AMERICAS
South Korea's antitrust watchdog approved Danaher's proposed $21.4bn acquisition of General Electric's biopharma division on condition that they sell certain assets to address monopoly concerns.
The US medical equipment maker Danaher got conditional EU approval in December for the deal after agreeing to divest five businesses to address worries about competition.
Danaher is advised by Barclays, Kirkland & Ellis, and Sard Verbinnen & Co. General Electric is advised by Citigroup, Goldman Sachs, JP Morgan, PJT Partners, Clifford Chance, and Paul Weiss Rifkind Wharton & Garrison.
Freeman Spogli, a private equity firm, completed the acquisition of Galco Industrial Electronics, a distributor of MRO industrial electronic components. Financial terms were not disclosed.
"We are thrilled to announce our partnership with Galco. Mike Conwell and the rest of the Galco management team have done a terrific job of building the business through partnerships with vendors within both existing and new product categories as well as through strategic acquisitions. We are excited to support Galco as long-term investors in the Company," Jon Ralph, Freeman Spogli Partner.
Galco was advised by BB&T Capital Markets and Fried Frank Harris Shriver & Jacobson. Freeman Spogli was advised by Ropes & Gray. Debt financing was provided by Madison Capital and BMO Harris Bank.
JF Lehman, a private equity firm, agreed to acquire Integrated Global Services, a provider of highly engineered, proprietary surface protection solutions and technologies. Financial terms were not disclosed.
"We are excited to have IGS join our growing portfolio of companies in the environmental and technical services sector. The company is an excellent fit with our investment strategy given its 30+ year history of innovation and growth, long-term partnerships with leading customers and talented global workforce. We are pleased to partner with the IGS management team and support IGS in its next phase of growth," Alex Harman, JFLCO Partner.
Integrated Global Services is advised by Harris Williams and Kirkland & Ellis. JF Lehman is advised by Jones Day. Debt financing is provided by Benefit Street Partners.
The Blackstone Group completed its $1.4bn investment in Phoenix Tower International, an owner and operator of wireless infrastructure sites.
“We are excited to continue our fantastic partnership with Tac Opps and the completion of this fundraise represents a further confirmation of our business plan. As our customers shift towards their 5G build-out needs, they require well-capitalized infrastructure providers that they trust with a mandate to work with them globally and across all of their infrastructure needs. PTI has the track record, expertise and balance sheet to be a market leader in the coming years with Blackstone’s ongoing support,” Dagan Kasavana, Phoenix Tower International CEO.
Blackstone was advised by PJT Partners, Akin Gump Strauss Hauer & Feld and Simpson Thacher & Bartlett.
Clearlake Capital, a private investment firm, agreed to acquire Innovative XCessories & Services, which designs, manufactures, and markets automobile parts and accessories, from Olympus Partners, a private equity firm. Financial terms were not disclosed.
"IXS is the clear market leader in spray-on bed liners for both automotive OEMs and the aftermarket, and its proprietary protective coating solutions enable it to provide differentiated services while expanding its market opportunity. The Company's focus on service, quality, and innovation has solidified IXS as the supplier of choice for its customers, and we are excited to partner with Jim and his team to support the Company's plans for accelerated growth," José E. Feliciano, Clearlake Co-Founder and Managing Partner.
ISX is advised by Harris Williams and Jefferies. Clearlake Capital is advised by Lambert and UBS.
PMA Financial Network, a premier full-service provider of comprehensive financial and investment advisory services to municipalities, school districts, local government pools, and insurance companies, agreed to acquire Miles Capital, an independent institutional investment adviser. Financial terms were not disclosed.
“PMA is a natural fit for Miles. My two main goals in seeking the right partner were cultural fit and an expanded menu of investment solutions for our valued clients, some of which we have served for over 30 years. As we began to explore a potential partnership with PMA, we were impressed by both their integrity and their investment expertise. I am confident that they will serve our clients well, and I am pleased to continue my involvement as an advisor to PMA post-transaction,” David Miles, Miles Capital Chairman.
PMA is advised by Kirkland & Ellis. Miles Capital is advised by Godfrey & Kahn.
