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AMERICAS
Rithm Capital and Sculptor Capital Management amended the terms of their previously announced definitive merger agreement. Sculptor stockholders will receive $12 per share, representing an increase of 7.62% over Rithm’s previously agreed price of $11.15 per Class A share, and an aggregate transaction value of approximately $676m.
"Throughout this process, the Special Committee has been solely focused on consummating a transaction that maximizes value and certainty of closing for Sculptor stockholders. We are pleased to have been able to deliver a price increase and believe this transaction is in the best interest of Sculptor’s stockholders,” Marcy Engel, Chairperson of Sculptor Board of Directors.
Sixth Street-led consortium, including KKR, Bayview Asset Management, CardWorks, and PIMCO, agreed to acquire GreenSky, a financial technology company, from Goldman Sachs, a global investment banking, securities, and investment management firm. Financial terms were not disclosed.
“This transaction demonstrates our continued progress in narrowing the focus of our consumer business. While GreenSky is an attractive business, we are focused on advancing the strategy we laid out for our two core franchises. In Global Banking & Markets, we’ve improved our wallet share and are demonstrating strong growth in financing activities; and across our Asset & Wealth Management platform we are making very strong progress towards both our fundraising and management fee targets," David Solomon, Goldman Sachs Chairman and CEO.
Sixth Street is advised by Bank of America, Mizuho Securities, Wells Fargo Securities, Alston & Bird and Simpson Thacher & Bartlett. Goldman Sachs is advised by Goldman Sachs and Wachtell Lipton Rosen & Katz (led by Edward D. Herlihy, Jacob A. Kling and Eric Feinstein).
Ares Management, an alternative investment manager, led a $100m investment in Vinci Partners, an alternative investment platform in Brazil.
“We are pleased to announce this strategic partnership with a leading multi-asset class investment manager in Latin America. We have known the Vinci team for over a decade and share similar business building and investment DNA. Latin America is in the very early innings of the adoption of private market strategies, and we believe there are market forces that will accelerate the growth of these asset classes over the coming years. We are very impressed with the business that the Vinci team have built over the last decade, and we believe that through this partnership we can accelerate value for our respective firms, investors and other key stakeholders," Michael Arougheti, Ares CEO and President.
Vinci Partners was advised by Jefferies & Company, Davis Polk & Wardwell, Danthi Comunicações (led by Carla Azevedo) and Joele Frank (led by Kate Thompson). Ares Management was advised by Wells Fargo Securities and Kirkland & Ellis.
Capital Square Partners, a private equity investment firm, agreed to acquire Startek, a contact center company, for $217m.
"For more than 35 years, Startek has delivered customer experience excellence for the world's leading brands. Spread across 12 countries, our 38k associates create memorable, personalized experiences in both voice and non-voice channels. Our clients span from fortune 500s to fast-growing startups in a diverse range of industries including cable, media and telecom; travel and hospitality; retail and e-commerce and banking and financial services," Startek.
Startek is advised by Houlihan Lokey, Gibson Dunn & Crutcher, Gateway Group (led by Cody Cree) and Joele Frank (led by Matthew Sherman). Capital Square is advised by Latham & Watkins.
Clearlake Capital-backed Discovery Education, an education technology company, completed the acquisition of DreamBox Learning, a K-12 education technology provider. Financial terms were not disclosed.
"Discovery Education's acquisition of DreamBox Learning unites two cultures of passion and purpose. Together, we are positioned to provide school systems worldwide a wider range of research-based products that provide students, real, measurable impact on learning from one consolidated platform at the time school systems are seeking more ROI than ever from their edtech spend. We believe this new combination of people and solutions will allow Discovery Education to expand its impact on education and continue its growth trajectory," Jeremy Cowdrey, Discovery Education CEO.
OptimizeRx, a provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals and patients, agreed to acquire Medicx Health, a healthcare consumer-focused omnichannel marketing and analytics company, for $95m.
