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AMERICAS
Beijing is weighing holding up US chipmaker Broadcom's $69bn purchase of cloud computing company VMware, FT reported.
China's State Administration of Market Regulation has not signed off on the deal and is likely to delay approving the transaction after US President Joe Biden's administration introduced tougher chip controls.
VMware is advised by Goldman Sachs (led by Stephan Feldgoise and Sam Britton), JP Morgan (led by Madhu Namburi), Axinn Veltrop & Harkrider (led by John Harkrider), Gibson Dunn & Crutcher (led by Barbara Becker and Andrew Kaplan), Sullivan & Cromwell (led by Michael Rosenthal) and FGS Global (led by Paul Kranhold). Financial advisors are advised by Debevoise & Plimpton (led by Michael Diz) and Sullivan & Cromwell (led by John L. Savva and Alison S. Ressler). Broadcom is advised by Bank of America (led by Kevin Brunner and Ron Eliasek), Barclays (led by Gary Posternack), Citigroup (led by Tyler Dickson), Credit Suisse (led by David Wah), Morgan Stanley (led by Anthony Armstrong), Santander, Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by Ronald Chen, Viktor Sapezhnikov and David Karp), Brunswick Group (led by Simon Sporborg) and Joele Frank (led by Arielle Rothstein, Tim Ragones and Joele Frank). Financial advisors are advised by Cooley (led by Ben Beerle). Silver Lake is advised by Simpson Thacher & Bartlett (led by Atif Azher).
Platinum Equity, a private equity firm, agreed to acquire a 50% stake in US LBM, a distributor of specialty building materials in the United States, from Bain Capital, a private investment firm. Financial terms were not disclosed.
"US LBM has built an impressive, diversified business with scale while preserving a vibrant, entrepreneurial spirit. In the near term, we think the company's footprint, financial profile, and operating model will allow it to continue growing and strengthening its operations as it navigates the complexities of the current environment. We are optimistic about the outlook for new housing over the long term given the nationwide shortage stemming from years of underbuilding that has created an imbalance in supply and demand. We look forward to working with the company's leadership group and our partners at Bain Capital to put our financial and operational resources to work," Jacob Kotzubei, Platinum Equity Co-President.
Ferrara Candy, a sugar confections company, agreed to acquire Jelly Belly, a company that manufactures Jelly Belly jelly beans and other candy. Financial terms were not disclosed.
"As we considered the future of Jelly Belly Candy, we have been steadfast in our commitment to create a win-win situation for our employees, consumers, and products. When I met with the Ferrara team, I recognized a like-minded group that shares our knowledge and passion for the candy business and has the talent and resources to grow our products and the careers of our people around the world. I am confident of the continued success of Jelly Belly as part of the Ferrara portfolio," Herman Rowland, Jelly Belly Chairman.
Consello Capital, a private equity firm, completed the acquisition of a majority stake in ProSearch Strategies, a provider of tech-enabled legal services to enterprise customers. Financial terms were not disclosed.
"More than ever, business leaders are looking for actionable ways to use technology and AI to improve their business processes and thereby create shareholder value. ProSearch is a great example of a B2B company that helps its clients do just that, with a relentless focus on using technology to drive efficiency. We look forward to working closely with the ProSearch team to help them continue to deliver industry-leading products and services, expand their technology offerings and further add to their blue-chip roster of customers," Peter Morrow, Consello Capital Managing Partner.
ProSearch was advised by Guggenheim Partners and Buchalter. Consello Capital was advised by Kirkland & Ellis.
Southwire,an electrical and telecommunications products provider, completed the acquisition of genesis wire & cable business from Resideo, a technology-driven products and components manufacturer, for $88m.
"The closing of the Genesis sale represents our commitment to optimizing our product portfolio and our continued focus on value creation opportunities across our Products and Solutions business. Genesis remains a strong partner to our ADI Global Distribution business and we look forward to our continued partnership as they join an industry leader in Southwire," Jay Geldmacher, Resideo President and CEO.
Thompson Street Capital-backed Isto Biologics, a biologics and cellular therapy company, completed the merger with Biologica Technologies, a medical devices, plastic, and reconstructive surgery services provider. Financial terms were not disclosed.
