AMERICAS
Shareholders of luxury brand Tiffany & Co agreed to the acquisition by bigger rival LVMH, which owns high-end brands like fashion label Louis Vuitton, Dior perfumes, Moet & Chandon wines and others. The addition of Tiffany to the LVMH family will primarily bolster its jewelry business.
News of a potential deal surfaced in October of last year when LVMH confirmed it was in negotiations with Tiffany. LVMH announced an official offer in November, valuing Tiffany & Co. at $16.2bn, or around $135 per share.
Tiffany is advised by Centerview Partners, Goldman Sachs, Weil Gotshal and Manges, Sullivan & Cromwell, and Sard Verbinnen & Co. LVMH is advised by Citigroup, JP Morgan, Cleary Gottlieb Steen & Hamilton, Skadden Arps Slate Meagher & Flom, White & Case, Brunswick Group, DGM Conseil, Deluxewords, Kekst CNC, Montfort Communications, SEC and Partners, and Publicis Consultants. Debt providers are advised by Allen & Overy.
Advent International agreed to acquire Forescout Technologies, a provider of device visibility and control solutions, for $1.9bn. The purchase price represents a premium of approximately 30% over Forescout's closing share price of $25.45 on October 18, 2019. Advent will be joined by Crosspoint Capital Partners, a private equity investment firm focused on the cybersecurity and privacy industries, as a co-investor.
"Forescout has established itself as a leader in device visibility and control, with the most advanced platform in the market. We are still in early innings of a large market opportunity as every organization needs visibility into what is connecting to their network and how to mitigate against high-risk devices, including non-traditional IoT and OT devices. This transaction represents an exciting new phase in the evolution of Forescout. We are excited to be partnering with Advent International and Crosspoint Capital, premier firms with security DNA and track records of success in strengthening companies and supporting them through transitionary times. We look forward to working with Advent and Crosspoint Capital to advance our strategic objectives and want to thank our employees for their continued hard work and commitment to Forescout," Michael DeCesare, Forescout CEO and President.
Forescout is advised by Morgan Stanley and Wilson Sonsini Goodrich & Rosati. Advent is advised by Ropes & Gray and Finsbury. Debt financing is provided by Owl Rock Capital.
Science Applications International, an American company headquartered in Reston, Virginia that provides government services and information technology support, agreed to acquire the US federal business of Unisys, an American global information technology company, for $1.2bn. The acquired unit is a provider of infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service through scalable and repeatable solutions to US federal civilian agencies and the Department of Defense.
"With the addition of Unisys Federal, SAIC will be a leading provider of digital transformation services and solutions to the federal government. This exciting opportunity advances our strategy by building on our modernization capabilities, increasing customer access, accelerating growth and enhancing shareholder value. The financial benefits of acquiring Unisys Federal are compelling, including accretion of adjusted EBITDA margins, non-GAAP earnings per share, and cash generation," Nazzic Keene SAIC CEO.
Unisys is advised by Centerview Partners and Sullivan & Cromwell. SAIC is advised by The Avascent Group, Citigroup, Guggenheim Partners and King & Spalding.
Santen Pharmaceutical, a Japanese pharmaceutical company specializing in ophthalmology, and Verily, Alphabet's research organization devoted to the study of life sciences, agreed to establish a joint venture focused on applying microelectronics and scalable digital technologies to ophthalmology. Financial terms were not disclosed.
"This joint venture will combine Verily's cutting-edge digital technology and our global industrial and commercial ophthalmology business platform to pursue innovation in ophthalmology. Santen has actively promoted collaboration and open innovation with various external organizations in order to enhance eye health, and corresponding quality of life, for people around the world. Digital technology is a transformational driver in health and we hope that this joint venture will be a significant step forward in paving the way for better eye care around the world," Shigeo Taniuchi, Santen President and COO.
Santen is advised by Morrison & Foerster. Verily is advised by Sullivan & Cromwell.
Quad-C Management, a middle-market private equity firm, completed the recapitalization of Knox Capital-backed HaystackID, a specialized eDiscovery services firm. Financial terms were not disclosed.
