AMERICAS
The federal judge accessing the DOJ's approval of T-Mobile US's $59bn acquisition of Sprint said on Friday, he would allow comments for the deal filed to the court.
Judge Timothy Kelly in Washington said in a brief order that new court filing is opposition to the merger should be limited to 20 pages and should refrain from repeating arguments made to the Justice Department since the judge has access to those, Reuters reported.
Sprint is advised by Centerview Partners, JP Morgan, Mizuho, SMBC, The Raine Group, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. SoftBank is advised by Morrison & Foerster. Deutsche Telecom is advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, Hogan Lovells, DLA Piper, Latham & Watkins, Richards Layton and Finger, and Wachtell Lipton Rosen & Katz.
Parsley Energy, an oil and natural gas company, completed the acquisition of a 77% stake in Jagged Peak Energy, an independent oil and natural gas company, for $2.27bn, including Jagged Peak's net debt of $625m.
"This collective expediency to closing allows our team to hit the ground running on these complementary, high margin assets and start capturing tangible synergies that will enhance value for our combined shareholder base. Execution will continue to speak louder than words, and our integration efforts will retain the sense of urgency and accountability that defined our successful 2019 action plan. Ultimately, we expect that the culmination of this hard work will be a more capital efficient enterprise with more free cash flow. Finally, I am excited to formally welcome Wil and Jim to our Board. I believe the Company and our shareholders will be well served by their sound financial acumen, considerable experience, and extensive network of industry contacts," Matt Gallagher, Parsley's President and CEO.
Jagged Peak was advised by Citigroup, RBC Capital Markets, and Vinson & Elkins. Parsley Energy was advised by Tudor Pickering Holt and Kirkland & Ellis.
Eli Lilly and Company, a manufacturer of pharmaceutical products, is set to acquire Dermira, a biopharmaceutical company, for $1.1bn.
The acquisition will expand Lilly's immunology pipeline with the addition of lebrikizumab, a novel, investigational, monoclonal antibody. The acquisition of Dermira will also expand Lilly's portfolio of marketed dermatology medicines with the addition of QBREXZA cloth, a medicated cloth approved by the FDA for the topical treatment of primary axillary hyperhidrosis.
"We are pleased that Lilly has recognized the progress we have made and the opportunities for lebrikizumab and QBREXZA. We also believe this proposed transaction is in the best interests of Dermira and our stockholders," Tom Wiggans, Dermira Chairman and CEO.
Dermira is advised by Citigroup, SVB Leerink, Ropes & Gray, and Fenwick & West. Eli Lilly is advised by Evercore and Weil Gotshal and Manges.
Permira, a private equity firm completed an investment in Lytx, a provider of video telematics, analytics, safety and productivity solutions for commercial and public sector fleet, at $2.5 valuation. Financial terms were not disclosed.
“Permira is a leading technology investor globally and has a proven track record of helping companies build and grow their businesses over the long term. With their expertise and the capital from this transaction, Lytx is poised to accelerate product innovation, make strategic acquisitions, expand globally, and further lead the digital transformation of fleets worldwide," Brandon Nixon, Lytx CEO.
Lytx was advised by Rothschild & Co and Kirkland & Ellis. Permira was advised by Union Square Advisors and Fried Frank Harris Shriver & Jacobson.
SYNNEX, a technological distributor, is set to spin off its business units into two publicly traded companies, SYNNEX Technology Solutions, an IT distribution, services, and integrated solutions company, and Concentrix, a CX solutions company.
The transaction is expected to be completed in the second half of 2020. The separation is intended to qualify as a tax-free transaction for federal income tax purposes for both SYNNEX and current SYNNEX shareholders.
"Today, SYNNEX is taking affirmative steps to further drive shareholder value by announcing our plan to separate into two strong, independent, public companies. The spin-off will provide each company with sharper strategic and managerial focus and enable SYNNEX shareholders to own and value each business separately," Dennis Polk, SYNNEX President, and CEO.
KPS Capital Partners, a private equity firm, agreed to acquire IKG, a North American manufacturer of high-quality steel and aluminum bar grating, from Harsco, a provider of industrial services and engineered products, for $85m.
Completion of the transaction is expected early in 2020 and is subject to customary closing conditions and approvals.
