Daily Review

 

 

 

Greenlane and KushCo announce the completion of a key regulatory condition. 
 

Greenlane, a seller of cannabis accessories, child-resistant packaging, and specialty vaporization products, and KushCo, a provider of ancillary products and services to the legal cannabis and CBD industries, announced the expiration of the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to close in the third quarter of 2021.

 

"We welcome this latest development in the formation of the combined company and look forward to continued progress on the remaining steps required to complete the transaction. We are excited to begin our work together and to begin realizing the potential opportunities and proposed synergies provided by this transformational combination to accelerate and execute on the significant market opportunities in our evolving industry," Nick Kovacevich, KushCo Co-founder, Chairman and CEO.

 

KushCo is advised by Jefferies & Company, Reed Smith and Caldwell Strategic Consulting. Jefferies & Company is advised by White & Case. Greenlane is advised by Canaccord Genuity, Cowen & Company, Morrison & Foerster, Potter Anderson & Corroon and Mattio Communications. 

Bain Capital-backed US LBM to acquire ACS from Angeles and Clearlake. (FS)
 

Bain Capital-backed US LBM, a distributor of specialty building materials, agreed to acquire American Construction Source, a national building materials distribution platform, from Angeles Equity Partners and Clearlake Capital Group, two private equity firms. Financial terms were not disclosed. The transaction is expected to close during the third quarter of 2021 and is subject to customary closing conditions, including requisite regulatory approvals.

 

"With the addition of the ACS portfolio, US LBM will strengthen our position in the Midwest and California, and expand our reach to Colorado and Washington, two quickly growing construction markets. We look forward to working with the ACS team and their local operators to continue leveraging their strong relationships, experience and teams to grow in their respective markets," L.T. Gibson, US LBM President and CEO.

 

ACS is advised by Jefferies & Company, Moelis & Co, Sidley Austin and Simpson Thacher & Bartlett. Clearlake is advised by Lambert & Co. Bain Capital is advised by Kirkland & Ellis. Debt financing to US LBM is provided by Barclays and Credit Suisse.

Algoma Steel, an independent steel producer, agreed to go public via a SPAC merger with Legato Merger in a $1.7bn deal. The PIPE includes significant investments from strategic steel industry participants, as well as investments from Legato's Chairman, TD Wealth Management, Vantage Asset Management, JC Clark, Hite and Goodwood Fund.

"The proposed transaction will provide Algoma with investment capital and an enhanced capital structure to support further transformative investments that are expected to drive improved financial performance and sustainable returns through the steel pricing cycle," Michael McQuade, Algoma CEO.

 

Legato Merger is advised by BMO Capital Markets, EarlyBirdCapital, Maison Placements Canada and Graubard Miller. Algoma is advised by Jefferies & Company, Goodmans and Paul Weiss Rifkind Wharton & Garrison.

HIG Capital agreed to acquire CORA Physical Therapy, an outpatient rehabilitation company, from Gryphon Investors, a private equity firm. Financial terms were not disclosed.

“We are excited to partner with the CORA team. We have been very impressed by CORA’s track record of growth and reputation for quality, and we believe there is significant opportunity ahead to continue the Company’s mission. We look forward to supporting CORA in both organic and acquisition-driven growth in its next stage of evolution," Alok Sanghvi, HIG Capital Managing Director.

CORA is advised by Jefferies & Company and Kirkland & Ellis. HIG Capital is advised by Harris Williams & Co, Houlihan Lokey and McDermott Will & Emery. Gryphon is advised by Raymond James and Lambert & Co. 

BDT Capital Partners, a merchant bank, agreed to acquire Culligan International, an American water treatment company, from Advent International and Centerbridge Partners. Financial terms were not disclosed.

“Culligan is the innovative pioneer in clean and safe water solutions that has grown to become one of the world’s most trusted brands, led by Scott Clawson and a highly-experienced management team who share our commitment to providing families and communities with healthier water while reducing plastics consumption,” Scott Hasley, BDT Capital Partners Managing Director.

Centerbridge is advised by Weil Gotshal and Manges and Kekst CNC. Advent International is advised by Weil Gotshal and Manges and Finsbury Glover Hering. Culligan International is advised by Citigroup and Morgan Stanley. BDT is advised by Davis Polk & Wardwell.

Hydrofarm, an independent distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture, agreed to acquire House & Garden, which produces and distributes premium-grade plant nutrients and fertilizers across the globe, for $125m. 

