AMERICAS
Arkansas decided to back the US Justice Department's decision to approve a merger of T-Mobile US and Sprint, the third and fourth-largest US wireless carriers. With Arkansas, the Justice Department has nine states backing its settlement to approve the $59bn deal on condition that it divest assets to Dish Network.
New York, California, and the attorneys general of 13 other states and Washington DC are headed to court to fight the planned merger in a trial that is to begin on December 9. Colorado and Mississippi have recently defected from that effort.
John Legere, a T-Mobile US Chief Executive, acknowledged that talks are ongoing with Sprint to extend their merger agreement, but he declined to rule out requesting the $26bn price be reduced.
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, the largest shareholder of Sprint before the transaction, 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.
Exact Sciences, a molecular diagnostics company, completed the acquisition of Genomic Health, a provider of genomic-based diagnostic tests, for $2.8bn. As a result of the transaction's close, Genomic Health's common stock will now cease to be traded on the NASDAQ.
"Today marks a pivotal step toward building the world's leading advanced cancer diagnostics company. I welcome the talented Genomic Health employees to the Exact Sciences family and look forward to leading our combined team as we enter our Company's next chapter," Kevin Conroy, Exact Sciences Chairman, and CEO.
Goldman Sachs, Akin Gump Strauss Hauer & Feld, Pillsbury Winthrop Shaw Pittman, and Sullivan & Cromwell advised Genomic Health. Latham & Watkins advised Goldman Sachs. Centerview Partners, XMS Capital Partners, Skadden Arps Slate Meagher & Flom, and Joele Frank advised Exact Sciences.
BB&T and SunTrust Banks, two American bank holding companies, won US antitrust approval to merge on condition that they divest 28 branches in three states. To win approval, the companies agreed to divest 28 branches in Georgia, North Carolina, and Virginia, with about $2.3bn in deposits.
Goldman Sachs, SunTrust Robinson Humphrey, Sullivan & Cromwell, and Abernathy MacGregor Group are advising SunTrust. RBC Capital Markets, Wachtell Lipton Rosen & Katz, and O'Melveny & Myers are advising BB&T.
Swedish Orphan Biovitrum completed the tender offer to acquire all outstanding shared of Dova Pharmaceutical for $27.50 per share.
Sobi expects to complete the acquisition of Dova on November 12, 2019, through a merger without a vote or meeting of Dova’s stockholders. Upon completion of the merger, Dova will become an indirect wholly-owned subsidiary of Sobi. Shortly after the completion of the merger, Dova’s common stock will no longer be listed on the NASDAQ.
Evercore, Jefferies & Company, Cooley, and Westwicke are advising Dova. Morgan Stanley, Cravath Swaine & Moore, and Mannheimer Swartling are advising Sobi.
The Blackstone Group agreed to acquire a majority stake in MagicLab, which builds and operates dating and social networking apps, including Bumble and Badoo, at a $3bn valuation.
“We’re excited to invest in MagicLab, which is a pioneer in the fast-growing online dating industry. They have a highly talented team and a strong set of platforms, including Bumble, which was built on a commitment to inclusion and female empowerment. This partnership is a perfect example of Blackstone’s ability to use its scale, long-term investment horizon, and a deep bench of operational resources to help entrepreneurs take advantage of transformational growth opportunities to create global industry leaders over time.” Jon Korngold, Blackstone Growth Head.
Citigroup, Baker McKenzie, and Davis Polk & Wardwell are advising MagicLab. Citigroup and Simpson Thacher & Bartlett are advising Blackstone Group.
Digi International, a provider of IoT products, software and services, is set to acquire Opengear, a provider of IT infrastructure products and software, for $140m with a potential for contingent consideration of up to an additional $15m based on revenue performance through 2020.
The closing of the transaction is subject to customary conditions, including antitrust regulatory clearance. Opengear is expected to retain its existing office locations, and future office consolidations, if any, will be designed to minimize disruption to employees and customers.
"Digi and Opengear will mesh well as we share so many of the same values in how we treat our customers and employees. Our products are complementary, so customers and partners will get an exceptional choice," Gary Marks, Opengear CEO.
Canaccord Genuity, Stephens, Faegre Baker Daniels, and Lewis PR are advising Digi. BMO Harris Bank is providing debt financing to Digi.
Butterfly Equity, a private equity firm, is set to acquire a majority stake in Orgain, a retailer of nutrition products. Financial terms were not disclosed.
