AMERICAS
Cascade Investment, a shareholder in a Canadian Class I freight railway Canadian National Railway, said it fully supports talks between Kansas City Southern, a transportation holding company, and Canadian National.
"There is a clear path to completion as Canadian National has stated its commitment to address any reasonable regulatory requirements. Canadian National's cash and stock proposal also offers greater financial value and certainty to Kansas City Southern shareholders. Cascade looks forward to participating in the value a combination with KCS will create for all stakeholders," Charles Zehren, Cascade Investment.
Canadian National is advised by JP Morgan, RBC Capital Markets, Cravath Swaine & Moore, Norton Rose Fulbright, Sidley Austin, Stikeman Elliott, Torys, Brunswick Group and Longview Communications. Kansas City is advised by Bank of America, Morgan Stanley, Baker & Miller, Davies Ward Phillips & Vineberg, Wachtell Lipton Rosen & Katz, White & Case, WilmerHale and Joele Frank. Financial advisors of Kansas City are advised by Willkie Farr & Gallagher. Canadian Pacific is advised by BMO Capital Markets, Evercore, Goldman Sachs, Bennett Jones, Blake Cassels & Graydon, Creel Garcia-Cuellar Aiza y Enriquez, Sullivan & Cromwell and Edelman. Financial advisors of Canadian Pacific are advised by Fried Frank Harris Shriver & Jacobson.
CoreLogic, a global property information, analytics and data-enabled solutions provider, announced that its shareholders approved the $6bn acquisition by Stone Point Capital and Insight Partners. The completion of the transaction remains subject to regulatory approval and customary closing conditions.
"This is a significant milestone for CoreLogic and a very positive outcome for our shareholders. With their overwhelming support, we expect to be able to close the transaction during the second quarter," Paul Folino, CoreLogic Chairman.
CoreLogic is advised by Evercore, Skadden Arps Slate Meagher & Flom and Sard Verbinnen & Co. Evercore is advised by Gibson Dunn & Crutcher. Stone Point Capital and Insight Partners are advised by JP Morgan, Wells Fargo Securities, Kirkland & Ellis and Willkie Farr & Gallagher.
Stem, a global company in artificial intelligence-driven clean energy storage systems, went public via merger with Star Peak Energy Transition, a publicly traded special purpose acquisition company, in a $1.35bn deal.
"We are proud to complete the combination of Star Peak and Stem, establishing Stem as the first pure-play smart energy storage company to go public in the US. We are more confident than ever in Stem's significant value, offering investors a unique ESG opportunity to invest in a pure play clean energy company that's helping to revolutionize the electric grid. I look forward to continued partnership with John and the world-class Stem team as we drive further growth and success over the long term," Michael Morgan, Star Peak Chairman.
Stem was advised by Morgan Stanley, Nomura, Gibson Dunn & Crutcher, Wilson Sonsini Goodrich & Rosati and ICR. Star Peak Energy Transition was advised by Credit Suisse, Goldman Sachs and Kirkland & Ellis.
Summit Utilities, a natural gas distribution and transmission company, agreed to acquire gas distribution assets of CenterPoint Energy, a US electric utility, for c. $2.2bn. Assets are located in Arkansas and Oklahoma.
"Today, we couldn't be more excited to announce our plans to serve more communities in these two great states with the acquisition of CenterPoint's Arkansas and Oklahoma gas distribution systems. CenterPoint has built a strong reputation for quality customer service and we are eager to carry on that tradition, and continue to help families, businesses and industries throughout Arkansas and Oklahoma meet their energy needs through the delivery of safe, reliable and affordable natural gas services," Kurt Adams, Summit Utilities President and CEO.
Summit Utilities is advised by Centerview Partners, KeyBanc Capital Markets, Morgan Lewis & Bockius and Wilby Public Affairs. Debt financing is provided by KeyBank. Centerpoint is advised by JP Morgan, RBC Capital Markets and Baker Botts.
Casey's General Stores, a convenience store chain in the United States, agreed to divest gasoline markets in Nebraska and Iowa to win the Federal Trade Comission's antitrust approval for its $580m purchase of Bucky's Convenience Stores from Buchanan Energy, which operates convenience stores primarily in Illinois and Nebraska.
