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AMERICAS
Paramount Global is poised to defeat a demand to turn over internal files to a pension fund that's raising questions about its $8.4bn deal with Skydance Media that shifts control of the storied Hollywood studio to producer David Ellison, Bloomberg reported.
The Employees' Retirement System of Rhode Island, which owns Paramount shares, wants to know whether Paramount's controlling shareholder Shari Redstone could have cut a better deal for minority investors. The fund seeks assurances that Paramount directors got the best price for the owner of CBS, MTV and other TV channels from Ellison, who is the son of Oracle Chairman Larry Ellison.
Paramount is advised by Centerview Partners, Rothschild & Co (led by David Baron), Cravath Swaine & Moore (led by Faiza Saeed), Simpson Thacher & Bartlett (led by Eric Swedenburg) and Brunswick Group (led by Jonathan Doorley and Nik Deogun). Skydance Media is advised by Bank of America, Moelis & Co, RedBird Advisors, The Raine Group, Latham & Watkins (led by Justin Hamill, Bradley Faris, Ian A. Nussbaum, Max Schleusener, Rick Offsay, and Liliana S. Paparelli Ranger), Gagnier Communications (led by Dan Gagnier) and Principal Communications Group (led by Melissa Zukerman). RedBird Capital is advised by Sullivan & Cromwell (led by Eric M. Krautheimer and Alison S. Ressler).
Outbrain, a technology platform that drives business outcomes through engagement, agreed to merge with Teads, an omnichannel video platform, in a $1bn deal.
“This is a transformative transaction to establish a true end-to-end, full-funnel platform for the open internet. The combination of our highly-complementary offerings accelerates our vision to become the preferred partner to deliver meaningful brand outcomes across premium, quality media environments — while scaling the industry-leading offerings Teads is known for. I’m incredibly proud of what our team at Outbrain has created, and strongly believe that with Teads we will build tremendous value for our customers, employees, and partners. I believe this combination and the transaction’s financial structure position Outbrain to deliver significant shareholder value in the years to come," David Kostman, Outbrain CEO.
Teads is advised by Morgan Stanley. Altice is advised by Skadden Arps Slate Meagher & Flom. Outbrain is advised by Goldman Sachs, Jefferies & Company, Mizuho Securities, Bryan Cave Leighton Paisner, Cravath Swaine & Moore, Meitar Law Offices and Paul Weiss Rifkind Wharton & Garrison. Deft financing is provided by Goldman Sachs, Jefferies & Company and Mizuho Securities.
Arcosa, a provider of infrastructure-related products and solutions, agreed to acquire the construction materials business from Stavola, an aggregates-led and vertically integrated construction materials company, for $1.2bn.
"The acquisition of Stavola accelerates Arcosa's strategic transformation by adding a premier aggregates-led platform in the nation's largest MSA with favourable attributes from its exposure to lower volatility infrastructure-led end-markets. Pro forma for the transactions, Construction Products represents 65% of Arcosa's LTM Adjusted EBITDA, and consolidated LTM Adjusted EBITDA Margin expands approximately 220 basis points. Stavola brings an experienced management team, a reputation for strong customer service, and a successful track record," Antonio Carrillo, Arcosa President and CEO.
Arcosa is advised by Barclays, Evercore, Baker Botts, Kirkland & Ellis and Advisiry Partners (led by David Gold). Financial advisors are advised by Sullivan & Cromwell (led by Stephen M. Kotran and Lee C. Parnes). Debt financing is provided by Bank of America, Barclays and JP Morgan.
Tradeweb, a global operator of electronic marketplaces for rates, credit, equities and money markets, completed the acquisition of Institutional Cash Distributors, an institutional investment technology provider, from Parthenon Capital Partners, a private equity firm, for $785m.
“We are excited to complete the acquisition of ICD and launch corporates as a new client channel, offering a key new avenue for growth and building on our strong presence across our other core markets. Corporate treasurers represent an increasingly large and underserved opportunity within fixed income markets, and ICD’s differentiated technology offers the perfect gateway between corporates and global fixed income markets. The ICD team shares our commitment to continuous innovation and exceptional client service, and it is a pleasure to officially welcome them to Tradeweb," Billy Hult, Tradeweb CEO.
Institutional Cash Distributors was advised by BDO, Moelis & Co (led by Georgi Balinov and Raymond Wu), Raymond James, Cooley (led by Alfred Browne) and Kirkland & Ellis. Tradeweb was advised by JP Morgan, Morgan Stanley, Fried Frank Harris Shriver & Jacobson and Kekst CNC (led by Molly Morse).
Occidental, an American company engaged in hydrocarbon exploration, completed the acquisition of CrownRock, a Midland-based oil and gas producer, for $12bn.
“By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company’s history even stronger and more differentiated. We also welcome new team members who will combine with ours to form a high-performing employee base that is focused on safely and efficiently developing low-emission, low-cost energy," Vicki Hollub, Occidental President and CEO.
