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AMERICAS
Britain's competition regulator said it was investigating Cameco and Brookfield Renewable Partners' $7.9bn deal to acquire nuclear power plant equipment maker Westinghouse Electric.
"This is part of the standard regulatory approval process for transactions of this nature," Cameco.
Cameco is advised by CIBC World Markets, Goldman Sachs, Chiomenti (led by Salvo Arena and Filippo Modulo), Covington & Burling (led by Donald Ross, Patrick E. Manchester and J. D. Weinberg), Cuatrecasas Goncalves Pereira (led by Luis Perez De Ayala) and McCarthy Tetrault (led by David Lever). Financial advisors are advised by Skadden Arps Slate Meagher & Flom (led by Christopher Barlow). Brookfield Renewable is advised by Greenhill & Co, Cravath Swaine & Moore (led by Matthew M. Kelly) and Brunswick Group. Brookfield Business Partners is advised by BMO Capital Markets, RBC Capital Markets, Tudor Pickering Holt, Stikeman Elliott, Weil Gotshal and Manges (led by Michael Lubowitz) and Wolf Theiss (led by Tereza Naucova).
Lionsgate, a motion picture and television studio, agreed to acquire eOne, a Canadian multinational entertainment company, from Hasbro, a toy and game company, for $500m.
"The acquisition of eOne checks off all the boxes in areas that play to our core strengths. It will be immediately and highly accretive, adds a world-class library with thousands of properties, strengthens our scripted and unscripted television business and continues to expand our presence in Canada and the UK. The deal is the culmination of our long-standing relationship with the immensely talented team at eOne, and it continues to build our position as one of the world's leading independent content platforms with a stockpile of great intellectual properties and a unique, non-replicable portfolio of assets," Jon Feltheimer, Lionsgate CEO.
Lionsgate is advised by Ernst & Young, Jefferies & Company and Sheppard Mullin Richter & Hampton. Hasbro is advised by Centerview Partners, JP Morgan, Cravath Swaine & Moore, Mayer Brown and Stikeman Elliott. eOne is advised by Osler Hoskin & Harcourt.
Genstar Capital-backed Numerix, a capital markets risk management technology company, completed the acquisition of PolyPaths, a provider of analytics and risk management solutions. Financial terms were not disclosed.
"The acquisition of PolyPaths marks a pivotal milestone for Numerix as it expands our market expertise in structured finance and fixed income. By combining the strengths of Numerix and PolyPaths, we are able to deliver cutting-edge Front-to-Risk analytic solutions that address the evolving needs of our clients. The cultural alignment and shared DNA between Numerix and PolyPaths make this a natural fit, and we look forward to the opportunities that lie ahead," Manny Conti, Numerix CEO.
PolyPaths was advised by RBC Capital Markets and Skadden Arps Slate Meagher & Flom (led by Sean Doyle). Numerix was advised by Jefferies & Company and Willkie Farr & Gallagher.
General Atlantic, a growth equity firm, completed the investment in Financial Information Technologies, a provider of electronic payment processing, software and data solutions. Financial terms were not disclosed.
"Fintech's core mission is to enable frictionless commerce for retailers, distributors, and suppliers to accelerate sustained operational efficiency and improve insights and decision-making across the value chain. Our electronic payment and data insights technologies have been adopted by a growing number of sophisticated customers, and we are excited to leverage General Atlantic's deep experience across software and payments to help power our next phase of growth," Tad Phelps, Fintech CEO.
Financial Information Technologies was advised by William Blair & Co and Goodwin Procter. General Atlantic was advised by Raymond James (led by Jon Steele) and Paul Weiss Rifkind Wharton & Garrison (led by Cullen Sinclair and Matthew Abbott).
PacBio, a developer of high-quality, highly accurate sequencing solutions, agreed to acquire Apton Biosystems, a company developing a high throughput short-read sequencer using state-of-the-art optics and image processing, for $110m.
