Investors are casting more doubt over Rogers Communications's proposed $15.5bn takeover of Shaw Communications, a Canadian telecommunications company, as last week's national network failure draws increasing scrutiny from Canada's industry watchdogs.
Industry Minister Francois-Philippe Champagne, whose department will make the final decision on the deal, called the network problem "unacceptable" and ordered telecommunications companies to agree to emergency roaming and mutual assistance during future outages. The Canadian Radio-television and Telecommunications Commission, the telecom regulator, ordered Rogers "to respond to detailed questions and provide a comprehensive explanation" for the network outage,
Bloomberg reported.
Rogers is advised by Bank of America, Barclays, Cravath Swaine & Moore, Goodmans and Torys. Financial advisors are advised by Davis Polk & Wardwell, Latham & Watkins and McCarthy Tetrault. Shaw is advised by CIBC World Markets, TD Securities, Burnet Duckworth & Palmer, Davies Ward Phillips & Vineberg, Dentons and Wachtell Lipton Rosen & Katz. Financial advisors are advised by Osler Hoskin & Harcourt.
VAALCO, an independent energy company, agreed to acquire TransGlobe, an independent internationally focused oil exploration and production company, for $307m.
"This transformational transaction is consistent with VAALCO's strategic growth objectives of expanding our African footprint and providing an enlarged platform to deliver long-term, sustainable value for our stockholders. The respective portfolios complement one another well and result in a diverse, full-cycle asset base which materially increases our production, more than doubles our reserves, and significantly enhances our ability to generate meaningful cash flow. Just as important, this combination results in a financially stronger company with no net debt, significant cash on the balance sheet and the size and scale to better fund and execute on a robust set of organic opportunities while delivering accretive long-term growth objectives," George Maxwell, VAALCO CEO.
TransGlobe is advised by Canaccord Genuity, Evercore, Bird & Bird, Burnet Duckworth & Palmer, Paul Weiss Rifkind Wharton & Garrison, Sharkawy & Sarhan and Tailwind Public Relations. VAALCO is advised by Stifel, Al Kamel Law Office, Mayer Brown, Osler Hoskin & Harcourt, Al Petrie Advisors and Buchanan.
Peloton Capital-backed 123Dentist, a provider of non-clinical support services, and Sentinel Capital-backed Altima Dental, a dental practice, agreed to merge with Lapointe Group, a dental support organization. KKR and Heartland Dental, a KKR portfolio company and dental support organization, invest in the deal. Financial terms were not disclosed.
"As a dentist-led organization for nearly 30 years, we know how important it is for patient care to have the dentist perspective when building a successful platform of supported dental practices. This is one of the many reasons why this combination will enable our supported dentists to continue to deliver an exceptional patient experience to Canadians. Now, as part of the 123Dentist family, we are incredibly well-positioned to further develop our capabilities as one of the leading dental support organizations in Canada," George Christodoulou and Sven Grail, Altima Dental Co-Founders and Co-CEOs.
KKR is advised by Simpson Thacher & Bartlett. Sentinel Capital is advised by Broadgate Consultants. Peloton Capital is advised by Boulevard Public Relations. 123Dentist is advised by KPMG, RBC Capital Markets, Miller Thomson, Torys and Ernst & Young. Altima Dental is advised by Houlihan Lokey, Kirkland & Ellis, Stikeman Elliott and Grant Thornton.
Royalty Pharma, a firm specializing in acquiring pharmaceutical royalties, agreed to acquire Theravance Respiratory Company, a biopharmaceutical company, from Innoviva, a company with a portfolio of royalties, for $1.61bn.
"We are very pleased to have entered into this agreement with Royalty Pharma, a market leader in healthcare royalty acquisitions. This transaction allows us to capture an attractive valuation for our share of TRELEGY ELLIPTA economics, enhances our cash position at a time of meaningful market dislocations, and demonstrates our continued commitment to leaving no stone unturned in our efforts to maximize shareholder value. We look forward to continuing our long-standing collaboration with GSK for RELVAR/BREO ELLIPTA and ANORO ELLIPTA," Pavel Raifeld, Innoviva CEO.