David Rubenstein, an American lawyer, businessman, and philanthropist, completed the acquisition of Baltimore Orioles, an American professional baseball team, from Angelos family for $1.72bn.
“I thank John Angelos and his family for their leadership and ownership of the team over the last 30 years. John led a dramatic overhaul of the team’s management, roster, recruitment strategy and farm system. We are building on these accomplishments thanks to the outstanding work of Mike Elias, his leadership team, Brandon Hyde and our great players. We’re thrilled to have Catie Griggs soon join us as the new team president of business operations as we focus on winning on and off the field," David Rubenstein.
Baltimore Orioles was advised by Goldman Sachs. and Jones Day. David Rubenstein was advised by BDT & MSD Partners, PJT Partners and Wachtell Lipton Rosen & Katz. Angelos family was advised by Hogan Lovells.
Meaningful Partners, a private equity investment firm, completed the acquisition of Fitness Ventures, a Crunch Fitness franchisee. Financial terms were not disclosed.
"We are extremely excited about our partnership with Meaningful Partners as we continue to execute on our de novo and M&A growth strategy. The Meaningful team's background and experience in rapid scaling of multi-unit locations nationally makes them an ideal partner for our next growth phase. Our team is energized and excited to get to work," Brian Hibbard, Fitness Ventures CEO.
Fitness Ventures was advised by Harris Williams & Co, MOK Capital Advisors and Latham & Watkins. Meaningful Partners was advised by Greenberg Traurig. Debt financing was provided by Ares Management.
Crowley, a vessel management, owner, and supply chain logistics services company, and SEACOR, a provider of equipment and services to the offshore petroleum industry, completed the formation of Fairwater, a new entity that consolidates the petroleum and chemical transport vessels, operations and personnel from both companies. Financial terms were not disclosed.
"Fairwater creates a new, dynamic leader with the broadest capabilities in our domestic industry for customers and carries forward the shared legacy of value, efficiency and high performance by Crowley and SEACOR," Tom Crowley, Crowley Chairman and CEO.
Fairwater was advised by JP Morgan. Crowley was advised by Vinson & Elkins. SEACOR was advised by Baker Botts, Milbank and Watson Farley & Williams.
Howard Hughes, a real estate development and management company, completed the spin-off of Seaport Entertainment Group, an intersection of entertainment and real estate services provider. Financial terms were not disclosed.
“Today is an exciting milestone for Seaport Entertainment Group as we begin this new phase as an independent public company. We’ve built a team of experienced industry professionals, with the goal of creating a best-in-class entertainment organization underpinned by our quality portfolio in top-tier, high-barrier-to-entry markets. We are committed to redefining the entertainment experience for our guests, and I’m confident our unique assets, strong partnerships, and newly constructed team are capable of creating long-term value," Anton D. Nikodemus, Howard Hughes President, Chairman and CEO.
Howard Hughes was advised by JP Morgan, Wells Fargo Securities, Latham & Watkins and Richards Layton and Finger. JP Morgan was advised by Cravath Swaine & Moore.
BharCap Partners, a private equity firm, completed an investment in Electronic Merchant Systems, a merchant solutions and payments provider. Financial terms were not disclosed.
"This is a big moment for EMS and our incredible team, and we look forward to working with a great partner in BharCap. We are now well positioned to continue the transformation of EMS into a leading FinTech Platform. I am grateful for BharCap's belief in our vision and strategy. I am excited to work with the team and BharCap to continue to build our amazing organization," Afshin Yazdian, EMS Chairman and CEO.
Electronic Merchant Systems was advised by Financial Technology Partners, Sullivan & Cromwell (led by Stephen M. Kotran), UB Greensfelder and Reevemark (led by Delia Cannan and Pam Greene). BharCap Partners was advised by Simpson Thacher & Bartlett.
Wintrust, a financial services company, completed the merger with Macatawa Bank, a provider of investment and financial services, in a $510m deal.
“Macatawa Bank provides an ideal platform to expand into West Michigan with a very solid bank. The bank has a strong core deposit base, exceptional asset quality, a client focused culture, and a committed leadership team. Together, we will be a formidable, community-minded competitor to the other banks in the area. We look forward to providing Macatawa Bank’s customers with an expanded array of products and services and are thrilled to welcome Macatawa Bank clients and team members to the Wintrust family," Timothy S. Crane, Wintrust President and CEO.
Macatawa Bank was advised by Morgan Stanley and Warner Norcross & Judd. Morgan Stanley was advised by Ropes & Gray. Wintrust was advised by ArentFox Schiff.
ITT, a manufacturer of highly engineered critical components and customized technology solutions, agreed to acquire kSARIA, a producer and supplier of mission-critical connectivity solutions, from Behrman Capital, a private equity investment firm, for $475m.
"Behrman Capital has been an excellent partner to the kSARIA team. Their vision for the company's growth strategy and approach to due diligence on acquisition candidates added a tremendous amount of strategic value that enabled us to offer an increasingly deep portfolio of highly customized connectivity solutions to our customers, who require the highest quality products to meet their mission-critical needs," Tony Christopher, kSARIA CEO.
kSARIA is advised by BMO Capital Markets, Guggenheim Partners and Goodwin Procter. ITT is advised by Kekst CNC (led by Ross Lovern).