The partnership will enable Orgain to scale its purpose-driven brand and expand its reach and positive impact. In particular, it will allow for an increased focus to be placed on expanding consumer awareness, product innovation, and global distribution.
“In spending time with the Butterfly team, it was apparent that they shared our values and understood our mission to positively impact consumers across the world with our clean and delicious nutrition product. We are excited about this next phase of growth for our brand, the ability to expand globally and the opportunity to inspire so many more healthy, vibrant lives,” Andrew Abraham, Orgain Founder, and CEO.
Piper Jaffray, The Giannuzzi Group, and Sidecar are advising Orgain. Kirkland & Ellis and Sitrick and Company are advising Butterfly.
TGI Friday, an American restaurant chain focusing on casual dining, agreed to merge with Allegro Merger, a blank check company whose objective is to acquire, through a merger, share exchange and asset acquisition, in $380m deal. Allegro will assume $350m of net debt. The transaction would result in Fridays becoming a publicly listed company.
“The first order of business when I took over this company was to bring in the best talent to improve operations and innovation. This transaction is the next significant strategic move and will allow us to gain public company status and access incremental equity capital to accelerate the rejuvenation of this iconic global brand,” Ray Blanchette, TGIF CEO.
Graubard Miller, Cantor Fitzgerald, Crescendo Partners, and Piper Jaffray are advising Allegro. Ropes & Gray is advising TGIF.
First Reserve, a private equity firm, is set to acquire Lamons, a provider of industrial sealing and fastener solutions, from TriMas Group, a diversified manufacturer of consumer products, for $135m. The closing is expected to occur by the end of the first quarter of 2020, and remains subject to customary regulatory approvals and closing conditions.
"As Lamons moves into the next phase of growth and development, we believe this business will benefit from First Reserve’s focus and expertise in energy-related end markets. I am pleased that we have secured a buyer for which Lamons will be an ideal fit,” Thomas Amato, TriMas President and CEO.
Current Capital and Vinson & Elkins are advising First Reserve. Bank of America Merrill Lynch and Jones Day are advising TriMas.
1st Constitution Bancorp, a financial services holding company, completed a $53m acquisition of Shore, a commercial bank that serves small and medium-sized businesses and individuals.
“We are pleased to be combining with Shore Community Bank and expanding our presence into several new markets in Ocean County. Northern and Central Ocean County represent attractive markets with desirable demographic characteristics and growth opportunities,” Robert F. Mangano, 1ST Constitution Bancorp’s President, and Chief Executive Officer.
Raymond James and Windels Marx Lane & Mittendorf advised Shore. D.A. Davidson & Co and Day Pitney advised 1st Constitution.
Aflac, a supplemental insurer serving in the US and Japan, completed the acquisition of Argus Holdings and it's subsidiary Argus Dental & Vision, a premier benefits organization and national network dental and vision company. Financial terms were not disclosed.
"I'm excited that Tampa will be the home for the new Aflac US Network Dental and Vision platform. We are enthused to join the Aflac family and look forward to growing the Aflac US Network Dental and Vision business," Nicholas M. Kavouklis, Argus President and CEO.
Raymond James and Hill Ward Henderson advised Argus. Sandler O'Neill + Partners and Sidley Austin advised Aflac.
Starwood Energy, an energy infrastructure-focused private equity firm, is set to acquire the Lavaca, Texas-based gas gathering business unit of Third Coast Mainstream, a provider of midstream infrastructure to producers of oil and gas. Financial terms were not disclosed.
The gathering business includes over 260mi of natural gas gathering pipes and associated infrastructure and provides gathering and artificial gas lift services to local upstream clients focused on oil and gas production in the Eagle Ford.
"We are excited to announce our first acquisition in the midstream space. The Lavaca system represents a unique opportunity to own a critical piece of Eagle Ford gathering infrastructure. Third Coast team has built a great business, and we are looking forward to continuing to provide exceptional service to our customers as we look to expand the system and grow our midstream platform," Himanshu Saxena, Starwood Energy CEO.
Vinson & Elkins, and Abernathy MacGregor are advising Starwood. Gibson Dunn & Crutcher is advising Third Coast.
Shorehill Capital, a private equity firm, completed an acquisition of a majority stake in Triad Technologies, a distributor of industrial fluid power and automation solutions. Financial terms were not disclosed.
Shorehill was working in partnership with the company's management team and Wissman family.
"We are absolutely thrilled to have identified a partner who is deeply experienced in both fluid power and family-owned and operated businesses. we genuinely look forward to a long and successful relationship with the Shorehill team," Doug Wissman, Triad CEO, and President.