Digital Colony-backed Beanfield Technologies, a digital services provider, agreed to acquire Openface, a provider of internet connectivity services. Financial terms were not disclosed.
"We are excited to join forces with Openface and expand our presence into Montreal. This acquisition will allow us to meet our customers' growing connectivity needs as data speed and reliability become increasingly critical to business operations. Furthermore, the combined larger business will ensure customers in Canada's two largest markets can access our best-in-class fiber solutions," Dan Armstrong, Beanfield CEO.
Openface is advised by Richter and Spiegel Sohmer. Beanfield Technologies is advised by TD Securities and Davies Ward Phillips & Vineberg. Digital Colony is advised by Stanton PRM.
RELX, a European information provider, through its subsidiary LexisNexis Risk Solutions, agreed to acquire Emailage, a provider of fraud prevention and risk management solutions, for $480m. The transaction is subject to customary conditions and regulatory consents and is expected to close in the first quarter of 2020.
"LexisNexis Risk Solutions is laser-focused on providing its customers a 360-degree view into an identity, which aligns with our mission to help customers who seek fast, low-friction, global digital identity fraud solutions to combat fraud without sacrificing consumer experience. We are thrilled to be recognized as a pioneer in email intelligence-based fraud risk scoring solutions and look forward to aligning our solutions to help organizations fight fraud on a more comprehensive level," Rei Carvalho, Emailage CEO.
RELX is advised by Cravath Swaine & Moore.
WayForth, a provider of home transition management services, and Livible, a provider of on-demand moving and storage, completed their merger. Financial terms were not disclosed.
The combined companies are now known as WayForth. WayForth will focus on combining client service and technology expertise to deliver an even more comprehensive home transition management experience.
“The merger of WayForth and Livible leverages the personal touch of our trained professionals with the benefits of technology to remove the stress and complexity of people’s major life transitions. Our mission is to guide people and families through significant and often emotional moves, helping them organize, distribute, store and transport belongings to make these transitions less stressful and with positive outcomes,” Craig Shealy, WayForth Co-Founder and CEO.
WayForth was advised by 104 West Partners.
Koch Industries, an American multinational firm, through its private investment arm, agreed to acquire the remaining stake in Infor, a multi-national enterprise software company for $11bn. The transaction is subject to customary conditions and regulatory approvals.
"Koch's decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers. As a subsidiary of a $110bn + revenue company that re-invests 90% of earnings back into its businesses, we will be in the unique position to drive digital transformation in the markets we serve. We are rapidly expanding our industry-specific CloudSuites and offering customer experiences and outcomes that are well beyond what is standard in enterprise software," Kevin Samuelson, Infor CEO.
Golden Gate Capital is advised by Sard Verbinnen.
Cboe Global Markets, an exchange holding company, completed the acquisition of Hanweck, a real-time risk analytics company, and FT Providers, a portfolio management platform provider. Financial terms were not disclosed.
"Bringing data and analytics firms that pioneer unique information solutions to Cboe helps us accelerate the pace of innovation and better serve our global clients. Adding Hanweck and FT Options to our Information Solutions group will help us deliver a more integrated product suite in less time and support trading through better asset pricing and risk management software. We are excited to welcome the Hanweck and FT Options teams to Cboe Global Markets," Ed Tilly, Cboe Global Markets Chairman, President, and Chief Executive Officer.
Diversified, a global technology solutions provider, agreed to acquire Sensory Technologies, an audiovisual integration firm. Financial terms were not disclosed.
“Combining the strengths of our two innovative companies will help us sustain the necessary growth to meet the evolving needs of our clientele. Sensory Technologies has built an exceptional business, and I’m excited to welcome them into the Diversified family,” Fred D’Alessandro, Diversified CEO.
OneDigital, a strategic advisory firm, agreed to acquire Resources Investment Advisors, an independent hybrid registered investment adviser firm. Financial terms were not disclosed.
"As we enter this next chapter, we see Resources and their affiliate companies as an important and strategic expansion of our services. It’s clear that taking a holistic approach to employee benefits, retirement planning, and wealth management is at the forefront of our client’s needs and their employees’ wellbeing," Adam Bruckman, OneDigital President, and CEO.