Goldman Sachs completed a $440m investment in BrightNight, a renewable power company designed to provide utility and commercial and industrial customers with clean, dispatchable renewable power solutions.
“BrightNight was founded on a unique combination of strengths that capitalize on strong secular energy transition tailwinds. We have quickly established a large and differentiated portfolio in high-demand growth markets seeking decarbonizing renewable energy solutions to meet growing load and reliability needs. BrightNight’s best-in-class team, extensive project portfolio, and revolutionary AI-powered software platform, PowerAlpha®, position us to maximize value for our utility and corporate customers. We look forward to continuing this journey in partnership with Goldman Sachs," Martin Hermann, BrightNight Chairman and CEO.
BrightNight was advised by Bank of America and PJT Partners. Goldman Sachs was advised by Jefferies & Company and Weil Gotshal and Manges.
Trilantic-backed Sunbelt Solomon, a provider of customized electrical power solutions and services, completed the acquisition of Maxima Power, a NETA accredited electrical engineering, automation solutions, and technical field services provider. Financial terms were not disclosed.
"We are thrilled to add Maxima Power Group's team and capabilities to Sunbelt Solomon. Given the breadth, scale, and enhanced scope of services in critical power infrastructure, the unified team will be able to offer our customers a unique experience in the industry. Overnight, our combined field services capabilities double in the United States, while in Canada the complementary nature of our existing temporary power and rental services blended with our strong field services presence establishes an unparalleled product offering, while creating a foundation to deploy the complete portfolio of repaired and reconditioned power distribution equipment across Maxima's service lines. Broadening Sunbelt Solomon's presence in the Americas via Maxima's operation in Chile also provides a superb expansion path for our products and services beyond our traditional North American market," Gus Cedeño, Sunbelt Solomon CEO.
Maxima Power was advised by Harris Williams & Co and Perkins Coie. Sunbelt Solomon was advised by Gibson Dunn & Crutcher. Trilantic was advised by Prosek Partners.
Vizient, a health provider consultant, completed the acquisition of the remaining stake in Kaufman Hall, a provider of management consulting solutions, from Madison Dearborn Partners, a private equity firm. Financial terms were not disclosed.
“By coming together, Vizient and Kaufman Hall will be able to help our clients achieve strategic, financial, clinical and operational excellence. Bringing together the deep expertise with spend management and industry-leading data and analytics will help clients navigate the future of healthcare," Byron Jobe, Vizient President and CEO.
Kaufman Hall was advised by Jefferies & Company. Vizient was advised by BMO Capital Markets and Greenberg Traurig. Madison Dearborn was advised by Kirkland & Ellis.
JP Morgan completed the acquisition of Bold Ocean, a maritime logistics operator, from NOVA Infrastructure, a middle market infrastructure investment firm. Financial terms were not disclosed.
“NOVA was a thoughtful and value-added partner to Bold Ocean as we scaled the business rapidly over the past three years. NOVA’s experience working with companies of our size and with our government-contracting focus was valuable as we undertook significant growth initiatives. Bold Ocean has a great foundation for the future and will continue to meet the needs of the US government with the highest service levels," Dion Nicely, Bold Ocean CEO.
NOVA Infrastructure was advised by Jefferies & Company, Holland & Knight, Jones Day and Sloane & Company.
Truelink Capital, a private equity firm, completed the acquisition of air distribution technologies business from Johnson Controls, a producer of fire, HVAC, and security equipment for buildings. Financial term were not disclosed.
"Truelink is committed to bolstering Air Distribution Technologies' position as an industry leader and continuing its heritage of success. We are excited to partner with Doug and his leadership team to make strategic investments that will drive growth and innovation. We strongly believe in the business, its employees and partners and are thrilled to collaborate to help the business reach its potential," Todd Golditch, Truelink Co-Founder and Managing Partner.
Hull Street Energy, a private equity firm, agreed to acquire four New York thermal power plants from J-Power USA, a power generation facilities developer. Financial terms were not disclosed.
The portfolio includes Edgewood Energy, Shoreham Energy, Pinelawn Power and Equus Power I. Located on Long Island, the portfolio provides 300 megawatts of critical power generation to support New York customers.
Hull Street Energy is advised by Troutman Pepper. J-Power USA is advised by CIBC World Markets, Merit Capital and Baker McKenzie.
Genetic testing firm 23andMe will not go ahead with CEO Anne Wojcicki's take-private offer and has asked her to withdraw any plan to oppose any alternative deal.
"We are disappointed with the proposal for multiple reasons, including because it provides no premium to the closing price per share on Wednesday, July 31st, it lacks committed financing, and it is conditional in nature. Accordingly, we view your proposal as insufficient and not in the best interest of the non-affiliated shareholders. Therefore, we are not prepared to move forward under the terms provided. Importantly, we request that you immediately withdraw your stated intent to oppose any alternative transaction so that we can fully assess whether there is interest from third parties in a transaction that would maximize value for all shareholders," 23andMe.
