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AMERICAS
New York state regulators approve Centrene's $17.3bn acquisition of WellCare.
New York Department of Financial Services and Department of Health have each approved Centene’s pending $17bn acquisition of WellCare, bringing the total number of states to approve the transaction to 24.
The companies continue to expect that the transaction will be completed by the first half of 2020. Completion of the transaction remains subject to clearance under the Hart-Scott-Rodino Act, receipt of the remaining required state regulatory approvals, and other customary closing conditions.
“We are making important progress in our merger process and are pleased that state insurance regulators continue to see the benefits that our combination will bring to recipients and communities. We will continue to work with the remaining state insurance regulators to demonstrate how we will provide recipients with access to affordable, high-quality services and products as well as deliver fair compensation for providers and create savings for states.” Michael F. Neidorff, Centene Chairman, President and CEO.
Goldman Sachs, Kirkland & Ellis, Locke Lord, and Sard Verbinnen are advising Wellcare. Cleary Gottlieb Steen & Hamilton is advising Goldman Sachs. Barclays, Allen & Company, Barclays, Evercore, JP Morgan, Cravath Swaine & Moore, Skadden Arps Slate Meagher & Flom, Joele Frank, and Morrow Sodali Global are advising Centene.
Platinum Equity, an investment firm specializing in mergers, acquisitions and operations, is set to acquire Cision, a provider of software and services to public relations and marketing communications professionals, for $2.7bn.
Under the terms of the agreement, which has been unanimously approved by the members of Cision's board of directors, an affiliate of Platinum Equity will acquire all of the outstanding ordinary shares of Cision for $10.00 per share in cash. The purchase price represents a 34% premium over Cision's 60-day volume-weighted average price ended on October 21, 2019.
"Platinum looks forward to nurturing Cision's core business, supporting and anticipating the diverse needs of the company's customers, and driving new opportunities for innovation." Jacob Kotzubei, Platinum Equity Partner.
Centerview Partners, Deutsche Bank, Rothschild & Co, and Kirkland & Ellis are advising Cision. Bank of America Merrill Lynch, Gibson Dunn & Crutcher, and Willkie Farr & Gallagher are advising Platinum Equity.
Lundbeck, a Danish international pharmaceutical company, completed the acquisition of Alder BioPharmaceuticals, a pharmaceutical development company based in Bothell, Washington, for $2bn. The consideration represents a 79% premium to Alder's share price based on the closing price on September 13, 2019.
"I am very excited to welcome Alder to Lundbeck. The completion of our acquisition of Alder with the exciting investigational drug, eptinezumab, will expand the breadth of our portfolio into migraine and represents a major step in the execution of our Expand and Invest to Grow strategy and Lundbeck can now take part in helping the migraine community where so much unmet need remains," Deborah Dunsire, President and CEO of Lundbeck.
Centerview Partners, Cooley and Skadden Arps Slate Meagher & Flom advised Alder BioPharmaceuticals. MTS Health Partners, PJT Partners and Baker McKenzie advised Lundbeck.
LegacyTexas Financial Group notified NASDAQ of the anticipated effective date of the previously-announced merger with Prosperity Bancshares, dated as of June 16, 2019. LegacyTexas expects that the merger will be effective as of November 1, 2019, subject to the approval of the shareholders of Prosperity and the stockholders of LegacyTexas and the satisfaction or waiver of the other closing conditions described in the definitive merger agreement.
Following the completion of the merger, the common stock of LegacyTexas will cease to be listed on the NASDAQ.
JP Morgan, Shapiro Bieging Barber Otteson and Simpson Thacher & Bartlett are advising LegacyTexas. Keefe Bruyette & Woods and Bracewell are advising Prosperity Bancshares.
First State Investments, a private equity firm, completed its acquisition of Patriot Rail and Ports, a portfolio of 12 short line freight railroads with more than 585 track miles across 14 states in the US, from SteelRiver Infrastructure Partners. Financial terms were not disclosed.
