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AMERICAS
Britain's competition regulator said on June 19 it was investigating whether Hewlett Packard Enterprise's planned $14bn acquisition of Juniper Networks would result in competition concerns in the country.
The Competition and Markets Authority has until August 14 to decide whether it would refer the deal to a deeper probe, Reuters reported.
Juniper Networks is advised by Goldman Sachs, Skadden Arps Slate Meagher & Flom (led by Amr Razzak), and Joele Frank (led by Jed Repko). Financial advisors are advised by Paul Hastings (led by Steve Camahort). Hewlett Packard is advised by JP Morgan, Qatalyst Partners, Covington & Burling (led by J. D. Weinberg), Freshfields Bruckhaus Deringer (led by Martin McElwee, Jennifer Mellott, and Ninette Dodoo), Wachtell Lipton Rosen & Katz (led by Raaj Narayan, Benjamin M. Roth, Steven Green, and Andrew Brownstein), FGS Global (led by Drew Brown). Financial advisors are advised by Sullivan & Cromwell (led by Melissa Sawyer). Debt financing is provided by Citigroup, JP Morgan, and Mizuho Securities.
CapVest-backed Recochem, an automotive liquid solutions provider, completed the acquisition of auto care business from Centerbridge Partners-backed KIK Consumer Products, a manufacturers of consumer products. Financial terms were not disclosed.
"We are very excited about the opportunity to create a world-class, consumer centric automotive group that can deliver the very best solutions for our customers. Recochem, Prestone and Holts are highly complementary businesses, and the combined platform will offer customers a wide range of products across multiple categories that are experiencing consistent long-term growth. Today's transaction will provide the enlarged business and individual business units with significant opportunities to expand, develop and broaden our relationships with our key partners," Shawn Davies, Recochem CEO.
Recochem was advised by Harris Williams & Co, Arnold & Porter Kaye Scholer, Kirkland & Ellis, Willkie Farr & Gallagher and ReputationInc (led by Ben Valdimarsson). Centerbridge was advised by CG Sawaya Partners, Blake Cassels & Graydon, Weil Gotshal and Manges (led by Brian Gingold) and Kekst CNC (led by Jeremy Fielding).
The Home Depot, a home improvement retailer, completed the acquisition of SRS Distribution, a residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor, from Leonard Green & Partners and Berkshire Partners, two private equity investors, for $18.25bn.
"SRS is an excellent fit for The Home Depot – it's both complementary and additive to our growth. Their ability to quickly build leadership positions in each of their specialty trade verticals is a testament to the team's strong vision, leadership, culture and execution. SRS's outstanding customer service, capabilities, and expertise will help us drive value for our customers, associates and shareholders, and we're excited to welcome the SRS team to The Home Depot," Ted Decker, The Home Depot Chair, President and CEO.
Truelink Capital, a private equity firm, agreed to acquire air distribution technologies business from Johnson Controls, a producer of fire, HVAC, and security equipment for buildings. Financial term were not disclosed.
"Air Distribution Technologies has been a leading player in the commercial HVAC space for over 75 years, and has consistently delivered innovative, high-quality products to its customers, demonstrating a strong track record of excellence. Our objective will be to expand the business through partnership with management in driving substantial commercial and operational improvements to strengthen Air Distribution Technology's market-leading position and better serve their customers. I wish to thank Johnson Controls for being a great transaction partner and for entrusting Truelink Capital with the Air Distribution Technologies business," Todd Golditch, Truelink Co-Founder and Managing Partner.
Johnson Controls is advised by Robert W Baird and Cleary Gottlieb Steen & Hamilton.
JTC, a professional services business, agreed to acquire FFP, a provider of specialist fiduciary services to fund, trust and corporate clients, for $110m.
“We are excited to welcome the whole FFP team to the JTC family. FFP has an excellent reputation and significant subject matter expertise with strength in depth across the team. We believe that access to JTC’s global platform will accelerate FFP’s growth prospects with substantial opportunities across the Group as we develop our Governance Services business line. The combination of our businesses will cement our leading position in the Cayman Islands, which is one of the pre-eminent financial jurisdictions globally. As always, cultural alignment is key and, like JTC, FFP consistently invests in its people and capabilities," Nigel Le Quesne, JTC CEO.