"We thank Harsco for their constructive approach on this transaction and look forward to working with Chief Executive Officer Chad McClendon, and IKG's management team and employees to build on this great platform. Given IKG's demonstrated strengths, the addition of KPS's strategic, operational, and financial resources will create an ideal foundation for IKG's future success as an independent company. We intend to drive the Company's growth both organically and through strategic acquisitions," Ryan Harrison, KPS Mid-Cap Partner.
Private equity firm Novacap-backed Nitrex, a provider of fully integrated heat-treating solutions and technologies, completed the acquisition of G-M Enterprises, a provider of vacuum furnaces. Financial terms were not disclosed.
The acquisition is in line with Nitrex's strategy to further expand its integrated heat treatment solutions offering to its customer base while strengthening its product portfolio.
"This acquisition will allow Nitrex to bolster its turnkey solutions business by bringing a new, innovative, and broader mix of heat treatment systems to our customers. We also look forward to welcoming the entire G-M Enterprises' team into the Nitrex family," Jean-Francois Cloutier, Nitrex CEO.
Cortec Group, a private equity firm, completed the acquisition of Enthusiast Auto Holdings, a platform that invests in and helps operate brands in the automotive performance industry, from Bertram. Financial terms were not disclosed.
"Bertram's vision and operational support, particularly with its Bertram Labs team, helped us transform EAH. Their patience and unwavering commitment to the business have put us in a position to expand our enthusiast scope and continue our rapid growth over the years to come," Imran Jooma, EAH CEO.
GFL, a waste management services provider, agreed to acquire and merge with American Waste, a waste management company. Financial terms were not disclosed.
"The strong family and entrepreneurial values that have been the key to American Waste's success align with GFL's core values and strategy. We are confident that this common commitment will make the integration of our service offerings seamless and allow us to continue to grow, to serve our customers, and to provide opportunities for our employees," Patrick Dovigi, GFL's Founder and CEO.
Argo Partners, a private equity firm, offered to acquire the collapsed cryptocurrency exchange QuadrigaCX. Financial terms were not disclosed.
“We offer an upfront, guaranteed payment and also the ability to share distributions if they go above a certain point. Given the unknowns in a case like this, we have found it useful to offer creditors deals that lock in rates of recovery early in the case while also protecting themselves from the case taking a turn for the better,” Jonathan Maruri, Argo Head of Trading.
Boomi, a provider of integrated system solutions, completed the acquisition of Unifi Software, a designer and developer of software solutions. Financial terms were not disclosed.
With Unifi, Boomi provides customers with a unique cloud data management platform to break down the barriers of operational data silos and democratize the flow of information across the enterprise.
Arthur J Gallagher, a US-based global insurance brokerage and risk management services firm, completed the acquisition of a majority stake in Risk Management Services, a brokerage company. Financial terms were not disclosed.
"Our Caribbean brokerage operations have worked on regional accounts with RMS since the mid-'90s. We have been very impressed with their integrity, knowledge of the business, and high-quality service, and we are delighted to further solidify that partnership," J. Patrick Gallagher, Jr., Arthur J Gallagher Chairman, President, and CEO.
The US proposes an overhaul of antitrust rules for vertical mergers.
US antitrust enforcers are proposing new guidelines for settling whether to allow mergers that combine companies that do not compete with one another but operate in the same supply chain, Bloomberg reported.
The Justice Department and the Federal Trade Commission announced criteria for how they would evaluate so-called vertical mergers in the future. If settled, the guidelines would substitute rules that have not formally been updated since 1984 despite new thinking about how such deals influence competition.
Kimbell Royalty Partners to acquire mineral and royalty interests from Springbok for $175m.
Kimbell Royalty Partners, an owner of oil and gas mineral and royalty interests in c. 13m gross acres in 28 states, agreed to acquire mineral and royalty interests from Springbok Energy Partners, a purchaser of oil and gas mineral rights and royalties for $175m.
"This is an outstanding acquisition for Kimbell and highlights our competitive advantage in acquiring large, diversified mineral and royalty portfolios. Included with this acquisition is our first meaningful addition from the Delaware Basin since our initial public offering, which is an area where we are finally seeing opportunities that we believe have the right balance of existing and future drilling locations," Bob Ravnaas, Kimbell Chairman and CEO.
