AMERICAS
Freight rail customers are opting for Canadian Pacific Railway, a Canadian Class I railway, to win the bidding war for Kansas City Southern, a transportation holding company. Customers cite increased competition and better service.
Previously, rival Canadian National Railway has proposed to combine with Kansas City Southern in a cash-and-stock transaction valued at $33.7bn which beats the $29bn offer of Canadian Pacific.
"The end-to-end CP-KCS transaction will improve service options, with new single-line hauls and broader access to markets across North America," Dean McQueen, Vice-President of Merchandising and Transportation at Viterra, a Canadian grain handler.
KCS is advised by Bank of America, Morgan Stanley, Baker & Miller, Davies Ward Phillips & Vineberg, Wachtell Lipton Rosen & Katz, White & Case, WilmerHale and Joele Frank. Financial advisors are advised by Willkie Farr & Gallagher. CN is advised by JP Morgan, RBC Capital Markets, Cravath Swaine & Moore, Norton Rose Fulbright, Sidley Austin, Stikeman Elliott, Torys, Brunswick Group, Longview Communications. CP is advised by BMO Capital Markets, Evercore, Goldman Sachs, Bennett Jones, Blake Cassels & Graydon, Creel Garcia-Cuellar Aiza y Enriquez, David L Meyer, Sullivan & Cromwell and Edelman. Financial advisors are advised by Fried Frank Harris Shriver & Jacobson.
Thoma Bravo agreed to acquire Proofpoint, a cybersecurity and compliance company, for $12.3bn.
"Proofpoint has established itself as a true powerhouse in the cybersecurity sector due to its innovative suite of market-leading products and impressive customer base of leading companies around the world. As the sophistication of cyberattacks continues to increase, Proofpoint is delivering the most effective solutions to help organizations protect their data and people across digital platforms. We look forward to partnering with the talented Proofpoint team and leveraging Thoma Bravo's significant security and operational expertise to help accelerate the company's growth," Chip Virnig, Thoma Bravo Partner.
Proofpoint is advised by Morgan Stanley, Skadden Arps Slate Meagher & Flom and Joele Frank. Thoma Bravo is advised by Goldman Sachs, Kirkland & Ellis and Finsbury Glover Hering. Debt financing is provided by Goldman Sachs.
Standard Industries, a privately held global industrial company, agreed to acquire W. R. Grace & Co, a global specialty chemical company, for $7bn.
"We are confident that our agreement with Standard Industries Holdings is the best path forward for Grace and our shareholders. Standard's $7bn investment in Grace reflects their confidence in the significant growth opportunities we have and enables our shareholders to realize immediate value at a significant cash premium. This announcement is a testament to the strengths of our talented employees, industry-leading technologies, and deep global customer relationships," Hudson La Force, Grace President and CEO.
W. R. Grace & Co is advised by Goldman Sachs, Moelis & Co, Wachtell Lipton Rosen & Katz and Joele Frank. Standard Industries is advised by Citigroup, JP Morgan, Sullivan & Cromwell and Edelman.
New York Community Bancorp, a bank headquartered in Westbury, New York, agreed to acquire Flagstar Bancorp, a bank headquartered in Michigan, for $2.6bn.
"For Flagstar, this is a unique opportunity. With our existing Flagstar platform, we had every expectation of continuing to build on our success as a leader in creating value in the mid-size bank space. Now, in partnership with NYCB, we are positioned to further accelerate everything we've been doing during my tenure as Flagstar's CEO to build a best-in-class commercial bank, supported by one of the best mortgage and servicing businesses in the country," Alessandro DiNello, Flagstar Bancorp President and CEO.
Flagstar Bancorp is advised by Jefferies & Company, Morgan Stanley and Skadden Arps Slate Meagher & Flom. New York Community Bancorp is advised by Goldman Sachs, Piper Sandler and Sullivan & Cromwell.
Fortuna Silver Mines, a Canadian public silver mining company based in Vancouver, agreed to acquire Roxgold, a Canadian-based gold mining company with assets located in West Africa, for $882m.
"This transaction recognizes the commitment and execution of the Roxgold team and the value creation over recent years, as we advanced from developer to low-cost gold producer with a growth pipeline that few of our peers could match. The combination with Fortuna provides our shareholders with an immediate premium and a unique opportunity to participate in the creation of a new global mid-tier precious metals producer with significant organic growth and cash flow generating potential. Further, Fortuna's excellent track record as an operator and mine builder gives us confidence that the combined company will be best positioned to maximize value for all our shareholders," John Dorward, Roxgold President and CEO.
