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AMERICAS
First Advantage, a provider of employment background screening, identity, and verification solutions, completed the acquisition of Sterling Check, a provider of background screening and identity services, for $2.2bn.
“We are thrilled to welcome Sterling’s talented team to First Advantage as we bring together our businesses and shared cultural attributes to meet the needs of our customers and deliver value for our shareholders. With a common focus on exceptional customer service and a commitment to delivering high-quality, cost-effective solutions, we will be able to enhance our value proposition by helping customers hire smarter, onboard faster, and protect their most important assets: people,” Scott Staples, First Advantage Chief Executive Officer.
Sterling Check was advised by Citigroup, Goldman Sachs, Fried Frank Harris Shriver & Jacobson and Joele Frank (led by Eric Brielmann and Michael Freitag). First Advantage was advised by BMO Capital Markets, Bank of America, Barclays, Citizens M&A, HSBC, JP Morgan, Jefferies & Company, KKR Capital Markets, RBC Capital Markets, Stifel, Wells Fargo Securities, Simpson Thacher & Bartlett (led by Elizabeth Cooper and Mark Viera) and FGS Global (led by Hannah Dunning).
Oneok, a midstream service provider, completed the acquisition of Medallion Midstream, a privately held crude gathering and transportation system, from GIP, a private equity firm, for $2.6bn.
"Oneok has a longstanding reputation as being intentional in building a premier energy infrastructure company, and today's transaction further solidify that status by adding complementary assets that allow us to continue expanding and extending our value chain," Pierce H. Norton II, Oneok President and CEO.
Oneok was advised by Bank of America, Goldman Sachs, JP Morgan, Perella Weinberg Partners, Kirkland & Ellis and Joele Frank (led by Andrew Brimmer). GIP was advised by RBC Capital Markets, Santander, Latham & Watkins (led by Kevin M. Richardson, Ryan J. Lynch and Bill Finnegan), Vinson & Elkins and Brunswick Group.
Oneok, a midstream service provider, completed the acquisition of a 43% stake in EnLink Midstream, an independent midstream energy services company, from GIP, a private equity firm, for $3.3bn.
"Oneok has a longstanding reputation as being intentional in building a premier energy infrastructure company, and today's transactions further solidify that status by adding complementary assets that allow us to continue expanding and extending our value chain," Pierce H. Norton II, Oneok President and CEO.
EnLink Midstream was advised by RBC Capital Markets. Oneok was advised by TPH&Co, Goldman Sachs, JP Morgan, Perella Weinberg Partners and Kirkland & Ellis. GIP was advised by Greenhill & Co, Scotiabank, Latham & Watkins and Vinson & Elkins.
PE-backed Jade Biosciences, a biotechnology firm, agreed to merge with Aerovate Therapeutics, a clinical-stage biopharmaceutical company. Private equity firms including Fairmount, Venrock Healthcare Capital Partners, and a large investment firm, with participation from Deep Track Capital, Braidwell, Driehaus Capital Management, Frazier Life Sciences, RA Capital Management, Great Point Partners, Soleus Capital, Avidity Partners, Blackstone Multi-Asset Investing, Logos Capital, Deerfield Management, OrbiMed, and Samsara BioCapital led a $300m in Jade Biosciences.
“Jade is focused on developing breakthrough treatments for autoimmune diseases, including JADE-001, which modulates plasma cell survival and immunoglobulin production, and which we plan to initially develop for the treatment of IgA nephropathy. As the fourth antibody therapeutics venture founded on assets licensed from Paragon Therapeutics, a leader in antibody discovery, Jade leverages Paragon’s proven success in developing innovative biologics. This merger, coupled with strong financial backing, positions us well to advance our programs into clinical development and make meaningful progress in treating autoimmune diseases," Tom Frohlich, Jade Biosciences CEO.
Aerovate Therapeutics is advised by Lucid Capital Markets, Wedbush Securities and Goodwin Procter. Jade Biosciences is advised by Jefferies & Company, Stifel, TD Cowen, Wedbush Securities and Gibson Dunn & Crutcher. Financial advisors are advised by Cooley.
