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AMERICAS
Merck, a German multinational pharmaceutical, chemical and life sciences company, completed its $6.5bn acquisition of Versum Materials, a leading supplier of innovation-driven, high-purity process chemicals. The deal was announced in January 2019.
“With this transaction, Merck will be optimally positioned to capitalize on long-term growth trends in the electronic materials industry. Our combined business shall deliver leading-edge innovations to our customers around the globe,” Stefan Oschmann, Merck Chairman of the Executive Board and CEO.
Citigroup, Lazard, Simpson Thacher & Bartlett, Skadden Arps Slate Meagher & Flom and Latham & Watkins advised Versum. EY, Goldman Sachs, Guggenheim Partners and Sullivan & Cromwell advised Merck. BNP Paribas, Bank of America Merrill Lynch and Deutsche Bank provided debt financing.
Hess Midstream Partners agreed to acquire Hess Infrastructure Partners, a crude oil and natural gas exploration and production company, for $7.35bn. The acquisition includes HIP’s 80% interest in HESM’s oil and gas midstream assets, HIP’s water services business and outstanding economic general partner interest and incentive distribution rights in HESM.
“This accretive transaction provides a more attractive long term growth platform for our portfolio. We can continue to generate strong free cash flow growth and fund our capital program and consistent 15% distribution per unit growth at an increased coverage level with conservative leverage and no need for equity funding to meet our targeted growth.” Jonathan Stein, HESM CFO.
Goldman Sachs, JP Morgan and Latham & Watkins are advising Hess Infrastructure Partners. Intrepid Partners, Gibson Dunn & Crutcher and Sard Verbinnen & Co are advising Hess Midstream Partners. Baker Botts is advising Intrepid. Morgan Stanley is advising Hess Corporation.
Impala Platinum, a multinational mining corporation based in South Africa, agreed to acquire North American Palladium, the world’s only pure-play palladium producer, for C$1bn ($751m).
“This transaction delivers attractive value for our shareholders and reflects five years of hard work we have devoted to realize the potential of our assets. We have successfully established Lac des Iles Mine as one of Canada’s largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment,” Jim Gallagher, President and Chief Executive Officer of NAP.
BMO Capital Markets, Stikeman Elliott and Webber Wentzel are advising North American Palladium. Macquarie Group and Baker McKenzie are advising Impala Platinum.
Health Sciences Acquisitions Corporation, a special purpose acquisition company sponsored by RTW Investments, agreed to acquire and merge with Immunovant, a clinical-stage biopharmaceutical company focused on enabling normal lives for patients with autoimmune diseases, in a $395m deal.
"We are thrilled to have the opportunity to partner with the team at Immunovant. We believe IMVT-1401 is a uniquely compelling asset within the FcRn drug class, which we expect will become a cornerstone therapy for treating many auto-antibody driven diseases," Roderick T. Wong, President, Chief Executive Officer and Chairman of HSAC and Managing Partner and Chief Investment Officer of RTW Investments.
Leerink and Cooley are advising Immunovant. Chardan and Loeb & Loeb are advising RTW Investments.
Cinven, the international private equity firm, agreed to invest in National Seating & Mobility, a leading provider of complex rehabilitation mobility and accessibility solutions. The deal will see Court Square Capital exit its investment in NSM. Financial terms of the transaction were not disclosed.
“This is an attractive opportunity for Cinven to invest in NSM, a leading player in the Complex Rehab Technology market in North America. NSM operates in an industry we have been evaluating deeply for several years through our work in the Healthcare sector team in both Europe and the US.” Alex Leslie, Partner at Cinven.
Cinven is advised by Jefferies & Company, Cain Brothers, Latham & Watkins and Deloitte.
RLDatix, a leading provider of governance, risk and compliance solutions that drive patient safety, quality improvement, and harm reduction in healthcare, agreed to acquire Patient Safety Business of Quantros, a leading provider of quality and patient safety software for healthcare. Financial terms were not disclosed.
"As a leader in the patient safety space for nearly 20 years, we have enjoyed the opportunity to support our many clients and we are proud of what we've been able to accomplish together. We are excited to transition this portion of our business to RLDatix as they are in a unique position to carry and enhance the business going forward. This transition will allow Quantros to sharpen our focus on our healthcare quality and value-based care solutions." Trey Cook, CEO of Quantros.
