Private equity firm PAI Partners offered to acquire Elior's concession catering operations grouped within its Areas subsidiary for €1.5bn ($1.7bn). The deal is expected to close during the summer of 2019. Sale proceeds would be used to reduce Elior Group’s leverage ratio to a range between 1.5 and 2.0x EBITDA.
Philippe Guillemot, Chief Executive Officer of Elior Group, said: “PAI Partners’ project would enable Areas, which is the world’s third-leading concession caterer, to accelerate growth. Following the disposal, the Group would focus entirely on its contract catering and services businesses in order to reinforce its leading positions in Europe, and accelerate its development in the United States and India.”
Morgan Stanley and BNP Paribas are advising Elior. Rothschild is advising PAI Partners.
Universities Superannuation Scheme, a pension scheme in the United Kingdom, agreed to acquire KCOM Group, a UK communications and IT services provider, for £504m ($653m). Under the acquisition's terms, USS will acquire KCOM for 97 pence per share, reflecting a 34% premium to KCOM's closing price of 72.5 pence on April 23.
Commenting on the acquisition, Mike Powell, Head of the Private Markets Group at USSIM, said: "We believe that KCOM is a high-quality business that is well-placed to grow and thrive under private ownership and that is why we have made this compelling offer to shareholders at an attractive premium. With the right capital support and assistance, we believe that KCOM's management will be able to enhance the quality of its offering, delivering benefits for customers as well as sustainable, long-term returns. USSL's track record as a long-term and supportive shareholder with extensive experience in regulated sectors makes us an ideal partner for KCOM."
Investec, Peel Hunt, Rothschild & Co, Addleshaw & Goddard and FTI Consulting are advising KCOM. Arma Partners, Gleacher Shacklock, Allen & Overy and Finsbury are advising USS.
German telecoms group Freenet, which holds a 24.5% stake in Sunrise Communications, said that it sees room to improve the terms of a deal for Sunrise to buy Liberty Global’s Swiss UPC cable business. The $6.3bn acquisition was announced in February.
“Sunrise management stands behind the deal,” Freenet CFO Ingo Arnold told
Reuters in an interview. “For new shareholders it can be attractive, but for existing ones it is definitely not as they take all the risks.” He also reiterated concerns expressed by Freenet Chief Executive Christian Vilanek, who has said that rather than an all-cash deal, he would prefer a merger in which Liberty Global bears some of the risks.
Sunrise is advised by PwC, Deutsche Bank, Morgan Stanley, UBS, Latham & Watkins, Lenz & Staehelin, Meyerlustenberger Lachenal, NautaDutilh, Slaughter & May and Deloitte. Liberty Global is advised by Credit Suisse, JP Morgan, and Lion Tree Advisors.
Private equity firm Varde Partners completed its £60m ($77m) investment in Masthaven Bank, a UK-based retail bank. The deal was first announced in September 2018.
Elena Lieskovska, Partner and Head of European Financial Services at Varde Partners, said: “Masthaven is a rising brand in the UK challenger bank scene and we’re thrilled about the opportunity to work together to enhance the bank’s proposition and to take it to the next level. At Varde, we are active in our portfolio companies, favoring the partnership approach to creating value, and that’s exactly how we expect to work with the Masthaven team.”
Houlihan Lokey, PJT Partners, Linklaters, CMS, Rostrum Communications and Mishcon de Reya advised Masthaven. Slaughter & May advised Varde Partners.
Global food and agriculture business Olam International offered to acquire Dangote Flour Mills, a leading flour and pasta manufacturer in Nigeria, for $361m. The proposed transaction would include DFM’s five strategically located facilities engaged in flour and pasta manufacturing, as well as its logistics capabilities including access to the ports of Apapa and Calabar.
“The acquisition of DFM supports the strategy of the Grain and Animal Feed business, one of Olam’s prioritized platforms for growth, to expand our wheat milling capacity in high-growth markets, such as Nigeria,” said K.C. Suresh, Managing Director and CEO of Olam Grains and Animal Feed. “We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy."
