AMERICAS
French TGV high-speed train maker Alstom expects to secure approval from European Union by the end of the month for the $6.5bn acquisition of the rail unit of Bombardier.
By buying Montreal-based Bombardier’s train division, Alstom is seeking to create the world’s second largest train manufacturer to compete more effectively with Chinese leader CRRC, Reuters reported.
Alstom is advised by Mazars Corporate Finance, Rothschild & Co, Davies Ward Phillip, Societe Generale and Cleary Gottlieb Steen & Hamilton. Debt financing is provided by Credit Agricole, HSBC, and Societe Generale. CDPQ is advised by HSBC, Freshfields Bruckhaus Deringer and McCarthy Tetrault. Bombardier is advised by Citigroup, National Bank Financial, Rockefeller Capital Management, UBS, Jones Day, Joele Frank, and Norton Rose Fulbright.
Network gear maker Cisco Systems and Acacia Communications said China was yet to approve their proposed acquisition deal, already cleared by the United States, Germany and Austria.
The acquisition has been under regulatory review from the State Administration for Market Regulation of the People’s Republic of China, the only remaining closing condition of the deal. The $2.84bn deal was expected to close during the second half of Cisco’s full-year 2020.
Cisco Systems is advised by RBC Capital Markets, Fenwick & West and Morgan Stanley. Acacia Communications is advised by Wilmerhale and Goldman Sachs. Financial advisors are advised by White & Case.
Kainos Capital-backed Olde Thompson, a provider of private label and branded spices and seasonings, completed the acquisition of Gel Spice, a family-owned importer and manufacturer of spices, seasoning, and bakery ingredients to both the retail and foodservice channels. Financial terms were not disclosed.
"Olde Thompson is thrilled to partner with Gel to expand our platform. Through the addition of Gel and the combination of our sales forces, we broaden our reach by adding customers within the retail, foodservice, bakery, industrial and export channels while also increasing our product offerings to include dry mixes, extracts and single serve seasonings for meal kits. We are now the largest private label focused spice company dedicated to providing complete category solutions," Jeff Shumway, Olde Thompson CEO.
Kainos Capital was advised by Kekst CNC.
Two private equity firms KKR and Capitol Peak Partners completed the acquisition of Borden Dairy, a dairy processor and distributor, for $340m.
"Over the past 163 years, Borden defined its well-recognized and reputable brand by partnering with America's dairy farmers and leading retailers to provide American families with delicious and nutritious products. I am very optimistic about Borden's future and excited about the opportunity to lead this iconic dairy Company into a bright new chapter focused on serving customers and growing the business profitably," Gregg Engles, Borden New CEO.
Prysmian Group, a manufacturer of energy and telecom cable systems, agreed to acquire EHC Global, a manufacturer and supplier of escalator handrails, rollers, elevator belts, strategic components and integrated solutions for the vertical transportation industry, for $97m. The completion of the transaction is expected to occur during the fourth quarter of 2020.
The acquisition of EHC Global is in line with Prysmian Group’s strategy to grow and reinforce its value-added businesses. EHC Global is a complementary add-on to Prysmian’s Draka Elevator business, broadening its product portfolio to include a wide range of escalator products and services.
NearU HVAC Services, a technician- and customer-centric provider of residential and light commercial HVAC services, agreed to acquire Bass Air Conditioning, which provides recurring maintenance, repair, and installation services for HVAC equipment. Financial terms were not disclosed.
"Bass Air Conditioning is an iconic brand with nearly seven decades providing superior customer service in eastern North Carolina. Notably, the company's in-house training facilities will serve as a foundation to grow NearU's comprehensive training school in the Fayetteville market. In concert with our existing team at Mark-Air Air Conditioning & Heating, also based in Fayetteville, we look forward to significantly expanding the reach of our customer services and the career opportunities of our team members within each company. NearU is committed to taking the incredible legacy of Bass to greater heights and we welcome the customers and employees of Bass to the rapidly growing NearU family," Ashish Achlerkar, NearU's Founder and CEO.