Kimbell is advised by Baker Botts and Kelly Hart & Hallman. Springbok is advised by Willkie Farr & Gallagher and TenOaks Energy Advisors.
Grubhub denies rumors of a sale.
Grubhub, an online food delivery company, stated that there is no sale process, denying rumors that it is considering strategic options that include a possible sale or an acquisition, Reuters reported.
“We felt it was important to clarify that there is unequivocally no process in place to sell the company, and there are currently no plans to do so,” Grubhub spokesperson.
Manulife closed a $1.5bn private equity fund. (FS)
Manulife Investment Management closed c. $1.5bn in commitments to Manulife Private Equity Partners, the first fund-of-funds product raised by Manulife.
The fund was backed by a global group of institutional investors, and AlpInvest Partners was acting as the fund's lead investor.
"The Fund attracted prominent institutional and high net worth clients from Europe, North America, and Asia, which demonstrates the strength of Manulife Investment Management's Private Markets platform and global reach," Steve Blewitt, Manulife Global Head of Private Markets.
Manulife was advised by Campbell Lutyens.
Sorrento receives a $1bn take-private offer from an unnamed PE fund. (FS)
Sorrento Therapeutics stated it had got an offer from a private equity fund interested in acquiring a majority of all of its outstanding shares, valuing the company at $993m, Reuters reported. The details of the bidder is not confirmed.
Shares of the company grew 67.74% to $5.72 before the bell, after the drugmaker said it was reviewing the non-binding proposal of up to $7 per Sorrento share.
Resilience Capital Partners completed the acquisition of Customer Technology Center Michigan from Delphi Technologies. (FS)
Resilience Capital Partners, a private equity firm, through its subsidiary Trialon, a provider of technical testing facilities, completed the acquisition of Customer Technology Center Michigan from Delphi Technologies. Financial terms were not disclosed.
"With this acquisition, Trialon is able to further broaden its service offering to existing and new clients and continue positioning itself as a value-added partner to its customers," Bassem Mansour, Resilience Capital Partners Co-CEO.
Royal Dutch Shell seeks a buyer for the Washington refinery.
Royal Dutch Shell is considering divesting its oil refinery in Anacortes, Washington, Reuters reported.
If completed, this and other asset sales currently underway would reduce Shell’s North American refining operations to large plants on the US Gulf Coast.
Oil and gas major Shell has publicly committed to selling more than $5 bn of assets per year in 2019 and 2020. The Netherlands-based company is trying to use its global scale to build a robust business as the world moves toward cleaner energy.
WeWork hits the brakes in New York, London, after IPO debacle.
The We Company, WeWork’s parent, expanded rapidly in New York and London, becoming both cities’ most substantial private-sector tenant thanks to piles of venture funding and a founder focused on breakneck growth. While that helped catapult the firm to become America’s most richly valued private start-up briefly, it also sparked intense scrutiny about the sustainability of that growth, which contributed to the ouster of founder Adam Neumann, Bloomberg reported.
The sharp slowdown in leasing in the three months through December follows a surge in new signings in the run-up to the company’s planned IPO, as it sought to present investors with a compelling growth story.
Goodyear launches a $100m venture capital fund. (FS)
Goodyear, one of the world’s largest tire companies, launched Goodyear Ventures, a new $100m venture capital fund.
Goodyear Ventures intends to make new investments in future mobility solutions over the following ten years. The firm will concentrate on partnering and investing in startups with a shared vision of sustainable, safe, and new mobility experiences that make life's connections easier every day.
TPG to establish Strategic Capital Fund, focused on public company investments. (FS)
Private equity giant TPG is raising a fund to invest in public companies and will offer its experience to aid better decision making, Bloomberg reported.
Strategic Capital Fund will focus on building minority positions in large companies. The fund will seek board seats and provide advice on addressing a range of corporate governance and environmental issues.
Casper Sleep files for US IPO.
Casper Sleep, the online mattress retailer whose investors include actor Leonardo DiCaprio and rapper 50 Cent, filed for an IPO with US regulators, Reuters reported.
Launched in 2014, Casper is one of a string of online mattress retailers, such as Purple, Nectar Sleep, and Tuft & Needle, that have squeezed the industry’s old players.