Morgan Stanley Tactical Value, a flexible, non-control private equity and credit investment platform within Morgan Stanley Investment Management, led a $100m investment in Clip, an Mexican digital payments and commerce enablement platform, with participation from General Atlantic, Ribbit Capital, Goldman Sachs, Softbank Latin America Fund, Viking Global Investors, Dalus Capital, Banorte, Televisa, Visa, Amex Ventures, Angel Ventures Mexico and Endeavor Catalyst.
“The investment from these two globally renowned investors is a testament to Clip’s opportunity to continue to lead the digital transformation of Mexico’s commerce ecosystem, and more broadly, provides even further validation of our mission to open access to digital payments, financial services and technology solutions to all SMBs in the country. We are excited to leverage this financing round to continue to expand and strengthen our offerings to empower more stakeholders across Mexico’s economy,” Adolfo Babatz, Clip Founder and CEO.
Caesars Entertainment, an American casino and hotel company, completed the acquisition of WynnBET’s Michigan iGaming business from Wynn Resorts, a developer and operator of high end hotels and casinos, and WynnBET, a gambling facilities and casinos services. Financial terms were not disclosed.
“Caesars Entertainment would like to thank the Sault Ste. Marie Tribe of Chippewa Indians and the Michigan Gaming Control Board for their collaboration through this process,” Eric Hession, Caesars President.
Katy Perry-backed food products firm Bragg explores sale. (FS)
Bragg Live Food Products, backed by celebrities Katy Perry and Orlando Bloom, is exploring a sale that could value the maker of apple cider vinegar at more than $500m, including debt, Reuters reported.
The Santa Barbara, California-based company, which also counts investment firm Swander Pace Capital among its investors, is working with Bank of America to solicit interest from potential buyers, which include private equity firms.
US hospitals scrap $320m deal after FTC court win.
Healthcare company Novant Health said on June 18 that it is abandoning a $320m deal to acquire two North Carolina hospitals from Community Health Systems after a US appeals court temporarily blocked the transaction, Reuters reported.
Siding with the US Federal Trade Commission, the Richmond, Virginia-based 4th US Circuit Court of Appeals ruled on June 18 to suspend the deal while the FTC challenged a lower court's decision that let the acquisition move forward.
Qualcomm reaches a $75m settlement over sales and licensing practices.
Qualcomm agreed to pay $75m to resolve a lawsuit in which shareholders accused the chipmaker of defrauding them by hiding its anticompetitive sales and licensing practices, Reuters reported.
Qualcomm and six individual defendants, including former chief executives Paul Jacobs and Steven Mollenkopf, denied wrongdoing in agreeing to settle.
China approves autonomous driving startup Momenta's US IPO.
China's securities regulator said it has approved autonomous driving startup Momenta Global's initial public offering in the United States, Reuters reported.
Momenta plans to issue up to 63m ordinary shares and lists on the Nasdaq Stock Market or the New York Stock Exchange. China in June granted approval to a first group of nine automakers to carry out tests on vehicles with advanced autonomous driving technologies on public roads, as part of a plan to accelerate adoption of self-driving cars.
Hamilton Lane $5.6bn close showcases secondaries demand. (FS)
Asset manager Hamilton Lane has closed a $5.6bn fund that will buy and sell private equity assets on the secondary market.
As its sixth secondaries fund, it's also Hamilton Lane's largest vehicle ever, demonstrating growing interest from limited partners in gaining exposure to returns generated on the secondary market.
EMEA
Vitol, a Swiss-based Dutch multinational energy and commodity trading company, completed the acquisition of a 35% stake in Saras, an Italian energy multinational corporation with operations in petroleum refining, marketing, transportation and power generation, for €595m ($502m).
"We are pleased to have completed this important step. We look forward to deploying our expertise and working with the local management team on this next chapter for Saras. We are mindful of our responsibilities, both to the Company and its stakeholders, and remain committed to investing in Saras’s future," Russell Hardy, Vitol CEO.
