Private equity firm EQT Partners is to acquire Dellner Couplers, a global niche market leader in couplers, gangways and adjacent products for passenger rail rolling stock, for €716m ($808m). EQT will support Dellner and the management team with further investments in R&D and innovation initiatives and accelerate global growth by contributing EQT’s strong industrial expertise and network of Industrial Advisors.
Carl Johan Renström, Partner at EQT Partners and Investment Advisor to EQT VIII, said: “The passenger rail market is resilient and growing, and Dellner is uniquely positioned with significant potential. EQT is deeply impressed with what the Dellner management team has achieved and looks forward to supporting the team to further develop the company.”
White & Case and Carnegie advised Dellner.
A consortium consisting of private equity firms TPG Capital, CICC and Trail Capital acquired a 30% stake in APM Monaco, a leading contemporary jewelry brand. Financial terms were not disclosed.
"TPG Consortium is the ideal leading global partner to continue to develop our contemporary luxury vision," said Philippe Prette, founder and CEO of APM. "TPG's unique expertise in growing iconic brands and their belief in our innovative products and business model make them an excellent partner to work with, and at the same time, China Synergy and Trail bring their respective strengths in China and Europe. We look forward to the opportunities that lie ahead of us as we expand domestically and globally optimizing our strengths with their expertise while keeping the strong identity and values of the brand."
Cleary Gottlieb Steen & Hamilton advised the consortium. Paul Weiss Rifkind Wharton & Garrison, LPA-CGR and Natixis advised APM Monaco.
Pernod Ricard, a French company that produces alcoholic beverages, acquired the Italian super-premium gin brand Malfy from Biggar & Leith, which owns a small portfolio of fine spirits. Financial terms were not disclosed.
Christian Porta, Managing Director in charge of Global Business Development of Pernod Ricard: “This acquisition is true to our long-standing strategy of investing in brands with strong potential in growing categories. In line with the launch of our “Transform and Accelerate” strategic plan, we will continue actively managing our fantastic portfolio of brands.”
Bryan Garnier & Co, a leading European independent investment bank, acquired Norway-based Beringer Finance, a premier, Nordic-focused boutique investment bank with offices in Stockholm, Oslo, Reykjavik and Palo Alto. Financial terms were not disclosed.
"The Nordics is one of the main European Technology and Life Sciences hubs where we have longstanding client relationships” commented Greg Revenu, Managing Partner of Bryan, Garnier & Co. “This combination not only creates an exciting opportunity for the firm and its teams but also a unique capacity to support the growth of our clients: it propels our Technology coverage to the next level while opening a new challenge to our leading European healthcare franchise.”
General Atlantic-backed Property Finder, the leading real estate portal in the MENA region, acquired Bahrain Property World, a pioneering property portal in Bahrain. The acquisition follows a $120m investment by General Atlantic in Property Finder in November 2018. Financial terms were not disclosed.
Michael Lahyani, CEO and Founder of Property Finder Group, said: "This is one of three high-powered strategic moves since closing our latest round of investment led by General Atlantic. The first being the increase in our share in Turkish portal Zingat, and our recent acquisition of UAE competitor JRD Group. We are very happy to further instill our confidence in the Bahrain region and continue to invest in a market in which we see a lot of potential and have been present since 2013."
blufolio, the Swiss blockchain investment firm, invested in Swiss digital bank YAPEAL. YAPEAL is initially addressing a specific section of the Swiss consumer market, with strong potential for mid-term growth via a B2B proposition. Financial terms were not disclosed.
James Dougall, blufolio founding partner, describes how YAPEAL fits into blufolio’s investment philosophy: “Switzerland and Fintech are blufolio’s absolute cornerstone investment themes. YAPEAL fits perfectly into both. We always look for a clearly defined target market and ability to execute, which must both be given, in addition to a strong blockchain-related product and tech stack. YAPEAL delivers on all fronts. We look forward to accompanying them on their growth path.”
Shareholders of NIC Group, a Kenyan bank, approved the merger with the Commercial Bank of Africa, paving the way for the two companies to create the third-biggest bank by assets in East Africa. The deal was first announced in January.
“I’m delighted that our shareholders share our vision and have overwhelmingly supported this important merger that will create a leading Tier 1 bank,” NIC’s Chairman James Ndegwa said in a statement.
Trafigura, one of the world's leading independent commodity trading companies, and Altis Group, a global trading and logistics house, formed a joint venture to create a commodity petrochemical trading business, with a focus on bulk liquid chemicals. Financial terms were not disclosed.
