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AMERICAS
Bain Capital, a private investment firm, agreed to acquire Harrington, a distributor of industrial plastic piping, from Nautic Partners, a middle-market private equity firm. Financial terms were not disclosed.
"Our vendors and customers have long recognized Harrington as a leading supply chain partner and technical expert in the specialty distribution sector. As our end markets are benefitting from key macroeconomic trends, we are excited to partner with Bain Capital to accelerate our growth as we continue to support critical industrial sectors across the country," Dave Abercrombie, Harrington CEO.
Bain Capital is advised by PricewaterhouseCoopers, BMO Capital Markets, Robert W Baird, Kirkland & Ellis, and Stanton PRM (led by Scott Lessne and Chalyn Lusk). Harrington is advised by CBIZ Mergers and Acquisitions, Jefferies & Company, William Blair & Co, and McDermott Will & Emery. Debt financing is provided by BMO Capital Markets, Goldman Sachs, Jefferies & Company, and Oak Hill Advisors.
Man Group, an investment management business, completed the acquisition of a majority stake in Varagon Capital Partners, a middle market private credit manager, from Aflac, an insurance company, Corebridge Financial, a financial services company, and American International Group, an insurance organization, for $183m.
"This acquisition reflects our long-term strategy to move into new market segments where we can differentiate ourselves with talented, specialised teams. Man Group has built a rich and diversified credit offering to date, and as client demand for credit strategies is increasing, we see a significant growth opportunity in direct lending, particularly against the backdrop of regional banking difficulties in the US. This transaction enhances our ability to provide deep, fundamental credit expertise through a cycle, underpinned by risk management of the highest quality," Eric Burl, Man Group Head of Discretionary.
ZMC, a private equity firm, completed the acquisition of InProduction, a provider of temporary seating, staging, structures, and scenic production for the United States events industry. Financial terms were not disclosed.
"We are thrilled to be partnering with ZMC to help accelerate our next phase of growth. ZMC's clear expertise in the sports and live events industry combined with the InProduction team's experience and knowledge will enable us to expand our client base while continuing to provide the industry with new and innovative products that enhance the spectator experience," Jason Tedrow, InProduction CEO.
InProduction was advised by TD Cowen and Willkie Farr & Gallagher. ZMC was advised by Houlihan Lokey, Lowenstein Sandler, and blue2 media (led by Christine Merser).
BlackRock TCP Capital, a direct lending services provider, agreed to merge with BlackRock Capital Investment, a business development company. Financial terms were not disclosed.
“This transaction continues our commitment to build a best-in-class platform that offers clients products and solutions to capitalize on the expanding opportunities in private debt. Over the past 20 years, BlackRock has built leading private debt capabilities to help our clients achieve their investment objectives by aligning our proven investment excellence with long-term market opportunities. This merger is a strategic next step in the growth and evolution of our business development company platform, which is an important part of our Global Private Debt business,” James Keenan, BlackRock Capital Investment Interim CEO.
BlackRock TCP Capital is advised by Houlihan Lokey and Dechert. BlackRock Capital Investment is advised by Keefe Bruyette & Woods and Vedder Price. Financial advisors are advised by Skadden Arps Slate Meagher & Flom (led by David Hepp and Matthew Collin).
Liberty Media, an American mass media company, agreed to acquire a 90% stake in QuintEvents, an event management company, for $282m.
“We could not be more thrilled for the Quint team to join forces with Liberty Media. This has been an incredible journey and is a transformative moment for Quint and our position in the experiential and travel economy. Liberty Media is the right partner for our next evolution of growth. Together, we can deepen our commitment to our existing partnerships through the continued development of our tech stack and service offering, while providing a pathway to expand into complementary vertical markets that will enhance our customer and partner experience,” Brian Ruede, QuintEvents CEO.
QuintEvents is advised by JP Morgan, Bryan Cave Leighton Paisner and Allied Global Marketing. Liberty Media is advised by O'Melveny & Myers.