Royalty Pharma is advised by Goodwin Procter, Jones Day and Maiwald. Innoviva is advised by Moelis & Co, Willkie Farr & Gallagher and Argot Partners. Theravance is advised by Evercore, MTS Securities, Torreya Capital and Skadden Arps Slate Meagher & Flom.
Groupe Touchette to acquire NTD from ATD.
Groupe Touchette, a Canadian tire distributor, agreed to acquire National Tire Distributors, a Canada-based foremost tire, wheel, and accessory distribution company, from American Tire Distributors, an independent supplier of tires. Financial terms were not disclosed.
"On behalf of the entire Groupe Touchette team, we are absolutely thrilled to welcome NTD into our growing family. In these challenging times, and in this ever-evolving industry, the environmental and technological realities bring a high complexity on a 360-degree perspective. Groupe Touchette's plan is to offer powerful solutions that drive efficiencies and streamline the supply chain for the benefit of customers, consumers and manufacturers. NTD's addition will help us reach our goal to best serve Canadians!" Nicolas Touchette and Frédéric Bouthillier, Touchette Co-Owners.
Touchette is advised by Jefferies & Company, Dentons, Prevost Fortin D'Aoust and Hill+Knowlton Strategies. ATD is advised by Moelis & Co, Davies Ward Phillips & Vineberg, Troutman Pepper, Joele Frank and Longview Communications.
Compass Diversified, an owner of middle market businesses, completed the acquisition of PrimaLoft, a provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear and accessories, from Victor Capital, a private equity firm, for $530m.
"PrimaLoft has all the attributes we look for in an acquisition and once closed, will add to CODI's track record of acquiring industry-leading, innovative businesses with strong competitive advantages. PrimaLoft is a market leader and possesses significant intellectual property, operates in a large, growing addressable market, and has a world class management team led by Mike Joyce. In addition, PrimaLoft is a high growth and high free cash flow generating business that operates at the forefront of sustainability and is fully aligned with CODI's mission of conducting our business in a responsible and ethical manner while delivering superior investment results. We're excited to support PrimaLoft's next phase of growth," Elias Sabo, Compass Diversified CEO.
Compass Diversified was advised by Jefferies & Company, Gibson Dunn & Crutcher, Gateway Investor Relations and The IGB Group. PrimaLoft was advised by Robert W Baird, William Blair & Co and Blank Rome. Victor Capital was advised by Stanton PRM.
CURO Group, a consumer finance company, completed the acquisition of First Heritage Credit, a consumer lender that provides near-prime installment loans along with customary opt-in insurance and other financial products, for $140m.
“In late 2021, we acquired Heights Finance, a leading near-prime installment lender, signifying our entry into this broader consumer lending market in the US. Continuing on that strategic shift, today we are announcing that we are selling our legacy storefronts and online businesses in the US, which operate under the Speedy Cash, Rapid Cash and Avio Credit brands, and we are purchasing a US based near-prime installment lender, First Heritage Credit. Together, these transactions completely transform our US direct lending business to a near-prime installment lender offering larger loans. These three transactions have strategically recast our US direct lending business in less than a year’s time,” Don Gayhardt, CURO CEO.
First Heritage Credit was advised by Stephens and Butler Snow. Curo Group was advised by Jefferies & Company and King & Spalding. Financial advisors were advised by White & Case.
TA Associates, a private equity firm, agreed to invest £87m in Intelerad, a global provider of enterprise medical imaging solutions. Hg and ST6 remain investors. Financial terms were not disclosed.
"We're excited to welcome TA as a partner on our continued journey to improve healthcare through innovative technology. With their deep industry knowledge and experience scaling healthcare technology companies, the addition of TA and continued support from Hg will help Intelerad to significantly advance our growth strategy and value to customers," Mike Lipps, Intelerad CEO.
TA Associates is advised by Kirkland & Ellis. Hg is advised by DLA Piper, McCarthy Tetrault, Skadden Arps Slate Meagher & Flom and Brunswick Group.