Geneva Supply, which provides brand strategy, digital marketing services, and supply chain solutions for Amazon and e-commerce platforms, completed the acquisition of Cascio Interstate Music, a musical instrument dealer. Financial terms were not disclosed.
"One of the most exciting things about this acquisition is that we get to elevate a legendary Wisconsin business alongside us by delivering a range of musical products without geographical or distribution limitations at the same value. Top musical instrument manufacturing companies and brands now can find and channel new customers with a trusted and valued partner," Jeff Peterson, Geneva Supply Co-Founder and CEO.
Ampersand Capital Partners-backed Nexelis, a specialty provider offering high-quality preclinical and clinical immunology laboratory services, agreed to acquire AIT Bioscience, a provider of advanced assay development and laboratory testing services in the infectious, oncologic, and metabolic diseases fields. Financial terms were not disclosed.
"This is our fourth acquisition since 2018 and we are excited for AIT Bioscience to join the Nexelis growth story. AIT Bioscience has a scientifically strong team and operates within a geography that we see as an attractive location for future growth. AIT Bioscience's advanced testing capacity will help Nexelis further bolster its service offering in the bioanalytical segment and maintain competitive lead and turnaround times," Benoit Bouche, Nexelis President and Chief Executive Officer.
Pershing Square Tontine raises $4bn in the IPO. (FS)
Billionaire investor Bill Ackman backed Pershing Square Tontine Holdings has raised $4bn in its US initial public offering, in the largest listing ever by a special purpose acquisition company, Reuters reported.
The SPAC said it sold here 200m units at $20 each and also entered a forward purchase agreement with Pershing Square Funds for a minimum of $1bn units, each comprising one Class A share and one-third of one redeemable warrant, at a price of $20 per unit.
Carlyle Co-CEO Youngkin to exit. (FS, People)
Carlyle Group co-Chief Executive Officer Glenn Youngkin is stepping down after less than three years at the helm, handing sole control of the private equity giant to Kewsong Lee in the midst of the coronavirus pandemic.
Youngkin, 53, who joined Carlyle in his 20s and was long groomed by its founders, decided to give up his post and will depart at the end of September to focus on public service.
The abrupt exit leaves the $217bn alternative asset manager squarely under the control of Lee, a skilled dealmaker who joined in 2013 from Warburg Pincus.
Warburg Pincus backtracks on investing in the energy sector. (FS)
Warburg Pincus is telling investors it will not make any deals linked to fossil fuels from its next flagship fund, joining other private-equity firms that are reducing their investment presence in the oil-and-gas sector, FN reported.
“Warburg Pincus will begin a transition away from investing in companies that are dependent on hydrocarbon pricing in the core global fund,” informer.
EMEA
EU antitrust regulators have halted their investigation into Fiat Chrysler and PSA’s proposed merger while waiting for the carmakers to provide requested data, Reuters reported.
“This procedure in merger investigations is activated if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them,” the European Commission.
Fiat Chrysler is advised by Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JP Morgan, UBS, d'Angelin & Co, Darrois Villey Maillot Brochier, De Brauw Blackstone Westbroek, Legance, Loyens & Loeff, Sullivan & Cromwell, Community Group, Image Sept and Sard Verbinnen & Co. Financial advisers are advised by Cleary Gottlieb Steen & Hamilton and Macfarlanes. PSA is advised by Mediobanca, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, Bredin Prat, Cabinet Bompoint, Linklaters and Stibbe. Peugeot family is advised by Zaoui & Co. Exor is advised by Lazard. BPIFrance is advised by Willkie Farr & Gallagher.
Qiagen announced the publication of its Supplemental Reasoned Position Statement in response to the amended offer document published by Thermo Fisher Scientific. The offer document relates to the recommended offer by Thermo Fisher to fully acquire all issued ordinary shares in Qiagen for an increased offer price of $49.3 per Qiagen share in cash, as announced on July 16, 2020.
The Supplemental Reasoned Position Statement, together with the Reasoned Position Statemen provides in detail the underlying financial and non-financial aspects and the overall circumstances which the Managing Board and Supervisory Board considered when reaffirming their unanimous recommendation of the offer and their unanimous recommendation that all Qiagen shareholders accept and tender all of their Qiagen shares.
