AMERICAS
Drugmaker Mylan’s merger with Pfizer’s off-patent branded drug unit, Upjohn, will now close in the second half of this year, the companies said, blaming the coronavirus pandemic for the delay.
Due to restrictions on large gatherings, the general meeting of shareholders to approve certain matters for the deal to go through has been postponed to June 30.
Mylan is advised by Centerview Partners, PJT Partners, Cravath Swaine & Moore, Stibbe, Wilson Sonsini Goodrich & Rosati, Fangda Partners, NautaDutilh and Sard Verbinnen. Pfizer is advised by Goldman Sachs, Guggenheim Partners, Davis Polk & Wardwell, De Brauw Blackstone Westbroek and Wachtell Lipton Rosen & Katz. Goldman Sachs is advised by Sullivan & Cromwell.
Advance Publishing, a business holding company, and Orkila Capital, an investment management service provider, are set to acquire The IRONMAN Group, a portfolio of events from Wanda Sports Group, a sports events, media and marketing platform in a c. $700m deal.
"Today is an important milestone for The IRONMAN Group. We are pleased with this partnership, which is a testament to Advance's belief in the company. We thank Wanda Sports Group for its support over the past four years and are proud of what we have accomplished together. We look forward to continuing our work in China with Wanda Sports Group in the coming years," Andrew Messick, The IRONMAN Group CEO.
Advance is advised by Bank of America Merrill Lynch and Sullivan & Cromwell. The IRONMAN Group and Wanda Sports Group are advised by Credit Suisse and Reed Smith.
OLX Group-backed letgo and OfferUp, two classifieds business services providers, are set to merge their US classifieds businesses. Financial terms were not disclosed.
The deal is subject to regulatory approval. The combined businesses will be operated by OfferUp. OLX Group will own 40% of the combined entity.
"letgo and OfferUp have always shared the same core vision for how large America's secondhand economy can become – harnessing tech innovation to bring about an extraordinarily positive impact on consumers' wallets and also on the environment. Bringing our apps together moves us much closer to that vision," Alec Oxenford, letgo Co-Founder.
letgo is advised by Cravath Swaine & Moore and Morrison & Foerster. OfferUp is advised by Allen & Company and Perkins Coie.
GTS, an electronic market manufacturer, completed the acquisition of equity options trading division of Barclays. Financial terms were not disclosed.
As part of the transaction, approximately 40 Barclays personnel became full-time GTS employees. In total, the business trades approximately 2% of all exchange-traded equity options volume in the US.
"The data-driven, pricing precision of GTS is more important than ever in today’s unpredictable and highly volatile market environment. As has been reinforced during the current crisis, superior trading technology is essential to market participants and the overall functioning of our capital markets,” Ari Rubenstein, GTS Co-Founder and CEO.
GTS was advised by Rosenblatt Securities and Profile Advisors.
Riverside Partners, a private equity firm, agreed to acquire Red Nucleus, a provider of full-service design and development of learning solutions for the life sciences industry, from Renovus Capital Partners, an American private equity firm. Financial terms were not disclosed.
“Renovus has been an incredible partner to me and my business, and our success would not have been possible without their strategic advice and encouragement. I’m pleased that they have chosen to stay involved for the next evolution of the Company,” Ian Kelly, Red Nucleus founder and CEO.
Red Nucleus is advised by DLA Piper and Cherry Bekaert.
Skyfire Consulting, a public safety UAV consulting company, completed the acquisition of Viking UAS, a drone design and manufacturing house. Financial terms were not disclosed.
"Viking prides itself on state-of-the-art design, testing and manufacturing high-end unmanned systems for military and civilian applications. Adding Skyfire's industry-leading sales, marketing, and trusted relationships with critical partners only made sense as a way to bring our capabilities to those outsides of the defense sector," Chris Taylor, Viking Founder.
Skyfire Consulting was advised by 4pr Group.
Bolthouse Farms, a grower and distributors of carrots, is set to acquire the carrot growth and agricultural operations of Rousseau Farming Company, an agricultural processing company. Financial terms were not disclosed.