First Brands Group, an automotive parts manufacturer, completed the acquisition of the lamps and accessories business from Lumileds, a LED manufacturer and solution provider, for $238m.
"The completion of this transaction strengthens Lumileds and enables the company to focus on our core LED business. Lumileds is committed to continued collaboration with our customers to solve market needs, and to producing innovative LED solutions that drive growth, improve profitability, and generate value for Lumileds, our customers, and stakeholders alike," Steve Barlow, Lumileds CEO.
Lumileds was advised by Citigroup and DLA Piper.
Yext, a digital presence platform for multi-location brands, completed the acquisition of Hearsay Systems, a provider of digital client engagement for financial services, for $220m.
"The close of this acquisition marks a pivotal moment for Yext. Our mission is to empower brands to connect seamlessly with their customers across all digital channels. With Hearsay Systems now part of Yext, we are positioned to accelerate innovation, provide unparalleled solutions, and drive growth for our customers. This combination represents a significant leap forward in the industry and will deliver the first platform that can manage the end-to-end customer journey from prospect to loyal customer," Michael Walrath, Yext Chairperson and CEO.
Hearsay Systems was advised by Latham & Watkins (led by Jim Morrone). Yext was advised by Wilson Sonsini Goodrich & Rosati.
Ryan Specialty, a service provider of specialty products and solutions for insurance brokers, agents, and carriers, agreed to acquire US Assure Insurance Services of Florida, a company specializing in builder's risk insurance. Financial terms were not disclosed.
"US Assure is one of our industry's oldest and highest quality programs, and has developed an outstanding business in a difficult class. Specializing in builder's risk, US Assure underwrites a diversified portfolio of residential, commercial, and remodeling projects in non-urban locations as well as large metropolitan areas. Ty Petway and his team have consistently produced profitable business on behalf of their carrier trading partner. We look forward to including US Assure in the Ryan Specialty family," Patrick G. Ryan, Ryan Specialty Founder, Chairman and CEO.
US Assure is advised by Dowling Hales. Ryan Specialty is advised by Ardea Partners.
Cousins Properties, a real estate investment trust, and Town Lane, a real estate investment manager, completed the acquisition of Proscenium, a 526k square foot Class A office building. Financial terms were not disclosed.
"We believe in well-located, high-quality office assets in growing submarkets like Midtown Atlanta, which can be acquired at a basis that allows us to invest in and attract great tenants. We could not be more excited about partnering with our long-term friends at Cousins to help deliver a first class office experience," Tyler Henritze, Town Lane Founder and Managing Partner.
Cousins was advised by Eversheds Sutherland. Town Lane was advised by Simpson Thacher & Bartlett.
Rand Logistics, a provider of bulk freight shipping, completed the acquisition of Andrie, a marine transporter of liquid bulk commodity goods, from Auxo Investment Partners, a private equity firm. Financial terms were not disclosed.
"As we continue to thoughtfully grow our platform and service offerings, we are pleased to partner with an industry leader in Andrie that brings together complementary cultures and capabilities, while expanding our presence in the Great Lakes region. Andrie's exceptional reputation with customers, dedication to employee safety and client service, and experienced management team makes them an ideal partner for Rand, and we look forward to working closely with Sven and the entire Andrie team to achieve greater success together," Rand Logistics, David Foster CEO.
Rand Logistics was advised by Ropes & Gray and Joele Frank.
WPC Joint Venture, Targa Resources, a midstream energy infrastructure, and MPLX, a midstream energy infrastructure, agreed to form Blackcomb Pipeline, a natural gas trasportation company. Blackcomb Pipeline is owned 70% by WPC, 17.5% by Targa, and 12.5% by MPLX, which is incremental to MPLX's ownership interest in WPC. Financial terms were not disclosed.
"We are excited to partner with Targa by leveraging Whistler's expansive footprint in Waha and Agua Dulce to develop the Blackcomb Pipeline. Blackcomb will provide much needed incremental natural gas takeaway capacity for Permian shippers," Christer Rundlof, WhiteWater CEO.
Vixxo, a tech-enabled facilities maintenance company, completed the acquisition of the third-party multi-site vendor management business from Cushman & Wakefield, a commercial real estate services firm. Financial terms were not disclosed.
"This is a pivotal milestone for Vixxo as we execute our vision of perfecting facility operations for the world's best brands. This acquisition brings a wealth of expertise that significantly enhances our service offerings and operational capabilities," Jim Reavey, Vixxo President and CEO.
Cushman & Wakefield was advised by UBS.
Private equity firms Berkshire Partners and Leonard Green & Partners completed an investment in Linden Capital-backed Vital Care, a franchisor of infusion therapy pharmacies. Financial terms were not disclosed.