Roxgold is advised by BMO Capital Markets, Canaccord Genuity and Davies Ward Phillips & Vineberg. Fortuna Silver Mines is advised by INFOR Financial, Scotiabank, Blake Cassels & Graydon and Paul Weiss Rifkind Wharton & Garrison.
The Carlyle Group agreed to acquire Unchained Labs, a life sciences tools company, for $435m. The management team of Unchained Labs from investment firms Novo Holdings, Canaan Partners and TPG Biotech will also participate in the acquisition.
"Unchained Labs sits at the intersection of one of the most attractive sectors in healthcare, life science tools, and its fastest growing end market, biopharma. With strong industry tailwinds, we believe Unchained Labs has significant growth opportunities and we're excited to support another founder-backed business to scale through investments in research and development, digitization and geographic expansion," Steve Wise, Carlyle Global Head of Healthcare.
Unchained Labs is advised by JP Morgan and Cooley. Carlyle is advised by Citigroup and Kirkland & Ellis.
Essity, a global hygiene and health company, agreed to acquire an additional 44% stake in Productos Familia, a provider of care, hygiene and cleaning solutions, for $1.5bn.
"Familia is an innovative and consumer centric company. Our strong relationship dates back more than 30 years. With this acquisition we are building a stronger platform in Latin America to increase growth, profitability and efficiency as well as accelerating the digital transformation," Magnus Groth, Essity President and CEO.
Essity is advised by JP Morgan.
Informa, a British multinational publishing and business intelligence group, agreed to acquire Novantas, an analytic advisory services company. Inflexion, an investment firm, will also participate in an acquisition. Informa will own 57% of the combined business. Upon completion, Informa will merge its FBX unit with Novantas. Financial terms were not disclosed.
This combination seeks to create a leading competitive intelligence and specialist data business serving the retail banking markets.
Informa is advised by Teneo.
BlackRock led the $100m Series D round in Deep Instinct, a cybersecurity company. Investors including Untitled Investments, The Tudor Group, Anne Wojcicki, and existing investors, including Millennium, Unbound, and Coatue Management, among others participated in the round.
"As we enter a new phase of hyper-growth, this investment round will significantly expand our go-to-market capabilities while at the same time increase our best-in-class deep learning research and product development groups. These groups will focus on further developing the company’s unique deep learning platform beyond endpoint ianto cloud, network, and storage to meet the accelerating needs of our customers in the face of more sophisticated threats and breaches," Guy Caspi, Deep Instinct CEO.
Deep Instinct was advised by Merritt Group.
Private equity firm Greenbriar Equity Group completed the acquisition of PCX Aerosystems, a supplier of highly engineered, precision, flight critical assemblies for rotorcraft and fixed wing aerospace platforms. Financial terms were not disclosed.
"Greenbriar is a deeply experienced and knowledgeable investor in our sector and we will benefit greatly from their access to capital and insights and other resources. Greenbriar and management have a shared vision of accelerating PCX's growth and expanding its capabilities to support our customers and we could not ask for a better partner to realize that vision," Jeff Frisby, PCX CEO.
Jobcase, the social platform dedicated to empowering and advocating for workers, agreed to acquire Upward.net, a job matching platform. Financial terms were not disclosed.
"We've been big fans of the Upward team for years and are thrilled to grow our combined network and technology. Our vision of empowering workers combined with Upward's mission of eliminating friction on both sides of the hiring equation is a perfect fit," Fred Goff, Jobcase CEO.
DJO, a global provider of medical technologies, completed the acquisition of MedShape, a privately held orthopedic medical device company. Financial terms were not disclosed.
"Based on our long-term success and deep relationships in both our Prevention & Recovery and Recon segments, we made a strategic decision to meaningfully expand into the fast-growing Foot and Ankle market. We believe our acquisitions of STAR®, Trilliant Surgical®, and now MedShape have created a strong position in the space and will create a rapid growth platform. MedShape's patented technology and growing suite of foot & ankle innovations complement our existing portfolio and strengthen our key strategic imperative of superior clinical outcomes," Brady Shirley, DJO CEO.
Honest Co targets $1.5bn valuation in US IPO.
Honest Co, an American consumer goods company, is aiming for a valuation of over $1.5bn in its initial public offering in the United States,
Reuters reported.