“We believe that the time is right to start exploring the potential of this market,” said Trafigura senior manager Tom Jay. “The market for petrochemicals is expected to grow significantly over the next few years, with Altis well placed to capture a share of this market by bringing an experienced team combined with Trafigura’s global footprint, resources and infrastructure to connect buyers with sellers.”
Commerzbank staff oppose merger with Deutsche Bank.
A recent survey conducted among employees of Commerzbank showed that 83% of them are against a merger with Deutsche Bank. Germany’s two largest banks said in March they were in talks to merge, a deal that unions have said could result in the loss of 30k jobs. A similar survey at Deutsche Bank showed a smaller opposition of 70%.
Saudi Aramco looking to buy Shell’s stake in their refining joint venture and Reliance’s petrochemical unit.
Saudi Aramco, a Saudi Arabian national petroleum and natural gas company, is looking to buy Royal Dutch Shell’s 50% stake in Saudi refining complex SASREF, a joint venture between the firms formed in 1985. The companies are rumored to be close to reaching an agreement.
The Saudi Arabian conglomerate is also in talks to acquire up to a 25% stake in Reliance Industries’ refining and petrochemicals businesses. The deal could be valued at approximately $10-15bn.
Goldman Sachs is advising Saudi Aramco on the talks with Reliance.
Chryasor closing in on North Sea assets deal with Conoco. (FS)
Chrysaor, an oil exploration company backed by private equity firm EIG Global Partners, is nearing a deal to buy ConocoPhillips’ British North Sea oilfields. Chrysaor and Conoco have agreed on the main terms of the acquisition in recent weeks but the deal, expected to be signed in the coming days, could still fall through. The assets being acquired are valued at approximately $2.8bn.
BMO and Jefferies are advising Chrysaor.
EQT Partners looking to sell a minority stake privately as an alternative to IPO. (FS)
Swedish private equity firm EQT Partners is considering a potential sale of a minority stake as an alternative to the IPO. Dyal Capital Partners, which buys minority equity stakes in asset managers, is rumored to be among investors that have shown interest in EQT.
Goldman Sachs, Morgan Stanley, JP Morgan and SEB are advising EQT.
Reliance Industries entered talks to buy Hamleys.
Reliance Industries, an Indian conglomerate holding company, is in talks to acquire British toy retailer Hamleys. Reliance Retail, the retail arm of billionaire Mukesh Ambani-owned Reliance Industries, is rumored to be aggressively pursuing the deal. Chinese fashion retailer C.banner International Holdings, which bought Hamleys for £100m ($130m) in cash in 2015 has recently been looking to offload the company.
Mediaset in talks about a cross-border merger.
Reuters reported that Italian media group Mediaset is in talks “with everyone” about a potential cross-border merger deal. Marina Berlusconi, chairman of Fininvest, the largest shareholder of Mediaset, said that Mediaset and Fininvest are “absolutely in favor” of a tie-up, adding however that Mediaset’s shareholder Vivendi would not be part of a potential merger.
Deutsche Bahn to sell Arriva to cut debt.
German railway operator Deutsche Bahn is looking to offload its British subsidiary Arriva to reduce its €1bn ($1.1bn) debt pile. A draft resolution of Deutsche Bahn’s supervisory board said that both a partial and a complete sale were options and added that management saw significant disadvantages if only a minority stake in Arriva is put up for sale.
The US Justice Department told T-Mobile and Sprint Corp that it had concerns about their proposed merger in its current structure, although no final decision on the deal has been made. The deal had been criticized by consumer advocates and some lawmakers because it would reduce the number of national wireless carriers available to consumers to three from four.
T-Mobile and Sprint announced their agreement in April 2018. Upon completion of the transaction, it is expected that Deutsche Telekom, owner of T-Mobile, Softbank, owner of Sprint, and the public will hold approximately 42%, 27% and 31% of the newly formed company respectively.
Sprint Corp is being advised by Centerview Partners, JP Morgan, Mizuho, SMBC, The Raine Group, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett and Skadden Arps Slate Meagher & Flom. SoftBank is being advised by Morrison & Foerster on legal matters. Deutsche Telecom is being advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, Hogan Lovells, DLA Piper, Latham & Watkins, Richards Layton and Finger and Wachtell Lipton Rosen & Katz.