Kirkland & Ellis and Amendola Communications are advising RLDatix. Raymond James and Paul Hastings are advising Quantros.
Private equity firm Insignia Capital Group invested in Netrush, a fast-growing Amazon retailer with a diverse set of digital retail and supply chain capabilities. Financial terms were not disclosed.
"A successful e-commerce strategy is critical for today's brands to reach customers. Netrush has built a truly unique retail partnership model that supports its brand partners in the constantly changing Amazon marketplace." Tony Broglio, Partner at Insignia Capital.
Deloitte and Tonkon Torp are advising Netrush. Kirkland & Ellis is advising Insignia.
QinetiQ Group, a leading science and engineering company operating primarily in the defense, security and aerospace markets, agreed to acquire Manufacturing Techniques, a leading US provider of advanced sensing solutions, for $125m.
"The acquisition of MTEQ is a significant step towards achieving our ambition to build an integrated global defense and security company, more than doubling the size of our operations in the largest defense and security market in the world. MTEQ is a growing business that is thriving because of its ability to apply state-of-the-art sensing technology to enhance information and intelligence that are so critical to modern warfare. I am excited that MTEQ will be joining QinetiQ as its core proposition of rapidly creating new and disruptive capabilities to respond to emerging threats is so well aligned to our own. I look forward to welcoming MTEQ expert employees and high-quality leadership team to QinetiQ." Steve Wadey, QinetiQ CEO.
Baird is advising Manufacturing Techniques. Stephens is advising QinetiQ.
Vestar Capital Partners agreed to make a minority investment in Simple Mills, the number one clean-label baking mix and cracker brand and number three cookie brand in the natural channel. Financial terms were not disclosed.
“Vestar is fully aligned with our vision of improving Americans’ eating habits, has the CPG expertise and connections to help us take the company to the next level, and will allow us to continue operating as an independent entity with the same strict clean-food principles that have driven our growth,” Katlin Smith, Simple Mills founder and CEO.
Blicksilver Public Relations is advising Vestar. Jill Schmidt is advising Simple Mills.
Nautic Partners sold Custom Window Systems, which provides window and door products for both residential and commercial use, to Pella Corporation, a privately held window and door manufacturing company headquartered in Pella, Iowa. Financial terms were not disclosed.
“We are extremely pleased to be a part of the Pella family. It is both a strategic and cultural fit that will afford us the opportunity to serve more customers by further expanding our capabilities in Florida and other key coastal regions. Pella has an outstanding reputation, and we’re pleased to be part of a strong organization with a rich history in the window and door industry and a strong commitment to drive accelerated growth.” Rod Miller, Custom VP of Sales and Marketing.
BlackArch Partners and KeyBanc Capital Markets advised Custom and Nautic.
Macquarie Group completed the acquisition of First Investors Funds, a mutual fund management business of Foresters Investment Management. Financial terms were not disclosed.
First Investors Funds have been successfully reorganized into the Delaware Funds by Macquarie family of funds and approximately $1bn in assets transitioned to the recently launched Delaware Funds by Macquarie Premier Advisor Platform. The Platform offers asset allocation models using a mix of existing Delaware Funds by Macquarie mutual funds and certain First Investors mutual funds that are newly reorganized.
“We remain committed to helping all of our shareholders achieve their financial goals, and we look forward to introducing our new investors and their advisors to the broad and deep range of products we offer.” Shawn Lytle, Delaware Funds President.
Oppenheimer & Co advised Foresters Investment.
Private equity firms Veronis Suhler Stevenson and Trivest Partners invested in Quatrro Business Support Services, a leading provider of tech-enabled business process outsourcing services. Financial terms of the private transaction were not disclosed.
“We are excited to partner with VSS and a talented BPO executive like CM Sharma to accelerate QBSS’s already impressive organic growth. Additionally, Trivest, along with VSS, will assist CM Sharma and the QBSS senior leadership team with an aggressive but thoughtful add-on acquisition program aimed at increasing the Company’s size and scale in the coming years.” Jamie Elias, Partner at Trivest.
Stanton PRM advised VSS.
EMCOR Group, a Fortune 500 leader in mechanical and electrical construction services, agreed to acquire Batchelor & Kimball, a leading full-service provider of mechanical construction and maintenance services. Financial terms were not disclosed.