Qiagen is advised by Barclays, Goldman Sachs, Lazard, Moelis & Co, De Brauw Blackstone Westbroek, Linklaters, and Mintz Levin. Barclays and Goldman Sachs are advised by Sullivan & Cromwell. Thermo Fisher Scientific is advised by JP Morgan, Morgan Stanley, Hengeler Mueller, NautaDutilh, Wachtell Lipton Rosen & Katz, Freshfields Bruckhaus Deringer, Joele Frank and Brunswick Group. JP Morgan and Morgan Stanley are providing debt financing, and are advised by Simpson Thacher & Bartlett and Gleiss Lutz.
Spain’s Industry minister Reyes Maroto said that IAG member Iberia and Air Europa, two carrier airline of Spain, should look into the advantages and disadvantages of their plan to merge that was announced before coronavirus-hit airlines worldwide, Reuters reported.
In June, the Chief Executive Officer of International Consolidated Airlines Group said that the company was reviewing its planned $1.1bn acquisition of Air Europa because of the harsh economic climate caused by Covid-19.
Air Europa is advised by Uria Menendez. IAG is advised by KPMG, Morgan Stanley and Garrigues. Globalia is advised by Ernst & Young and Linklaters.
European medical cannabis company Emmac Life Sciences has agreed to go public through a merger with Andina Acquisition III, a blank cheque company. Financial terms were not disclosed.
The companies have signed a non-binding letter of intent for a combination in which Emmac would be listed on the Nasdaq stock market.
"The Andina team possesses significant experience assisting companies like ours and will add significant value to us as a strategic partner. As a fully-integrated company with strength across the value chain, we are proud of what EMMAC has already accomplished in maximizing value from upstream and downstream assets, while controlling quality, supply, distribution and marketing in each region. Our executive team is eager to begin work with Andina as we continue to aggressively pursue opportunities within the European cannabis market," Antonio Costanzo, Emmac CEO.
Emmac is advised by Stifel, Winston & Strawn, and Buchanan. Andina is advised by Cowen & Company, Ellenoff Grossman & Schole, and ICR.
Cubitt Trade Holdings, a special acquisition and holding company, agreed to acquire HWSI Realisation Fund, an investment company for $101m.
"Following HWSIL entering into managed wind-down earlier this year, it was expected that cash would be returned to HWSIL Shareholders as loans matured or were realised. The Offer provides HWSIL Shareholders with a cash alternative at an attractive value in a significantly shorter timeframe than possible under a managed wind-down. It eliminates any risks associated with an ongoing exposure to HWSIL's portfolio and any challenges associated with managing HWSIL during the latter stages of the managed wind-down process. In aggregate, with the $24 per HWSIL Share returned to HWSIL Shareholders in April 2020, the offer will result in HWSIL Shareholders having received $0.9 per Share since HWSIL adopted a managed wind-down strategy and will provide a clean exit for HWSIL Shareholders through a single transaction," David Warr, HWSIL Chairman of the Board.
HWSIL is advised by Winterflood Investment Trusts, Bryan Cave Leighton Paisner, and Carey Olsen. Cubitt Trade is advised by finnCap and Crowell & Moring.
Rubis Terminal, a joint venture between I Squared Capital, an international infrastructure fund manager, and Rubis, a French listed company specializing in the storage of petroleum products, agreed to acquire TEPSA, a Spain-based leading bulk liquid storage operator, from Petrofrance, which operates four coastal terminals. Financial terms were not disclosed.
“This acquisition shows the strength of the partnership between a large industrial group and an independent, global infrastructure investment manager. We are growing the size of Rubis Terminal by a third, while diversifying its activity, and opening up to other very promising markets. This is just the start: we have great ambitions for our French company, Rubis Terminal, to join the world leaders in the sector in the months and years to come," Sadek Wahba, I Squared Capital Chairman and Managing Partner.
Rubis Terminal is advised by Brunswick Group. Petrofrance is advised by Rothschild & Co.