The Patriot acquisition represents the initial unlisted infrastructure investment in the US by First State Investments, which manages more than $8bn of unlisted infrastructure investments across the United Kingdom, continental Europe, Australia, New Zealand, and North America, with a focus on mid-market companies in the transportation and utility sectors worldwide.
"Patriot, with its strong operating business and management team led by CEO John Fenton, is now a core asset in our global infrastructure investment portfolio. Railroads are long-life assets that provide essential transportation services to a diverse customer base. We are excited to support the Patriot team and see many opportunities to continue to expand the business in North America." John Ma, First State Director of the New York-based unlisted infrastructure team.
RBC Capital Markets, CL Media Relations, and Mayer Brown advised First State Investments. Barclays and Winston & Strawn advised SteelRIver.
Brookfield Asset Management agreed to acquire a 25% stake in Cove Point, which owns a liquefied natural gas import, export and storage facility located on the western shore of the Chesapeake Bay, from Dominion Energy, an American power and energy company, for $2bn.
"The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs. We are very excited to have a highly respected infrastructure investor such as Brookfield as our partner in this world-class facility," Thomas F. Farrell, II, Dominion Energy chairman, president and chief executive officer.
Kirkland & Ellis is advising Brookfield. JP Morgan and McGuireWoods are advising Dominion Energy.
PSP Investments, Canada's largest pension investment managers, and Alberta Teachers’ Retirement Fund Board, a provider of administration and management of pension plans, are set to acquire AltaGas Canada, a natural gas distribution utilities and renewable power generation company, for $1.3bn.
The cash consideration of $33.50 per common share represents a premium of approximately 31% to the closing price of the common share on the TSX on October 18, 2019, or a premium of approximately 33% to the 20-day volume-weighted average price.
“We are very pleased to have entered into an agreement to acquire ACI in partnership with ATRF. ACI’s business comprises a diversified portfolio of high-quality regulated natural gas utilities and long-dated contracted renewable power assets that are well aligned with our long-term investment strategy. We look forward to supporting the company, its management team, and all of its stakeholders as ACI continues to grow and succeed.” Patrick Samson, PSP Investments Managing Director.
Beacon Securities Limited, TD Securities, and Stikeman Elliott are advising AltaGas. Citigroup, National Bank Financial, and Blake Cassels & Graydon are advising ATRF.
FirstBank Puerto Rico, a retail and consumer banking division of FirstBank is set to acquire Santander Bancorp, a holding company including Banco Santander Puerto Rico for $1.1bn. The consideration represents a 1.1x price to total book value, and the transaction is expected to close in the middle of 2020, subject to regulatory approvals.
“We are very excited to announce this transformational transaction for our Company. After completing comprehensive due diligence, we have signed an agreement to acquire Banco Santander Puerto Rico. This acquisition will significantly improve our scale and competitiveness in Puerto Rico while enhancing our funding and risk profile." Aurelio Alemán, FirstBank President and CEO.
Goldman Sachs, Moelis & Co, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom are advising FirstBank.
Mid-Atlantic Dental Partners, a dental care provider, agreed to acquire DentalOne Partners, a dental support organization. Financial terms were not disclosed.
“This acquisition allows us to further transform Mid-Atlantic Dental Partners into a nationally recognized DSO. We’re proud of the positive impact we’ve made in the dental industry in just three years and look forward to continuing that success with DentalOne Partners,” Mitchell Goldman, Chief Executive Officer of Mid-Atlantic Dental Partners.
Houlihan Lokey and Morgan Lewis & Bockius are advising DentalOne. KPMG, PwC, The Berkley Group, Duane Morris, Waller Lansden Dortch & Davis and Maven Communications are advising Mid-Atlantic. CRG is providing debt financing.
Astorg-led consortium agreed to invest in eResearchTechnology, global data, and technology company, which minimizes risk and uncertainty in clinical trials. Other investors in the group were Nordic Capital, and Novo Holdings Financial terms were not disclosed.
Building on ERT's leading technology platform and reputation for operational excellence, the new broadened ownership group, together with management, will invest in the continued development of the business to further expand operational capabilities and selectively pursue add-on investments to support future growth.