Starboard presses eBay to sell classifieds business. (FS)
Activist shareholder Starboard Value piled more pressure on eBay to sell off its classifieds business, saying it had not made enough progress to improve shareholder value, Reuters reported.
eBay last year agreed to sell its ticketing unit, StubHub, for $4.05bn in cash, under pressure from Starboard and Elliott Management. They had also urged it to sell eBay Classifieds Group as part of a plan that could double the company’s value.
“To achieve the optimal outcome, we believe Classifieds must be separated, and a more comprehensive and aggressive operating plan must be put in place to drive profitable growth in the core Marketplace business,” Starboard.
ArcLight raised $3.4bn for its new fund. (FS)
ArcLight Capital Partners held the final closing of its latest fund, ArcLight Energy Partners Fund VII, with commitments totaling roughly $3.4bn, Kallanish Energy reported.
"Midstream and power infrastructure have never been more important as the US transitions into a new energy future. Thoughtful and efficient modernization of our midstream infrastructure will be critical to supporting the US's new position as the world's largest producer of oil and natural gas. Power infrastructure will play a similar role as we move toward a lower-carbon future," Daniel Revers, ArcLight's founder and managing partner.
ArcLight Capital Partners was advised by Ropes & Gray.
California senator introduces bill to make PG&E a publicly owned utility.
A California lawmaker introduced a bill aimed at making PG&E a publicly owned utility, a year after liabilities from wildfires traced back to some of its equipment pushed the power producer into bankruptcy.
“Today, I am introducing legislation to force PG&E to become a publicly owned utility. PG&E has failed. It's failed on safety & reliability. PG&E has forfeited its privilege to operate as an investor-owned monopoly in California," Scott Wiener, California State Senator.
Bombardier considers divesting the business-jet unit to Textron.
Bombardier is in talks to sell its business-jet division to Textron as the struggling Canadian train and plane maker moves to pare its debts, WSJ reported.
The negotiations began after Bombardier entered into talks in mid-2019 to sell its train unit to France’s Alstom. Those discussions have been bogged down, however, in part over the valuation of a business that is struggling with a production backlog. Bombardier is now holding parallel talks for the jet and train units as the company seeks to ensure the sale of one of its major divisions ahead of a $1.5bn debt payment next year.
US Venture Partners raised $340m for early-stage VC fund. (FS)
US Venture Partners, an early-stage venture capital firm, has closed USVP XII, a $340m fund that will continue the firm’s strategy of building leading companies in cybersecurity, enterprise software, consumer, and healthcare.
"With USVP XII, we are pleased to continue building on our extensive track record of successful early-stage VC investing. In addition to a multi-decade track record of success, USVP has demonstrated powerful performance in recent years. In the last three years, USVP portfolio company exits have generated $933m in proceeds to USVP funds. Over the past decade, USVP has distributed over USD2B to our investors. And 2019 was the eighth consecutive year that USVP distributions to limited partners exceeded called capital," says Rick Lewis, USVP General Partner.
Industry Ventures raised $125m for debut tech buyout fund. (FS)
Industry Ventures, an investment firm focused on venture capital solutions, held the final closing of its debut hybrid fund of funds for technology buyouts, Industry Ventures Tech Buyout, with total commitments of $125m.
The fund continues the firm’s successful strategy of investing in technology-focused managers and companies. The fund will target primary commitments to technology buyout funds less than $750m in size, early secondary purchases of limited partnership interests in those same funds and direct co-investments in technology buyouts focusing on software companies and other venture-backed businesses. The new fund brings the firm’s total institutional committed capital under management to $3.6bn.
Arbor Lodging Partners to acquire 12-hotel portfolio. (RE)
Arbor Lodging Partners agreed to acquire a 12-hotel national portfolio in a joint venture with the GFH Financial Group. Financial terms were not disclosed.
With its $135m portfolio acquisition of six hotels last April, this brings the Chicago-based hotel investment and management company's expansion to 37 full-service and select-service properties comprising nearly 5k rooms across 21 markets in 15 US states. The hotels will be managed by its affiliate Arbor Lodging Management.