“We are excited to be acquiring BKI, which further strengthens EMCOR’s position in mechanical construction and maintenance services and broadens our capabilities across the South and Southeast regions. BKI is recognized as a value-added provider to a discerning customer base that operates highly complex infrastructure where construction, maintenance and operation services are mission-critical.” Tony Guzzi, Chairman, President and Chief Executive Officer of EMCOR.
FTI is advising EMCOR.
Viscient Biosciences, a San Diego-based biotechnology company, offered to merge with Organovo, an early-stage medical laboratory and research company. Financial terms were not disclosed.
"There remains tremendous opportunity to unlock the power of Organovo's proprietary technology. Viscient has built a powerful NASH drug discovery platform to a value of tens of millions of dollars in a very short period of time, with strong internal efforts coupled with contract research performed by Organovo. Having already established the paradigm for drug discovery in 3D tissue in liver, Viscient now has the potential to efficiently use the other tissues in Organovo's portfolio to develop drugs for additional high-value indications. After reviewing the recent deal landscape, it is clear to me that a Viscient/Organovo combined entity could be valued in the hundreds of millions over the next couple of years as we hit preclinical and clinical milestones for drug candidates, unlocking significant value for all stakeholders." Keith Murphy, CEO, Viscient Biosciences.
Jenene Thomas Communications is advising Viscient.
Munich Re, one of the world's leading providers of reinsurance, primary insurance and insurance-related risk solutions, invested $250m in Next Insurance, a US-based firm that sells insurance products to small businesses.
"Next Insurance's data- and technology-driven business model offers outstanding growth opportunities, which we will harness together. Next Insurance will benefit from our expertise in primary insurance and reinsurance. This investment emphasizes Munich Re's commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for small and medium-sized commercial customers in the United States. We are confident that building on our proven collaboration will benefit both Munich Re and Next Insurance." Joachim Wenning, Chairman of the Board of Management at Munich Re.
Blackstone and Hellman & Friedman-backed Kronos, a leading provider of workforce management and human capital management cloud solutions, agreed to acquire Optimum Solutions, a national provider of human capital management services and solutions. Financial terms were not disclosed.
“Optimum’s acquisition by Kronos launches an exciting new chapter for our customers and team members. By joining the Kronos family, Optimum’s customers will benefit from the award-winning services, support, and innovations that have propelled Kronos to its position as a leading, global HCM solutions provider. Kronos’ employee and customer centric approach is unparalleled in our industry and will enable our team to take even greater strides in fostering advancements in technology that drive business results.” Bob Farnsworth, CEO, Optimum Solutions.
Atlantic Street Capital, a private equity firm targeting entrepreneurial businesses, has agreed to acquire All Star Auto Lights, the leading distributor of replacement automotive headlights. Financial terms were not disclosed.
The US auto collision repair market is a growing category and a variety of factors are causing consumers, insurance carriers, and auto collision repair shops to help mitigate increasing costs with high-quality alternatives. Both recycled or refurbished OEM parts and aftermarket parts are now viable, cost-effective alternatives to new parts and All Star is a leader in terms of differentiated price, quality, available inventory, timely delivery, and service.
"We recognized the need for a strategic partner to help All Star grow by investing in and supporting the company's organic growth plan and executing on acquisition opportunities. We believe Atlantic Street has the right team of professionals to help us achieve our aggressive growth goals," Matt Immerfall, All Star Auto Lights CEO.
Approved Oil, a petroleum products retailer, agreed to acquire Associated Fuel, a small to mid-size oil marketer. Financial terms were not disclosed.
Associated Fuel has been serving the five boroughs and Westchester County since the early 1990s.
"Approved's mission has always been to achieve the status of the Leading Full-Service Energy Supplier in the Greater New York area and this acquisition brings us one step closer to accomplishing our goal. This is our fourteenth acquisition in recent years, and we will continue to explore new opportunities as we look to increase our customer base with our first-class products and service." Vincent Theurer, Approved's President and CEO.
Maryland Addiction Recovery Center, the leader in long-term care for addiction and co-occurring disorders, agreed to form a new joint venture with Caron Treatment Centers, which provides life-saving addiction and behavioral healthcare rehab in several locations, with a goal to acquire Encore Recovery Solutions, an addiction treatment center for co-occurring disorders, drug abuse & more.