“Since Nordic Capital’s investment in 2016, we have been very pleased by the investments made and the development of ERT as a trusted healthcare service partner and a leading healthcare technology provider. We are excited about the opportunity to continue Nordic Capital’s investment in ERT in partnership with Astorg and Novo." Jonas Agnblad, Partner and Co-Head of Healthcare at Nordic Capital, added: “We are extremely excited to continue Nordic Capital’s journey with ERT and partner with Astorg and Novo who share our vision of building the leading clinical trial technology company.” Raj Shah, Nordic Capital Partner and Co-Head of Healthcare.
Jefferies & Company is advising eResearchTechnology. Publicis Consultants and Kirkland & Ellis are advising Nordic Capital.
Genpact, a global professional services firm focused on delivering digital transformation, agreed to acquire Rightpoint, a premier digital consultancy with technology at its core. Financial terms were not disclosed.
The deal is designed to bring experience and process innovation together to help clients drive end-to-end digital transformation and win in the growing experience economy. Rightpoint's co-founder Ross Freedman will continue as CEO of this business.
" I am very excited to have Ross and the very talented Rightpoint team join Genpact as we together help transform our client's businesses in this experience economy," Tiger Tyagarajan, Genpact, President, and CEO.
Canaccord Genuity is advising Rightpoint. Morgan Stanley is advising Genpact.
NextEra Energy, a Fortune 200 energy company, is set to acquire a 22.5% stake in Central Penn Line, a 185-mile intrastate natural gas pipeline that is an integral part of a pipeline system regulated by the Federal Energy Regulatory Commission, from Ares Management, a private equity firm for $286m.
The transaction is expected to close in the fourth quarter of 2019, subject to closing conditions and regulatory approvals.
“Our Meade Pipeline investment demonstrates Ares’ investment strategy to partner in the development of critical infrastructure assets, bring them online and ultimately create value for our fund investors," Keith Derman, Ares Partner.
BMO Capital Markets is advising Ares.
Centre Partners, a middle-market private equity firm, completed the investment in Wisconsin Cheese Group Holding, a manufacturer of branded and private label Hispanic foods, including cheeses, desserts, meats, and spices. Financial terms were not disclosed.
"We are very pleased to partner with Brian and Danette, who have joined a very talented and committed team at WCG. WCG is well-positioned to continue to capitalize on the large and growing Hispanic foods category and we look forward to our ownership of the business as it expands into new channels, categories, and customers.” Bruce Pollack, Centre Partners Managing Partner.
Dechert advised Centre Partners.
Anacapa Partners, a lower middle-market focused private equity firm, completed the investment in i4PRO Informática, an insurance brokerage firm. Financial terms were not disclosed.
I4PRO provides a customized implementation of these products and facilitates ongoing updates for maintenance and regulatory compliance. The company also offers modules for specialty business lines, such as reinsurance, as well as finance and accounting workflows.
BackBay Communications advised Anacapa.
Arlington Capital, a private equity firm, is set to acquire AEgis Technologies, a provider of advanced engineering and technology expertise. Financial terms were not disclosed.
AEgis provides advanced engineering solutions for a variety of space superiority, directed energy, missile defense, specialized training and simulation, C4ISR, and analytics programs.
"We are excited to partner with Jonathan and the AEgis management team to build on that tradition and accelerate the Company’s growth by investing in internal research and development as well as pursuing strategic acquisition opportunities.” Henry Albers, Arlington Vice President.
Professional services firm Sikich is set to acquire an Illinois-based public accounting firm, Scanlan & Leo. Financial terms were not disclosed.
Scanlan & Leo offers accounting, audit, tax compliance and planning, and advisory services to companies across industries.
"The addition of Scanlan & Leo will strengthen our accounting, tax and audit services. We look forward to drawing on the Scanlan & Leo team's experience working with a diverse range of industries to bolster our service offerings." Tom Krehbiel, Sikich Partner.
Universal Power completed the acquisition of WavDrone, a startup that specializes in advanced drone technology. Financial terms were not disclosed.
