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AMERICAS
RenaissanceReRenaissanceRe, a provider of reinsurance, insurance and other related business services, agreed to acquire Validus Re, a reinsurance business, from American International Group, a finance and insurance corporation, for $3bn.
“This acquisition advances our strategy as a leading global property and casualty reinsurer, providing additional scale, and increasing our importance to customers. Furthermore, by gaining access to a large, attractive book of reinsurance business in a favorable market environment, we expect to accelerate our three drivers of profit – underwriting, fee, and investment income. Additionally, we are enhancing our relationship with AIG and demonstrating how our consistent, highly differentiated strategy provides us with unique access to large, one-of-a-kind opportunities that create shareholder value. I have deep respect for Peter and AIG and look forward to extending our partnership," Kevin O’Donnell, RenaissanceRe President and CEO.
Sterling Investment Partners-backed Anser Advisory, a consulting firm, completed the acquisition of Gafcon Digital, a software-agnostic systems integrator for building owners. Financial terms were not disclosed.
“This is an exciting addition to the Anser Advisory organization that adds new expertise in the planning, configuration, and implementation of digital twins. The Gafcon Digital team is a cross-disciplined lineup of specialists who successfully integrate processes, people, and technologies. They focus on creating a digital thread from planning to construction and operations of built assets from an owner’s perspective and meeting the owner’s designated use case, whether creating BIM standards or minimizing the impact of their built assets on the environment. We believe the combination of Anser Advisory and Gafcon Digital will be a game-changing advantage for owners of mission-critical infrastructure and capital programs and projects,” Bryan Carruthers, Anser Advisory CEO.
Gafcon Digital was advised by Environmental Financial Consulting Group. Anser Advisory was advised by CohnReznick, Lewis Ringelman and BDO.
One of Diversified Healthcare Trust's largest shareholders is opposing the real estate investment trust's merger with Office Properties Income Trust, saying the deal undervalues the REIT by 90% and there are better alternatives to an all-share deal, Reuters reported.
Flat Footed, which holds a 7.4% stake, said that the proposed deal represents a "take-under" for DHC shareholders who would be receiving a portfolio of office properties at a time many employees continue to work from home. DHC owns medical office buildings, life science properties and facilities in the rapidly growing senior living market.
Diversified Healthcare Trust is advised by Sullivan & Cromwell (led by Melissa Sawyer). Office Properties Income Trust is advised by JP Morgan, Wachtell Lipton Rosen & Katz (led by Robin Panovka and Mark Stagliano) and Joele Frank (led by Andrew B. Siegel). Debt financing is provided by JP Morgan.
KKR and L Catterton, two investors, led a $135m round in Restaurant365, an all-in-one restaurant enterprise management software provider, with participation from ICONIQ and Bessemer Venture Partners.
"R365 has achieved continuous, accelerated growth, which is a testament to our strong team who is eager to change the restaurant industry for the better. Anytime we receive funding, we recognize it as a privilege. However, the primary driver of this round is uniting with two strategic investors so intimately tied to the restaurant industry. Having recently crossed exciting milestones of $100m in revenue and $1bn in value, we can't wait for what's next," Tony Smith, Restaurant365 CEO and Co-Founder.
Restaurant365 was advised by Next PR.
Global Industrial, a distributor of industrial products and MRO supplies, completed the acquisition of Indoff, a business solutions provider and distributor, for $69m.
"Indoff is a strong and growing company and provides a great strategic fit with Global Industrial's business and multi-channel sales model. Indoff's network of more than 350 sales partners extends our one-to-one sales reach to new customers and markets. In addition, strong core product alignment in material handling, indoor and outdoor furniture, storage and shelving, appliances, and other core categories, along with new service capabilities and project related expertise, further strengthens our overall value proposition. We see a number of opportunities to enhance the value we collectively provide, including opening a new channel to deliver Global's Exclusive Brand offering and national brand assortment, and the broader utilization of B2B e-commerce platforms. We are excited to welcome Indoff's employees and customers to the Global Industrial family and look forward to supporting their continued success," Barry Litwin, Global Industrial CEO.
