AMERICAS
Investment firms Pretium and Ares Management agreed to increase the consideration payable to shareholders of Front Yard Residential, a provider of single-family rental housing, from $2.4bn to $2.5bn.
"After receiving a binding proposal reflecting a higher purchase price for Front Yard, Front Yard advised the Pretium Partnership of the proposal as required by the terms of the merger agreement, which led to the Pretium Partnership increasing the price of our transaction with them. Following these discussions, our Board approved the amendment to the merger agreement. We believe the amended merger agreement is a result of a well-run sales process that allows our stockholders to realize higher value for their shares," Rochelle R. Dobbs, Front Yard Chair of the Board.
Front Yard is advised by Weil Gotshal and Manges. Ares is advised by Bank of America Merrill Lynch, Latham & Watkins, Brunswick Group and Prosek Partners. Pretium is advised by RBC Capital Markets, Fried Frank Harris Shriver & Jacobson, Sidley Austin, Prosek Partners and Hunton Andrews Kurth.
Apex Technology Acquisition, a special purpose acquisition company to merge with AvePoint, a data management solutions provider for the Microsoft cloud, in a $2bn deal. Upon completion of the proposed transaction, existing AvePoint shareholders are expected to own approximately 72% of the combined company, which is expected to have approximately $252m of cash on the balance sheet. Sixth Street, a global investment firm, will continue as a shareholder in the combined company. Additionally, the combined company will benefit from $140m in proceeds from a group of institutional investors participating in the transaction through a committed private investment.
"We are thrilled to partner with AvePoint to help thousands of customers protect and manage their Microsoft cloud investments; Microsoft cloud is sweeping through the world's enterprises. AvePoint is well-positioned to take advantage of this. Of over 200 public cloud companies, AvePoint is one of only five with 2020 estimated revenue in the $150m range, 2020 estimated year-over-year growth above 25%, and 2020 estimated EBIT Margin over 10%," Jeff Epstein, Apex CEO.
AvePoint is advised by Citigroup, Cowen & Company, Evercore and Cooley. Apex is advised by Cantor Fitzgerald, Citigroup, Evercore, Goldman Sachs, William Blair & Co, Latham & Watkins and Zeno Group. Goldman Sachs, Citigroup and Evercore are advised by Goodwin Procter.
De' Longhi, an Italian small appliance manufacturer, agreed to acquire Capital Brands, a domestic appliances manufacturer, from Centre Lane, a private equity firm, for $420m.
"This acquisition is a perfect fit for the De' Longhi Group and is consistent with our objectives of geographical expansion and growth by external lines. Moreover, it represents a strategic value from several viewpoints: we add a young and dynamic brand to our portfolio; we enlarge our range of iconic products with an important presence in the blender segment; we increase our penetration in an expanding and strategically important market like the USA; and last, but not least, we strengthen the De' Longhi Group's leadership in the sector of food preparation," Massimo Garavaglia, De' Longhi CEO.
De' Longhi is advised by Bank of America Merrill Lynch, Ernst & Young and White & Case. Centre Lane is advised by Goldman Sachs and PJ Solomon.
Warburg Pincus and Great Hill Partners, two private equity firms, to invest in Quantum Health, the consumer healthcare navigation and care coordination company. Financial terms were not disclosed.
"Quantum Health has built a premier platform enabling customers to seamlessly navigate the often complex healthcare ecosystem. We look forward to partnering with Great Hill Partners, Kara and the rest of the management team to accelerate the company's mission and strategy," TJ Carella, Warburg Pincus Managing Director.
Quantum Health is advised by William Blair & Co and Goodwin Procter. Warburg Pincus is Kirkland & Ellis and Stanton PRM.
Turnspire Capital Partners completed the acquisition of Goodyear Air Springs from EnPro Industries. (FS)
Turnspire Capital Partners, a special situations-focused private equity firm, completed the acquisition of Goodyear Air Springs, a provider of air springs for trucks, trailers, buses, and specialty vehicles, from EnPro Industries, an American industrial conglomerate. Financial terms were not disclosed.
"Through our new company Infinity Engineered Products, we look forward to building on the Goodyear Air Springs legacy by increasing the business' already substantial investment in research and development, technology and new product development, and other initiatives. We are incredibly excited to support the Infinity team as it pursues attractive growth opportunities and strategic acquisitions," Abel S. Osorio, Turnspire Partner.