“We are thrilled to welcome our new partners at Berkshire and LGP. Along with our existing partners at Linden, we are excited to enhance our focus on patient care by elevating the resources and capabilities of franchisees across the country, helping them reinvest in their local markets and workforces while empowering franchisee expansion. Berkshire, LGP, and Linden fully support Vital Care’s mission of expanding access to high-quality infusion therapy and helping drive the best patient outcomes possible," Steve Foreman, Vital Care CEO and President.
Piping Rock Health Products, a manufacturer of healthcare products and supplements, agreed to acquire the Better Health Vitamins, Minerals and Supplements business of The Clorox Company, a manufacturer and marketer of consumer and professional products. Financial terms were not disclosed.
"The Better Health VMS business will do well under the leadership of Piping Rock, as they have built a strong pure-play business in a category that is poised for growth. This transaction is a deliberate step in our IGNITE strategy and reflects our commitment to evolve our portfolio to drive more consistent, profitable growth," Linda Rendle, Clorox Chair and CEO.
The Clorox Company is advised by Wachtell Lipton Rosen & Katz.
Civil engineering and construction companies ACS Group and HOCHTIEF, agreed to form a joint venture Flatiron Dragados, a construction services provider. Financial terms were not disclosed.
“Bringing together Flatiron and Dragados creates a strong platform for organic growth in North America. They have the expertise, the long-term clients and are geographically complementary, providing significant synergies and economies of scale. We differentiate our commercial offering through our superior technical resources and skills," Juan Santamaría, HOCHTIEF CEO.
HOCHTIEF is advised by Societe Generale.
Private equity firms Khosla Ventures and Inspired Capital completed the acquisition of a minority stake in Mainstay, a comprehensive market intelligence and transaction platform, from Opendoor, an e-commerce platform for residential real estate transactions. Financial terms were not disclosed.
"At Khosla Ventures, we invest early into companies that are bold and impactful like we did with Opendoor early on. We are excited to partner with the founding team at Mainstay, who we have known for years, to continue to build out their platform for owners, operators and residents," David Weiden, Khosla Ventures Managing Partner.
Opendoor was advised by Wachtell Lipton Rosen & Katz.
Teachers Venture Growth, the late-stage venture and growth investment arm of Ontario Teachers' Pension Plan, led a $150m funding round in Bilt Rewards, a loyalty program for the home and neighborhood, with participation from Vanderbilt University Endowment and the University of Illinois Foundation.
"In January, we recognized Bilt's unique capture of loyalty in the previously untapped rental payments space. Today, Bilt is rapidly becoming the leading platform for driving neighborhood commerce. By connecting residents, property owners, and local businesses, we're creating a powerful ecosystem that benefits all parties involved," Ken Chenault, Bilt Chairman.
The RMR Group, an alternative asset management company, completed the acquisition of The Ridge at Lowry, a 240-unit garden-style apartment community, for $70m.
"We have strong conviction in the long-term trends favoring the US housing sector. We believe that our micro-market data analysis and high performing operating platform enable us to identify unique value add opportunities. Located in Denver's Lowry neighborhood and situated between the highly coveted downtown Denver and Cherry Creek/Centennial sub-markets, we believe ARIUM at Lowry will offer superior access to public amenities and an improved, tenant-centric living environment. With limited new supply within the surrounding two-mile radius, RMR plans to deliver attainable living options in Lowry and contribute to the community's growth and prosperity," Rob Lester, RMR Senior Vice President.
Averna, a global test & quality solutions provider, agreed to acquire Global Equipment Services, a company specializes in production process and test equipment, from Kimball Electronics, an electronics manufacturing and contract manufacturing provider. Financial terms were not disclosed.
"As our global customers' operations spread across all continents, it was important for us to join forces with the right team and establish a significant presence in diverse geographies in Asia. With this acquisition, Averna now has a solid footprint in the Americas, Europe and Asia where the majority of our customers' research & development and manufacturing activities are taking place. Combine that with the in-depth automation, vision and test engineering capabilities of the team and their impressive client database, GES was clearly the right fit," François Rainville, Averna President and CEO.
Jefferson, a multi-state non-profit health system, completed the acquisition of Lehigh Valley Health Network, a healthcare network. Financial terms were not disclosed.
"We are delighted to bring these two incredible organizations together as we look ahead at all the good we will do for the communities we're privileged to serve. This milestone is even more significant as Jefferson celebrates its bicentennial, marking our longstanding commitment to improving lives through education, health care and discovery. As we create our third century, this is a historic moment for our 65k colleagues as it marks a new chapter in access, innovation, equity, and opportunity for patients, students and health plan members. We have many more milestones ahead as we share knowledge and integrate our operations," Joseph G. Cacchione, Jefferson CEO.
CD&R explores a $1.5bn sale of American Greetings. (FS)
Private equity firm Clayton Dubilier & Rice is exploring options including a sale of American Greetings that could value the 118-year-old greeting card maker at about $1.5bn, including debt.
CD&R, which acquired a majority stake in American Greetings in 2018, is working with Bank of America and Centerview Partners on the sale process, which is expected to attract interest from other private equity firms.