The company, which sells an array of consumer goods including sunscreen lotions, sanitizers and detergents, is planning to strengthen its online business and bolster presence in international markets, including the lucrative Asian region.
EMEA
Super Group, a sports betting and gambling company, is set to go public via a merger with Sports Entertainment Acquisition, a SPAC, in a $4.75bn deal. As part of the deal, $450m of cash in the trust will be injected into the combined company. Super Group's existing shareholders will hold c. 88% of the shares in the combined company.
"We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community. Becoming a public company will give us the tools to continue to grow our leading product and technology offering and deliver a strengthened brand-driven marketing strategy," Neal Menashe, Super Group CEO.
Super Group is advised by Oakvale Capital, Cooley, Herzog Fox & Neeman, Saiber, Wiggin, Finsbury Glover Hering and ICR. Sports Entertainment Acquisition is advised by Goldman Sachs, PJT Partners, Blank Rome, CMS and Ropes & Gray.
London-listed Globalworth Real Estate Investments, a real estate company with a primary focus on Poland and Romania, said that the joint bid from its top shareholders significantly undervalues the company at around $1.9bn.
The company said the offer price represented a discount of more than 27% to its six-month volume-weighted average price as of February 2020, and asked shareholders not to take action on the offer.
Globalworth Real Estate Investments is advised by JP Morgan. Aroundtown is advised by Citigroup and White & Case. CPI is advised by Barclays, Hogan Lovells and SEC Newgate.
Mubadala agreed to acquire a 22% stake in the Tamar gas field from Delek Drilling, an Israeli energy oil & gas partnership, for $1.1bn.
"This transaction has the potential to be another major development in our ongoing vison for Natural Gas commercial strategic alignment in the Middle East, whereby Natural Gas becomes a source of collaboration in the region. We are proud to have signed this MoU following the Abraham Accords Peace Agreement between Israel and the UAE. The development is not only a significant endorsement of the quality of the Tamar reservoir and the Levant basin but also a major support for the East Mediterranean Natural Gas sector. I would like to thank my counter party at Mubadala Petroleum and our clients in Israel, Egypt and Jordan," Yossi Abu, Delek Drilling CEO.
Delek Drilling is advised by Camarco.
Private equity firm Telemos Capital agreed to acquire Mammut, a Swiss outdoor brand, from Conzzeta, a Swiss holding company. Financial terms were not disclosed.
"Mammut, with its rich heritage and strong brand, has achieved significant milestones over the past decades and we are very excited about the future possibilities with the Mammut premium outdoor products and services," Philippe Jacobs, Telemos Capital Executive Chairman.
Telemos Capital is advised by Homburger.
Bilia, one of Europe's largest car dealership chains, agreed to acquire Upplands Motor Stockholm, a Mercedes dealer for cars, transport vehicles and trucks. Financial terms were not disclosed.
"I'm very happy and proud that Bilia in the future will work with Mercedes, which will be an excellent addition to Bilia's current car brand portfolio. Through the acquisition, we are also adding a new and interesting business area to Bilia in the form of heavy trucks, in which Mercedes is one of Europe's largest and most successful players," Per Avander, Bilia CEO.
Upplands Motor is advised by Carnegie Investment Bank.
Equiem, a tenant experience platform, completed the acquisition of Vicinitee, a digital property management platform, from British Land. Financial terms were not disclosed.
"This partnership with British Land allows us to expand and refine our offering across a world-class portfolio alongside forward-thinking real estate leaders. British Land is committed to partnering with their occupiers to provide a differentiated workplace experience for employees, and we're excited to shape our technology around this ethos and commitment," Gabrielle McMillan, Equiem CEO.
Equiem is advised by Meerkat PR.
Tate & Lyle seeks business split in health push.
Tate & Lyle confirmed it was exploring the sale of a controlling stake in its commercial sweeteners unit and looking to separate it from its food and beverage solutions business as the food ingredients maker focuses on healthy products.
Tate & Lyle, a producer of sweeteners such as high fructose corn syrup, said earlier this year it expects modestly higher annual profit, partly due to demand for its food and beverage solutions in North America.
"If a transaction of this nature was completed, it would enable Tate & Lyle and the new business to focus their respective strategies and capital allocation priorities," Tate & Lyle.
Oman considers selling cement stake in privatization push.
Bloomberg reported that Oman is considering the sale of its stake in Oman Cement, as Gulf nations increasingly lean on state assets to bolster their finances.