"I am impressed with Apton's progress in developing a novel, high throughput sequencing platform that has the potential to deliver very low-cost sequencing at tremendous scale. By integrating our highly accurate SBB technology with Apton's advanced optics and image processing capabilities, PacBio expects to commercialize a high throughput short-read platform faster than we had planned. This acquisition is consistent with our strategy to develop a multiproduct short-read sequencing portfolio alongside our long-read sequencing platforms, giving us an opportunity to reach an even greater portion of the multi-billion-dollar sequencing market," Christian Henry, PacBio President and CEO.
Apton is advised by Fenwick & West. PacBio is advised by Allen & Company and Wilson Sonsini Goodrich & Rosati.
Atalaya Capital, an alternative asset manager, and Culpeper Capital, a financial services-focused private-equity firm, completed the investment in Golden Gate-backed Mosaic Insurance, a global specialty insurer. Financial terms were not disclosed.
"We're excited to announce this important partnership for Mosaic as we grow critical mass and continue to take advantage of significant underwriting opportunities. Atalaya and Culpeper value what we've built to date, as well as Mosaic's future growth potential, and they bring additional diverse financial-sector expertise that will be critical for the next stage of our journey. We look forward to working with them," Mitch Blaser, Mosaic Co-Founder and Co-CEO.
Mosaic Insurance was advised by Citigroup and Paul Weiss Rifkind Wharton & Garrison. Atalaya and Culpeper were advised by Greenberg Traurig.
Arlington Capital Partners, a private equity firm, completed the acquisition of Integrated Data Services, a provider of software and technology-enabled support and development for federal government customers. Financial terms were not disclosed.
"IDS has developed an extensive software offering that automates day-to-day business processes and drives significant time and cost savings for the federal government. By aggregating data and serving as the single source-of-truth, CCaR enables users to effectively manage requirements, formulate budgets and track execution. Attractive market dynamics, including the growth in R&D funding and the push for increased transparency and improved auditing of federal spend, made for a compelling opportunity. We are excited to partner with the Company in its next phase of growth," Michael Lustbader, Arlington Managing Partner.
Integrated Data Services was advised by Lincoln International. Arlington Capital was advised by Robert W Baird (led by Jean Stack).
Frontenac-backed RCG Global Services, a global provider of digital transformation consulting services, combining digital strategy and modern cloud and data technologies, completed the acquisition of Woodridge Software, a FinTech focused software development firm. Financial terms were not disclosed.
"We are very excited to welcome the talented team of Woodridge Software to the RCG family. The Woodridge team expands our geographic footprint in the Western US and deepens our offering of solutions, especially in the financial services market. In joining the RCG team, Woodridge clients have access to a larger portfolio of solution offerings as well as access to world class offshore service delivery," Ramesh Ramani, RCG CEO.
Woodridge was advised by Technology Holdings (led by Terry Kavanaugh). RCG was advised by DLA Piper.
Flexjet, a private aviation company, completed the acquisition of Flying Colours, a preeminent aviation maintenance, repair and overhaul company. Financial terms were not disclosed.
"Bringing the capabilities of Constant Aviation, which Flexjet bought earlier this year, and now Flying Colours in-house enables us to ensure both the highest possible service quality and the maximum availability of aircraft for our Owners. Unlike other companies in our space that rely on third-party providers for their MRO needs, Flexjet now fully controls its maintenance and product support needs, and this aligns with our strategic vision of differentiating ourselves from the competition at every level and in every way. We're thrilled to welcome the talented Flying Colours team to Flexjet with their 40+ year history of excellence as a global leader in aircraft completions," Kenn Ricci, Flexjet Chairman.
Flying Colours was advised by Jefferies & Company.
Henry Schein, a provider of health care products and solutions to office-based dental and medical practitioners, completed the acquisition of a majority stake in Large Practice Sales, an advisor to independent dental practices on their sale or partnership with larger general practice and dental specialists. Financial terms were not disclosed.