Katten Muchin Rosenman advised Shorehill. Maranon Capital and Twin Brook Capital Partners provided debt financing to Shorehill.
OMERS Growth Equity, a mid-market focused private equity firm, led an investment round of $227m in Coveo, a provider of AI SaaS enterprise solutions. The funding includes participation from existing investors and other financial institutions including Elliott Management, FSTQ, and IQ.
The new funds will be used to support further product development, expansion in existing and new markets, and to further broaden the team’s capabilities over the next year.
"Our investment in Coveo aligns closely with our belief that growth in data along with advances in machine learning and artificial intelligence are becoming increasingly important to companies, to help them increase sales and reduce costs,” Mark Shulgan, OMERS Managing Director and Head of Growth Equity.
Bank of America Merrill Lynch and RBC Capital Markets advised Coveo.
Private equity firm General Atlantic led a $165m Series E funding round in Riskified, a provider of payments and fraud-prevention solutions, at a valuation of more than $1bn. Existing investors Qumra Capital, Pitango Venture Capital and Entrée Capital also participated in the round.
The proceeds will be primarily used by Riskified to more rapidly scale its business domestically and internationally and to expand its product footprint.
"Riskified is the rare blend of realized performance and considerable potential. We are thrilled to partner with Eido and the Riskified team to reinvent the payments ecosystem and add real value for customers," Tanzeen Syed, General Atlantic Managing Director.
BoSpar and TytoPR advised General Atlantic.
MI Windows and Doors, a manufacturer of precision-built vinyl and aluminum windows and sliding patio doors, completed the acquisition of Milgard Windows & Doors, a manufacturer of glass windows and patio doors, from parent company Masco for $725m.
“This is an exciting time for our businesses and our industry. We are excited to be joining the MI family, and together we will achieve our Vision to become the most valuable brand in the fenestration industry,” Vishal Singh, Milgard President.
Davis Polk & Wardwell advised Masco.
Columbia Care, one of the largest fully integrated operators in the global cannabis industry, is set to acquire The Green Solution, a vertically integrated cannabis operator, for $140m. Closing is subject to all required regulatory approvals, including, but not limited to the Hart Scott Rodino Antitrust Improvements Act, as well as Colorado state and municipal level approvals.
"We are proud to have chosen Columbia Care, with its patient-centric, data-driven approach to health and wellness, as the ideal partner to trust with our family business. We are thrilled to have forged this partnership with Columbia Care as we head into our next stage of growth," Kyle Speidell, TGS Co-President.
LifeSci Public Relations is advising Columbia Care.
Calbee, a Japanese snack food producer, completed the acquisition of Warnock Food Products, a snack producer, from private equity firm Brown Gibbons Lang & Company. Financial terms were not disclosed.
Calbee was selected in a competitive sale process run by BGL that included a targeted group of private equity sponsors and global strategic players. Through the acquisition of Warnock Food Products, Calbee aims to expand its product portfolio in the US snack market.
"Warnock is very pleased with the outcome of this transaction. The BGL team was instrumental in advising us through every step of the process, including the actions needed to prepare for a successful launch. We thank them for their tremendous effort," Kraig Rawls, Warnock Food Products Co-Owner and CEO.
Brown Gibbons Lang & Company advised Warnock Food.
LRW Group, a marketing services company and a portfolio company of private equity firm Tailwind Capital, is set to acquire T3, a digital marketing agency. Financial terms were not disclosed.
With the move to LRW Group, T3 will continue to work with its current clients, independently pursue new clients, and provide valuable brand innovation and activation opportunities to new and existing LRW Group clients.
“T3’s sustained growth and achievement over the last three decades is a testament to its ability to adapt and thrive through the breakneck pace of change in the digital space. We see the same resilience in them that we see in our group’s DNA, which makes them a natural fit for our company’s culture and goals,” Tom Bernthal, LRW Group Action Division President.
JEGI is advising T3.
Savant Capital Management, a wealth management firm, completed the acquisition of Kingston Wealth Management Group, a provider of wealth management and financial planning services. Financial terms were not disclosed.
“Our philosophy of servicing clients to provide them the best advice and direction combined with our internal culture meshes well with Savant, and we are thrilled to enhance our service offerings, and innovation to our clients thought the Savant network. This is a game-changer for the Bloomington region,” Kevin C. Kingston, Kingston Wealth Founder, and President.
Chartwell Agency advised Savant Capital.
Greenridge Investment Partners, a private equity firm, is set to acquire GrowthZone, a cloud-based association management software provider. Financial terms were not disclosed.
