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AMERICAS
Cronos Group, an innovative global cannabinoid company, agreed to acquire four operating subsidiaries of Redwood Holding for $300m. Redwood manufactures, markets and distributes hemp-derived cannabidiol infused skincare and other consumer products online and through retail and hospitality partner channels in the United States under the brand, Lord Jones.
“Rob and Cindy have built a differentiated, best-in-class platform with hemp-based CBD formulations that stand for quality and consistency. Our goal is to preserve the integrity of all Rob and Cindy have created, while also learning from them and leveraging Cronos Group’s resources to capitalize on the significant demand for skincare and other consumer products derived from hemp. Leading the industry forward responsibly and being a part of the conversation with industry stakeholders remains a top priority for Cronos Group in this evolving area,” said Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer.
Perella Weinberg Partners, Blake Cassels & Graydon, and Sullivan & Cromwell are advising Cronos Group. Lazard, Jeffrey D. Segal, A Professional Corporation, and Kirkland & Ellis are advising Redwood.
Private equity firm Linden Capital Partners acquired Collagen Matrix, a developer and manufacturer of collagen-based medical products used for tissue and bone repair and regeneration across orthopedic, sports medicine, dental, and neurosurgery end markets. Financial terms were not disclosed.
Gerard Moufflet, Linden Operating Partner, stated, “The CMI team’s unique understanding of collagen-based technologies along with their commitment to innovation and quality manufacturing make CMI stand out as a leading biomaterials developer and manufacturer.”
Piper Jaffray, Robert W Baird, and Ropes & Gray are advising Collagen. William Blair & Co and Kirkland & Ellis are advising Linden. Golub Capital and Northwestern Mutual Capital are the debt providers to Linden.
Veritas Capital-backed Guidehouse, a leading provider of management consulting services to government clients, acquires Navigant Consulting, a specialized, global professional recruiting service firm, for $1.1bn.
Under the terms of the agreement, Navigant shareholders will receive $28 in cash per share. The per-share purchase price represents a premium of 16% percent over the company’s closing stock price on August 1, 2019, the last trading day prior to the announcement. The closing of this transaction, subject to regulatory approvals and customary closing conditions, is expected to occur in the fourth quarter of this year.
“Guidehouse and Navigant are both leaders in their markets today, and this combination creates a new, highly differentiated platform with capabilities and expertise in both commercial and public sector consulting. We look forward to the next chapter of growth as the new organization goes out to market as one entity with combined expertise and scale,” Ramzi Musallam, Veritas Capital CEO.
Jefferies & Company and Sidley Austin are advising Navigant. Schulte Roth & Zabel is advising Veritas and Guidehouse.
Accel-KKR-backed Cendyn, the leading innovator in hotel CRM and hotel sales platforms, acquired The Rainmaker Group, a leading revenue and profit optimization platform for hotels, resorts and casinos. Financial terms were not disclosed.
"Like Rainmaker, Cendyn has a been a global leader in the hospitality industry for many years," said Tammy Farley, Co-Founder of The Rainmaker Group. "Our vision to deliver superior and demonstrable value to our customers is reflected in this exciting acquisition as we can now take our innovative revenue platforms to the next level with Cendyn."
Houlihan Lokey and Goodwin Procter advised The Rainmaker Group. Goodwin Procter advised Accel-KKR and Cendyn.
Genstar Capital, a leading private equity firm, acquires a majority stake in OEConnection, the leading global automotive technology provider for OEM distribution networks, from Providence Equity Partners. Financial terms were not disclosed.
As part of the transaction, current investors Ford Motor Company and General Motors will each retain their minority investments in OEC.
"We are pleased to partner with the Genstar team as we continue our positive momentum and further expand OEC's product and service offerings for our customers around the world," Chuck Rotuno, OEC Chairman and CEO.
UBS and Debevoise & Plimpton are advising OEC. Willkie Farr & Gallagher is advising Genstar.
Teledyne Technologies, a provider of technologies for industrial growth markets, completed its $230m acquisition of the gas and flame detection business of 3M, electronics, telecommunications, industrial, consumer and office devices producer. The gas and flame detection business includes Oldham, Simtronics, Gas Measurement Instruments, Detcon and selects Scott Safety products. The deal was announced in June 2019.
“The gas and flame detection business utilizes similar technology and serves related markets as our portfolio of environmental instrumentation businesses. However, our respective products do not compete and we generally serve customers in complementary geographies. This business will become a long-term core business of Teledyne, and we look forward to welcoming it and its employees to Teledyne.” Robert Mehrabian, Teledyne Executive Chairman.