"LPS is complementary to our existing Dental Practice Transition business and commitment to provide value-added services to our customers. For many years, we have had a successful practice transitions group dedicated to assisting smaller and mid-sized dental practices. By combining our expertise, we can effectively meet the needs of a broader range of dental professionals and ensure their success throughout the transition process," Stanley M. Bergman, Henry Schein Chairman of the Board and Chief Executive Officer.
Large Practice Sales was advised by Jefferies & Company.
A deal to take Donald Trump's media company public is facing another major setback, putting into question whether it will ever get completed.
Special-purpose acquisition company Digital World Acquisition said that its auditor Marcum — which has been riddled with regulatory problems of its own — abruptly resigned. The departure puts its merger with Trump Media & Technology Group in peril.
Digital World is advised by EF Hutton.
Mitsubishi UFJ Financial Group, a bank holding and financial services company, agreed to acquire a minority stake in US Bancorp, a commercial bank in the United States, for $936m.
US Bancorp announced plans to issue 24m shares of common stock to an affiliate of Mitsubishi UFJ Financial Group. As previously announced, on December 1, 2022, US Bancorp completed the acquisition of MUFG Union Bank's core regional banking franchise. US Bancorp received $3.5bn in additional cash held by MUFG Union Bank, which, under the terms of the purchase agreement, US Bancorp is required to repay on or prior to the fifth anniversary date of the acquisition, with a reasonable best-efforts obligation to repay up to $1bn within a reasonable time after conversion.
Hyundai Motor, an automotive company that also affiliates in other industries such as construction, steel, and finance, and Samsung Catalyst Fund, a multi-stage venture capital fund, led a $100m funding in Tenstorrent, a computing company that builds computers for AI, with participation from Fidelity Ventures, Eclipse Ventures, Epiq Capital and Maverick Capital.
"The trust in Tenstorrent shown by Hyundai Motor Group and Samsung Catalyst Fund leading our round is truly humbling. It has been impressive watching Hyundai Motor Group become the third largest automaker in the world through their aggressive adoption of technology including their acquisition of Boston Dynamics, their joint venture with Aptiv, and now their investment in us," Jim Keller, Tenstorrent CEO.
Low Carbon, a renewable energy company, and NU-E, a large-scale renewable energy developer, agreed to form a joint venture. Financial terms were not disclosed.
"We are delighted to be partnering with NU-E Corp to help drive our renewables expansion in North America. With more than a decade of experience creating large-scale renewables in the UK and Europe, the North American market represents a significant opportunity for the next stage of our growth as we look to accelerate the deployment of renewable energy on a global scale," Roy Bedlow, Low Carbon Founder and CEO.
Henry Schein, a provider of health care solutions to office-based dental and medical practitioners, agreed to acquire a majority stake in Shield Healthcare, a supplier of homecare medical products. Financial terms were not disclosed.
"As the US population ages and care increasingly moves into the home, Henry Schein is meeting this trend by enhancing our homecare medical products offering. We are delighted to expand our presence in delivering medical products directly to patients through Shield Healthcare. Together, we share an unwavering commitment to customer satisfaction," Stanley M. Bergman, Henry Schein Chairman and CEO.
Occidental buys back $522m of Berkshire preferred stock. (FS)
Occidental Petroleum bought back $522m of Berkshire Hathaway's preferred stock in the second quarter, demonstrating its willingness to repay Warren Buffett even as commodity prices drop. The purchase brings Occidental's redemptions this year to 12% of Berkshire's initial $10bn investment, which was used to fund the producer's acquisition of Anadarko Petroleum in 2019. Berkshire's preferred stock carries an 8% annual dividend, making it an expensive part of Occidental's capital structure, Bloomberg reported.
Separately, Berkshire owns 25% of Occidental's common stock and is the company's largest shareholder. Berkshire is willing to buy more Occidental common stock, Buffett said at its shareholder meeting in Omaha earlier this year. However, he ruled out buying the oil producer in its entirety.
Private equity deal drought spurs firms to raise cash creatively.
