JPI Media, a company formed by Johnston's bondholders, acquired Johnston Press, a multimedia company based in Edinburgh, Scotland, as part of debt restructuring. The bondholders wrote off more than 60% of the senior secured debt, reducing it to £85m ($109m) from £220 ($282m), and are to delay full repayment until December 2023.
John Ensall, director of JPIMedia, said: “In the absence of another financial solution being available for the business, we are pleased to have reached this agreement to acquire Johnston Press, to protect the value of the business, preserve jobs and allow for the uninterrupted publication of its websites and newspapers."
SEB Fund Services, the fund services business of SEB, Swedish financial group, completed the merger with FundRock, a leading independent third party UCITS Management Company. The transaction was initially announced on May 22, 2018. Financial terms were not disclosed.
FundRock has a focused strategy to become one of the leading, independent providers of fund services in Europe. “This move is part of our five-year plan and provides a strong foundation to reach our goal of becoming the premier independent Fund Management Company/AIFM in Europe with a full pan-EU offering in the three major fund centres; UK, Ireland and Luxembourg”, said Revel Wood, Group CEO of FundRock.
SEB was advised by Allen & Overy.
Several consortia expected to bid for a possible $11.4bn stake in ADP, operator of Paris airports. (Financial Sponsors)
At least three consortiums have been formed to launch multibillion-euro bids for a stake in the operator of Paris Charles de Gaulle and Orly airports, among the first of France’s planned privatisations for 2019.
The French state’s 50.6% stake in airports group Aeroports de Paris is likely to go on the block next year in a deal that could be worth up to $11.4bn.
The possible bidders include Global Infrastructure Partners, Vinci, IFM, Atlantia in addition to global infrastructure investors, Canadian and US pension funds, large European insurers and Middle Eastern funds.
Siemens, Alstom skip EU antitrust hearing regarding rail merger.
According to a Reuters report, both companies said they were now focusing on “ongoing constructive discussions” to address concerns raised by the Commission and will not seek a hearing in front of EU antitrust regulators. Alstom this week voiced confidence it would finalise a merger by the middle of next year. Siemens Chief Executive Joe Kaeser said last week he was relaxed about getting approval.
Regulators in China have already given the green light to the deal, although Australia is still examining whether the mega-merger could lead to higher prices by lowering competition for heavy rail signalling projects. To win the approval of the EU, Alstom and Siemens might explore a sale of some of their assets.
ABB in talks with three Asian suitors about $11bn Power Grids sale.
ABB, a Swiss-Swedish multinational corporation headquartered in Zurich, operating mainly in robotics, power, heavy electrical equipment and automation technology areas, is in talks with Hitachi, Mitsubishi Electric Corp and State Grid of China about the sale of all or part of its power grids business. The estimated value of the business is currently about $11bn. A decision to sell the power grids division, which makes power transformers and substations for transmitting electricity, marks a U-turn for ABB CEO Ulrich Spiesshofer, who decided to keep the business two years ago, despite calls from some shareholders to sell.
ABB hopes to announce a deal by the end of next week. ABB’s shares rose by 2.1% in response to the talks.
Ineos in talks to buy Conoco North Sea assets.
Ineos, a multinational chemicals company headquartered in London, is in talks to acquire North Sea assets of ConocoPhillips, the world's largest independent pure-play exploration and production company. The purchase price is rumoured to be around $3bn.
Reuters reported in May that ConocoPhillips was preparing to sell North Sea assets in order to focus on shale gas production in the United States, and earlier this week Bloomberg said the oil major aimed to sell $3bn of assets by the year’s end.
Citigroup and HSBC were approached to provide financing for the transaction.
MUFG is the leading bidder for DVB's aviation finance.
Japan’s Mitsubishi UFJ Financial Group leads the bidding process for the sale of the aviation financing portfolio of DZ Bank, the second largest bank in Germany by asset size. The estimated value of the transaction is €1bn ($1.1bn).
Once DZ Bank has finalised the sale of its aviation and land transport finance portfolios, it will turn to offloading shipping finance loans, much of which remain distressed, sources close to the matter said.
