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AMERICAS
A group of underwriters led by Bank of Montreal have launched a $2.55bn loan to back the acquisition of Nuvei, marking the biggest buyout deal since April, Bloomberg reported.
The seven-year term loan will help fund the $6.3bn leveraged buyout of the Canadian payments processor by Advent International, management, Novacap and CDPQ.
Nuvei is advised by Barclays, TD Securities, Davis Polk & Wardwell (led by Evan Rosen), Norton Rose Fulbright, Paul Weiss Rifkind Wharton & Garrison (led by Ian Hazlett and Adam M. Givertz) and Stikeman Elliott. Financial advisors are advised by Shearman & Sterling (led by Sean Skiffington). CDPQ is advised by CIBC World Markets, Mayer Brown and McCarthy Tetrault (led by Patrick Boucher). Advent International is advised by RBC Capital Markets, UBS, Blake Cassels & Graydon, Kirkland & Ellis (led by Frances Dales and Will Boothby), Stibbe (led by Roderik Vrolijk) and Community Group (led by Auro Palomba). Debt financing is provided by BMO Capital Markets. Novacap is advised by Fasken (led by Michel Boislard) and Willkie Farr & Gallagher (led by Russell Leaf, Jared Fertman and Sean Ewen). Philip Fayer is advised by Osler Hoskin & Harcourt.
Merck Animal Health, a provider of animal health services, completed the acquisition of the aqua business of Elanco, an American pharmaceutical company which produces medicines and vaccinations for pets and livestock, for $1.3bn.
“With the completion of this acquisition, we are well positioned within the aquaculture industry with a robust and comprehensive portfolio across warm water, cold water, vaccines, anti-parasitic treatments, water supplements and nutrition. We are excited to welcome our new colleagues to Merck Animal Health and we look forward to working together, driven by our common purpose of the Science of Healthier Animals®,” Rick DeLuca, Merck Animal Health President.
ESCO Technologies, a provider of highly engineered products and solutions serving diverse end-markets, agreed to acquire signature management & power business, a provider of mission-critical signature and power management solutions for submarines, from Advent-backed Ultra Maritime, a provider of application-engineered solutions in the key elements of mission critical & intelligent systems, for $550m.
“I’m excited to welcome the outstanding management team and dedicated employees of Signature Management & Power to ESCO. Their product offerings complement our existing submarine and defense-related platforms, providing increased content on domestic naval programs and expansion into international defense markets for our A&D segment," Bryan Sayler, ESCO President and CEO.
ESCO Technologies is advised by JP Morgan and BCLP. Ultra Maritime is advised by Lazard and Weil Gotshal and Manges (led by Murray Cox).
Ryan, a global tax services and software provider, agreed to acquire property tax services business of Altus Group, a provider of asset and fund intelligence for commercial real estate, for $513m.
“This transaction allows Altus Group to focus on the substantial growth opportunities in our core Analytics business while ensuring our property tax clients will continue to be well serviced by Ryan’s leading capabilities. We believe Ryan is the best strategic fit for our Property Tax business, and we’re confident our clients will benefit from the expanded tax service offerings Ryan can provide them,” Jim Hannon, Altus Group CEO.
Ryan is advised by RBC Capital Markets, Arnold & Porter Kaye Scholer, Goodmans and Kirkland & Ellis.
Estancia Capital Partners, a lower-middle market private equity firm, completed the investment in StrategyCorps, a provider of deposit analytics and retail and small business checking-related solutions. Financial terms were not disclosed.
“In the fiercely competitive banking landscape, being the Primary FI hinges on offering relevant products and exceptional service. Our strategic partnership with Estancia positions StrategyCorps to expand rapidly, evolve our top-performing solutions, and help community and regional FIs outshine mega and digital banks. It also accelerates our client’s ability to generate new revenue, countering the decline of traditional checking-related revenue under regulatory pressure,” Mike Branton, StrategyCorps Chairman and CEO.
StrategyCorps was advised by Keefe Bruyette & Woods and Bass Berry & Sims. Estancia was advised by Jefferies & Company and Kirkland & Ellis.
CDPQ-backed Verene Energia, an investment holding company in the electric power sector, agreed to acquire SPE 7, a strategic and modern power transmission network spanning 124 kilometres in the state of Pará, in northern Brazil, from Equatorial Energia, an electric services company, for $154m.