The startup technology company is now wholly owned by Universal Power and will continue the development of specific drone software and technology primarily for use by local, state, and federal governments and the military.
Utz Quality Foods, the largest family‐managed, privately held, salty snack company in the United States, completed the acquisition of Direct Store Delivery Snacks business of Conagra Brands, a branded food company. Financial terms were not disclosed.
"We are excited about the opportunity to add these important brands and capabilities to our portfolio. These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west," Dylan Lissette, Utz Chief Executive Officer.
Carlisle Companies agreed to acquire Providien, a provider of comprehensive manufacturing solutions for global medical device OEMs, including: thermoforming, medical device contract manufacturing, precision machining & metals, and medical injection molding. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2019. Financial terms were not disclosed.
“The acquisition of Providien fits our Medical Technologies platform expansion and vertical integration strategy, driven by aging populations and increased preference for minimally invasive surgical procedures. Providien adds new products for medical markets, including: Robotics, Drug Delivery, Oncology, and Kyphoplasty, currently not served by CIT's product portfolio," Chris Koch, Carlisle President, and Chief Executive Officer.
Claritas Capital, a private equity firm, is set to invest in Virtue Technologies, a provider of post-acute healthcare technology solutions. Financial terms were not disclosed.
“We are excited to support the Virtue Technologies team as they provide solutions which promote service excellence, increase productivity, and fills the gaps in an otherwise fragmented marketplace.” Theresa Sexton, Claritas Capital Partner.
Microsoft completed the acquisition of Mover, a provider of cloud file migration, including admin-led and self-service offerings. Financial terms were not disclosed.
Mover supports migration from over a dozen cloud service providers – including Box, Dropbox, Egnyte, and Google Drive – into OneDrive and SharePoint, enabling seamless file collaboration across Microsoft 365 apps and services, including the Office apps and Microsoft Teams. The Mover team also brings deep expertise and migration technology, which advances Microsoft's commitment to providing organizations of all sizes with the right tools, people, and partners to successfully migrate to the Microsoft Cloud.
MediaLab, a holding company that owns internet brands like Whisper, Datpiff, and others, is set to acquire Kik messenger, a freeware instant messaging mobile app, from Kik Interactive. Financial terms were not disclosed.
"Nine years ago Kik went live. Since then hundreds of millions of people have had billions of meaningful conversations. I am excited that our amazing users will continue to have a great home, and that Kik will continue to grow and evolve as a pillar of the Kin Ecosystem." Ted Livingston, Kik Founder.
Tenchi Security, a cloud services security specialist, completed the acquisition of BlueOps, training, and consulting firm. Financial terms were not disclosed.
"We have received a lot of market demand for cloud monitoring and incident response services. The intellectual property and incredible talent we are bringing with this acquisition will be essential to meet this demand with quality," Alexandre Sieira, Tenchi Founder.
Park 'N Fly agreed to acquire Executive Valet, the well-established airport parking facility. Financial terms were not disclosed.
This acquisition will allow Executive Valet's customers and employees to reap the benefits of Park 'N Fly's first-in-class technology and global parking network.
Wave Solar, a generation platform built exclusively for solar installers, completed the acquisition of Solargraf's consumer education service: My Solar Installer. Solargraf is a software platform for solar installers known for its integrated financing features, mobile-friendly design, and pro quoting tools. Financial terms were not disclosed.
"We are pleased to welcome Solargraf's lead buyers into Wave Solar and to acquire Solargraf's consumer education website MySolarInstaller.com. This acquisition will allow us to generate more homeowner leads for the US residential solar installer market and help our clients to grow their sales teams," Colin Walsh, Wave Solar CEO.
Kansys, a specialized BSS Integrator with over 22 years of billing experience on multiple billing platforms, agreed to acquire Enterprise and Cloud Billing business from Ericsson. ECB is a charging solution primarily developed to monetize any product or service, including IoT services. Financial terms of the transaction were not disclosed. Closing is anticipated in October 2019.