Technicolor explores potential sale. (FS)
Technicolor SA has been exploring options that include a full or partial sale of the French digital media company, as its set-top box business struggles because of higher prices for memory chips.
Technicolor has been in discussions in recent months with other companies and private equity firms, including Bain Capital, about a sale of the company or a merger with a peer.
Technicolor, which trades on France’s Euronext, has a market value of €503m ($569m).
Elliott increases stake in Uniper, paves the way for Fortum deal.
According to a Reuters report, Elliott Management Corporation increased its stake in Uniper, an energy company based in Düsseldorf, from 12.8% to 16.51%. This extra clout could help break a deadlock in a takeover stalemate between Uniper’s management and Fortum.
Fortum, Uniper’s largest shareholder, has been prevented from consolidating Uniper in part because of a problematic asset: a water testing license in Russia, which is still owned by Uniper’s Russian subsidiary Unipro and is considered strategic by Russia. Elliott’s increased Uniper stake could now be used to force Uniper’s management to enter talks about how to implement a so-called profit transfer and domination agreement with Fortum.
BlackBerry acquired Cylance from PE and VC shareholders for $1.4bn. (FS)
BlackBerry Limited has entered into a definitive agreement to acquire Cylance, an artificial intelligence and cybersecurity leader, for $1.4bn. The sellers are Khosla Ventures, Insight Venture Partners, DFJ Growth, Blackstone and KKR.
“Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio, UEM and QNX in particular. We believe adding Cylance’s capabilities to our trusted advantages in privacy, secure mobility, and embedded systems will make BlackBerry Spark indispensable to realising the Enterprise of Things.” John Chen BlackBerry Executive Chairman and CEO.
BlackBerry was advised by Morrison & Foerster.
INEOS, one of the world’s largest chemicals companies, acquired the composites business of Ashland, an American chemical company which operates in more than 100 countries, for $1.1bn. The businesses included in the transaction have combined sales of more than $1.1bn per year. They employ 1,300 employees across 20 sites in Europe, North and South America, Asia and the Middle East.
Ashley Reed, CEO INEOS Enterprises said, “Ashland’s composite resins have been the materials of choice for the world’s boat builders for 30 years, and for good reason. They are light, strong and resistant to attack from chemicals and even fire. Unlike wood they don’t rot, unlike metal, they don’t corrode and unlike concrete they don’t crack. We believe that they have great potential for growth under INEOS ownership and we are looking forward to working with a great team of people who are determined to meet the developing needs of our customers.”
PricewaterhouseCoopers, Valence and DLA Piper advised INEOS. Citigroup and Squire Patton Boggs advised Ashland.
AEA Investors acquired Numotion from Audax and LLR. (FS)
Numotion is a Missouri-based company which provides mobility solutions for individuals with complex medical mobility limitations. Financial terms were not disclosed.
“We’re excited to partner with AEA as we enter into this next chapter of our growth,” said Mike Swinford, CEO of Numotion. “AEA’s resources and expertise will help us to invest further, so we can continue in our pursuit of providing the best possible services to our customers. The AEA team is extremely passionate about our purpose which made them the perfect sponsor as we continue our mission of improving the lives of people with disabilities.”
Ropes & Gray, LLP served as legal advisor and Harris Williams served as financial advisors to Numotion. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor to AEA.
TEAM Technologies is a leading custom design and manufacturing partner to many of the world’s leading brands in the dental, medical, and cosmetic industries. Financial terms were not disclosed.
“TEAM Technologies has long been a trusted innovation partner and a recognised supply chain leader across several highly attractive end markets. Our investment reflects our confidence in Marshall and his team’s ability to continue delivering the highest quality products and solutions to customers, and the unique opportunity to sponsor an attractive platform in a dynamic, but fragmented market. Jose E. Feliciano, Clearlake Co-Founder and Managing Partner.
TEAM Technologies and the Riverside Company were advised by William Blair. Ares Management and Northwestern Mutual Capital provided financing to Clearlake.
A leading global private equity investment firm with $30bn of equity capital under management, sold its portfolio company Constructive Media, LLC to Sandbox & Co. Financial terms were not disclosed.