Vitol was advised by JP Morgan, Chiomenti (led by Marco Maugeri) and Weil Gotshal and Manges (led by Murray Cox). The Moratti family was advised by Bank of America, Four Partners and Linklaters (led by Roberto Casati).
Idilia Foods, a food business group, completed the acquisition of a 50% stake in Cacaolat, a first bottled milkshake, from Damm, a Spanish brewery. Financial terms were not disclosed.
In this way, Cacaolat will join its already leading and iconic brands – Cacaolat, Letona and Laccao – with the management, marketing and distribution of the milkshake brands ColaCao Energy, ColaCao Shake and Okey. This will allow to continue promoting the development of the milkshake category and the presence of these brands in the national and international market.
Idilia Foods was advised by AZ Capital and Clifford Chance (led by Guillermo Guardia). Damm was advised by Watson Farley & Williams (led by Javier Ester).
STAR Capital, a private equity firm, and Ackermans & van Haaren, a construction engineering company, agreed to acquire V.Group, a ship management company, from Advent, a private equity firm. Financial terms were not disclosed.
“I am truly excited to welcome such well-respected, long-term investors with deep shipping sector experience to assume the ownership of V. I have no doubt that this transaction will further strengthen V., allowing us to accelerate investments across our shipping and services platform to the benefit of our customers, employees and the industry," René Kofod-Olsen, V.Group CEO.
V.Group is advised by Jefferies & Company and BLUE Communications.
Carrier-backed Sensitech, a provider in supply chain visibility, providing innovative solutions for maintaining the quality and integrity of precious cold cargo, agreed to acquire cold chain monitoring systems business from Berlinger, a high-tech cold chain monitoring systems provider. Financial terms were not disclosed.
"The global cold chain monitoring sector demands a worldwide presence and correspondingly flexible solutions in its various markets. In transferring its Berlinger cold chain monitoring systems business to Sensitech in the USA, which is a global leader in supply chain visibility, the Berlinger-Schwyter family, owners of the Berlinger Group, are seeking to ensure the business’s sustainable further growth and development and a broader positioning of its products and services worldwide," Berlinger.
Carrier is advised by Lenz & Staehelin (led by Simone Ehrsam). Berlinger is advised by KMES Partner (led by Hans Klaus).
Bullhorn, a company that provides cloud-based CRM solutions, completed the acquisition of Textkernel, a sourcing AI solutions provider, from Main Capital Partners, a software investor managing investment funds. Financial terms were not disclosed.
"Textkernel powers over 2k customers globally, including eight of the top 10 staffing agencies worldwide and Fortune 500 companies. A longtime, trusted partner to the staffing and recruitment industry, Textkernel and Bullhorn share a crucial strategic goal: empowering recruiters to digitally transform their business for the future and maximize the use of AI in the industry. This acquisition accelerates our AI strategy and furthers our mission of powering organizations to put the world to work," Bullhorn.
Abacus Group, an IT managed services provider to financial services firms globally, completed the acquisition of Tribeca Technology Group, a UK-based IT MSP also serving the financial services industry. Financial terms were not disclosed.
"I'm delighted to welcome Tribeca and its clients to Abacus Group. Tribeca's reputation and long-standing client relationships are indicative of extending our core values as we further establish Abacus as the premier provider of managed services across the UK for financial services institutions. We are committed to leadership, innovation, operational excellence and exceptional client experiences in this important market, and this acquisition demonstrates just that," Anthony J. D’Ambrosi, Abacus Group CEO.
Abacus Group was advised by Whiteoaks International.
Eni taps advisers to sell $1.1bn Ivory Coast stake.
Eni is planning to sell a stake in its Ivory Coast exploration operations in a potential deal that could be worth about €1bn ($1.1bn), Bloomberg reported.
The Italian oil company is working with advisers, including Standard Chartered, on the possible stake sale. Eni could sell up to 30% of the business and is drawing interest from other energy companies, including those from Asia.
UK's Vodafone sells a $1.8bn stake in India's Indus Towers.
