AMERICAS
A subsidiary of UGI, UGI Energy Services, acquired the equity interests of Columbia Midstream Group from a subsidiary of TC Energy for approximately $1.3bn, subject to customary adjustments at closing. CMG holds five gathering systems, with a capacity of roughly 2.6mMMBtu/day and 240 miles of pipeline, located in the southwestern core of the Appalachian Basin.
The acquisition significantly expands UGI’s midstream portfolio and provides an opportunity to invest an additional $300-500m over the next five years at attractive returns. The company expects the transaction to be EPS neutral in the fiscal year 2020, and accretive beginning in the fiscal year 2021 excluding transaction and integration costs.
“Columbia Midstream Group is a well-run organization with a solid portfolio of strategic assets that enhance and build upon our existing business. We believe this acquisition is a great fit strategically, operationally and culturally, and are excited to welcome the CMG employees to the UGI family of companies.” Robert F. Beard, Executive Vice President, Natural Gas of UGI.
Credit Suisse and Latham & Watkins are advising UGI. Credit Suisse is providing debt financing. Wells Fargo Securities and Bracewell are advising TC Energy.
Atico Mining, a leading mining company focused on developing and operating copper-gold projects in Latin America, acquires Toachi Mining, a leading mining firm in Ecuador.
Under the terms of the Agreement, all of the Toachi issued and outstanding common shares will be exchanged on the basis of 0.24897 Atico common shares for each Toachi common share. The Exchange Ratio implies consideration of approximately $0.056 per Toachi common share, based on the closing price of Atico common shares on the TSX Venture Exchange on July 5, 2019. This represents a 47% premium to Toachi’s closing price and a 49% premium to the 20-day volume-weighted average price as at July 5, 2019 on the TSX-V.
“The robust synergies between both Companies makes this business combination a logical step towards building a peer leading and profitable copper-gold producer in Latin America. The Board, Management and certain major shareholders of Toachi fully support the planned combination between our two Companies. Additionally, the Transaction offers an optimized combination of experienced mining professionals who share common values of protecting the environment and responsibly supporting the development of communities we operate in”. Alain Bureau, Toachi CEO.
Maxit Capital and Seguin Racine are advising Toachi. Laurentian Bank Securities and Blake Cassels & Graydon are advising Atico.
Vectrus, a leading global government services company, acquired Advantor Systems, a leading provider of integrated electronic security systems to the federal government, from Infrasafe and McCarthy Capital, for $44m.
"Advantor strengthens Vectrus as an innovator in the emerging converged infrastructure market and supports our strategy to advance Vectrus into a higher value, technology-enabled and differentiated platform," said Chuck Prow, president and chief executive officer of Vectrus.
Raymond James, RSM and Latham & Watkins advised the sellers. Pillsbury Winthrop Shaw Pittman advised Vectrus.
FLEETCOR Technologies, a leading global business payments company, acquires SOLE Financial, a payroll card provider enabling instant, affordable wage access for workers. Financial terms were not disclosed.
The acquisition will combine SOLE with FLEETCOR’s existing digital paycard business and increase the company’s overall addressable market.
“Joining FLEETCOR presents an exciting opportunity for SOLE Financial clients and partners to benefit from their resources and industry leadership position,” commented Rick Holt, CEO of SOLE Financial. “I’m confident FLEETCOR’s long-term vision will provide tremendous value to organizations and their employees.”
Nomura and Ater Wynne are advising SOLE. Holland & Knight is advising FLEETCOR.
Investment companies ATL Partners and BCI acquired Valence Surface Technologies, the largest independent aerospace surface finishing platform in North America. Existing management also invested in the company. Financial terms were not disclosed.
"Over the last several years we have built Valence into a market leading platform and we look forward to expanding the Company's capabilities and geographic footprint as we seek to offer additional, differentiated services to our growing customer base," said Tracy Glende, Chief Executive Officer of Valence. "We are very excited to partner with ATL given their sector focus and in-depth knowledge of commercial aerospace and the surface finishing market."
Lazard advised Valence. Owl Rock and Antares provided debt financing.
Vista Outdoor, a global designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets, sold its Savage Arms and Stevens firearms brands to Alliant Techsystems, an American aerospace manufacturer and defense industry company, for $170m.