“This new transaction reaffirms our commitment to investing in critical assets that unlock the full potential of renewable energy projects and accelerate energy transition, particularly in Brazil, a core market for us. To this end, we will continue to grow Verene Energia, the driving force for the development and operation of CDPQ’s power transmission assets in Latin America," Emmanuel Jaclot, CDPQ Executive Vice-President.
Equatorial Energia is advised by UBS.
Coldstream, a wealth management firm, completed the merger with Arnerich Massena, an investment advisory firm. Financial terms were not disclosed.
"We are delighted to merge with Reegan, Bryan, and the rest of the Arnerich Massena team. Joining forces with them is consistent with our longtime mergers and acquisitions strategy, which is laser-focused on aligning ourselves with partners who not only share our values and approach to service but are committed to remaining independent and employee-owned. I'm looking forward to what we can accomplish together," Kevin Fitzwilson, Coldstream Managing Shareholder.
Coldstream was advised by Haven Tower Group (led by Donald Cutler).
David Ellison vows more film production after Paramount merger. (People)
Independent producer David Ellison delivered a promise on July 8 to a Hollywood community rocked by strikes, layoffs and cutbacks: Film and TV giant Paramount Global will be increasing production once his Skydance Media takes over, Bloomberg reported.
“We definitely want to make more pictures. There’ll be an increase in television production. For the creative community it means more content and more storytelling,” David Ellison, Skydance Media CEO.
Broadcom sells $5bn of bonds to refinance VMware loan.
Broadcom borrowed $5bn in the US investment-grade bond market on July 8, to refinance a portion of the loans it secured to pay for its $69bn acquisition of VMware, Bloomberg reported.
The software developer sold debt in three parts. The longest tranche yields 0.95 percentage point over Treasuries, after initial talks in the area of 1.25 percentage point above Treasuries.
Canada move to limit mining M&A hurts big metals producers.
New Canadian rules limiting foreign takeovers of mining companies will leave the nation’s biggest metals producers with lower valuations than their global peers, Bloomberg reported.
Canada will only approve foreign takeovers of large domestic mining firms with “significant” critical minerals operations “in the most exceptional of circumstances,” according to guidance issued July 4 by Industry Minister Francois-Philippe Champagne. The measure was taken to protect the country’s cache of metals that are key to the energy transition.
America’s biggest nonalcoholic beer brand doubles its valuation.
Athletic Brewing continues to ride the wave of Americans drinking less alcohol. The biggest nonalcoholic beer brand in the US has closed a new financing round that values it at around $800m, WSJ reported.
That is roughly double its valuation from just two years ago. Athletic plans to use the new capital to drive continued long-term growth, including through the recently announced purchase of a third US brewing facility and the ongoing expansion of its world-class non-alcoholic beer at retailers across the globe.
Argentina’s biggest foreign exchange, futures markets agree to merge.
Argentina’s Mercado Abierto Electronico and Matba-Rofex agreed to merge into a single exchange, creating the country’s largest futures and foreign-exchange market, Bloomberg reported.
The new exchange will include agricultural transactions, peso futures against dollars and trading on bonds, including local treasury and central bank notes.
Monomoy Capital Partners announces close of oversubscribed Fund V at $2.25bn. (FS)
Monomoy Capital Partners, a private investment firm focused on the middle market, is pleased to announce the closing of its fifth private equity fund. Fund V exceeded its initial target of $1.6bn and was oversubscribed at its final close of $2.25bn.
The firm’s previous fund closed in late 2021 at over $1.1bn. Due to substantial interest and significant demand from a growing and globally diversified investor group, Fund V’s limited partner hard cap was fully allocated at $1.9bn within eight weeks and reached its final close in five months total.
Carlyle global capital markets head Lindley succeeded by Savino. (FS, People)
Carlyle Group’s head of global capital markets, Brian Lindley, has left after more than 13 years at the alternative-asset manager, Bloomberg reported.
Lindley, who’s based in London, is credited with establishing the firm’s global capital markets group and managed teams in New York and London. He has been succeeded by Matt Savino, who’s based in New York.
Bitcoin miner Bitfarms names new CEO as riot takeover attempt heats up. (People)
Bitcoin miner Bitfarms appointed a new CEO from within its own ranks as a pressure campaign from spurned suitor Riot Platforms becomes more pronounced, Bloomberg reported.