Lockheed Martin, a global security, defense and aerospace contractor, completed the acquisition of Terran Orbital, a leader of satellite-based solutions primarily supporting the aerospace and defense industries, for $450m.
"The addition of Terran Orbital's spirit of entrepreneurship to the scale of Lockheed Martin means there is a great deal of opportunity to keep pushing the boundaries of technology and space solutions together. We welcome their ingenuity and dedication to ensuring mission success and we've always valued those aspects of our working relationship. Together, we can deliver our combined innovation and services with a greater sense of urgency to support our customers' commercial, civil and national security needs," Robert Lightfoot, Lockheed Martin President.
Terran Orbital was advised by Jefferies & Company, Lincoln International and Akin Gump Strauss Hauer & Feld (led by Jonathan Pavlich and Stuart Leblang). Lockheed Martin was advised by Citigroup, Hogan Lovells and Joele Frank.
Gemspring Capital, a private equity firm, completed the acquisition of Shrieve Chemical, an organic and inorganic industrial chemicals distributor. Financial terms were not disclosed.
"With Gemspring's operational and financial resources, we have entered new markets, added key personnel, bolstered our capabilities and significantly enhanced our product offering to customers while maintaining exceptional service. We are excited to extend our partnership with Gemspring and secure additional capital to continue growing organically and through strategic acquisitions," George Fuller, Shrieve Chemical CEO.
Gemspring Capital was advised by Jefferies & Company, Moelis & Co and Kirkland & Ellis. Shrieve Chemical was advised by StepStone (led by Adam Johnston) and Goodwin Procter.
Siemens, a German multinational technology conglomerate, agreed to acquire Altair, an American information technology company, for $10.6bn.
“Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world's most complete AI-powered design and simulation portfolio,” Roland Busch, Siemens President and CEO.
CleanSpark, a bitcoin miner, completed the merger with GRIID Infrastructure, a vertically integrated, bitcoin self-mining company, in a $155m deal.
"I'm pleased to announce the completion of our acquisition of GRIID Infrastructure, a strategic move that allows us to grow our Bitcoin mining capacity in the state of Tennessee, which we intend to build to over 400 MW in the coming years. Moreover, this adds significant geographic and power supply diversity through expansion in the Tennessee Valley Authority service territory, providing us with additional operational flexibility," Zach Bradford, CleanSpark CEO.
GRIID Infrastructure was advised by Lincoln International (led by Chris Gregory) and Troutman Pepper. CleanSpark was advised by Cozen O'Connor.
AMETEK, a designer and manufacturer of electronic instruments and electromechanical devices, completed the acquisition of Virtek Vision International, an automation machinery manufacturing company, from American Industrial Partners, a private equity firm. Financial terms were not disclosed.
“We are excited to welcome Virtek to the AMETEK family. Virtek is an outstanding acquisition and an excellent strategic fit with our Creaform business. Their strong technology capabilities nicely complement Creaform enabling a broader suite of automated 3D scanning and inspection capabilities supported by advanced software and algorithms," David A. Zapico, AMETEK Chairman and CEO.
American Industrial Partners was advised by Ropes & Gray.
ACR IV Frontier, an investment fund, agreed to acquire 50% stake in Tenaska Frontier Partners, a company owning and operating 830 megawatt gas-fired power station in Texas, from J-Power USA, a company owning, developing and managing power facilities in the North America, for $155m.
Divesting a 50% stake in the company is a part of a reshuffle of J-Power assets portfolio to improve capital efficiency and shift to renewable energy.
KKR’s $20bn goal tests investor appetite for buyout funds. (FS)
Private equity pioneer KKR is testing whether investors still crave the asset class after more than two years of sluggish dealmaking squeezed returns across the industry, Bloomberg reported.
The firm recently began gathering cash for its latest North America buyout fund, aiming to raise $20bn and offering incentives to investors who sign up early and with a sizable check.
Blackstone nears $5bn Rogers investment. (FS)
Private equity firm Blackstone is bidding CAD7bn ($5.03bn) for a minority stake in telecom and media company Rogers Communications's cellphone infrastructure business, Reuters reported.