"While competitors remain focused on consolidation strategies, GrowthZone's commitment to product innovation and superior customer service has created the leading AMS solution in the marketplace, and we are excited to help this team further build on its success," Ben Moss, Greenridge Partner.
RF Investment Partners is providing debt financing to Greenridge.
GNB Financial Group, a subsidiary of Banco GNB Sudameris, a provider of banking services, is set to acquire a 66.7% stake in CIBC FirstCaribbean, the Caribbean and Barbados-based subsidiary of CIBC, for $797m.
The total consideration is comprised of approximately $200m in cash and secured financing provided by CIBC for the remainder. The agreement is expected to be completed in 2020, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals.
"FirstCaribbean will remain the strong entity it is today, committed to servicing its clients in the region, I have been impressed by the strength and stability of FirstCaribbean and am excited about its prospects for the future," Jaime Gilinski, GNB Financial Group Chairman.
Parity Technology Solutions, a hospitality technology company with operations in the US and Canada, agreed to acquired Hotspot International, a hotel “turnkey” solutions provider. Financial terms were not disclosed.
The acquisition of Hotspot International enhances Parity’s product and service line to now include a comprehensive, integrated solution that leverages the rXg platform developed by RGNets. The implementation of micro-segmentation through auto-generated Dynamic VLANs and PANs provides a more efficient and secure network, as well as the better guest experience.
“The merger between Parity’s and Hotspot International drives our direction as a single-solution, single-point-of-contact provider. Our converged networks reduce operating costs to our hotel customers, provide greater efficiency, and seamlessly integrate all technology services,” Louis Miller, Hotspot International Founder and CEO.
ePRINTit USA, a cloud-based printing solutions provider, completed the acquisition of ePRINTit, a wholly-owned subsidiary of UniPrint.Net. Financial terms were not disclosed.
"Leveraging the power and security of ePRINTit™ and the resources of TBS, we believe this will be a game-changer offering incredible opportunities to our channel partners and direct customers and opens up our shared products to new markets everywhere," Lou Flavio, ePRINTit USA CEO.
Private equity firm Hanover Partners completed the acquisition of Westside Equipment Company, which designs and manufactures tomato harvesting and pistachio harvesting equipment, as well as related aftermarket parts. Greyrock Capital Group co-invested alongside Hanover Partners and management in the acquisition of Westside. Financial terms were not disclosed.
“The Westside recapitalization is highly-consistent with Hanover’s 25-year strategy of investing in niche-market leading equipment manufacturers with significant engineering value-add. In addition, this investment continues our track-record of facilitating smooth ownership and leadership transitions for family-owned and owner-operated companies,” Aaron Aiken, Hanover Partners Partner.
Clinical Services Division of WIRB-Copernicus Group, a provider of solutions to improve the quality and efficiency of clinical research, is set to acquire Waife & Associates, a provider of software consulting and business management services. Financial terms were not disclosed.
"We are greatly pleased to join WCG, which is demonstrating a true commitment to innovation and transformation in drug development. The possibilities this offers us to expand our contributions, and create new opportunities for new solutions, is very exciting to us," Ronald S. Waife, Waife & Associates Founder.
Gemspring Capital, a middle-market private equity firm, completed an investment in Crafty Apes, a full-service visual effects company. Financial terms were not disclosed.
“We are excited to partner with Gemspring during the next phase of growth for Crafty Apes. Gemspring’s understanding of our industry, resources, relationships, and experience partnering with growing companies will be invaluable as we expand our geographic presence, invest in our team, and continue delivering world-class post-production services for our customers,” Chris LeDoux, Crafty Apes Co-Founder.
FEMSA, a Mexican multinational beverage and retail company, completed its minority investment in JRD, a wholesaler of business-to-business cash and carry retail foodservice segment. Financial terms were not disclosed.
The transaction includes investment in the operating and real estate-holding entities of JRD. The agreements include the terms and conditions for a proposed Joint Venture of FEMSA and JRD to take JRD’s business model to Mexico and other Latin American markets. Each partner would own 50% of the Joint Venture.
Parity Technology Solutions, a hospitality technology company with operations in the US and Canada, agreed to acquire Liveport Corporation, a provider of scalable, high-capacity WiFi networks. Financial terms were not disclosed.
“Our acquisition of Liveport Corporation propels our recent surge in growth to another level. It allows us to expand our geographic presence as a fully-managed hospitality technology provider in the Canadian market through Liveport Corporation’s established reputation, as well as their provider certifications with major hotel brands,” Orlando Phillips, Parity Technology Solutions President.