"Divesting our Savage brand was a key aspect of our transformation plan," said Chris Metz, Chief Executive Officer of Vista Outdoor. "While it was a difficult decision to sell such an iconic brand, I remain confident that this was the correct choice to help Vista Outdoor grow in those categories where we can have leadership positions."
Reed Smith and Robert W Baird advised Vista Outdoor.
Bregal Sagemount, a New York-based growth capital fund, invests a significant amount in Buyers Edge Platform, the leading provider of procurement software, group purchasing, and data analytics to the foodservice industry. Financial terms were not disclosed.
The transaction will enable the company to pursue accretive mergers and acquisitions, invest in strategic growth initiatives, and make further platform innovations.
"This new partnership with Bregal Sagemount affords us the capital and guidance to bring new partners and companies onto the Buyers Edge Platform and continue our exponential growth trajectory.” John Davie, Buyers Edge Platform CEO.
Goldman Sachs and Ab Private Credit Investors are advising Bregal Sagemount.
Alliant Insurance Services, a leading insurance brokerage firm, acquires Degginger McIntosh & Associates, an insurance brokerage firm in Washington state with a legacy of 56 years. Financial terms were not disclosed.
The agreement with Degginger McIntosh is part of an active regional acquisition campaign. Since 2014, Alliant has completed a large number of strategic acquisitions in the greater Northwest in both property and casualty and employee benefits.
“Service has been the Degginger McIntosh promise since our founding, as we endeavor to provide our clients with solutions that are customized to their needs and focused on controlling insurance costs,” said the firm’s president, Keith Degginger. “Alliant, with its national platform, deep pool of resources, and long history of entrepreneurial thinking, will further this promise and enable us to offer our clients an even more robust service profile.”
iMedX, an international leader in revenue cycle management, medical documentation, and health information solutions, has completed the acquisition of Prevalent and Axcension, two providers of cutting-edge healthcare analytics and revenue cycle management consulting services. Financial terms were not disclosed.
"A comprehensive analytics platform will be a vital part of every provider's RCM workflow in the coming years, which is why these acquisitions are so important to us. Having thorough insight into billing operations will be a necessity as we continue to maximize reimbursement for our clients in an ever-changing regulatory environment." Christopher Foley, Chairman, and CEO of iMedX.
Lactalis Group has acquired Ehrmann Commonwealth Dairy, the US yogurt business of Germany-based dairy company. Financial terms were not disclosed.
Ehrmann Commonwealth Dairy has two state-of-the-art manufacturing facilities that employ 250 people in Brattleboro, Vermont and Casa Grande, Arizona and manufactures and distributes yogurt and other dairy products under the Green Mountain Creamery and Liebe brands. It also features a robust private label business.
"The Ehrmann acquisition is a terrific complement to our Stonyfield® and siggi's® brands in the US. Ehrmann's Vermont and Arizona plants are the ideal platforms to develop our star brands, strengthen national distribution, and secure topflight quality and service for our private label customers." Thierry Clement, Lactalis North America CEO.
BioLife Solutions, the leading developer, manufacturer, and marketer of proprietary biopreservation media and automated cell thawing media devices for cell and gene therapies, acquires SAVSU Technologies, the first commercial company to develop and market precision cold chain management tools specifically designed to overcome the challenges unique to commercializing cell and gene therapies. Financial terms were not disclosed.
The acquisition of SAVSU is expected to further strengthen BioLife's position as a leading supplier of disruptive, enabling solutions used in the collection, manufacture, storage and distribution of cell and gene therapies. The transaction includes all SAVSU intellectual property comprised of 15 pending and issued US patents related to cold chain technologies. Twenty-three SAVSU employees are joining the BioLife team and will remain in the design, engineering and fabrication facility in Albuquerque, New Mexico. SAVSU also has a contract sales organization covering Europe.
"We see the integration into BioLife as a natural progression in the development and growth of SAVSU. We have worked closely with BioLife since 2014 and they have been a great supporter of our mission." Dana Barnard, SAVSU CEO.
Bruker Corporation, an American manufacturer of scientific instruments, agreed to acquire PMOD Technologies, a highly respected provider of research-use-only software for preclinical and molecular imaging. Financial terms of the acquisition were not disclosed.