Sberbank, a state-owned Russian banking and financial services company, acquired a 46.5% stake in Rambler Group, a media and entertainment company, to create a leader of the Russian media and entertainment market. Financial terms were not disclosed.
Thanks to this partnership, Sberbank’s ecosystem will feature the services and brands of Rambler Group, including Okko, one of the most popular and fastest growing Russian online cinemas, Moscow’s Khudozhestvenny Cinema, and also more than 30 popular resources and services of the Runet, such as Gazeta, Lenta, Afisha, Championat, Rambler and Rambler, Kassa, LiveJournal and others.
American venture capital firm Sherpa Capital bought a majority stake in Luxiona, a Spanish lighting solutions company. Aurica and Caixabank are the sellers as well as Luxiona’s founding family, which will retain a stake. Financial terms were not disclosed.
Jorge Fernández Miret, partner of Sherpa Capital, said: “This acquisition represents a long-term consolidation project in a market with enormous potential for growth, where a leading operator such as Luxiona enjoys enormous competitive advantages. For us, this Project is especially interesting because Luxiona has already been successful in the past developing a process of international acquisitions that we want to continue promoting in next years to create one of the leading businesses in the sector at the worldwide level."
GBS Finanzas and Cuatrecasas advised Luxiona and the sellers. Garrigues advised Sherpa Capital.
Allianz and Amundi considering a merger with Deutsche Bank’s DWS.
Allianz, Germany’s biggest insurer, and Amundi, the French asset manager, are considering rival deals to merge their asset management unit with Deutsche Bank’s DWS. Their interest comes as Germany’s biggest bank considers a possible merger with Commerzbank. Deutsche Bank is already in talks with Swiss bank UBS over DWS.
JP Morgan is advising Amundi. Barclays is advising Allianz.
SoftBank acquired a 5.6% stake in Wirecard for $1bn.
Japan’s Softbank Group Corp agreed to invest $1bn in Wirecard, a global internet technology and financial services provider which is listed on the German stock exchange, grabbing a 5.6% stake in the company. The investment is a vote of confidence in Wirecard’s business as it defends itself against allegations of fraud, and will allow the Munich-based firm to expand its operations in Asia.
“Wirecard has a strong track record in pioneering innovation in digital payments and has been at the forefront in reshaping modern consumer behaviors,” a spokesman for Softbank said.
Wirecard stock jumped by 10% in response to the news.
Rhone Capital put ASK Chemicals on sale. (FS)
Private equity investment firm Rhone Capital decided to put ASK Chemicals, a maker of chemicals used in foundries, on sale. The company is valued at approximately $559m. Rhone, which bought ASK Chemical from former joint owners Clariant and Ashland for $350m in 2014, is expected to send out information packages to potential buyers in mid-May.
Citigroup is advising Rhone Capital.
Italy is willing to invest $163m in Alitalia’s equity backer.
The Italian government said it could invest around $163m in equity in any vehicle set up to rescue loss-making airline Alitalia,
Reuters reported. The potential investment is envisaged under a government decree to boost economic growth. A final decision on state investment has yet to be made because private investors would first be needed to take a majority stake.
Italy is also considering the option of indefinitely delaying repayment of a €900m ($1bn) state bridging loan to Alitalia. The loan matures at the end of June.
Tsingshan Holding Group to add a power plant and lithium concession to its Zimbabwe facility.
Tsingshan Holding Group, a stainless steel products provider, expanded its plans for a steel plant in Zimbabwe by adding a power plant and lithium concession to its facility.
Tsingshan signed a $1bn outline agreement to build a 2m tonne-per-annum steel plant in Zimbabwe in June last year. Its original agreement included chrome, nickel, iron and coal concessions, but the new deal allows it to build a 600-megawatt power plant in two phases as well as to mine lithium. The deal is part of Zimbabwe’s plan to attract foreign investors to its mining sector.