Bitfarms’ board of directors named the company’s Chief Mining Officer Ben Gagnon as CEO. Gagnon is the fifth Bitfarms CEO in the past five years.
EMEA
KnowBe4, a security platform for security awareness training and simulated phishing attacks, completed the acquisition of Egress, a software company that specializes in human layer security designed to prevent accidental and intentional data breaches, from FTV Capital, a growth equity firm, and AlbionVC, an investment company. Financial terms were not disclosed.
“Human risk management is an essential component of a comprehensive cybersecurity program. This acquisition reinforces our ability to fortify global organizations against the ever-increasing amount of human-targeted threats. Today marks an important milestone in the evolution of cybersecurity and the next generation of KnowBe4’s human risk management capabilities,” Stu Sjouwerman, KnowBe4 CEO.
Egress was advised by Citigroup and Orrick Herrington & Sutcliffe (led by Shawn Atkinson). FTV Capital was advised by Willkie Farr & Gallagher (led by Gavin Gordon).
Gryphon Investors-backed Vetnique Labs, a pet health products company, agreed to acquire Lintbells, a pet supplements provider. Financial terms were not disclosed.
"Our vision with Gryphon has always been to create a global pet health and wellness platform in the $3bn supplement market. We are excited to build on our track record of profitable growth and help accelerate YuMOVE's products in North America. Together we can broaden our offering of differentiated products and solutions that are consistently recommended by veterinarians and provide real and lasting benefits for pets," James Bascharon, Vetnique CEO.
Vetnique is advised by Lambert & Co (led by Caroline Luz). Gryphon Investors is advised by Raymond James and Kirkland & Ellis.
Bregal Unternehmerkapital, a private equity firm, agreed to acquire a majority stake in BSI Software, a customer relationship management software company, from Capvis, a mid-market investor. Financial terms were not disclosed.
”BSI connects people and software. The BSI Customer Suite combines customer focus and industry expertise based on a sophisticated no-code/low-code platform. With this recipe for success, we are continuing our growth strategy in Europe to inspire more customers," Markus Brunold, BSI CEO.
Clayton Dubilier & Rice, an American private equity company, and Permira, a British global investment firm, offered to acquire Exclusive Networks, a global cybersecurity specialist, for €2.2bn ($2.4bn).
Exclusive Networks is a global cybersecurity specialist that provides partners and end-customers with a wide range of services and product portfolios via proven routes to market. With offices in over 45 countries and the ability to serve customers in over 170 countries, we combine a local perspective with the scale and delivery of a single global organization.
Exclusive Networks is advised by FTI Consulting (led by Jamie Ricketts).
MRI Software-backed Orchard Information Systems, a software house that produces state of the art solutions for organisations involved in public service, agreed to acquire Capita One, a standalone software business, from Capita, a business process outsourcing and professional services company, for £200m ($256m).
"As I outlined recently at our Capital Markets Event, Capita’s strategy is to become a more focused company, prioritising businesses where we can deliver material opportunities in the future, with greater simplification and cost reduction. Capita One is a high-quality business that has performed exceptionally well. Under its new owner, it is well positioned to benefit from investment in its strategic growth," Adolfo Hernandez, Capita CEO.
Capita is advised by Barclays (led by Aamir Khan).
Icon Group, a cancer care provider, completed the acquisition of Pharmaxo Group, a pharmaceutical specialist manufacturer and clinical homecare provider. Financial terms were not disclosed.
“Welcoming Pharmaxo to Icon Group reflects our ongoing commitment to improving access to world-class healthcare in the UK,” Mark Middleton, Icon Group CEO.
Pharmaxo was advised by Robert W Baird (led by Tom Cowap).
Moody’s, an American business and financial services company, completed the acquisition of the remaining stake in GCR Ratings, an operator of a rating agency for financial institutions, insurance, corporate and public sector debt and structured finance. Financial terms were not disclosed.
“The full acquisition of GCR by Moody’s is an important milestone that will enable us to build on our deep local market insights and over a quarter century of growth across the African continent. It will also provide the opportunity to further develop solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities,” Marc Joffe, GCR Chief Executive.
Turkish sovereign wealth fund weighing stake sale in Turkcell. (FS)
Turkey’s sovereign wealth fund is weighing whether to sell its 26.2% stake in Turkcell Iletisim Hizmetleri, the country’s biggest telecommunications operator. The board of Turkey Wealth Fund has yet to make a formal decision, Bloomberg reported.
