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AMERICAS
CyberArk, the identity security company, agreed to acquire Venafi, a provider of machine identity management, from Thoma Bravo, a private equity firm, for $1.54bn.
"This acquisition marks a pivotal milestone for CyberArk, enabling us to further our vision to secure every identity – human and machine – with the right level of privilege controls," Matt Cohen, CyberArk CEO.
CyberArk is advised by Morgan Stanley and Latham & Watkins. Thoma Bravo is advised by Piper Sandler, Kirkland & Ellis and FGS Global (led by Liz Micci).
Saltchuk Resources, a family of transportation and distribution companies, agreed to acquire Overseas Shipholding Group, a provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products, for $950m.
"We are excited to enter into this new chapter together with Saltchuk, which has been a significant shareholder of OSG over the past several years and has a close understanding of our business," Sam Norton, OSG President and CEO.
Overseas Shipholding Group is advised by Evercore, Fried Frank Harris Shriver & Jacobson and Kekst CNC (led by Todd Fogarty). Saltchuk Resources is advised by BDT & MSD Partners and K&L Gates.
SouthState, a financial services company headquartered in Winter Haven, Florida, agreed to acquire Independent Bank Group, a bank holding company headquartered in McKinney, Texas, for $2bn.
"I have known and respected David for several years, and I look forward to welcoming the Independent Bank Group team to our company and working together to capitalize on the great opportunities ahead of us," John C. Corbett, SouthState CEO.
Palladium Equity-backed Superior Environmental Solutions, a provider of comprehensive, vertically integrated environmental and industrial services, completed the acquisition of Arrowhead Environmental Services, a full-service, turnkey environmental contractor. Financial terms were not disclosed.
"We believe Arrowhead represents a strong add-on business for SES as well as a scaled entrance into the greater Virginia marketplace which SES has been targeting for some time. We look forward to continuing to partner with the SES and Arrowhead teams as they advance the company's organic and inorganic growth as a leader in environmental and industrial services," Scott Kirschner, Palladium Equity Partners Principal.
Juniper Landscaping, a commercial landscaping platform providing a full suite of installation and maintenance services, completed the acquisition of Davis Landscaping, a landscaping maintenance and installation provider. Financial terms were not disclosed.
“We are thrilled to be partnering with the Davis family and their talented team to build upon and expand our growing presence throughout the Carolinas and Pennsylvania, which we expect will include additional strategic acquisitions in these markets. Scot and his team have done a remarkable job growing this business and we are excited to welcome them to the Juniper family,” Brandon Duke, Juniper Landscaping CEO.
Juniper Landscaping was advised by BackBay Communications (led by Jeremy Milner).
Key Energy Services, a provider of a wide array of energy production solutions and services, completed the acquisition of well servicing division of Endeavor Energy Resources, an oil and energy company that specializes in oil and gas exploration and production services. Financial terms were not disclosed.
“We are excited about this transaction and the great people and assets we have added to our team. We look forward to continuing our relationship with Endeavor, partnering with them to provide the same safe and exceptional service they are accustomed to,” Marshall Dodson, Key President and CEO.
Blue Ridge Associates, a provider of tech-enabled administration and compliance solutions for employer-sponsored ESOP and qualified retirement plan benefits, completed the acquisition of Tax Sheltered Compensation, a retirement plan services provider. Financial terms were not disclosed.
"Our strategy has long been to create complimentary, market leading, people first businesses that leverage technology to enable our clients to provide wealth building benefits to their employees with peace of mind. After getting to know Gary, Matt and the TSC team intimately, it was abundantly clear they were the perfect partner to advance our strategic objectives and I'm delighted to welcome them to the Blue Ridge family," Bill Yoerger, Blue Ridge CEO.
EMEA
Norges Bank Investment Management, the Norwegian sovereign wealth fund, agreed to acquire the remaining 50% stake in Meadowhall shopping mall from British Land, one of the largest property development and investment companies in the United Kingdom, for £360m ($457m).
"We are very pleased to extend our ownership in Meadowhall, a dominant super-regional shopping centre with strong occupier fundamentals," Mie Holstad, Norges Bank Investment Management Chief Investment Officer Real Assets.
Battery Ventures, a global, technology-focused investment firm, agreed to acquire steute Technologies, a manufacturing company providing innovative technology solutions for the medical and industrial sectors. Financial terms were not disclosed.
“Partnering with Battery allows us to tap the firm’s extensive experience and business network in the core markets in which we operate. Handing over ownership of a family-run business is never easy. But I am confident Battery can help us continue the growth we’ve experienced over the last decades and help us expand the company even further,” Stefan Schmersal, steute owner.