The sultanate is speaking to advisers about selling its nearly 54% holding in the company. The stake could be worth just over $100m based on its current market price.
Pepco open to M&A opportunities, says CEO.
Discount retailer Pepco Group, which will list in Warsaw this year, is open to possible M&A opportunities but has no specific plans in this area at the moment, the company's chief executive said on Monday.
"Our current view is that all of our plans that we have now, can be delivered organically, but we are open-minded to M&A. We do not have specific plans," Andy Bond, Pepco Chairman.
Olivetti buys 7.5m shares in SECO IPO.
Reuters reported that Italian electronics company SECO said Telecom Italia unit Olivetti bought 7.5m shares in its initial public offering, equal to 7% of the high-tech company's final capital, which could lead to an industrial partnership.
Tuscany-based SECO, which develops embedded microcomputers and 'internet of things' solutions, is selling up to 37.8m shares, in an offer which will run until April 30.
Darktrace targets a valuation of up to $2.6bn in London listing.
Darktrace, a cybersecurity company, targets a valuation of as much as $2.6bn in a London IPO, boosting confidence in the City's ability to attract technology listings post-Brexit and after Deliveroo Holdings' recent flop.
Darktrace is marketing shares in the offering at $3.05 to $3.88 apiece,
Yahoo Finance reported. The company plans to sell 51.1m to 65.1m new shares and looks to raise proceeds of $200m.
Vaccitech targets a $613m valuation in US IPO.
Biotech startup Vaccitech, which co-invented the Covid-19 vaccine developed by AstraZeneca and Oxford University, said it was aiming for a valuation of up to $613m in its US initial public offering.
The company, which has development programs for conditions including hepatitis B, prostate cancer and non-small cell lung cancer, has raised $216m to date from Gilead Sciences, Sequoia Capital China and Oxford Sciences Innovation among others,
Reuters reported.
Pierre Mustier's SPAC seeks $606m in Amsterdam IPO. (FS)
Ex-UniCredit Chief Executive Officer Jean Pierre Mustier's SPAC plans to raise as much as €500m ($606m) when it lists in Amsterdam this week. Pegasus Acquisition Europe, backed by billionaire Bernard Arnault and French asset manager Tikehau Capital, will begin a private placement shortly, with a goal of completing the IPO around April 29.
Mustier and former Bank of America executive Diego De Giorgi will run Pegasus Europe, which plans to invest in financial services, including wealth management and FinTechs.
Synlab prices IPO at the low end of the range, cuts offer size.
Synlab, a laboratory services group, guided investors to expect its planned IPO to price at the bottom of the marketing range, cutting the offer size by a quarter due to sluggish demand,
Reuters reported.
The company now offers new shares worth €400m ($484m) plus existing shares worth €271m ($328m) at €18 ($21.7) apiece, excluding an overallotment option, the bookrunners organizing the deal said.
That is down from an original base deal size of €895m ($1.08bn) to €1.03bn ($1.24bn). The deal will give Synlab, which had offered its shares in a range of €18 ($21.7) to €23 ($27.8), a market capitalization of €4bn ($4.83bn). Its free float will stand at 17%.
SUSE to float in Frankfurt stock exchange.
SUSE, an open-source enterprise software company with German roots, announced its intention to float on the Frankfurt stock exchange as it seeks fresh capital to invest in organic growth and acquisitions.
SUSE will issue $500m in new shares via the offering to pay down debt, while Swedish investment fund EQT, which acquired SUSE in 2018 for $2.5bn, will sell an unspecified further number of existing shares.
APAC
Investment firm Temasek agreed to invest $120m in UpGrad, India's largest higher edtech company.
The Mumbai-based startup said it intended to use the capital proceeds to further strengthen its team, scale its global market operations, bolster its technology and product capabilities, as well as pursue merger and acquisition opportunities.
UpGrad is advised by Credit Suisse and Rajaram Legal.
3D Investment Partners, the owner of a 7.2% stake in Toshiba, a Japanese conglomerate, told the company to look for potential suitors, citing Toshiba dissuaded other buyers from bidding by wanting to remain listed. Previously, CVC unsuccessfully offered to buy out the company for $21bn, which raised the alarm about the possibility of the bidding war.
"We call upon the board to openly welcome interest from suitors who could enhance corporate value and ask the board to conduct a formal review of strategic alternatives (...) To conduct a fair and proper process, Toshiba should explicitly indicate that it is open to alternative ownership structures and correct media speculation that Toshiba's management team and board have a strong preference for remaining a listed company," 3D Investment.