CM is one of the largest digital media platforms at the intersection of education and casual gaming. The Company has curated and developed a large selection of highly entertaining thinking games across a range of genres and age groups for desktop and mobile.
“We have enjoyed partnering with HIG over the past few years. Our team has valued the continued support and leadership provided throughout our partnership as we worked to achieve our goals and growth initiatives. We are excited to join Sandbox and its portfolio of complementary companies.” Greg Barlow Constructive Media CEO.
A leading private equity firm specialising in investments in consumer products companies, has acquired Backerhaus Veit, a leading producer of artisan, European-style bread, rolls, buns and soft pretzel products for top-tier retail and foodservice customers across North America. Financial terms were not disclosed.
“Backerhaus Veit has built a tremendous business by staying true to the foundations of traditional artisan bread making. The company has built enduring relationships with its customers and suppliers, and it is able to recreate high-quality products derived from old-world recipes, allowing it great success in today’s modern marketplace." Heather Smith Thorne, Swander Pace Capital Managing Director.
Forest City's Stakeholders approved its $11.4bn acquisition by Brookfield. (FS)
On July 30, 2018 Brookfield Asset Management and Forest City Realty Trust entered into an agreement under which a Brookfield real estate investment fund would acquire all of the outstanding shares of common stock of Forest City for $25.35 per share in an all-cash transaction valued at $11.4bn. The purchase price represents a premium of 26.6% over Forest City's closing share price of $20.03 on June 15, 2018. With the approval by Forest City stockholders, Forest City expects that the acquisition will be completed in December.
“Forest City has created a high-quality portfolio of operating and development assets over its 100-year history. We look forward to creating further value in these great assets on behalf of our limited partners.” Brian Kingston, Brookfield Property Group CEO.
Forest City was advised by Lazard, Goldman Sachs, Sullivan & Cromwell, and Wachtell, Lipton, Rosen & Katz. Brookfield was advised by BofA Merrill Lynch, Barclays, BMO Capital Markets, Citigroup, Deutsche Bank, RBC Capital Markets, The Toronto-Dominion Bank, Moelis & Company, Skadden, Arps, Slate, Meagher & Flom, Weil, Gotshal & Manges, and Torys.
Financing will be provided by BofA Merrill Lynch, Barclays, BMO Capital Markets, Citigroup, Deutsche Bank, RBC Capital Markets and The Toronto-Dominion Bank.
German company SAP opposed suggestions that it overpaid for Qualtrics, a US-based global pioneer of the experience management software. SAP bought Qualtrics on the eve of the company’s planned stock market listing, which had been heavily oversubscribed and would have valued the business at about $6bn.
SAP finance chief Luka Mucic said on Friday that the deal came together in only four weeks but SAP’s leadership examined it seriously and quickly concluded it was a good fit.
Qatalyst Partners and Goodwin Procter advised Qualtrics, while JP Morgan and Jones Day advised SAP.
Drug developer Tesaro explores a sale.
Waltham, Massachusetts-based cancer treatment developer, Tesaro Inc., which has a market capitalisation of $1.92bn, is exploring a sale and is working with financial advisers after receiving takeover interest, Bloomberg reported on Friday. Shares of the company rose as much as 44% in response to the rumours.
Tesaro has been an object of takeover interest from other drug producers, including Swiss firm Roche Holding AG, which was rumored to make an offer last July.
GE Capital sold $1.5bn health care equipment portfolio to TIAA.
The portfolio was sold as part of a $25bn reduction in GE’s assets, which were built up as the division financed sales of GE aircraft engines, locomotives, power plants and other products. TIAA said the portfolio it bought includes loans and leases to around 1,100 hospitals and 3,600 physician practices and diagnostic and imaging centres across the United States.
“With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings,” Trevor Schauenberg, CEO of GE Capital Industrial Finance, said in a statement.
LyondellBasell closing in on binding offer for Brazil's Braskem.
LyondellBasell, the largest licensor of polyethene and polypropylene technologies, is discussing the extension of a long-term naphtha supply contract with Petroleo Brasileiro SA, which is seen as pivotal to valuing Braskem. Talks between the companies are expected to finish over the next days, according to a Reuters report.
A binding offer could be delivered as soon as the end of this month and would include cash and shares.