The Weiss family, who are descendants of founder Jacob Sapirstein, took the card maker private in 2013. CD&R owns a 60% stake in the company, with the Weiss family holding the rest, Reuters reported.
Enbridge seeks approval to sell stake to Indigenous Communities.
Enbridge is seeking regulatory approval to sell a stake in its British Columbia natural gas pipeline system to Indigenous groups, potentially presaging another partnership between those communities and Canadian energy companies.
The application to the Canada Energy Regulator changes the ownership structure of the system, allowing possible indigenous owners, but doesn’t mean a deal is imminent.
Canadian energy companies are increasingly partnering with the Indigenous communities their projects affect, partly to burnish their ESG credentials and head off legal opposition to projects. Enbridge last month said it was working with Indigenous groups to develop a wind farm in southeast Saskatchewan and has previously sold pipeline stakes to communities in Alberta, Bloomberg reported.
AI chipmaker Cerebras is said to plan IPO as soon as October.
Cerebras Systems, a startup making semiconductors optimized for artificial intelligence uses, is targeting a launch for its initial public offering as soon as October.
The Silicon Valley firm has added Barclays to the lineup of banks working on the deal. Cerebras picked Citigroup as the lead bank, Bloomberg News reported in April, and has filed confidentially with the US Securities and Exchange Commission for a listing.
A first-time share sale by Cerebras would come as US IPOs continue along a steady path to recovery, with nearly $30bn raised so far this year, Bloomberg reported.
Grupo Axo considers share listing.
Grupo Axo, a Mexican fashion retailer, is considering an initial public offering as soon as later this year. The company, based near Mexico City, has yet to make a decision on the listing and plans could still fall apart.
General Atlantic invested in the company back in 2017 by purchasing a stake owned by restaurant operator Alsea. In 2021, Grupo Axo said it received an equity investment from funds and accounts managed by BlackRock, Bloomberg reported.
Carlyle changes Europe buyout leadership. (FS)
Carlyle Group is switching up the top ranks of its European buyout team. Carlyle communicated the decision to clients and staff in the past week and midway through raising its latest Europe buyout fund — signaling to investors that a reset is underway.
The alternative-asset manager told investors and staff that the group’s co-heads, Marco De Benedetti and Jonathan Zafrani, are ceding leadership roles. Michael Wand, who co-heads the European technology strategy, will assume more responsibilities managing the region’s buyout platform.
Wand was elevated in May to head of Europe private equity, a role overseeing both tech and buyout strategies in the region, and the new leadership changes bring the European buyout team even further under his purview, Bloomberg reported.
EMEA
Group 1 Automotive, one of the largest dealership groups in the US, completed the acquisition of the UK retail operations of Inchcape, a global automotive distributor, for £346m ($443m).
"This transformative acquisition effectively doubles our UK footprint, giving us access to new markets throughout England with a collection of outstanding brands. We are delighted to welcome our new team members as we collaborate to deliver an excellent customer experience," Daryl Kenningham, Group 1 Automotive President and CEO.
Group 1 Automotive was advised by JP Morgan, Dentons (led by Faye Garvey and James Vernon) and Pierpont Communications (led by Clint Woods). Inchcape was advised by Rothschild & Co (led by Majid Ishaq), Herbert Smith Freehills and Dentons Global Advisors.
Ambac Financial, an insurance holding company, completed the acquisition of a 60% stake in Beat Capital Partners, a private equity firm, for $282m.
"We are excited to complete this transaction, which materially scales our insurance distribution business and strengthens our position as a premier destination for MGAs. With its strong reputation, proven leadership team and the expertise of its MGA CEOs, Beat will be an important asset to our organization as we continue to execute our specialty P&C strategy and drive long-term growth and value creation for our shareholders," Claude LeBlanc, Ambac President and CEO.
Beat Capital was advised by Evercore and Reynolds Porter Chamberlain. Ambac was advised by UBS and Debevoise & Plimpton.
Cerberus Capital Management, an American global alternative investment firm, completed the acquisition of VeloBank, a universal bank, from Bankowy Fundusz Gwarancyjny, the Polish bank guarantee fund, for PLN1.1bn ($277m).
"We are very excited to invest into VeloBank and support its participation in the dynamic Polish banking market. We are incredibly proud of the bank and its talented employees, especially their drive for digital innovation and customer-centric financial products. We believe that VeloBank is well positioned to build on its successes and become a leading bank for the Polish retail and business communities," Charles Dunlap, Cerberus Senior Managing Director.
Cerberus was advised by Linklaters (led by Joanna Gawlicka and Maciej Pietron). Bankowy Fundusz Gwarancyjny was advised by JP Morgan and Rymarz Zdort Maruta.
International Airlines Group, an Anglo-Spanish multinational airline holding company, terminated the acquisition of an 80% stake in Air Europa, a private airline in Spain, from Globalia, a travel and tourism services provider.