"ECB continues to provide unique architectural advantages that translate into the most flexible and nimble enterprise billing software in the world. This is especially true for those customers with complex monetization requirements," Arthur Koenig, Kansys CTO.
SoftBank secures the deal to take over WeWork. (FS)
SoftBank Group agreed to spend more than $10bn to take over WeWork, doubling down on an ill-fated investment and paying off its co-founder Adam Neumann to relinquish control, Reuters reported.
The deal represents a stunning reversal of fortune for the US office-space sharing startup, as well as its largest shareholder, SoftBank, which with the latest commitments, will have spent more than $19bn on a company that is now valued at just $8bn.
The setback comes as SoftBank Chief Executive Masayoshi Son is seeking to convince investors to participate in the Japanese company’s second mammoth Vision Fund, for which he is seeking to raise $108bn. To stem WeWork’s bleeding, SoftBank will need to reverse its widening losses and find a way to make it profitable.
Meredith sells MONEY brand to Ad Practitioners.
Meredith, the media and marketing company, closed on the sale of the MONEY brand to Ad Practitioners, a portfolio of digital brands, including ConsumersAdvocateorg. Financial terms were not disclosed.
The sale includes the popular MONEY.com website, which averages 4m monthly unique visitors. At present, 14 employees work on MONEY.com at Meredith's 225 Liberty Street offices in New York City. Under terms of an employee lease agreement between the parties, the 14 will remain Meredith employees until January 31, 2020, at the latest.
Cooley advised Meredith.
Cole Haan to file for a confidential IPO. (FS)
Premium shoe brand Cole Haan, currently owned by private equity, has confidentially filed an initial public offering, Bloomberg reported.
The timing and size of an offering have not been determined and is expected to start when the SEC completes a review process.
Billionaire Carl Icahn to hand over hedge fund to his son. (FS, People)
At 83, Carl Icahn, the billionaire financier legendary for waging guerrilla warfare with corporate targets from TWA to Dell, finally has a succession plan, Financial News reported. Mr. Icahn says he’s moving his hedge fund to Miami and laying the groundwork to hand it over to his son Brett.
Brett worked with his father for over 15 years as an analyst but recently took a break. He remained involved as a consultant and now represents his father on the board of Newell Brands, the maker of Sharpies and other products. He previously ran a more than $6bn fund at Icahn Enterprises.
Harbin Pharmaceutical to consider a privatization bid for GNC Holdings. (FS)
GNC Holdings’ Chinese investor, Harbin Pharmaceutical Group, is considering a potential bid to take the US vitamin and supplement retailer private.
The Chinese company has been speaking with potential advisers about an offer for GNC. GNC has lost more than half its value over the last year, giving it a market capitalization of $176m. The company had nearly $900m of debt at the end of June, according to a recent investor presentation.
EMEA
Sunrise Communications Group bowed to investor pressure on Tuesday and scrapped its $6.4bn acquisition of Liberty Global’s Swiss cable business UPC, Reuters reported.
The Swiss telecommunications group had battled to save the deal in the face of opposition from its biggest shareholder, Germany’s Freenet, that holds 25% of its stock.
Sunrise was advised by UBS, Deutsche Bank, Morgan Stanley, Lenz & Staehelin, Latham & Watkins, Slaughter & May, Nautadutilh, PWC, Deloitte, Meyerlustenberger Lachenal, Finsbury and Morrow Sodali Global. Liberty was advised by Credit Suisse, JP Morgan, Lion Tree Advisors, Shearman & Sterling, Homburger, and Citigate Dewe Rogerson.
Austrian sensor maker AMS is keen on the $4.5bn acquisition of the German lighting specialist Osram, as it seeks to seal a cooperation agreement before remounting its bid.
“We expect to have a (cooperation) agreement in place before the offer launches,” Alexander Everke, AMS CEO.
Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco, and FTI are advising Bain. Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
Prosus, a spin-off of Naspers made a hostile bid of $6.3bn for the takeover of Just Eat, a British online food order and delivery service, interrupting the Just Eat-Takeaway $11bn merger plan.