Dr. Wulf I. Jung, President of Bruker's Preclinical Imaging Division, stated: "With the PMOD acquisition, Bruker is broadening its support for translational research with outstanding imaging tools, from highest-performance preclinical MRI, PET/SPECT and microCT systems to state-of-the-art software. Preclinical PET/MR is a fast-growing market, and the expertise of the PMOD team will further strengthen our quantitative molecular imaging solutions."
ITT, a diversified leading manufacturer of highly engineered critical component, acquired Matrix Composites, a specialty aerospace component manufacturer located on the Florida Space Coast, for $29m.
“We are excited to welcome this fast-growing composites technology company to ITT Connect and Control Technologies,” said ITT Connect and Control Technologies President Farrokh Batliwala. “Matrix Composites significantly enhances our composite portfolio and expands our aircraft engine content. We look forward to leveraging our combined strengths to build on Matrix Composites’ entrepreneurial spirit and growth-oriented track record.”
Canadian pot firm Sundial Growers considers an IPO.
Sundial Growers is seeking to become the next Canadian cannabis company to sell shares in the US, following the path forged last year by Tilray. The firm filed documents with regulators to list on the Nasdaq Global Select Market under ticker symbol SNDL, it said in a statement.
Cowen and Co, Barclays and Bank of Montreal’s BMO Capital Markets are leading the initial public offering.
Encana to sell its Arkoma Basin natural gas assets.
Encana, a Canadian company engaged in hydrocarbon exploration, signed a deal to sell its Arkoma Basin natural gas assets to an undisclosed buyer. Total cash consideration to Encana under the transaction is $165m. The agreement is subject to ordinary closing conditions, regulatory approvals and other adjustments and is expected to close in the third quarter of 2019.
"Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from non-core assets. Proceeds from this sale will be directed to our balance sheet," said Doug Suttles, Encana President & CEO.
CIBC Griffis & Small and Davis, Graham & Stubbs advised Encana.
Imperial Brands considers buyback after abandoning dividend target.
Imperial Brands abandoned its dividend target after competition from electronic-cigarette maker Juul Labs eroded revenue growth.
The maker of Winston cigarettes said that this is the last fiscal year that it will keep its dividend increase steady at 10%. The stock rose as much as 2.7% in morning trading in London after the company announced a £200m ($250m) share buyback program to ease the transition away from the decades-old policy.
Broadcom makes progress on Symantec deal with financing and savings.
Broadcom has secured financing and identified cost savings for the acquisition of Symantec in an all-cash deal that could value the cybersecurity firm at more than $22bn, including debt, Bloomberg reported.
The chipmaker received lending commitments from several banks and saw annual synergy potential of about $1.5bn. An agreement could be reached around mid-July, though the talks could also still drag on or fall apart.
WeWork to gather $3-4bn in debt ahead of IPO.
WeWork plans to raise as much as $4bn in debt in the next few months ahead of its initial public offering, the Wall Street Journal reported.
The funds will help the company, which rents office space and desks to workers around the world, drive growth until it’s profitable. The debt offering could raise as much as $10bn in the next few years.
Ex-Vodafone CEO Vittorio Colao joins General Atlantic as special adviser. (People)
Vittorio Colao, the former chief executive of Vodafone, has joined private equity firm General Atlantic as a special adviser as it hunts for deals in the technology and consumer sectors.
EMEA
Roche, a global pioneer in pharmaceuticals and diagnostics, extended its deadline for the acquisition of Spark Therapeutics, a fully integrated, commercial gene therapy company dedicated to challenging the inevitability of genetic disease, for $4.8bn. Under the terms of the agreement announced in February, Roche will acquire Spark Therapeutics at a price of $114.50 per share. The per share price represents a premium of 122% to Spark’s closing price on Feb. 22, 2019.
The new deadline for both companies to extend the merger agreement now runs to April 30, 2020, rather than Jan. 31, 2020, Roche said in a US regulatory filing.
“Although closing this deal is taking longer than I had hoped, my excitement about our anticipated partnership has only increased,” Severin Schwan, Roche CEO.
Centerview Partners, Cowen & Company, and Goodwin Procter are advising Spark. Citigroup and Davis Polk & Wardwell are advising Roche.