Turnspire was advised by Chapman and Cutler and Kekst CNC. EnPro was
advised by Fidus Partners and Robinson Bradshaw.
GI Partners, a private investment firm, completed the acquisition of Valet Living, a full-service amenities provider, from private equity investors Ares and Harvest Partners. Financial terms were not disclosed.
"We are delighted to partner with Shawn after spending many years watching him and his team build an incredible resident services platform in Valet Living. They have led the creation and growth of an entire industry focused on delivering a better resident, owner, and property manager experience, and we look forward to working with the entire Valet Living team to continue to grow the company's gold-standard suite of products and services." Hoon Cho, GI Partners Managing Director.
GI Partners was advised by Deutsche Bank, Kirkland & Ellis and Chris Tofalli.
Vertical Bridge, the private owner and operator of communications infrastructure and locations in the US, completed the merger with Eco-Site, a developer of wireless communication, tower sites and infrastructure. Financial terms were not disclosed.
“The combination of Vertical Bridge and Eco-Site is truly a case of one plus one equals three, and we are thrilled to welcome Dale, Bob and Rich and their talented team to the Vertical Bridge family. We look forward to working together to continue bringing our fast, friendly and flexible service to customers as they build their 5G networks," Alex Gellman, Vertical Bridge CEO.
Vertical Bridge was advised by Barclays and Stanton PRM.
Merck, an American multinational pharmaceutical company, agreed to acquire OncoImmune, a clinical-stage biopharmaceutical company, for $425m. In addition, OncoImmune shareholders will be eligible to receive sales-based payments and payments contingent on the successful achievement of certain regulatory milestones. Under the agreement, prior to the completion of the acquisition, OncoImmune will spin-out certain rights and assets unrelated to the CD24Fc program to a new entity to be owned by the existing shareholders of OncoImmune. Upon the closing of the acquisition, Merck will invest $50m, and become a minority shareholder, in the new entity.
"Outstanding work by the OncoImmune team has provided compelling evidence regarding the use of CD24Fc in patients with severe and critical Covid-19 in our Phase 3 Trial. We look forward to working with the scientists and manufacturing engineers at Merck as well as regulators as we seek to accelerate the global development of this potentially important therapy," Yang Liu, OncoImmune Co-Founder and CEO.
Oncolmmune is advised by Guggenheim Partners and Goodwin Procter.
UMAX Group, a developer of green housing, completed the acquisition of Home Foam, a Las Vegas based custom manufacturer of EPS shapes, shutters, coatings and castings for a variety of regional commercial clients and home builders. Financial terms were not disclosed.
"The company (UMAX) felt that Home Foam was a strategic acquisition for the Company due to the fact that its current business operations have many vertical and horizontal avenues through which we can expand our business footprint and aligns with the current business plan moving forward," Rondell Fletcher, UMAX CEO.
CoStar Group, a provider of commercial real estate information, analytics and online marketplaces, agreed to acquire Homesnap, an online and mobile software platform that provides applications to optimize residential real estate agent workflow and reinforce the agent-client relationship, for $250m.
“Over the past thirty years, CoStar has become the leading real estate technology platform by working in partnership with commercial real estate brokers to serve their needs for data, analytics and advertising exposure for their property listings. Similarly, Homesnap works in very close partnership with residential agents to serve their needs for data, analytics and advertising exposure for their property listings. We will continue to differentiate our residential real estate portal and solutions by working solely to help agents market their listings and their brands, which is in sharp contrast to other portals that increasingly advertise on top of agent listings and offer brokerage services directly,” Andy Florance, CoStar Group founder and CEO.
OakStar Bancshares, an American bank, is set to merge with First Bancshares, the holding company for The First, a National Banking Association. This transaction is subject to various closing conditions including receipt of regulatory approvals. Financial terms were not disclosed.
“OakStar Bank was clearly our first choice as the best fit and best match for our customers and community when we were reviewing opportunities for today and in the future. Their commitment to our associates and our customers played a significant role in the selection process of OakStar. Both OakStar and Community First enjoy strong commitments to culture and are excited to work together to exceed the expectations of our customers,” Dave Spehar, Community First Bank President.
Davidson Kempner to bid in $12bn bad loans Alpha deal. (FS)
Alpha Bank, a Greek lender, picked Davidson Kempner, a US investment fund, as its preferred bidder to buy a $12bn portfolio of non-performing loans in what will be Greece’s largest-ever sale of bad debt.