Just Eat’s board rejected the all-cash offer, saying it “significantly undervalued” the UK company. Just Eat revealed that it had already rebuffed the offer privately, urging its investors instead to back a planned merger with Takeaway.com, FT reported.
Goldman Sachs, UBS, Oakley Advisory, Linklaters, and Brunswick Group are advising Just Eat. Bank of America Merrill Lynch, Lazard, Cravath Swaine & Moore, De Brauw Blackstone Westbroek, NautaDutilh, and Slaughter & May are advising Takeaway. JP Morgan, Allen & Overy, and Finsbury Hering Schuppener are advising Prosus. Investec is providing debt financing.
Alpha Private Equity, an investor in the European mid-market segment, agreed to acquire Vervent Audio Group, a manufacturer and distributor of high-end and luxury audio equipment, from Naxicap Partners, a French private equity company. Financial terms were not disclosed.
The group, which distributes its products in over 160 countries through its distribution network composed of nearly 8.2k points of sale, is focused on export markets, with almost 80% of its turnover generated internationally. The change of shareholder will enable the Vervent Audio Group to strengthen its market positions by supporting its growth plan, particularly in the United States and Asia.
“After a successful partnership with Naxicap Partners, we are very pleased to be partnering with Alpha to accelerate our development. The fund’s excellent knowledge of B2C sectors and its European presence made it a natural partner for us.” Christophe Sicaud, Vervent Audio Group CEO.
Advancy, Boston Consulting Group, ERM, DC Advisory, Ernst & Young, Goodwin Procter, Lamartine Conseil, and PricewaterhouseCoopers are advising Alpha Private Equity. HSBC, Lyxor, and Societe Generale are debt providers. Rothschild & Co is advising Vervent.
The European Commission approved TDR Capital's $2.7bn acquisition of BCA Marketplace, a used vehicle marketplace listed on the London Stock Exchange. The deal is now expected to complete by Nov. 6.
"BCA is a high-quality business that operates in a market that is changing rapidly, driven by evolving customer demands and digital disruption. TDR has a strong track record of investing in businesses and partnering with management to develop and grow their operations. We are highly supportive of BCA management and believe that with the right investment and support, BCA can continue to grow and evolve its market-leading automotive aftermarket services offering for the benefit of its customers, employees and partners," TDR Capital.
Goldman Sachs, Jefferies & Company, Kinmont, Bryan Cave Leighton Paisner, Buchanan and Square1 Consulting are advising BCA. Bank of America Merrill Lynch, HSBC, Kirkland & Ellis, Linklaters, Ashurst and Tulchan Communications are advising TDR. Bank of America Merrill Lynch, HSBC and RBC Capital Markets are providing debt financing.
Nuo Capital, a Chinese fund, agreed to acquire a 30% stake in personal care products manufacturer Ludovico Martelli for $56m. The transaction will take place partly through share purchase and part through a capital increase. The price reflects a valuation of the company of $167m, as estimated at the beginning of June.
Ludovico Martelli currently belongs to the Martelli family (90%). Today it is based in Fiesole and has 105 employees. The company is led by CEO Giovanni Galeotti, who holds the remaining 10% of the capital.
Gatti Pavesi Bianchi is advising Ludovico Martelli. Chiomenti is advising Nuo Capital.
Gaming Innovation Group agreed to acquire a 75% stake of Croatian company Top Games, a company that qualifies for a remote gambling permit. Financial terms were not disclosed.
GiG will acquire 75% of Top Games, with the remaining 25% retained by the local partner who has a successful history in land-based casino businesses. The payment for this acquisition is solely based on a contribution of resources by the shareholders with no cash being paid. The local partner will upfront the initial costs, whereas GiG will provide rights of use of the brand, a gambling platform, and operational expertise. GiG is planning to enter the online casino market in Croatia via this partnership in the first half of 2020.
"I'm excited to further expand our B2C business by entering another regulated jurisdiction. Croatia is a very interesting marketplace for gambling and supports our strategy to grow our own brands in high potential and regulated markets. GiG has a track record of creating responsible gaming experiences with a captivating UX. This is a good opportunity to showcase the strength of our online casino offering and our passion for providing end-users with a safe, responsible, and competitive online gambling experience," Richard Brown, GiG CEO.