Casper’s IPO comes as the company has been expanding into brick-and-mortar retail, transitioning from temporary to permanent stores.
Baird elects two as North American M&A Co-Heads. (People)
Baird promoted Mike Lindemann and Todd Noffke as Co-Heads of North American M&A.
Lindemann and Noffke will enhance M&A product knowledge and technology throughout the business, and provide senior M&A origination and execution support to Baird’s industry teams.
GIC-backed GFL Environmental, PPD files for US IPO. (FS)
GFL Environmental of Canada and PPD, a drug development services provider, both backed by Singapore’s sovereign wealth fund GIC, have filed to list in the US, DealStreetAsia reported.
EMEA
Online food ordering company Takeaway wins the bidding war for Britain's Just Eat with an $8.1bn share offer, beating its South African rival Naspers.
Investors holding stakes more than 80% of Just Eat accepted Takeaway's all-share offer, passing a 50% threshold needed to make the offer unconditional. The merged company is set to be named as Just Eat Takeaway.com when the deal closes in the upcoming week.
"I wish to thank everybody involved, but especially the Just Eat staff, for their patience, in what must have been an uncertain time. Just Eat Takeaway.com is a dream combination, and I am very much looking forward to leading the company for many years to come," Jitse Groen, Takeaway Founder, and CEO.
Just Eat is advised by Goldman Sachs, UBS, Oakley Advisory, Linklaters, and Brunswick Group. Prosus is advised by JP Morgan, Morgan Stanley, Allen & Overy, and Finsbury. Takeaway is advised by Bank of America Merrill Lynch, Gleacher Shacklock, Lazard, Cravath Swaine & Moore, De Brauw Blackstone Westbroek, NautaDutilh, and Slaughter & May. Debt financing is provided by BNP Paribas, Citigroup, Deutsche Bank, Investec, JP Morgan, and Morgan Stanley.
CVC Growth Partners, a private equity firm, is set to invest c. $200m in EcoVadis, a provider of software services.
"We are delighted to partner with Frédéric, Pierre-Francois and the rest of the EcoVadis team in this next phase of growth for the company," Aaron Dupuis, CVC Senior Managing Director.
EcoVadis is advised by GP Bullhound.
Saudi Aramco raises IPO to record $29.4bn.
Saudi Aramco, a state-owned oil company, stated it had executed its “greenshoe option” to sell an additional 450m shares, raising the size of its IPO to a record $29.4bn, Reuters reported.
Aramco initially raised $25.6bn, which was itself a record level, in its December IPO, by selling 3bn shares at $8.53 a share. But it had indicated it could sell additional shares through the over-allotment of shares.
Brookfield and Temasek to team up for the $20bn Thyssenkrupp elevator bid. (FS)
Canada's Brookfield Asset Management has teamed up with Singapore state investor Temasek Holdings, in the auction for Thyssenkrupp’s $16.7bn elevator division.
Besides Temasek and Brookfield, four other consortia are bidding for the elevator unit are: first (Blackstone, Carlyle, CPPIB), second (Advent, Cinven, ADIA), third (Kone, and CVC), and Japan's Hitachi.
Thyssenkrupp’s supervisory board will meet on January 15 to discuss the auction’s progress and is expected to narrow the field of bidders, with only 2-3 to be short-listed for a final round of talks, DealStreetAsia reported.
ASI closes its eight private equity fund at $425m. (FS)
Aberdeen Standard Investments closed its eighth private equity fund at $425m.
The fund will invest in a strategically concentrated portfolio of small-cap private equity funds, direct investments, and secondary transactions, with a geographic focus on North America.
"We are pleased to have completed our fastest fundraise ever for our small buyout strategy, which we believe reflects investors’ appreciation for our disciplined investment approach, the depth of our team, and our consistent outperformance," Chris Demetriou, ASI CEO of Americas.
Geely considers acquiring a stake in Aston Martin.
China’s Geely Automobile in talks with Aston Martin management and investors as it considers investing in the British luxury carmaker, Reuters reported.
A stake sale could help to boost Aston’s prospects after it reported a loss in the third quarter and warned this week that 2019 profit would be almost halved from the previous year because of weak European markets.