Blackstone names John Stecher a new CTO. (FS, People)
The Blackstone Group appointed John Stecher, formerly Group Chief Technology Officer and Group Chief Innovation Officer at Barclays, as Chief Technology Officer. Mr. Stecher will lead Blackstone’s global technology organization and help advise the firm’s investing teams and portfolio companies on technology-related matters. He will report to Michael Chae, Blackstone’s Chief Financial Officer, and will begin this role on 24 February. He succeeds Bill Murphy, who led Blackstone’s best-in-class technology platform over the past eight years.
"Technological innovation continues to be a key driver of our success. John’s extensive experience and engineering expertise will expand our leadership position in this critical area for our firm and portfolio companies. John will build on the considerable accomplishments of our technology teams and Bill Murphy, who did an outstanding job for Blackstone," Jon Gray, Blackstone President & COO.
EMEA
Compagnie Nationale à Portefeuille, a Belgian investment and holding company, completed its acquisition of a stake in Collecte Localisation Satellites, which provides satellite systems, from Ardian. Financial terms were not disclosed.
“I’d like to thank the Ardian, CNES, and Ifremer teams for their support. Their strategic and practical guidance has helped strengthen our leadership and broaden our portfolio of solutions. We are delighted to welcome CNP, an investor that shares our vision and corporate philosophy. CNP, together with CNES, will help us grow and take on new challenges for a sustainable planet,” Christophe Vassal, CLS Chief Executive.
Ardian was advised by Accenture, Alvarez & Marsal, Boston Consulting Group, Edmond de Rothschild Corporate Finance, Indefi, BGB & Associés, FTPA, Latham & Watkins, MGG Legal, Sekri Valentin Zerrouk, Image Sept, and Delaby & Dorison. Compagnie Nationale à Portefeuille was advised by Bain & Co, KPMG, Messier Maris & Associes, and Willkie Farr & Gallagher. Collecte Localisation Satellites was advised by Callisto.
TELUS International, a provider of communications and information technology, completed the acquisition of Competence Call Center, a provider of higher-value-added business services, for $1bn.
"Today is an extraordinary and remarkable day in the successful 22-year journey of our company. With the official close of our partnership with TELUS International, we are excited to begin realizing the numerous benefits of bringing together our highly-engaged teams to pool our knowledge and skills, as well as our companies’ resources and geographic footprints to deliver more fulsome, first-class customer experiences from more regions around the world,” Christian Legat, CCC CEO.
Competence Call Center was advised by Gleiss Lutz. TELUS was advised by Barclays, Rothschild, and Shearman & Sterling. Ardian was advised by Latham & Watkins, Deloitte, McKinsey, William Blair and Ernst & Young.
Searchlight Capital Partners, a private investment firm, agreed to acquire a majority stake in Global Risk Partners, the independent insurance intermediary, from Penta Capital, a private equity firm. Financial terms were not disclosed. The acquisition is subject to regulatory approval.
“We have enjoyed working with the GRP team, jointly funding the business with Peter Cullum and management from effectively a start-up to one of the largest independent UK brokers today. Peter, David and the team have created a business of scale in each of its chosen markets which has a terrific track-record of consistent and profitable growth. We are pleased to remain investors in the next stage and look forward to working with Searchlight on the next phase of growth for GRP and the team,” Steven Scott, Penta Capital Founding Partner.
GRP is advised by Evercore, Wyvern Partners, Proskauer Rose, and Slaughter & May. Searchlight is advised by RBC Capital Markets and Willkie Farr & Gallagher. Penta is advised by Dickson Minto.
Tencent, a global technology pioneer, and Dragoneer, a San Francisco-based investment firm, agreed to invest $250m in Farfetch, a global technology platform for the luxury fashion industry. Closing of the transaction is subject to customary conditions.
The additional capital supports Farfetch’s long-term strategy of delivering a global technology platform for the luxury fashion industry and facilitates the company's continued focus on executing its growth plans, including in the key China market, and driving towards operational profitability.