Alpha Bank had selected Davison Kempner European Partners as the preferred bidder for the Galaxy transaction,
Reuters reported.
The sale also includes the disposal of Cepal, Alpha’s bad loan servicing unit. Davidson Kempner has valued the assets at about $344m.
Blackstone seeks to raise $5bn for an investment fund. (FS)
Blackstone Group seeks to raise at least $5bn for its second Asian private equity fund.
The US private equity firm could also increase the size of the fund in the coming months, depending on the level of demand for it,
Reuters reported.
Blackstone plans to launch the fund in the first quarter of 2021, which will focus on India, Japan, Korea and Australia.
$800m raise for Bain Capital's Double Impact investing fund. (FS)
Bain Capital has raised $800m in capital to back companies that the firm bets will profit not only fund investors but society.
Bain Capital Double Impact, the Boston firm’s impact investment unit, has raised its second fund as funding vehicles focused on generating environmental, social and governance advantages have faced their share of marketing headwinds,
WSJ reported.
Bain Capital’s second Double Impact fund was greater than double the scale of the $390m the company raised for its debut in 2017. Investors accounted for around 25% of the brand new fund’s capital. Bain Capital’s personal workers contributed around $75m.
Embraer in advanced partnership talks.
Brazil’s Embraer is in advanced talks with potential partners to build a regional turboprop aircraft and could pick a combination of industrial and financial backing,
Reuters reported.
“We are actively in discussions with (turboprop) partnerships, but I can’t go into more details now. The type of partnership, be it industrial or financial, is wide open. We are looking at all the options, or it could be a combination of the two. We are not ruling anyone out at this point," Arjan Meijer, Commercial Aviation Chief Executive.
A new entrant would shake up a niche, where Europe’s ATR dominates.
Apollo-backed SPAC seeks $250m raise in US IPO. (FS)
Private equity Apollo Global Management-backed blank-check company is seeking to raise $250m in a US initial public offering.
Spartan Acquisition II is pursuing to sell 25m units at $10 apiece and plans to use cash proceeded to invest in a business focused on energy transition and sustainability.
The SPAC had previously expected to raise about $400m in its IPO.
EMEA
The European Commission said it had extended its deadline for its competition ruling on the London Stock Exchange’s $27bn takeover of data and analytics firm Refinitiv by four days to January 21. No reason for the extension was provided,
Reuters reported.
Refinitiv is advised by Canson Capital Partners, Evercore, Jefferies & Company, Corrs Chambers Westgarth, Osler Hoskin & Harcourt, Simpson Thacher & Bartlett and Eterna Partners. LSE is advised by RBC Capital Markets, Oliver Wyman, Barclays, Goldman Sachs, Morgan Stanley, Robey Warshaw, Blake Cassels & Graydon, Freshfields Bruckhaus Deringer and Teneo. Financial advisors are advised by Herbert Smith Freehills.
Braemar Shipping Services-backed AqualisBraemar, a Norway based company engaged in providing marine and engineering consultancy services, agreed to acquire LOC Group, an international marine and engineering consulting firm. Financial terms were not disclosed.
“We want to grow through continued expansion in the rapidly growing offshore renewables industry, and leverage on our position within shipping and oil and gas markets, to support this energy transition. LOC Group, with its strong and highly complementary footprint within the same industries, is a perfect fit for this strategy and will support our ambition of consistently returning capital to our shareholders,” David Wells, AqualisBraemar CEO.
AqualisBraemar is advised by Clarksons Platou Securities, Eversheds Sutherland, Haavind and Corporate Communications. Braemar Shipping Services is advised by Buchanan and finnCap.
Investors CDPQ, QIA, Enstar, JC Flowers, Oak Hill and Stone Point completed the $800m investment in Inigo, a new insurance company. Inigo's management also participated in the funding round.
"This significant capital raising, together with our acquisition, gives us the platform we need to turn Inigo from a concept into reality. We believe that 2021 will mark the beginning of an exciting growth phase for Lloyd's and the London Insurance Market and Inigo will contribute to growing the specialty and reinsurance marketplace, as it returns to profitability," Richard Watson, Inigo Founder.
Inigo is advised by Evercore, Guy Carpenter, Clifford Chance and Maitland.
TowerBrook Capital and Warburg Pincus, American private equity firms, offered to acquire Automobile Association Developments, a provider of road services for commercial customers for £218m ($289m).
