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AMERICAS
Years before she became the chair of the US Federal Trade Commission, Lina Khan lamented a lack of competition in candy.
Her views gain new relevance now that she leads the agency that’s expected to take a tough look at whether Mars should be allowed to buy Cheez-It maker Kellanova for nearly $36bn, the largest packaged food deal in years, Bloomberg reported.
Kellanova is advised by Goldman Sachs, Lazard, Kirkland & Ellis (led by Eric Schiele, Allison Wein), Sullivan & Cromwell (led by Stephen M. Kotran) and Brunswick Group (led by Matt Dowe). Mars is advised by Citigroup, Simpson Thacher & Bartlett, Skadden Arps Slate Meagher & Flom (led by Howard Ellin) and FGS Global (led by Kal Goldberg). Debt financing is provided by JP Morgan and Citigroup. Debt providers are advised by Cravath Swaine & Moore. W.K. Kellogg Foundation Trust is advised by Cleary Gottlieb Steen & Hamilton (led by John Kupiec and Kyle Harris).
ONEOK, a midstream service provider, agreed to acquire a 43% stake in EnLink Midstream, an independent midstream energy services company, from GIP, a private equity firm, for $3.3bn.
"ONEOK has a longstanding reputation as being intentional in building a premier energy infrastructure company, and today's transactions further solidify that status by adding complementary assets that allow us to continue expanding and extending our value chain," Pierce H. Norton II, ONEOK President and CEO.
ONEOK is advised by TPH&Co, Goldman Sachs, JP Morgan, Perella Weinberg Partners, and Kirkland & Ellis. GIP is advised by Greenhill & Co, Scotiabank, Latham & Watkins.
ONEOK, a midstream service provider, agreed to acquire Medallion Midstream, a privately held crude gathering and transportation system, from GIP, a private equity, for $2.6bn.
"ONEOK has a longstanding reputation as being intentional in building a premier energy infrastructure company, and today's transactions further solidify that status by adding complementary assets that allow us to continue expanding and extending our value chain," Pierce H. Norton II, ONEOK President and CEO.
ONEOK is advised by Bank of America, Goldman Sachs, JP Morgan, and Kirkland & Ellis. GIP is advised by RBC Capital Markets, Santander, and Vinson & Elkins.
Marathon Oil shareholders approved the US oil producer's nearly $22.5bn acquisition by ConocoPhillips.
Marathon Oil and ConocoPhillips expect the purchase, which is undergoing a Federal Trade Commission review, to close late in the fourth quarter of 2024.
Bridgewater Bank, a Canadian Schedule l chartered bank, agreed to acquire First Minnetonka City Bank, a bank. Financial terms were not disclosed.
“We are very pleased to add a high quality and complementary Twin Cities community bank through a transaction that aligns with and accelerates our strategic priorities. First Minnetonka City Bank brings a granular core deposit base that creates balance sheet optionality and a loan mix that increases the diversification of our loan portfolio. In addition, the bank’s investment advisory platform will allow us to offer a more complete product set to our client base," Jerry Baack, Bridgewater Chairman and Chief Executive Officer.
Bridgewater Bank is advised by D.A. Davidson & Co and Barack Ferrazzano Kirschbaum & Nagelberg. First Minnetonka City Bank is advised by Olsen Palmer and Winthrop & Weinstine.
Iron Path Capital-backed VION Biosciences, a life science platform company, completed the acquisition of Ansh Labs, a biotechnology company. Financial terms were not disclosed.
"The momentum our team has this year to expand into underserved markets has been tremendous, and it is proof that the diagnostic market is growing and requires the right innovations needed to move science forward. Ansh’s commitment to innovation and quality is a natural fit for VION, and our acquisition of Ansh Labs coupled with our two previous acquisitions collectively give VION the combined resources, capabilities, core competencies, and of course the talents of all VION’s employees to meet the goals of our customers now and into the future," Mark Thornton, VION Biosciences CEO.