For years private equity firms had a simple way to keep investors happy: sell assets and share the proceeds. As the golden era of easy dealmaking and cheap debt ends, they're having to get more creative. Private equity deal volumes have almost halved in the US since the end of 2021, and buyout groups are scrambling to extend the life of investments and maintain the flow of money to their backers.
With the cash paid out to investors from selling assets falling 67% from its second-quarter 2021 peak, firms are hunting for other options. Executives at one financial advisory firm has been flooded with calls from funds asking about strategies that might prop up returns and capital. An active secondary market for private equity assets and the recent surge in nonbank financing have opened new escape routes for the industry — particularly for middle-market private equity shops, Bloomberg reported.
Carlyle-backed Sedgwick explores interest in minority stake sale. (FS)
Sedgwick, a claims management company backed by Carlyle Group, is exploring preliminary discussions with potential suitors. Inbound interest has sparked discussions with Carlyle about selling a minority stake in Sedgwick. A formal sales process hasn't begun and the company could decide against pursuing a transaction, Bloomberg reported.
Sedgwick became majority owned by global alternative asset manager The Carlyle Group following a $6.7bn transaction that was completed more than four years ago. At the time, Sedgwick was handling more than 3.6m claims on an annual basis.
Apollo leads deal for trucking firm Yellow's bankruptcy loan. (FS)
Creditors led by Apollo Global Management are nearing a deal to provide Yellow with fresh cash during a coming bankruptcy. Shares of Yellow were up 78% at $3.14 in afternoon trade. The US asset manager, which owns most of one of Yellow's term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-trapped trucking company, Reuters reported.
Yellow, formerly called YRC Worldwide, is the third-biggest US trucking company. It transports goods from multiple shippers in single trailers and focuses on "less-than-truckload" shipping, the transportation of goods that don't require a full truckload.
CoreWeave raises $2.3bn in debt collateralized by Nvidia chips. (FS)
Specialized cloud provider CoreWeave has raised $2.3bn in a debt facility led by Magnetar Capital and Blackstone and collateralized by Nvidia chips, with the funds to be used to expand to meet rising AI workload. Other lenders in the facility include Coatue and DigitalBridge as well as BlackRock, PIMCO, and Carlyle. The unusual use of Nvidia H100, the sought-after chip that powers AI computing as collateral, highlights the value of such hardware in the capital-intensive AI arms race, Reuters reported.
The outsized loan also marks the growing market in private asset-based financing, as private equity firms turn to lower risk lending secured by hard assets and take on more corporate debt when banks slow down. Nvidia-backed CoreWeave has seen a boost from the generative AI boom thanks to its purpose-built cloud infrastructure at scale.
E-cigarette maker Juul Labs is seeking $1bn in funding.
Juul Labs, the e-cigarette company that almost went bankrupt last year, is seeking to raise about $1bn. Juul is working with Jefferies Financial Group on the fundraising effort. The company had about $800m in revenue in 2022, Bloomberg reported.
In November last year, Juul, which counted Marlboro maker Altria as a former investor, secured funding from some of its early investors to keep it afloat, while cutting about 400 jobs and reducing its operating budget.
EJF Capital raises approximately $167m for second opportunity zone fund. (FS)
EJF Capital, a global alternative asset management firm, today announced the successful closing of its second opportunity zone investment fund, EJF OpZone Fund II with approximately $167m in investor subscriptions and commitments. The fund received support from both new and existing EJF investors including high-net-worth individuals, registered investment advisors, broker dealers, and a leading private bank.
“The successful closing of our second opportunity zone fund reflects the confidence placed in us by our investors, both existing and new, and is a testament to the resiliency of our asset classes, the strength of our investment platform, and the depth of our regulatory-driven focus and financial and real estate expertise. We are grateful for our investors’ strong support as we continue to execute on the significant opportunities ahead and pursue consistent performance across our portfolio throughout market cycles,” Neal Wilson, EJF Co-CEO.
