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AMERICAS
Campbell Soup said on October 24 that its $2.3bn acquisition of Rao's owner, Sovos Brands was delayed until next year after the US Federal Trade Commission asked for more details on the deal, Reuters reported.
Campbell said the request for additional information by the FTC was part of the agency's review of the transaction and was a common feature of a regulatory review.
Light & Wonder, a corporation that provides gambling products and services, completed the acquisition of the remaining 17% stake in SciPlay, a developer and publisher of digital games, for $485m.
“Fully integrating SciPlay with Light & Wonder creates a more streamlined organization with the financial strength to accelerate our cross-platform strategy and deliver enhanced shareholder returns. SciPlay continues to achieve record-setting results and market outperformance, and we are confident that together we will build on their considerable momentum. As one company, we will drive improved collaboration between our talented teams to build and deploy the most engaging games across our digital and land-based platforms and create a more seamless, best-in-class player experience,” Matt Wilson, Light & Wonder President and CEO.
Stonepeak, an alternative investment firm, agreed to acquire Akumin, an outpatient diagnostic imaging services provider, for $600m.
"Stonepeak is committed to working closely with Akumin as it moves through this process. The critical nature of the services Akumin provides to health systems, hospitals, physician groups, and patients all across the country gives us confidence in the inherent value of the business, and we believe that this path forward will fortify the company's balance sheet as it looks towards its next phase of growth," James Wyper, Stonepeak Senior Managing Director.
Akumin is advised by AlixPartners, Leerink Partners, Dorsey & Whitney, Jackson Walker and Stikeman Elliott. Stonepeak is advised by Moelis & Co and Sidley Austin.
Hildred Capital, a healthcare focused growth equity firm, agreed to acquire Hello Bello, an online store that offers goods for children. Financial terms were not disclosed.
"Given macroeconomic trends, including inflation and increased shipping costs, we believe that this course of action is the best path forward to ensure that Hello Bello continues to bring families the highest quality and most environmentally friendly products at affordable prices," Erica Buxton, Hello Bello CEO.
Hello Bello is advised by Emerald Capital Advisors, Jefferies & Company, Willkie Farr & Gallagher, and Young Conaway Stargatt & Taylor. Hildred Capital is advised by Alvarez & Marsal and Lowenstein Sandler.
Bell Media, a media conglomerate that is the mass media subsidiary of BCE, agreed to acquire Canadian business from OUTFRONT Media, an outdoor media company, for $300m.
"The sale of our Canadian business highlights the value of our assets and will provide us with additional financial flexibility as we focus on our US assets. While we will miss our Canadian colleagues, we know the business we have built together will be in excellent hands with Bell Media," Jeremy Male, OUTFRONT Media Chairman and CEO.
Bell Media is advised by National Bank Financial and Blake Cassels & Graydon. OUTFRONT Media is advised by Solomon Partners, Cravath Swaine & Moore (led by Robert I. Townsend, Keith Hallam, and Sanjay Murti), and Davies Ward Phillips & Vineberg.
AMN Healthcare, an innovator in total talent solutions for healthcare organizations, agreed to acquire MSI, a healthcare systems provider, and DRW, a company that specializes in psychiatry, anesthesia, and surgery, for $300m.
“We are very excited to welcome the MSDR team into the AMN Healthcare family and expand the workforce solutions available to our clients across the country. Now more than ever, it is critically important that healthcare systems have streamlined access to the services, technologies, and healthcare professionals needed to support the patients and communities they serve. This acquisition is the result of our continued dedication to meet the needs of our clients, who I am confident will see the breadth and value of our services increased with this acquisition of MSDR," Cary Grace, AMN Healthcare President and CEO.
Medical Search is advised by Nolan & Associates and Morgan Lewis & Bockius (led by Greer Longer). AMN Healthcare is advised by Wells Fargo Securities and Sheppard Mullin Richter & Hampton (led by Daniel Belzer).
Sixth Street, an investment firm, led the investment in Keyfactor, a security solution for modern enterprises. Financial terms were not disclosed.
“This investment marks a significant milestone in our company’s history. The newly acquired capital from Sixth Street will fuel our business as we continue this trajectory of hypergrowth. Our market leadership is a testament to the innovation backing our technology and our team’s commitment to customer satisfaction. We are also excited to welcome Sixth Street to our board. They bring the right experience, financial prowess, and strategic network we need to empower Keyfactor in this next chapter," Jordan Rackie, Keyfactor CEO.
Insight Partners was advised by Evercore and JP Morgan. Keyfactor was advised by fama PR (led by Nina Korfias).