Houlihan Lokey and Cleary Gottlieb Steen & Hamilton advised 3M.
Eurazeo, a leading global investment firm, acquires Elemica, leading cloud-based digital supply network, from Thoma Bravo, a leading private equity investment firm. Financial terms were not disclosed.
"Elemica has benefitted greatly from its partnership with Thoma Bravo," said John Blyzinskyj, CEO of Elemica. "Their operational expertise was critically important to the growth of our business and the expansion of our product offerings. This in turn has helped our customers digitize their supply chains."
Aeris Partners and Kirkland & Ellis are advising Thoma Bravo.
Dallas-based Surge Private Equity invested in Hippodrome Services Group, which provides outsourced laundry and dry-cleaning services to 4- and 5-star hotels in Manhattan. Financial terms were not disclosed.
Tom Beauchamp, Partner at Surge Private Equity, said, “Sam has built a remarkable business whose customer tenure speaks for itself. We see the value in this approach and believe we can improve the business he has built. Furthermore, this was a good fit for us given our ownership of Manhattan cleaning company Busy Bee Cleaning Services which we partnered with Harvest on as well.”
Harvest Capital Credit Corporation and Modern Bank provided debt financing.
DoorDash, the fastest-growing last-mile logistics platform in the US, agreed to acquire Caviar, an all-in-one food ordering platform, from Square, a financial services, merchant services aggregator, and mobile payment company, for $410m.
Tony Xu, CEO of DoorDash, said: "Today's announcement is another important step forward on our mission to empower local economies. We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology. The acquisition further enhances the breadth of our merchant selection, enabling us to offer customers even more choice when they order through DoorDash. We look forward to welcoming the Caviar team to DoorDash and expanding our partnership with Square in the future."
Skadden Arps Slate Meagher & Flom is advising DoorDash.
Everbridge, the global leader in critical event management, agreed to acquire NC4, a leading global provider of threat intelligence solutions, for $83m.
"With NC4, we are adding the industry leader in threat intelligence, making Everbridge one of the largest providers of data for enterprise security and operations in the world," said David Meredith, CEO of Everbridge. "NC4 offers the most comprehensive threat data in the industry and this acquisition dramatically expands the overall situational awareness Everbridge will provide organizations, from incident identification to response, mitigation or ultimately, avoidance and prevention."
Houlihan Lokey is advising NC4.
Sara Lee Frozen Bakery, a leading maker of frozen bakery and dessert products, acquires Superior Cake Products, a specialty cakes and baking products manufacturer from Hostess Brands for $65m.
The transaction is expected to close during the third quarter, subject to customary closing conditions. Hostess expects to use the net proceeds from the transaction to pursue a range of potential strategic options, including reinvesting in its business, de-leveraging its balance sheet and pursuing potential strategic acquisitions, while effectively managing its capital structure.
“We are thrilled to add Superior to our portfolio of established and iconic brands,” said Craig Bahner, Chief Executive Officer of Sara Lee Frozen Bakery. “This acquisition accelerates Sara Lee Frozen Bakery’s strategic goal of expanding our presence in the high-growth in-store bakery category. Along with our new colleagues at Superior, we will continue to innovate and deliver irresistible foods that meet retail customer and consumer demands for premium, ‘worth it’ indulgences.”
TM Capital is advising Hostess.
PCS Retirement, US' leading fiduciary retirement platform, acquires Aspire Financial Services, a leading service provider of smart retirement solutions, serving advisors, plan sponsors and TPAs. Financial terms were not disclosed.
“PCS and Aspire have always shared a common vision to help Americans retire with dignity. We believe the combined organization will offer a compelling full-suite retirement platform capable of enabling financial intermediaries a robust retirement solution framework,” said Pete Kirtland, CEO of Aspire. “We look forward to joining forces with PCS to provide an industry-leading, full-service recordkeeping solution.”
Hillrom, a global medical technology leader, acquires Breathe Technologies, a developer and manufacturer of a patented wearable, non-invasive ventilation technology that supports improved patient mobility, for a cash consideration of $130m.
Hillrom expects this transaction to close during its fiscal fourth quarter of 2019, subject to customary closing conditions. The transaction is expected to be modestly dilutive in the first year and increasingly accretive thereafter.
GoSecure, a leader and innovator in cybersecurity solutions, acquired EdgeWave, a leader in Inbox Detection and Response services. Financial terms were not disclosed.