KfW Group, a German state-owned development bank, GlaxoSmithKline, a pharmaceutical company and Qatar Investment Authority, led a $640 financing round in CureVac, a clinical-stage biopharmaceutical company.
The financing round included previously announced equity investments by the German government via the Kreditanstalt für Wiederaufbau with $343m and GSK with $171m as well as additional new equity investments from Qatar Investment Authority and a group of existing and new investors with approximately $126m.
“We are delighted to partner with GSK. With this collaboration, we are gaining a world-class partner whose expertise and global footprint will allow us to further develop and translate the value of our platform into potential products for the world,” Franz-Werner Haas CureVac CEO.
GlaxoSmithKline is advised by Allen & Overy.
GSH Private Capital, a private equity firm, completed the acquisition of Getronics, a software solutions provider, for $230m.
“We’re proud to be custodians of this venerable business – we have thousands of colleagues looking to this new management team for consistency and continuity,” Kenton Fine, GSH Executive Chairman.
Getronics was advised by Freshfields Bruckhaus Deringer.
Silver Lake Partners, a private equity firm, agreed to acquire Meilleurtaux, a provider of financial analytics services, from Goldman Sachs for $803m.
The acquisition by Silver Lake marks the third time it will pass through private equity hands. In 2017, the buyout unit within Goldman Sachs acquired a majority stake in the business, which was previously owned by London-based Equistone Partners which used a series of bolt-on deals to expand the company, FT reported.
EDGE Group, the Abu Dhabi based advanced technology group for defence and beyond, agreed to acquire the remaining 40% stake in AMMROC, a provider of military Maintenance, Repair, and Overhaul services in the Middle East region, from Lockheed Martin, American aerospace, defense, arms, security, and advanced technologies company. Financial terms were not disclosed.
“Lockheed Martin and Sikorsky have played a pivotal role in developing the UAE’s MRO capabilities. As EDGE assumes full ownership of AMMROC and continues to pursue the military and civil MRO market with specialist skills, we recognise that such achievements are the outcome of our international partnerships. Going forward, we will continue to explore emerging business opportunities with Lockheed Martin and Sikorsky to further strengthen our relationship," Faisal Al Bannai, EDGE CEO & Managing Director.
Saudi Arabia’s Al Othaim family said to plan IPO for malls unit. (FS)
Saudi Arabia’s Al Othaim family plans to sell shares in its malls business in a deal that could value the company at between $1.5bn and $2bn, Bloomberg reported.
Othaim Investment, which operates malls and entertainment centers in the kingdom, appointed GIB Capital to advise on the local initial public offering. The sale may happen in the first half of 2021.
Italy court rejects Vivendi request to suspend Mediaset's stake freeze.
An Italian administrative court has rejected a request by France’s Vivendi to suspend a ruling which forces it to freeze two-thirds of its stake in Italian broadcaster Mediaset, Reuters reported.
Vivendi, which owns 23.9% of phone incumbent Telecom Italia, has been at loggerheads with Mediaset since pulling out of a deal to buy its pay-TV unit in 2016 and then building a hostile 28.8% stake.
CVC Credit closes second CLO fund at $400m. (FS)
CVC Credit Partners has closed its latest collateralised loan obligation fund at $400m, FN reported.
The fund, Apidos XXXIII, is the second CLO fund private equity firm CVC’s credit arm has closed in the past month. In June, the firm announced the closing of Cordatus XVII, which raised $333m.
Philips courts Asian rivals and PE firms on appliance sale. (FS)
Royal Philips has reached out to Chinese rivals to gauge their interest in acquiring its home appliance unit, which could fetch as much as $4bn, Bloomberg reported.
The Amsterdam-based company has approached fellow white goods manufacturers Haier Group and Midea Group ahead of a formal sale process expected to start in the fourth quarter.
Eni seeks energy asset sales in Norway and Congo.
Eni is looking to sell assets in Norway and the Republic of Congo as oil’s slump prompts companies across the industry to rein in spending, Bloomberg reported.
In Norway, Eni’s majority-owned Var Energi hopes to sell the Jotun floating production, storage and offloading vessel, or FPSO. In Congo, Eni is working with advisers to sell a package of operated assets.