The White House said that it would not turn over documents that could show whether president Donald Trump sought to intervene in the regulatory review of AT&T’s $85bn acquisition of Time Warner. Under the terms of the merger, which was announced in October 2016 and closed in June 2018, Time Warner shareholders received 1.437 shares of AT&T common stock, in addition to $53.75 in cash, per share of Time Warner. As a result, AT&T issued 1.185m shares of common stock and paid $42.5bn in cash.
Allen & Company, Citigroup, Morgan Stanley, Cravath Swaine & Moore and Herbert Smith Freehills advised Time Warner. Morrow Sodali, Bank of America Merrill Lynch, JP Morgan, PWP, Arnold & Porter Kaye Scholer, Sullivan & Cromwell and Brunswick Group advised AT&T. Bank of America Merrill Lynch and JP Morgan provided debt financing and were advised by Weil Gotshal and Manges and Simpson Thacher & Bartlett.
Apollo Global Management, a leading global alternative investment manager, acquired Smart & Final Shops, a leading value-oriented food and everyday staples retailer, for $1.1bn. The $6.50 per share cash offer represents a premium of approximately 25% over Smart & Final's average closing share price over the past 24 trading days since the company's earnings announcement on March 13, 2019.
Kenneth Tuchman, Chairman of the Strategic Review Committee of Smart & Final's Board of Directors who led a strategic review process, commented: "This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board of directors over many months. Our board, with the assistance of independent financial and legal advisors, determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our stockholders."
Kirkland & Ellis, Gibson Dunn & Crutcher, Citigroup, Jefferies and Centerview Partners advised Smart & Final Shops. Morgan Lewis & Bockius and Paul Weiss Rifkind Wharton & Garrison advised Apollo Global Management.
Smith & Nephew, the global medical technology business, completed its $660m acquisition of Osiris Therapeutics, a fast growing company delivering regenerative medicine products, including skin, bone graft and articular cartilage substitutes. The purchase price represented a 37% premium over the 90-day volume weighted average price of Osiris' shares. The deal was announced on March 12.
Namal Nawana, Chief Executive Officer, Smith & Nephew, said: "Greater presence in the fast-growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer-term innovations in additional channels and indications. We sought out a fast growing portfolio with strong clinical evidence addressing critical needs in the marketplace."
Cantor Fitzgerald and Hogan Lovells advised Osiris Therapeutics. Paul Weiss Rifkind Wharton & Garrison and FTI Consulting advised Smith & Nephew.
An investor group led by private equity funds managed by Blackstone Group sold Cloverleaf Cold Storage, the fifth largest cold storage provider, to Americold, the world’s largest publicly traded REIT focused on the ownership, operation and development of temperature-controlled warehouses, for $1.2bn.
“We welcome Cloverleaf to the Americold family. We have long admired Cloverleaf, the families that founded them and the associates that helped earn them a great reputation in our industry. We have a similar degree of respect for Zero Mountain, which was recently acquired by Cloverleaf. We will accelerate and enhance Cloverleaf’s recently implemented initiatives by leveraging Americold’s commercial platform, institutional quality management and the Americold Operating System,” said Fred Boehler, President and Chief Executive Officer of Americold Realty Trust.
Kirkland & Ellis, Deutsche Bank and Wells Fargo advised Blackstone and Cloverleaf. Bank of America Merrill Lynch, Goldman Sachs and King & Spalding advised Americold.
CIVC Partners, a Chicago-based middle market private equity firm, invested in Computer Aided Technology, a leading provider in 3D design and engineering solutions. Financial terms were not disclosed.
John Compall, a partner at CIVC, commented: "CATI is one of the leading providers in the highly attractive 3D design technology industry. We are looking forward to our partnership with Rich, Rod, and the rest of the CATI management team to support the company in accelerating organic growth and pursuing strategic acquisitions.”
Kirkland & Ellis advised CIVC. Lincoln International and Troutman Sanders advised Computer Aided Technology.
symplr, a leading healthcare governance, risk and compliance software-as-a-service platform, backed by Clearlake Capital and SkyKnight Capital, acquired Intellisoft, a leading provider of medical credentialing, provider enrollment, and contract management software. Financial terms were not disclosed.
"symplr's acquisition of IntelliSoft represents an exciting growth opportunity for both of our businesses," said Rick Pleczko, CEO, and Tres Thompson, COO & CFO, of symplr. "The combination of our technologies and services offers even greater regulatory compliance and increased operational efficiency to healthcare providers and payers. Together, we look forward to delivering the most innovative solutions as we serve the unique and evolving needs of our customers."