"In January of this year, we outlined our business strategy to achieve top-quintile EBITDA growth and deliver on our purpose 'to make life better for communities and guests every day. We've been hard at work executing on our strategic vision to reinvent the guest experience; creating efficiencies to improve the shape of our business and to fund future growth, and accelerating our new store builds and acquisitions. Adding Bucky's to the Casey's family is aligned with our strategy," Darren Rebelez, Casey's President and CEO.
Buchanan Energy is advised by Bank of America and McGrath North Mullin & Kratz. Casey's is advised by Goldman Sachs and Husch Blackwell. Goldman Sachs is advised by Fried Frank Harris Shriver & Jacobson.
Olam Food Ingredients, an operating group of Olam International, a global food and agri-business company, agreed to acquire Olde Thompson, a manufacturer and supplier of private label dry spices and seasonings, from Kainos Capital, a food and consumer-focused private equity firm, for $950m.
"The acquisition of Olde Thompson by Olam is a terrific outcome for all of our key stakeholders. For our customers, this partnership pushes Olde Thompson to the forefront of ESG as it provides access to Olam's extraordinary international sourcing capabilities and spice expertise that will allow us to provide a new level of traceability and transparency to the marketplace. Our employees will benefit from additional resources and opportunities that will accelerate our growth even further," David Sugarman, Olde Thompson CEO.
Olde Thomson is advised by Lazard, Sawaya Capital, Weil Gotshal and Manges and Watatawa. Olam is advised by Davis Polk & Wardwell. Kainos is advised by Kekst CNC.
Realty Income, a real estate investment trust, agreed to acquire VEREIT, a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the US, for $11.1bn. The combined company will have an enterprise value of $50bn.
"We believe the merger with VEREIT will generate immediate earnings accretion and value creation for Realty Income's shareholders while enhancing our ability to execute on our ambitious growth initiatives. Together, our company will enjoy increased size, scale, and diversification, continuing to distance Realty Income as the leader in the net lease industry. VEREIT's real estate portfolio is highly complementary to ours, which we expect to further enhance the consistency and durability of our cash flows," Sumit Roy, Realty Income President and CEO.
VEREIT is advised by JP Morgan and Wachtell Lipton Rosen & Katz. Realty Income is advised by Moelis & Co, Wells Fargo Securities and Latham & Watkins.
Anthem, a health benefits company, completed the acquisition of myNEXUS, a comprehensive home-based nursing management company for payors, from WindRose Health Investors, the New York-based healthcare private equity firm. Financial terms were not disclosed.
"Providing timely care for members in their homes allows for both excellent personalized care as well as the comfort of being in preferred environments. Bringing the right level of whole person care into the home has been demonstrated to improve outcomes, reduce readmissions and improve members' and their family's experience of wellbeing," Prakash Patel, M.D., Anthem Executive Vice President, and President, Anthem Diversified Business Group.
myNEXUS was advised by Latham & Watkins and Waller Lansden Dortch & Davis. Anthem was advised by Faegre Drinker Biddle & Reath and White & Case.
ATL Partners, a private equity firm, led the $300m funding round in Arrive Logistics, a transportation services company. Investors The Baupost Group, British Columbia Investment Management, and Temasek also participated in the round.
"Partnering with investors like ATL with extensive industry experience, who believe in our vision and are confident in our ability to build a leading logistics organization is extremely exciting. Over the last seven years, we have focused on building a top-tier workforce, strong relationships with our partners and best-in-class technology. Today we are focused on innovation that empowers our partners, building digital solutions to provide a seamless experience designed for efficiency and asset-like services," Matt Pyatt, Arrive Logistics CEO and Co-Founder.
Arrive was advised by JP Morgan and Holland & Knight. ATL was advised by Credit Suisse and Gibson Dunn & Crutcher.
Vista Equity Partners led a $300m Series C round in Vena Solutions, a software development firm, with participation from JMI Equity and Centana Growth Partners.
"This significant investment is a clear endorsement of the value we are providing to our customers and Vena's position in our market," Hunter Madeley, Vena CEO.
Vena is advised by McCarthy Tetrault. Vista Equity Partners is advised by Evercore, Kirkland & Ellis and Stikeman Elliott.
AMETEK, a global manufacturer of electronic instruments and electromechanical devices, completed the acquisition of Abaco Systems, a provider of mission-critical embedded computing systems, from Veritas Capital, an investment firm, for $1.4bn.