Enghouse Systems, a global provider of software solutions for companies serving a variety of vertical markets, agreed to acquire Eptica, a provider of customer adhesion software. Financial terms were not disclosed.
"Eptica offers an important access point to the French market for organic and purchasing expansion. We are very pleased to welcome Eptica customers and employees to the Enghouse Interactive organization." Steve Sadler, Enghouse Chairman of the board and CEO.
Carlisle, a manufacturer and distributor of construction materials, transportation products and general industrial products, agreed to acquire 100% of the shares of Draka Fileca from Prysmian. Closing of the transaction is expected to occur no later than during the first quarter of 2020. Financial terms were not disclosed.
The purchase of Draka Fileca is consistent with Carlisle's Vision 2025 strategy to build scale with synergistic acquisitions to drive to $15 of earnings per share.
“The acquisition of Draka Fileca fits our well-established Aerospace strategy and expands key product offerings and geographic presence in Europe for our Interconnect Technologies segment. Draka Fileca also brings strong technical resources and capabilities that will support and enhance growth opportunities for CIT. The acquisition will position CIT to remain a global leader of aerospace, electrical wire, and fiber optic cable technology. We are very pleased to welcome the Draka Fileca team to Carlisle," Chris Koch, Carlisle President, and Chief Executive Officer.
Thyssenkrupp to pick bidders for the next round in elevator unit deal. (FS)
At least ten strategic and private equity firms have been invited to submit indicative bids for Thyssenkrupp’s prized elevator division, Reuters reported.
Information memorandums, which include a more detailed account of the unit’s finances, were sent to potential bidders last week. Bids are usually due about four weeks after information packages have been distributed.
Brookfield, CVC, a tie-up of Blackstone and Carlyle, as well as a consortium consisting of Advent, Cinven and the Abu Dhabi Investment Authority, have received the IM.
Travis Perkins to put on hold the sale of plumbing and heating unit.
Travis Perkins, the owner of the Wickes and Toolstation brands, put on hold its plan to sell its plumbing and heating unit, citing an “unprecedented level” of market uncertainty.
Britain’s largest distributor of building materials had in December decided to sell the business as part of a push to simplify its structure, cut costs, and focus on its trade businesses.
Oyak intends to revise British Steel’s supply contracts.
A Turkish group’s acquisition of British Steel depends on lowering the cost of contracts the UK’s number two steelmaker holds with its suppliers, Bloomberg reported.
Oyak Group, which manages military pensions, entered exclusive talks in August to buy British Steel, the first step in a rescue that could save about 5k jobs in the UK’s manufacturing heartland. The due diligence undertaken by Oyak’s Ataer Holding unit over the past two months found that some supply deals were uncompetitive and the company wants them to be revised.
Sports Direct drops bid for Goals Soccer.
Sports Direct, a retailer of sports apparel, drops the bids for the UK-based football center Goals Soccer, citing insufficient cooperation from the management of Goals.
Sports Direct, which is the largest shareholder of the troubled football ground operator Goals Centre made an offer that would value the company at $4.9m.
Sports Direct was unable to complete the necessary due diligence to progress the offer, Reuters reported.
Fosun to bid for Bankhaus Lampe. (FS)
Chinese conglomerate Fousun is in advanced talks regarding placing bids for Bankhaus Lampe, a bank owned by Germany’s billionaire Oetker family.
Amro Bank and Franco-German financial group Oddo are also weighing offers for the private bank. The deal could value Bankhaus Lampe at $223m.
BlackRock appointed the head of UK local government pensions. (FS, People)
BlackRock, the world’s largest asset manager, has appointed a new head of UK its business, serving one of the biggest pools of pension money in the UK.
Gavin Lewis has been named head of UK local government pension schemes. LGPS manages £275bn ($356bn) on behalf of roughly 100 local council funds, giving it responsibility for the retirement savings of millions of people in England and Wales.