Last week, the Canadian company Rogers announced the deal, which would lessen its debt burdens, but did not disclose the name of the investor. Under the deal, Rogers will sell a minority equity interest in a portion of its wireless backhaul transport infrastructure.
ConocoPhillips explores sale of Permian shale assets worth over $1bn.
ConocoPhillips is exploring a sale of some of its shale operations in the Permian Basin worth more than $1bn, two years after an unsuccessful attempt to find a buyer for the same assets, Reuters reported.
The Houston, Texas-based oil and gas producer is looking to shed some non-core assets as it prepares to close its $22.5bn takeover of Marathon Oil by year end. It is set to assume about $5.4bn of Marathon's debt as part of the deal, and has outlined plans to raise $2bn through asset sales.
US plans $825m investment for New York semiconductor R&D facility.
The Biden administration on October 31 announced an $825m investment in a new semiconductor research and development facility in Albany, New York, aiming to boost high-tech manufacturing and reduce reliance on foreign technology.
The New York facility will be expected to drive innovation in EUV technology, a complex process necessary to make semiconductors, Reuters reported.
Comcast weighs spin-off of declining cable networks after strong third quarter.
Comcast said it was considering spinning off its cable networks that include CNBC and MSNBC into a separate company, as the media industry grapples with a decline in traditional TV viewership due to cord-cutting by consumers shifting to streaming, Reuters reported.
The potential spin-off would exclude the NBC broadcast network and the Peacock streaming service. The company, however, is interested in seeking a partner for Peacock to help grow that business, Comcast president Mike Cavanagh said on October 31.
Berkshire Partners announces close of Fund XI with approximately $7.8bn commitments. (FS)
Berkshire Partners, a Boston-based private equity firm focused on the middle market, today announced the close of Berkshire Fund XI with approximately $7.8bn in capital commitments, making it Berkshire’s largest fund since the firm’s inception in 1986. Fund XI was meaningfully oversubscribed, which the firm believes underscores investors’ support for the firm’s multi-sector middle market investment strategy.
“We are grateful to have received this level of support from a terrific group of sophisticated, global investors, both existing and new, as demand exceeded our original target fund size,” Mike Ascione, Berkshire Partners Managing Director.
Former Goldman partners raise $1.6bn for new private credit firm. (FS)
Private-credit firm 5C Investment Partners, founded by former Goldman Sachs partners, has secured $1.6bn to launch its direct-lending initiative, targeting senior direct-lending deals.
The report cites the company’s founders and Co-Managing Partners, Tom Connolly and Michael Koester, as confirming that the funding includes leverage and a co-investment programme, with Liberty Mutual Investments and Michael Dell’s family office, DFO Management, as anchor partners.
EMEA
Origin Enterprises, a sustainable land use solutions company, completed the acquisition of specialist ecology businesses Brooks Ecological and GE Consulting Services. Financial terms were not disclosed.
"We look forward to welcoming the Brooks Ecological and GE Consulting teams into the Origin Group, as excellent specialist businesses which further strengthen the broad range of ecology, arboriculture, landscape and environmental contracting services we provide within our Environmental business," TJ Kelly, Living Landscapes Divisional Managing Director.
Origin Enterprises was advised by A&L Goodbody, Berenberg, Davy Corporate Finance and FTI Consulting.
Potel et Chabot, a high-end event catering services provider, agreed to acquire Dalloyau, a Paris-based food company. Financial terms were not disclosed.
"The group is thus strengthening its position as the leading French player in catering and luxury event gastronomy, recognized for its expertise, its gastronomic offering, and a unique art of service and staging. We are very pleased that our project convinced the court. It is ambitious and promising for the future of a company whose historic know-how that has made its reputation for centuries we want to once again shine," Amir Nahaï, Potel et Chabot President.
Dalloyau is advised by Dentons. Potel et Chabot is advised by Bredin Prat.
NewDay, a financial services company specialising in providing consumers' credit products, agreed to acquire cards portfolio of Argos, a UK general merchandise retailer, from J Sainsbury, a British supermarket chain, for £720m ($935m).