Ansh Labs was advised by Persient. VION Biosciences was advised by Kroll and McDermott Will & Emery.
DraftKings, an American gambling company, agreed to acquire Simplebet, a B2B product development company using machine learning and automation to make every moment of every sporting event a betting opportunity. Financial terms were not disclosed.
“Live betting represents an area for potential growth for online sports betting, and the proposed acquisition would allow DraftKings to leverage Simplebet’s proprietary technology to create an in-play wagering experience that moves at the speed of sports,” Corey Gottlieb, DraftKings Chief Product Officer.
DraftKings is advised by Sullivan & Cromwell. Simplebet is advised by Rothschild & Co and Proskauer Rose.
Wynnchurch Capital-backed Alleguard, a construction services company, completed the investment in Harbor Foam, a manufacturer of expanded polystyrene and serves a diverse customer base across the construction, packaging, recreational vehicles, and general industrial end markets. Financial terms were not disclosed.
“We’re thrilled to bring Harbor Foam into the Alleguard Family. Harbor Foam has a strong reputation for its high-quality products and excellent customer service. Ciolino added, “This partnership will enable Alleguard and Habor Foam to better serve our growing Midwest customer base,” Paul Ciolino, Alleguard CEO.
Wynnchurch Capital was advised by Foley & Lardner.
Rochester Midland, a provider of route-based, technical services and specialty chemical products across water treatment, food safety and other verticals, completed the acquisition of Norkem, a water treatment service provider. Financial terms were not disclosed.
"The acquisition of the Norkem Group represents an exciting opportunity to expand our technical service capabilities in Canada, where Rochester Midland already has a strong sales and service presence. We look forward to partnering with the Norkem Group and leveraging our collective capabilities to accelerate growth for the combined business," Jim White, Rochester Midland CEO.
Rochester Midland was advised by Kekst CNC (led by Daniel Yunger).
Parque Arauco, a stylish mall with high-end global brands, department stores, restaurants, cafes & a movie theater, agreed to acquire Grupo Falabella, a shopping mall, and Open Plaza, a mall, for $200m.
“This agreement is important for Parque Arauco because, if completed, it will increase our retail space by approximately 5%, and at that time, we will actively work to capture cost synergies to strengthen the asset's NOI. Our cash position exceeds CLP420bn (approximately $460m), which is more than sufficient to fund this transaction. On the other hand, we have had very solid results recently. In this context, if the deal goes through, we will reschedule some CAPEX investments to accommodate this acquisition. Thus, considering Open Plaza Kennedy's twelve-month NOI, we expect to move from the current financial debt to EBITDA ratio of 5.2 times to a ratio of approximately 6 times, aligned with our target range of 5 to 6 times. Additionally, we will continue pursuing potential sales of minority stakes in mature assets, similar to those we have already executed in Chile and Colombia, to further strengthen our balance sheet,” Eduardo Pérez Marchant, Parque Arauco CEO.
Merritt Properties, a commercial real estate company, completed the acquisition Merritt at Gate Parkway, a five-building industrial park located at 5022 Gate Parkway in Jacksonville. Financial terms were not disclosed.
"With its prime location, we are thrilled to expand our light industrial presence in Jacksonville with the acquisition of Merritt at Gate Parkway, which underscores our ongoing commitment to providing quality industrial spaces in key markets. We are dedicated to enhancing the park's infrastructure to ensure that both current and future tenants benefit from a premier industrial environment," Pat Franklin, Merritt Properties Asset Manager.
Brazil’s Azul eyes options to rework debt amid deal talks.
Brazilian airline Azul is weighing options from an equity offering to a Chapter 11 filing to address approaching debt obligations, Bloomberg reported.
The troubled carrier is also actively working get the merger over the line with Gol Linhas Aereas Inteligentes to convince creditors that a new combined entity would have lower debt levels and better growth prospects. But that approach is seen as less attractive given Azul’s imminent cash needs and weak financial results.