"We are excited for the opportunity to acquire Abaco Systems. Their market-leading embedded computing solutions are ideally positioned across a number of attractive aerospace and defense platforms, further broadening our differentiated product offering serving these markets," David A. Zapico, AMETEK Chairman and CEO.
Abaco Systems was advised by Skadden Arps Slate Meagher & Flom.
SoftBank Latin America Fund agreed to invest $150m in Afya, the largest medical education group in Brazil.
"We are excited to welcome SoftBank's investment, which will allow us to significantly accelerate our growth and reinforce our digital health strategy. This investment will assist us in our mission to become the reference partner of physicians through their journey, either through rewarding lifelong learning experiences or digital tools that support their daily practices," Virgilio Gibbon, Afya CEO.
Afya is advised by Bank of America.
Blackstone led a $130m funding round in Vectra AI, a provider of threat detection and response.
"Over the past year, we have witnessed a continuous series of the most impactful and widespread cyberattacks in history. To protect their employees and digital assets, our customers require security solutions that are smarter than today's adversaries and provide coverage for cloud, data centers and SaaS applications. As we look to the future, Blackstone's global presence, operational resources, and in-house technology expertise will help us achieve our mission to become one of the dominant cybersecurity companies in the world," Hitesh Sheth, Vectra President and CEO.
Vectra AI was advised by Lumina Communications.
RA Capital Management and Nextech Invest led a $105m Series B round in Boundless Bio, a next-generation precision oncology company, with participation from Fidelity Management & Research Company, Redmile Group, Wellington Management, Surveyor Capital, PFM Health Sciences, Logos Capital, ARCH Venture Partners, City Hill Ventures, Vertex Ventures HC, GT Healthcare Capital Partners, Boxer Capital and Alexandria Venture Investments.
"RA Capital has been following the Boundless Bio story for some time now and believes that the team has developed industry-leading expertise in the biology that underlies high unmet need, gene amplified tumors," Zach Scheiner, RA Capital Management Principal.
Boundless Bio is advised by Finsbury Glover Hering.
B2W, a Brazilian retailer, agreed to acquire Lojas Americanas, a retail chain, for c. $1.2bn. As part of the deal, shareholders in Lojas Americanas will receive 0.18 B2W common share per Lojas share.
Together firms will have c. 1.7k physical stores in 750 cities throughout Brazil. The deal is subject to the approval of shareholders of both companies. The meeting to vote is scheduled for June 10, 2021.
PFM Health Sciences led a $100m Series C round in Caresyntax, with participation from Optum Ventures, Intel Capital, Lauxera Capital Partners, Vesalius Biocapital, Arno Capital, Rezayat Investments, IPF Partners, the Relyens Group, and Surgical.AI.
"Operating rooms need to perform as effectively and efficiently as possible, and this is especially true now to make up for the surgical backlog driven by the pandemic. With better technology to safely automate surgical pathways while generating decision-grade real-world evidence, we will improve health care decision-making, mitigate surgical risks, and advance high-value medical technology," Dennis Kogan, Caresyntax Founder and CEO.
HIG-backed Trox, a provider of technology solutions to the North American education vertical, completed the merger with Tierney, a provider of A/V solutions and services for education. Financial terms were not disclosed.
“We were seeking a partner to help us better address the challenges faced by educators and students and Tierney was the ideal choice. As a joint company with unparalleled scale, Trox + Tierney will be able to offer new skills, greater value, and improved purchasing efficiencies to districts and other organizations, as well as access to a larger network of vendors, products, and geographies," Erez Pikar, Trox CEO.
KKR-backed Internet Brands, an online media and software services company, agreed to acquire PulsePoint, a healthcare marketing technology company. Financial terms were not disclosed.
"PulsePoint's privacy-focused approach to programmatic advertising and real-time analytics adds to our portfolio of brands and services, giving our customers greater flexibility, ease, and ability to reach qualified audiences throughout their journey. The addition of PulsePoint will enable WebMD and Medscape to leverage combined competencies and scale to better serve clients, healthcare professionals and consumers even more comprehensively," Bob Brisco, Internet Brands CEO.