“The acquisition of EdgeWave is strategic to GoSecure on many fronts,” said Neal Creighton, Chief Executive Officer of GoSecure. “Managed Detection and Response is one of the hottest market opportunities in cybersecurity and EdgeWave will add thousands of customers, experienced cybersecurity professionals and inbox detection and response capabilities that will extend our CounterTack technology platform and expand GoSecure’s scale while accelerating growth.”
WeWork pursuing $6bn financing.
The WeWork Company, an American company that provides shared workspaces for technology startup subculture communities, and services for entrepreneurs, freelancers, startups, small businesses and large enterprises, is setting up $6bn in financing to pursue its global ambitions. The financing plans are dependent on the success of the firm's upcoming IPO.
Brookfield in talks to acquire 30% stake in BRK Ambiental. (FS)
Reuters reported that Canada's Brookfield Asset Management is in talks to acquire 30% stake in BRK Ambiental, a Brazilian sanitation company. A deal could value the stake in BRK Ambiental at $520m.
The stake, owned by workers’ severance fund FGTS, is managed by Brazilian state bank Caixa Economica Federal, which has been divesting from most of its noncore assets.
Thoma Bravo-backed Dynatrace jumps in trading after IPO. (FS)
Thoma Bravo-backed Dynatrace, a software intelligence company, completed its trading debut up 49% after raising $570m in its IPO. The company rose as much as 65% on Thursday from its offer price of $16 a share and closed at $23.85, giving the company a market value of $6.7bn.
“The undercurrent of our roadshow was the deeper the due diligence, the better we looked,” Dynatrace Chief Executive Officer John Van Siclen said. “That gave us a lot of momentum and I think that showed today in the market.”
Bain-backed Intermedica on the verge of an acquisition spree. (FS)
Grupo NotreDame Intermédica, a Brazilian health-care provider, backed by Bain Capital, is in talks for eight potential acquisitions, Bloomberg reported. Intermedica has signed non-disclosure agreements for the eight deals, and three are in the due diligence stage of review.
Rakuten Medical raised $100m in Series C-1 round.
Rakuten Medical, a clinical-stage, global biotechnology company developing precision-targeted cancer therapies based on its proprietary Photoimmunotherapy platform, raised approximately $100m in a Series C-1 Preferred Stock financing from Rakuten, a global leader in internet services headquartered in Japan. This investment is increasing Rakuten's equity share of Rakuten Medical to 22.6%.
"The additional investment from Rakuten solidifies our commitment to accelerating Rakuten Medical's business and commercial development," said Mickey Mikitani, chairman and CEO of Rakuten Medical.
EMEA
Fishawack Group, one of the largest independent medical communications and medical marketing specialists, acquires 2e Creative, an internationally recognized healthcare marketing strategy firm. Financial terms were not disclosed.
“We chose Fishawack over a host of other potential investors because their global footprint, expansive capabilities, and entrepreneurial culture represented the greatest advantage for our employees and clients. This is truly the next evolutionary leap for 2e and the brands we serve.” Ross Toohey, 2e Creative CEO.
Results International, Stoll Keenon Ogden, and Clifton Larson Allen are advising 2e Creative. KPMG and Addleshaw Goddard are advising Fishawack. LDC and LGT Capital Partners are debt providers to Fishawack.
Watermill-backed Cooper & Turner, a gun barrel manufacturer, agreed to acquire Beck Industries, a manufacturer and distributor of fully certified, high-security bolting components. Financial terms were not disclosed.
“We are excited to join the Cooper & Turner family,” stated Hugues Charbonnier, former Beck President, who together with his wife Karine Charbonnier are selling Beck and both remaining on the management team as Executive Vice Presidents of Cooper & Turner. “Our complementary technologies, facilities, services and product portfolios will form an unequaled platform to serve local and international clients.”
K&L Gates advised Watermill. Rothschild & Co and Alamain advised the sellers. MidCap Financial Services provided financing.
Investment company Fortress Investment Group agreed to acquire Majestic Retail and Commercial and related assets of Majestic Wine, the United Kingdom's largest specialist retailer of wine, for £100m ($121m).
Commenting on the Disposal, Rowan Gormley, CEO of Majestic, said: "I am delighted that we have managed to secure an independent future for both Naked and Majestic Retail and Commercial, allowing both companies to pursue growth by focusing on their unique propositions."
Investec, Rothschild & Co and Instinctif Partners are advising Majestic Wine.
Private equity firm Oaktree Capital acquired a majority stake in Cebat, a company active in the installation and maintenance of high voltage underground cables and electricity and water distribution networks. The Montanari management and family, a statement said, will continue to be involved in the business and will work alongside Oaktree in developing the company in Italy and abroad. Financial terms were not disclosed.
EY advised Oaktree. Rothschild & Co advised Cebat.