UK’s first regulated crypto hedge fund set to close down. (FS)
A crytopcurrency hedge fund set up by former BlackRock executives at the height of the boom for digital money has closed down a year after receiving regulatory approval, FN reported.
Prime Factor Capital, the first cryptocurrency-focused hedge fund to be given a licence by UK regulators, has struggled to attract investors since launching in 2018. Its founders are now in the process of dismantling the business.
Hedge funds are betting against Hammerson. (FS)
British shopping mall operator Hammerson was the most shorted UK-listed company in July, with 13.9% of its stock held short by nine investment firms, FN reported.
Short sellers place bets on shares that they expect to fall in price. They pay a fee to borrow shares in a company and then sell them in the hope of buying them back at a lower price and pocketing the profit.
Hammerson, which owns some of Britain’s biggest shopping centres including London’s Brent Cross, has been hit hard by the pandemic, which has closed thousands of retail stores, forcing some into administration. Rival shopping centre giant Intu Properties called in administrators in June after failing to secure a deal with creditors to restructure its finances.
APAC
Canadian pension fund OMERS agreed to acquire a 7% stake in Warburg Pincus-backed logistics real estate developer ESR Cayman for $506m.
With the recent acquisition, OMERS' stake stands at 15.96% of the total outstanding shares.
Nestle adds Chinese water brands to possible disposals.
Nestle is considering selling a bottled water business in China as the world’s largest food company sheds underperforming brands.
Nestle said it is considering a number of options including a sale. The unit, which sells a locally sourced version of Nestle Pure Life and Da Shan Yunnan Spring, has annual sales of about $53m and probably could fetch a similar price, estimated MainFirst analyst Alain Oberhuber. Nestle faces strong domestic competition in that market.
Nestle has been planning to slim down both in China and in bottled water. The company is said to have narrowed the list of bidders for its ailing Chinese business Yinlu Foods Group, which may fetch more than $400m.
ByteDance to invest in the education technology business. (FS)
A senior executive at TikTok owner ByteDance said the company plans to invest "a huge amount" of capital into its newly-established education technology business but warned that the unit will be unlikely to profit in the next three years, NY Times reported.
Beijing-based ByteDance has made education technology one of its top priorities alongside short video app TikTok, which is facing scrutiny in Washington over suspicions China could force the company to turn over user data.
Nasdaq and Singapore exchange in pact to smooth dual listings.
Singapore Exchange and Nasdaq will extend their partnership to help companies access capital in both jurisdictions, Bloomberg reported.
The increased cooperation will include a streamlined framework for issuers seeking a secondary listing on Singapore Exchange, SGX said in a statement. The two exchanges are deepening their partnership at a time when the tensions between the US and China have escalated, the mainland has cemented its control over Hong Kong and as the competition between Asia’s two financial hubs has increased.
The framework allows documents required for the SGX listing to be based on information contained in the US listing and subsequent filing documents to the US Securities and Exchange Commission and/or Nasdaq, together with additional disclosure in compliance with Singapore’s rules.
Lufax seeks US IPO. (FS)
Lufax, one of China’s largest online wealth management platforms backed by financial giant Ping An Insurance, is seeking a US initial public offering as early as this year, Reuters reported.
Lufax is currently preparing the confidential filing for the IPO. It has not decided how much to raise in the offering or the valuation.
Didi Chuxing currently has no plans for IPO.
China’s dominant ride-hailing firm Didi Chuxing said that an IPO was not its top priority, and the company did not have any related plan for the moment, Reuters reported.
Chinese financial magazine Caixin reported that Didi was making preparations for an IPO in Hong Kong.
Supalai completed an investment of $53m in Katalia. (RE)
Supalai, a REIT company, completed an investment of $53m in Australia-based property group Stockland's master-planned community Katalia, taking a 50% interest in the project.
"Partnerships like this enhance our project returns and balance sheet capacity, to invest in other growth opportunities across our diversified portfolio including our workplace and logistics development pipeline, and further re-stocking our residential pipeline," Andrew Whitson, Stockland CEO.
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