RB Global replaces CEO Fandozzi amid compensation dispute. (People)
RB Global, formerly known as Ritchie Bros. Auctioneers, is appointing a new chief executive officer to replace Ann Fandozzi following a dispute over issues including compensation. Jim Kessler, RB Global's chief operating officer and president, will take over as CEO and join the board of the industrial equipment auctioneer, Bloomberg reported.
The company gave a second-quarter earnings preview, reporting that revenue jumped 128% to $1.1bn and net income climbed 63% to $87m. Service revenue surged 181% and inventory sales revenue rose 52%. Investors, however, focused on the management turmoil, sending RB Global shares on the New York Stock Exchange down 10% to $58.72 in afternoon trading and assigning the company a market value of $10.6bn.
EMEA
Consilio, a legal technology solutions and enterprise legal services provider, agreed to acquire Lawyers On Demand, a flexible legal talent company, and SYKE, a legal technology consultancy, from Bowmark Capital, a private equity firm. Financial terms were not disclosed.
"The Flexible Talent market remains fragmented and we continue to explore opportunities to create impactful solutions for legal teams as they face an unprecedented amount of talent concerns, as a result of historically high attrition rates, budgetary freezes, and legal industry salary increases out of reach for many corporations. This acquisition brings LOD's and SYKE's deep expertise in flexible legal talent and legal technology consulting onboard while unlocking greater scale and capabilities for our clients," Andy Macdonald, Consilio Chief Executive Officer.
LOD is advised by Rothschild & Co and Stephenson Harwood. Consilio is advised by Alvarez & Marsal, William Blair & Co, Jones Day (led by Vica Irani) and Prosek Partners (led by Gabrielle Simon).
Chequers Capital, a private equity firm, completed the acquisition of a majority stake in Altea Federation, a company that provides business transformation, disruptive innovation, management consulting, and asset management services. Financial terms were not disclosed.
"I am very happy and determined to take on the role of Chairman and CEO at the helm of this new and exciting project together with Chequers Capital. This opens the fourth decade of Altea Federation, with the ambitious growth plan that will allow us to evolve and express always the highest value for our Clients, while maintaining unchanged, and indeed expressing to its maximum potential, the unique culture of Altea Federation, inspired by the constant study and application of the most advanced and visionary technology innovation theories to the evolution of business organizational models," Andrea Ruscica, Altea Founder.
Altea Federation was advised by Mediobanca.
Tom Brady, an NFL legend who is universally recognised among the greatest players in league history, agreed to acquire a minority stake in Birmingham City Football Club from Knighthead Capital, a New York-based registered investment adviser. Financial terms were not disclosed.
"Birmingham City is an iconic club with so much history and passion and to be part of the Blues is a real honour for me. BCFC is built on teamwork and determination and I'm excited to work alongside the board, management and players to make our Second City club second to none. I've been part of some amazing teams in my day, and I'm looking forward to applying my perspective to create that same success here in Birmingham," Tom Brady.
Societe Generale CEO Krupa hints he may shrink some businesses in revamp.
Societe Generale Chief Executive Officer Slawomir Krupa signaled that he is likely to shrink or even dispose of some activities as part of a strategic overhaul he's slated to present next month. All of SocGen's business lines must "make sense from the perspective of long-term value creation". "Meeting a cost of equity in a sustainable way is a basic requirement that our business activities within our portfolio will have to deliver on."
He didn't identify any businesses that don't meet that standard. The analyst asking the question highlighted SocGen's presence in Africa and Romania. The comments from Krupa, who took over in late May, provide more details about a revamp that he's scheduled to present on September 18. He has previously said he wants to improve the allocation of capital while Chairman Lorenzo Bini Smaghi has made clear he wants Krupa to lift a stock price that's been the worst performer among the large French banks since the financial crisis, Bloomberg reported.
