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AMERICAS
Blackford Capital, a lower middle market private equity firm, agreed to acquire PACIV, an industrial process automation company. Financial terms were not disclosed.
“We’re thrilled to be working with Rick, Mácar and the rest of the PACIV team to launch this new platform in the fast-growing manufacturing automation sector. With the rising demand for industrial automation expertise across a variety of industries, we believe PACIV will provide a solid foundation for our new Industrial Automation platform, and that we will have many opportunities to expand within biotechnology, pharmaceutical, medical device, and other industries demanding process automation services,” Martin Stein, Blackford Capital Founder and Managing Director.
PACIV is advised by MFS Capital Advisors and Adsuar Muniz Goyco Seda & Perez-Ochoa. Blackford Capital is advised by Grant Thornton, Rush Street Capital, Varnum and Lambert & Co. Debt financing is provided by Associated Bank and HCAP Partners.
Monomoy Capital Partners, a private equity firm, completed the acquisition of Japs-Olson Company, a printing services provider. Financial terms were not disclosed.
"We are fortunate to partner with Monomoy and leverage their ability to build upon the strength of our customer relationships, supporting our mission of providing exceptional customer service and on-time delivery. The Japs-Olson team is thrilled to find a well-aligned partner who epitomizes the principles that have brought the company decades of success and whom we trust to bring Japs-Olson into its next era," Japs-Olson, Mike Beddor CEO.
Japs-Olson Company is advised by Lazard and Stinson. Monomoy Capital Partners is advised by Mintz Levin and MiddleM Creative. Debt financing is provided by Prospect Capital and Wells Fargo Securities.
BlackRock and GTCR-backed Transaction Data Systems, an independent pharmacy software solutions provider, agreed to merge with Outcomes business of Cardinal Health, an American multinational health care services company. Financial terms were not disclosed.
"Adding Outcomes to TDS's platform represents a major milestone for optimizing care delivery and maximizing clinical reimbursement in the pharmacy. Together we can drive more meaningful connections with payers and pharma companies to improve adherence and health outcomes through streamlined programs in pharmacy workflow directly at the point of care," Jude Dieterman, Transaction Data Systems CEO.
Transaction Data Systems is advised by SVB Securities and Simpson Thacher & Bartlett. Cardinal Health is advised by Jones Day.
Bermuda Life Insurance, an insurance brokerage firm, agreed to acquire a 36.9% stake in BF&M, a pension and insurance services provider, from Camellia, a diversified holding company, for $100m.
"Whilst completion of the transaction is not expected until Q4 2023 and therefore the exact use of proceeds may vary depending on circumstances between now and completion, the receipt of the funds realised by this sale, together with funds raised from the disposal of other non-core assets, will enable the Company to accelerate its development programme and continue to diversify its agricultural production by crop and geographic location. The Board considers Camellia's shares to be significantly undervalued and, in the event of any surplus funds arising, will also therefore consider the merit of returning these to shareholders by means of a share buy-back. The company may, in the meantime, undertake a modest buyback exercise in accordance with the authority given at the Annual General Meeting," Camellia.
Camellia is advised by Panmure Gordon & Co and H/Advisors Maitland.
UnitedHealth Group-backed Optum, a diversified health services company, agreed to acquire Amedisys, a provider of home health, hospice and high-acuity care, for $3.26bn.
“Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum’s deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth," Patrick Conway, Optum Care Solutions CEO.
Amedisys is advised by FGS Global.
EVI Industries, a commercial laundry and dry cleaning equipment supplier, completed the acquisition of Express Parts and Services, a commercial laundry products distributor. Financial terms were not disclosed.
“We believe that each acquisition is integral to achieving our long-term growth goal to build North America’s largest value-added distributor of commercial laundry and related products and the most dynamic network of commercial laundry technicians through which we may best support commercial laundry customers. We are pleased to welcome Max Usik and the EXP team to the EVI family and look forward to working together in pursuit of our long-term growth goals,” Henry M. Nahmad, EVI Industries Chairman and CEO.
Intel to raise about $1.5bn from Mobileye stake sale.
Intel, the largest US chipmaker by revenue, will sell part of its holdings in Mobileye Global, raising about $1.5bn for its ambitious spending plans, Bloomberg reported.
The US company is offering 35m shares with an option to sell a further 5.25m shares of the Israeli automated driving technology maker. Mobileye stock has more than doubled since its initial public offering last October. Goldman Sachs Group and Morgan Stanley will underwrite the sale.
Teck says it received several proposals for steelmaking coal business.