GIC’s Spanish unit P3 Logistics is selling assets worth $111m. (FS)
GIC, a Singapore’s sovereign wealth fund, through its Spain-based subsidiary P3 Logistics, has reportedly hired JLL, a real estate service firm, for a planned sale of its assets in the logistics park worth $111m.
The investment giant has evaluated the divestment for months and could kick off the process in January with the involvement of JLL, DealStreetAsia reported.
Tenergie plans a new-share sale to fund growth.
Tenergie, a French solar farm developer and a financial partner, are considering selling new shares and plan to buy clean power operators to expand into the wind and hydropower sectors as demand for cleaner energy continues to increase, Bloomberg reported.
Tenergie wants to diversify its business to better position itself to sell renewable power directly to companies and communities. It is as France moves to reduce the country’s reliance on nuclear power and curb its remaining coal-fired capacity to make room for cleaner energy.
HSBC starts the sale process for the French retail business.
HSBC started the sale of its French retail operations, part of a push by interim CEO Noel Quinn to cut costs at Europe’s largest lender by assets, Bloomberg reported.
The bank has sent out an overview of the business to potential buyers, the people said, asking not to be identified as the information is private. HSBC is gauging interest from possible suitors, including rival French lenders La Banque Postale, Credit Agricole, Credit Mutuel, Milleis Banque, and BNP Paribas.
Blackstone divests its real estate portfolio to Heimstaden for $1.45bn. (FS, RE)
The Blackstone Group, together with its joint venture partner Round Hill Capital, agreed to divest a residential property portfolio to Heimstaden Bostad, a Swedish real estate firm, for $1.45bn.
The divestment will see Heimstaden gain ownership of the largest privately held portfolio of residential assets in the Czech Republic. The portfolio includes c. 42.5k homes.
London mansion sells for record-breaking $262m. (RE)
A Chinese property magnate is close to breaking London’s house-price record with the purchase of a 45-room mansion in Knightsbridge for more than $262m, Bloomberg reported.
The private family office of Cheung Chung Kiu has agreed to acquire the palatial home at 2-8a Rutland Gate, overlooking Hyde Park. The deal would be a bright spot for the UK capital’s moribund luxury property market, and a sign that the world's wealthiest are being lured by the weak pound as the UK‘s exit from the European Union draws near.
LSE hires Murray Roos as its new Head of Capital Markets. (People)
The London Stock Exchange has hired Citigroup’s co-head of stock trading to lead its traditional listings business, following a challenging year for capital raisings and trading volumes in the UK, FN reported.
Murray Roos, who co-led equities and securities services at Citi, will start at the LSE on April 1. He will join the exchange’s executive committee, reporting to CEO David Schwimmer.
Ares hires Stephane Etroy as Head of European private equity. (FS, People)
Ares Management hired Stephane Etroy from Caisse de dépôt et placement du Québec as head of European private equity, FN reported.
Etroy will join the firm on February 6 and will be based in London. He will lead Ares' European private equity operations and serve as a member of the group's corporate opportunities investment committee.
IKEA enters the UK shopping centers market.
IKEA’s shopping center business is spending $222m to acquire and improve a London mall in its first venture into Britain, backing it can win over a nation frequently doing its shopping online.
APAC
Reliance Infrastructure, a part of the debt-laden Anil Ambani group, receives principle approval form the National Highways Authority of India for substitution of its Delhi-Agra toll road to Singapore-based Cube Highways and Infrastructure for $519m.
Reliance Infra, which will receive equity payment of $238m from this transaction, said it would use 100% of the sale proceeds to pay off the company’s debt.
"The sale of the Delhi-Agra toll road is the first of many liquidity events to move the company towards becoming debt-free in 2020. We are grateful to all our creditors and various stake holders for having reposed their faith in the business and the management team. Cube III has the financial muscle and proven capability to successfully operate DA toll road for the entire course of the concession period until 2038," Reliance Infrastructure spokesperson.
New York-based hedge fund Tiger Global Management is set to invest $200m in K-12 learning app Byju’s, at an $8bn valuation.
“We are happy to partner with a strong investor like Tiger Global Management. They share our sense of purpose, and this partnership will advance our long-term vision of creating an impact by changing the way students learn,” Byju Raveendran, Byju's
Digital payments gateway provider PayU is set to acquire a majority stake and merge business with Mumbai-based consumer lending platform PaySense at $185m valuation.