"We are thrilled for our entire Advanced Biologics/Biologica team to join forces with Isto Biologics. This merger brings together the clinical, commercial, and research-driven expertise of both companies' and a shared commitment to help patients heal faster," Amit Govil, Biologica Technologies President.
Vista Credit Partners, the credit investing arm of Vista Equity Partners, completed the investment in aPriori, a provider of a digital manufacturing simulation software. Financial terms were not disclosed.
"Vista Credit Partners is proud to support innovative enterprise software companies like aPriori with flexible capital solutions and operational support to further establish market leadership," David Flannery, Vista Credit President.
OpenAI Is in talks to sell shares at a $86bn valuation.
OpenAI is in talks to sell existing employees' shares at an $86bn valuation. The artificial intelligence startup behind ChatGPT is negotiating the transaction, known as a tender offer, with potential investors, Bloomberg reported.
The firm still needs to finalize allocations, and terms could still change. Last month, the Wall Street Journal had said that OpenAI, which is backed by Microsoft, was seeking a valuation of up to $90bn for a sale of shares.
Tillman Infrastructure is seeking a $500m capital injection. (FS)
Tillman Infrastructure, which counts UBS Asset Management among its investors, is in talks to raise around $500m in preferred equity to support its growth, Bloomberg reported.
The company, which builds, owns, and operates cell towers, is working with advisers to solicit interest from potential investors. If an agreement is reached, a transaction could occur before the end of the year. Terms aren't finalized, and it's possible the size or structure of the preferred equity injection could change.
EQT picks Evercore for sale of data management firm Rimes. (FS)
EQT has chosen Evercore to help with a potential sale of data management company Rimes Technologies, Bloomberg reported.
The Swedish investment firm and its adviser are working to gauge interest in Rimes, which could be valued at as much as €2bn ($2.1bn). A formal sale process could kick off early next year. Deliberations are at an early stage, and there's no certainty they'll lead to a transaction.
Chinese-owned pork producer Smithfield prepares for US listing.
Smithfield Foods' Chinese owner, WH Group, is working with banks to take the US-based pork producer public again in the United States, Wall Street Journal reported.
Smithfield could list its shares as early as next year, adding that the deliberations are ongoing and the timing could change. WH Group acquired Smithfield in 2013 in a $4.7bn deal aimed at tapping the massive supplies of US meat for export to China.
KKR closes third global technology fund at nearly $3bn. (FS)
New York-headquartered private equity firm KKR has closed its third global technology fund at approximately $3bn, DealStreetAsia reported.
KKR Next Generation Technology Growth Fund III has received commitments from both new and existing investors globally, including public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, private wealth and fintech platforms, family offices, and high-net-worth individual investors. The investment firm said it will also put some $435m in the fund.
EMEA
Permira, a private equity firm, completed the acquisition of a majority stake in Gruppo Florence, a luxury goods manufacturer. Financial terms were not disclosed.
"Gruppo Florence is an outstanding project. We very proudly contributed to its launch and development, thus creating in just few years a leading player of textile manufacturing with exceptional development opportunities that the new shareholder will undoubtedly be able to grasp," Carlo Pesenti, Italmobiliare CEO.
Gruppo Florence was advised by Bain & Co, Bank of America, Citigroup, KPMG, BonelliErede, DWF (led by Luca Cuomo), Dentons (led by Antonio Legrottaglie) and Gianni Origoni Grippo Cappelli & Partners. Permira was advised by Boston Consulting Group, Ernst & Young, JP Morgan, Latham & Watkins, Legance (led by Filippo Troisi) and Maisto e Associati. VAM Investments was advised by Societe Generale and UniCredit.
Hitachi is set to win EU antitrust approval for its €1.7bn ($1.8bn) acquisition of Thales' GTS railway signalling business on the condition it sells assets in France and Germany, Reuters reported.
Hitachi submitted its offer to sell its mainline signalling business in France and Germany to the European Commission last month.