“Our acquisition of Medicx is expected to be a major business accelerator for us as it encompasses all three of our growth drivers: expanding our audience, introducing new solutions, significantly opening client penetration and growth opportunities,” Will Febbo, OptimizeRx Chief Executive Officer.
OptimizeRx is advised by RBC Capital Markets, Blank Rome, and LifeSci Public Relations (led by Ashley Robinson). Debt financing is provided by Blue Torch Capital. Medicx Health is advised by Canaccord Genuity and Weiss Brown.
Northleaf Capital Partners, a global private markets investment firm, agreed to acquire a majority stake in EVPassport, an electric vehicle charging platform company, for $200m.
“We’re excited to partner with EVPassport and apply our market knowledge and industry expertise to build out this critical infrastructure,” Olivier Laganiere, Northleaf Managing Director.
EVPassport is advised by Rasky Partners (led by Matthew McNally). Northleaf Capital Partners is advised by Stanton (led by Sneha Satish).
Getinge, a medical technology company, completed the acquisition of Healthmark Industries, a provider of innovative instrument care and infection control consumables, for $320m.
"We are excited and honored to team up with Healthmark. Together we will offer a broad range of solutions to sterile processing departments in hospitals. Healthmark's position in the field of consumables for cleaning verification and packaging will be an ideal complement to our consumables, reprocessing capital equipment, and software solutions. The acquisition strengthens Getinge's position in the infection prevention sector in the US, and our global customer reach in Europe and Asia will also accelerate Healthmark's international development," Stéphane Le Roy, Getinge President.
Getinge was advised by Barclays.
Trumark, a homebuilder with divisions in California and Colorado, completed the acquisition of Wathen Castanos Homes, a real estate company providing a home for sell services. Financial terms were not disclosed.
"Our acquisition of Wathen Castanos Homes is a unique opportunity to fulfill several of our strategic goals. First and foremost, our companies share a similar culture as well as a commitment to building quality homes and providing an unparalleled homebuyer experience," Gregg Nelson, Trumark Co-Founder and Co-CEO.
Trumark was advised by JTW Advisors
Atlassian, a provider of team collaboration and productivity software, agreed to acquire Loom, a video messaging platform, for $975m.
“Async video is the next evolution of team collaboration, and teaming up with Loom helps distributed teams communicate in deeply human ways,” Mike Cannon-Brookes, Atlassian Co-Founder and Co-CEO.
Stabilus, a supplier of gas springs, damping solutions, and electromechanical drives for motion control, agreed to acquire DESTACO, a company that provides a broad range of engineered products, from Dover, a global manufacturer and solutions provider, for $680m.
"This transaction will allow Dover to concentrate our efforts and capital deployment on growing our core platforms, while DESTACO will benefit from Stabilus' focus on industrial automation and strong go-to-market channel in industrial and automotive applications," Richard J. Tobin, Dover President and Chief Executive Officer.
Access Healthcare, a healthcare technology company, completed the acquisition of Envera Health, a patient engagement services company. Financial terms were not disclosed.
"Welcoming Envera Health is a pivotal move in our ongoing mission to deliver comprehensive, patient-centric solutions. Envera's proficiency in patient engagement coupled with our innovative revenue cycle services will elevate the value proposition for our healthcare provider clients," Anurag Jain, Access Healthcare Chairman and CEO.
Microsoft says US has asked for $28.9bn in audit dispute.
Microsoft said that the US Internal Revenue Service in September notified the company that it is seeking an additional tax payment of $28.9bn, plus penalties and interest for tax years from 2004 to 2013, Reuters reported.
Microsoft said the IRS notices relate to an ongoing dispute between the company and the US tax authority, which is auditing how Microsoft allocated its profit among different countries and jurisdictions.
Live Ventures makes offer to buy LL Flooring. (FS)
US investment firm Live Ventures has offered to buy LL Flooring, formerly known as Lumber Liquidators, for roughly $180m in cash, Reuters reported.
