team that has demonstrated strong business fundamentals and is therefore, well-positioned to benefit from this megatrend. Investcorp has rich experience of investing in the B2B digital commerce software sector, with professionals that bring over 15 years of combined institutional knowledge in the segment. We look forward to supporting the company in its growth and expansion journey," Mohamed Al Sada, Investcorp Head of Bahrain and Kuwait.
Canopius plans £2bn London float.
Canopius Group, one of Lloyd's of London's largest insurers, is considering a flotation on the London Stock Exchange that could value it at more than £2bn ($2.71bn).
Canopius has approached investment banks about working on an IPO that could take place in the coming months, Sky News reported.
Canopius insures risks in areas such as cybersecurity, marine cargo, fine art, and heavy industry and has grown over 20 years to become Lloyd's fourth-largest insurer.
Allfunds plans IPO on Euronext Amsterdam.
Allfunds, Madrid-based financial services firm, plans to list its shares on Euronext Amsterdam in an initial public offering that would value the firm at between €6-7bn ($7.3-8.5bn), Reuters reported.
Allfunds is jointly owned by private equity fund Hellman & Friedman, Singapore’s sovereign fund GIC and BNP Paribas, a French bank, and Credit Suisse, a Swiss bank.
The firm, which provides supporting services to mutual funds around the world, aims to carry out the IPO in the second quarter.
Claret Capital Partners held the first closure of Fund III. (FS)
Claret Capital Partners, a European investment fund, held the first closing of their third fund. Fund III will continue to invest in innovative growth-stage tech and life science businesses throughout Europe to support organic growth and M&A.
"We are proud to announce our third Fund, after what has been a challenging year for everyone. We intend to continue to support European growth businesses and appreciate the continued confidence of our investors," Johan Kampe, Claret Capital Managing Partner.
APAC
Navis Capital Partners, a private equity firm, completed the investment in Moneythor, a financial technology company developing banking software components designed to provide better digital banking. Financial terms were not disclosed.
“This significant investment is a testimony of the international success of our solution in helping financial institutions enhance their digital banking services to make them more personalised and contextual for their customers. It is also an acknowledgement of the ongoing growth of the market fuelled by new regulations such as Open Banking and new digital & virtual bank licenses globally," Olivier Berthier, Moneythor CEO and Co-Founder.
Navis Capital Partners was advised by PricewaterhouseCoopers and Ashurst.
Ipsos, a market research company, completed the acquisition of Fistnet, a medical platform that provides health checking, heath care, medical information releasing, and other services. Financial terms were not disclosed.
“We are happy to become part of the Ipsos family, which we already know and love. With Ipsos, we will create incremental value for clients by combining the experience and footprint of Ipsos with Dotmetrics’ expertise," Tomislav Fistric, Fistnet CEO.
Godrej Fund raised $250m for its new vehicle. (FS)
Godrej Fund Management, the Singapore-based real estate private equity arm of the Godrej Group, has reached the first close of its second closed-end office development at $250m.
Netherlands-based APG Asset Management is the cornerstone investor in the $500m fund that will develop Class-A office assets across India. The Godrej Group, the Indian conglomerate headquartered in Mumbai, has put in $50m into the fund called Godrej Build to Core II. The previously raised funds, GBTC I $450m and Godrej Office Fund I $150m, have been fully invested.
Kuaishou Hong Kong IPO could value the firm at about $60bn. (FS)
Kuaishou, a Chinese online short video company, will open the books for its Hong Kong IPO next Monday to raise at least $5bn in a deal that could value the company at about $60bn, Reuters reported.
Analysts from the investment banks working on the deal started briefing potential investors on Monday as part of the pre-marketing roadshow. Kuaishou has aimed for a market capitalization of more than $50bn since it began preparing for a public markets deal.
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