Global Industrial was advised by The Plunkett Group (led by Mike Smargiassi).
Shutterstock, a premier partner for transformative brands, digital media and marketing companies, agreed to acquire GIPHY, an American online database and search engine for gif, for $53m.
"This is an exciting next step in Shutterstock's journey as an end-to-end creative platform. Shutterstock is in the business of helping people and brands tell their stories. Through the GIPHY acquisition, we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations. GIPHY enables everyday users to express themselves in memorable ways with GIF and sticker content while also enabling brands to be a part of these casual conversations. We plan to leverage Shutterstock's unique capabilities in content and metadata monetization, generative AI, studio production and creative automation to enable the commercialization of our GIF library as we roll this offering out to customers," Paul Hennessy, Shutterstock CEO.
Shutterstock is advised by CapM Advisors.
Pritzker Private Capital-backed NAI Group, a manufacturer and distributer of electronic components, completed the acquisition of KSM Electronics, a global electronics manufacturer. Financial terms were not disclosed.
“NAI is a leader in the manufacturing of advanced high-reliability interconnect solutions, and I am delighted to join NAI’s team to help execute on the company’s vision and strategy. I look forward to building upon the company’s strong foundation. The KSM acquisition is an exciting complement to the existing NAI business. The collective footprint, certifications, engineering expertise, and manufacturing capabilities will allow the combined company to better serve an expanded customer base with new products and services,” Brian Strauss, NAI Group CEO.
NAI Group was advised by H/Advisors Abernathy (led by Dan Scorpio).
Pan-American Life Insurance Company, a provider of life, accident and health insurance, agreed to acquire Encova Life Insurance, an insurance company, from Encova Mutual Insurance Group, a provider of insurer ratings. Financial terms were not disclosed.
“We have had strong success in our property and casualty operations as evidenced by our recent AM Best upgrade, and we want to focus exclusively on leveraging this recent P&C success. We remain committed to our agency partners, and we will help ensure this transition to Pan-American Life is a smooth process for our life agents and policyholders,” TJ Obrokta, Encova Insurance President and CEO.
Pan-American Life Insurance Company is advised by FleishmanHillard (led by Isabel Abislaiman).
Mavis Tire Express, an independent tire retailer and wholesaler, agreed to acquire NTB and Tire Kingdom businesses from TBC, a provider of mobility solutions. Financial terms were not disclosed.
“As we execute our growth plans and strategies, we continuously analyze the assets in our portfolio and periodically fine tune them to drive superior performance in our core focus areas. Divesting our company-owned retail business allows us to focus and strengthen our wholesale business, pursue growing our distribution and ‘supply chain as a service’ solutions, while bolstering our market-leading Midas and Big O Tires franchise businesses. We have never been in a stronger position to offer best-in-class solutions that address a full range of customer priorities while driving innovation and long-term sustainable growth," Sam Kato, TBC President and Chief Executive Officer.
Mavis is advised by Jefferies & Company.
Hensley Beverage, a beverage distributor, completed the acquisition of Premier Distributing, a wholesale distributor of alcohol & non-alcohol beverages. Financial terms were not disclosed.
"This is a new day for Hensley Beverage Company as we expand our geographic footprint outside of Arizona. We have known the Premier organization for many years and are excited that they have entrusted our company to continue their legacy. We look forward to getting to know the Premier team and integrating them into the new combined organization," Andy McCain, Hensley Beverage President and COO.
Premier Distributing was advised by JP Morgan.
Pitango, a venture capital company, led a $108m Series C round in Patient21, a healthtech company, with participation from Bertelsmann Investments, Artian, Target Global, Piton Capital, PICO Venture Partners, Mario Kohle and Maria Raga.