LL Flooring said in August that it was exploring strategic alternatives, including a possible sale. The company, headquartered in Richmond, Virginia and one of the country's leading retailers of hard-wood surface flooring, has seen its stock price tumble more than 78% in the last five years. Live Ventures' offer of $5.85 per share represents a roughly 100% premium to LL Flooring's closing price on October 11.
Illumina ordered by EU antitrust regulators to sell Grail.
US genetic testing company Illumina will divest cancer test maker Grail as expeditiously as possible if the life sciences company loses either of the final appeals in US or European courts. If Illumina wins both the cases, it will reassess Grail's assets, which might result in integrating or divesting part or the entire unit, Reuters reported.
Antitrust watchdogs on both sides of the Atlantic have sharpened their scrutiny of pharma and biotech deals in recent years on fears that some of these may stifle innovation and reduce competition in the sector.
Amazon's strategy could unlock $100bn in revenue.
Amazon's next big thing might be lurking in the expensive supply chain apparatus that’s helped transform its e-commerce business into a juggernaut, Bloomberg reported.
The Seattle-based company’s expansion into so-called logistics services — shipping and distribution — could eventually be worth more than $100bn in revenue, according to Truist Securities analyst Youssef Squali.
Surprise UAW strike at Ford raises stakes for Detroit Three.
The United Auto Workers snap strike at Ford's largest and most profitable factory is raising pressure on Stellantis NV and General Motors as negotiators will resume contract talks, Reuters reported.
UAW negotiators are turning their attention to talks with Chrysler-parent Stellantis, said Shawn Fain, Union President.
Cerevel Therapeutics announces pricing of $450m public offering of common stock.
Cerevel Therapeutics, a company dedicated to unraveling the mysteries of the brain to treat neuroscience diseases, announced today the pricing of its previously announced underwritten public offering of 19.7m shares of its common stock at a public offering price of $22.81 per share, or approximately $450m of shares of its common stock.
Cerevel granted the underwriters a 30-day option to purchase up to an additional 2.9m shares of its common stock at the public offering price, less underwriting discounts and commissions.
Pantheon looks to register new credit secondaries fund. (FS)
Pantheon, a global private markets investor, has filed to register an evergreen private credit fund anchored in private credit secondaries, DealStreetAsia reported.
The AMG Pantheon Credit Solutions Fund will become the latest addition to the firm's growing, global evergreen platform and will be the first of its type to deliver a private credit secondaries-focused investment strategy to the US private wealth market.
Pioneer’s Sheffield caps career with $151m Exxon payday. (People)
Pioneer Natural Resources CEO Scott Sheffield is capping a storied career — defined by a decades-long bet on shale that bucked the oil industry’s conventional wisdom — with a massive payout, Bloomberg reported.
The 71-year-old Sheffield, who has led Pioneer for more than 20 years, is in line to receive at least $151m in mostly stock — and potentially more — from the sale to Exxon Mobil. That’s a payout that might have stunned Sheffield when he started in the industry as a young roughneck drilling vertical wells in the Permian Basin in 1979.
Terran Orbital investors call for review, replacement of CEO. (FS, People)
A group of investors in Terran Orbital, which has lost more than 90% of its market value since going public in a blank-check deal last year, is calling on the aerospace and defense company to launch a strategic review and oust its CEO, Bloomberg reported.
The group includes Sophis Investments, Roark’s Drift and three co-founders of the Terran’s main operating subsidiary, Tyvak Nano-Satellite Systems.
Struggling Olaplex names Supergoop head to replace JuE Wong as CEO. (People)
Olaplex announced new leadership as the hair-care company struggles to regain its footing amid a lawsuit and sinking share price, Bloomberg reported.
Amanda Baldwin, CEO of skin-care brand Supergoop, will succeed JuE Wong in early 2024. Olaplex Executive Chairman John Bilbrey will serve as interim CEO during the transition. Supergoop specializes in sunscreen and other products with sun protection.
EMEA
Apollo Global Management, an investment firm, agreed to acquire The Restaurant Group, a British chain of restaurants and public houses, for $862m.