General Atlantic, a global growth equity firm, Nautic Partners, a middle-market private equity firm, and The Vistria Group, a private equity firm, completed the acquisition of PANTHERx Rare, a specialty pharmacy company, from Centene, a health care programs provider, for $1.45bn.
"PANTHERx transforms lives by providing access solutions to people living with rare medical conditions. Our investment was a collaborative effort to bring focus to an area that not only has been significantly underserved but also offers a wealth of opportunity to enhance the lives of patients," Jon Maschmeyer, The Vistria Group Senior Partner and Co-Head of Healthcare.
The Vistria Group was advised by Ropes & Gray. Centene was advised by Barclays, Evercore and Bass Berry & Sims.
Golden Gate Capital, an American private equity firm, agreed to invest $200m in Pico, a provider of mission-critical technology services, software, data and analytics for the financial markets community.
The capital will be used to pursue strategic M&A opportunities that further enhance Pico's comprehensive global ecosystem of best-in-class technology and services, as well as other general corporate purposes.
"We have made significant investments in global expansion, product innovation, operational excellence and in our organization, thereby laying the foundation to support the next wave of substantial growth. We are thrilled to have Golden Gate Capital as an investor and strategic partner supporting us to continue leveraging our leading global technology and data platform to provide additional services for our clients," Jarrod Yuster, Pico Chairman, Founder and CEO.
Pico is advised by Jefferies & Company and DLA Piper. Golden Gate is advised by Paul Weiss Rifkind Wharton & Garrison and FGS Global.
Apollo agreed to invest $175m in Summit Ridge, an operator of a solar plant community.
"Summit Ridge is on a strong trajectory and we are excited to welcome Apollo as a new partner. Apollo's long track record of sustainable investing, coupled with its operational expertise and significant resources, are an excellent match for Summit Ridge's fast paced growth and leading position in the clean energy economy," Steve Raeder, Summit Ridge Energy CEO.
Apollo is advised by Vinson & Elkins. Summit Ridge is advised by Citigroup, Saul Ewing Arnstein & Lehr and Antenna Group.
Sensata Technologies, a supplier of sensors for transportation and industrial applications, completed the acquisition of Dynapower, a manufacturer of energy storage and power conversion systems, from Pfingsten Partners, a private equity firm, for $580m.
"We are very pleased to bring Dynapower's leading energy storage and power conversion solutions into Sensata's portfolio through this acquisition. Dynapower enables us to deliver highly engineered, mission-critical power conversion systems to fast growing renewable energy storage, industrial and defense customers and help drive our Electrification growth vector," Jeff Cote, Sensata CEO and President.
Dynapower was advised by Cowen & Company and Paul Hastings. Sensata Technologies was advised by Jones Day.
Bregal Sagemount, a private equity firm, agreed to invest in BuildingLink, a provider of operations and resident engagement software for luxury residential properties worldwide. Financial terms were not disclosed.
“We are thrilled to be partnering with Sagemount as we enter our next stage of growth. With their support and deep industry expertise, we will be well-positioned to further invest in our current offerings and to continue to grow both domestically and internationally. We have a long history of delighting property managers, and this investment will enable us to take that to the next level," Zachary Kestenbaum, BuildingLink CEO.
BuildingLink is advised by Software Equity Group and Holland & Knight. Bregal is advised by Goodwin Procter.
ICF, a global consulting and digital services provider, completed the acquisition of SemanticBits, a company specializing in the design and development of digital health services, for $220m.
"This latest acquisition is in keeping with our strategy to complement organic growth with acquisitions that strengthen ICF's position in key growth markets and provide meaningful revenue synergies over time. SemanticBits' advanced health IT and data science solutions accelerate and improve mission impact and health outcomes. As one of the industry's leading digital service and platform providers using open-source, SemanticBits scales our rapidly growing set of digital modernization capabilities and, together with our deep federal health expertise, will enable ICF to support larger, more complex projects across federal civilian agencies," John Wasson, ICF Chair and CEO.
ICF was advised by Morrison & Foerster and Advisiry Partners.
Flowers Foods, a producer and marketer of packaged bakery foods, completed the investment in Emil Capital-backed Base Culture, a producer and retailer of a range of bakery products. Financial terms were not disclosed.