Equinor, a leading Norwegian oil and gas firm. disposed of a 16% stake in Lundin Petroleum for $1.56bn and in return would acquire an additional 2.6% stake in the Johan Sverdrup oilfield. Equinor agreed to sell about 54.5m Lundin shares at a price of SEK266.4 ($28.25), representing a discount of about 9.6% to Lundin’s close on Friday. It will retain a 4.9% stake in Lundin.
“The chance to redeem the majority of Equinor’s holding in Lundin Petroleum at a discount to the market and before the pivotal start-up of the Johan Sverdrup development project in November this year, was an opportunity which rarely comes along. The transaction provides us with a rationalised shareholder structure and all shareholders with enhanced leverage to the ongoing success of Lundin Petroleum, at a time when we continue to unlock further upside potential from our existing asset base and execute on our proven organic growth strategy." Ian H Lundin Lundin Petroleum Chairman.
DP World mandated banks to raise about $1bn of bonds to finance the acquisition of Topaz Energy & Marine, Bloomberg reported.
The world’s largest port operator hired Citigroup, Dubai Islamic Bank PJSC and Standard Chartered to arrange investor meetings in Hong Kong, Singapore, and London from July 10.
Rothschild & Co is advising Topaz.
PayU, a leading online payment processing and service provider across the world, acquires a majority stake in Red Dot Payment, a leading online payment service provider in Asia.
Under the terms of the agreement, PayU has acquired a majority stake in RDP in a transaction valuing the company at $65m. The founder will continue to retain a stake in the company, while the majority of other shareholders will exit.
"We are proud of how far we have come and that PayU, a leading global fintech operator and investor, recognizes the strength, depth, and breadth of the company that we have built with unwavering dedication over the past eight years. We are pleased that RDP will be part of the Naspers’ fintech portfolio as we look forward to a continued extension of our business and market position in Southeast Asia to be the fintech payment solutions champion in this region." Randy Tan, Red Dot Payment, CEO.
Evolve Capital Asia is advising Red Dot.
Seventeen Group, a leading financial and insurance institution, acquires Walker Persson & Spargo, a leading insurance brokerage firm in England. Financial terms were not disclosed.
“WPS are a highly respected firm whom we know well. I have been truly impressed by their desire throughout our negotiations to grow their presence in the South West and to maintain their focus on client service. There are significant opportunities for Seventeen Group to develop our specialist sectors into the South West and to invest in the existing strengths of WPS. The joint opportunities will be in broking, underwriting and risk management." Paul Anscombe, Seventeen Group CEO.
Beechbook Capital is the debt provider to Seventeen Group.
Groupe Legris Industries, a leading specialty machinery manufacturer, acquires MEP Group, a popular designer and manufacturer of precision metal-cutting equipment for steel, aluminum and other metal alloys, for $58m.
As a part of Legris Industries, MEP will be able to step up its growth by tapping into Group resources. In the past two years, MEP’s business has expanded by more than 25%, and the Group will work with its existing management team, led by William Giacometti, to continue that growth.
"To join Groupe Legris Industries is for MEP a great opportunity and will have a positive effect in the acceleration of our growth path that has already started in the last years. We are very thankful to AKSIA Group and to Groupe Legris Industries that made this possible." William Giacometti, MEP Group CEO.
GTT Communications, a leading provider of cloud networking services and applications, acquires KPN International, a leading telecommunications and IT provider, in a $56m cash transaction.
The transaction is in line with KPN's strategy to accelerate simplification of the company. The proceeds of the transaction will be retained to increase operational and financial flexibility. The transaction is subject to regular closing conditions, including regulatory approvals.
“The acquisition of KPN International deepens our market presence in the European region,” said Rick Calder, GTT president and CEO. “The world-class resources contributed from this acquisition, including a highly experienced team, international network assets and a deep roster of multinational clients, will help us deliver on our purpose of connecting people across organizations around the world and to every application in the cloud.”
Rothschild & Co is advising KPN International.
The negotiations between the European Commission and PKN Orlen, a major Polish oil refiner and petrol retailer, regarding the firms potential acquisition of rival Lotos have entered into the most challenging phase due to competition concerns. The Commission can either clear the deal with or without conditions after its preliminary review, or it can open a four-month-long investigation.