“I am pleased to have Tencent and Dragoneer as part of the Farfetch investor base. Tencent’s deep technology expertise and ongoing relationship with Farfetch, paired with Dragoneer’s expertise in supporting growth-oriented technology companies, makes both investors outstanding partners to support Farfetch’s next chapter of growth. As we continue to execute on our long-term strategy, we believe that this investment supports Farfetch in delivering on the significant opportunity we see and scaling our business to achieve profitability in the medium term,” José Neves, Farfetch Founder, CEO, and Co-Chair.
Farfetch is advised by JP Morgan and Brunswick Group.
Algeco, a modular space leasing business in Europe and Asia Pacific, completed its acquisition of Malthus Uniteam, a provider of relocatable modular buildings in the Norwegian market. Financial terms were not disclosed.
"This transaction transforms Algeco's position in the attractive Nordic modular space market, and further strengthens our presence across Europe. Malthus Uniteam's broad product range and strong customer base will ensure that Algeco is well placed to benefit from the continued strong growth of the Nordic markets. Furthermore, the customers of Malthus Uniteam will benefit from Algeco's industry-leading range of value-added products and services. We look forward to working with the management team on the next phase of growth," Mike Smith, Algeco Chairman.
Algerco was advised by Tulchan Communications.
Ethica Global to acquire Lanificio dell'Olivo from Gradiente. (FS)
Ethica Global, a private equity firm, agreed to acquire Lanificio dell'Olivo, a producer of textile products, from Gradiente, an investment management firm. Financial terms were not disclosed.
"To guide this ambitious development plan, the current management team has been confirmed, in particular, the president Vittoria Varianini, the managing director Fabio Campana, the financial director Gianluca Bazzi and the technical director Pierluigi Biagini, who all participated in the investment alongside Ethica Global Investments," Lanificio dell'Olivo.
Ethica Global is advised by IRTOP Consulting.
The Central Group, Thailand’s largest retailer, and Signa, Austria’s largest privately-owned real estate company, agreed to acquire Globus, a Swiss luxury department store chain, for c.$1bn.
With Globus, the combined presence of Signa and Central Group will span five countries in the continent – Germany, Austria, Italy, Denmark, and Switzerland – making both one of the leading operators and owners of luxury department stores in Europe.
“Globus is a wonderful brand very close to our hearts. We are delighted to welcome it as a member of our family. As a historic Swiss brand, Globus is a perfect fit for our European alliance with strong local presence and great international recognition. By working together, we will guarantee Globus and the rest of our brands a solid, sustainable, and successful future,” Vittorio Radice, Central Group Europe CEO.
Accuron Technologies, an international engineering and technology group, and a subsidiary of Temasek, completed the investment into WAAM3D, a company commercializing Wire-Based Additive Manufacturing technology. Financial terms were not disclosed.
“There is a huge market potential for this technology, based on the interest we have been receiving from various industry sectors for over ten years. We are delighted to be partnering with Accuron Technologies to bring WAAM forward. The company will bring in as many as 20 staff in the coming year to scale up operations. We also aim to keep close links with Cranfield University, as well as other institutional and industrial partners, internationally,” Filomeno Martina, WAAM3D CEO.
Fraser Group, formerly known as Sports Direct International, a British retailing group, agreed to acquire a 12.5% stake in Mulberry, a designer, manufacturer and seller of leather accessories, clothing and interior design collections. Financial terms were not disclosed.
"A key strategic priority for Frasers Group is the elevation of our retail proposition and building stronger relationships with premium third-party brands. Frasers Group looks forward to working more closely with Mulberry for the benefit of shareholders of both companies," Fraser Group.
Indigo Partners cuts stake in WizzAir to comply with ownership rules. (FS)
Wizz Air’s largest shareholder, US-based private equity firm Indigo Partners, carried out a long-time plan to cut its stake in the company as the Budapest-based low-cost airline works to comply with European Union ownership rules.
Bill Franke, founder and managing partner of Indigo Partners and a veteran American low-cost airline investor is chairman of Wizz Air. Indigo cut its stake to 3.4% from 20.6%.
Airlines must be more than 50% owned by European Economic Area nationals to operate flights within the bloc, otherwise, the rights of non-EEA shareholders have to be restricted to allow operations to continue.