Kingswood Capital, a private investment firm, completed the acquisition of Covenant Testing Technologies, a construction company that provides services such as flowback and well testing. Financial terms were not disclosed.
"We are thrilled to partner with James Stewart again on this exciting opportunity. We have a longstanding relationship with James and believe his extensive relationships and deep industry experience, including his leadership at large service companies, such as Nextier, will drive significant profitable growth at Covenant. Doug Scott's operational expertise will optimize efficiencies and quality across Covenant's operations," Alex Wolf, Kingswood Managing Partner.
Kingswood Capital was advised by Grant Thornton and Goodwin Procter.
Watts Water Technologies, a manufacturer and provider of plumbing, heating and water quality products and solutions, completed the acquisition of Bradley, a provider and manufacturer of commercial washroom and emergency safety products, for $303m.
“We are thrilled to welcome the Bradley team to Watts. The closing of this transaction is the first step to realizing the significant value of combining two innovative businesses with over 250 years of collective industry experience. I want to thank the teams at Watts and Bradley for their efforts to get us to closing today and helping to ensure a smooth, effective transition as we integrate Bradley with Watts," Robert J. Pagano, Watts Water CEO.
Atlas Venture, a venture capital firm, Bain Capital Life Sciences, a private investment firm, Forbion, a venture capital firm, and Sofinnova Investments, a venture capital firm in life sciences, led a $245m Series A round in Aiolos Bio, a clinical-stage biopharmaceutical company, with participation from RA Capital Management.
"Aiolos has a unique opportunity to positively impact patients’ asthma outcomes. I’m excited for the opportunity to lead this innovative Company and the wealth of experience our talented team brings to bear, from operating large-scale clinical trials in asthma, to overseeing more than 30 FDA approvals, to leading successful product launches in immune conditions like asthma, rheumatoid arthritis, and IPF,” Khurem Farooq, Aiolos Bio Co-Founder and CEO.
Aiolos Bio was advised by Stanton PRM (led by Scott Lessne).
Xtant Medical, a medical technology company focused on surgical solutions for the treatment of spinal disorders, completed the acquisition of nanOss production operations from RTI Surgical, a leading CDMO in regenerative medicine. Financial terms were not disclosed.
“nanOss is an important part of our total orthobiologics offering, and having full control over this product line enables us to begin the process of reviving and growing it. This deal satisfies each element of our acquisition criteria and positions us to improve our manufacturing capabilities, capacity and cash flows," Sean Browne, Xtant Medical CEO.
Xtant Medical was advised by Finn Partners (led by David Carey).
PSG, a growth equity firm, led the investment in AirWorks, an AI-powered mapping solution providing geospatial data processing and analytics. Financial terms were not disclosed.
“Our momentum reflects what we believe is a strong market opportunity for AirWorks and our mission to provide AI-driven data intelligence that helps to power the built world. By partnering with PSG, I have no doubt that we will continue building a company with a product that helps to fundamentally change how customers analyze geospatial data and leverage AI to drive critical workstreams to completion. We’re excited to have PSG’s support as we continue to execute on our strategic growth plans," David Morczinek, AirWorks CEO and Co-Founder.
IFF mulls $3.5bn sale of pharma solutions business.
Scents developer International Flavors & Fragrances is working with an adviser to explore a potential sale of its pharma solutions business, Bloomberg reported.
The unit could fetch more than $3.5bn in a sale. The business is expected to attract interest from peers in the space and private equity firms.
KKR nears $2.3bn private loan for PetVet recapitalization. (FS)
KKR is nearing a deal with a group of private credit lenders to refinance the entire debt load of its portfolio company PetVet Care Centers, Bloomberg reported.
The private equity firm is close to receiving a new $2.3bn unitranche loan from a group led by Blue Owl Capital. The loan pays an interest margin of 6% points over the Secured Overnight Financing Rate.
abrdn's plans £600m acquisition in First Trust. (FS)
abrdn's US arm is set to acquire £600m ($728m) closed-end fund assets from First Trust Advisors. Under the deal, the four closed-end funds will be merged into existing abrdn funds.
The move will boost abrdn's already considerable closed-end business, which, according to the company, currently manages £23.8bn ($28.9bn) in assets in US and UK listed closed-end funds.
Waud Capital forms new healthcare partnership with Brad Staley. (FS)
Waud Capital Partners, a growth-oriented middle-market private equity firm, announced it has formalized an executive partnership with Brad Staley to pursue a platform investment in the medical supply and device services market. Waud Capital anticipates investing over $100m of equity capital to support the initiative.