Teck Resources said it has received several indications of interest for its steelmaking coal business, without giving further details. The Canadian miner's statement comes a little over a month after it withdrew an initial plan to separate its copper and coal business that failed to secure enough shareholder support, promising to come back with a "simpler and more direct" split, Reuters reported.
Teck is also trying to fend off a $22bn takeover bid by Swiss trader and miner Glencore, which it rejected twice. It said that its board will evaluate all "actionable, value-accretive proposals" before making a decision, adding however that there is no assurance on whether these conversations will result into a transaction.
Bed Bath & Beyond in talks to sell Buybuy Baby to Go Global Retail.
Bed Bath & Beyond is in talks to sell its Buybuy Baby chain to retail investment firm Go Global Retail. The once high-flying home goods chain, which filed for bankruptcy in April, is also fielding interest from online retailer Overstock.com for the intellectual property behind the main Bed Bath & Beyond banner. Under the potential deal, Overstock.com would close all remaining physical locations of Bed Bath & Beyond, Reuters reported.
Bed Bath & Beyond succumbed to dwindling sales and mounting losses earlier this year, resulting in a Chapter 11 bankruptcy, with the company also initiating a liquidation sale and moving to shut its stores. While Bed Bath & Beyond's eponymous store banner had struggled to pull customers after a failed merchandise strategy, analysts said the Buybuy Baby chain had better chances of drawing buyers after the bankruptcy. The company had said in April it planned to use the Chapter 11 proceedings to seek outside buyers who could keep its business going or purchase assets such as the baby gear chain.
Surf Air files plan to go public via a direct listing.
Surf Air Mobility, a Los Angeles-based electric aviation and air travel company, is moving ahead with its plan for a direct listing, the first significant company since 2021 to venture the alternative route to becoming publicly traded.
The filing by the regional air travel company confirmed an earlier report by Bloomberg News that it was working with Morgan Stanley on the listing. Located at the Hawthorne Municipal Airport in the Los Angeles area, Surf Air is planning for its shares to trade on the New York Stock Exchange under the symbol SRFM.
After the listing and a combination with Southern Airways, co-founder Liam Fayed will remain the largest shareholder with an 8.7% stake, followed by co-founder Sudhin Shahani with 7.3%, according to the filing, Bloomberg reported.
Saverin’s B Capital in talks to raise $500m fund. (FS)
Eduardo Saverin’s B Capital Group is in talks to raise $500m for a new early stage venture fund. The new fund would be the firm’s third Ascent Fund.
The new fund will focus on investing in startups at the earliest stages — seed and Series A rounds. B Capital will be investing across several categories, including enterprise software, health care, financial technology and climate technology. It would roughly double its $254m predecessor fund from 2021, Bloomberg reported.
Top Barclays software banker to join Centerview. (People)
Barclays global co-head of software investment banking Steven Markovich resigned to join Centerview Partners, the latest blow to the British bank's efforts to retain US dealmaking talent. Markovich had been one of Barclays' most successful technology bankers for over 14 years with the bank. Among his deals last year were Vista Equity and Elliott Management's acquisition of business software maker Citrix Systems for $17bn and information management vendor OpenText's $6bn acquisition of software company Micro Focus, Reuters reported.
More than two dozen US investment bankers have left Barclays since it named former Credit Suisse investment banking and capital markets co-head Cathal Deasy and former Morgan Stanley global capital markets co-head Taylor Wright as global co-heads of investment banking in January. The elevation of these newcomers bypassed tenured Barclays bankers that had been seen as possible successors, including those popular with colleagues such as Marco Valla, who subsequently joined UBS.
EMEA
Microsoft's Brad Smith in talks with UK finance minister to seek approval for the $69bn Activision deal.
Microsoft's president Brad Smith met Britain's finance minister for talks and said he would try to work with regulators to seek UK approval for its $69bn purchase of "Call of Duty" maker Activision Blizzard, Reuters reported.
British competition authorities blocked the takeover in April in a shock decision which jeopardises gaming's biggest-ever deal, drawing a furious response from the two groups who questioned whether the country remained open to tech firms.
Activision Blizzard is advised by Allen & Company (led by Nancy Peretsman), Morgan Stanley (led by Anthony Armstrong), Skadden Arps Slate Meagher & Flom (led by Kenton King), Brunswick Group (led by Jonathan Doorley) and FGS Global (led by Paul Verbinnen). Financial advisors are advised by White & Case (led by Denise Cerasani). Microsoft is advised by Goldman Sachs (led by Sam Britton), Osler Hoskin & Harcourt, Sidley Austin, Simpson Thacher & Bartlett (led by Alan Klein, William Allen and Anthony Vernace), Weil Gotshal and Manges (led by Mike Moiseyev) and Assembly Media.