Markel, a diverse financial holding company, agreed to acquire VSC Fire & Security, a provider of comprehensive fire protection, life safety, and low voltage solutions to retailers, commercial campuses, healthcare facilities, and government properties. Financial terms were not disclosed.
"VSC provides solutions that help minimize damage if something bad happens a concept we've learned a lot about over our 89 years in the insurance industry. There is no substitute for the high-quality, high-integrity work Michael and his team do, and when it comes to that work, I think we'll need more of it, rather than less, in the future," Tom Gayner, Markel Co-CEO.
Solistica, FEMSA’s logistics subsidiary, agreed to acquire AGV, a provider of value-added warehousing and distribution in Brazil with gross annual sales approaching R$650m ($123m). Financial terms were not disclosed.
This transaction represents an important new building block for Solistica’s strategy in Brazil. Solistica will now become the first fully integrated Third Party Logistics solution provider in the Brazilian market, building a key differentiating factor among the leading players in the industry. AGV will generate synergies, complement the platform, and significantly enhance Solistica’s customer value proposition, allowing it to provide integrated logistics solutions to its clients in the key Brazilian market.
Infutor, an identity management company, agreed to acquire Dunn Data Company, a firm specializing in consumer identity, demographics, lifestyle, and affinity attribute data. Financial terms were not disclosed.
"Infutor has built a reputation of expertise on the strength of our identities, and our singular focus on consumer identity management. Last year, we purchased Ruf so we could add actionable intelligence to our identity solutions suite, and now with the addition of the Dunn data sets, we have further solidified our expertise with additional attribute intelligence. The combination of Infutor Identities, Dunn Attributes, and Ruf Insights creates the most actionable and most intelligent identity graph in the marketplace," Gary Walter, Infutor CEO.
Givaudan, a manufacturer, and marketer of fragrances and flavors agreed to acquire Ungerer. Financial terms were not disclosed. The transaction is expected to close during the first quarter of 2020.
"The acquisition of Ungerer fits very well with our long-term strategy for our core business in flavors and fragrances. They have an excellent reputation in the market, thanks to the quality of their specialty ingredients as well as their strong position in the fast-growing local and regional customer segment," Gilles Andrier, Givaudan CEO.
Stephen Schwarzman calls Walgreens Boots rumoured LBO a “stretch.” (FS)
A deal to take Walgreens Boots Alliance private would be a “stretch” at a time when investors have become more discriminating, said Stephen Schwarzman, Blackstone CEO and Chairman.
“It might be possible. It’s a huge stretch doing things over $50bn,” Stephen Schwarzman.
His firm has led some of the largest leveraged buyouts ever, including the Hilton hotel chain and Equity Office Properties Trust.
AXA to get $3.1bn for EQH sale.
AXA expected to get net proceeds of $3.1bn from the sale of a 29% stake in AXA Equitable Holdings as it exits its US life insurance business. After the deal, AXA will retain only a 9.6% stake in EQH.
AXA, the second-largest European insurer after Germany’s Allianz, has been divesting from EQH to raise funds to pay for its $15bn acquisition of Bermuda-based rival XL last year. The company said that it had sold 144m EQH shares at $21.80 per share to Goldman Sachs. EQH has agreed to repurchase 24m shares at the same price.
Carl Icahn sells nearly a third of his Occidental stake. (FS)
Activist investor Carl Icahn, who has been waging a bitter battle against Occidental Petroleum board over its $57bn acquisition of Anadarko Petroleum cut his holdings in the oil and gas producer by nearly a third.
Icahn sold 10m shares and now holds 23m shares, valued around $900m. Icahn wants to replace board members, have the company accelerate asset sales, and in court is seeking documents related to the deal, Reuters reported.
Icahn has opposed the deal as “hugely overpriced,” and a misplaced bet-the-company gamble on oil prices rising, and urged Occidental’s board to put the company on the market instead.
WeWork officials sued over botched IPO.
WeWork officials, including co-founder and ex-CEO Adam Neumann, are being sued by minority shareholders to recoup losses as the shared workspace provider pulled its IPO and saw its value plunge by more than 87%. SoftBank and its chairman, Masayoshi Son, are among the ten named defendants in the complaint, which also accuses them and Neumann of self-dealing, Reuters reported.
In a proposed class action filed this week in San Francisco Superior Court, former WeWork employee Natalie Sojka accused the company’s board of directors of breaching its fiduciary duties to minority shareholders like her.
