Daily Review

Synthomer, a United Kingdom-based specialty chemical company, received the European Commission's clearance for its acquisition of OMNOVA, a global manufacturer of emulsion polymers, specialty chemicals, and functional and decorative surfaces.

 

"We are pleased to have received European Commission clearance for the acquisition of OMNOVA but note the structural remedy required to divest our small VP Latex business in Germany. The acquisition of OMNOVA is strategically and financially compelling. It will materially expand our international business into North America, and grow our presence in Europe and Asia, as well as provide an attractive financial profile with significant expected synergy benefits. We are now working on the divestment as quickly as possible, which will enable us to conclude the OMNOVA acquisition and focus on taking the combined business to the next level," Calum MacLean, Synthomer Chief Executive.

 

OMNOVA is advised by Morgan Stanley and Jones Day. Synthomer is advised by Canaccord Genuity, Barclays, HSBC, Valence Group, Cravath Swaine & Moore, Herbert Smith Freehills and Teneo. Debt financing is provided by Citigroup.

Amynta Group, an insurance services company and provider of warranty protection products and services, completed the acquisition of American Auto Guardian, a provider of vehicle protection products and services. Financial terms were not disclosed.

 

"AAGI has built an outstanding company over 20 years, focused on consistently delivering performance to their distribution partners and dealers, with a successful track record of growth and profitability under the leadership of Tim Brugh. AAGI brings new distribution partners, OEM relationships, dealer networks and geographic reach, broadening our presence, particularly in the Midwest. AAGI expands our warranty offerings, providing incremental opportunities to drive growth across our business," Rob Giammarco, Amynta Chairman and CEO.

 

American Auto Guardian was advised by Houlihan Lokey and Bryan Cave Leighton Paisner. Amynta was advised by Bank of America Merrill Lynch, MHT Partners and Kirkland & Ellis.

“The addition of these high-quality Pacific Northwest timberlands increases Rayonier’s ownership in the region to 504k acres, adds 57 MMBF to our sustainable yield, increases our proportion of Douglas-fir inventory and offers a complementary age-class fit. We look forward to completing this transaction by mid-year, which continues our strategy of adding high-quality timberlands in strong log markets and building long-term value for our shareholders through prudent capital allocation,” David Nunes, Rayonier President and CEO.

 

Pope Resources is advised by Centerview Partners, Davis Wright Tremaine, and Munger Tolles & Olson. Rayonier is advised by Credit Suisse and Wachtell Lipton Rosen & Katz.

ProctorU, an online exam security and identity management company, and Yardstick Assessment Strategies, a specialist in psychometrics and computer-based exam administration for professional testing organizations, completed the merger and formed a new parent brand, Meazure Learning. Financial terms were not disclosed.

"By adding ProctorU's technology and a suite of secure proctoring solutions to the Yardstick platform, we are now able to bring enhanced security to physical test center delivery, as well as offering improved service and security for clients seeking and using remote testing. Meanwhile, ProctorU's capabilities and success in higher education have never been greater. The merger enables our two businesses to focus on our respective markets, each with our own brand and a dedicated team to ensure we stay at the forefront of both professional testing and higher education," Isabelle Gonthier, Yardstick President.

Yardstick was advised by RF Binder. 

Equinix, the global interconnection and data center company, agreed to acquire Packet Host, a bare metal automation platform. Financial terms were not disclosed.

 

"The incorporation of Packet into Equinix will accelerate the delivery of enhanced edge services to Equinix's growing customer base, while continuing to serve the developer community that has come to rely on Packet's unique offering," Zachary Smith, Packet CEO.

 

Equinix is advised by Davis Polk & Wardwell.

Huron Capital-backed Albireo Energy, a building automation and energy services platform, completed the acquisition of Advanced Automated Systems, a provider of building automation and energy management services. Financial terms were not disclosed.

 

"We are incredibly pleased to add AAS to the Albireo family. This acquisition represents a strong start to the year, and we are motivated to continue this momentum and further develop our team of exceptionally talented industry leaders," Jim Mahoney, Huron Senior Partner.

 

Huron Capital was advised by Lambert & Co.

Califia Farms, a plant-based beverage and food company, raised $225m in a Series D round led by the Qatar Investment Authority. Other investors in the financing include Singapore-headquartered investment company Temasek, Canada-based Claridge, Hong Kong-based Green Monday Ventures, and a Latin America based family with significant interests in coffee and consumer products.

 

"The more than $1tn global dairy and ready-to-drink coffee industry is ripe for continued disruption, with individuals all over the world seeking to transform their health & wellness through the adoption of minimally processed and nutrient-rich foods that are better for both the planet and the animals," Greg Steltenpohl, Califia Founder and CEO.

 

QIA was advised by Tulchan Communications.

H.I.G. Capital-backed Whitney, Bradley & Brown, a provider of program management and consulting services, completed the acquisition of Decisive Analytics, a provider of technology-enabled solutions that support key programs for the US Department of Defense and US Intelligence Community. Financial terms were not disclosed.