Peyto Exploration & Development, an explorer and producer of uncoventional natural gas in Alberta's Deep Basin, agreed to acquire the Canadian unit of Repsol, an integrated global energy company, for $468m.
"This acquisition marks a very important milestone for Peyto. We have coveted these lands for many years and this asset checks all the boxes for us. Peyto has a history of being very selective when it comes to acquisitions but is also very successful in realizing value from them. The Repsol assets fit perfectly with Peyto's existing Deep Basin acreage and offer a significant number of top-tier undeveloped locations that will immediately compete for capital within our portfolio. Furthermore, we have identified many opportunities to leverage our low-cost, operational expertise on these Assets which we expect will yield significant annual cost savings. Together, at current strip pricing and under our proposed development plan, the combined assets are forecast to generate sufficient cumulative free cash flow over the next three years to support long term sustainable returns to shareholders in the form of reduced debt and increasing dividends," Jean-Paul Lachance, Peyto President and CEO.
Peyto Exploration & Development is advised by BMO Capital Markets, CIBC, National Bank Financial, and Burnet Duckworth & Palmer.
Summit Materials, a building materials company, agreed to merge with Cementos Argos, a Colombian construction materials producer, in a $3.2bn deal.
"Combining Argos USA with Summit is a significant milestone as we execute against and accelerate our materials-led portfolio strategy. The transaction will extend our geographic reach into high growth markets, creating a leading cement enterprise nationwide, and bring together two talent-rich organizations to innovate and deliver value-added solutions for our customers. Financially, we have clear line of sight to achieving targeted synergies of more than $100m annually as we unlock the full potential of this powerful combination," Anne Noonan, Summit Materials President and CEO.
Summit Materials is advised by Morgan Stanley and Davis Polk & Wardwell. Debt financing is provided by Morgan Stanley.
Sigma Additive Solutions, a provider of in-process quality assurance software to the additive manufacturing industry, agreed to acquire NextTrip, a travel technology company, for $48m.
"The transaction with Sigma will establish a partnership and path forward to accelerate growth. As NextTrip continues to roll out key technology developments and grow our footprint in the travel space, we believe the relationship with Sigma will bring additional leverage and momentum. The efforts of the NextTrip team to drive the business forward have established the brand and positioned it to be a disruptive force in the industry. We look forward to continued growth and product development. NextTrip's commitment to customer service, our deep supplier relationships and proprietary technology uniquely position us for a strong trajectory across multiple segments of the travel market," Lyndsey North, NextTrip President.
Sigma Additive Solutions is advised by Lake Street and MZ Group (led by Chris Tyson).
Gryphon Investors-backed Meazure Learning, a full-service testing solutions company, completed the acquisition of Examity, an online exam proctoring company, from Great Hill Partners, a Boston-based private equity firm. Financial terms were not disclosed.
“We are focused on providing an exceptional customer experience, and this combination gives us the scale and flexibility to meet any client need. We believe our combined ability to innovate new product offerings and address new markets will not only benefit our customers and partners but will also result in greater opportunities for our employees,” Tim McClinton, Meazure Learning CEO.
Gryphon Investors was advised by Lambert & Co (led by Jennifer Hurson). Great Hill Partners was advised by FGS Global.
Precision Drilling, a drilling rig contractor, agreed to acquire CWC Energy Services, a drilling oil and gas wells company, for $141m.
“This acquisition supports our High Performance, High Value strategy as it allows us to expand our service offering in both Canada and the US with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy. I am excited to welcome the CWC employees to the Precision team,” Kevin Neveu, Precision Drilling President and CEO.
Precision Drilling is advised by Evercore and Osler Hoskin & Harcourt.
Deep Track Capital, an investment firm focused exclusively on the life sciences industry, and Forbion, a venture capital firm, led a $175m Series B round in Mariana Oncology, a biotechnology research company focused on pioneering oncology treatment, with participation from Atlas Venture, Access Biotechnology, RA Capital Management, Nextech Invest, Surveyor Capital and Eli Lilly & Company.