"HaystackID has quickly become one of the leaders in delivering quality litigation support services under extreme deadlines to meet the needs of its customers regardless of their location or language. The Company's remote review platform, ReviewRight, is unique in the marketplace and allows HaystackID to deliver an unmatched level of service to its customers," Jack Walker, Quad-C Principal.
HaystackID was advised by Robert W Baird.
Liquid Agency, an experience design firm headquartered in Silicon Valley, completed the acquisition of Vignette, a provider of employee experience solutions. Financial terms were not disclosed.
"Data shows that companies that invest in employee experience are four times more profitable than those that don't. It is a proven business statistic and one that we see increasing as talent continues to be the most powerful company differentiator. With the acquisition of Vignette, we are bolstering our best in class offering to meet the growing need by clients to better serve this vital audience," Scott Gardner, Liquid CEO.
Liquid Agency was advised by Toni Lee.
Cushman & Wakefield, a global real estate services firm, agreed to acquire Pinnacle Property Management Services, the third-largest multifamily property management firm in the US. Financial terms were not disclosed.
"The acquisition of Pinnacle will greatly enhance our ability to provide a full complement of services to the many investors active in the multifamily space. Pinnacle is a proven industry leader with the specialized expert knowledge to help us seamlessly execute our clients' multifamily investment strategies through the entire investment life cycle," Carlo Barel di Sant'Albano, Cushman & Wakefield Chief Executive of Global Capital Markets & Investor Services.
Endeavor, a holding company for talent and media agencies, agreed to acquire a minority stake in SailGP, a sports and entertainment group, at a $200m valuation.
“SailGP is transforming the way people view sailing. For the first time, the sport is being packaged in a broadly appealing, consumable, consistent and exciting format, bringing it in line with some of the world’s top sporting events. If the first season is any indication, SailGP has incredible potential and strong value for its partners, and we look forward to helping forge the future of the league,” Mark Shapiro, Endeavor President.
NBBJ, the global architecture and design firm, agreed to acquire ESI Design, a New York-based design studio. Financial terms were not disclosed.
"By integrating the design of architecture and dynamic digital experiences, we will create boundless opportunities to energize the places we live, work, and play to stimulate our senses and inspire discovery, learning, and impact. The acquisition of ESI Design brings this vision to life and increases NBBJ's ability to serve our clients as they activate their brands, create community, inspire wellbeing, and thrive," Steve McConnell, NBBJ Managing Partner.
Daxko, a provider of operations and financial management solutions, completed the acquisition of UpLaunch, a CRM and marketing automation software provider. Financial terms were not disclosed.
"We are thrilled to welcome UpLaunch to the Daxko family. UpLaunch's easy-to-use, yet highly-effective CRM and marketing automation toolset is exactly what our customers need to grow in today's hyper-competitive boutique fitness market," Ron Lamb, Daxko CEO.
Diversified Search, an executive search firm, completed the acquisition Storbeck Search & Associates, an education executive search firm. Financial terms were not disclosed.
“We are proud to join a firm as dynamic as Diversified for many reasons, but above all because we share a fundamental commitment to doing our very best to identify the ideal leader for each client. Leadership in education and the nonprofit sector is more important than ever, and the competition for exceptional leaders is intense. It is going to be exciting to work together across this extraordinary Diversified network that shares our focus on delivering leaders who excel for every institution,” Shelly Storbeck, Storbeck Search & Associates Founder.
Mercer closes private markets fund at $2.7bn. (FS)
PE News reported that US-headquartered consultancy Mercer closed its fifth private markets fund with $2.7bn in total commitments.
Mercer Private Investment Partners V was larger than its predecessor, which closed in 2017 at $2.6bn.
PPD raised $1.62bn in US IPO.
PPD, a biotechnology and drug-research services firm, raised $1.62bn in the biggest US initial public offering so far this year.
The company sold 60m shares for $27 each after marketing them $24 to $27. PPD is valued at $9.16bn in the IPO based on the outstanding shares listed in its filings.
SpaceX considers a spinoff and IPO for Starlink Business.
SpaceX, a private American aerospace manufacturer and space transportation services company, plans to spin out and pursue a public offering of its budding space-internet business Starlink.