This planned merger is aligned with PayU’s long term vision of orchestrating a fintech ecosystem in India by partnering with the right companies and offering multiple financial services.
"Providing more Indian consumers with access to credit is crucial to helping individuals grow and succeed. PayU is a natural partner for us as we both strive to make finance more simple, accessible, and transparent. We’re excited to start bringing our personal loan product to more consumers throughout India and truly democratize credit," Prashanth Ranganathan, PaySense Founder, and CEO.
Ant Financial, a FinTech company is set to invest $150m in online food delivery services provider Zomato at $3bn valuation.
"This is to inform you that Zomato Media has signed a definitive agreement to undertake a primary fund raise of up to $150 m from Antfin Singapore Holding (which is an existing shareholder of Zomato) and/or any of its affiliates. The transaction values Zomato at a pre-money valuation of $3 billion," Zomato.
Repsol considers divesting Malaysian assets.
Repsol, a Spanish oil company, is reviewing its global portfolio and considers options for divestment of its Malaysian upstream operations.
The Malaysian assets could attract interest from other energy firms in the region. The asset review comes as Repsol is working on a new strategic plan, which is expected to be presented in the first half of the year.
Luckin collects $778m in new funds.
Luckin Coffee, the Chinese challenger to Starbucks, raised a combined $778m from an additional share sale and a convertible bond offering, topping the amount fetched in its IPO last year, Bloomberg reported.
The coffee chain upstart, which opened its first store in Beijing in 2017, sold $378m in new shares at $42 each and a $400m five-year convertible. The fundraising came less than a year after it raised $645m in a US listing in May 2019.
Xiaohongshu to raise funds at $6b valuation. (FS)
Xiaohongshu, China’s social media, and e-commerce startup is in talks to raise funds at a valuation of about $6bn, Bloomberg reported.
The online platform, backed by Tencent and Alibaba Group, aims to raise about $400m to $500m. The company is working with an adviser on the financing plan and has sounded out potential investors. Its valuation reached c. $5bn last year.
Tsing-Yuan Capital closes two RMB funds. (FS)
Tsing-Yuan Capital, a Chinese private equity fund manager, closed two RMB-denominated funds to expand its capital pool of over $1.01bn for investment opportunities in China, DealStreetAsia reported.
The first fund will primarily invest in startups in the fields of clean technologies, intelligent manufacturing, IT, and healthcare.
The second fund will operate as a privately-run venture capital fund for investment opportunities in emerging industries like healthcare, advanced manufacturing, and new-generation IT.
Ctrip in talks with banks to follow Alibaba with Hong Kong listing.
Ctrip, a US-listed online travel giant, is talking to banks about a planned secondary listing in Hong Kong, putting the group at the head of a queue of Chinese companies expected to follow Alibaba in establishing an investor base closer to China, Reuters reported.
Ctrip, also known as Trip.com Group, has approached China International Capital, JPMorgan, and Morgan Stanley for its planned share sale in Hong Kong.
"The specific details of the listing reported are not true. The company does not have plans yet for a secondary listing," Ctrip.
China’s 58 Home seeks a $2bn US IPO.
58 Home, owned by China’s 58.com, is close to completing private fundraising en route to a US IPO that could value the online services platform at as much as $2bn, DealStreetAsia reported.
The business, known locally as 58 Daojia, is seeking funds to bankroll an expansion into China’s competitive online services arena. It’s now wrapping up pre-IPO financing round at a valuation of more than $1bn. Once that’s done, 58 Home intends to prepare for a US debut in which it will seek a valuation of between $1.5bn and $2bn.
SoftBank's Masayoshi Son to invest in Indonesia’s new capital. (FS)
Masayoshi Son, SoftBank Group CEO, revealed plans to invest in Indonesia’s new capital and to bring the latest technology and “a lot of artificial intelligence” to the smart city project, DealStreetAsia reported.
Unicorn Capital Partners raises $353.5m for the fourth fund. (FS)
Unicorn Capital Partners, a China-focused venture capital fund-of-funds, has made the first close of its fourth fund, Unicorn Partners Fund III, at $353.5m, attracting commitments from 64 investors, DealStreetAsia reported.
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