Stellex Capital Management, a middle-market private equity firm, completed the acquisition of MSS Group, a critical electronic components manufacturer. Financial terms were not disclosed.
“Stellex has a strong track record in partnering with families and investing in industrial businesses to support them in their next phase of growth. MSS is a critical partner to its customers, thanks to its ability to be a one-stop shop providing the required services and solutions. We are excited to support MSS’ organic and international expansion plans. Our goal is to help MSS climb the value chain and capture new markets while continuing to be a trusted, world-class partner to its blue-chip customers in the global power market,” Mark Redman, Stellex Capital Management Managing Partner.
MSS Group was advised by LEK Consulting, HSBC, Jamieson, KPMG, Hill Dickinson and Marketcom PR. Stellex Capital Management was advised by PricewaterhouseCoopers, Deloitte and King & Spalding.
Associated British Foods, a British multinational food processing and retailing company, agreed to acquire National Milk Records, a dairy products manufacturer, for £48m ($60m).
"I am pleased to announce ABF's intention to acquire NMR. ABF's and AB Agri’s status within the UK agricultural sector and expertise in the dairy industry will provide a significant benefit to NMR’s customers. The backing of ABF will accelerate and de-risk NMR’s ability to deliver its strategic objectives, streamlining industry processes by creating a holistic business that can provide end-to-end data and analysis to ensure the long term sustainability, efficiency and profitability of UK dairy. The NMR team looks forward to working as part of ABF and AB Agri to further position NMR as a leading player at the centre of the UK dairy industry," Trevor Lloyd, National Milk Records Chairman.
National Milk Records is advised by Canaccord Genuity, Gowling WLG and BlytheRay. Associated British Foods is advised by Rothschild & Co, Addleshaw Goddard and Citigate Dewe Rogerson.
Develia, a residential property managers company, agreed to acquire the Polish subsidiary business of Nexity, a French real estate development company, for €100m ($107m).
"The acquisition of Nexity will allow us to significantly increase Develia's sales potential in the short term because large number of projects from the land bank have already the administrative approvals enabling the groundbreaking. At the same time, we can achieve a higher return on equity on the transaction than assumed in the strategy," Paweł Ruszczak, Develia Deputy CEO.
Develia is advised by Linklaters. Nexity is advised by Rothschild & Co and Dentons.
Public Investment Fund, a private equity firm, agreed to acquire a 30% stake in Tamimi Markets, a grocery chain operator. Financial terms were not disclosed.
"PIF’s partnership is a significant vote of confidence in Tamimi Markets and a step forward for the Company, as we look to implement our ambitious growth plans. This partnership will enable us to accelerate and expand our store network across the region, optimizing the significant growth that is expected in this market over the next few years," Tariq AlTamimi, Tamimi Holding Chairman.
PIF is advised by Rothschild & Co.
PGA Tour, a professional golf tours organizer, and DP World Tour, a sports association, agreed to merge with golf-related commercial businesses of Public Investment Fund, a sovereign wealth fund of Saudi Arabia. Financial terms were not disclosed.
“Today is a very exciting day for this special game and the people it touches around the world. We are proud to partner with the PGA TOUR to leverage PIF’s unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide. We are committed to unifying, promoting and growing the game of golf around the world and offering the highest-quality product to the many millions of long-time fans globally, while cultivating new fans," Yasir Al-Rumayyan, PIF Governor.
Iyuno, a media localization and distribution solutions provider, agreed to acquire Ak'la Kara, an Istanbul-based dubbing studio. Financial terms were not disclosed.
"We're thrilled to announce our acquisition of Ak'la Kara International, a leading provider of language services in Turkey. As consumers' appetite for content is at an all-time high, the need for a single supply chain provider is critical to global content producers' distribution strategies. With this acquisition, Iyuno will continue to support the needs of our clients for language services by growing our operational footprint and expanding our global reach," David Lee, Iyuno CEO.
Italy's Eni enters exclusive talks to acquire Neptune Energy. (FS)
Italian energy giant Eni has entered exclusive talks to acquire private-equity backed gas and oil producer Neptune Energy after sweetening its previous offer to below $6bn. The two firms entered a new phase of exclusive discussions in recent weeks following months of slow negotiations that started late last year. Eni agreed to slightly increase its offer for Neptune, which still remains in a range between $5 to $6bn.