"We believe this decision is in the best interests of our shareholders. IAG remains committed to its strategy, including competing effectively from its Madrid hub. This is a strategy which is delivering strong results. We will continue to develop our presence in Madrid so that the hub can develop as a rival to Europe's largest hub airports," Luis Gallego, IAG CEO.
Kingswood Capital, a private equity firm, completed the acquisition of Kodak Alaris, a provider of information capture and intelligent document processing solutions, from the United Kingdom Pension Protection Fund, a government-sponsored fund. Financial terms were not disclosed.
"At Kingswood, our goal is to help companies reach their full potential by providing capital, bolstering its operations, and identifying avenues to achieve growth. We are excited to help continue Kodak Alaris' strong recent performance and momentum," Alex Wolf, Kingswood Managing Partner.
Kodak Alaris was advised by Lincoln International and Eversheds Sutherland. Kingswood was advised by Kirkland & Ellis.
Medical Technology and Devices, an international group active in the design and production of medical devices for home and professional assistance, completed the acquisition of the pen needle and BGM businesses from Ypsomed, a firm engaged in the development, manufacture and sale of its own high-quality medical technology products. Financial terms were not disclosed.
"The completion of this acquisition marks a transformative moment for MTD Group. By integrating Ypsomed's Pen Needles and Blood Glucose Monitoring businesses, we solidify our position as a global leader in diabetes care and establish ourselves as the second-largest producer of pen needles worldwide. This strategic move enhances our ability to deliver innovative, high-quality solutions to our customers and expands our reach into key markets. Our significant investments underscore our commitment to scaling our operations efficiently while maintaining the highest standards of quality. We are excited about the opportunities this acquisition presents and remain dedicated to advancing the future of diabetes care," Charles Bouaziz, MTD Group CEO.
Hartree Partners, a global energy and commodities trading company, agreed to acquire three business units from ED&F Man, a provider of soft commodities and logistics. Financial terms were not disclosed.
"This agreement marks the exciting first step in the expansion of Hartree's global commodities platform into soft commodities. We look forward to working with the ED&F Man Commodities team to leverage Hartree's insights, capabilities and strong relationships, paired with ED&F Man Commodities' globally recognized heritage in trading, for the benefit of all our clients and other stakeholders.," Guy Merison, Hartree Founding Managing Director.
Carrier-backed Sensitech, a provider in supply chain visibility, providing innovative solutions for maintaining the quality and integrity of precious cold cargo, completed the acquisition of the cold chain monitoring systems business from Berlinger, a high-tech cold chain monitoring systems provider. Financial terms were not disclosed.
"This successful acquisition marks a strategic milestone for Sensitech, creating comprehensive and differentiated cold chain monitoring and visibility solutions for the pharma and life sciences industry. We are excited to welcome the Berlinger team as our new colleagues and look forward to bringing together the best of Berlinger and Sensitech to enable our customers' cold chains to become more connected, automated, intelligent and sustainable," Bhasker Kaushal, Sensitech Vice President.
Carrier was advised by Lenz & Staehelin (led by Simone Ehrsam). Berlinger was advised by KMES Partner (led by Hans Klaus).
Iberdrola, a Spanish multinational electric utility company, agreed to acquire an 88% stake in Electricity North West, a British electricity distribution network operator, in a €5bn ($5.4bn) deal.
"This transaction reinforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonization of the economy. The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations. As a result of this acquisition, our regulated networks asset base in the UK is now valued at €14bn ($15.1bn). When combined with the US, these two markets now represent two-thirds of our total global regulated asset base," Ignacio Galán, Iberdrola Chairman.
Electricity North West is advised by Jefferies & Company.
Vossloh, a rail technology company, agreed to acquire Sateba Group, a manufacturer of concrete ties, for €450m ($491m).
"After the completion of the transaction, Sateba will have a positive impact on earnings per share and supports the achievement of the Vossloh Group's long-term profitability targets. In addition to Sateba's ongoing business, the gradual realization of identified synergy potentials will also contribute to this. Vossloh is aiming for a double-digit EBIT margin in the Group in the long term unchanged. In addition, the ratio of net financial debt to EBITDA should remain well below 2.75 following the implementation of the transaction. With the financing described, we are extremely confident that we will achieve this goal," Thomas Triska, Vossloh CFO.
Vossloh is advised by Evercore.
Miller Insurance, an independent specialist reinsurance broking firm, completed the acquisition of 4809 Brokers, a specialty reinsurance broker. Financial terms were not disclosed.
“As Miller continues to grow in both scale and international footprint, we see an opportunity to meaningfully expand our reinsurance capabilities and establish a franchise that enables clients to benefit from our leading direct specialist footprint, our commitment to stability, and our partnership approach. The business that Marc and Benjamin have built at 4809 Brokers is highly complementary to those ambitions, and we’re delighted to be bringing their expertise on board as we continue to expand our presence across the UK, Europe and Asia," James Hands, Miller CEO.
Crédit Agricole, a financial services company, agreed to acquire a minority stake in Océinde Communications, an optical fibre provider from Intermediate Capital Group, a private equity firm. Financial terms were not disclosed.