OpenAI in talks to raise funding at over $100bn valuation. (FS)
OpenAI, the startup behind the popular ChatGPT, is reportedly in discussions to raise billions of dollars in a new funding round that could see it valued at above $100bn.
Thrive Capital is leading the round and will invest $1bn. Microsoft is also expected to put in money. The new funding round would be the biggest infusion of outside capital into OpenAI since Microsoft invested around $10bn in January 2023. Since then, an arms race has developed in Silicon Valley to build the most advanced artificial-intelligence systems in an effort to dominate an industry many say will revolutionize the economy.
Earlier this year, OpenAI was valued at a reported $80bn from $29bn the prior year. Annualized revenue reportedly surpassed $2bn earlier this year, WSJ reported.
LS Power closes its oversubscribed fund V at $2.7bn. (FS)
LS Power Group, a development, investment, and operating company focused on the North American power and energy infrastructure sector announced the successful close of its latest fund, LS Power Equity Partners V. Fund V closed in July with total commitments of approximately $2.7bn, exceeding its $2.5bn target.
"Demand for electricity in the United States is growing at the fastest rate in decades, driven by electrification, data center proliferation, and an American manufacturing renaissance. Our portfolio of assets and businesses—which spans generation, transmission, and decarbonization solutions—is designed to ensure the reliability and affordability of electricity while accelerating the energy transition. We look forward to investing this capital to help meet the historic challenges facing the US energy sector," Paul Segal, LS Power CEO.
LS Power was advised by Evercore, Leader Capital Markets, Magenta Capital Services and Willkie Farr & Gallagher.
EMEA
Onex, a private equity firm, completed the acquisition of Farsound, a global supply chain solutions provider for the aerospace engine MRO market, focused on the procurement, supply, and inventory management of high-volume consumable hardware components, from AGIC Capital, a private equity firm. Financial terms were not disclosed.
“The development of our company over the past years has been notable. AGIC has been an excellent partner, supporting our expansion and diversification. We look forward to collaborating with our new equity partner in Onex,” Chris Knott, Farsound CEO.
AGIC Capital was advised by William Blair & Co and K&L Gates.
CVC Capital, a private equity firm, agreed to invest in Fidelio Capital-backed Odevo, a property management services provider. Financial terms were not disclosed.
“For most people, the home is their greatest investment and our services are designed to simplify everyday life for those people, a responsibility we take seriously. Odevo was founded on the principle of combining the power of people and technology and from the start, we have focused on simplifying living by delivering end to end solutions for an industry that traditionally has been slow in innovation. I am incredibly proud of what we have accomplished but am also excited for the untapped potential still out there. Fidelio has been a true partner to us and we look forward to continuing our collaboration, now also welcoming CVC with their global network and vast experience of supporting growing businesses like ours," Daniel Larsson, Odevo CEO.
Security Properties, a property management company, completed the acquisition of SKY Sammamish, an apartment building. Financial terms were not disclosed.
"SKY Sammamish is a prime example of our firm's investment thesis of identifying newer-vintage assets in markets with high barriers to entry and a diverse mix of stable drivers. We feel that we have the best asset in a submarket with a very limited historical supply, excellent schools, and strong demand for high-quality housing. The Issaquah and Sammamish submarket has been a strong performer for us for many years and we are excited to add to our existing portfolio in the area," Alex Gauper, Security Properties Senior Director.
Uber, a multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport, agreed to acquire SoftBank-backed Wayve, a developer of embodied intelligence for autonomous vehicles. Financial terms were not disclosed.
“Wayve is building a 'general purpose' driving Al that can power all levels of driving automation in any type of vehicle, anywhere in the world. I’m excited to be teaming up with Uber, the largest mobility network in the world, to massively ramp up our AI’s fleet learning, ensuring our AV technology is safe and ready for global deployment across Uber’s network. Together, we’re excited to work with Automotive OEMs to bring autonomous driving technologies to consumers sooner,” Alex Kendall, Wayve Co-Founder and CEO.