Hitachi is advised by Deutsche Bank, Perella Weinberg Partners, Clifford Chance (led by Laurent Schoenstein) and Machado Meyer Sendacz e Opice Advogados (led by Maria Eugenia Novis). Thales is advised by Lazard, August Debouzy, BDGS Associes, Baker McKenzie and Levy & Salomao Advogados.
CoStar Group, a global provider of online real estate marketplaces, information, and analytics, offered to acquire OnTheMarket, a residential property portal, for £100m ($122m).
"We believe the acquisition of OnTheMarket represents an attractive and efficient entry point into the $10tn United Kingdom residential property market. We are excited to welcome the OnTheMarket team to the CoStar Group family. OnTheMarket's network of property professionals and breadth of advertiser relationships provide a strong foundation to compete with the dominant United Kingdom property portals. The combination of OnTheMarket's large network of agents and access to listings, together with the marketplace experience and resources of CoStar Group, has the potential to create the leading agent-friendly player in the UK residential marketplace. We see OnTheMarket as an important step in expanding our Homes.com residential network not only in the UK, but across Europe. We believe the market opportunity in Europe is over $10bn, and we intend to participate aggressively in developing and expanding our residential marketplace network," Andy Florance, CoStar Group Founder and CEO.
OnTheMarket is advised by Shore Capital & Corporate (led by Daniel Bush), Zeus Capital (led by Jamie Peel), Eversheds Sutherland and Teneo (led by Giles Kernick). CoStar is advised by Goldman Sachs (led by Barry O'Brien) and Latham & Watkins.
Cordiant Digital Infrastructure, an operationally focused specialist digital infrastructure investor, completed the acquisition of Speed Fibre, an open access fibre infrastructure provider, for €191m ($207m).
"We are delighted to welcome Speed Fibre into CORD's portfolio, which is now further diversified by asset class and geography. Fibre remains an integral part of digital infrastructure, supporting economic growth and social connectivity. As we remain committed to our "Buy, Build, and Grow" model, the plan is to invest further in Speed Fibre's network and work closely with the Irish government and local partners to extend high-speed digital access. This will nurture domestic innovation and provide a thriving ecosystem for both multi nationals and homegrown tech companies to flourish," Steven Marshall, Cordiant Capital Chairman of Digital Infrastructure.
I Squared Capital, a global infrastructure manager, agreed to acquire Arriva Group, a provider of passenger transport, from Deutsche Bahn, a provider in the mobility and logistics sector. Financial terms were not disclosed.
"Transport accounts for around one-fifth of global CO₂ emissions. Three-quarters of this is from road transport, and a greener public transport sector is critical to the shift to lower-carbon infrastructure. Arriva's strategy for net-zero operations and the decarbonisation of its fleet aligns with our strategy to develop and scale assets with technologies that accelerate the energy transition, as well as providing cleaner air in cities and towns by investing in green public transport. We are excited to work with Arriva and we will invest to support its future growth as a major European bus and rail operator," Gautam Bhandari, I Squared Global CIO and Managing Partner.
Spire Healthcare, a healthcare group, completed the acquisition of Vita Health, a provider of mental and physical health services, from ARCHIMED, an investment firm, for £74m ($90m).
"Vita addresses two of the main reasons for long-term illness and absence from work in the UK: mental health issues and back and joint pain. This acquisition complements our existing business and aligns well with our strategy of developing new services and moving into adjacent markets. The addition of Vita means that we are now able to meet people's physical and mental health needs. Vita fits closely with the services we offer to corporate customers and gives us a good springboard for future growth. With its outstanding patient feedback, strong track record in winning contracts and proven management team, Vita is an excellent addition to our business and I look forward to welcoming our new colleagues to Spire," Justin Ash, Spire Healthcare CEO.
Spire Healthcare was advised by Instinctif Partners (led by Damian Reece).
bolttech, an international insurtech, completed the acquisition of Digital Care, an insurtech solutions provider. Financial terms were not disclosed.
"We are excited to welcome Digital Care to the bolttech family.Digital Care's strong track record of innovation and customer service, combined with its deep expertise in the field of integrated protection, makes it an ideal partner as we accelerate our growth in EMEA and globally. Together, we will provide innovative solutions to improve insurance distribution to more partners and help more people access the protection they need," Rob Schimek, bolttech CEO.