Delek Group close to buying Chevron's North Sea oilfields.
Delek Group, an Israeli energy conglomerate, is close to acquiring Chevron’s oil and gas fields in the British North Sea in a deal worth approximately $2bn. Delek, via its North Sea oil and gas operator Ithaca Energy, could reach an agreement within days.
Morgan Stanley is advising Chevron.
Shell in talks with BP about North Sea oilfield acquisition.
Royal Dutch Shell is in talks to buy BP’s stake in the Shearwater oil and gas field in the British North Sea for around $250m. Shell currently holds a 28% stake in the asset, while BP holds 27.5%. The remaining 44.5% is owned by Exxon Mobile.
For BP, a sale would mark a step toward its target of selling $5-6bn of assets following its $10.5bn purchase of BHP’s shale oil and gas portfolio in the United States last year.
Goldman Sachs looking to buy distressed loans from Turkish banks.
Goldman Sachs is in talks with Turkish banks and companies to buy large distressed loans following a wave of corporate restructurings in the country last year,
Reuters reported. The asset being acquired are rumored to be valued at approximately $2-6bn.
Disposal of bad loans by banks has been one of Turkey’s main objectives since the country’s currency crisis last year. As part of a reform plan announced this month by Turkish Finance Minister Berat Albayrak, loans in the energy and construction sector would be taken off banks’ balance sheets.
Deutsche Bahn demands expressions of interest in Arriva by May 3.
German railway operator Deutsche Bahn asked potential acquirers of its British unit Arriva to express their interest in the asset by May 3. Deutsche Bahn said that it was open to a sale of all of Arriva to one or multiple parties, adding that flotation is also an option.
Citigroup and Deutsche Bank are advising Deutsche Bahn.
Elliott Management disclosed a $1.3bn stake in SAP. (FS)
Activist investor Elliott Management Corporation revealed a $1.3bn stake in German software provider SAP. The acquired stake amounts to about 1%. SAP’s chairman Hasso Plattner remains the company’s largest shareholder with a 6.5% holding.
“Elliott fully supports the initiatives announced today,” Elliott technology-team partner Jesse Cohn and portfolio manager Jason Genrich said in a statement. “The company’s shares were clearly undervalued in relation to its revenue growth, and today’s announcement lays the foundation for substantial realization of value.”
Oil and gas producer Occidental Petroleum Corp outbid Chevron with a $57bn offer to acquire oil and gas company Anadarko. The $76 per share offer, in which Anadarko shareholders would receive $38 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock represents a premium of approximately 20% to the value of Anadarko’s pending transaction as of April 23, 2019. Chevron made its $50bn bid on April 12.
“Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko's assets not only in the Permian but globally,” said Vicki Hollub, President and Chief Executive Officer of Occidental. “Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realize significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.”
Evercore, Goldman Sachs, Vinson & Elkins and Wachtell Lipton Rosen & Katz are advising Anadarko. Credit Suisse and Paul Weiss Rifkind Wharton & Garrison are advising Chevron. Bank of America Merrill Lynch, Citigroup and Cravath Swaine & Moore are advising Occidental.
Hitachi, a Japanese multinational conglomerate company, acquired JR Automation, a leading provider of intelligent automated manufacturing and distribution technology solutions, from Crestview Partners, a private equity firm, for $1.4bn.
Bryan Jones, CEO of JR Automation, said: “We are very excited to partner with Hitachi to take this next step in the company’s evolution. With our combined capabilities, Hitachi and JR will be a uniquely qualified global leader in next-generation smart manufacturing, and this partnership will enable us to continue to drive tangible value creation for our customers through innovative custom solutions."
Goldman Sachs, Bank of America Merrill Lynch and Gibson Dunn & Crutcher are advising JR Automation and Crestview Partners. MUFG and Allen & Overy are advising Hitachi.