The Blackstone Group is set to acquire a 26% stake in Mphasis, an IT services company based in Bangalore, India, for $1.1bn.
"We are gratified to continue our partnership with Blackstone, both as a leading investor as well as our client. We believe Blackstone's sustained strategic partnership will help the company accelerate its growth and scale new heights. Sovereign and pension funds co-investing is a testimony of long-term commitment and a vote of confidence of a marquee set of shareholders," Nitin Rakesh, Mphasis CEO.
Private equity firm Warburg Pincus agreed to invest in Parksons, a packaging solutions provider in India. Financial terms were not disclosed.
"We've had a strong collaborative relationship with Kedaara over the past six years. The partnership with Warburg will help in our next phase of growth. This investment is a testament to the strong, high-quality business we have built over the past two decades," Siddharth Kejriwal, Parksons Managing Director.
Eaton, a power management company, agreed to acquire a 50% stake in the busway business of Jiangsu YiNeng Electric, an electrical equipment manufacturer. Financial terms were not disclosed.
"YiNeng's strong presence in China combined with Eaton's broad product portfolio and access to Southeast Asia positions us well in the high-growth busway product category and strengthens our offerings to customers in the region," Howard Liu, Eaton President, Asia-Pacific Region, Electrical Sector and Corporate China.
Carlyle considers the sale of Asia Satellite. (FS)
The Carlyle Group, an alternative investment manager, is considering divesting its 50% stake in Hong Kong-based Asia Satellite Telecommunications,
Bloomberg reported. Carlyle is working with a financial adviser to help find a buyer for its 50% stake in the Hong Kong-based satellite business, also known as AsiaSat. The sale, which has drawn initial interest from buyers, including other global satellite companies, could value the stake at several hundred million dollars.
AsiaSat, founded in 1988, operates seven satellites supporting video, data, hosting, and mobility services in the Asia Pacific region. The company launched Asia's first private regional satellite in 1990, and its shares started trading on the Hong Kong stock exchange in 1996.
SK's EV battery material units Seoul IPO raised $2bn.
SK Innovation and SK IE Technology, a South Korean energy supplier, have raised $2bn in the battery material unit's IPO, the country’s biggest in four years,
Bloomberg reported.
SK IE Technology has priced the offering at $94.2 per share, the top of a marketed range. The portion for institutional investors was 1883 times oversubscribed. At $2bn, the IPO of the maker of battery separators will be South Korea's largest since mobile game-maker Netmarble raised $2.4bn in 2017.
Monde Nissin secured regulatory approval for the launch of a $1.3bn IPO.
Monde Nissin, the IPO-bound foods giant, plans to capitalize on the fast-growing meat alternatives market as it seeks to become a major global company. The company obtained the green light from the Philippine Stock Exchange and the Securities and Exchange Commission to proceed with its $1.3bn IPO on June 7.
"We combine the stability of our Asia-Pacific Food and Beverage business and the strong positions that our noodles, crackers and baked goods have in the Philippines with the exciting growth opportunities from Quorn, which is poised to build on its loyal customers and expand its reach and product offerings to compete and win in the rapidly growing global meat alternatives market," Monde Nissin.
China Three Gorges Renewables Group set for IPO.
China Three Gorges Renewables Group is set for an IPO that could be the biggest in the country this year after securing regulatory approval. The unit of China Three Gorges plans to sell up to 8.57bn shares in Shanghai, it said in a prospectus filed to the Shanghai stock exchange, without giving the value of the funds to be raised. The state-owned company has received written approval from China's securities regulator.
China Three Gorges Renewables announced last year was seeking to raise $3.85bn in an IPO. The listing could easily be the largest debut in China in 2021 if it starts trading this year, topping Tianneng Battery Group's $697m listing in January,
Bloomberg reported.
CTC Capital raised $539m for its second semiconductor fund. (FS)
CTC Capital, semiconductor industry-focused, hit the final close of its second RMB-denominated fund at CNY3.5bn ($539m). The oversubscribed fund attracted a slew of investors, including government-led funds, state-owned industry majors, and fund-of-funds,
DealStreetAsia reported.
CTC Capital is looking to shore up its investments in the semiconductor industry focused on AI, data centers, 5G network, IoT, and smart automobiles. Shanghai-based CTC Capital, which launched the second semiconductor fund in April 2019, had set a target to raise CNY3bn ($462m).