Brookfield and Antin eye bids for Germany's Techem. (FS)
Brookfield Infrastructure Partners and Antin Infrastructure Partners are among several bidders vying for a stake in German metering firm Techem. Private equity fund Partners Group wants to sell its majority stake for as much as €9bn ($9.5bn), but offers may be closer to €7bn ($7.4bn), Reuters reported.
A decision on an alternative IPO track will be taken next year once bids have been evaluated. European companies are confronting IPO risks as macroeconomic conditions worsen, with defense contractor Renk recently pulling its IPO.
Greece said to ready 20% stake sale in the National Bank next month. (FS)
Greece is preparing to sell a 20% stake in the National Bank of Greece as part of its divestment plan for the country's lenders. The move is expected to take place in mid-November, Bloomberg reported.
The aim is to attract as many long-term investors as possible. The Hellenic Financial Stability Fund, a bank recapitalization tool established at the start of Greece's bailout programs, holds about 40% of the National Bank, whose market value was almost €5bn ($5.3bn) on October 18. But it has decided against divesting it all at once.
German broker flatexDEGIRO is open to takeover by a US or Asian company.
FlatexDEGIRO, the German online broker with operations throughout Europe, is open to a takeover by a US or Asian company, a move that could "make a lot of sense", Reuters reported.
The broker, with 2.5m customer accounts in 16 countries, is shifting focus to "growth and opportunities" after making progress on regulatory issues.
"If a strategic partner comes and makes an offer to take us over and be part of a bigger business, then that would make a lot of sense," Frank Niehage, FlatexDEGIRO CEO.
Abu Dhabi wealth fund to merge life sciences assets ahead of IPO. (FS)
Abu Dhabi sovereign wealth fund ADQ is consolidating its pharmaceutical assets to create what would be one of the region's largest life sciences firms ahead of a potential initial public offering, Bloomberg reported.
The fund will merge Egypt's Amoun Pharmaceutical, Switzerland's Acino, United Arab Emirates Pharmax Pharmaceuticals, and Turkey's Birgi Mefar Group, which it recently acquired.
CVC backers plan to sell shares in over $1bn IPO. (FS)
CVC Capital Partners' institutional backers plan to sell shares in the buyout group as part of its upcoming initial public offering. The company is preparing to raise more than €1bn euros ($1.05bn) in what is set to be one of Europe's largest stock market listings this year, Reuters reported.
The IPO, which could be launched in Amsterdam before the end of the month, will include a mix of new and existing shares. CVC targets an IPO that would value the company at more than €10bn ($10.5bn), with the company placing around 10% of its share capital.
APAC
An independent expert's report into a Brookfield-led consortium's $9.7bn bid for Australia's Origin Energy has deemed the offer fair value, but the takeover is facing growing resistance from investors, Reuters reported.
Origin Energy said an independent evaluation by corporate advisory firm Grant Samuel of Australia's largest energy retailer's equity valued it at $5.4 - $6 per share. The range covers the offer price of about $5.6 apiece from the consortium's March bid, which consists of Australia dollars, US dollars and dividend components.
Qantas Airways will drop its $387m plan to buy out charter flight operator Alliance Aviation Services, the companies said on October 19, months after Australia's competition regulator blocked the deal, Reuters reported.
The Australian Competition and Consumer Commission had in April denied authorisation for the acquisition, saying the deal was likely to push prices up and service quality down. The two companies, however, believe the buyout would have beefed up customer value without negatively affecting competition in the resources sector.
Cognex, an industrial machine vision company, completed the acquisition of Moritex, a provider of optics components, from Trustar Capital, a private equity firm, for $275m.
"At Cognex, we provide manufacturers with the most advanced machine vision solutions. We have long admired, and sold, Moritex optics components as an important element of what we do. We often note that machine vision functions like the eye and brain of a human: Cognex vision systems are akin to the brain, and Moritex optics, the eye. Bringing these complementary technologies together will streamline the solution we provide our customers, enabling a more advanced and integrated offering. Expanding into the optics components segment with this acquisition will increase our served market and deepen our penetration of the Japanese machine vision market," Robert Willett, Cognex President and CEO.