Ragan Communications, a communications firm, completed the acquisition of Communications Week, a preeminent event and thought leadership brand for communicators and marketers worldwide. Financial terms were not disclosed.
"Communications is the heart and soul of an organization and Communications Week embodies that viewpoint. With Communications Week, we plan to help our community gain more meaningful traction within their organizations by giving them unique access to the industry's leading minds and ideas," Diane Schwartz, Ragan Communications CEO.
Aramark, a provider of food, facilities management and uniforms, agreed to acquire Next Level Hospitality, a provider of culinary and environmental services in the senior living sector, specializing in skilled nursing and rehabilitation facilities. Financial terms were not disclosed.
"Next Level has built an impressive, fast-growing business that provides high quality services, led by a strong management team with a proven track record of execution. This complementary acquisition extends our presence in the attractive, emerging senior living sector and reflects our highly selective M&A strategy. We look forward to welcoming the Next Level team to Aramark," John Zillmer, Aramark CEO.
Tris Pharma, a specialty pharmaceutical company, agreed to acquire Park Therapeutics, a development-focused biotechnology company. Financial terms were not disclosed.
"I have been pleasantly surprised to see the depth and breadth of data underscoring the superiority of treatment that this drug promises. We are fortunate to have this opportunity to acquire a late-stage asset and look forward to working with the FDA on its approval journey," Ketan Mehta, Tris Pharma Founder and CEO.
CBIZ, a provider of financial, insurance and advisory services, completed the acquisition of Berntson Porter & Company, an accounting firm in Bellevue, Washington. Financial terms were not disclosed.
"Establishing a presence in the growing Pacific Northwest market has been a long-term goal for CBIZ. In Berntson Porter, we found the ideal partner with a shared commitment to client service, a strong cultural fit and deep expertise within their team of seasoned professionals. Berntson Porter is one of the largest accounting firms in the Puget Sound region. Working together, we will expand the services we offer our clients and continue to pursue growth. We welcome the Berntson Porter team to CBIZ," Jerry Grisko, CBIZ President and CEO.
CBIZ was advised by Koltin Consulting Group.
Verizon to sell parts of Yahoo and AOL. (FS)
Verizon Communications is exploring a sale of its assets, including Yahoo and AOL, as the telecommunications giant looks to exit an expensive bet on digital media, according to
WSJ.
The sales process, which includes private equity firm Apollo Global Management, could lead to a deal worth $4bn to $5bn. Verizon splashed out billions of dollars assembling a portfolio of once-dominant websites, including AOL in 2015 and Yahoo in 2017, paying more than $9bn in total to acquire the pair.
ShiftPixy-backed SPACs aim to raise over $1bn via US listings.
ShiftPixy, a staffing services company, is looking to raise a total of $1.25bn through four blank-check firms, according to regulatory filings,
Reuters reported.
TechStackery, Vital Human Capital and Industrial Human Capital, the special purpose acquisition companies, are looking to raise $250m each through the sale of shares and warrants on the NYSE, while Insurity Capital has filed to raise around $500m.
Alliance Global Partner is the sole book-running manager for all the offerings.
Endeavor raised $511m in IPO, valued at $10.3bn.
Endeavor Group Holdings, the owner of the Ultimate Fighting Championship, sold shares in an IPO at the high end of the target range to raise $511m. Endeavor priced 21.3m shares at $24 per share. The IPO valued Endeavor at $10.31bn.
This is Endeavor’s second attempt at going public after a failed attempt in 2019. Then the California based-company abandoned its $400m offering a day before it was supposed to go public due to weak investor demand, according to
Reuters.
Morgan Stanley, Goldman Sachs, JP Morgan, KKR & Co and Deutsche Bank Securities are the lead underwriters for the company’s offering.
Iconiq Capital looking to raise $3.75bn for sixth growth vehicle. (FS)
Iconiq Capital, an investment firm known for serving as a wealth manager to celebrities and Silicon Valley elites, established a target of $3.75bn for its sixth growth equity fund.
The fund will focus on enterprise software and financial tech companies. The firm's fifth flagship growth fund reportedly closed on $2.6bn,
Pitchbook reported.
Founders Circle Capital scored $355m for Fund III. (FS)
Founders Circle Capital closed its third flagship fund at $355m, bringing its total assets under management to nearly $1bn, according to
Pitchbook.