EQT in advanced talks to buy Keywords Studios for £25.50/share. (FS)
EQT Group is in advanced talks to buy Keywords Studios for £25.50 ($32.39) per share in a deal that would value the Dublin-based video game services company at more than £2bn ($2.5bn), Bloomberg reported.
The possible bid, which comes after Keywords' board rejected four unsolicited proposals from the private equity firm, represents a "significant increase from the initial proposal". It also implies a premium of 73.5% to Keywords' closing price of £14.70 ($18.86) per share on May 17. Keywords Studios' board is minded to recommend the proposal to its shareholders. EQT has until June 15 to either make a firm offer or walk away.
Activist hedge fund Elliott builds a $1bn-plus stake in Johnson Controls. (FS)
Activist investor Elliott Investment Management has built a large position in industrial giant Johnson Controls International, whose performance has lagged behind its peers, Bloomberg reported.
The hedge fund's position is worth more than $1bn, putting it among the top 10 investors of the company. Founded in 1885, Johnson Controls makes a wide range of appliances and equipment for commercial buildings, as well as home comfort appliances. It provides electronic systems for offices, schools and hospitals in areas such as ventilation, security and fire detection. The company has been attempting to divest its portfolio of heating and ventilation assets as part of efforts to streamline its business.
Ryanair to buyback shares after earnings rise.
Ryanair plans to buy back €700m ($761m) worth of shares after a rise in earnings, and it expects passenger numbers to increase this year depending on how well Boeing handles its delivery delays, WSJ reported.
The Irish low-cost carrier said that it expected its passenger numbers to grow 8%, or to 198m to 200m passengers, but that this growth would be subject to Boeing deliveries returning to contracted levels. Ryanair said it was still short 23 Boeing planes.
Prada CEO is not eyeing big acquisitions as brand focus is a priority.
Prada isn't shopping for major acquisitions right now, chief executive officer Andrea Guerra said, as the Italian fashion house wants to stay focused on developing its own brands, Bloomberg reported.
Guerra said, "Our homework today is to nurture our brands". Speculation has swirled throughout the fashion sector since design icon Giorgio Armani hinted recently at possible changes for his company once he's no longer in charge. Armani, who's nearing his 90th birthday, wouldn't rule out a merger after he exits the scene.
Employees at fintech giant Revolut to cash in with $500m share sale.
Bosses at Revolut, Britain's biggest fintech, are drawing up plans to allow employees to cash in with a sale of stock valued at hundreds of millions of dollars. The banking and payments services provider is lining up investment bankers to coordinate a secondary share sale worth in the region of $500m.
Morgan Stanley is expected to be engaged in working on the proposed stock offering, which will take place later this year. Nik Storonsky, Revolut's Co-Founder and Chief Executive, was determined to seek a valuation of at least the $33bn it secured in a primary funding round in 2021.
Getir quits the UK with multimillion-pound Tottenham Hotspur debt. (FS)
Getir, the grocery delivery app which this month confirmed plans to exit the UK, has an outstanding debt to Tottenham Hotspur Football Club running to millions of pounds. Turkey-based Getir, whose three-year training kit sponsorship deal with Spurs expired at the end of the Premier League season on May 19, owes close to £5m ($6.4m) to the club.
News of the outstanding debt comes as Getir tries to access a tranche of agreed funding from major investors Mubadala and G Squared to help facilitate its withdrawal from the UK, Germany and the Netherlands. It was unclear whether the delivery app has the means to settle its financial obligations to Spurs.
Edtech firm Alef to go public in Abu Dhabi's first IPO of 2024. (FS)
Abu Dhabi-based Alef Education's shareholders plan to sell a 20% stake in an initial public offering that will be the first in the United Arab Emirates' capital this year, Bloomberg reported.
Tech Nova Investment – Sole Proprietorship and Kryptonite Investments will offer 1.4bn shares in the edtech firm. The underwriters will take orders for the shares from May 28, with trading set to begin around June 12. The deal comes amid a busy period for listings in the Persian Gulf. Saudi Arabia has seen a burst of activity in the last few weeks and several of the IPOs have drawn many times more orders from investors than there are shares available.
Saudi Arabia's pension fund Hassana commits $1.5bn to TPG Rise Climate's funds. (FS)
Saudi Arabia's Hassana Investment will make a "substantial anchor commitment" to TPG Rise Climate's new Transition Infrastructure fund under a recently announced $1.5bn strategic partnership. A part of the commitment will go to the TPG Rise Climate II fund, DealStreetAsia reported.
