The federal judge overseeing the Federal Trade Commission's case to block Tapestry's $8.5bn takeover of rival Capri rejected a bid by the companies to force antitrust enforcers to turn over more information about their definition of "accessible luxury" handbags, Bloomberg reported.
In a ruling at a hearing on May 13, Judge Jennifer L. Rochon in Manhattan said the FTC's complaint offered enough detail on the proposed market in which Tapestry and Capri compete, with nine pages outlining the market. The companies filed a motion to force the FTC to offer more details on the proposed market, arguing the complaint was too vague.
Basalt Infrastructure Partners, an independent infrastructure investment firm, agreed to acquire the distributed resources business of American Electric Power, a company that generates, transmits, and distributes electricity, serving residential, commercial, and industrial customers, for $315m.
"I'm grateful to the AEP OnSite Partners team and thank them for their contributions to AEP over the past decade. This sale will allow the distributed resources business and its valued employees to continue to succeed. AEP is focused on a strong balance sheet as we direct capital to our regulated operations to provide reliable, affordable energy to our customers. The proceeds from the sale will be used to support our financing plan as we make these investments to benefit customers and deliver value to all of our stakeholders," Ben Fowke, AEP Interim CEO and President.
American Electric Power is advised by RBC Capital Markets and Morgan Lewis & Bockius.
Edelman Financial Engines, an independent wealth planning and workplace investment advisory firm, completed the acquisition of Soundmark Wealth Management, an investment advisory firm. Financial terms were not disclosed.
"We are thrilled to welcome Soundmark to EFE. Bill has built an excellent team, and we know they will be a great addition to our firm. We are united by a common goal to serve in the best interest of our clients and to reach more people with the holistic, wealth planning capabilities they need to achieve their financial goals," Jay Shah, Edelman Financial Engines CEO.
Soundmark Wealth Management was advised by Montgomery Purdue. Edelman Financial Engines was advised by Baker McKenzie.
Axalta, a prominent global coatings company, agreed to acquire The CoverFlexx Group, a provider of automotive refinish and aftermarket applications, from Transtar Holding Company, a provider of automotive aftermarket solutions, for $295m.
"Axalta is a premier global manufacturer of refinish and industrial coatings. Coupling our brands and opportunities to expand is exciting, and we look forward to joining their team and experiencing continued growth," Ben DePompei, The CoverFlexx Group President.
Venrock Healthcare Capital Partners, a private equity firm, led a $107m Series C round in Lycia Therapeutics, a specialist in extracellular protein degradation, with participation from Janus Henderson Investors, Marshall Wace, Franklin Templeton, Redmile Group, RTW Investments, Blue Owl Healthcare Opportunities, Invus, Eli Lilly and Company and Alexandria Venture Investments.
Lycia's next-generation degradation approach leveraging lysosomal targeting chimeras, or LYTACs, is designed to target the untapped extracellular proteome, including transmembrane and secreted proteins. Lycia has made notable progress advancing its pipeline of LYTACs and will use the proceeds from the Series C financing to advance its lead programs into the clinic for autoimmune and inflammatory diseases.
Lycia Therapeutics was advised by Melone Communications (led by Elizabeth Melone).
Broadridge Financial Solutions, a provider of investor communications and technology solutions, agreed to acquire the Securities Industry Services of Kyndryl, an American multinational information technology infrastructure services provider. Financial terms were not disclosed.
"The partnership with Kyndryl and the acquisition of the SIS business further underscore Broadridge's long-standing commitment to being a leading technology provider to Canadian financial services firms. The combination of the SIS technology business and Kyndryl managed services with our industry-leading Broadridge Wealth Platform will further accelerate our ability to bring innovation to Canada and meet the increasingly complex needs of Canadian firms," Karin Kirkwood, Broadridge President.
Broadridge Financial Solutions is advised by RBC Capital Markets.
BELFOR Franchise Group, a global residential and commercial services franchisor, agreed to acquire JUNKCO+, a junk removal and demolition company with plans to expand across the country. Financial terms were not disclosed.
