Daily Review

Small World Financial Services is a leading international, UK-headquartered, multi-channel, cross-border payment service provider. The deal was first announced on March 26, 2018. Financial terms were not disclosed.

Andrew Backen, Partner at Equistone Partners Europe, commented: “Small World is a well-positioned, strongly growing business led by a talented and experienced management team. Demand for cross-border payments is increasing due to macro-demographic trends, and Small World's high-quality customer proposition and scalable business model position it to achieve further organic and acquisitive growth. Equistone has a successful track record of investing in financial services businesses in the UK and internationally, and we are excited about working with Nick and his team to support the Company's continued development.”

Small World Financial Services was advised by Canaccord Genuity and Charles Russell. Equistone was advised by Marsh, UX Fabric, Ernst & Young, Quayle Munro, Huntswood, Travers Smith & PricewaterhouseCoopers.

 

Corsair-backed ZEDRA, a global provider of trust, corporate and fund services, acquired JP Integra Group, a Cayman-based provider of fund, corporate and trustee services. Financial terms were not disclosed.

The transaction, which is subject to regulatory approval and is expected to complete in the first half of 2019, substantially increases ZEDRA’s capabilities in providing the most appropriate structuring and administrative solutions to its international clients.

 

“JP Integra’s award-winning team will enhance the scope of fund services that we’re able to offer our clients,’ said Ivo Hemelraad, ZEDRA Group Director of Corporate, Funds & Legal. ‘By complementing our already extensive in-house expertise and capabilities, we’re looking forward to being able to add even greater value to the fund services ZEDRA can deliver today.”

 

Horizon Capital-backed Rozetka, the leading online e-commerce retailer in Ukraine, acquired EVO, the internet company behind the country’s largest marketplace. Financial terms were not disclosed.

“The synergies that this merger enables in logistics, IT infrastructure and cooperation with tens of thousands of entrepreneurs, will ensure we continue to be the platform-of-choice for Ukrainian consumers. Internet marketplace is an important growth driver for Rozetka and the merger with EVO provides strong momentum for further expansion of marketplace sales. Ukrainian consumers are the clear winners with this merger, we look forward to continuing to delight our customers in the years ahead”, commented Vladyslav Chechotkin, Co-Founder and Chief Executive Officer of Rozetka.

 

The sale of a stake in German public-sector bank NordLB is facing delays as bidders Cerberus and Apollo were asked to elaborate on their offers. The two buyout groups last week handed in their final bids. However certain aspects remained vague and NordLB’s owners decided over the weekend that more discussion was needed.

Separately, the bank remains in talks over the sale of two portfolios of a combined €6.5bn ($7.3bn) in non-performing ship loans, which it expects to sell at heavy discounts.

Fortum, an energy company focusing on the Nordic and Baltic countries, Poland, Russia and India, and the largest shareholder of Uniper, a German energy company, held talks with activist fund Elliott Management over how to gain control of Uniper. Fortum is growing increasingly frustrated over the slow pace of progress in discussions with Uniper regarding a cooperation agreement after it took a 47% stake this year. Uniper has opposed Fortum’s purchase of the stake.

Talks between Fortum and Elliott, Uniper’s second-largest shareholder with a 16.51% holding, also touched on possible conditions in which Fortum could buy Elliott’s stake.

Shares in Uniper rose as much as 5 % on the news.

 

Chip Wilson, the Canadian founder of yoga-apparel retailer Lululemon Athletica Inc, looks to join the group of Chinese investors, which pursues a takeover of Amer Sports, a Finnish headquartered sporting goods company with brands including Salomon, Wilson Sporting Goods, Atomic Skis, Arc’teryx, Mavic, Suunto, ENVE Composites, Peak Performance and Precor. He is rumored to be interested in acquiring a 20% stake.

The Chinese investor group is led by Anta Sports Products Ltd. Tencent is also rumored to be interested in joining the bid. In September Anta had teamed up with Chinese buyout firm FountainVest Partners to make an indicative offer valuing Amer at about €4.7bn ($5.3bn).