"I'm thrilled to partner with Waud Capital to identify and build an industry-leading business in the medical supply and device services market. Waud Capital's executive partnership approach, dedicated ecosystem resources, and differentiated insights across the healthcare market make the firm a highly attractive partner. I look forward to evaluating opportunities and leveraging my past experiences to create value for medical professionals and their patients," Brad Staley,
Goldman CEO David Solomon is uncertain about deals right now.
Goldman Sachs Group's top executive said he's uncertain about mergers and acquisitions in the current period while expressing optimism about a pick-up in dealmaking over the long term, Bloomberg reported.
"Long term, I'm certainly optimistic. But I'm uncertain right now," David Solomon, Goldman Sachs CEO.
US IPO market teetering on edge after fall class disappoints.
US initial public offerings had been forecast to rebound with high-profile listings like Arm and Birkenstock leading the way, setting up 2024 for a bigger listings comeback, Bloomberg reported.
After a rough ride in September and October, many IPO candidates are retrenching and reviewing whether to put their plans on hold.
Goldman Sachs AM closes fourth infrastructure fund at $4bn. (FS)
Goldman Sachs Asset Management announced the final close of West Street Infrastructure Partners IV and related vehicles at $4bn, consistent with its target, and is the latest in a series of flagship funds dedicated to investing in value-add, mid-market focused infrastructure.
"The WSIP IV fundraise reflects the strength, track record and breadth of our global infrastructure platform. We are grateful of the partnership from both our existing and new investors, and look forward to what is ahead for our franchise. We are excited about the performance of our portfolio to date, and remain committed to delivering consistent returns for our investors," Philippe Camu, Goldman Sachs AM Chairman of Infrastructure.
Brookfield AM explores raising funds for Middle East deals. (FS)
Brookfield Asset Management is exploring raising separate pools of capital to invest in the Middle East, as one of this year's most active dealmakers seeks to bolster its presence in the region, Bloomberg reported.
The Canadian firm, which currently invests in the region through its global funds, is studying options to raise dedicated money for Gulf deals. It's seeking capital for both private equity buyouts as well as real estate transactions.
EMEA
EU antitrust regulators will decide by November 28 whether to clear Danish food ingredients and enzymes makers Novozymes and Chr. Hansen's tie-up, Reuters reported.
The companies, which announced the deal in December last year, sought EU approval for the merger on October 20. The EU competition enforcer can decide to clear the deal with or without remedies after its preliminary review, or it can open a four-month-long investigation if it has serious concerns.
Chr. Hansen is advised by Goldman Sachs (led by Andre Kelleners), Baker McKenzie, Gorrissen Federspiel (led by Anders Ørjan Jensen), and Impact Partners. Financial advisors are advised by Freshfields Bruckhaus Deringer (led by Ethan A. Klingsberg). Novozymes is advised by Danske Bank, FIH Partners (led by Kasper Kristian Elton Koch), Gordon Dyal & Co (led by Gordon Dyal), Nordea Bank (led by Torben Hansen), Oxera, Davis Polk & Wardwell (led by Connie I. Milonakis and Will Pearce), Linklaters (led by Nicole Kar), Plesner (led by Thomas Holst Laursen), FGS Global (led by Charlie Chichester) and Point Communications. Financial advisors are advised by Simpson Thacher & Bartlett (led by Jakob Rendtorff).
Poltronesofa, a designer and manufacturer of household furniture, agreed to acquire ScS Group, a retailer of furniture and flooring, for £99m ($121m).
"As the next step of Poltronesofà's pan-European expansion, the acquisition represents the best opportunity for Poltronesofà to enter the United Kingdom market of upholstery products. Poltronesofà believes it is strategically very well placed to support ScS in the next stage of its development, and by building on the combined industry knowledge and experience and providing the necessary capital to accelerate ScS's ambitions, the acquisition will help ScS realise its full growth potential," Renzo Ricci, Poltronesofà CEO.
N Logistics, a company controlled by the Navios's Chairwoman and Chief Executive Officer, Angeliki Frangou, agreed to acquire Navios Maritime, an owner of a controlling equity stake in Navios South American Logistics, for $52m.
Navios Maritime Holdings owns a controlling equity stake in Navios South American Logistics, one of the largest infrastructure and logistics companies in the Hidrovia region of South America and an interest in Navios Maritime Partners, a US publicly listed shipping company which owns and operates dry cargo and tanker vessels.
Navios Maritime is advised by Jefferies & Company and Latham & Watkins. N Logistics is advised by S. Goldman Advisors and Fried Frank Harris Shriver & Jacobson.
Inpixon UK, a specialist in indoor mapping, positioning, security, and analytics for tracking and navigation, agreed to merge with Damon Motors, an electric motorcycle company, in a $284m deal.