The lawsuit seeks to block WeWork from rubber-stamping further transactions with SoftBank and Neumann and restrict stock repurchases from minority shareholders. It also seeks punitive damages. WeWork’s valuation has sunk to as little as $5.9bn, based on the value of SoftBank’s proposed $9.5bn rescue, from $47bn in August.
Richemont prioritizes expanding its own jewelry brands over Tiffany bid.
Cartier owner Richemont is inclined to focus on expanding its own jewelry brands rather than start a bidding war with rival LVMH for Tiffany. Richemont risks being overshadowed by LVMH in jewelry if the French rival succeeds with its attempt to buy Tiffany.
“When you have three of the best names in the jewelry industry, we prefer to focus on our strengths,” Burkhart Grund, Richemont CFO.
DuPont considers the divestment of its transportation unit.
DuPont de Nemours, a provider of technology-based materials, ingredients, and solutions, is considering a divestiture of its transportation and industrial unit, Bloomberg reported.
The company is working with advisers to review strategic options for the business. One possible partner for the unit could include Celanese, which has a complementary engineered materials segment.
KKR-backed Cue Holdings considers a $400m IPO in New York. (FS)
KKR-backed Cue Holdings, a digital advertising agency, is considering a New York listing, becoming the latest in a number of mainland technology firms to brush off US-China trade tensions.
Reuters reported that Cue has appointed Credit Suisse and Morgan Stanley to raise $300-$400m as part of its IPO due early next year. The company aims to have a market capitalization of up to $2bn.
EMEA
Acerinox, a producer of stainless steel, is set to acquire VDM Group, a construction engineering company from private equity firm Lindsay Goldberg for $586m.
Acerinox will pay $341m and will assume debt for an amount of $63m and pension plans and other liabilities for an amount of $181m. Acerinox will use its existing financing lines available for this acquisition. The transaction implies an EV/EBITDA of 5.5x before synergies.
“We are delighted to become part of the Acerinox Group which presents the opportunity to strengthen and grow of our businesses, being aligned with Acerinox´s long-term strategy and its investment plan," Niclas Muller, VDM Metals CEO.
BSK Becker+Schreiner Kommunikation is advising Linday Goldberg Vogel. KPMG, Goldman Sachs, and Linklaters are advising Acerinox.
PSA CEO Carlos Tavares confirmed that PSA Group and Fiat Chrysler would retain all of their car brands if the planned $50bn merger went ahead. The brands that would come under the combined group’s umbrella. PSA’s five-passenger car labels include Citroen and Vauxhall, while FCA has nine, including Alfa Romeo, Maserati, and Jeep - all likely to survive.
PSA and Fiat said they aim to reach a binding outline in the coming weeks, but still face questions over potential job losses, as well as scrutiny over whether the transaction favors one party more than the other.
“As of today, I don’t see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths,” Carlos Tavares, PSA CEO.
Community Group, Image Sept, and Sard Verbinnen are advising Fiat Chrysler.
CDP Equity, a holding company, and FSIA, a company held 70% by FSI Investimenti and 30% by Poste Italiane, completed the acquisition of Sia, provider of financial technology solutions, from F2i, HAT, Intesa Sanpaolo, and UniCredit. The transaction was conducted the basis of the equity value of SIA of €2.4bn ($2.6bn) and on an enterprise value of €3.2bn ($3.5bn).
CDP Equity has acquired from F2i 17.05% and from HAT 8.64% of SIA, becoming the owner of 25.69% of the company, while FSIA has acquired the shares held by UniCredit and Intesa Sanpaolo, equal to 3.97% each, increasing their stake in the shareholding from 49.5% to 57.5%.
"Underlined that CDP will continue in its strategy of developing and strengthening SIA since that of payments and financial transactions is a strategic and highly innovative sector. The acquisition of these further stakes also serves to offer more effective strategic options in order to maximize the value of the investment, the technological benefits, and the creation of jobs in Italy," Pierpaolo Di Stefano, CDP Equity CEO.
HAT and F2i were advised by Vitale. CDP Equity was advised by JP Morgan.
Santander Consumer Finance, Santander's consumer finance firm in Italy, agreed to form a joint venture with Italian telecommunications leader Telecom Italia to offer consumer finance services to TIM’s clients in Italy. Financial terms were not disclosed.
The goal is to initially offer financing for the acquisition of devices via installment loans and, in a subsequent phase, other consumer finance and insurance products.
The transaction will be carried out through the creation of a joint venture in which Santander will control 51% and TIM 49%. The new company is expected to begin operations next year.