"Joining BELFOR Franchise Group ensures JUNKCO+ has the resources needed to empower franchisees to succeed along with the support structure in place to help us grow the brand nationwide. BELFOR Franchise Group has a proven track record of building and supporting the top service franchise brands, and by offering this new franchise opportunity to aspiring business owners, the partnership allows us to extend our quick and convenient junk removal services to customers across the country," Blake Gordon, JUNKCO+ Brand President.
BELFOR Franchise Group is advised by Ripley PR (led by Heather Ripley).
Comvest Partners-backed GAI Consultants, a planning, engineering & environmental consulting firm, completed the acquisition of Creighton Manning Engineering, a preeminent engineering, planning and environmental consulting firm. Financial terms were not disclosed.
"US infrastructure is in need of increasing levels of technical expertise and investment in its repair, maintenance, improvement and expansion. Comvest remains committed to supporting GAI's ambition to be a leading national provider of engineering and consulting services, particularly for the transportation and power and energy infrastructure markets," Kevin LaHatte, Comvest Partner.
Pye-Barker Fire & Safety, a fire-safety services and maintenance company, completed the acqusition of First Trust Alarm Company, a specialist in fire alarms, security systems, and fire code compliance. Financial terms were not disclosed.
"I've dedicated my life to this industry I love. Selling the business was not an easy decision, but I have trust in Pye-Barker to carry on the legacy we've built here, one of commitment to quality work and a job done right. I'm confident this is a great step forward for our team," Joe Bowman, First Trust CEO.
Stereotaxis, a provider of surgical robotics for minimally invasive endovascular intervention, agreed to acquire Access Point Technologies, a privately-held Minnesota-based developer of innovative electrophysiology catheters. Financial terms were not disclosed.
"Acquiring APT provides Stereotaxis with high-quality catheter development and manufacturing capabilities, and will amplify and accelerate Stereotaxis' efforts to advance the treatment of complex arrhythmias and the adoption of robotics broadly within endovascular surgery," David Fischel, Stereotaxis Chairman and CEO.
Shore Capital-backed Sweetmore Bakeries, a Chicago-based family of specialty bakeries, completed the acquisition of Sweet Eddie's, a wholesale manufacturer of cinnamon rolls and other high-quality baked goods. Financial terms were not disclosed.
"We are thrilled to add Sweet Eddie's to the Sweetmore family of bakeries. Our goal is to serve the very best retail and foodservice customers with high quality baked goods, and by adding the complementary cinnamon roll and yeast-raised categories to our portfolio, along with a great team at Sweet Eddie's, we will be even better positioned to do so," David Veenstra, Sweetmore Bakeries CEO.
Diversio, a global platform enabling organizations to develop more inclusive and equitable workplaces, completed the acquisition of CCDI Consulting, a consultancy specializing in diversity, equity, and inclusion strategies. Financial terms were not disclosed.
By integrating CCDI Consulting's portfolio of service offerings, collective decades of experience, and resources, Diversio strengthens its position as the leading full-service platform in the workplace inclusion space. Diversio now offers a comprehensive solution including the Diversio Platform survey and data analysis dashboard, tailored consulting services to develop internal programs, goal and Inclusion Score™ tracking, and hundreds of training courses with proven impact.
Invesco-backed Mynd in talks to merge with Rival Roofstock. (FS)
Mynd, a housing operator that won a $5bn mandate from Invesco Real Estate funds in 2021, is in advanced talks to merge with Roofstock, as a frozen market for home sales fuels consolidation in the single-family rental industry, Bloomberg reported.
The firms, which use technology to help investors buy, sell and manage rental homes, are nearing a deal that may be announced as soon as this week, although talks could still fall apart.
Verizon wants to buy back Los Angeles stake from US Cellular.
Verizon Communications is interested in buying back US Cellular stake in its Los Angeles business if the companies can agree on a reasonable price, Bloomberg reported.
US Cellular owns a stake in Verizon’s Los Angeles market segment, and Verizon has long been eager to buy it back. The company would only strike a deal if the price were right.
Kraft Heinz exploring sale of Oscar Mayer business.
Kraft Heinz is exploring a sale of its Oscar Mayer meats business that could fetch anything between $3bn to $5bn. The Oscar Mayer business, known for hot dogs, bacon, ham, and bologna products, has had to deal with declining consumer demand in the face of a shift to healthier options, Reuters reported.