Indigo Partners was advised by JP Morgan.
August Von Finck divests the majority of his stake in SGS.
German billionaire August Von Finck completed the sale of a majority of his stake in Switzerland’s SGS, the world’s largest testing company, boosting his already sizable cash pile. He sold 960k shares valued at CHF2.3bn ($2.4bn) and retains a stake of about 3%. The company’s shares fell as much as 6.5% in response to the move.
“We thank the von Finck family for their long-term support and commitment to the SGS group,“ Peter Kalantzis, SGS chairman.
August Von Finck was advised by Credit Suisse.
Smiths asks for final bids for a $3bn medical unit. (FS)
Smiths Group asked for final bids this week for its medical-equipment business, which could fetch about $3bn, Bloomberg reported. Private equity firms Cinven, Platinum Equity, and GTCR are among parties considering making binding offers for the unit. US-listed rival ICU Medical, which was pursuing the business last year, is also in the race.
Smiths Group will next review the proposals to decide whether to sell the business or pursue a spinoff. No final decisions have been made, and the deliberations may not result in a deal.
Leidos, an information technology, engineering, and science solutions provider, agreed to acquire L3Harris’ airport security and automation business for $1bn.
“The announcement represents a significant milestone in L3Harris’ strategic priority to reshape our portfolio following last year’s L3 and Harris merger. The agreement provides a stable path forward for the Security & Detection Systems and MacDonald Humfrey Automation businesses while enabling L3Harris to focus its resources on core technologies,” William M. Brown, L3Harris Chairman, and CEO.
L3Harris is advised by Evercore and Paul Weiss Rifkind Wharton & Garrison. Leidos is advised by PricewaterhouseCoopers, Credit Suisse, DLA Piper and Fried Frank Harris Shriver & Jacobson.
Grab, a Singaporean ride-sharing company, agreed to acquire Bento Invest, a Singapore-based robo-advisory start-up. Financial terms were not disclosed.
“The Bento and Grab Financial teams share a common vision to democratize investments for our customers irrespective of their wallet size. I am grateful for the opportunity to be part of the Grab ecosystem as we work together to make wealth management solutions serve the financial needs of millions of Southeast Asians,” Chandrima Das, Bento Founder and CEO.
Pebblestone Asset Management to acquire Korean logistics facility from a KKR-led consortium. (FS)
Pebblestone Asset Management agreed to acquire BLK Pyeongtaek Logistics Center, a newly developed multi-tenant modern logistics facility located in Pyeongtaek Port, one of the largest ports in South Korea, from a KKR-led consortium.
“We are proud of our work alongside our partners to complete the BLK Pyeongtaek Logistics Center, one of the country’s newest modern logistics facilities. This state-of-the-art warehouse will enable businesses all over the world to better reach their customers across Korea,” John Pattar, KKR Partner & Head of Asia Pacific Real Estate.
CVC-backed Softex considers Indonesian IPO delay on virus concerns. (FS)
PT Softex Indonesia, a sanitary product maker backed by private equity firm CVC Capital Partners, is weighing postponing its Indonesian initial public offering that could raise at least $400m, Bloomberg reported.
The Tangerang-based firm had planned to start gauging investor demand this month, but the spread of the novel coronavirus has jeopardized travel plans, making meetings with prospective investors difficult. The choppy stock market is also not conducive to a share sale, while Softex needs more time to prepare its financial statements.
Cerberus and SSG in a race for Indian shadow bank Altico. (FS)
Competition for ownership of Indian shadow bank Altico Capital India has revived with the re-entry of Cerberus Capital Management into the race.
New York-based hedge fund Cerberus submitted a bid for ailing Altico last week, after getting an extension from an initial deadline in the previous week, DealStreetAsia reported.
DXN seeks pitches for a $300m IPO. (FS)
DXN Holdings, a Malaysian health supplement producer, asked banks for pitches for an initial public offering that could raise at least $300m, Bloomberg reported.
The company, backed by Southeast Asian private equity firm KV Asia Capital, could sell shares as soon as the end of this year. The supplement maker hasn’t decided on the listing venue with Malaysia, Singapore, and Hong Kong among the potential options.
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