"There are various difficulties, including preventive measures, talks with competition, it has to make sense for us in business terms. We are doing everything for the process to succeed. There is always a risk, Now the negotiations are in the most difficult phase, we meet the Commission much more often, talk to the competition.” Daniel Obajtek, PKN CEO.
Etteplan, a leading provider of engineering services and documentation software, acquires EMP Engineering Alliance, a specialist industrial automation and process engineering. Financial terms were not disclosed.
The acquisition is in line with Etteplan’s growth strategy, at the core of which is organic growth and strengthening the company’s expertise and market position through acquisitions. Previously Etteplan was offering services for technical documentation in Germany.
”We are excited about our common future with Etteplan. The business operations of the
companies support each other well, which creates new kinds of opportunities to offer a wider range of services to our customers. The deal creates new opportunities also for our personnel: they become part of Etteplan’s global network and get a chance to work with Etteplan’s wide service offering and customer base.” Josef Brandi, EMP Engineering Alliance CEO.
Bastide 1880, a reference brand in the field of tableware and interior decoration, acquired Cades Design, which designs and distributes home decoration furniture and accessories for customers internationally. Financial terms were not disclosed.
Alexandre Bastide, of the Bastide 1880 Group said: "This agreement is based our shared values and culture, rooted in a tradition and a passion for the French way of life. Cades Design will provide the newly formed Group with a resolutely creative touch, and will be able to rely on Bastide's century-old expertise and its ability to adapt, in a context of accelerated evolution of our business and commerce in general."
Bergman Clinics, which provides health care and medical services, agreed to acquire Memira Clinics, the leading eye clinic chain in Sweden, Norway and Denmark, from Investor, a Swedish investment company. Financial terms were not disclosed.
Hans van der Heijden, CEO of Bergman Healthcare Clinics: “We are very pleased to be able to add Memira to the Bergman Clinics family. Memira's customer base, quality and geographical coverage complement Bergman Clinics and give us the opportunity to further expand our successful clinic concept. In addition, this merger gives greater scope to jointly invest in technological innovation, digitization and education.”
Ethiopia considers selling telecoms company.
Ethiopia plans to sell a minority stake in the state-owned phone monopoly and award telecommunications licenses to two new operators in the first quarter of next year, the finance ministry said.
The announcement comes as Paris-based Orange and the biggest wireless carriers operating on the continent, including MTN Group and Vodacom Group, have expressed interest in the market of Africa’s second-most populous nation with 100m people.
Orange Deputy Chief Executive Officer Ramon Fernandez said the French carrier is considering a bid for a stake in the government’s Ethio Telecom but is also open to compete for a license and become its rival.
Deutsche Bank to exit equities trading in a radical overhaul.
Deutsche Bank has unveiled one of the most radical banking overhauls since the financial crisis, closing swaths of its trading unit, cutting 18k jobs and hiving off €74bn ($83.5bn) of assets as it calls time on its 20-year attempt to break into the top ranks of Wall Street.
The struggling German lender confirmed it would close down its lossmaking equities trading business and shrink its bond and rates trading operations in a long-awaited announcement.
Greybull Capital drops plans to buy Huta Częstochowa. (FS)
Greybull Capital, a private investment company that specialises in medium- to long-term investments in UK companies, abandoned its plan to acquire ISD Huta Częstochowa, a Polish steel mill, which manufactures steel sheets. The decision was reportedly caused by disagreements regarding the purchase price. ISD Huta Częstochowa, which recently went into bankruptcy, said that it was willing to continue its negotiations with the private equity firm.
JPI Media in initial talks to sell newspapers.
According to the Financial Times, JPI media is in initial talks to sell its newspapers including The i, the Scotsman and Yorkshire Post. The company has set a deadline for preliminary bids to arrive by Monday, July 15.
A financial adviser has recently been appointed to assess options for the business and its titles. The potential bidders for the i newspaper could include European media group Mediahuis, which agreed to buy Irish newspaper group INM for $163m earlier this year.
APAC
Mitsubishi Motors Corporation and Mitsubishi Corporation invest in GOJEK, a leading on-demand multi-service platform in Southeast Asia. Financial terms were not disclosed.
Mitsubishi Motors and Mitsubishi Corporation will leverage the GOJEK platform and study possibilities for various new mobility services.