Gebr. Knauf, a multinational, family-owned construction company, and USG Corporation, an American company which manufactures construction materials, announced the completion of Knauf’s acquisition of USG. The deal was first announced in June 2018.
“This transformational transaction is the largest acquisition in Knauf’s history and,
accordingly, presents significant opportunities to create a stronger, more sustainable company for our employees, customers and communities,” said Alexander Knauf, General Partner of Knauf. “We greatly admire USG’s strong brands, leading market positions in North American wallboard and ceilings, and highly talented employee base. We are excited to welcome USG employees to the Knauf family and look forward to working together to accelerate growth and profitability and even better serve our customers.”
Knauf was advised by EY, Morgan Stanley, Baker McKenzie, Freshfields Bruckhaus Deringer, Shearman & Sterling and Joele Frank. UBS was advised by Goldman Sachs, Jones Day, JP Morgan, FTI Consulting and Sard Verbinnen. Cleary Gottlieb advised Goldman Sachs and JP Morgan.
Comvest Partners, a private investment firm, invested in New York-based VanDeMark Chemical, a worldwide leader in the production of specialty phosgene derivatives. The stake was acquired from Verus Investment Partners. Financial terms were not disclosed.
“We have seen tremendous growth in our business and believe that we are well-positioned to benefit from strong industry tailwinds,” said Mike Kucharski, CEO of VanDeMark. “With Comvest’s support, we are excited to continue to invest in our capabilities, team and the development of new products.”
Houlihan Lokey and William Blair advised VanDeMark Chemical. Kirkland & Ellis advised Comvest. Arnold & Porter advised Verus.
Hardy Capital, a Canadian investment firm, acquired LD Vision Group, North America's second largest independent direct retailer in eye care. Financial terms were not disclosed.
Arshil Abdulla, founder and CEO of LD Vision Group, remarked: "We are excited to take this next step in the company's journey. We believe the optical market is preparing for a shift that will reshape the industry and partnering with the Hardy Capital team prepares us for this large and growing secular opportunity."
Canaccord Genuity advised LD Vision Group.
Private equity firm Wynnchurch Capital acquired Quebec-based Alliance Designer Products, the leading manufacturer of polymeric sand and related installation products used in residential and commercial hardscaping projects. Financial terms were not disclosed.
Frank Hayes, Managing Partner at Wynnchurch, said: "Wynnchurch invests in market-leading businesses which possess a customer-centric focus on product and service excellence. Alliance shares these philosophies and we are genuinely excited to partner with George and Jack to help support the Company’s future growth plans."
Funds managed by Oberland Capital invested $100m in Northstar Medical, a global innovator in the production and distribution of radioisotopes. NorthStar received $75m at closing with the ability to draw an additional $25m prior to December 31, 2020 at the company’s option.
"This financing agreement with Oberland Capital enables us to execute on our clearly defined strategy to build solid, sustainable momentum for NorthStar as a fully commercial enterprise,” said Stephen Merrick, President and Chief Executive Officer of NorthStar.
HCAP Partners, a California-based private equity firm, made an investment in Mission Healthcare, a leading home health and hospice services provider headquartered in San Diego. Financial terms were not disclosed.
Nicolas Lopez, Principal at HCAP, commented: "Mission Healthcare is poised for growth and has significant upside for expansion in both its home health and hospice services. Under the leadership of new CEO Paul Ver Hoeve II, the company is well-positioned to scale operations and drive performance improvement. Additionally, with a focus on workplace culture, Mission's values align well with HCAP Partners' impact initiative of providing quality jobs under its Gainful Jobs Approach™."
Bain Capital ponders selling Waystar for $3bn. (FS)
Private equity firm Bain Capital is considering options for Waystar, an integrated cloud-based healthcare revenue cycle management solutions provider, including a potential $3bn sale of the company. Bain, which created the business by combining Navicure and ZirMed in 2017, has held early-stage discussions about a potential deal. Oracle Corporation and Visa are rumored to be interested in acquiring Waystar.