"You can't be the future of anything if you're not better than the past. It is necessary for us to target performance metrics as good or better than anything achieved before, otherwise we won't see masses of people giving up their gas motorbikes for electric ones — people want to trade up in life," Jay Giraud, Damon Founder and CEO.
Damon Motors is advised by Joseph Gunnar, Dorsey & Whitney, Gowling WLG, and LMG PR (led by Donna Loughlin Michaels).
Sopra Steria, a provider of consulting and computer services, agreed to acquire the remaining 25% stake in Shared Services Connected, a provider of business transformation programs to the government and public sector, from Cabinet Office, an agency of the United Kingdom government, for £82m ($100m).
"With the shared service model now successfully embedded and proven, the Cabinet Office can realise its plan to sell its stake in the joint venture, making a significant contribution to the public purse and allowing Sopra Steria to continue our investment in the SSCL business. This is recognition of the success of Sopra Steria and SSCL, our people and our plans to further enhance, innovate and grow our services on behalf of civil service users," John Neilson, Sopra Steria CEO.
NEOM, a government administration firm that offers economic growth, progressive laws, a healthy foundation and innovative solution, and DSV, a transport and logistics company offering transport services globally by road, air, sea and train, agreed to form a $10bn joint venture.
"NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table," Jens Bjørn Andersen, DSV Group CEO.
Norway wealth fund posts $34bn loss in Q3 2023. (FS)
Norway's $1.4tn sovereign wealth fund, the world's largest, posted a loss of $33.8bn in the third quarter of 2023 as all asset classes fell in value, DealStreetAsia reported.
"The stock market saw a weaker quarter compared to the two previous quarters. It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return," Trond Grande, Deputy CEO.
HIG Capital weighs sale of Sportfive. (FS)
Buyout fund HIG Capital is preparing to put its sports management agency Sportfive up for sale, Reuters reported.
The Miami-based firm has hired Citi to explore a sale of the former Lagardere sports business, which manages media rights for events such as the World Aquatics and World Weightlifting Championships.
Two UK fintechs consider listing in London.
Two high-profile UK fintechs are weighing stock market listings in a move that could help London shore up its status as an international financial center, Bloomberg reported.
Starling Bank is considering starting preparations for an initial public offering and has received pitches from several investment banks including Rothschild & Co in recent weeks. Separately, a senior London Stock Exchange Group executive met with Thought Machine Chief Executive Officer Paul Taylor on the sidelines of a technology industry gathering last month to lobby him about a share sale in the UK.
London's newest listing flop ranks as worst IPO of the year.
The troubles keep piling up for new London listings. A 75% plunge in shares of CAB Payments on October 24, 2023 means the processor of currency transactions now ranks as the world's worst major initial public offering this year, Bloomberg reported.
The firm, which was valued at about $1bn when it listed in July, plummeted after saying it had been hit by changes to conditions in some "key currency corridors."
OQ Gas Networks soars after $749m IPO.
OQ Gas Networks rose 7% on its Muscat trading debut after raising $749m in its initial public offering, Oman's largest on record, Bloomberg reported.
Shares in the gas pipelines business of Omani state energy firm OQ opened at 159 baisas on October 24, up from the offer price of $412. They later pared those gains to close at $388. OQ sold about 2.1bn shares, or a 49% stake, in OQGN and the listing drew about $10.4bn in demand. That showed investor appetite for share sales in the Gulf remains strong, even after war flared up between Israel and Hamas earlier this month.
MC4 plans IPO next year. (FS)
Saudi Arabia's Milling Company 4 is planning a domestic initial public offering that could raise more than $200m, Bloomberg reported.
The firm is working with Himmah Capital on the potential listing which could come as early as next year.
Goldman, Citigroup drop off Investcorp Capital's Abu Dhabi IPO. (FS)
Goldman Sachs and Citigroup have dropped off the planned Abu Dhabi initial public offering of an investment vehicle backed by Investcorp, the Middle East's biggest alternative asset manager, Bloomberg reported.
The two US banks couldn't get internal approval for the IPO's price stabilization mechanism, which has never been attempted before in a United Arab Emirates listing.
AllianzGI raises €1bn for second infrastructure equity fund. (FS)
Allianz Global Investors has raised €1bn ($1.05bn) at the final close of its infrastructure private equity fund's second vintage. The Allianz Global Diversified Infrastructure Equity Fund II raised €550m ($581m) after its first close in May. It has now final-closed after receiving €1bn of capital commitments.
The fund is managed by the private equity subsidiary Allianz Capital Partners and focuses on themes such as the energy transition, digital transformation, sustainable mobility and the circular economy. Around 60% of its funds have already been committed to investments.