Shares of Amer climbed by the most in almost three months.

 

 

Reuters reported that Nestle’s Chairman Paul Bulcke said the stake in French cosmetics firm L’Oréal was “something active on the board’s agenda.” The company is currently under pressure from New York-based hedge fund Third Point, run by investor Daniel Loeb, to overhaul its business and sell its stake in L’Oréal.

Asked whether Nestle would consider allowing Third Point on its board, Bulcke declined to answer, the FT reported. “We are open to all ideas and then we judge what is best for the company,” he said.

 

Blackstone acquired Clarus Ventures, a leading global life sciences investment firm that has raised $2.6bn since its founding. Financial terms were not disclosed.

This acquisition launches Blackstone Life Sciences, an industry-leading private investment platform with capabilities to invest across the life-cycle of companies and products within the key life sciences sectors. The business will fill a critical void in the industry, which is seeing unprecedented growth, but lacks the necessary funding to bring medicines and healthcare technologies to market.

Jon Gray, Blackstone President and Chief Operating Officer, said: “This is a unique moment where rapid advancements in science and technology are creating unprecedented innovation and unparalleled impact on human health. Private capital can play an important role in accelerating the lengthy clinical development process to help bring vital, but underfunded, drugs to market. Building on the foundation of the world-class Clarus team, Blackstone Life Sciences is uniquely suited to provide much needed capital and expertise to this sector.”

 

Liberty Hall Capital Partners acquired Aircraft Performance Group, a leading global provider of proprietary flight operations software solutions into the aftermarket of the aerospace industry. Financial terms were not disclosed.

“Over its nearly twenty-year history, Aircraft Performance Group has grown into a leading independent, global provider of flight and aircraft performance software solutions through continuous development of new technologies and products,” said Rowan Taylor, Liberty Hall’s founding and Managing Partner. “We intend to provide APG the resources to continue its history of innovation and disruption in its market segment and better serve its customers by accelerating the introduction of these exciting technologies and products.”

Financing was provided by BMO Capital Markets and Stellus Capital Management. Gibson Dunn & Crutcher advised Liberty Hall Capital. CapitalValue Advisors, MDH Law Group and Rumler Tarbox Lyden advised APG.

 

The Colorado-based footwear maker will pay $183.7m for half the preferred stock Blackstone acquired as part of a $200m investment in early 2014. Crocs' shares were trading at about $15 at the time of the initial deal and have since risen to $27.80. The private equity firm also got two board seats under the 2014 agreement.

“Blackstone’s influence and impact on the company has been extremely positive in terms of bringing in new executives and guiding strategy,” Chief Executive Officer Andrew Rees said in an interview. “It puts us in a place today where we have the financial strength to buy back the shares."

 

Martin Sorrell’s new company, S4 Capital, said it was in advanced talks to buy MightyHive, a San Francisco-based programmatic advertising group that partners with major brands. S4 plans to integrate the firm as part of its drive to form a new business combining media and technology. The acquisition has not been confirmed, and S4 did not disclose the potential value of the purchase, which has been reported as worth up to $200m.

“The potential transaction, if consummated, is in line with the company's stated strategy of creating a new era, new media solution embracing data, content, and technology in an always-on environment for global, multi-national, regional and local clients and for millennial-driven digital brands,” S4 said in a statement.

GrainCorp is a public company, whose core business is the receival and storage of grain and related commodities. LTAP, a group including businessman Tony Shepherd, a former president of the Business Council of Australia and chair of Transfield, offered a cash consideration of $10.42 per GrainCorp share.

LTAP has stated that it is an asset manager for a trust whose beneficiaries are Australian investors. Further, that the structure has been established to make long-term investments and that it does not intend to sell any of the assets of GrainCorp should the LTAP proposal be recommended by the GrainCorp Board and ultimately supported by GrainCorp shareholders as a scheme of arrangement.

GrainCorp is being advised by Macquarie Capital and Gilbert + Tobin. Goldman Sachs and Westbourne Partners provided LTAP with financing.