Kraft Heinz has tapped Bank of America and Centerview Partners to gauge interest in the business. While it is not clear as to who might be interested in purchasing the business, but potential buyers could include private equity firms or other food-industry players.
KKR, Apollo lead $1bn private loan for ASC refinancing. (FS)
KKR and Apollo Global Management are providing a more than $1bn direct loan to private equity-owned ASC Engineered Solutions, winning the deal over Wall Street banks, Bloomberg reported.
The debt is pricing at 5 percentage points over the Secured Overnight Financing Rate. The cash will be used to refinance syndicated debt the company borrowed in 2019 that JP Morgan arranged.
Tycoon Birla’s Novelis plans US IPO as soon as June.
Novelis, the aluminum products maker owned by billionaire Kumar Mangalam Birla’s Hindalco Industries, is seeking to complete a planned US IPO as soon as early June, Bloomberg reported.
The company, owned by a unit of India’s Hindalco, could begin formally marketing the deal in about two weeks. Novelis on Monday filed publicly with the US Securities and Exchange Commission for the listing.
Aeromexico seeks US IPO after delisting Mexico shares.
Aeromexico is seeking a return to equity markets, filing for a US IPO two years after delisting from the Mexican stock exchange, Bloomberg reported.
The company intends to list American Depositary shares or ADS on the NYSE under the symbol AERO and there will be no public offering of the shares in Mexico. The company didn’t disclose the size or price range of the offering.
Clearlake Capital sets $16.7bn hard cap for eighth buyout fund. (FS)
Clearlake Capital has raised $7.5bn as part of its $15bn goal for Clearlake Capital Partners VIII, setting a $16.7bn hard cap for its eighth primary buyout fund.
The firm invests primarily North American mid- to large-sized companies valued between $1bn and $3bn and operating in the software and technology, energy and industrials, and food and consumer services sectors.
Accel raises $650m to invest in AI, cybersecurity startups. (FS)
Venture capital firm Accel has raised a $650m fund to invest in early-stage companies in Europe and Israel with focus on AI and cybersecurity, DealStreetAsia reported.
The new fund will be Accel's eight since opening its London office in 2000. Accel has so far backed more than 200 companies across 20 countries in the region and still has investments in more than 100 companies.
Sands Capital announces $555m close of Life Sciences Pulse Fund III. (FS)
Sands Capital, an active, long-term investor in innovative businesses globally, announced the close of its third life sciences fund, Sands Capital Life Sciences Pulse Fund III, raising $555m.
Pulse III was met with high demand from both existing and new limited partners. This close increases total Pulse strategy capital commitments to $1.3bn, including Sands Capital Life Sciences Pulse Fund and Sands Capital Life Sciences Pulse Fund II. The team will continue investing with the same emphasis on private therapeutics, diagnostics, medical devices, and life sciences tools businesses, in support of the strategy’s mission to help transform how diseases are defined, diagnosed, and treated.
Warburg Pincus is relocating a New York dealmaker to Singapore. (People)
Warburg Pincus is relocating a senior dealmaker to Singapore from New York as the firm bolsters its presence in the region, Bloomberg reported.
After moving to Singapore, Andrew Park, a managing director who has focused on investments in technology and health-care information technology, will focus on pan-Asia tech investing. Park, who joined the firm in 2008, has worked with companies including Boomerang, GHX, Modernizing Medicine and WebPT.
EMEA
KKR, an American global investment company, agreed to acquire IQGeo Group, a provider of end-to-end geospatial network management software, for £316m ($396m).
"We are committed to the success of our customers and our employees. Thanks to them, we have built a thriving business that delivers award-winning innovative software for the telecommunication and utility industries worldwide. The proposed acquisition is in direct response to this success, creating an opportunity for us to accelerate investment in our people, processes, and products and increase our ability to respond to market momentum. It's also important to us that there is close cultural alignment between KKR's Global Impact and Technology Growth funds with IQGeo's focus on innovation and mission to bridge the digital divide and build the net-zero energy networks of the future. Their investment will underpin the next phase of growth of IQGeo's exciting journey," Richard Petti, IQGeo CEO.