Space Exploration Technologies has already launched more than 240 satellites to build out Starlink, which will start delivering internet services to customers from space this summer, according to Gwynne Shotwell, Starlink President.
BNDES sold stake in Petroleo Brasileiro for $5.2bn.
The Brazilian state development bank sold its voting stake in Petroleo Brasileiro, a semi-public Brazilian multinational corporation in the petroleum industry, for $5.2bn as part of a wave of asset sales aimed at decrease of government influence in Latin America’s biggest economy.
BNDES sold all 734m shares, including over-allotments, for $7 apiece late Wednesday, Bloomberg reported. That’s a discount of less than 2% to the closing price, an indication that demand held up well in the face of sinking crude prices. Shares rose more than 1% in early trading Thursday to top the offering price.
Barrick Gold denies rumors of a merger with Freeport-McMoran.
Barrick Gold, the second-largest gold mining company in the world, denied rumors about being in merger talks with Freeport-McMoran, an Arizona-based mining company. Mark Bristow, Barrick Gold CEO, said that he is interested in the company’s Grasberg mine in Indonesia, and indicated he wants to expand in the Pacific Rim.
“If you’re going to be a world-class gold miner, you’re going to have to accept copper. In ten years’ time the most strategic metal on this planet is copper, if you believe the EV story, and I do,” Mark Bristow.
Ed Breen drives fees for Evercore and Goldman. (People)
Ed Breen, the 63-year-old DuPont de Nemours Chairman, supervised at least $214bn of mergers and acquisitions during his career, Bloomberg reported. His work earned fees for over a dozen investment banks, from Evercore to Goldman Sachs Group.
EMEA
The European Commission opened an in-depth investigation to assess the proposed acquisition of GrandVision by EssilorLuxottica. The Commission is concerned that the merger may reduce competition for the wholesale supply of ophthalmic lenses and eyewear, as well as for the retail supply of optical products.
"EssilorLuxottica is the world's largest supplier of eyewear and GrandVision is Europe's largest optical retail chain. In this consolidating market, we need to carefully assess whether the proposed merger would lead to higher prices or reduced choices for consumers when they visit their local optician," Margrethe Vestager, EC Executive Vice-President.
GrandVision is advised by ING Bank, Bredin Prat and De Brauw Blackstone Westbroek. EssilorLuxottica is advised by BNP Paribas, Citigroup, Goldman Sachs, BonelliErede, Latham & Watkins, Stibbe, Sullivan & Cromwell, Brunswick Group and Community Group. Credit Agricole and HSBC are providing debt financing and are advised by Hogan Lovells.
Apollo Global Management agreed to acquire Covis Pharma, a global specialty pharmaceutical company, from Cerberus Capital Management. Financial terms were not disclosed.
"We are excited to work closely with Covis Pharma’s proven leadership team as they continue to develop treatments that improve patients’ lives. We see significant opportunities ahead as we pursue our shared vision of providing innovative pharmaceutical products to an even broader market. We believe that Covis Pharma is extremely well-positioned to grow as a pharmaceutical platform given our collective expertise and Apollo’s deep financial resources," Samuel Feinstein, Apollo Partner.
Covis Pharma and Cerberus are advised by Rothschild & Co and Dechert. Apollo Global Management is advised by Barclays, Paul Weiss Rifkind Wharton & Garrison and Rubenstein Associates.
Elengy, the European operator of liquefied natural gas terminals, agreed to acquire the remaining 27.5% stake in Fosmax, which operates France’s Fos Cavaou liquefied natural gas terminal, from Total, a French energy group, for c. $260m.
For Elengy this acquisition reflects the ambition to increase the industrial development of its sites at Fos-sur-Mer, the Fos Cavaou and Fos Tonkin facilities, at a time when LNG enjoys a new boom to support the ecological transition.
Total is advised by Nomura.
CVC explores options for Elsan. (FS)
CVC Capital Partners is exploring options for its French private medical chain Elsan, Bloomberg reported. The private equity firm has been speaking with potential advisers about a sale or initial public offering of Elsan. A deal could value the company at about $3.3bn.
CVC acquired Elsan in 2014 from private equity firms NiXEN Partners and 3i Group for an undisclosed amount.