Ergon Capital Partners, a mid-market private equity firm, acquires a majority stake in Dolciaria Acquaviva, a specialist in frozen bakery products, from the founding members of Acquaviva family. Financial terms were not disclosed.
Ergon will lead the transaction in partnership with the Company’s management and the Acquaviva brothers. Through the partnership with Ergon, Dolciaria Acquaviva will be able to leverage Ergon’s pan-European presence and strong track-record in executing industrial projects alongside entrepreneurs.
"We are delighted with the upcoming collaboration with Pierluigi and the Family. Dolciaria Acquaviva has an excellent reputation and is recognized as one of the best players in the Italian market. We are impressed by the Company’s outstanding track record and clear vision. We look forward to supporting the whole Dolciaria Acquaviva team in realizing its ambitious goals." Riccardo Collini, Ergon Partner.
Volkswagen acquired a minority stake in has·to·be, a leading provider of holistic solutions for e-mobility. Together, has·to·be and Volkswagen will forge ahead with the expansion of the pan-European charging network and participate in the rapidly growing market for charging solutions. Financial terms were not disclosed.
"Simple and convenient charging is essential for the rapid breakthrough of e-mobility. We not only need more charging stations; they must also be networked and function in an intelligent way. Charging an electric car must be just as commonplace as charging a smartphone,” says Thomas Ulbrich, Member of the Board of Management of the Volkswagen brand responsible for E-Mobility. “Together with has·to·be, we want to open up and develop the rapidly growing business area of charging infrastructure. We will also be using has·to·be software ourselves. Throughout the Group, we will be installing about 36,000 charging points throughout Europe up to 2025. In future, charging will therefore be quicker and more convenient.”
Encore Capital Group, the London based investment firm, invested in Mildreds, the London based vegetarian and vegan restaurant chain. Financial terms were not disclosed.
Commenting on the investment, Shirin Gandhi, Partner at Encore, said: “We continue to invest in brands which capture consumer trends towards health and ethical values. We have been customers of Mildreds for over 20 years and recognise it as synonymous with Vegetarian & Vegan food in London and beyond, attracting a loyal following amongst the local population and international visitors to London. The brand has always been accessible and inclusive, not being defined by its vegetarian focus. Our aim is to build on the unique culture at Mildreds and we are excited by the potential for continued growth.”
Nokian Heavy Tyres, a manufacturer of high-quality commercial tires, acquires Levypyörä, a manufacturer of wheels and steel structures. Financial terms were not disclosed.
“Being a part of a leading specialty tire manufacturer gives us a great opportunity to further grow and develop Levypyörä products and services globally and strengthen our current customer and supplier relationships”, Lars Ojansuu, Levypyörä, Managing Director.
Russian national operator Rostelecom closed its acquisition of a stake in National Technologies. State-owned corporation Rostec now owns 51% of NT. Financial terms were not disclosed.
The new joint venture between the companies will be focused on development of support and supplies of software and hardware for data storage systems. The systems will be used for the implementation of the country's data retention law, also known as the anti-terrorism Yarovaya law.
Cortland, a real estate investment and managing company, acquires LIV Group, one of the earliest entrants to the Build-to-Rent sector. Financial terms were not disclosed.
"LIV Group shares our passion for the resident and is built upon a deep expertise in property management with a unique understanding of brand and culture. We felt an immediate kinship and saw a great opportunity to bring our resident-first rental experience to the UK, and our purchase of LIV will help accelerate that." Steven DeFrancis, Cortland CEO.
Arthur J. Gallagher, a global insurance brokerage, risk management, and consulting services firm, acquires Wales-based insurance brokers Adjusting Associates. Financial terms were not disclosed.
"Adjusting Associates is a highly respected business that expands Gallagher Bassett's UK client offerings and provides strong cross-selling opportunities," said J. Patrick Gallagher, Jr., Chairman, President and CEO of Gallagher. "I am excited to welcome Stephen, Andrew and their associates to our growing global team."
Teva Pharmaceutical looking to sell Oncotest.
Teva Pharmaceutical, an Israeli multinational pharmaceutical company, is set to sell Oncotest, which provides genetic testing services for adapting cancer treatment, to Israeli company Rhenium. The deal could be announced this week.
Oncotest, founded in 1998 by CEO Dr. Lior Soussan-Gutman, markets laboratory tests in Israel from all over the world in order to map malignant tumors and adjust treatments and clinical trials specific to the patient's tumor. Teva currently holds 100% of the company.