“House & Garden offers a strong product line of plant nutrients that will strengthen our position in the nutrient sector and complement our rapidly expanding portfolio of premium products for controlled environment agriculture. House & Garden’s expansive distribution network across nearly 40 states and 10 countries provides a tremendous opportunity for us to extend our global reach and market penetration,” Bill Toler, Hydrofarm Chairman and Chief Executive Officer.

Hydrofarm is advised by Rothschild & Co, Cozen O'Connor, ICR and LAK Public Relations. House & Garde is advised by Deloitte and Dentons. 

Blackstone Tactical Opportunities, an opportunistic investing platform, completed the investment in Walker Edison, a supplier of furniture with an exclusive focus on the e-commerce channel. Financial terms were not disclosed.

"Adding Blackstone as a partner alongside Prospect Hill is an exciting step in our evolution as a data-centric e-commerce enabler. Our hyper-growth has been driven by our pivot to data, and we believe that growth will only accelerate by partnering with Blackstone's unique offerings in data science, logistics, and supply chain as we continue to expand across the globe," Brad Bonham, Walker Edison Co-Founder and CEO.

Walker Edison was advised by Goldman Sachs, Lincoln International and Ropes & Gray. Blackstone was advised by Simpson Thacher & Bartlett.

Bregal Sagemount, a growth equity firm, completed a $130m investment in Printful, a print-on-demand drop shipping and fulfillment company.

"This investment confirms the strength of Printful's position and also shows that we operate in an industry where there is significant growth potential. We look forward to partnering with Bregal Sagemount as we continue our journey,” Davis Siksnans, Printful CEO and Co-founder.

Bregal Sagemount was advised by Goodwin Procter. Printful was advised by Rothschild & Co and Latham & Watkins.

L Catterton completed the acquisition of a majority stake in Kodiak Cakes, a food producer. Kodiak's existing shareholders, including Sunrise Strategic Partners, Trilantic North America, and the company's founders and management team, will continue to own a significant minority stake in the company going forward. Financial terms were not disclosed.

"Since its first wagonload of flapjack mix, Kodiak has brought an authenticity and commitment to simple, wholesome ingredients that has allowed it to become one of the most disruptive food platforms in America. We look forward to working closely with the entire Kodiak team to grow the brand together and inspire more consumers to pursue healthier eating and live an active, outdoor lifestyle," Andrew Taub, L Catterton Managing Partner.

Kodiak Cakes was advised by Houlihan Lokey and Lippe Taylor. L Catterton was advised by Joele Frank. 

Pemex to acquire Deer Park Refining from Shell for $596m.
 

Pemex, a petroleum company, agreed to acquire Deer Park Refining, an oil refinery, from Royal Dutch Shell, an oil and gas company, for $596m. The transaction is expected to close in Q4 2021.

 

"Shell did not plan to market its interest in the Deer Park refinery; however, following an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them," Huibert Vigeveno, Shell Downstream Director.

 

Pemex is advised by Barclays.

Saputo to acquire Wisconsin Specialty Protein's Reedsburg facility and Bute Island Foods for $155m.
 

Saputo, a Montreal-based Canadian dairy company, agreed to acquire the Reedsburg facility, a manufacturer of value-added ingredients such as goat whey, organic lactose and other dairy powders, from Wisconsin Specialty Protein, a manufacturer of specialty whey protein products, and completed the acquisition of Bute Island Foods, a manufacturer and supplier of dairy, lactose and gluten free vegan cheese products, for $155m.

 

"We are delighted to welcome the Bute Island Foods team and the wealth of knowledge they bring to our global family. Our commitment remains to expand our footprint in the dairy alternatives space to meet the changing demands of our customers and consumers. This investment marks an important milestone that will allow us to accelerate our growth in this area globally, putting innovation at the forefront of our priorities," Lino A. Saputo, Saputo Chair of the Board and CEO.

Gallant Capital Partners, a Los Angeles-based investment firm, completed the investment in Valor Global, a global provider of outsourced business processing and customer care solutions. Financial terms were not disclosed.

“Gallant is the ideal partner for Valor as we enter into the next phase of our growth. As a family-owned and operated business since 2004, it was important for us to find a partner who shared our core values and our deep commitment to customer service and employee development. Gallant’s operational capabilities and expertise in strategic acquisitions make them the perfect partner as we elevate Valor to the next level. We could not be more excited about this partnership and what it will mean for our customers, employees and community,” Simer S. Mayo, Valor CEO.