"The support of such a strong syndicate of new and existing investors is a testament to Mariana Oncology's potential. In just 18 months since our Series A, we've leveraged our deep expertise in peptide discovery and radiochemistry to advance a diversified portfolio of novel molecules. The proceeds from this financing support the advancement of our pipeline and the initial development of our lead candidate, MC-339, which we anticipate will enter the clinic in 2024 in small cell lung cancer, supported by our own GMP radiopharmaceutical manufacturing," said Simon Read, Mariana Oncology Founder and CEO.
Mariana Oncology was advised by Argot Partners (led by Leo Vartorella).
Nestlé, a Swiss multinational food and drink processing conglomerate corporation, agreed to acquire a majority stake in Grupo CRM, a premium chocolate maker, from Advent International, a private equity firm. Financial terms were not disclosed.
"This acquisition further broadens and strengthens our confectionery presence in Brazil, enabling us to enter the high-end segment. Kopenhagen and Brasil Cacau offer premium chocolates that are highly appreciated by Brazilian consumers. We are pleased that Renata Vichi will continue to lead the company with her deep knowledge and passion for the chocolate business, people and brands. Together, we will explore opportunities to further enhance the company's unique premium chocolate experience," Laurent Freixe, Nestlé CEO Zone Latin America.
Watsco, an air conditioning, heating and refrigeration equipment distributor, completed the acquisition of Gateway Supply Company, a plumbing and HVAC products distributor. Financial terms were not disclosed.
“We are pleased to welcome Gateway to the Watsco family. We have deep admiration for the company’s culture and impressive track record of growth. Gateway will continue to be led by its second-generation family members Chris, Sam and David Williams. We look forward to investing in Gateway’s expansion, including leveraging our customer-focused digital technology and supporting Gateway’s customers and employees as part of our family,” Albert H. Nahmad, Watsco Chairman and CEO.
Intermediate Capital Group, an asset management and private equity firm that specializes in investing in private debt, credit and equity transactions, agreed to invest €400m ($429m) in Enfinity Global, a provider of solutions for a sustainable energy economy.
"We are very pleased to partner with ICG in order to accelerate the execution of our projects and address our customers' 24/7 renewable energy needs. ICG's strong track record in enabling companies to scale, and their vision for the future of the industry, makes them the perfect partner for Enfinity," Carlos Domenech, Enfinity Global CEO.
Crescent Energy, an independent energy company, agreed to acquire an additional stake in Western Eagle Ford assets of Mesquite Energy, a privately held independent oil and natural gas exploration and production company, for $250m.
"We are pleased to further scale our high-quality Western Eagle Ford position following the recent acquisition of operatorship of this asset earlier in the quarter. This transaction is consistent with our strategy to grow opportunistically through accretive acquisitions, adding low decline cash flow and high quality inventory at attractive valuations while maintaining financial strength. With increased scale and operational control, we believe there are significant opportunities to realize meaningful synergies across our broader Eagle Ford footprint," David Rockecharlie Crescent CEO.
Chubu Electric Power, an electric utilities provider, agreed to acquire a minority stake in NuScale Power, a provider of nuclear technology, from Japan Bank for International Cooperation, a financial institution. Financial terms were not disclosed.
"Through our investment in NuScale, we aim to earn revenue from NuScale's future business expansion. In addition, it is important to secure all options for the sustainable use of nuclear power generation, which is indispensable for realizing a decarbonized society and we will continue to promote social implementation of innovative technologies to enhance our corporate value." Hiroki Sato, Chubu Electric Power Division CEO of Global Business Division.
Carlyle weighs options for 'RuneScape' creator Jagex.
Carlyle, an American multinational private equity, alternative asset management, and financial services corporation, is weighing options for its UK video games maker Jagex, a business which could be valued as high as £1bn ($1.25bn), Reuters reported.
The US buyout fund is working with advisers at Morgan Stanley and Aream to explore a sale or a listing of the Cambridge-based studio, which runs the hit fantasy video game RuneScape.