The California-based VC firm invests in growth-stage companies. It has backed food delivery company DoorDash, cybersecurity startup Auth0 and data analytics specialist Databricks. It also maintains a leadership academy for growth-stage executives that's dubbed "The Circle".
EMEA
Euronext, a European stock exchange, and CDP Equity, a private equity firm, completed the acquisition of London Stock Exchange Group Holdings Italia, the parent company of Borsa Italiana, from London Stock Exchange Group for $5.08bn.
"We continue to make good progress on the highly attractive
Refinitiv transaction and we are pleased to have reached this important milestone. We believe the sale of the Borsa Italiana group will contribute significantly to addressing the EU's competition concerns. The Borsa Italiana group has played an important part in LSEG's history. We are confident that it will continue to develop successfully and contribute to the Italian economy and to European capital markets under Euronext's ownership," David Schwimmer, LSEG CEO.
CDP Equity was advised by Lazard and Finsbury Glover Hering. Euronext was advised by Bank of America, Credit Agricole, HSBC, Intesa SanPaolo, JP Morgan, Lazard, Mediobanca, Rothschild & Co, BonelliErede, Cleary Gottlieb Steen & Hamilton, Clifford Chance, Gianni Origoni Grippo Cappelli & Partners, PricewaterhouseCoopers and Community Group. LSEG was advised by Barclays, RBC Capital Markets, Goldman Sachs, Morgan Stanley, Robey Warshaw, Freshfields Bruckhaus Deringer and Teneo. Financial advisors were advised by Herbert Smith Freehills. Debt financing was provided by Bank of America, Credit Agricole, HSBC and JP Morgan.
Aon, a global professional services firm, is set to win conditional approval for the $30bn deal with Willis Tower Watson, a global multinational risk management, insurance brokerage and advisory company,
Reuters reported.
The concessions package reportedly includes selling a swathe of Willis assets, including its reinsurance arm and its German retirement benefits and consulting business. The concessions also include selling Willis’ insurance broking activities in France, including French unit Gras Savoye, as well as in Germany, Spain and the Netherlands.
Willis is advised by Bank of America, Goldman Sachs, Herbert Smith Freehills, Matheson, Skadden Arps Slate Meagher & Flom, and Weil Gotshal and Manges. Financial advisors are advised by Cleary Gottlieb Steen & Hamilton. Aon is advised by Credit Suisse, Morgan Stanley, Arthur Cox, Freshfields Bruckhaus Deringer, Latham & Watkins, FTI Consulting, and Joele Frank. Financial advisors are advised by Cravath Swaine & Moore.
Eutelsat, a satellite operator, completed the acquisition of a 24% stake in OneWeb, a broadband connectivity provider, for $550m.
“We are delighted with the investment from Eutelsat, which validates our strategy, technology and commercial approach. We now have 80% of the necessary financing for the Gen 1 fleet, of which nearly 30% is already in space. Eutelsat’s global distribution network advances the market entry opportunities for OneWeb and we look forward to working together to capitalise on the growth opportunity and accelerate the pace of execution," Neil Masterson, OneWeb CEO.
OneWeb was advised by UBS.
Peach Video, a global video ad management platform, completed the acquisition of Adtoox, a Stockholm-based ad delivery company. Financial terms were not disclosed.
"We are excited to welcome Adtoox to the Peach team. In the 14 years since founding Adtoox Emil and Oskar have built a strong team and product range, which is a leading platform used by brands, agencies and media owners to deliver ads in the Nordics. We have a shared vision of making it easy for our customers to manage the workflow of advertising content and data between brands, production companies, agencies and media owners," Ben Regensburger, Peach CEO.
Adtoox was advised by Rothschild & Co.
Tinkoff Group, an online provider of financial and lifestyle services, completed the investment in Beskontakt, the developer of Koshelek digital wallet, an aggregator of banking cards and retail loyalty programs. Financial terms were not disclosed.
"We are happy to welcome Koshelek into the Tinkoff family. Koshelek has a spirit and DNA that is very close to our own, and this new partnership aligns perfectly with our goal to provide Russians with the best service in the market," Oliver Hughes, Tinkoff Group CEO.
Bain weighs extending investment in Stada. (FS)
Bain Capital is weighing a deal to extend its investment in Stada Arzneimittel, one of Europe’s top listing candidates, as it seeks more time to expand the German drugmaker,
Bloomberg reported.