This new partnership between MARC and Caron Treatment Centers finalizes the acquisition of Encore Recovery Solutions, following the joint management agreement of Encore announced in April. The acquisition expands both MARC’s and Caron’s strategic alliance and furthers both the organization's abilities to provide innovative and personalized treatment and recovery services, awareness initiatives, and advocacy efforts in Maryland, Washington, DC, and Northern Virginia.
Pivotal Battery, a Delaware corporation, acquired Integral Technologies, a company that researches, develops, and commercializes its proprietary technologies. Financial terms were not disclosed.
The acquisition of Technology forms an important, long-term strategic alliance with Integral. As per the terms of the transaction, Integral will obtain an equity position in Pivotal and will also be the exclusive supplier of ElectriPlast for ten years, with follow-on renewal options.
“Our initial focus is in advanced battery applications in the $40bn lead-acid battery market, including stop-start applications in automotive, as well as batteries for the micro vehicle market and other low-speed electric vehicles. The stationary market is also an important sector with a focus on telecom and grid storage applications. A key driver to our success will be the positive impact our batteries will have on the environment since our batteries will be fully recyclable.” Richard Bogan, Pivotal Battery Managing Director.
Restoration Builders, a residential and commercial contractor operating within the United States, agreed to acquire Next Generation Roofing Contractors, a state-certified licensed roofing contractor with 15 years of experience in the roofing industry. Financial terms were not disclosed.
"I joined Restoration Builders because I am always looking forward, looking for the next step to grow from here. I have a vision of professionalizing a fractured industry, so we can better help families. Together will we be able to make a difference in our industry, and every good work has its fruits. We do a good service for more families, get more properties restored, and be part of a larger company. That seems like a great next step." Uzziel Jamarillo, Founder and President of Next GRC.
QualTek, a leading provider of turnkey telecommunications solutions, agreed to acquire Vinculums, the leading infrastructure service provider for wireless operators throughout the Western United States. Financial terms were not disclosed.
"For close to two decades, Vinculums has been regarded as the premier Wireless Services Provider in the Western United States. Their performance, size and reputation for being on the forefront of wireless technology deployments is well known in the industry. This acquisition provides a tremendous platform for QualTek and Vinculums to significantly enhance the services that we provide for our mutual customers as we deploy new technology for the next decade and beyond, "Scott Hisey, CEO of QualTek.
Hub International, a leading global insurance brokerage, agreed to acquire LBA Insurance Services, a full-service agency providing employee benefits, retirement and consulting services. Financial terms were not disclosed.
"Joining Hub was the next logical step for us. With Hub, we will enhance the relationships with our loyal clients, as well as, expand the services and products we will offer. Our cultures are also similar, which is meaningful to me and one of the main reasons we chose Hub." Lior Avishay, President of LBA.
WestView Capital Partners, a Boston-based private equity firm, invested in Receivable Solutions, a national provider of revenue cycle management services. Financial terms were not disclosed.
“We are excited to partner with Brent and his team as they continue to capitalize on the growing demand for hiqh-quality outsourced RCM services,” Kevin Twomey, a Vice President at WestView who will also join the company’s board.
Caisse de dépôt et placement du Québec invested $50m in Bird Rides, the global leader in sustainable micro-mobility. Bird operates shared electric scooters in over 100 cities globally, offering an increasingly popular clean mobility option for short urban rides.
“Bird fits directly within our strategy to invest in innovative and disruptive tech sectors such as sustainable mobility. This new partnership also supports our commitment to take part in the transition toward a less carbon-intensive global economy. We look forward to continue building a business that provides micro-mobility solutions in cities around the world." Jeffrey R. Smith, Senior Managing Director, Digital Investment Strategy, CDPQ.
Google considers buying Firework to rival TikTok.
Google is looking to strike a deal to buy Firework, one of the fastest-growing interactive video platforms on mobile, in an effort to rival TikTok, an iOS and Android social media video app for creating and sharing short lip-sync, comedy, and talent videos.
Firework, based in Redwood City, California, was valued at over $100m in a fundraising round earlier this year.
PayPal dropped out of Facebook’s cryptocurrency venture.
WSJ reported that PayPal Holdings is withdrawing from the group of companies Facebook assembled to launch a global cryptocurrency-based payments network, dealing a blow to the social-media giant’s ambitions to transform financial services.
While PayPal remains supportive of Libra’s mission, it “made the decision to forgo further participation” in the Libra Association, the group backing the libra cryptocurrency, a spokesman said.