"TRG operates a diverse portfolio of some of the UK's leading hospitality brands. As a result of ongoing positive management actions and the margin accretion plan we announced in March this year, the group has recovered well from the challenges of the pandemic and the cost of living crisis. This is evidenced by the continued strength of our trading performance versus the broader hospitality sector and the share price increasing 55% this year. In addition, the TRG Board and management of TRG have reviewed in detail the strategic options available to the group, resulting in the announcement of the proposed sale of the Leisure business. The TRG Board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment. As such, the TRG Directors intend to unanimously recommend the offer to TRG Shareholders," Ken Hanna, TRG Chair.
Shell, an oil and gas company, agreed to acquire MIDEL, a brand of ester-based dielectric transformer fluids, and MIVOLT, a provider of dielectric fluid for direct immersion cooling of battery systems and power electronics, from M&I Materials, a business with a rich heritage of commercialising materials for demanding applications. Financial terms were not disclosed.
“Ester fluid manufacturing has been a huge part of M&I Materials Ltd for over 45 years and a source of pride for everyone involved in developing this technology which customers in many markets worldwide have come to specify and trust. We want to see the growth potential for both MIDEL and MIVOLT realised and we believe Shell is uniquely positioned to take them forward and on to their next stage of development," Colin Salt, M&I Materials Chairman.
M&I Materials is advised by Rothschild & Co.
Triton, a European mid-market sector-specialist investor, agreed to acquire Trench, a renowned and prominent player in the field of power engineering and the design of specialized high-voltage electrical products, from Siemens Energy, an energy company. Financial terms were not disclosed.
“We are impressed by Trench’s differentiated competitive positioning in the T&D component market, underscored by its deep technical know-how, a best-in-class product portfolio, its leading market positioning across all three segments and the long-standing and diversified relationship with blue chip customers. We look forward to supporting the management and employees on their journey to grow the business and to expand its market leadership in close collaboration with Siemens Energy through a long-term supply agreement," Steffen Reimund, Triton Investment Advisory Professional.
Ericsson books $3bn impairment, says third-quarter core profit fell 39%.
Ericsson announced a SEK32bn ($2.9bn) impairment charge related to its acquisition last year of Vonage and said core profits fell in the third quarter as demand tumbled in North America, Reuters reported.
HSBC makes global push to broker deals in private credit market.
HSBC is assembling a team of bankers to connect its corporate clients with the rapidly expanding world of private credit.
The British lender will tap into the many relationships it has with mid-sized companies around the world to link them up with private debt funds, arranging and sometimes taking part in the financing deals that ensue, said Vinay Raj, a managing director at HSBC who is helping spearhead the effort, Bloomberg reported.
OQ Gas Networks draws $10bn in orders for record Oman IPO.
Omani state energy firm OQ raised $749m in the initial public offering of its gas pipelines business after pricing it at the top of the range, making it the country’s biggest listing on record.
OQ sold about 2.1bn shares, or a 49% stake, in OQ Gas Networks at $362 per share. The listing drew about $10.3bn in demand, showing investor appetite for share sales in the Gulf remains strong even as war flared up between Israel and Hamas, Bloomberg reported.
Birkenstock stumbles in underwhelming US market debut.
Birkenstock's stock ended more than 12% below its initial public offering price in an underwhelming Wall Street debut that signaled investors remain cautious about new listings, Reuters reported.
Shares of the 250-year-old German sandal maker started trading at $41 after the IPO had priced at $46. That offering raised $1.48bn, priced at the midpoint of the indicated range of $44 and $49. The stock closed at $40.20, down 12.61%.
Birkenstock was advised by Evercore.
Ex-Barclays CEO Staley ‘recklessly’ misled watchdog. (People)
Former Barclays boss Jes Staley has been fined £2m ($2m) and banned from the UK financial services industry after “recklessly” misleading regulators and the bank about his relationship with the late financier and sex offender Jeffrey Epstein, Bloomberg reported.