Coatue Management, a technology investment platform, led a $250m Series C funding round in Aurora Solar, a software platform for solar sales and design, with follow-on participation from existing investors ICONIQ Capital, Energize Ventures, and Fifth Wall.

"This funding will help us accelerate our vision, as more solar companies choose to grow their business using digital and remote solutions rather than manual ones," Sam Adeyemo, Aurora Solar Co-Founder and CRO.

BigBear, an artificial intelligence company, is in talks to go public through a merger with private equity firm GigCapital-backed GigCapital4, a blank-check firm. 

The special purpose acquisition company is seeking to raise equity and convertible debt to support a deal that’s set to value the combined entity at more than $1.5bn. Terms could change and as with all transactions that aren’t yet finalized, it’s possible talks could collapse, Bloomberg reported. 

Authentic Brands Group, an American brand management company, is exploring an IPO as early as this year. The company could seek a valuation of about $10bn when it goes public.

The New York-based company has held discussions with potential advisers about an initial public offering. The plans aren’t final and the size and valuation of the deal could still change.

General Atlantic-backed Centessa Pharmaceuticals, a biopharma company, is aiming for a valuation of up to $1.7bn in its initial public offering in the United States. Centessa said it would list on the Nasdaq under the symbol “CNTA”.

Centessa is offering 15m American depositary shares, each representing one ordinary share, for a price between $18 and $20 per ADS. At the top end of the range, the IPO would rake in $300m, Reuters reported. 

Morgan Stanley, Goldman Sachs, Jefferies and Evercore are the underwriters for the offering.

Kaszek, a venture capital firm, has raised about $1bn in two funds aimed at investing in Latin American companies. 

Kaszek Ventures V fund will invest $475m in early-stage companies, while the rest would be deployed in later-stage portfolio companies through its Opportunity II fund.

DBAY Advisors, an asset management firm, agreed to acquire Telit Communications, an IoT enablement provider, for £307m.

"Telit has transformed in recent years and is now a business built on strong financial, operational and governance foundations. Whilst we believe that Telit is well positioned to capitalise on growth opportunities in its markets, the Cash Offer represents an opportunity for Shareholders wanting to realise their investment in cash to do so at a material premium to the historical share price of Telit," Simon Duffy, Telit Chair of the Board.

Telit is advised by finnCap, Rothschild & Co, CMS and FinElk. DBAY Advisors is advised by Investec, Hogan Lovells and Temple Bar Advisory.

Vonovia to acquire Deutsche Wohnen for €18bn.
 

Vonovia, a real estate company, agreed to acquire Deutsche Wohnen, a German property company, for €18bn. After a successful completion of the transaction the combined company is to operate under the name "Vonovia". 

 

"The market environment has become increasingly similar for Vonovia and Deutsche Wohnen in recent years. Now is the right moment to combine the proven performance and strengths of both companies. Together we will create new perspectives for our employees, our tenants and our owners," Michael Zahn, Deutsche Wohnen CEO.

 

Deutsche Wohnen is advised by Deutsche Bank, Goldman Sachs, JP Morgan, UBS and Sullivan & Cromwell. 

Heimstaden Bostad to acquire Budimex's newbuild portfolio for $373m.
 

Heimstaden Bostad, a residential property company, agreed to acquire a newbuild portfolio with ~2.5k homes from Budimex, a construction engineering company, for $373m. Construction will begin in 2021 and the projects will be completed between Q1 2023 and Q1 2025.

 

"This expansion will strengthen our presence and make us a leading provider of rental housing in Poland. It also enables the establishment of an efficient management platform that will provide Friendly Homes to our Polish customers for years to come," Stanislav Kubáček, Heimstaden Senior Managing Director of Investment Team for CEE and Germany.

 

Heimstaden Bostad is advised by Arcadis, Leach & McGuire, Deloitte, Dentons and JLL. 

PAI Partners is set to acquire a minority stake in Apave Group, an engineering consulting firm, from GAPAVE, the sole shareholder association of Apave. Financial terms were not disclosed.

“I am delighted to be able to start a new chapter in the life of the Group. The arrival of PAI Partners as a growth partner alongside us should allow us to succeed in our development ambition in France and internationally. We now have all the cards in hand to achieve our objectives and become one of the world leaders in our market by being recognized by our customers for our know-how and the quality of our solutions," Philippe Maillard, Apave CEO.