EMEA
KKR, a global investment firm, and Infracapital, an infrastructure equity investment company, agreed to acquire a stake in Zenobē, an EV fleet and grid-scale battery storage specialist, from Tiger Infrastructure Partners, an innovative private equity firm, for $1bn.
"This major investment in the next stage of Zenobē's growth, by one of the leading names in infrastructure private equity, culminates a journey of first-mover leadership by the company's founders and Tiger. Zenobē's visionary management catapulted the company to the forefront of the energy transition worldwide by creating the first global, grid-scale battery energy storage company, and first to provide a full EV fleet solution," Emil W. Henry, Tiger Infrastructure Partners CEO.
Intact Financial Corporation, a Canadian multinational property and casualty insurance company, and RSA, a British multinational general insurance company, agreed to acquire brokered commercial lines operations of Direct Line Insurance Group, an insurance company, for £550m ($692m).
“This acquisition significantly strengthens our UK&I business, and is strongly aligned with our strategic and financial objectives. The transaction enhances our position in the UK by doubling down on lines of business where we already outperform,” Charles Brindamour, Intact Financial CEO.
A group of investors, including Altor, GIC, Hy24 and Just Climate, led a €1.5bn funding round in H2 Green Steel, a producer of green steel, which involves the use of less carbon dioxide emissions compared to traditional steelmaking, with participation from Andra AP-fonden, Temasek, AMF, Cristina Stenbeck, Hitachi Energy, IMAS Foundation, Kinnevik, Schaeffler, Vargas and FAM.
"The caliber of investors that are backing us is impressive. Some of the most professional institutions, investors and industrial companies globally are part of this round and we are proud that they all share our commitment to sustainability as their true north. €1.5bn is the largest private placement in Europe this year and the appetite to invest in us proves both our solid business case and the market demand for green steel," Henrik Henriksson, H2 Green Steel CEO.
H2 Green Steel was advised by Morgan Stanley.
SAP, a German multinational software company, agreed to acquire LeanIX, an architecture management software company. Financial terms were not disclosed.
"For more than a decade, we have pursued a relentless customer-centric approach, a commitment to superior usability and seamless ecosystem integration and have become a leader in the enterprise architecture management category. Our strategy is to empower organizations to continuously transform in a rapidly changing business environment. With an integrated, comprehensive view of IT applications and business processes we speed up modernization and reduce transformation risks for our customers, and also secure their ability to adapt to technology shifts such as cloud and AI," André Christ, LeanIX CEO and Co-Founder.
Octopus Energy, a UK-based retail electricity and gas supplier specialising in sustainable energy, agreed to invest in Deep Wind Offshore, a power company developing a sustainable source of new electricity, powered by offshore wind, balanced by Norwegian hydropower. Financial terms were not disclosed.
"The potential for offshore wind is absolutely massive and in many ways we're only at the start of this burgeoning industry. Working with Deep Wind Offshore is hugely exciting, providing access to new offshore wind markets for us where they have deep expertise. Ultimately, the more offshore wind farms built across the globe, the quicker we can drive down bills and create a more secure energy system for everyone," Zoisa North-Bond Octopus Energy Generation CEO.
Cooper Parry, an accounting firm, agreed to acquire Haines Watts London, an accounting and business advisory company. Financial terms were not disclosed.
“We’re always looking for firms that are a right fit, culturally and strategically. As a result, we’ve got to know Michael and his management team over the best part of five years. In that time, we’ve been impressed by their growth and recognize the like-minded nature of both firms. Working alongside them, this deal underlines our determination to create the UK’s next gen accountancy firm,” Ade Cheatham, Cooper Parry CEO.
WestRock, Smurfit explore forming $20bn packaging firm.
Packaging companies WestRock and Smurfit Kappa are in talks to merge, potentially creating an industry giant with a market value of about $20bn.
The companies are discussing the key terms of a possible combination to create Smurfit WestRock. WestRock shareholders could receive shares of the combined entity should a merger proceed, Bloomberg reported.