“I´m delighted with this agreement, which will allow Santander Consumer Finance to become a leader in consumer finance in an attractive market, accompanied by one of the country’s most trusted brands,” José Antonio Álvarez, Santander CEO.
Bluegem Capital Partners, a private equity firm, is set to acquire British nursery retailer Mamas & Papas Retail. Financial terms were not disclosed.
The retailer was sold through a pre-pack administration to Bluegem Capital Partners, which ultimately owned the parent company Mamas & Papas Group. A pre-pack administration enables the company to sell itself or its assets before it appoints administrators who take over the running of the business to protect creditors.
"Mamas & Papas would continue to review its store portfolio in the light of changing shopper behavior but remained fully focused on maintaining our position as the UK’s most popular nursery brand," Riccardo Cincotta, Mamas & Papas Executive Chairman.
TPG-backed The Rise Fund, a global impact investment fund, completed the acquisition of a 34% stake in Pearl Dairy, a dairy processing company. Financial terms were not disclosed.
“We are excited to be partnering with The Rise Fund and are looking forward to utilizing their global expertise to help build an inclusive ecosystem that will have an even larger impact on the lives of millions of Africans,” Amit Sagar, Pearl Dairy CEO.
Aramco targets a sale of 0.5% to investors in IPO.
According to the prospectus published on Saturday, the Saudi Aramco is set to sell up to 0.5% of its stakes to individual retail investors and will be restricted from issuing additional shares for a year after the IPO.
The company could sell 1%-2% on the Saudi stock market. If the government sells 2% of Aramco shares, the retail offering could account for 25% or $10bn of the deal size at the top valuation of $2tn.
The prospectus said that among the risks for investors were the potential for terrorist attacks and the potential for encountering antitrust legislation, as well as the right of the Saudi government to decide maximum crude output and direct Aramco to undertake projects outside its core business, Reuters reported.
Thyssenkrupp to attract at least 4 bidders for its lift business. (FS)
The German industrial giant Thyssenkrupp’s lifts business is set to attract initial bids from at least four would-be buyers in time for a deadline in what is poised to be one of Europe’s most significant deal, that could potentially be worth as much as $20bn, FT reported.
Bidders for the company’s most profitable business include a consortium made up of the private equity groups Blackstone and Carlyle and the Canada Pension Plan Investment Board, a rival group, made up of Advent International, Cinven and the Abu Dhabi Investment Authority, and a partnership between Finnish engineering group Kone and the private equity group CVC Capital Partners. Alternative assets giant Brookfield Asset Management is also expected to join the bidding.
Telecom Italia to spin-off data center business ahead of potential IPO.
Telecom Italia is exploring strategic options for its data center business ahead of a potential market listing, after entering a partnership with Google to develop its cloud business.
The move is aimed at reviving the former monopoly and an underperforming business saddled with $25.5bn of debt.
"TIM owns 22 data centers across Italy, and has its own cloud business, will invest in new top-tier data facilities to host Google Cloud. TIM projects core profit target of $440m by 2024, will look for one or more infrastructure funds to become minority partners to finance its expansion." Luigi Gubitosi, TIM CEO.
EasyJet and Jet2.com acquire Thomas Cook's UK-based airport slots.
British budget airlines easyJet and Jet2.com completed the acquisition of take-off and landing slots of the failed tourism and travel company Thomas Cook. EasyJet bought Thomas Cook’s slots at London Gatwick and Bristol airports for £36m ($46m), while Dart Group-owned Jet2.com, bought slots at Manchester, Birmingham, and Stansted for an undisclosed price.
EasyJet acquired 12 of summer slot pairs and 8 winter slot pairs at Gatwick, plus six summer slot pairs and one winter slot pair at Bristol, in the deal, following the collapse of the 178-year-old travel company in September.
AliaxPartners and KPMG advised the deal.
ESB in advanced talks to acquire a stake in EDF's Scottish wind farm.
State-owned Irish utility, Electricity Supply Board, is in advanced talks to acquire a stake in a Scottish offshore wind farm project owned by Electricite de France. No final agreements have been reached, and talks could still be delayed or fall apart.
A deal for a 50% holding in the Neart na Gaoithe development could be announced as soon as the next few weeks. The 450-MW facility is set to cost about £1.8bn ($2.3bn) to build and will supply enough electricity for 375k homes. It’s due to be commissioned in 2023.
Shopinvest in talks to acquire Rue du Commerce from Carrefour.