While informal discussions with potential buyers have taken place, some within the sovereign wealth fund are opposed to a sale because they consider the company a strategic asset. A final decision will likely be made by President Recep Tayyip Erdogan, who leads the fund’s board.
Anglo American hires banks for coal assets sale
Anglo American has hired three banks for the sale of its steelmaking coal assets, which analysts value at as much as $5bn and is part of a broader restructuring to fend off an approach from rival BHP, Reuters reported.
Anglo's CEO Duncan Wanblad said in May the sale of its five operating coal mines, development projects and joint ventures in Australia was soon to kick off, as part of a wider plan to divest less profitable assets and focus on expanding copper output after BHP's failed attempt to take over the company.
Citi sees growth in African debt swaps for nature. (FS)
A number of African governments are in talks to swap some of their commercial loans for cheaper borrowing linked to food security, nature, health and education, said Citigroup’s sub-Saharan Africa head Akin Dawodu, Bloomberg reported.
The US bank is exploring options with some of its clients to convert debt into bonds that target environmental, social and governance objectives, which can attract keener terms for issuers due to the higher demand for such investments.
Saudi Arabia trails only Singapore in emerging market VC funding race. (FS)
Saudi Arabia ranked second across the emerging-market venture capital space in the first half of 2024, trailing only Singapore, Sky News reported.
Software startup Salla raised $130m in the period, boosting the kingdom’s venture capital fundraising to $412m — the highest in the Middle East and North Africa.
Juice pouch brand Capri-Sun is exploring minority stake sale.
Capri-Sun, the maker of juice drink pouches, is exploring the sale of a minority stake, Bloomberg reported.
The company, which is controlled by Swiss billionaire Hans-Peter Wild, is working with advisers to gauge interest from potential investors. It’s seeking to raise more than $500m.
Metro Bank says it is in talks on potential mortgage portfolio sale.
British lender Metro Bank said on July 9 it was in talks about a potential disposal of residential mortgage loans worth billions of pounds, Sky News reported.
The size of the portfolio, which is yet to be finalised, could be closer to GBP4bn ($5.13bn) than GBP3bn ($3.84bn).
UK hotel dealmaking hits highest level in almost a decade.
Dealmaking in the UK hotel sector in the first half of the year was at its highest volume in almost a decade, driven by interest from US private equity firms, FT reported.
The value of deals in the sector reached an estimated £3.08bn ($3.94bn) in the six months to June, an increase of 35 per cent compared with the whole of 2023. It is the highest volume since the same six-month period in 2015, when volumes totalled £3.61bn ($4.62bn), and 5 per cent above the pre-pandemic five-year average of the first half-year.
Malaysian palm grower ready for tougher ESG rules with IPO.
Johor Plantations Group will use funds raised in its MYR735m ($156m) IPO to build a palm oil operation powered by clean energy, as it navigates increasingly tough regulations in key markets like Europe, Bloomberg reported.
The mid-sized producer is confident about appealing to European consumers thanks to its short, sustainability-certified supply chain and plans to halve its carbon output by next year.
HSBC eyes payouts, new roles for execs pipped to CEO job. (People)
As HSBC prepares to name its third CEO in nine years, the bank is exploring financial incentives and reallocating key projects to retain those who miss out on the top job, Reuters reported.
Europe's biggest bank could reassign its technology transformation and innovation strategy, currently overseen by CEO Noel Quinn, away from his successor.
APAC
Saint-Gobain, an offeror of design, manufacturing, and distributing building materials, completed the acquisition of CSR, a manufacturer of building products for home buildings, renovations and commercial construction, for $3bn.
"We are delighted with the timely completion of this major transaction in Australia's attractive high-growth construction market which is underpinned by solid macroeconomic fundamentals. The acquisition will strengthen our presence in the fast-growing Asia-Pacific markets and is fully aligned with our "Grow & Impact" strategy and our worldwide leadership in light and sustainable construction. We see a tremendous opportunity to build on CSR's strengths to further accelerate its growth in the region," Benoit Bazin, Saint-Gobain Chairman and Chief Executive Officer.
CSR was advised by UBS and Herbert Smith Freehills (led by Tony Damian). Saint-Gobain was advised by Barclays, Barrenjoey Capital Partners, Lazard and Corrs Chambers Westgarth (led by Sandy Mak).