"This acquisition will help us scale to serve our customers better by bringing more fresh and healthy, locally grown carrots to them in the Southwest. We've had a longstanding relationship with the Rousseau family and are committed to partnering with companies that share our core values of sustainability, product quality and customer service. We look forward to continuing to grow our businesses and support the industry together," Jeff Dunn, Bolthouse Farms CEO.
Dominion Energy, a power and energy company, completed the acquisition of Pivotal LNG, a liquefied natural gas distributor for marine and road transportation, from Southern Company, a gas and utility holding company, for $175m.
“The acquisition of Pivotal LNG will play an important role in our broader strategy to help decarbonize the marine shipping industry. The acquisition of Pivotal and our existing Cove Point LNG facility in Maryland positions us well to lead the transformation of the marine industry and to serve other growing LNG markets along the east coast,” Roger Williams, Dominion Energy Vice President.
Leeds Equity eyes raising $1bn Fund VII. (FS)
Leeds Equity Partners, the education and training-focused buyout house, is eyeing up to $1bn for Fund VII, well above the $750m it collected for Fund VI two years ago.
New York-based Leeds invests exclusively in the education, training, information services, and software sectors. The firm closed its fifth flagship fund on $525m in 2010 and raised $430m for Fund IV back in 2004.
UBS is acting as a placement agent for the fundraise.
Origami closed oversubscribed Fund IV at $520m. (FS)
Origami Capital Partners, a private equity firm focused on opportunistic special situations, held the final closing of Origami Opportunities Fund IV with $520m in capital commitments.
Origami offers flexible and creative capital solutions for illiquid assets trapped in complex structures. Origami solves challenges for its deal partners across industries, asset classes and throughout capital structures.
Metric Point Capital acted as the exclusive placement agent for the fundraise.
GRO Capital, a private equity firm, agreed to acquire a majority stake in Queue-it, a virtual waiting room software application. Financial terms were not disclosed.
“GRO brings a unique combination of competencies that will support our international expansion. The need for web performance solutions is rapidly increasing across markets as more and more online activities happen in peaks, which is exactly what our SaaS is built for,” Lars Dybkjær, GRO Capital Managing Partner.
Queue-it is advised by Hampleton Partners.
Xerox completed the acquisition of two software service providers Altodigital and ITEC Connect. Financial terms were not disclosed.
“Altodigital is joining Xerox on its incredible journey as it undergoes a digital-first transformation and invests in customer-focused innovation. We share Xerox’s vision to broaden the range of services and technologies available to SMBs requiring a modern work experience,” James Abrahart, Altodigital CEO.
Mitsubishi considers taking Renault stake in alliance rejig.
Japan's Mitsubishi could potentially invest in Renault as part of scenarios being discussed to reinforce an alliance between the French carmaker, Nissan and Mitsubishi Motors, Reuters reported.
Mitsubishi, a conglomerate with a 20% holding in Mitsubishi Motors, could take a 10% stake in Renault. It said this was one scenario of many under discussion, which could also include restructuring plans and fresh cost savings schemes.
Relations between Renault and Nissan took a turn for the worse following the arrest in Japan of former alliance supremo Carlos Ghosn in late 2018.
UK's CMA investigates $121m acquisition of Osurnia business of Elanco by Dechra Pharmaceuticals.
The UK's Competition and Markets Authority is investigating the anticipated $121m acquisition of the Osurnia business of Elanco Animal Health by Dechra Pharmaceuticals, a developer and marketer of veterinary products.
Dechra said it was acquiring the worldwide marketing rights, the rights to the intellectual property, the marketing authorisations and associated regulatory documentation, supply contracts with third parties concerning the raw material and manufacture of the finished product, and some existing inventory of the product.
"The CMA has decided to investigate this transaction and is inviting comments. The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002. And, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services." CMA
CEO of Telecom Italia remains confident, as Elliot reduces its stake. (FS)
Luigi Gubitosi, CEO of Telecom Italia, said that network is capable of dealing with the wave of traffic caused by the coronavirus outbreak, as Elliot Management lowered its stake the group.
"TIM's network is well-built. It is very solid and stable and can hold additional traffic with no problems," Luigi Gubitosi.