“The board, having considered carefully the viability of a range of alternative potential debt and equity refinancing options together with its financial advisers, has indicated to the consortium that it would be willing to recommend a cash offer on the terms of the proposal. Accordingly, the company is engaged in advanced discussions with the consortium in relation to the possible offer,” Automobile Association Developments.
Automobile Association Developments is advised by Citigroup, Evercore, JP Morgan and FTI Consulting.
Connells Group, a privately owned real estate firm, completed the due diligence for the acquisition of Countrywide, a UK's real estate agent, from Apollo Global for c.£172m ($228m).
“Countrywide shareholders have repeatedly been promised jam tomorrow and it has never been delivered. There is no quick and easy fix for Countrywide. Turning the business around, especially in unpredictable market conditions, will be a difficult, expensive and lengthy process," David Livesey, Connells Group Chief Executive.
Connells is advised by Evercore, Clifford Chance and MHP Communications.
Crédit Agricole Italia, an Italian subsidiary of banking group Credit Agricole, offered to acquire Credito Valtellinese, an Italian bank based in Sondrio, for $875m. Algebris, an asset management company, has already agreed to divest its 5.4% stake.
"With this transaction, Credito Valtellinese's customers and employees will gain access to the same first-class financial products and services as Crédit Agricole Italia, benefitting from Crédit Agricole Group's scale, strength, innovative and client-centric culture, and the combined group will continue its strong commitment to supporting Italy and the local communities," Giampiero Maioli, Crédit Agricole Italy CEO.
Credit Agricole Italy is advised by Credit Agricole, JP Morgan and BonelliErede.
Greencoat UK Wind, a British investment company, agreed to acquire a 49% stake in the Humber Gateway, an offshore wind farm, from Rheinisch-Westfälisches Elektrizitätswerk, a German multinational energy company, for $860.5m.
"We are delighted to announce our investment in Humber Gateway, a high load factor, ROC accredited offshore wind farm. This transaction adds another attractive asset to our portfolio which will stand at 38 wind farm investments, with a generating capacity of 1.2GW. We are also very pleased to be able to play our part in the wider development of the wind industry, heralded by recent government announcements, and enabling the continued build out of further offshore generating capacity in the UK," Shonaid Jemmett-Page, UKW Chairman.
Greencoat UK Wind is advised by RBC Capital Markets and Headland Consultancy.
PAI Partners, a european private equity firm, completed the acquisition of a majority stake in Euro Ethnic Foods, the company which owns and operates the grocery section of food retailer Grand Frais. Financial terms were not disclosed.
“We have built EEF, and more broadly Grand Frais, on strong values, convinced that consumers expect more transparency from distributors regarding their products. Today, we believe more than ever that EEF and Grand Frais retain considerable growth potential. That is why we have chosen a pan-European partner with long-standing experience and recognised expertise in the sector to help to further expand the business and to seize the best future development opportunities for EEF, Grand Frais and the group’s wider ecosystem,” Léo and Patrick Bahadourian, EEF founders and Grand Frais co-founders.
PAI Partners was advised by Greenbrook and DGM Conseil.
UBI Banca, an Italian banking group, agreed to acquire an 80% stake in Aviva Vita, a life insurance joint venture, from Aviva, a British multinational insurance company, for $745m.
"Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean business. We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders," Amanda Blanc, Aviva CEO.
Warburg Pincus completed the $50m investment in McMakler. (FS)
Warburg Pincus, an American private equity firm, completed the $50m investment in McMakler, German real estate agents and brokerage company.
“The traditional real estate sale process is inefficient, often opaque and does not harness the full potential of available data and technology. McMakler, optimises cutting-edge technology and data, to provide a highly professional and efficient service for customers. Felix and his team have the potential to redefine the real estate market and the Warburg Pincus funds are proud to support McMakler on this journey. This partnership underlines Warburg Pincus’ strong commitment to the German market and its ability to support young, innovative companies with growth capital and global expertise," René Obermann, Warburg Pincus Deutschland Europe Co-Head.
Aryzta rejected Elliott's proposed acquisition.
Private equity firm Elliott Capital Advisors made a proposal to Aryzta on November 18 to acquire all outstanding shares of the Swiss baker, but Aryzta rebuffed a takeover offer valuing at about $871m.
Aryzta said it had received the letter, but the offer was “subject to certain conditions, some of which cannot be satisfied as a matter of fact”.