“Dentistry inherently requires in-person consultations for comprehensive diagnosis and treatment. The nature of dentistry involves visually inspecting oral health, utilizing diagnostic tools like x-rays and addressing emergencies promptly. These aspects are best served through onsite consultations to ensure the highest standards of care," Chris Muhr, Patient21 Co-Founder and CEO.
Biomed Industries, a bio-pharmaceutical company, offered to acquire Neoleukin Therapeutics, a biotechnology company, for $68m.
"We believe our offer is very compelling as it provides Neoleukin's shareholders with a highly certain and significant return and the ability to obtain liquidity for their shares, as well as the upside potential of Biomed," Lloyd L. Tran, Biomed Industries Chairman and CEO.
MS Alpa Participações, a family-owned investment firm, offered to invest $67m in Alpargatas, a footwear, apparel, and sports items manufacturer.
Shares in Alpargatas, which were down roughly 40% so far this year, jumped more than 17% after the announcement.
Core & Main, a company in advancing reliable infrastructure with local service, agreed to acquire Foster Supply, a full-service provider of precast concrete structures, pipe, drainage materials and related geosynthetics products. Financial terms were not disclosed.
“Foster Supply is a long-established partner of choice for contractors and municipalities seeking innovative solutions to unique work site challenges. Bringing the Foster Supply team into Core & Main will allow us to combine our collective expertise and differentiated product and service offerings to better meet the needs of our waterworks and geosynthetics customers," Steve LeClair, Core & Main CEO.
FFL Partners completed the exit in ProService. (FS)
FFL Partners, a private equity firm focused on growth investments in Healthcare and Tech-Enabled Services businesses, announced it has exited its investment in ProService, a leading provider of bundled HR solutions. Financial terms were not disclosed.
"Our partnership with ProService delivered fantastic value to clients, employees, and all ProService stakeholders. We are pleased to have been able to help ProService grow their business in Hawaii, plus export their unique PEO model to other specialized markets around the country. "ProService is well positioned to pursue their next chapter of growth as the demand for outsourced HR services continues," Cas Schneller, FFL Partners Managing Partner.
Chilean football league seeks to sell stake in media rights.
Chile's professional football league is inviting investors to bid for a stake in its media rights, a move that mirrors steps taken by Europe's biggest leagues, Bloomberg reported.
Asociación Nacional de Fútbol Profesional plans to sell 20% of a company controlling the commercial rights of the country's top two football divisions.
Permian set for M&A frenzy as cash-rich producers seek reserve boost.
Dealmaking is picking up in the Permian basin, the largest US oil patch, as drillers look to quickly rebuild their depleting assets, Reuters reported.
Permian is a prime target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.
YPF inks deal with CGC to drill well in shale deposit.
Argentina's state oil company YPF signed an agreement with Compania General de Combustibles to drill the first exploratory well in the Palermo Aike shale formation, the second largest such deposit in the country, Reuters reported.
YPF is set to drill the Fraccion II - El Cerrito well in a concession belonging to CGC after both firms signed a memorandum of understanding.
GTCR amasses $11.5bn in record fundraise. (FS)
Private equity firm GTCR has raised its largest fund ever, collecting $11.5bn from investors to acquire companies that span the technology, healthcare, financial services and consumer sectors, Reuters reported.
The new fund, GTCR Fund XIV, initially aimed to raise $9.25bn. It amassed $11bn from institutional investors, including from sovereign wealth funds, public and private pension funds, foundations and endowments. An additional $500m was committed by GTCR employees.
Spicewood Mineral first close second fund in $120m. (FS)
Spicewood Mineral Partners, a Dallas based mineral and energy investment management firm, announced the initial closing of Spicewood Mineral Partners II, with approximately $120m in capital commitments.