BP considers a sale of Algerian gas plant.
BP, a multinational oil and gas company, considers a sale a 46% stake in the In Amenas natural gas plant for $2bn after recent talks on a sale to Rosneft failed, Reuters reported. The sale is part of a $15bn disposal program BP is targeting by the middle of 2021.
The approval of a sale of the Algerian assets will be one of the first major decisions for Chief Executive Bernard Looney, who took office on Wednesday after his predecessor Bob Dudley stepped down following a decade at the helm.
mBank seeks for an investor not present in Poland.
Poland’s mBank CEO said that the attractiveness of the Polish banking sector was diminishing, speaking in the context of the sale of mBank to foreign investor Commerzbank.
“From mBank’s point of view, it would be better to find an investor who isn’t already in Poland,” Cezary Stypulkowski, mBank CEO.
Kingspan needs to spend €1bn on acquisitions over the next two years.
Kingspan, a building insulation specialist, will need to spend around €1bn ($1.1bn) on acquisitions over the next two years to maintain share price momentum, according to Davy Corporate Finance. The Cavan group’s shares have risen by 56% in the past 12 months, valuing the business at around €10.5bn ($11.5bn).
“Kingspan’s valuation is stretched relative to the level at which it has generally traded. Further M&A is the most plausible source of the additional earnings growth that would support the group’s valuation and maintain the stock’s momentum. We estimate investment of circa €500m ($551m) per annum is probably needed. Although this looks high, we believe it is a credible level," Flor O’Donoghue, Davy Analyst.
Total, an energy company that produces and markets fuels, natural gas and low-carbon electricity, and Adani, an Indian renewables company, agreed to create a joint venture in a c.$500m deal.
“Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy. This interest in over 2 GW of solar projects represents another big step of our investment in India's energy sector. It will support our ambition to contribute to the deployment of 25 GW of renewable capacities by 2025. We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market,” Patrick Pouyanné, Total Chairman & CEO.
Private equity firm Next Capital completed its acquisition of a 51% stake in TM Insight, a supply chain, property and project management services business. Financial terms were not disclosed.
"Next Capital's investment into our business will enable a new chapter for TM Insight as we expand our integrated service in supply chain, property and project management across the Asia-Pacific region," TM Insight.
Hahn & Co, a South Korean private equity house, agreed to acquire the biofuels unit of SK Chemicals, a chemicals producer, for $322m.
The sale of the business, which makes biodiesel and bio-heavy oil, is expected to boost the management efficiency of SK Chemicals and enable it to focus on investment for future growth engines of eco-friendly materials and life science.
Elliott Management builds a $2.5bn stake in SoftBank. (FS)
Elliott Management built up a more than $2.5bn stake in Japan’s SoftBank Group and is pushing the sprawling technology giant to make changes that would boost its share price, WSJ reported. At current prices, the investment would be equivalent to around 3% of SoftBank’s market value.
Top Elliott staff met with SoftBank founder Masayoshi Son. They also met with his deputies including Yoshimitsu Goto, the chief financial officer, and Vision Fund head Rajeev Misra. So far, discussions between the two companies have been cooperative.
Bull Group raised $511m in Shanghai IPO. (FS)
Hillhouse Capital-backed Bull Group, a civil, electrical products manufacturer, raised $511m in its initial public offering on the Shanghai Stock Exchange. Bull Group offered 60m shares at $8.5 apiece. The stock opened at $10, with its market cap exceeding $7bn representing a significant surge.
The company will use the IPO proceeds to finance its wall switch and LED lighting manufacturing base projects and for product innovation.
Tesco invites Thai tycoons for second round of bids for its Asia unit.
Tesco, a Britain’s supermarket chain, is inviting Thai tycoons to the second round of bidding for its operations in Thailand and Malaysia that could fetch more than $7bn, Bloomberg reported.
Thai billionaire Dhanin Chearavanont’s Charoen Pokphand Group and Central Group, controlled by the Chirathivat family, were picked to proceed with deadline for the bids due in the next few weeks. Tycoon Charoen Sirivadhanabhakdi’s TCC Group has also been chosen.
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