"This acquisition builds on WBB’s organic growth and allows domain expertise within critical capabilities including program management, systems engineering, vehicle integration and prototyping, cybersecurity, data analytics, and development. The integration of DAC begins the next phase of WBB’s life cycle and continues our journey for the delivery of high-quality products and services to our customers and opportunities for our now 1k employees,” Robert Olsen, WBB CEO.

Accel-KKR-backed Springbrook, a provider of fully integrated, cloud-based ERP and payments software for local governments, completed the acquisition of BIAS Software, a provider of cloud-based accounting software for local public agencies. Financial terms were not disclosed.

"Since becoming an independent company singularly focused on serving local governments, we continue to look for ways to add value to our customers. We see tremendous synergy in building on BIAS's expertise in OCBOA-compliant financial administration software and to deepen Springbrook's market leadership position in the US Pacific Northwest region in partnership with BIAS co-founders Mark Felchlin and Wes Hein," Max Schnoedl, Springbrook CEO.

Fellow Health Partners, a New York-based medical business solutions company, agreed to acquire Billing Services, a long-established medical billing company operating out of 3 New York locations. Financial terms were not disclosed.

“We had been searching for the right partner for several years when we were introduced to Fellow Health Partners. Jack and I quickly recognized that it was a perfect fit. BSI was reaching a point where our doctor and hospital clients were asking for more advanced technology, especially for reporting and data that could help them better manage their practices. At the same time, our billing and support teams wanted more opportunities, including advanced training. We also liked the fact that Fellow Health Partners was committed to keeping jobs in the USA, especially in New York State,” Sue Emptage, Billing Services CEO.

HIG Capital-backed Circle Graphics, a producer of grand and large-format digital graphics, completed the acquisition of Metromedia Technologies, a provider of grand format visual solutions. Financial terms were not disclosed.

 

"We are excited to combine such an iconic company as MMT into our operations. We will benefit from MMT’s added capacity, expertise in areas such as wall graphics and transit, and an expanded roster of some of the best out-of-home customers in the world. We are in a competitive industry, and production volume is a key requirement that allows us to invest in continuous improvements in our factories, invest in product R&D, and bring our customers more sophisticated software solutions," Andrew Cousin, Circle Graphics CEO.

TRISTAR Insurance, an independent third-party claims administrator in the US, completed the acquisition of Aspen Risk Management, a provider of loss control and safety services to America’s premier insurance carriers, captives, and brokers. Financial terms were not disclosed.

"For the past 15 years our team has worked hard to become exceptional at risk control and workplace safety. Joining TRISTAR gives us the chance to carry our primary purpose of saving lives, preventing injuries & illnesses, and protecting our clients from harm all across America,” Steve Thompson, Aspen CEO.

Lexington Partners, one of the largest independent managers of secondary acquisition funds, announced the final close of Lexington Capital Partners IX and associated vehicles which together total $14bn of commitments.

 

The fund, which commenced investing in the fourth quarter of 2018, surpassed its $12bn fundraising target and significantly exceeded Lexington's prior secondary fund, LCP VIII, which closed on $10.1bn in 2015.

KKR closed its second Next Generation Technology Growth Fund at $2.2bn. The vehicle is dedicated to growth equity investment opportunities in the technology space in North America, Europe, and Israel, according to a PE News report.

 

Considerably bigger its predecessor, which closed at $711m in 2016, the fund will target assets valued above $50m in areas such as enterprise software, digital media, fintech, and tech-enabled and data services.

Speaking at a Securities and Exchange Commission event, top executives from Blackstone and Apollo Global Management stopped short of urging the agency to dial back restrictions. But they came armed with data showing all the ways retail investors have been left behind, according to a Bloomberg report. Their arguments: private markets are here to stay, less-liquid investments like corporate debt perform much better than stocks and private equity produces bigger gains with less volatility than publicly traded shares.

 

"Private companies can now get ample funding and don't need to do the IPO route. This is a fundamental change that regulators and the industry will have to deal with," John Finley, Blackstone CLO.

Bankrupt California power producer PG&E is nearing a deal with creditors that would entitle them to a mix of equity and new debt if they scrap their rival restructuring plan.

 

Under the deal being negotiated by creditors led by Elliott Management and Pacific Investment Management, the investment in the company would replace some of the exit financing that PG&E is proposing as part of its restructuring.

 

China’s Fosun International decided to cut stakes or even divest completely from Guide Investimentos and Rio Bravo, two financial firms it controls in Brazil.

 

Fosun decided to look for a partner so it will not need to fund alone the investments needed to expand both financial firms over the coming years, Reuters reported.

Goldman Sachs sold off its stake in Uber Technologies after the ride-hailing startup’s disappointing initial public offering in 2019, according to a Bloomberg report.

 

Goldman owned about 10m shares of Uber at the time of the IPO, turning a $5m wager using the firm’s own money back in 2011 into a major windfall. The bank recognized a gain in the second quarter but took a hit in the third quarter as Uber’s shares plunged. Like other investors, Goldman Sachs was restricted from selling shares until six months after the offering.