J Sainsbury, a British supermarket chain operator, agreed to acquire 10 leasehold stores from Homebase, a British home improvement retailer and garden centre, in a £130m ($172m) deal.
"Sainsbury’s food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury’s plan. We have the best combination of value and quality in the market and that’s winning us customers from all our key competitors and driving consistent growth in volume market share. We want to build on this momentum which is why we are growing our supermarket footprint. Our ambition is to be customers’ first choice for food and these new stores will showcase some of the best that Sainsbury’s supermarkets have to offer to even more communities around the country," Simon Roberts, J Sainsbury CEO.
Modella Capital, a specialist retail and consumer investment boutique, completed the acquisition of Hobbycraft, an arts and crafts superstore retail chain operator, from Bridgepoint, a private equity firm. Financial terms were not disclosed.
“We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the group, displaying a real commitment to bricks and mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business," Joseph Price, Modella Capital Managing Director.
Nokia mobile networks assets said to draw Samsung interest.
Nokia’s mobile networks assets are drawing preliminary interest from suitors including Samsung Electronics amid increasing pressure to find new growth in the troubled telecom equipment sector, Bloomberg reported.
The Finnish company has been having discussions with advisers about potential options for its mobile networks business, which has struggled for years to compete with larger rivals like Huawei Technologies. Nokia has considered a number of different scenarios, from selling some or all of the division, to spinning it off or combining with a rival.
Emirates Global Aluminium targets more acquisitions.
The biggest aluminum producer in the Middle East wants more acquisitions to boost growth after making its first two deals this year, Bloomberg reported.
Emirates Global Aluminium is looking to buy more metal-recycling assets as the company sees growing demand for products with a lower environmental impact, CEO Abdulnasser Bin Kalban said in an interview. EGA, which operates its main plants in Abu Dhabi and Dubai, wants to expand in Asia, where it hasn’t yet done any deals, he added.
UAE oil services provider plans country’s biggest IPO this year.
NMDC Group, a provider of construction and dredging services mainly to the energy industry, is planning what would be the United Arab Emirates’ biggest initial public offering this year, Bloomberg reported.
The company received approval from the UAE securities regulator to sell AED3.22bn ($877m) of shares in its in NMDC Energy unit. NMDC Group will offer 1.15bn shares of the business at AED2.80 ($0.76) a piece.
Pemberton targets $4bn for European credit fund. (FS)
London-based private lender Pemberton Asset Management is seeking to raise €3.75bn ($4.2bn) for its latest opportunistic credit fund, Pemberton Strategic Credit Fund IV, amid growing challenges faced by traditional banks.
The firm’s fourth strategic credit fund aims to provide financing solutions to European businesses with complex capital needs, arriving just five months after the firm successfully closed its predecessor. It will focus on originating loans with varying risk-return profiles and potentially taking equity stakes in the businesses it finances.
Societe Generale in talks to hire Barclays dealmaker Chiapparoli. (People)
Societe Generale is in talks to hire Italian dealmaker Enrico Chiapparoli from Barclays for a senior role in Milan, as investment banks compete for talent in Europe, Bloomberg reported.
The banker is leaving Barclays just a few months after being appointed co-head of industrials for Europe, the Middle East and Africa. The prospective move comes as Alessandro Gumier, Societe Generale’s country head for global banking and investor solutions in Italy, prepares to retire later this year.
APAC
Australian Food & Agriculture, a diversified agricultural company, agreed to go public via a SPAC merger with Agriculture & Natural Solutions Acquisition, a blank cheque company, in a $510m deal.
"We have always believed that agriculture—backed by the right sort of capital—could deliver nature and climate solutions. ANSC is proud to enter into a business combination with AFA and looks to establish it as a leader in this regenerative transition not just in Australia, but across the world," Bert Glover, ANSC CEO.
Australian Food & Agriculture is advised by Bell Potter Securities and Rimon Law. Agriculture & Natural Solutions Acquisition is advised by Citigroup, K&L Gates, Vinson & Elkins, Walkers and Kekst CNC. Citigroup is advised by Davis Polk & Wardwell. Bell Group is advised by Speed & Stracey Lawyers.