BaltCap first closes second infrastructure fund at €200m. (FS)
BaltCap, the largest private equity fund manager in the Baltics, held the first closing of its €200m ($212m) target BaltCap Infrastructure Fund II.
"The Baltic countries and Poland are facing an infrastructure funding gap of ca €250bn ($265bn) over the next 7 years. With the backing of international institutional investors, BInF II will seek to address this gap and finance infrastructure projects that increase energy security and contribute to climate change mitigation," Simonas Gustainis, BaltCap Managing Partner.
APAC
Templewater, a venture capital and private equity firm, agreed to acquire OncoCare Medical, a private oncology practice in Singapore, and Novena Heart Centre, a multi-disciplinary cardiology group practices, from Luye Medical Group, a global healthcare conglomerate. Financial terms were not disclosed.
"After an extensive eighteen-month search and evaluation process within the healthcare services space, we are fortunate to have reached agreements with these market-leading providers. We extend our gratitude to Luye Medical Group and the dedicated doctors for their tremendous efforts throughout the negotiation. As an active shareholder, Templewater is committed to supporting the doctors with our Capital and resources to facilitate the continued expansion of their practices in the region," Simon Chuk, Templewater Partner.
Luye Medical Group is advised by UBS.
Koramco, a real estate finance company, completed the acquisition of Majestar City Tower B in Seoul from Invesco Real Estate, a real estate investment business of Invesco, for $385m.
“Majestar was acquired six years ago and has delivered attractive risk adjusted returns to our investors. As active real estate managers, the selective and well-timed sale of assets to rebalance portfolios and realize embedded value is always a key element of our investment process, and our secular convictions mean we believe now is the right time to divest. The sale price achieved is almost double our original purchase price. We continue to manage a high-quality diversified portfolio with resilient performance, where leasing momentum and embedded value continues to drive performance," Ian Schilling, Invesco Real Estate Head of Core Funds.
Japan's Cosmo calls another shareholder vote in activist defence.
Cosmo Energy said it would call another shareholder vote in December to seek approval for a "poison pill" takeover defence against a group of activist investors, escalating the high-profile battle, Reuters reported.
Japan's third-biggest oil refiner, however, said it prevent the group, led by prominent activist Yoshiaki Murakami, from voting this time, unlike the previous vote in June, which had excluded the group's 20% voting rights.
Rusal secures China alumina supplies as Ukraine war drags on.
Russian aluminum giant Rusal International agreed to buy a 30% stake in a Chinese alumina plant to plug a gap in supplies of the key ingredient amid disruptions triggered by the invasion of Ukraine, Bloomberg reported.
The deal with Hebei Wenfeng New Materials marks a rare, direct investment by a Russian firm in China's metals sector, and the first significant foreign acquisition by a major Russian company since the war began. Rusal will "gain access to alumina at a competitive cost and secure its key raw-material supply".
Midea Group files for Hong Kong listing.
Midea Group, China's largest home appliance maker, has filed for a Hong Kong listing that could be among the city's biggest in recent years, Bloomberg reported.
The Shenzhen-traded firm has chosen Bank of America and China International Capital as joint sponsors of the offering. Midea is aiming for a listing in the city as soon as next year.
KKR poised for Kokusai payoff with biggest Japan IPO since 2018. (FS)
Kokusai Electric is set to go public on the Tokyo Stock Exchange on October 25, 2023, in Japan's biggest initial public offering since 2018, marking a success for KKR's buyout of the semiconductor-equipment company, Blomberg reported.
The American private equity firm acquired the business from Hitachi Kokusai Electric through a tender offer in 2018, an early experiment in whether foreign buyout shops could successfully acquire pieces of unwieldy Japanese conglomerates and improve their performance.
Byju's CFO Goel returns to Vedanta to oversee restructuring. (People)
Vedanta has picked the chief financial officer of edtech titan Byju's to replace the current finance head, as Anil Agarwal's mining conglomerate undergoes an ambitious restructuring, Bloomberg reported.
Ajay Goel will be returning to Vedanta, which he had quit six months ago, effective October 30. He will help with splitting the metals firm into six listed companies as part of a restructuring process.
Bain hires ex-Goldman manager for Asia property investing. (FS, People)
Bain Capital hired a former Goldman Sachs Group real estate executive in Japan as the US buyout fund accelerates investments in property assets across Asia, Bloomberg reported.
Man Kinoshita, a former managing director at Goldman Sachs's Japan office, has joined Bain as a Tokyo-based partner. Kinoshita had previously been involved in asset management at Goldman.
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