Neptune produced around 142k barrels of oil equivalent per day (boed) in the first quarter of 2023, three-quarters of which is gas. It has operations in Norway - home to Eni's Var unit - Britain, Indonesia - where Neptune shares licences with Eni - Algeria, the Netherlands, and elsewhere. Neptune is owned by China Investment Corporation (CIC), the Carlyle Group, and CVC Capital Partners, Reuters reported.
Neom attracts $5.6bn in investments from local investors!
Saudi Arabia’s Neom, an entirely new city being built on the Red Sea coast, has finalized a deal worth more than 21bn riyals ($5.6bn) with a group of local investors, in the third investment to back the kingdom’s most ambitious project to diversify its economy in the past month.
Neom, spearheaded by Crown Prince Mohammed bin Salman, is the biggest project in his plan to diversify the country’s oil-dependent economy. He wants the city to be a showpiece that will transform Saudi Arabia’s economy and serve as a testbed for technologies that could revolutionize daily life. Four local firms will develop temporary housing and facilities for 95k people under a public-private partnership deal, Bloomberg reported.
StanChart in talks to sell aviation finance unit to AviLease. (FS)
AviLease, a jet lessor owned by Saudi Arabia's Public Investment Fund, is said to be in advanced talks to buy Standard Chartered's aviation finance business in a deal which could be valued at €3.5bn ($3.75bn), Reuters reported.
The UK-headquartered bank in January had said it was considering a sale, among several options, of its Ireland-based aviation unit, which owns and manages more than 120 planes on lease to 30 airlines. The deal would help AviLease, launched last year, boost its presence in key leasing markets in the Middle East and other parts of the world.
Shell announces plan to sell household energy supply arm.
Shell has said that it plans to sell its household energy supply business in the coming months as it decided to exit the troubling retail industry. The oil and gas giant said that it had decided to sell the unit after a five-month review. The business has already been put up for sale, and there are reports that Ovo and Octopus Energy have launched bids for the unit, Bloomberg reported.
The business said that nothing will change for Shell's customers during the sales process. Shell Energy was launched in 2008 as First Utility, but bought by the oil major a decade later. It employs around 2k people in the UK and supplies energy to around 1.4m homes. In addition to that around half a million households get their broadband from Shell Energy.
Dragons' Den star weighs $1.2bn sale of vitamin maker Vitabiotics.
Vitabiotics, the UK vitamin company led by ex-Dragons' Den investor Tej Lalvani, is in the early stages of exploring options including a possible sale. London-based Vitabiotics is speaking with potential advisers. A sale could value Vitabiotics at as much as £1bn ($1.2bn), Bloomberg reported.
Founded in the 1970s by Lalvani's father Kartar Lalvani, Vitabiotics produces a range of vitamins and supplements for adults and children to help manage everything from fatigue to fertility and brain performance. Its popular brands include Feroglobin, Perfectil, Wellman and Wellwoman. Tej Lalvani, the company's chief executive officer, is known in the UK as a former Dragon on the popular reality television show Dragons' Den, which sees entrepreneurs pitch products to a group of investors in the hope of receiving financial backing.
Safran in talks for $1bn Raytheon flight control unit.
Safran is in talks to acquire an arm of Raytheon Technologies that makes products, including flight controls, in what could be its most significant purchase in six years. The French aerospace company is discussing a deal to buy "certain flight control and actuation activities" from Raytheon as part of a competitive bidding process, Bloomberg reported.
Safran is in advanced negotiations over a transaction that could value the business at about $1bn. It's been competing with several private equity suitors, they said. Shares in Safran were relatively unchanged in Paris, giving the company a market value of €58.4bn ($62.4bn). Raytheon has a market value of $140bn.
Alvarez & Marsal says dealmaking wave robust in Mideast despite global dip. (FS)
Alvarez & Marsal is expanding in the Middle East on bets that mergers, acquisitions and restructuring will drive business. The New York-based turnaround firm recently opened offices in Riyadh and Abu Dhabi and is on track to have more than 200 employees in the region this year. The company made its mark in the Middle East after being appointed as the administrator of scandal-hit NMC Health in 2020, Bloomberg reported.