“We look forward to welcoming AFS’ two million customers to NewDay, where they will benefit from our increased digital offering and award-winning customer service, and we are fully focused on ensuring a smooth transition for these customers. This is a great opportunity to forge a partnership with one of the UK’s leading retailers as well as accelerate the growth of our Credit business, in line with our strategic objectives,” John Hourican, NewDay CEO.
J Sainsbury is advised by UBS.
Equitix, a private equity firm, agreed to acquire an 8.33% stake in Cornerstone, a mobile and digital infrastructure provider, from Virgin Media O2, a telecommunications company, for £186m ($242m).
“This additional minority stake sale follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset. Equitix is another strong partner to have onboard that clearly sees the long-term value in Cornerstone at a time when we are investing billions of pounds to enhance 4G coverage and bring 5G to new areas of the country," Lutz Schüler, Virgin Media O2 CEO.
Equitix is advised by Nomura.
Houlihan Lokey, an American investment bank offering financial services, completed the acquisition of PSL, a UK-based structured credit valuation and analytic services provider. Financial terms were not disclosed.
“We are delighted to join forces with Houlihan Lokey, a recognised leader with a rich history in financial valuation services. By integrating PSL’s technology-driven solutions with Houlihan Lokey’s globally respected Portfolio Valuation and Fund Advisory Services team, we can provide innovative and customised services on a much larger scale. Together, we are uniquely positioned to offer clients enhanced analytical capabilities and superior insights into the valuation of complex portfolios,” Fraser Malcolm, PSL Co-Founder and CEO.
US chipmaker Nvidia will have to seek EU antitrust clearance for its proposed acquisition of AI startup Run:ai, because it threatens competition in the markets where the companies operate, Reuters reported.
The move by the EU antitrust enforcer may require Nvidia to offer concessions to secure its approval for the deal. Regulators on both sides of the Atlantic have recently increased their scrutiny of tech deals, especially by tech giants.
Vanderlande, a material handling and logistics automation company, agreed to acquire Siemens Logistics, an airport logistics services provider, from Siemens, a German multinational technology conglomerate, for €300m ($325m).
"Siemens Logistics' innovative approach and robust business model align perfectly with Vanderlande's vision for the future. Its forward-thinking and innovative mindset also proves its ability to adapt to changing market dynamics. Our customers will benefit from a broader range of solutions and services, enabling them to address their challenges more effectively," Andrew Manship, Vanderlande President and CEO.
Bain-backed Esure draws interest from Aviva, Allianz. (FS)
Aviva and Allianz are among potential bidders for Britain’s home and motor insurance firm Esure Group, Bloomberg reported.
Sampo, which owns British general insurer Hastings Group, and Belgium-based Ageas have also indicated early interest in the asset. Esure’s owner Bain Capital is working with advisers to gauge interest in the business, which could fetch about £1.5bn ($1.9bn).
Global Switch exploring $2bn sale of stake in UK business.
Global Switch Holdings is exploring the sale of a majority stake in its UK business, which could be valued at about £1.5bn ($1.95bn) in a deal, Bloomberg reported.
The data center operator is working with UBS for the potential stake sale that could bring in new capital for business expansion. They are targeting mostly financial investors for the deal.
Saudi pension fund set to back Brookfield’s new mideast venture. (FS)
Saudi Arabia’s General Organization for Social Insurance is set to back Brookfield Asset Management’s new Middle East venture, which has also drawn the kingdom’s sovereign wealth fund as an anchor investor. Hassana Investment, the investment arm of the pension fund, plans to allocate $500m, matching Brookfield’s own commitment, Bloomberg reported.
The Public Investment Fund has already committed to come in as an anchor investor for Brookfield Middle East Partners, which could grow to at least $2bn.
Siemens could reduce stakes in Healthineers.
Siemens could sell off part of its stakes in Siemens Healthineers, Siemens Energy and Fluence to help fund its $10.6bn Altair acquisition, Chief Financial Officer Ralf Thomas said on October 31, Reuters reported.
Siemens currently holds 75% in medical equipment maker Siemens Healthineers and 17% in Siemens Energy, as well as a 31% stake in energy storage company Fluence. "We have substantial financial potential from the sale of shares in listed entities," Thomas told analysts.