"We sincerely thank ICG Infra for their support and the fruitful collaboration over the past five years. We are immensely proud of the exceptional service provided by Zeop and the dedicated men and women behind it, whose efforts have significantly impacted the community and economy of Réunion Island. We are delighted to welcome CAA as our new partner and look forward to the exciting growth opportunities ahead," Nassir Goulamaly, Océinde CEO.
Crédit Agricole is advised by Rothschild & Co.
Langley, an engineering solutions provider, completed the acquisition of GKN Hydrogen, a renewable energy semiconductor developer, from Dowlais Group, a renewable energy company. Financial terms were not disclosed.
“This acquisition underscores Langley’s strategic focus on sustainable energy solutions and commitment to a greener future," Anthony Langley, Langley Chairman & CEO.
Dowlais Group was advised by Jefferies & Company.
Valmet, a developer and supplier of process technologies, automation and services for the pulp, paper and energy industries, completed the acquisition of Demuth, a provider of wood handling technology and services. Financial terms were not disclosed.
"The acquisition was completed as planned after the approval of the competition authorities' review. We are very happy to welcome the new colleagues from Demuth to join our Valmet South America team. With stronger local presence in Brazil and with further improved capabilities to deliver new wood handling equipment, spare parts, and field services, we are able to serve our customers even better and help to take their performance forward," Celso Tacla, Valmet Area President, South America.
Neuberger Berman nears deal for Nord Anglia Education at $15bn valuation. (FS)
Neuberger Berman is nearing an agreement to buy a minority stake in Nord Anglia Education, in a deal that values the international-school operator at $15bn, including debt.
Neuberger is in talks to buy the position from Nord Anglia’s existing shareholders including EQT Group, a big European buyout firm - which will retain control of the business - and CPPIB. The deal, if completed, could be announced in the coming weeks.
The Neuberger deal allows EQT and other Nord Anglia investors to realize a portion of their investment while betting on the business’s growth by retaining control. This type of deal structure is often used by buyout firms for their most favored investments, WSJ reported.
BNP Paribas in talks to buy AXA Investment Managers for $5.5bn.
BNP Paribas is in exclusive talks with French insurer AXA to buy 100% of its AXA Investment Managers arm at an agreed price of $5.5bn, the euro zone's biggest bank said on August 2.
For BNP, such an acquisition would significantly boost its asset management arm as the industry is in a race for size to achieve economies of scale and lower costs. This represents a major strategic move for AXA, Europe's second-biggest insurer, as it aims to focus on its core businesses: life insurance, savings, property and casualty policies as well as health insurance.
The French insurer said it would use $4.1bn worth of proceeds from these sales in share buybacks. The rest of the proceeds will be spent on "organic and inorganic growth". The transaction also includes a 15-year agreement under which BNP would provide investment management services to AXA, Reuters reported.
APAC
Ayala, a business conglomerate, and Mitsubishi UFJ Financial Group, a banking group, agreed to acquire a 16% stake in Globe Fintech Innovations dba. Mynt, a fintech company, in a $5bn deal.
“We are thrilled to welcome MUFG as a new strategic partner. With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially to the underserved. Alongside this, Ayala’s unmatched commitment to Philippine economic growth & development, and its expertise in multiple industries will accelerate GCash’s mission,” Martha Sazon, Mynt President and CEO.
Mynt was advised by Mitsubishi UFJ Morgan Stanley Securities.
GDS said to seek as much as $1bn for data center push outside China.
GDS is seeking as much as $1bn in investment in its unit that operates its data centres outside of China. GDS is working with an adviser to gauge interest from global investors to help Singapore-based GDS International expand its operations in Southeast Asia.
GDS, which is listed in Hong Kong and New York, would be left with a significant minority stake in the business if the plan goes ahead.
GDS already raised several hundred million dollars this year for its non-China operations by selling a stake in GDS International to a group of alternative asset managers, including Boyu Capital, Hillhouse Investment and Princeville Capital. The initial $587m Series A funding round was later raised to $672m, amounting to a stake of about 47.3% for the investors, Bloomberg reported.
Ola Electric IPO garners over $2bn worth of bids from institutions.
Ola Electric on August 1 received more than $2bn worth of bids for $330m quota reserved for big institutions a day ahead of its initial public offering launch. The electric scooter maker plans to raise $734m in the deal which will be the largest Indian IPO so far in 2024.
State Bank of India and HDFC Mutual Funds were allocated shares worth around $30m-36m each in the issue while Nomura, Norges Bank allocated shares worth around $24m each, MoneyControl reported.
LG Group’s IT Services unit is said to gear up for IPO in Korea.
The information technology services arm of LG Electronics is preparing for an initial public offering in Seoul as early as 2025.
LG CNS’ debut would mark another potentially large offering by the South Korean conglomerate after the $10.8bn listing of its battery unit LG Energy Solution in 2022. Deliberations over the IT firm’s IPO are ongoing and the timing of the deal may change, Bloomberg reported.
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