Elliott made a bid on November 18 of $0.87 per share for the Swiss baking company. The offer represents a 27% premium to Aryzta’s closing price that day.
Prosus seeks further acquisitions after reaching $4.3bn. (FS)
Prosus, a Dutch e-commerce giant, is looking for acquisitions in food delivery and online education as the company reported a 28% rise in first-half earnings and a net cash position of $4.3bn.
The owner of global internet assets lost out on two high-profile takeover battles in the past year and maintains a strong liquidity position. As well as cash, Prosus has the ability to borrow and sold $2bn of debt in July, Bloomberg reported.
LVMH appointed new CEO. (People)
Moët Hennessy Louis Vuitton has named Anne de Vergeron chief executive officer of Repossi, tapping a board member of the Place Vendôme jeweler with a strong background in finance.
Formerly an investment banker, de Vergeron worked at UBS for 16 years before joining LVMH in business development, serving as director of the activity.
Dogus Holding deal to value mall at $1bn. (RE)
Dogus Holding, a conglomerate in Turkey, agreed to sell a 30% stake in a high-end Istanbul shopping center to Qatar’s sovereign wealth fund unit.
Dogus will get around $300m for the stake in IstinyePark. The deal estimates the mall at about $1bn, Bloomberg reported.
Dogus will likely use the cash proceeded to meet its obligations under the 2019 debt agreement, in which it committed to sell assets to repay creditors. A filing on the Turkish Competition Board’s website said Monday the sale by a Dogus unit to Qatar Holding was approved, without giving details of the deal.
Phoenix to consider international sale to focus on the UK.
Phoenix Group Holdings, Europe’s biggest life-insurance consolidator, is weighing selling international operations to focus on the UK.
The Group is working with an adviser on measuring interest in its business in Ireland and Germany markets. The potential sale could value at about $770.5m, Bloomberg reported.
No final decisions have been made, and there’s no certainty Phoenix’s deliberations will lead to a transaction.
APAC
US DFC to invest $2b in Indonesia’s sovereign wealth fund. (FS)
The US International Development Finance Corporation intends to invest $2bn in Indonesia‘s new sovereign wealth fund.
The DFC would also engage with its partners in Japan, United Arab Emirates and Singapore to persuade them to invest in the soon-to-be-launched fund, officially named Indonesia Investment Authority, DealStreetAsia reported.
Perfect Diary parent's shares jump in US debut.
Shares of Yatsen Holding, the parent company of Guangzhou-based unicorn Perfect Diary, soared 66% in their US market debut, after it raised about $617m in its initial public offering.
The company’s shares opened at $17.5 per American depositary share, well above the IPO price of $10.5 per ADS.
Earlier in the session, Yatsen had priced its offering of 58.8m ADS on the New York Stock Exchange at the top-end of its range of $8.5 to $10.5 per ADS.
Carlyle-backed buyout of Japan Asia Group competes for assets. (FS)
The management buyout of a small green energy and technology group has put Carlyle on a collision course with the family of most notorious Japanese activist investor, FT reported.
The expected struggle over Japan Asia Group will oblige Carlyle to deal with Yoshiaki Murakami family members' run funds. The Singapore-based investor is often accused of using “greenmail” tactics on small Japanese companies, buying enough shares to threaten a takeover and forcing the owners to fend off the attack by buying them back at a premium.
The tussle focuses on Carlyle’s backing of a $354m buyout of JAG and its subsidiaries. It will offer $6 per share, a 75% premium to JAG’s closing price a day before the November 5 announcement.
ShawKwei & Partners considers $400m sale of Beyonics. (FS)
ShawKwei & Partners, a private equity firm, is considering a sale of precision manufacturer Beyonics Technology.
The buyout firm is working with investment bank Morgan Stanley to find a buyer for the business. ShawKwei is seeking to raise at least $300-400m, DealStreetAsia reported.
Deliberations are at an early stage, and the firm could decide not to proceed with the potential divestment. ShawKwei is seeking a deal valuing the firm at more than 10 times its earnings before interest, taxes, depreciation and amortization.
Evergrande receives $4.6bn lifeline from state companies.
China Evergrande Group secured a $4.6bn investment from state-linked firms and lined up 23 cornerstone investors for the spinoff of its property services unit.
Companies backed by city governments in Guangdong will buy equity worth $4.6bn from existing investors in Hengda Real Estate, an Evergrande’s main property assets holder in China, Bloomberg reported.