Debt-laden Altice in talks to sell data centres to Morgan Stanley. (FS)
Cable and telecoms group Altice is nearing a deal to sell its data centres in France to Morgan Stanley Infrastructure Partners as the group of French-Israeli billionaire Patrick Drahi rushes to free up cash.
"An agreement in principle on the level of valuation has been reached", The data centres could be valued at around €1bn ($1.07bn), Reuters reported.
Daily Mail in talks over Qatari funding for Telegraph bid.
Lord Rothermere’s Daily Mail and General Trust has held talks with Qatari backers to support a combined bid for Telegraph Media Group, the latest example of bidders for the UK national newspaper scouring the oil-rich Gulf for financial backing.
DMGT, which owns the Daily Mail and Metro newspapers, is in discussions over additional equity to finance a bid for the rival media group that could cost more than £500m ($627m), FT reported.
Stroeer considers options for 2024 sale of data business Statista.
German advertising group Stroeer is considering possible options for the sale of Statista in 2024, in a process which could value the data gathering business at up to €1.5bn ($1.6bn), Reuters reported.
Private equity firms are looking at Statista ahead of a formal sale process, which is likely to kick off later next year.
LSE investors sell another £2bn stake. (FS)
Investors including Blackstone and Thomson Reuters sold about £2bn ($2.5bn) worth of stock in London Stock Exchange Group, bringing the total amount offloaded since March to more than £7bn ($8.8bn), Bloomberg reported.
LSE also bought back around £750m ($940m) in shares, part of Chief Executive Officer David Schwimmer’s pledge to support an “orderly sell down” for the consortium. That’s as the exchange struggles to retain premium listings and win over new ones.
Air Street Capital raises $121m for AI startup investments. (FS)
Venture capital firm Air Street Capital, which focuses on investments in early-stage artificial intelligence startups, has raised $121m for its second fund, with the fundraising attracting the support of Spotify Technology's CEO Daniel Ek.
Jeff Dean, an AI executive at Alphabet’s Google has also backed the London-based fund, which has already placed bets on startups in the US and Europe working on data analytics and semiconductors. The fund is also focusing on drug discovery, an area of renewed interest for investors looking for AI opportunities.
Adenia appoints Head of Investor Relations. (FS, People)
Adenia Partners, a private markets investment firm focused on responsible investments in Africa, has appointed Mack Schow as its Head of Investor Relations. Schow joins from German Investment Corporation (DEG), Germany’s development finance institution (DFI).
Schow spent ten years at DEG, most recently serving as Deputy Head of Equity Africa, co-managing a team covering an $800m portfolio of corporate equity business across Africa, including commitments to 40 Africa-focused private equity funds.
APAC
Temasek, a global investment company, led a $140m round in Ola Electric, an Indian electric two-wheeler manufacturer.
Ola Electric, founded by Bhavish Aggarwal, has become India's e-scooter market leader with a 32% share, competing with Ather Energy as well as companies such as TVS Motor and Hero Electric.
Chando cosmetics maker Jala weighs $500m Hong Kong IPO.
Jala Group, a Chinese cosmetics and skincare brand, is considering an initial public offering in Hong Kong that could raise as much as $500m, Bloomberg reported.
The Shanghai-based company is working with Huatai International and UBS on the first-time share sale. The listing may take place as soon as next year.
The first yuan-denominated fund of Warburg Pincus wins investment from Chinese city. (FS)
Warburg Pincus said the Chinese city of Yixing has signed an agreement to invest in its first yuan-denominated fund, DealStreetAsia reported.
The US private equity firm said the yuan fund, with an estimated size of CNY3bn ($409.5m) will focus on investing in the healthcare sector.
TPG names new COO. (People)
TPG, a global alternative asset management firm with $139bn of assets under management, has appointed Partner and Board Member Anilu Vazquez-Ubarri as the firm's new Chief Operating Officer, succeeding Ken Murphy who will retire following a planned transition period.
Vazquez-Ubarri will lead TPG’s operational functions globally to enable the firm’s strategic business, and will continue to partner closely with CEO Jon Winkelried and the rest of the firm’s leadership team to develop and drive TPG’s growth strategy.
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