Shopinvest, a French e-commerce venture, is in advanced talks to acquire the online shopping website site Rue du Commerce from French supermarket retailer Carrefour. Financial terms were not disclosed.
Carrefour bought Rue de Commerce in 2015. The group is in the midst of a five-year plan to cut costs, boost its e-commerce investments in food, and offer more organic products and own-brand labels to tackle competition from the likes of Amazon and domestic rival Leclerc.
Omnes considers acquiring BioFutur. (FS)
Omnes Capital, a private equity firm, considers acquiring a controlling stake in BioFutur, a France-based medical and biology analysis company.
APAC
Alibaba Group Holdings, the e-commerce giant, is set to acquire an additional 12% stake in its logistics affiliate Cainiao Smart Logistics Network for $3.3bn, which would increase its stake from 51% to 63%.
The acquisition would be possible by subscribing for newly issued Cainiao ordinary shares in its latest financing round and purchasing certain equity interest from an existing Cainiao shareholder.
"Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world. We are committed to supporting its ongoing development, to realizing greater synergies throughout the entire Alibaba Economy and accelerating the digitization of the logistics industry,” Daniel Zhang, Alibaba Group Executive Chairman, and CEO.
Raymonds, India's largest clothing and accessories company, announces the demerger of its lifestyle business into a separate entity through a mirror shareholding structure.
The new entity will house the core branded textile, branded apparel, and garments businesses, and would be separately listed on the bourses after the demerger. The existing listed company will include real estate, land banks, engineering businesses of auto components, and FMCG businesses, among others.
After the demerger, every shareholder of Raymond will be issued the shares of the new company in the ratio of 1:1.
KKR targets to raise a $15bn Asia-focused fund in 2020. (FS)
Private equity firm KKR is targeting to raise a $15bn Asia-focused buyout fund. KKR’s fundraising will start in the first quarter of 2020, intending to achieve the first close by June.
The fundraising target and timeline for KKR’s planned Asia-focused fund, which will focus on consumer, technology, and manufacturing firms across major markets including Australia, China, Japan, and India, Deal Street Asia reported.
KKR has already received interest in its planned fund from prospective investors, including those who invested in its previous Asia funds. The fund size and fundraising schedule have not yet formalized, and the plan is subject to change.
Military Bank considers selling of 7.5% stake for $240m.
Vietnam’s Military Commercial Joint Stock Bank considers raising $240m from the sale of a 7.5% stake to foreign investors via a private placement, Bloomberg reported. The sale of 141.5m new shares and 47m treasury shares is expected to be completed by the end of this month.
The sale is part of the bank's move to raise its operating capital and expand its operations over the next three years, including investing in digital banking services.
"We will sell the stake to one or more foreign investors, and they will not necessarily be our strategic investors," Luu Trung Thai, Military Bank CEO.
Alibaba considers $10bn listing in Hong Kong in November.
Alibaba, a Chinese e-commerce group, plans to raise between $10bn and $15bn from the proposed placement, which was scuppered in August as pro-democracy protests raged across the city.
Alibaba, which is listed in New York and valued at $500bn, plans its book building and listing to take place in the week beginning November 25. The company is looking to expand its Chinese customer base beyond its core market in big cities to less developed areas to combat slowing retail sales growth.
K Raheja and Blackstone to raise $500m from REIT IPO. (FS)
Real estate firm K Raheja and private equity firm Blackstone Group are looking to raise about $500m by listing their jointly owned income-producing commercial portfolio as a REIT.
The joint entity is expected to file its papers with the capital market regulator and plans to list by the end of the first quarter of 2020. Blackstone is not planning to be a sponsor to the proposed REIT as it holds only a minority stake in the portfolio.
EV Growth reopens debt fund, eyes $250m hard cap. (FS)
EV Growth, a joint venture between East Ventures, SMDV, and Yahoo! Japan, reopened its inaugural venture capital fund to receive additional investments and potentially reach its $250m hard cap, Deal Street Asia reported.
Earlier this year, EV Growth closed its first fund at $200m, exceeding the initial target of $150m, as it secured commitments from SoftBank Group, Pavilion Capital, Indies Capital, and other regional investors.
Qatar Airways expresses interest in buying a stake in IndiGo.
Qatar Airways expressed its interest to acquire a stake in IndiGo, India's largest airline, to help the Dosa-based airlines to expand its operations.
A stake in an Indian carrier will help Qatar Airways to compete with its Middle Eastern rivals by expanding in a market where air-travel penetration remains low. IndiGo has emerged as the most significant Indian airline following the collapse of Jet Airways.
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