Vodafone Group sold a bigger-than-planned 18% stake in India's Indus Towers for $1.82bn on June 19, with local telecom operator Bharti Airtel picking up shares to increase its stake to nearly 50%, Reuters reported.
UK's Vodafone, which owns a 21.5% stake in mobile-tower operator Indus, had initially planned to sell a 10% stake, but strong investor demand promoted it to nearly double the sale size.
UK fintech Zilch taps Deutsche Bank to raise $127m debt. (FS)
British fintech firm Zilch Technology raised £100m ($127m) in a securitized debt financing deal arranged by Deutsche Bank, as the buy-now-pay-later firm seeks to expand before a planned initial public offering next year, Bloomberg reported.
The funds will help Zilch develop new products for a broader base of customers. The London-based company serves more than 4m customers and processes over 10m monthly payments. It was valued at $2bn in a Series C funding round in 2022.
Foresight Group plans to inject $127m into North West businesses. (FS)
Private equity and infrastructure investor, Foresight Group, has announced ambitions to invest £100m ($127m) into companies in North West England. The move represents the firm's second fund specifically for the region.
The new £100m ($127m) private equity fund looks to invest in fast-growing firms across Greater Manchester, Cheshire, Lancashire, the Liverpool City Region, and North Wales. Previously backed firms range from the likes to Indian restaurant group, Mowgli Street Food, lab products company ONFAB and financial planning firm, Five Wealth.
Brian Sheth's Haveli joins rush of firms setting up in Abu Dhabi. (FS)
Abu Dhabi is set to invest in software strategies run by Brian Sheth, whose private equity firm will open an office in the emirate as part of the agreement, Bloomberg reported.
Abu Dhabi Catalyst Partners - a $1.65bn joint venture between Mubadala Capital and Alpha Wave Global will commit money to technology-focused Haveli Investments. In return, the Austin-based firm will set up a base in Abu Dhabi Global Market - its first outside North America.
Spain's BBVA plans to roll out digital bank in Germany.
Spain's second largest bank, BBVA, is planning to extend its digital banking services to Germany as it seeks to boost customer numbers and mirror its success in Italy, Reuters reported.
BBVA, which recently submitted a hostile €12.28bn ($13.2bn) takeover offer for Sabadell, has invested heavily in digital banking services and, like larger Spanish rival Santander, has been expanding in emerging economies, such as Mexico, when it struggled in the past to boost income in mature markets.
Texan investor may bid for football team with communist past. (FS)
Todd Interests is weighing a bid to buy Paris-based football club Red Star FC from fellow US investment firm 777 Partners, Bloomberg reported.
Dallas-based Todd Interests could team up with former French football player Peguy Luyindula for its bid. Todd Interests specializes in distressed real estate investing and a deal for Red Star would be its first involving a football club. Luyindula previously played for Paris Saint-Germain FC.
Luxury sneaker maker Golden Goose postpones planned IPO. (FS)
Golden Goose Group pulled the plug on its Milan listing as a selloff in luxury stocks and the return of political risk in Europe threatened to dent appetite for the Permira-backed sneaker firm, even after it tempered its valuation expectations, Bloomberg reported.
The company decided to shelve the initial public offering because of a "significant deterioration in market conditions". Financial markets have been roiled by the announcement of a general election in France, and that has exacerbated months of declines in luxury stocks.
NorthWall Capital raises more than $686m for European opportunities strategy. (FS)
NorthWall Capital, a leading credit investment firm delivering private capital solutions to counterparties in Western Europe, today announces the final close of its flagship NorthWall European Opportunities Fund II and associated vehicles, attracting more than €640m ($686m) in investor commitments.
The Fund and associated vehicles surpassed the €500m ($536m) target, receiving strong support from new and existing global institutional investors.
APAC
Zurich Insurance Group, a Swiss insurance company, completed the acquisition of a 70% stake in Kotak Mahindra General Insurance, a general insurance company, from Kotak Mahindra Bank, an Indian banking and financial services company, for $671m.