Faisal Shaikh, managing director and regional head of corporate finance at A&M in Dubai, commented: "While the GCC is not totally unaffected by the global deal making environment, favorable regional dynamics and proven resilience continue to fuel M&A attractiveness in the region. Increased interest rates have not had a material impact on transactional activity in the region. The pipeline across the buyer universe — strategics, sovereign wealth fund, and financial sponsors — remains strong but with an enhanced focus on integration synergies and value creation. Inorganic growth via acquisitions is very much in vogue with strategic buyers as a means of fast-tracking market share growth, extracting synergies, and accessing talent."
Romania's Hidroelectrica to list up to 20% of stock in domestic IPO.
Romanian energy producer Hidroelectrica said it plans to list up to 20% of its shares on the local bourse, in what is likely to be one of Europe's largest initial public offerings (IPO) so far this year. The state-backed company, which operates more than 180 hydro-electric power plants across Romania, expects to start trading on the Bucharest Stock Exchange next month, Reuters reported.
Investment banks will start taking stock orders from investors after the local securities watchdog approves the prospectus for the share sale. The offering will include existing shares held by Fondul Proprietatea, a fund managed by US asset manager Franklin Templeton. While the Romanian government is not selling any shares, the listing is part of a deal struck with the European Union to receive post-pandemic recovery funds.
Julius Baer seeks $250m from world's rich for buyout bets. (FS)
Julius Baer Group is ramping up a private equity bet for its rich clients, joining a growing number of firms boosting their focus on alternative investments to help navigate the shifting macroeconomic landscape. The Swiss bank plans to raise $250m from clients for the largest fund yet under its flagship private equity program. That would take the total collected since the program began four years ago to about $731m, Bloomberg reported.
Money managers are increasingly looking beyond public markets for returns amid volatility and accelerating inflation. Last year, investment firms for rich individuals and families increased allocations to private markets and are set to do so again in 2023 as part of the biggest shake-up of portfolios in years.
Antares appoints head of UK and Europe investor coverage. (People)
Antares Capital has appointed Sheila Brown as managing director, head of UK/Europe investor coverage within the firm's asset management group. Brown who will be based in the UK, is the firm's first employee outside of North America. In her new role, Brown will cover UK and European investors interested in direct lending and liquid credit strategies.
Brown brings more than two decades of financial services experience to the role, having previously served as managing director, UK/European business development at Hayfin Capital Management, where she was involved in over €5bn ($5.3bn) of capital raising across direct lending, special opportunities, high yield and syndicated loans and healthcare strategies. Brown was Hayfin's first dedicated UK-focused business developer, and also served as chair of the firm's ESG Committee.
The head of Korean Air Lines said he is willing to make concessions to international regulators so the merger with Asiana Airlines can go through, Bloomberg reported.
The plan to combine with national rival Asiana in a $1.6bn deal, announced in 2020, has faced resistance from regulators in the US, Europe and Japan, who say it would hinder competition on routes. China, Australia, the UK and others approved the move following proposals to reduce Korean Air-Asiana’s market share, such as transferring airport slots.
Sequoia splits into three entities, makes China standalone firm. (FS)
Sequoia Capital, the venture capital powerhouse, is breaking up into three entities across the globe, splitting the Chinese and US operations as tensions grow between the world's two largest economies. Sequoia is splitting into three entities - Sequoia Capital in US and Europe, Peak XV Partners in India and Southeast Asia, and HongShan in China - as the storied venture firm scrambles to assess the increasing complexity of managing a decentralized operation, Bloomberg reported.
The firm, known for its early backing of Google, Instagram and some of China's biggest internet companies, will split up into independent partnerships and separate firms, operating under different brands, no later than at the end of March next year, the company said. The surprising announcement follows an increasingly challenging period for US venture capital funds that invest in China. The Biden administration has been working on programs to restrict the flow of US dollars into China, where Sequoia has played a big part in fueling the country's consumer internet sector for two decades.
Asia-focused SPAC Atlas Growth Acquisition withdraws $110m US IPO.
Atlas Growth Acquisition, the Singapore-based, Asia-focused special purpose acquisition company, has abandoned its plans to raise up to $110m in an initial public offering in the US. In a filing lodged with the US Securities and Exchange Commission, the blank cheque company had asked that the withdrawal be effective from June 5, DealStreetAsia reported.
The Singapore-based SPAC, which was founded in 2021, has not specified the reason for its withdrawal. It said it has not sold any securities and acknowledged that no refund will be made for fees paid to the SEC in connection with the filing of the registration statement. Because the proposed offering will not occur, the registrant believes that the withdrawal of the Registration Statement is consistent with the public interest and the protection of investors. It originally planned to offer 11m units at an offering price of $10 per unit.
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