“The world of food is constantly evolving and seeing entrepreneurs like Jordann create a vibrant brand that resonates with health-conscious consumers is truly inspiring. We look forward to supporting Base Culture as it continues to grow," Ryals McMullian, Flowers Foods President and CEO.
Flowers Foods was advised by Jones Day. Base Culture was advised by Whipstitch Capital.
CenterGate Capital, a private equity firm, completed an investment in United Envelope, a printing and manufacturing company. Financial terms were not disclosed.
“We are proud of the success that United Envelope has achieved in becoming a world-class envelope manufacturer over our 89-year history. We are excited about our partnership with CenterGate and believe CenterGate will provide the resources and capabilities necessary to continue the Company’s growth, expand our capabilities, and maintain our relentless focus on serving our customers,” Ken Bernstein, United Envelope President and CEO.
United Envelope was advised by CIBC. CenterGate Capital was advised by McDermott Gide & Callisto.
HGGC, a middle-market private equity firm, led a $115m investment in Upland Software, a provider of cloud-based enterprise work management software.
"HGGC has a proven track record of building value in the software sector through deploying capital and partnering with management teams to enhance customer value and drive growth, both organically and through acquisitions. The HGGC partnership, operational and strategic resources and long-term investment horizon will help us to fully capitalize on the once-in-a-decade acquisition opportunity we see emerging as recent turmoil in financial markets fundamentally reshapes funding and valuations for venture backed cloud software companies," Jack McDonald, Upland Chairman and CEO.
HGGC was advised by Stanton PRM.
Middleby, a commercial and residential cooking and industrial process equipment company, agreed to acquire CP Packaging, a manufacturer of advanced high-speed vacuum packaging equipment. Financial terms were not disclosed.
"The CP Packaging systems provide customers with industry leading sanitation, faster production throughput and reduced operating costs. This acquisition further expands upon our ability to provide customers with integrated full-line solutions, while significantly strengthening the packaging equipment offerings in our food processing portfolio. There are meaningful synergies amongst our packaging brands and our food processing platform, as we leverage our long-standing customer relationships, established global distribution and manufacturing capabilities," Tim FitzGerald, Middleby CEO.
Middleby is advised by Skadden Arps Slate Meagher & Flom.
Sun Capital Partners, a private equity firm, completed the acquisition of Andersen Commercial Plumbing, a provider of commercial plumbing solutions. Financial terms were not disclosed.
“When evaluating potential partners that could help us optimize and execute our growth plan, we looked at a number of factors, including a history of working with services businesses, a strong track record with founder-owned companies, and a reputation for hands-on operational expertise. Sun Capital’s combination of resources, industry knowledge and experience made them the ideal match. Along with our CEO Christian Hand, I am excited to work with the Sun Capital team to build on our leadership position and capitalize on new opportunities,” Paul Andersen, Andersen Commercial Plumbing Founder and President.
Sun Capital was advised by Stanton PRM.
Molina Healthcare to Acquire My Choice Wisconsin for $150m.
Molina Healthcare, a company which provides managed healthcare services, agreed to acquire My Choice Wisconsin, a health care provider, for $150m.
“The addition of My Choice Wisconsin to Molina’s expanding footprint is not only complementary to our existing Medicaid business in Wisconsin, but also representative of our strategic growth initiatives. Today’s announcement demonstrates our continuing success acquiring value enhancing revenue streams at attractive valuations,” Joe Zubretsky, Molina Healthcare President and CEO.
Kleiner Perkins, an American venture capital firm, led a $100m Series C funding round in Tecton, a developer of an enterprise-ready data platform, with participation from Snowflake, Databricks, Tiger Global and Bain Capital Ventures.
"It's just a matter of time until organizations, large and small, integrate real-time predictive applications into their everyday operations. Given the strength of their technology and team, we believe Tecton is well positioned to be the catalyst that helps enterprises experience firsthand the significant uplift of leveraging real-time or streaming data in predictive data products," Aaref Hilaly, Bain Capital Ventures Partner.