Mews, a cloud-based hotel property management system that helps simplify hotel operations, agreed to acquire HS3 Hotelsoftware, a provider of hotel management and administration software. Financial terms were not disclosed.
"The German hospitality market is seeing rapid transformation which is raising the bar for guest experience. That's why it's such an exciting time to join forces with Mews, for our team, our customers and the future of hospitality in Germany," Thorsten Mesch, HS3 Hotelsoftware CEO.
Italgas begins exclusive talks to buy 2i Rete Gas. (FS)
Italgas, Europe's biggest gas distributor, said on May 13 that it started exclusive talks to acquire smaller rival 2i Rete Gas. A merger between the two would be a major step in the consolidation of the gas distribution market in Italy with 2i Rete gas adding a 20% market share to Italgas' 35%, Reuters reported.
Italian infrastructure fund F2i has a 64% stake in 2i Rete Gas. Dutch pension fund APG and buyout group Ardian together hold the remaining 36.1% under the vehicle Finavias. Should the acquisition go through, Italgas will finance the acquisition via a bridge credit facility underwritten by JP Morgan, which could be refinanced through a combination of equity, debt or equity like instruments.
Walgreens contacts potential buyers for Boots UK chain.
Walgreens Boots Alliance is in the process of contacting potential buyers to sell its UK-based Boots drugstore chain in a second attempt at separating the unit, sending its shares up nearly 5%, Reuters reported.
The company is working with advisers to conduct preliminary discussions with prospective bidders for the unit, worth about £7bn ($8.78bn).
Anglo American eyes break-up as it fends off BHP bid.
Anglo American laid out plans on May 14 for a potential break-up of the group via a demerger or sale of its steelmaking coal, nickel, diamonds and platinum businesses as it tries to fend off a takeover bid from BHP Group, Reuters reported.
The announcement comes a day after the London-listed miner rejected a raised $43bn offer from BHP, saying it continued to significantly undervalue the company and was "highly unattractive" for its shareholders.
Volkswagen said to eye Traton stock sale after price surge.
Volkswagen is exploring the sale of as much as €1bn ($1.1bn) of stock in Traton, taking advantage of the truckmaker’s surging price to increase the number of shares available for trading, Bloomberg reported.
VW, which owns about 90% of Traton, has been talking to potential advisers about a sale to institutional investors via an accelerated bookbuilding transaction as soon as the next few weeks. The size of the offering could be about €500m ($540m) to €1bn ($1.1bn) depending on market conditions.
Music platform Epidemic Sound eyeing possible 2025 IPO.
Sweden's Epidemic Sound is in the early stages of considering strategic options, including a stock market listing, as dealmaking in the wider music industry heats up, Reuters reported.
The Stockholm-based group, which licences music and sound effects to content creators and brands, is expected to appoint advisers in the coming months to prepare for an initial public offering of shares as soon as next year.
Carlyle provides over $400m private debt to Big Bus Tours. (FS)
Carlyle is providing over $400m of private credit loans to Big Bus Tours, Bloomberg reported.
Private equity firm Exponent bought Big Bus Tours in 2015. The business, which operates open-top sightseeing bus tours, will use the debt to fuel further expansion globally.
Everton offered lifeline loan as ownership crisis rumbles on. (FS)
Struggling Premier League football club Everton has been offered a loan of as much as £150m ($188m) by GDA Luma Capital, a private equity firm specializing in distressed debt, Bloomberg reported.
The offer would help complete construction of the team’s new 53k-capacity stadium in Liverpool’s Bramley docks and is subject to due diligence.
Dubai’s Property Finder raises $90m debt from Francisco Partners. (FS)
Dubai-based Property Finder raised $90m in debt from Francisco Partners to help finance the buyout of its first institutional investor, signaling continued foreign interest in the United Arab Emirates’ thriving real estate market, Bloomberg reported.
The online real estate platform bought back the stake held by BECO Capital. Property Finder said the deal allows BECO to exit “with a strong return on its investment.” It didn’t give details.
Brookfield, Qatar Fund eye China opportunities as others retreat. (FS)
Brookfield and Qatar’s sovereign wealth fund continue to explore investment opportunities in China even as some other investors pull back from the world’s second-largest economy, Bloomberg reported.