Centerbridge in talks to buy Advisor Group for up to $2bn. (FS)
Centerbridge Partners is in talks to buy Advisor Group, an independent broker-dealer, for up to $2bn. The company is currently owned by private equity investors Lightyear Capital and Public Sector Pension Investment Board of Canada. The deal could be announced as soon as this week.
Developer Related Companies to acquire WarnerMedia’s Manhattan headquarters. (RE)
Developer Related Companies agreed to buy the global headquarters of AT&T’s WarnerMedia in Manhattan for about $2.2bn. An affiliate of Related entered into a contract expected to close late in the second quarter for WarnerMedia’s offices spanning 26 floors at 30 Hudson Yards, which is part of a new $25bn complex of commercial and residential skyscrapers built on Manhattan’s far west side.
Cushman & Wakefield advised Developer Related Companies.
Morphy Oil to acquire Gulf of Mexico assets of LLOG for $1.4bn.
Oil and gas producer Murphy Oil said it would buy Gulf of Mexico assets from LLOG Exploration Offshore, and LLOG Bluewater Holdings, two deepwater exploration companies, for $1.4bn in cash in a move to strengthen its position in the region that saw record production last year. The deal will add about 32k net barrels to 35k net barrels of oil equivalent per day this year to Murphy’s Gulf of Mexico production, which constitutes about 60% oil.
Murphy said it would fund the acquisition with a combination of cash on hand and debt under the company’s $1.6bn revolving credit facility.
General Electic’s WMC Mortgage unit filed for bankruptcy.
Reuters reported that WMC Mortgage, the mortgage finance unit of American conglomerate General Electric, filed for bankruptcy, 11 days after paying a $1.5bn fine over defective subprime mortgages issued by the company before the 2008 financial crisis. The Chapter 11 filing affords “finality” for WMC, given its limited cash —$175k— and support from GE, and the threat of further claims, WMC Chief Executive Mark Asdourian said in a filing.
“This filing is another important step in the de-risking of GE Capital,” a GE spokeswoman said in a statement about WMC’s bankruptcy. “GE and GE Capital are not part of the filing and the case has no adverse impact on our business operations.”
Tyson Foods sold a 6.5% stake in Beyond Meat.
Tyson Foods, an American multinational food corporation, sold its 6.5% stake in vegan burger maker Beyond Meat. The exit comes soon after reports of rising tensions between the two companies rumors emerged that Tyson would develop its own plant-based protein products. Financial terms were not disclosed.
“Tyson Ventures is pleased with the investment in Beyond Meat and has decided the time is right to exit ... (Tyson) plans to launch an alternative protein product soon with market testing anticipated this summer,” Tyson spokesman Worth Sparkman said.
Willcrest and Curran recapitalized Precision Aerospace. (FS)
Private equity firms Willcrest Partners and Curran Companies recapitalized Phoenix-based Precision Aerospace, a provider of metal assemblies for aerospace and industrial applications. No financial terms were disclosed.
“Willcrest Partners and Curran Companies share a long-term orientation that emphasizes extensive investment in people, processes, and systems. We are excited to partner with Marshall Hodge and the team at Precision to expand the company’s capabilities to meet our customers’ exacting standards. With Precision’s excess capacity, our goal is to find the most talented people in the industry to expand while staying truly customer focused,” commented Ben Krick, Partner at Willcrest Partners.
Neuberger Berman closed its third debt fund at $1.7bn. (FS)
Neuberger Bergman, a private, independent, employee-owned investment management firm, held the final close of NB Private Debt Fund III at $1.7bn, surpassing its target of $1.5bn. The fund will look to invest in first lien, unitranche, and second lien loans of US middle-market companies backed by private equity firms.
“At the close of our latest fund, we are honored by the continuing support of our investors and are grateful for their trust in our team,” said Susan Kasser, co-head of the private credit business at Neuberger Berman. “We’re excited about the opportunities that we continue to identify in the private markets that have helped us build our strong and lasting relationships with investors.”