Cognex was advised by Evercore. Trustar Capital was advised by Morgan Stanley.
TCV, an investment firm, led a $167m Series F round in Employment Hero, an end-to-end HR, payroll and recruitment solution, with participation from Insight Partners, AirTree, Seek and OneVentures.
"We want to be recognised as an Australian business that's gone global, with ambitions to be the largest startup that's ever come out of Australia," Ben Thompson, Employment Hero Co-Founder and CEO.
Pulp producer RGE considers bid for $3bn China tissue maker Vinda. (FS)
Singapore-based RGE is considering an offer for Vinda International, potentially setting up a bidding war for the Hong Kong-listed tissue maker, Bloomberg reported.
The pulp producer is working with advisers on a potential buyout offer for the Chinese firm. Deliberations are ongoing, and RGE could still decide against a deal. A move by RGE could add a new dimension to the bidding for Essity's 52% stake in Vinda, which has drawn bidders such as Suzano, the world's largest producer of hardwood pulp from Brazil. Buyout firms Bain Capital, CVC Capital Partners, and DCP Capital also advanced in the process.
P&G to weigh $1bn sale of VS Sassoon's China business.
Procter & Gamble is weighing options for the Chinese operation of its hair-care brand VS Sassoon. The consumer products giant has started gauging preliminary investor interest for the VS Sassoon business in the world's second-largest economy, Bloomberg reported.
Options under consideration include a full or partial stake sale. P&G is seeking a valuation of about $1bn for the asset in any deal. Deliberations are ongoing, and there's no certainty they will result in a transaction.
"We're constantly looking at our portfolio, both acquisitions and potential options to create value for our shareholders," Andre Schulten, Procter & Gamble CFO.
Tata Group considers topping up another $1bn for super-app arm.
Tata Group is weighing putting in $1bn of fresh capital into its super app venture as the salt-to-software conglomerate seeks to improve the digital business, Bloomberg reported.
The injection is on top of the $2bn that Tata Group invested in the venture earlier this year. Tata Digital will receive the new funding in the coming year should a deal proceed. The conglomerate has asked the digital unit, which runs its flagship online platform Tata Neu, to streamline its operations and fix glitches in the app to make it more user-friendly.
Keppel raises $218m for China-focused sustainable urban renewal strategy. (FS)
Singapore's Keppel on October 19 announced that it has secured about $218m in initial commitments for its China-focused sustainable urban renewal strategy, DealStreetAsia reported.
Keppel is committing about $22m to the SUR strategy, which was launched in response to growing global demand for more environmentally efficient urban renewal solutions in gateway cities. The SUR strategy will have assets under management of about $533m when fully leveraged and invested. Its two partners have the option to upsize their stake.
China's Sunwoda Electric, last valued at $4.9bn, moves towards domestic IPO.
Shenzhen-based Sunwoda EVB, a spinoff of publicly traded Sunwoda Electronic, officially filed for an IPO application with the China Securities Regulatory Commission, DealStreetAsia reported.
It also signed an agreement with CITIC Securities to receive a pre-listing tutorial from the domestic investment bank. The development comes about three months after the parent group disclosed in a July 15 regulatory filing its decision to spin off the EV battery unit for a separate listing on the startup board ChiNext in Shenzhen.
Philippines suspends rollout of its first sovereign wealth fund.
President Ferdinand Marcos Jr., on October 19, suspended implementation of the country's first sovereign wealth fund, just months after he signed it into law and lauded the launch to global investors, DealStreetAsia reported.
"President Ferdinand R. Marcos Jr. issued a suspension because he wanted to study carefully the IRR to ensure the purpose of the fund will be realized for the country's development with safeguards in place for transparency and accountability," Executive Secretary.
Kakao Exec arrested for stock manipulation in K-Pop takeover. (People)
Kakao Chief Investment Officer Bae Jae-hyun was arrested early October 19.
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