Apave is advised by Brunswick Group. PAI Partners is advised by DGM Conseil and Greenbrook.

Keensight Capital, a private equity company, agreed to acquire a majority stake in Symeres, a small molecule contract research and manufacturing organization, from Gilde Healthcare, a specialized healthcare investor. Financial terms were not disclosed.

"With Keensight Capital’s investment, we plan to further extend and expand our range of drug discovery and development services. We believe that Keensight’s sector expertise and global reach will be a great asset to the company’s development. We are certain that our combined efforts will lead to an unmatched offering for our clients in the pharmaceutical and biotechnology industries,” Eelco Ebbers, Symeres Co-Founder and CEO.

Symeres is advised by Rothschild & Co. Keensight Capital is advised by Citigate Dewe Rogerson. Gilde Healthcare is advised by LifeSci Public Relations.

Intermediate Capital Group, a global alternative asset manager, offered to acquire a majority stake in Circet, a telecommunications network service provider, from Advent International. Financial terms were not disclosed. 

“We are proud to have helped Circet develop into not only a French champion but also the undisputed leader in telecom infrastructure services in Europe. This journey is emblematic of Advent’s DNA: supporting visionary management teams, which have strong ambitions to grow and transform their sectors,” Michael Ogrinz, Advent Partner and Head of France.

Advent International is advised by Taddeo and Tulchan Communications.

Tailwind Energy to acquire a 27.5% stake in Shearwater field from BP. 
 

Tailwind Energy, an oil and gas company, agreed to acquire a 27.5% stake in Shearwater field, a gas field, from BP, a British multinational oil and gas company. Financial terms were not disclosed. 

 

Tailwind explained that the transaction, which is subject to partner and regulatory approvals, furthers its growth strategy by adding another high-quality producing asset to the portfolio.

Activist investor Elliott Investment Management disclosed a stake of about 3.1% in UDG Healthcare, weeks after the pharmaceutical services company agreed to be taken over for $3.7bn. 

Elliott’s stake in UDG, as disclosed in a filing, makes the New York-based hedge fund among the top five shareholders in the healthcare company, Reuters reported. 

UDG’s largest shareholder, Allianz Global Investors, which has an 8.6% stake, said last week it opposes the proposed deal as it is “opportunistic and significantly undervalues UDG and its prospects”.

The National Basketball Association is expanding in Africa through a deal that values its operations on the continent at $1bn, Bloomberg reported. 

Private equity firm Helios Fairfax Partners invested in the new African entity alongside Tunde Folawiyo, chairman of Yinka Folawiyo Group. Former NBA players Dikembe Mutombo, Junior Bridgeman, Luol Deng, Grant Hill and Joakim Noah also invested. Altogether, the investors have acquired an 8% stake.

The NBA will spend the cash building infrastructure such as offices, courts and stadiums and work to boost local interaction with fans and talented players, NBA Commissioner Adam Silver said. The NBA may ultimately play some regular-season games in Africa. The Basketball League Africa, the NBA’s first collaboration on a league outside of North America, is currently playing its inaugural season.

Alcentra, an asset management firm, announced the final close of the Alcentra Structured Credit Opportunities Fund IV at $484m.

The fund’s objective is to generate attractive absolute and risk-adjusted returns through opportunistic investing in structured credit debt and equity securities in the US and Europe. The fund’s investors include leading sovereign wealth, public, and corporate pension funds, Not for Profits and Insurance from Asia, Europe, and the US.

“The past year has been an extraordinary year for the structured credit market, and certainly one to remember. We're thrilled to have successfully completed the fundraising for ASCOF IV. This will enable us to continue to take advantage of the exciting opportunities we see in the structured credit markets, and in particular in CLO tranches," Cathy Bevan, Alcentra Portfolio Manager.

SoftBank Vision Fund 2 completed a $175m investment in Riiid, a South Korean AI tutorial startup.

“Riiid wants to transform education with AI, and achieve a true democratization of educational opportunities. This investment is only the beginning of our journey in creating a new industry ecosystem and we will carry out this mission with global partnerships," YJ Jang, Riiid CEO.

 

Tencent-backed Kanzhun, a Chinese online recruitment platform, has filed to raise up to $100m in an initial public offering in the US as it seeks funds to support its expansion plans. It plans to list on the Nasdaq under the symbol BZ.

Kanzhun, whose core product is job board Boss Zhipin, has not specified the number and price of American depositary shares it intends to sell, and its filing is heavily redacted.