Frazier Healthcare Partners, a leading provider of private equity capital to healthcare companies, agreed to acquire Comprehensive Pharmacy Services, a leading provider of enterprise pharmacy solutions to hospitals and health systems. Financial terms were not disclosed.
“Frazier is very pleased to have led this significant investment in CPS,” said Ben Magnano, Frazier General Partner. “We see this particular sector as having considerable headroom for growth as hospitals and health systems look for ways to better manage drug costs, solve pharmacy staffing challenges, and improve patient care. CPS is a leader in providing inpatient and outpatient pharmacy management services and we are delighted to be partnering with them. This new investment for Frazier continues to leverage a long-standing thesis we have held with regard to opportunities around hospital outsourcing.”
Private equity firm Bridges Fund Management invested in opioid treatment program provider Sunrise Treatment Holdings. Sunrise provides medication-assisted treatment and behavioral counseling programs to individuals suffering from opioid use disorder, treating patients through five clinics in Ohio. Financial terms were not disclosed.
Ed Niemczyk, Investment Director at Bridges, commented: “Opioid addiction in the US continues to grow, keeping a segment of the population in a cycle of dependence, pain and at risk of overdose. Access to high-quality medication-assisted treatment combined with comprehensive counseling services offers a lifeline to individuals seeking to manage their recovery. These services, however, have not been widely accessible, particularly in Ohio, where the acuity of the epidemic has been alarming. We are thrilled to partner with Dr. Bill and the Sunrise team as it seeks to become an increasing part of the solution in the region.”
Stifel advised Sunrise.
Sverica Capital, a private equity investment firm, made a strategic investment in Stream Companies, a rapidly growing marketing solutions provider primarily serving the automotive industry. Financial terms were not disclosed.
“We are excited to partner with David and Jason to build upon their twenty-two years of continuous growth and industry-leading customer and employee satisfaction. The Stream team has created a compelling technology-enabled solution that provides unique value to its customers, thus positioning Stream for continued success,” said Jordan Richards, Managing Partner at Sverica.
New Mountain Capital considers selling Equian for $3.5bn. (FS)
Private equity firm New Mountain Capital is weighing a potential sale of its portfolio company Equian, a healthcare payment integrity solutions provider. The company could be valued at approximately $3.5bn. A final decision hasn’t been made and New Mountain could decide against pursuing a sale.
New Mountain bought Equian for $225m in 2015 from Great Point Partners. In conjunction with that deal, New Mountain merged Equian with Trover Solutions, a software and services company that had been owned by Abry Partners.
Qualcomm and Apple ended their litigation.
Financial Times reported that Apple and semiconductor maker Qualcomm have agreed to put an end to one of the longest-running and most expensive disputes in the tech industry. Soon after the news Intel, whose chips replaced the ones of Qualcomm in Apple phones, abandoned its plan to design chips for next-generation 5G smartphones.
In a joint statement, Apple and Qualcomm said that “all litigation between the two companies worldwide” had been dropped and that they had reached a six-year global patent license agreement and a multiyear chipset supply agreement. The deal also included a one-time payment from Apple to Qualcomm of an undisclosed amount.
Caixa looking to sell its stake in Petrobras.
Caixa Economica Federal, a Brazilian bank, said that it would sell its stake in Petrobras, a semi-public Brazilian multinational corporation in the petroleum industry. The bank currently owns 2.2% of Petrobras.
Caixa’s investment banking team along with Bank of America Merrill Lynch, Morgan Stanley and UBS are working on the transaction.
Seacoast Capital exited its investment in Stone Road. (FS)
Private equity firm Seacoast Capital exited its investment in Stone Road, a New England regional provider of commercial and residential heating oil and propane. Seacoast originally invested subordinated debt and preferred equity with warrants in the company in support of its acquisition of PitStop Fuels. Seacoast exited its Stone Road investment through a sale to a strategic acquirer and operator of propane and fuel distribution assets. No financial terms were disclosed.
Silverlake Partners to raise $750m for its third tech fund. (FS)
Private equity firm Silver Lake Partners is eyeing $750m for its third tech-growth credit fund, ramping fund size in an ultracompetitive market for middle-market technology. Silver Lake Waterman Fund III will target investments in pre-IPO, later-stage growth companies in the technology sector.