APAC
Commonwealth Bank of Australia (CBA), an Australian multinational bank completed the $2.9bn disposal of its Asset Management Business, Colonial First State Global Asset Management (CFSGAM), also known outside of Australia as First State Investments, to Mitsubishi UFJ Trust and Banking Corporation, a Japanese bank holding / financial services company.
CBA’s move was part of a strategy to focus on its retail and commercial banking businesses.
“We are committed to supporting CFSGAM’s strategy of delivering high-quality investment capabilities and establishing and maintaining strong client relationships. We look forward to working with CFSGAM as we continue to expand our investment management business and investment offerings globally.” Mikio Ikegaya, MUFJ President & CEO.
Davis Polk & Wardwell and Herbert Smith Freehills are advising CBA.
Macquarie Group, a leading alternative asset manager, acquires a 49% stake in Cubbie Station, one of Southern Hemisphere’s largest irrigation and cotton farms, from Shandong Ruyi, one of China’s largest textile manufacturers. Financial terms were not disclosed.
The agreement provides a stable and long-term ownership structure, providing continuity of employment for Cubbie’s 42 employees and supporting local communities in Dirranbandi, St George and surrounding districts.
"Under Ruyi’s ownership Cubbie has demonstrated a practice of active management of critical flows to benefit the environment and downstream users, so it’s very pleasing to find a like-minded partner in MIRA." Paul Brimblecombe, Cubbie CEO.
Foxconn looking to sell $8.8bn China plant.
Taiwan’s Foxconn, a multinational electronics contract manufacturing company, is exploring the sale of its new $8.8bn display panel factory in China. Foxconn’s discussions are at an initial stage and it has not yet come up with a price tag for the so-called Gen-10.5 facility specializing in large-screen LCDs.
Tencent looking to expand in South East Asia and Korea.
China’s Tencent Holdings, a multinational investment holding conglomerate, is scouting for partners in South Korea and Southeast Asia to offer cloud-based games, after entering the Japanese market last month.
Li Guolong, product manager at Tencent Cloud’s gaming solutions, said in an interview that the company particularly saw potential in Southeast Asia as its users there were less wedded to playing games on consoles such as Playstation and XBox.
Philex looking for partners for $1.1bn Silangan mine.
Philex, an electronics manufacturer in Bedford, is looking for joint venture partners to develop a $1.1bn Silangan mine in Surigao del Norte province. Philex chairman Manuel Pangilinan said the board earmarked $758m for capital expenditures to develop the Boyongan ore body, or the phase one of the Silangan project.
I-Mab Biopharma filed for US IPO.
I-Mab Biopharma, a Chinese drug developer, filed for US IPO as the company works on a private fundraising, Bloomberg reported. The listing could raise as much as $200m. The company is poised to raise about $30m to $40m in its latest funding round, valuing the business at $800m.
Sterling and Wilson Solar to launch $453m IPO.
DealStreetAsia reported that Shapoorji Pallonji Group’s solar engineering, procurement and construction business Sterling and Wilson Solar is looking to launch $453m IPO on August 6. While the net proceeds from the share sale would go to the promoters, the company said in its red herring prospectus that the promoters will utilize part of the proceeds for repaying certain loans of Sterling and Wilson Solar and Sterling and Wilson International Solar FZCO.
Son Kim Land raised $121m in financing. (FS)
Vietnamese property developer Son Kim Land closed another round of investment worth $121m from a consortium led by existing investors EXS Capital and ACA Investments, as well as new backer Credit Suisse.
“We are delighted to increase our investment into Son Kim Land more than five times from the initial investment in 2016,” commented Hiroyuki Ono, partner at ACA Investments.
Tiger Global led a $75m funding round in UrbanClap. (FS)
New York investment firm Tiger Global led a $75m funding round in UrbanClap, India's largest home service app. The round was joined by Steadview Capital and Vy Capital, UrbanClap said in a statement.
The transaction was split into two parts – a primary round which resulted in a share subscription by the said investors and a secondary share sale by some early institutional investors.
Rebel Foods raised $125m in funding. (FS)
Mumbai-based cloud kitchen startup Rebel Foods, which operates the Faasos brand, raised $125m in the ongoing Series D round from Coatue Management, Goldman Sachs, Indonesia’s Go-Jek, and others. Post investment, the company’s valuation is said to be $525m.
Swiggy looking to raise $750m.
Online food delivery startup Swiggy is in advanced stages of closing a $700-750m round led by existing investor Naspers. Naspers will provide around $350m, while a consortium of Korean investors, including STIC Investments and Korea Omega Investment, will together chip in with $50m. The round will value the Bengaluru-headquartered firm at around $4bn.
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