His remarks came after Elliot cut its stake from 9.72% to 6.97%. TIM's shares declined by 4.2%. Elliott reportedly remains loyal to Telecom Italia despite its stake reduction.
APAC
China Xiangtai Food, an animal processing company, agreed to acquire a majority stake in Chongqing Ji Mao Cang Feed, a private enterprise specializing in feed raw material sales and feed formula solutions. Financaial terms were not disclosed.
"We are pleased to have an opportunity to start a partnership with a Nasdaq listed company, and it is regarded as an essential milestone in JMC's history. JMC stands to benefit greatly from PLIN's senior experience and resources in the food industry, and values PLIN's continued involvement as we look to further expand JMC's profitability with the development of production capability and enhancements to our distribution channels," Jiaping Zhou, JMC General Manager.
China Xiangtai Food is advised by Ascent Investor Relations.
KYOCERA, a manufacturer of ceramics, is set to acquire a 94% stake in Showa Optronics, an optical components manufacturer, from NEC, a Japanese multinational information technology and electronics company. Financial terms were not disclosed.
In acquiring SOC as a subsidiary, Kyocera aims to become a leading optical components company by expanding its new product offerings in the laser market, maximizing synergies through both companies’ combined technologies, and utilizing Kyocera’s worldwide sales network and production facilities to further expand its optical components businesses.
Minsheng Education Group, a Chinese education services provider, agreed to acquire TCL Educational Web, an online education platform, from TCL, a partially state-owned Chinese multinational electronics company, for $59m.
Minsheng considers the online and offline education integration as “the primary industry trend” in line with the national policy orientation and the company’s “campus education plus online education” strategy, it said. After the transaction, Minsheng will indirectly hold 80% shares in Chinese distance examination service Silk Road, which operates an online examination site for the Chinese Proficiency Test network, and another 50% stake in China’s largest distance education service provider, Open Distance Education.
EU claims Johnson & Johnson's deal for Takeda patch may harm competition.
EU antitrust regulators opened a full investigation into Johnson & Johnson’s acquisition of Takeda Pharmaceutical’s surgical patch product TachoSil, concerned that the deal could lead to reduced choice and higher prices for customers.
Takeda, Japan’s biggest drugmaker, announced the sale of TachoSil, a surgical patch for bleeding control, to US giant Johnson & Johnson’s subsidiary Ethicon for $400m last May.
Australian firms use legal clause to exit M&A amid virus.
Three listed companies this week triggered so-called material adverse change clauses that can be invoked to end or renegotiate deals, as the Covid-19 pandemic has paralyzed businesses and sent markets crashing.
"Companies invoking the Material Adverse Change clauses to call off deals is a question of when not if," Nandakumar Ponniya, Baker McKenzie Asia Pacific head of international arbitration practice.
AirAsia examines prospects for the long-haul unit. (FS)
AirAsia Group is looking for ways to support its AirAsia X unit either through financial investors and bond issuance or Khazanah Nasional, Malaysia's sovereign wealth fund. It also considers the integration of AirAsia X into the group and foreclosure, Bloomberg reported.
AirAsia, founded by entrepreneur Tony Fernandes, has been discussing strategic options with investment banks for the long-haul unit, which incurred $113m of net losses in 2019. AirAsia X faced difficulties in November when the US forbade Malaysian carriers to add new paths on its territory.
Hony Capital partners with state-owned People Capital to launch $281m fund. (FS)
Chinese private equity major Hony Capital inked an agreement with People Capital, the investment platform of state-owned publication People's Daily Online, to debut a CNY2bn ($281m) fund to back companies in the digital content field.
Yuexiu Group and PICC set up $422m Greater Bay Area fund. (FS)
Chinese state-owned conglomerate Yuexiu Group, and the People's Insurance Company of China, which is controlled by the central government, jointly set up their first industry investment fund at CNY3bn ($422m) for investments in the Greater Bay Area.
The new fund is the first investment platform to be followed by the launch of a series of flagship funds between the two parties for investment opportunities in the Greater Bay Area. The vehicles will amount to a combined capital pool of CNY10bn ($1.41bn).
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