Golden Energy and Resources, a mining company, and M Resources, a metallurgical coal industry services provider, completed the acquisition of Illawarra Metallurgical Coal, a producer of high-quality metallurgical coal, from South32, a mining and metals company, for $1.3bn.
"This transaction will realise significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future,” Graham Kerr, South32 CEO.
M Resources was advised by Corrs Chambers Westgarth. Golden Energy was advised by Latham & Watkins. South32 was advised by Bank of America and Herbert Smith Freehills.
Eastern Bell Capital, an ecosystem-based fund, and Goldstone Investment, a private equity company, agreed to invest $141m in Xinwanxing, a Chinese producer of composite materials.
The deal is expected to fund Xinwanxing’s plan to scale the production of aerospace-grade composite materials and facilitate its long-term business growth through improvement of corporate governance and production management.
Tencent-backed MD Entertainment, a global media and entertainment company, agreed to acquire a 80% stake in Net Visi Media, an Indonesian media and entertainment company, for $107m.
The company is also exploring partnerships with big Hollywood production houses as well as pursuing inorganic strategies in other countries. It also plans to distribute the movie content to other channels through TV stations and OTT platforms. It will open new revenue streams for the company, including advertising revenue.
IndiGo’s Gangwal sells $1.3bn stake near record high.
The billionaire co-founder of IndiGo, Rakesh Gangwal, sold nearly $1.3bn worth of shares in the airline’s operator InterGlobe Aviation a day after they closed at a record high, Bloomberg reported.
Shares in India’s leading airline climbed 92% over the past year and closed at a record high of INR4.8k ($57.94) on August 28. Gangwal and the Chinkerpoo Family Trust sold 22.5m shares at INR4,7k ($56.2) each in a block equity sale, representing 30% of his IndiGo stake.
Foreign lenders lured by rare stake sales in India banks, but tighter rules weigh.
Talks to sell majority stakes in two Indian banks have attracted interest from foreign peers in Japan and the Middle East betting on a fast-growing economy, but tighter regulations and valuation concerns could curb their appetite, Reuters reported.
The rare opportunity for foreign banks to take controlling stakes in a market dominated by state-owned banks comes as existing investors in Yes Bank and IDBI Bank look to divest their holdings.
Delivery Hero gears up for IPO of Talabat unit in Dubai in Q4.
Delivery Hero is preparing an initial public offering of its Emirati subsidiary Talabat on the Dubai stock exchange in the fourth quarter of this year, DealStreetAsia reported.
Under the planned listing on the Dubai Financial Market, the parent would sell existing shares in Talabat while retaining a majority stake.
Tata is said to shelve media unit IPO after buying out Temasek. (FS)
Tata Group has shelved plans for an initial public offering of its entertainment content distribution platform after buying out minority investors, Bloomberg reported.
The Indian conglomerate has opted to keep Tata Play as a closely held company for longer as it seeks to expand the business ahead of any potential listing in the future. Tata has withdrawn the prospectus it filed with the Securities and Exchange Board of India for a Mumbai IPO.
Malaysia's Khazanah raises $1b via sukuk, conventional bond offering. (FS)
Khazanah Naisonal Bhd, Malaysia’s sovereign wealth fund, has raised a total of $1bn from a five-year $500m sukuk wakalah, or Islamic bond, and a 10-year conventional bond offering, DealStreetAsia reported.
The sukuk was priced at a 4.484% yield, with the conventional bond at 4.759%. The reoffer spreads were Treasuries plus 82 basis points and 92 basis points respectively.
UBS appoints former Credit Suisse executive as new China head. (People)
UBS has appointed former Credit Suisse executive Janice Hu to replace Eugene Qian as head of its business in China.
Qian has decided to step down for family reasons after more than nine years at UBS in China and is exploring other opportunities within the company.
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