"We are grateful for the continued support and confidence that our investment partners have placed in our firm. With this fund, we will continue our pursuit and growth trajectory to build a pre-eminent mineral portfolio in the most prolific basins in the country," Kyle Bebee, Spicewood Managing Partner and Co-Founder.
EMEA
Baird Capital, a private equity fund, completed the investment in Freemarket, a fintech platform for regulated B2B cross-border payments and currency exchange. Financial terms were not disclosed.
"Alex and team have built a fantastic business. We are excited to support Freemarket's ambitious growth plans. Freemarket is a high growth business with a differentiated technology platform operating in a large and resilient global market. The business has many potential growth avenues, and we are delighted to be selected as Freemarket's investment partner." Michael Holgate, Baird Capital Partner.
Freemarket was advised by Osborne Clarke. Baird Capital was advised by Oliver Wyman, Grant Thornton, finnCap and Squire Patton Boggs.
QIA, a Qatar's sovereign wealth fund, led a $250m Series D round in Builder.ai, a software company, with participation from Iconiq Capital, Jungle Ventures and Insight Partners.
“Builder.ai was founded on the promise that everyone should be empowered to unlock their human potential. Today this means being able to build software to be able to do more with less. We are entering an incredible time in history where the very notion of software is changing; from something that had a shelf life of years to what will eventually have a shelf life of a conversation and the volume of what is being created is only going to grow exponentially” Sachin Dev Duggal, Builder.ai Chief Wizard and Founder.
Builder.ai was advised by Goodwin Procter.
Billionaire Drahi tightens grip on BT, building stake to 25%. (FS)
Billionaire Patrick Drahi increased his stake in BT Group to 24.5%, giving him double the holding of the next-biggest investor and increasing his control over the UK telecommunications giant, Bloomberg reported.
Altice UK doesn’t intend to make an offer for all of BT, Drahi’s investment vehicle said in a statement on Tuesday, which begins a six-month commitment under UK takeover rules. Drahi added 650m shares, which is worth about £962m ($1.2bn) at the average share price over the last three months and ups his holding from 18%.
Hungary seeks help from Qatar in buying Budapest Airport.
Hungary has continued to search for financing or partners in its quest to regain ownership of the Budapest hub, with a senior government official saying last month that the government was targeting a deal by year-end.
QIA set up a $275m market-making program. (FS)
The Qatar Investment Authority is setting up a $275m market-making program as the country seeks to draw more foreign investor interest and deepen its capital markets, Bloomberg reported.
The initiative will run over the next five years and offer an economic incentive by way of a rebate to lower trading costs for established market makers. The permanent program will help enhance liquidity in the market, improve price discovery, and diversify the capital markets in Qatar.
APAC
GQG raises Adani stake to $3.5bn, plans to buy more. (FS)
Veteran investor Rajiv Jain's GQG Partners has raised its stake in billionaire Gautam Adani's conglomerate by about 10% and will take part in the conglomerate's future fund raising, doubling down on what he calls "the best infrastructure assets available in India", Bloomberg reported.
"Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family. We would certainly want to be partners in any of Adani Group's new offerings" Rajiv Jain, GQG CIO.
HYBE inks distribution deal with China's Tencent Music.
South Korean entertainment company HYBE, home to K-pop superstars BTS, said it has signed a music distribution deal with China's Tencent Music, DealStreetAsia reported.
The deal would see music from HYBE artists become available on streaming platforms owned by Tencent Music Entertainment Group, including QQ Music, KuGou Music, KuWo Music, and WeSing.
Bain targets November for Virgin Australia's $665m IPO. (FS)
Bain Capital is targeting November to relist Virgin Australia Airlines through an initial public offering that could raise about $665m, the country's largest in two years, Bloomberg reported.
The private equity owner plans to sell down about 40% of its stake in the carrier, which it rescued in a $2.5bn deal in 2020. A listing could give Virgin Australia a valuation of nearly $1.7bn. Its rival Qantas Airways has a market value of around $7.7bn.
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