“There are many global investors that are not interested in China anymore, but there a lot that are,” Brookfield CEO Bruce Flatt told a panel at the Qatar Economic Forum May 9.
General Atlantic to deepen Gulf push with regional offices. (FS)
General Atlantic, the investment firm whose bets have included Facebook and Airbnb, plans to open offices in the Middle East as part of its efforts to deepen ties to the cash-rich region, Bloomberg reported.
“We’ve been active in the Gulf for over a decade,” Chris Kojima, the private equity firm’s global head of capital solutions told a panel at the Qatar Economic Forum May 14. “When you think about the long-term changes that are affecting the world and the region particularly, we see great opportunity.”
APAC
Uber, a multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport, agreed to acquire foodpanda delivery business in Taiwan from Delivery Hero, a provider of online food ordering services, for $950m.
"The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years. In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders. This deal gives foodpanda an exciting runway in Taiwan and we wish them all the best in their next chapter," Niklas Östberg, Delivery Hero CEO and Co-Founder.
Uber is advised by Goldman Sachs. Delivery Hero is advised by UniCredit.
Synechron, a provider of information technology services, completed the acquisition of iGreenData, a digital engineering organization with a prime focus on cloud first, data-centric digital engineering and blockchain offerings. Financial terms were not disclosed.
"We're thrilled to welcome iGreenData into the Synechron family. This acquisition will enable us to continue deepening our payments technological strength and expand our footprint to the Australian market. Together, we will leverage our combined expertise in digital transformation and innovation to deliver value-added solutions that meet the evolving needs of our clients," Faisal Husain, Synechron Co-Founder and CEO.
SoftBank commits $5bn to AI after three years of losses.
SoftBank said its net asset value surged thanks to its UK chip-design unit, and that it has committed to five investments in artificial intelligence on the scale of $1bn each, WSJ reported.
SoftBank's showed its transition to an AI focus, the latest makeover for a company that previously was centered on telecommunications and at one point had much of its value tied up in Chinese internet company Alibaba.
KKR taps private credit loan for Australian software firm MYOB. (FS)
KKR is in talks for a new loan with private credit lenders for MYOB, an Australian accounting software firm that the private equity giant acquired in 2019, Bloomberg reported.
The senior loan will be used to repay MYOB’s junior debt. It will pay a margin in the 400 basis points-plus range. The size of the junior tranche in question is AUD145m ($95m).
Foxconn-backed Sharp to end TV display production, cut staff.
Foxconn-backed Sharp is exiting TV panel production and plans to seek volunteers for early retirement, abandoning a business in which it lost out to Chinese rivals, Bloomberg reported.
The Japanese electronics maker is halting operations at its sprawling display factory in Sakai, Osaka, which would be used as a data center to power AI, while scaling down production of small-to-medium-sized displays. The company also seeks to sell its electronics device segment, which includes camera modules and semiconductors.
Singapore private equity firm Everstone Capital mulls IPO for Everlife. (FS)
Private equity firm Everstone Capital is exploring an IPO of its Asian health services firm as plans to sell that business remain stuck, WSJ reported.
The Singapore-based firm has been seeking to sell Everlife Holdings for over $500m since the end of last year, in the wake of several attractively valued deals in the healthcare space.
HKUST sets up Redbird Innovation Fund to pool $256m for startups in its ecosystem.
The Hong Kong University of Science and Technology has set up the Redbird Innovation Fund, looking to collaborate with investment partners and create a pool of venture investments funds with up to HKD2bn ($256m) for financing into startups in its ecosystem, DealStreetAsia reported.
The University is now looking for investment managers to co-establish multiple venture investments funds in support of its startup ecosystem. One of the Redbird Innovation Fund key objectives is to support startups built by HKUST staff, students, and alumni, as well as companies that commercialise HKUST intellectual properties or are incubated by the university.
Sony to adopt new dual-CEO structure for video game unit. (People)
Sony would adopt a new leadership structure for its Sony Interactive Entertainment unit overseeing PlayStation, with two separate chief executives, WSJ reported.
The company said that effective June 1, Hideaki Nishino would become CEO of Sony Interactive Entertainment’s platform business group, while Hermen Hulst will become CEO of its studio business group.