Astaris pauses stake sale in multibillion-dollar Turkey road.
Italy’s Astaris has paused the sale process of its minority stake in a multibillion-dollar toll road and suspension bridge project in Turkey as bids were lower than it expected, Bloomberg reported.
All three bids the company received for its 18.1% stake were significantly lower than the €405m ($440m) Astaris had pegged as the value of its holding.
Societe Generale taps Sabadell’s Alvear as new CFO amid management reshuffle. (People)
Societe Generale shares jumped after the French bank said its quarterly results confirmed a rebound in its domestic retail business and shook up its executive ranks, WSJ reported.
The group named Banco de Sabadell’s Leopoldo Alvear as its next chief financial officer, replacing Claire Dumas, as part of a broader management reshuffle.
APAC
Coatue, a global investment manager focused on public and private companies, is set to lead a $1bn series B round in DigitalLand, a GDS subsidiary holding data center assets and operations outside mainland China, with participation from Baupost Group.
“Data centers are mission critical infrastructure to support the future of AI and cloud. We have been very impressed by the management team, and its capabilities to execute and expand the footprint of the business in such a short period of time. We are excited to work alongside management to expand GDSI into a global leading data center platform,” Philippe Laffont, Coatue Founder.
DigitalLand is advised by Morgan Stanley, White & Case and The Piacente Group (led by Brandi Piacente). Coatue is advised by Latham & Watkins.
JERA, a power generation company, completed the acquisition of a 15.1% stake in Scarborough gas field from Woodside, an Australian petroleum exploration and production company, for $1.4bn.
"Participation in the Scarborough Joint Venture is a key part of our strong and highly valued strategic relationship with JERA. That relationship reflects our shared view that gas will play an important role in the global energy transition for decades to come,” Meg O'Neill, Woodside CEO.
JERA was advised by Herbert Smith Freehills (led by Robert Merrick) and Kekst CNC (led by Jochen Legewie). Woodside was advised by Mitsubishi UFJ Morgan Stanley Securities.
Japanese lift maker Fujitec explores sale to private equity. (FS)
Japan’s Fujitec has held talks with private equity groups about a potential sale of the $2.7bn lift maker, in a move that may signal further consolidation in the $80bn global elevator industry, FT reported.
Fujitec, founded in Osaka in 1948, is working with UBS in Tokyo to find a buyer and has held talks with a number of private equity groups, including Sweden’s EQT. Other major international private equity groups that spoke to Fujitec in recent months did not move forward for various reasons, including price.
Chinese smartphone maker Honor announces new investors.
Chinese smartphone maker Honor announced on October 31 new investors that included China Telecom and a unit of CICC Capital, almost a year after it said it was planning an initial public offering. Honor, a former unit of Huawei Technologies, did not disclose the amount of the investment, Reuters reported.
Other backers include China's Cornerstone, the Shenzhen city government's SDG Group, and Jinshi Xingyao, an investment platform for Honor's channel partners.
Swiggy's $1.3bn listing battles curse of blockbuster IPOs in India.
Traders will be hoping that the festival of lights revives the bullish streak in stocks. Nifty is set for its worst monthly drop in over four years amid record selling by foreigners in October. Indian markets are shut on Friday for Diwali. Automakers will be in focus as investors position for the crucial October sales, Bloomberg reported.
Swiggy’s IPO may rhyme with history the history of large-sized initial public offerings in India is a grim one. Issues that raised more than $1bn have rarely delivered a meaningful listing day pop. Swiggy’s $1.3bn offering is showing signs of joining that list as the grey market price is only 6% above INR390 ($4.64), the upper end of the IPO’s price band. Besides, the 17% drop in rival Zomato’s shares over the last month and the dismal showing of Hyundai Motor India’s IPO could give retail investors some food for thought.
Online insurer Waterdrop mulls secondary listing in Hong Kong.
US-listed Waterdrop is looking at a secondary listing in Hong Kong as it seeks to expand its insurance business in the financial hub, Bloomberg reported.
The online insurance broker, which has overhauled its business model after regulatory changes in China, is looking at opportunities to do the listing in the city as soon as two years from now.
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