Barclays gets Warburg Pincus, Centerbridge bids for German consumer finance unit. (FS)
Barclays has received non-binding offers from private equity firms, including Warburg Pincus and Centerbridge, to buy its German consumer finance subsidiary. Bidders are waiting to be informed on whether they are through to the second phase of bidding for the unit, formally called Barclaycard Germany, which has a price tag of around $547m, Reuters reported.
Pollen Street and several banks based in Germany and elsewhere in Europe showed interest in a bid ahead of the initial deadline on July 21 though it remains unclear if they are still in the running.
Chelsea FC looking to raise capital after tough season. (FS)
Chelsea FC has approached investors about raising capital for the London-based club. Any new financial investor could inject money in return for a stake in the English Premier League club. The club could raise as much as $500m, Bloomberg reported.
No final decision has been made, and it's unclear how much capital Chelsea may end up raising in the end, or whether any investment would be a combination of debt and equity. Any new investment would shore up what has been a difficult start to life in the Premier League for Chelsea's new owners, who took control of the club in May 2022. Clearlake Capital, the majority owner of the club, along with American investor Todd Boehly, spent over $759m on new players for Chelsea last season, and have recently taken the first step in their multi-club strategy, buying the French team RC Strasbourg.
APAC
Adani-backed Ambuja Cement, a cement producing company, agreed to acquire a 56.74% stake in Sanghi Industries, a cement manufacturer, for $343m.
“This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey. By joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. With this acquisition, the Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time. With SIL’s limestone reserves of a billion tonnes, ACL will increase cement capacity at Sanghipuram to 15 MTPA in the next two years. ACL will also invest in expanding the captive port at Sanghipuram to handle larger vessels. Our aim is to make SIL lowest cost producer of Clinker in the country,” Gautam Adani, Adani Group Chairman.
India's GAIL close to finalising Qatar LNG purchase deal.
GAIL is close to finalising a long-term liquefied natural gas import deal with Qatar to buy at least 1m metric tons per year, potentially for more than 20 years. The deal would be part of GAIL's plans to lock in new supply contracts by 2030 to diversify its gas imports and hedge against supply disruptions like those seen after Russia's invasion of Ukraine last year, when LNG prices surged to a record high.
GAIL had to cut gas sales to some local industries last year after supplies under its long-term deal with the German unit of Russia's Gazprom were hit when it was taken over by Berlin, which diverted volumes to its own market, Reuters reported.
Temasek to invest $145m in M&M's EV unit for up to 3% stake. (FS)
Mahindra & Mahindra said Singaporean state investor Temasek will invest up to $145m in its EV business at a valuation of $9.8bn. Temasek will take a 1.49% to 2.97% stake in Mahindra Electric Automobile, the four-wheeler passenger electric vehicles company. Temasek will join British International Investments as an investor in MEAL, DeelStreetAsia reported.
With this investment, Mahindra's EV subsidiary's valuation goes up by 15%. Temasek's investment in the firm comes as the investor is set to more than double its India investments to $9-10bn over the next three years.
"By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20% to 30% of Mahindra SUV sales from electric vehicles by 2030," Rajesh Jejurikar, Mahindra & Mahindra CEO.
China's IPO market seen cooling as Beijing targets liquidity.
China's domestic market for initial public offerings, the world's busiest since last year, is showing signs of cooling as Beijing seeks to slow offerings to boost liquidity. Only one listing application was filed in July compared with three for the same month last year, Bloomberg reported.
While typically a quiet month for such applications, the slowdown follows a recent meeting by China securities regulator which pledged to maintain equilibrium in IPO and refinancing activities.
UCK Partners said to have raised $768m for Fund III. (FS)
South Korean private equity firm UCK Partners has reportedly amassed about $768m for its third fund across two incremental closes. The most recent close came at the end of July. The capital raised so far has surpassed the firm's reported target of up to $694m, DeelStreetAsia reported.
UCK Partners was formerly the South Korea investment division of Japan-based mid-cap manager Unison Capital. The firm invests across the healthcare, consumer and B2B service sectors.
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