The Financial Conduct Authority said Staley privately described Epstein as one of his “deepest” and “most cherished” friends. Yet he allowed Barclays to send a letter to the watchdog that distanced him from the financier, incorrectly stating that he’d ceased contact before joining the bank in 2015.
APAC
MGen Renewable Energy, a power plant company, agreed to invest $280m in SPNEC, a renewable energy company.
“The Department of Energy’s vision is to have about 35% of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal. We are humbled and grateful for this opportunity to build this renewable energy platform with Meralco. We look forward to bring together Meralco’s capabilities and our solar developments for the benefit of all stakeholders,” Leandro Leviste, SPNEC Chief Executive.
SPNEC is advised by King & Spalding and Picazo Buyco Tan Fider & Santos. MGen Renewable Energy is advised by Ubs, Gulapa Law, and Sycip Salazar Hernandez & Gatmaitan.
Sri Lanka, China agree to restructure $4.2bn of debt.
Sri Lanka and China agreed to restructure $4.2bn of debt, putting the South Asian nation closer to securing more funds from the International Monetary Fund, Bloomberg reported.
The agreement reached “on the key principles and indicative terms of a debt treatment,” constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and economic recovery.
India cenbank likely to complete vetting bidders for IDBI Bank by Oct-end.
India's central bank is expected to accelerate a key process of vetting IDBI Bank's potential buyers and complete it by October end, helping speed up the sale of a majority stake in the lender, Reuters reported.
The federal government, which owns 45.48% of IDBI Bank, and the state-owned Life Insurance of India, which holds 49.24%, together plan to sell 60.7% of the lender.
Goldman Sachs sues Malaysia over 1MDB settlement.
Goldman Sachs sued Malaysia in a UK court, as tensions escalate over a settlement agreement on the bank's role in the multi-billion dollar 1MDB corruption scandal, Reuters reported.
"Today, we filed for arbitration against the Government of Malaysia for violating its obligations to appropriately credit assets against the guarantee provided by Goldman Sachs in our settlement agreement and to recover other assets," Goldman Sachs.
India's Wadia Group stays away from Go First insolvency process.
Go First's former owner, the Wadia Group, has not shown an intent to bid for the grounded Indian airline and has stayed away from the insolvency process so far amid an ongoing legal tussle, Reuters reported.
Cash-strapped Go First filed for bankruptcy in May, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.
Aster’s India unit draws suitors valuing business at $1.5bn. (FS)
Private equity firm BPEA EQT, Ontario Teachers’ Pension Plan Board, and other firms are considering a deal to acquire Aster DM Healthcare’s assets, including its India business, Bloomberg reported.
Others interested in potential bids for Aster’s India business include Blackstone and KKR. The deal values Aster’s India business at $1.5bn.
AirAsia operator seeks $200m from private credit for loan.
Budget carrier AirAsia, a part of the Capital A group, is seeking a $400m loan, half of it from private credit funds, to refinance debt, Bloomberg reported.
The loan will be in the form of a revenue bond, with investors to be paid out of ticket sales from ten AirAsia flight routes. A representative of the company declined to comment.
Top-performing India stock fund says small-cap IPOs offer value. (FS)
A Franklin Templeton India fund is turning to initial public offerings to help keep it in the top ranks of the nation’s mutual funds as rich valuations have made it hard to pick winners among small-cap stocks, Bloomberg reported.
The $1.2bn Franklin India Smaller Companies Fund is up 34% this year, beating 98% of its peers. The fund’s IPO picks — Concord Biotech, TVS Supply Chain Solutions and SBFC Finance — have rallied between 15% to 50% since their trading debuts in August.
Mubadala Capital closes second Brazilian fund at $710m. (FS)
Mubadala Capital, an asset management subsidiary of Mubadala Investment Company headquartered in Abu Dhabi, has closed its second Brazilian fund, BSOF II, at $710m.
The fund’s limited partners include public pension funds, family offices, corporates, private equity funds and asset managers from North America, Europe, the Middle East and Asia.
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