"GOJEK is proud to be partnering with Mitsubishi Motors Corporation and Mitsubishi Corporation." said Andre Soelistyo, President of GOJEK Group. "Both companies with long-standing track records in delivering reliable and quality products, services, and technology to customers around the world. This investment is testament to the strength of the GOJEK vision to use technology as a means to improve the everyday lives of people in Southeast Asia."
Davis Polk & Wardwell is advising GOJEK.
Tata Group, India's largest conglomerate, will pay $7.3bn in dues to lenders and government to help complete the merger of its telecom services with Bharati Airtel, India’s largest telecommunications services provider.
As part of the agreement, Bharti Airtel will absorb Tata CMB’s operations across the country in nineteen circles. These circles represent the bulk of India’s population and customer base.
The disposal of Tata’s phone business was part of an industry consolidation triggered by the entry of billionaire Mukesh Ambani’s Reliance Jio Infocomm in 2016. The new operator with deep pockets stormed the market with free calls and cheap data, forcing many of the incumbents, already struggling under a pile of debt, to exit or merge with rivals.
AZB & Partners is advising Bharti Airtel. EY, Goldman Sachs and Cyril Amarchand Mangaldas are advising Tata Group.
Intersnack Group, a leading European food business conglomerate, acquires a 40% stake in URC Oceania from Universal Robina. Financial terms were not disclosed.
Both parties intend to complete the transaction once the necessary approvals are obtained from the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.
Sumitomo Corporation, one of the largest worldwide Sogo shosha general trading companies, acquired Asama Giken, a manufacturer of automotive brake components, from Honda Motor Co, a Japanese public multinational conglomerate corporation. Financial terms were not disclosed.
Sumitomo Corporation will continue enhancing its automotive manufacturing business to meet the increasing demand for automotive brake components, while also contributing to the creation of a more convenient and safer society. The market for brake discs and drums, which are used to control automotive wheels, has been expanding in line with the global development of the automobile industry.
Books covered for Budweiser APAC's up to $9.8bn IPO.
Investors have already subscribed for more shares than brewing giant AB InBev is offering in the float of its Asia-Pacific operations, Reuters reported. Budweiser APAC, which launched its deal last week, is seeking to raise between $8.3bn and $9.8bn via the Hong Kong float.
AB InBev, the world’s largest brewer, has been working to reduce a debt pile of over $100bn that was built up by its purchase of rival SABMiller in late 2016.
Tencent-backed Chinese grocery delivery startup Missfresh seeks to raise $500m. (FS)
Tencent Holdings-backed grocery delivery startup Missfresh is seeking up to $500m of new funding to help tide it over tougher times, DealStreet Asia reported.
Beijing Missfresh Ecommerce, which also counts Goldman Sachs Group and Tiger Global Management as backers, is looking to fetch a valuation of at least $3bn. The company plans to raise $300m to $500m.
Growth-stage investments in India to set the record $1bn in the first half of the year.
Growth stage investments in Indian startups hit a record by breaching the billion-dollar mark in the first half of this year. It is a result of investor’s doubling on Series B and C rounds, generally considered the growth stage for startups.
The startups have raised a total of $1.17bn in the first six months of 2019, rising from $994m in the same period last year, and a 47% surge from $616m in 2017, according to data from Venture Intelligence, a startup data tracker.
Nevertheless, the number of deals has remained mostly unchanged in the last four years, falling from 85 last year to 76 this year.
“This year, like last year, we are seeing a decent number of growth stage deals happening, unlike the lull we had seen the year before. It’s a function of both the availability of capital and availability of companies that are ready to absorb growth capital,” Prerna Bhutani, partner at India Quotient.
OYO founder in the process of buying back shares from early investors. (FS)
Ritesh Agarwal, the founder of India’s largest hospitality company Oyo Hotels and Homes, is in the process of increasing his shareholding in the company by buying back shares from early investors Sequoia Capital and Lightspeed Venture Partners, The Economic Times reported.
Stocks might also be bought from the management and some employees. The aim is increasing his stake in OYO to about 32-33% from the current 10%.
The buyback is speculated to be financed through a $ 2bn secured debt facility from financial institutions in India, Japan, and Europe.
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