“The acquisition of Kotak General Insurance sets the way forward for Zurich to be a leading player in a very significant growth market – India. This is a key strategic step for Zurich. India’s insurance market offers immense potential, and together with Kotak, we are committed to supporting its growth and development. We have the global scale, strong expertise in managing complex risks, digital capabilities, and technology leadership to bridge the insurance protection gap. Our goal is to build resilience among Indian customers and businesses through simple and innovative solutions," Tulsi Naidu, Zurich Insurance CEO.
Japan bank to overhaul investments as wrong-way rate bets trigger bond losses.
Norinchukin Bank will consider investing in a range of assets as it braces for massive losses on the sale of roughly JPY10tn ($63bn) in US and European sovereign bonds, Bloomberg reported.
Japan's biggest agricultural bank will dispose of the foreign bonds gradually during the fiscal year ending in March. It expects a net loss of JPY1.5tn ($9.5bn) for the year, triple the previous estimate of JPY500bn ($3.17bn).
TSMC nears $1tn valuation as target upgrades boost rally.
The bullish chorus on Taiwan Semiconductor Manufacturing is growing even louder as a stock rally puts its market capitalization closer to the $1tn milestone, Bloomberg reported.
A flurry of Wall Street brokerages have lifted their price targets for TSMC this week, citing surging AI-related demand and potential price hikes in 2025 to drive up earnings. Goldman Sachs is the most bullish of all, increasing its price target by 19% to TWD1160 ($35.8) as it sees three- and five-nanometer chip manufacturing prices advancing by a "low single-digit percentage."
Carlyle sets sights on 300 Japanese businesses as PE deals boom. (FS)
US investment fund Carlyle Group is studying around 300 Japanese businesses as part of its pipeline, a sign of the continuing boom in private equity deals in the country.
"We look at a lot of deals every day. Even though competition is increasing, if you look at the number of potential deals, there are actually not enough general partners to do them," Kazuhiro Yamada, Japan buyout advisory team Co-Head.
China plans new measures to attract venture capital investment.
China plans to introduce fresh measures to encourage venture capital into the country's technology sector, including from overseas, Bloomberg reported.
International investors will be able to set up yuan funds in China to facilitate domestic investments, while qualified institutions will be encouraged to issue corporate bonds and debt financing instruments to help fund their investments, the government said in a notice on June 19. State-owned enterprises will also be urged to invest in industry leaders with advanced technologies.
Hyundai's IPO is poised to boost Indian automakers' valuations.
Hyundai Motor India's plan for one of India's largest share sales may further boost valuations for the nation's already-buzzing automakers, Bloomberg reported.
The listing may value the South Korean carmaker's Indian unit at $25bn. That would make it the nation's fourth biggest automaker by market value, a milestone analysts say bodes well for the nation's auto sector.
Didi IPO would give Hong Kong its dream comeback.
Hong Kong needs a big initial public offering. The city's benchmark Hang Seng Index is up 6.4% this year and some decently sized convertible bond deals are starting to appear. A sizeable float could provide momentum to get the stock market closer to its 2021 all-time high; currently, it is more than 40% below that mark. Didi Global is the obvious candidate, Reuters reported.
The Chinese ride-hailing firm has been meeting with US investors and may be eyeing a Hong Kong listing as early as next year.
GCP-backed Lok Capital holds first close of $276m maiden new energy fund. (FS)
Lok Capital, a nascent new energy asset management platform in China, announced on June 19 the first close of its maiden fund, which targets to raise CNY2bn ($276m) in total, DealStreetAsia reported.
It is arguably the first asset management firm in China to specialize in distributed energy resources, which refer to small-scale energy resources usually situated near sites of electricity use.
Vivriti AM launches $240m private credit fund for Indian SMEs. (FS)
Vivriti Asset Management, a Chennai-based private credit firm, plans to raise up to INR20bn ($240m) for its Diversified Bond Fund Series II, its third such vehicle. The fund will have a five-year tenor and aims to deliver a pretax annual rupee return of 15% to 16%.
The new fund will focus on financing profitable operating companies where cash flows can be predicted. It will target consumer goods, healthcare, infrastructure and manufacturing.
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