Apollo and Elliott looking to save EP Energy stake. (FS)
Bloomberg reported that Apollo Global Management and Elliott Management put forward a bankruptcy plan that would see Apollo hold onto its stake in EP Energy, an on-shore oil and natural gas exploration and production company, while cutting nearly two-thirds of its $4.9bn debt load.
The restructuring plan, which was presented in front of Judge Marvin Isgur in Houston on Friday, would see Apollo and Elliott convert their roughly 70% stake in the company’s 1.5-lien notes into 99% of the equity in the reorganized oil and gas company. Those lenders, along with other 1.5-lien holders, would also backstop $325m of its $436m equity rights offering at a discount.
Knight Therapeutics and Eurofarma ponder buying Biotoscana. (FS)
Canada's Knight Therapeutics and Brazil's Eurofarma, two pharmaceutical companies, consider buying Biotoscana, a Brazilian pharmaceutical company. Biotoscana’s largest shareholders, private equity firm Advent International and specialist investment firm EW Healthcare Partners, which hold 27% and 17% of the company, respectively, are in talks to sell their stakes.
Madison Dearborn looking to raise $4.5bn for the next fund. (FS)
Madison Dearborn Partners set a $4.5bn target for the firm's eighth flagship fund. Based in Chicago, Madison Dearborn invests in a range of industries including healthcare, software and finance. The firm closed its previous flagship fund on $4.4bn in 2016.
C&A looking to raise up to $540m in Brazil IPO.
C&A Modas, the Brazilian unit of Dutch fast-fashion retailer C&A, is looking to raise up to $540m in Brazil IPO. The retailer plans to price its shares on Oct. 24.
The Dutch retailer, controlled by the Brenninkmeijer family, also plans to sell part of its stake in the Brazilian company. After the offering, the parent company’s stake in the fully owned subsidiary may fall as low as 63.8%.
DeepRoute raised $50m in a funding round. (FS)
DeepRoute, a full-stack solution provider focusing on L4 autonomous driving with a global presence, raised about $50m in a fresh round of funding led by Foshun RZ Capital, jointly by other investment organizations including GoldenSand Capital, Yunqi Partners, Ventech China and Green Pine Capital Partners.
EMEA
Shares in sensors specialist AMS and lighting group Osram fell on Monday on concerns AMS might revisit its $4.9bn takeover bid which failed on Friday. AMS, which is battling against Bain Capital and Advent International to buy Osram, managed to collect 51.6% of the target's stock, less than the required 62.5% level.
“While we regard the failing of the bid as positive for AMS due to our concerns on the cost and benefits of the acquisition, it seems unlikely that the matter will end here with another bid being likely at some point,” Liberum analyst Janardan Menon.
Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco, and FTI are advising Bain. Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
Bridgepoint agreed to acquire a stake in Vermaat Groep, the Dutch market leader in high-end catering and hospitality services, from Partners Group, a global private markets investment manager. Financial terms were not disclosed.
"Vermaat is a clear European leader thanks to its reputation for creativity in formats, quality and food innovation. In a fragmented European market that is underserved by larger groups, the Vermaat platform, working with Bridgepoint, will have the resources and international reach to further develop its German presence and to enter new markets across Europe." Olivier van Riet Paap, Head of Bridgepoint's investment activities in Benelux.
EY, WhiteSpace Partners, ERM, Rothschild & Co and Freshfields Bruckhaus Deringer are advising Bridgepoint.
Innovate Biopharmaceuticals, a clinical-stage biotechnology company, agreed to merge with RDD Pharma, a privately-held biopharmaceutical company focused on orphan and innovative therapies for gastrointestinal disorders. Financial terms were not disclosed.
"The merger of Innovate and RDD to create 9 Meters Biopharma represents a bold new chapter in drug development for GI diseases and is a transformative deal for Innovate shareholders with tremendous benefits. The merger attracts a highly seasoned board and management team led by a proven CEO, fundamentally driven healthcare-dedicated institutional investors and a shared vision to build a truly world-class platform biopharmaceutical company, which can be the partner of choice for near-term business development opportunities as well, jumpstarted with an exciting clinical pipeline," Sandeep Laumas, MD, Executive Chairman of Innovate.
Shibolet & Co and Wyrick Robbins Yates & Ponton are advising RDD. Benchmark, Agmon & Co, Rosenberg Hacohen & Co and Sheppard Mullin Richter & Hampton are advising Innovate Biopharmaceuticals.