Australian auto parts retailer Bapcor rejected on July 9 the AUD1.83bn ($1.23bn) buyout offer from private equity firm Bain Capital, saying it did not fully reflect the company's value, Reuters reported.
The company's stock fell by as much as 4.3% in early trade on July 9. The Australian benchmark S&P/ASX200 was up 0.65%. Bain Capital had offered to buy Bapcor for AUD5.4 ($3.6) per share in cash, representing a 23.9% premium to the stock's June 7 close of AUD4.36 ($2.9).
Temasek-backed 65 Equity Partners, an investment firm, completed a $74m investment in Hi-P, a regional advanced manufacturing service provider.
“Having grown our capabilities, capacity and customer base over the past few years, we are excited about our prospects, and look forward to working with 65 Equity Partners to hone our business strategy. This will be crucial for us to achieve our aim of greater growth globally. With its investment strategy, expertise and network, I have no doubt that 65 Equity Partners is the right partner on this journey," Yao Hsiao Tung, Hi-P Executive Chairman and Founder.
Hi-P was advised by SEC Newgate (led by Karin Lai).
Accenture, a global professional services company, completed the acquisition of Excelmax Technologies, a semiconductor design services provider. Financial terms were not disclosed.
“With the rapid evolution of new technologies like generative AI and the growth of connected products, more intricate, specialized chips with enhanced performance and efficiency are required. Our acquisition of Excelmax enhances our expertise across every aspect of silicon design and development—from concept to production—so we can help our clients fuel innovation and drive growth,” Karthik Narain, Accenture group chief executive—Technology.
KKR to cut stake in chip tool maker Kokusai Electric. (FS)
Private equity firm KKR plans to cut its stake in Kokusai Electric, cashing in after a blistering run for shares in the Japanese chip equipment maker, Reuters reported.
KKR, which holds around 43% of Kokusai's shares, plans to sell about half of its stake to investors. Kokusai will buy back shares in the market. A 20% stake in Kokusai is worth roughly $1.6bn as at July 8 closing price.
Temasek China bets trail Americas for first time in a decade. (FS)
Temasek’s investments in China are now smaller than those in the Americas for the first time in at least a decade, underscoring persistent caution among global money managers toward Asia’s largest economy, Bloomberg reported.
The Singapore state-owned investor on July 9 reported a modest total shareholder return of 1.6% for the year ended March 31. It said China’s capital markets slump caused valuations of its assets in the country to decline, which offset better returns from the US and India.
Singapore's Temasek doesn't rule out high-carbon investments on road to net zero. (FS)
Singapore state fund Temasek will consider investing in fossil fuel and other carbon-intensive projects if they make environmental as well as commercial sense even as it aims to cut portfolio emissions to net zero by 2050, Reuters reported.
"One of the things we realised when we set this original (net-zero) goal for ourselves, it does create an incentive to invest only in low-carbon emitting industries. But there is a case for investing also in high-emitting industries if you could transform them," Rohit Sipahimalani, Temasek CIO.
Hyundai under pressure from Tata, Mahindra as $3.5bn India IPO looms.
Tata Motors and Mahindra & Mahindra are closing in on Hyundai Motor’s No. 2 position in India, putting pressure on the South Korean automaker just as it prepares for a record $3.5bn listing of its local unit, Bloomberg reported.
While Hyundai has long wrestled with Tata Motors for the second spot, Mahindra — famed for its big, brash sport utility vehicles — has been steadily climbing up the charts as Indian consumers embrace ever larger passenger vehicles.
Watson listing plan still on, Singapore’s Temasek says. (FS)
Singapore state-investment company Temasek said the plan to list Watson Group remains in place, a potential deal that could be worth billions of dollars, WSJ reported.
“While its listing objective has not changed, it will be up to the company’s board and management to decide on its listing objectives, timing and venue,” Chia Song Hwee, Temasek deputy CEO. Watson had in 2014 postponed plans for a $6bn IPO in Hong Kong and London.
Long-time Hillhouse partner David Rhee retires from Asia giant. (FS, People)
Hillhouse partner David Rhee retired at the end of June after 14 years at the more than $100bn Asian investment firm, Bloomberg reported.
Rhee focused on public and private market investments in Asia excluding China. He plans to return to the US with his family.
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