“This is an exciting time for the UK pension fund market, and I look forward to working with the team as we position the business for future growth,” Gavin Lewis, BlackRock head of UK local government pension.
APAC
The $10.6bn deal of Bharti Infratel and Indus Towers has been hit by a delay due to delay in securing government approvals and a new committee will now explore “all possible options”. The companies had aimed to complete the merger by August.
The merger will help Bharti Airtel and Vodafone Group, promoters of Indus Towers, to sell their stake, bring down debt and invest in their wireless operations in India, which has been facing the heat of a tariff war started with the entry of Reliance Jio in September 2016.
“The scheme (of merger) contemplated the closing by October 24, 2019 (long stop date), by which time a large number of processes and conditions precedent were required to be completed, which included but were not limited to all requisite Government approvals and filings,” Bharti Infratel.
Kochhar & Co is advising Indus Towers. Walker Chandiok & Co, Goldman Sachs, JP Morgan, and AZB & Partners are advising Bharti Airtel. Bank of America Merrill Lynch, and Bharucha & Partners are advising Vodafone Idea. Ernst & Young, Morgan Stanley, S&R Associates, Slaughter & May, and Maitland are advising Vodafone.
AMP Capital raised $6.2bn for infrastructure debt strategy. (FS)
AMP Capital raised a record a $6.2bn for its fourth infrastructure debt strategy, which includes the final close of the AMP Capital Infrastructure Debt Fund IV. Central to the fundraise is the final close of the IDF IV, which reached its hard cap of $4bn, surpassing its $3.5bn target. An additional $1bn was secured in co-investment rights and a further $1.2bn from investors wanting access to AMP Capital’s infrastructure debt deal capabilities.
This is AMP Capital’s largest-ever closed-end fund and is believed to be the most massive fundraising in the world for an infrastructure mezzanine debt strategy.
“We’re thrilled with the level of interest we’ve received for our fourth infrastructure debt strategy. In less than a year, a total of 86 investors from 14 countries invested in IDF IV with strong demand from institutional investors in Korea, Japan, Canada, and the UK. More than 30 institutional investors joined the strategy for the first time, which is a testament to the growth of our global distribution network and an indication of the increasing demand for infrastructure debt investments. Approximately $1.2bn was raised in Korea alone, where we continue to have strong interest from new and existing clients.” Andrew Jones, AMP Capital Global Head of Infrastructure Debt.
Hyundai Motor to raise stake in Chinese joint venture.
Hyundai Motor is considering raising its stake in its underperforming truck joint venture in China, potentially joining other foreign automakers in boosting ownership in the world’s biggest car market.
Sichuan Hyundai Motor is Hyundai’s only commercial car venture in China that makes cargo trucks and buses.
Hyundai is reviewing various plans to strengthen the joint venture’s competitiveness in changing market conditions in China, Reuters reported.
AirTree Ventures to announce the $275m third fund. (FS)
Sydney-based AirTree Ventures announced its $275m third fund with a continued focus on backing founders in the Australia and New Zealand region.
Just like its previous vehicle, AirTree’s third fund will be split into a core fund and an opportunity fund, allowing the venture capital firm to invest in the seed stage by cutting cheque sizes of $200k as well as backing founders with $100k-plus investment round.
Six institutional investors are backing AirTree’s third fund, including AustralianSuper, SunSuper, and Statewide. Other investors include entrepreneurs and family offices, who first invested in the VC firm back in 2014.
TPG & KKR-backed PropertyGuru to lean towards the lower end of the IPO range.
TPG and KKR-backed PropertyGuru, the Southeast Asian online realty company, is offering shares at the lower end of the A$3.7 ($2.5) to A$4.5 ($3) indicated range as it takes orders for its Australian initial public offering, DealStreetAsia reported.
A book message sent to investors on Tuesday by the deal’s joint lead managers, UBS and Credit Suisse, also says institutional demand is oversubscribed. Ahead of the deal, PropertyGuru had indicated the stock would be priced to institutional shareholders to raise up to A$380m ($261m).
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