SIG, a British-based international supplier of insulation, roofing, commercial interiors and specialist construction products, agreed to sell its Air Handling Division to France Air Management for £198m ($244m). SIG's integrated Air Handling Division is the largest distribution-led specialist provider of air handling products and solutions in Europe.
"We believe that the proposed sale of our Air Handling Division represents an attractive value for SIG's shareholders. The disposal is a result of continuing management actions in line with stated priorities to reduce financial leverage, to simplify the Group's operations by exiting from non-core businesses and to deliver significantly improved operational and financial performance. The disposal enables SIG to become a more focused business, with leading positions and attractive medium-term growth prospects in its core markets, a strengthened balance sheet and the flexibility to pursue further value-creating investment opportunities." Meinie Oldersma, Chief Executive Officer of SIG.
Jefferies & Company, Peel Hunt, Lazard and FTI are advising SIG.
Dialog Semiconductor, a leading provider of power management, charging, AC/DC power conversion, Wi-Fi and Bluetooth low energy technology, agreed to acquire Creative Chips, a prominent supplier of Integrated Circuits to the Industrial Internet of Things market, for up to $103m.
The new acquisition is strategic for Dialog to establish itself as a proven supplier, well-positioned to capture the significant growth potential of the Industrial IoT market. It also provides Dialog with a rich portfolio of core IC products and a broad library of relevant analog, digital and RF technologies. The acquisition includes the addition of an experienced engineering team with a wealth of unique skills that, when combined with Dialog’s worldwide engineering, marketing and sales teams, will accelerate IC sales on a global basis.
"The acquisition of Creative Chips is instrumental for Dialog, giving it a strong foothold in the Industrial IoT market, while still highly complementary to Dialog’s current mixed-signal business,” Jalal Bagherli, CEO of Dialog.
CNP Assurances, a major French insurance corporation, closed its €97m ($106m) acquisition of a 50% stake in CNP Cyprus Insurance Holdings, the parent company of a group of insurance companies in Cyprus and Greece, from Bank of Cyprus, a Cypriot financial services company. The deal was announced in June 2019.
“We are very pleased to conclude this transaction with Bank of Cyprus. The outcome will further strengthen the capacity of our subsidiary, a leader in Cyprus, to expand its business with the full support of our teams in Paris. We are very motivated to contribute prominently to the development of insurance market in Cyprus." Xavier Larnaudie-Eiffel, Deputy CEO of CNP Assurances and chairman of the board of CNP Cyprus Insurance Holdings.
Packaging firm Liqui-Box agreed to sell its bag-in-box business to Peak Packaging, one of the leading manufacturers of 1000 Ltr liquid liners. The deal was made to comply with requirements from Britain's competition watchdog over Liqui-Box's takeover of DS Smith. Financial terms were not disclosed.
"We're happy to have clearance now in the UK and move one step closer to completing the acquisition of the DS Smith Plastics Division. Our team is prepared for a seamless handoff to Peak Packaging for customers in the UK and anticipate no service disruption for those outside of the UK" Ken Swanson, Liqui-Box's CEO.
ZEDRA, a global independent specialist in trust, corporate and fund services, has agreed to acquire Talenture, an independent corporate and services provider. Financial terms were not disclosed.
The acquisition will bring ZEDRA's global office total to 17 across 13 jurisdictions.
"The Talenture's acquisition significantly extends our offering to include payroll and tax compliance services in Switzerland. Ticino's strategic geographic position represents a bridge between northern and southern Europe and two strong and dynamic economic areas: Lombardy – with international fashion and financial hub Milan– and Switzerland. Accounting expertise and corporate services in the region are well developed and the area includes a solid industrial sector. It also headquarters various multinational companies, especially in the fashion industry that we are in a perfect position to serve." Giovanni La Forgia, ZEDRA Switzerland Commercial Director.
Saint-Gobain, a French multinational manufacturing corporation, completed the sale of its Optimera Distribution unit to Davidsens Tommerhandel, which offers timber and construction materials. Financial terms were not disclosed.
This transaction is in line with Saint-Gobain's portfolio optimization strategy aimed at divesting businesses representing sales of more than €3bn ($3.3bn) by end-2019.
Private equity firm ECI Partners invested in KB Associates, the leading professional services firm advising investment funds and asset managers. Financial terms were not disclosed.