The buyout firm is discussing the possibility of selling its 50% stake in Stada to another Bain fund. A deal could value the business at more than $12.1bn. Any decision will likely be made together with Cinven, the investment firm that owns the rest of the business
BT Group to sell a stake or all of its sports-broadcast division.
BT Group is in talks to sell a stake or all BT Sport possibly to a US based media or tech giant. Potential bidders include Walt Disney, Amazon.com and the Len Blavatnik-backed DAZN, a sports streaming platform,
Bloomberg reported.
“Early discussions are being held with a number of select strategic partners, to explore ways to generate investment, strengthen our sports business, and help take it to the next stage in its growth,” BT Group.
BT shares rose as much as 3% in early London trading to their highest price in 14 months. The division “carries zero value” in the sum-of-the-parts equity valuation from analysts.
CNH Industrial to include defence business in spin-off plan.
CNH Industrial is set to include its defence and special vehicle businesses in a plan to spin-off assets to speed up the process after delays due to the Covid-19 crisis.
The group does not provide separate sales figures for its defence and special vehicle businesses, but some analysts estimate their combined sales amount to around 8% of CNH’s total revenues, which stood at $26bn last year,
Reuters reported.
Sanjeev Gupta approached buyers for potential sale of engineering assets.
Sanjeev Gupta’s GFG Alliance approached buyers for the potential sale of some engineering assets, signaling he may not be able to keep his embattled business empire intact,
Bloomberg reported.
It’s not clear exactly which assets he may be willing to sell. His Liberty Engineering Group has assets in several countries including the UK, France and UAE.
Since the industrialist’s main financier Greensill Capital collapsed in March, Gupta has been in a race to find new sources of cash, though has insisted he’ll find new lenders to replace about $5bn he’d borrowed from the supply chain finance firm.
Mishcon De Reya is considering a London IPO.
Mishcon De Reya, known for its legal work advising Princess Diana in her divorce, is considering an IPO that could make it the largest publicly traded law firm in the UK.
The firm had annual sales of $261m and if listed, would be among the 250 largest companies. The firm expects a valuation of more than $832m, according to
Bloomberg.
All employees will receive shares, according to the proposal, with the proceeds going to boost its expansion in Asia after it established an outpost in Singapore last year.
APAC
A KKR-led consortium, consisting of Sequoia Capital India, Norwest Venture Partners and TVS Capital, completed a $234m investment in Five-Star Business Finance, an Indian lender to small businesses.
Five Star plans to use the capital to expand its lending business to provide much-needed financing solutions to more of India's small businesses, which comprise a large and growing segment of the country's economy.
KKR was advised by AZB & Partners and Sard Verbinnen & Co.
IMM Private Equity, a Korean private equity fund manager, completed the acquisition of a 40% stake in SK Lubricants, a company in the lubricant oil business, from SK Innovation, a petroleum refining company, for $987m.
"This proves that SK Lubricants' market dominant business capabilities and the potential for future growth in new businesses are well recognized in the financial market. We will work with IMM, which now has become the second greatest shareholder, to strive for SK Lubricants' second leap and growth," SK Innovation.
SK Innovation is advised by Citigroup.
Warburg Pincus-backed Hygeia, a management consulting services company, agreed to acquire Suzhou Yongding Hospital, a private for-profit Class II general hospital in Suzhou City, Jiangsu Province, from Ascendant Capital Partners for $268m.
Hygeia claims that the acquisition will further enhance its regional advantage in the Yangtze River Delta region and strengthen its brand. The deal will help Yongding to spruce up the development of its multi-disciplinary oncology diagnosis and treatment businesses.
Huawei in talks to acquire Chongqing Jinkang New Energy Automobile.
China's Huawei Technologies is in talks to acquire Chongqing Jinkang New Energy Automobile, a small domestic automaker's electric vehicle unit,
DealStreetAsia reported. The move will allow Huawei to make smart cars bearing its nameplate. It would also provide the beyond just offering auto operating systems and have end-to-end presence in the EV business.
The push into smart cars, if finalised, would signal a major shift in business focus for Huawei after two years of US sanctions that have cut its access to supply chains, forcing to sell a part of its smartphone business.