TPG Rise Climate is part of alternative asset manager TPG's $19bn impact platform TPG Rise. It invests in areas including energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions. In addition to the private equity funds, the new Transition Infrastructure strategy offers a value-added, risk-return profile between core infrastructure and private equity.
APAC
The Carlyle Group, a US investment fund, offered to acquire KFC Holdings Japan, which runs the Kentucky Fried Chicken fast-food chain in the Asian country, for $720m.
With Japanese trading house Mitsubishi planning to sell its stake of 35% in KFC Holdings after the tender offer is completed, the fast-food chain operator will become a wholly owned subsidiary of Carlyle.
Alibaba, a Chinese multinational technology company, completed a $230m investment in Lazada, an international e-commerce company.
The new funding comes as e-commerce players in Southeast Asia turn to lower costs to get ahead of their competition.
Arpwood Partners, an investment firm, completed an $82m investment in Sitara, a housing finance company.
"The capital infusion by Arpwood Partners will help enhance the capacity of the company to support women in realising their dream of owning a house of their own. With this infusion, we will redouble our efforts to touch over 500k lives in the next five years," Renana Jhabvala, Sitara Chairwoman.
Star Entertainment says Hard Rock-led group weighs bid.
Star Entertainment said on May 20 that a consortium led by Florida-based Hard Rock Hotels & Casinos is considering a bid for the cash-strapped Australian firm, sending its shares 20% higher, Reuters reported.
A potential takeover by entertainment giant Hard Rock would provide a much-needed financial lifeline to Star, which has been plagued by a regulatory inquiry into its flagship Sydney casino operation and an executive exodus.
Quadrant to sell Australian confectioner Darrell Lea. (FS)
Quadrant Private Equity is preparing a sale of Australian chocolate and liquorice maker Darrell Lea in the second half of this year, Bloomberg reported.
The firm, which paid around AUD200m ($134m) for the company in 2018, housing it in its private equity fund, is expected to market the business based on an AUD70m ($47m) earnings figure. Given comparable confectionery deals in Australia and offshore, Darrell Lea could fetch a double-digit sales earnings multiple, which would imply a price tag close to AUD1bn ($670m). UBS Group and law firm Gilbert + Tobin are expected to oversee the transaction.
China's SDIC in advanced talks for a significant stake in the Thai potash mine. (FS)
China's SDIC Mining Investment is in advanced talks for a significant minority stake in Asia Pacific Potash, Bloomberg reported.
SDIC aims to acquire up to 49% of the company, which has exploration and production rights in northeast Thailand, from Italian-Thai Development. A deal could be worth at least $400m and might be announced as soon as the coming weeks. No agreement has been finalized, and talks could still fall apart.
Vietnamese lender Sacombank eyes raising up to $880m from stake sale.
Vietnamese commercial lender Sacombank is targeting to finalize a 33% stake sale by the end of this year. The Ho Chi Minh City-listed bank plans to sell the shares at a target price of between $1.36 and $1.4 apiece, translating into a deal value of $840-880m, DealStreetAsia reported.
The asking price range is significantly higher than its currently traded price per share, with a $2.1bn market cap. The plan faces a major hurdle due to the limited room left for overseas investors. Vietnamese regulations cap foreign holdings in local banks at 30%. More than 23% of Sacombank is currently owned by international investors.
PAG raises $550m for its first renewable energy fund from Mubadala and others. (FS)
Asia-Pacific investment firm PAG said on May 20 that it had raised $550m for its first renewable energy fund, which focuses on investments in physical assets in Asia and includes solar power in Japan as its primary target, DealStreetAsia reported.
PAG, which manages more than $55bn of capital ranging from private equity to credit, said in a statement that investors in the PAG REN I fund include pensions, sovereign wealth funds and fund-of-funds investors in North America, Europe and the Middle East. Abu Dhabi sovereign investor Mubadala Investment had made a cornerstone investment in PAG REN I, marking its first investment in Japan's clean energy sector.
Bain Capital to boost Japan real estate team as prospects grow. (FS, People)
Bain Capital plans to bolster its real estate team in Japan, the latest global investment firm seeking to capitalize on opportunities in the nation's property market, Bloomberg reported.
The Boston-based firm needs more staff with expertise to source deals and to help manage or sell off real estate held by Japanese companies that it invests in. There are three people on Bain's real estate team in Japan, and that could increase to six to 10 in the next year, said Co-Managing Partner David Gross.
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