“We are delighted to be partnering with Mike and his team to help them drive the next chapter of growth. We are attracted to ambitious growth businesses with strong market positions, inspirational management teams and strong culture. KB Associates ticks all those boxes.” Michael Butler, Investment Director at ECI.
SKF, a leading global supplier of bearings, seals, mechatronics and lubrication systems, agreed to acquire Israel-based Presenso, a company that develops and deploys artificial intelligence-based predictive maintenance software. Financial terms were not disclosed.
“SKF is all about reliable rotation, technology leadership and solving real world challenges. Today, we are welcoming a team of world-class AI developers, with a production-ready analytics solution into SKF. Together we will change the way industry looks at reliability and make AI an integrated part of production.” Victoria Van Camp, CTO and President, Innovation and Business Development, SKF.
Blackstone looking to expand presence in the UK despite Brexit. (FS)
Stephen Schwarzman, the co-founder of Blackstone, said that the world’s biggest private equity firm remains committed to the UK despite the huge political turmoil associated with Brexit. The firm is looking to increase its workforce in the UK by as much as 10% over the next 12 months and pledged to expand Blackstone’s operations in London.
“We are positive on the UK long term. We will continue to expand here. We will add people in our London office. We remain active in the UK during this period of uncertainty.” Stephen Schwarzman.
Airbus looking to launch exchange to hedge its revenues.
Airbus, one of the world’s biggest manufacturers of planes, plans to launch an exchange so that airline companies can trade financial instruments to protect their revenues, Financial News reported. The European aerospace and defence company, which competes against US rival Boeing, has set up a subsidiary in London, Skytra, that will allow airlines to trade derivatives to protect against unforeseen circumstances that impact their top lines.
The newly formed company which has set up an office in Aldgate, in the east of the City, is targeting a launch date of May 2020. Records at Companies House, the UK business registrar, show that Skytra was incorporated in May this year, with Airbus named as the owner of more than 75% of the company’s shares.
Blantyre raised $549m for its debut fund. (FS)
Blantyre Capital, a London-based investment firm focused on partnering with European companies in relaunching good businesses with temporary financial challenges, wrapped up its first fund at its €500m ($549m) hard cap. Edgeline Capital Partners served as a placement agent for the freshman firm, which plans to invest in European companies.
Neil Woodford secured £7.5m as fund freeze hits four months. (FS)
Financial News reported that Neil Woodford’s investment company earned almost £7.5m ($9.2m) in fees since trading in his multi-billion pound fund was suspended four months ago, with calls mounting for the stricken portfolio manager to return that money to investors.
Mr. Woodford, once touted as the UK’s answer to legendary US investor Warren Buffett, was forced to suspend dealing in his Equity Income fund on June 3 following persistent outflows and underperformance.
Kazakhstan's Kaspi dropped plans to list in London.
Kazakh financial group Kaspi said it is postponing its London listing due to market conditions, reviving concerns about initial public offerings in Europe. The group, which controls Kaspi Bank, the third-largest bank in Kazakhstan, announced its listing plans in September.
“We’ve come to the decision that the timing is not the best at the current moment for an IPO,” Mikheil Lomtadze, chairman of Kaspi.
Sanabil Investments close to buying a stake in Richard Attias. (FS)
Sanabil Investments, which focuses on making direct equity investments in local companies and projects, has reportedly struck a deal to buy a 49% stake in consulting firm Richard Attias & Associates. The deal was reported by Saudi media, citing anonymous sources.
EnBW and RheinEnergie looking to sell stakes in local utility MVV.
German utilities EnBW and RheinEnergie have decided to sell their holdings in regional peer MVV Energie, Reuters reported. EnBW and RheinEnergie, MVV’s second- and third-largest shareholders, jointly hold 45.1% in MVV, which is worth $867m based on its current market capitalization.
“EnBW and RheinEnergie are assessing the possibility to jointly sell their holdings in MVV Energie, this is happening in close coordination with MVV,” EnBW and MVV both said.
Sibanye Gold starts a restructuring process, creates a new holding company.
Sibanye Gold, the largest individual producer of gold from South Africa, commenced with an internal restructuring process which will see its gold assets included as a subsidiary of the new holding company, Sibanye-Stillwater.
The move, the Johannesburg-based precious metals miner said, aims to create a more efficient group structure, which is expected to be achieved by creating a new holding company. The entity will keep Sibanye-Stillwater as its name and will be listed on the Johannesburg Stock Exchange with the same shareholders.
Michael Spencer looking to buy a stake in Tote. (FS)
SkyNews reported that Michael Spencer, the billionaire financial services entrepreneur, is placing a big bet on the future of the Tote by snapping up a substantial minority stake in its parent company. Mr. Spencer is said to be buying a 10% in the company.
His investment in the Tote's owner, which is understood to have cost Mr. Spencer more than £10m ($12m), follows a series of investments in technology-led companies during the last year. The City tycoon has backed businesses such as Elvie, a manufacturer of female health products, and Veridium, a biometric fintech company.
TIER Mobility raised $60m in its Series B. (FS)
TIER Mobility, the leading European provider of micro-mobility solutions, announced a $60m Series B funding round led by Mubadala Capital and Goodwater Capital. The company also welcomed AXA Germany and Evli Growth Partners as new investors, in addition to further participation from all existing investors, including White Star Capital, Northzone, Speedinvest, Point9, Indico, Kibo Ventures, Market One Capital and selected business angels like Nico Rosberg.
TIER Mobility will use proceeds to accelerate its European expansion strategy and continue to build the leading micro-mobility platform for citizens, city authorities and public transportation partners.
APAC
JERA, Japan’s largest energy company, agreed to buy a 22% stake in Summit Power International, a leading infrastructure developer and operator in South Asia, for $330m. Singapore-based Summit Power International is the holding company for all power assets of Bangladesh’s Summit Group. IFC, IFC Emerging Asia Fund, and EMA Power, were shareholders of Summit from 2016 until now and will exit through this transaction.
“JERA is fully dedicated and committed to the future development and economic growth of Bangladesh through this precious partnership with Summit. We believe that Summit has unrivaled presence and capacity in the country. Thus, we will humbly and steadily provide our support to them in the future. We look forward to working together with Summit in supplying not only reliable electricity but also primary energy sources to the people of Bangladesh. Our mission is to provide comprehensive solutions with state-of-the-art technologies to meet the underlying challenges in the energy industry globally.” Toshiro Kudama, CEO of JERA Asia.
Nikkei, a books and magazine publisher, has acquired a 14.79% stake in DC Frontiers, an artificial intelligence tech start-up. Financial terms were not disclosed.
DCF will work with Nikkei and the Financial Times to jointly develop various features of scoutAsia utilizing its technologies and data. scoutAsia is a service that provides users with a comprehensive English-language database of Asian companies alongside reliable Asian business news.
INTL FCStone, a leading provider of financial-services execution, risk management, market intelligence, and post-trade services across asset classes and markets around the world, completed the acquisition of the Futures and Options Brokerage and Clearing Business of United Overseas Bank, a Singaporean multinational banking organisation. The deal was announced in March 2019. Financial terms were not disclosed.
"The successful completion of our acquisition of UOB Bullion and Futures Limited's F&O business in Singapore marks the beginning of a new, exciting era for INTL FCStone in Asia. We are both thrilled and honoured by the prospect of serving our new customers and look forward to building long-lasting relationships with all of them. This transaction significantly enhanced our regional and international capabilities with the addition of SGX as another major exchange we now offer clearing and execution services on. This is an important milestone in expanding INTL FCStone's presence in Asia and fully supports our plans of offering a one-stop solution for all our customers' market access needs for listed derivatives globally." Greg Kallinikos, Chief Executive Officer of IFP and Deputy CEO, Asia for INTL FCStone group.
Japan Display looking to strike a bailout deal this month.
Japan Display, an LCD technology joint venture by Sony, Toshiba, and Hitachi, aims to clinch a $470m bailout deal this month, having had to scramble after an investment group suddenly pulled out of a bailout plan for the company.
Japan Display said a major client, which could be Apple, intends to invest $200m, double the amount it previously planned. Hong Kong-based Oasis Management will also contribute $150-180m.
PropertyGuru looking to raise up to $257m in Australian IPO. (FS)
KKR and TPG-backed PropertyGuru, a Southeast Asian online realtor, filed a prospectus in Australia seeking an initial public offering, looking to raise as much as $257m.
“We intend to use part of the proceeds from the offering to pursue our growth strategy,” PropertyGuru’s CEO Hari Krishnan said in a statement, adding that the company was looking at providing property seekers in the company’s core markets with access to mortgage financing through an online mortgage marketplace.
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