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AMERICAS
US antitrust regulators will bar Hess CEO John Hess from taking a board seat as a condition of its go-ahead of oil producer Chevron's $53bn purchase of Hess, Reuters reported.
The Federal Trade Commission's consent for the deal will not allow Hess to become a board member, without explaining why the ban was imposed. Chevron's proposed all-stock acquisition of Hess, first announced in October, was one of a string of multi-billion-dollar US oil and gas industry deals that began with Exxon Mobil's purchase of Pioneer.
Amentum, a government and commercial services contractor, completed the merger with critical mission solutions and cyber and intelligence businesses of Jacobs, a technical professional services firm. Financial terms were not disclosed.
"The completion of this transformational combination creates a global leader that advances the future, with the trusted track record of superior performance, outstanding engineering expertise, and leading-edge technologies required to meet our customers' most significant challenges. After a century of success delivering trusted solutions to our customers, Amentum enters the public markets well-positioned for long-term growth, with a healthy financial profile, strong balance sheet, and robust cash generation. This is a milestone day for our business, and our employees are excited about the future and to continue our success delivering value for all our stakeholders as a public company," John Heller, Amentum CEO.
Title Resources Group, an insurance underwriter, completed the acquisition of Doma, a real estate technology company, from Hudson Structured Capital, an asset manager, for $85m.
"We are excited to begin the next chapter of TRG's proud history. We look forward to getting to work bringing these two companies together, and providing our collective customers with excellent underwriting services," Scott McCall, TRG President and CEO.
Elliott-backed Amber Energy, a group of strategic US energy investors, agreed to acquire CITGO Petroleum, a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Financial terms were not disclosed.
"We thank the Special Master for selecting Amber Energy as the successful bidder and recommending that the court approve Amber Energy's acquisition of CITGO's world-class assets. Building upon CITGO's legacy, and with a focus on the future, we will prioritize operational excellence to lay a foundation for stability, strength, and long-term success for the benefit of the Company's people, customers, and communities. We look forward to partnering with the people of CITGO to ensure that the Company continues to operate with the highest standards of safety and reliability," Gregory Goff, Amber Energy CEO.
Amber Energy is advised by Barclays, Citigroup, Perella Weinberg Partners, Akin Gump Strauss Hauer & Feld, Latham & Watkins and Prosek Partners (led by Brian Schaffer and Aiden Woglom).
TPG Growth, the middle market and growth equity platform of TPG, completed the investment in Homrich Berg, a national independent wealth management firm. Financial terms were not disclosed.
"Homrich Berg has seen strong organic and inorganic growth over the last several years as it has expanded in the Southeast. The Firm's unwavering commitment to client service and a fee-only fiduciary approach is a proven formula for success and we look forward to supporting HB's vision for enhancing their capabilities and serving even more clients. We have been impressed by Thomas and his team and are proud to partner with them and the team at New Mountain to build on HB's momentum," Jenny Tu, TPG Growth Principal.
Homrich Berg was advised by William Blair & Co, Alston & Bird and Gregory FCA. TPG Growth was advised by Debevoise & Plimpton. New Mountain was advised by Ropes & Gray and H/Advisors Abernathy.
Danone, a French multinational food-products corporation, agreed to acquire Lifeway Foods, a kefir and fermented probiotic products supplier, for $283m.
"In recognizing the solid performance of the company over the last few years, we believe Lifeway has an attractive opportunity to achieve its full potential through a combination with Danone, removing the constraints and additional resources required for a publicly listed company of Lifeway’s size. We are confident that Danone’s operations and dedicated resources would unlock significant opportunities and value for Lifeway, notably by providing further innovation, distribution and marketing support," Danone.
Lifeway Foods is advised by Longacre Square Partners (led by Joe Germani). Danone is advised by JP Morgan, KPMG, Vedder Price and Wachtell Lipton Rosen & Katz.
Devon Energy, an independent energy company that is involved primarily in oil and gas exploration, completed the acquisition of the Williston Basin business of Grayson Mill Energy, a Houston-based energy exploration and production company, for $5bn.
“We are excited to announce the completion of our acquisition of Grayson Mill Energy. This strategic transaction is an excellent fit for Devon, enabling us to efficiently expand our operating scale and production. I would like to thank the teams working together for their hard work and look forward to the successful integration,” Rick Muncrief, Devon Energy President and CEO.
Ares Management, a global alternative investment manager, agreed to acquire Walton Street Mexico, a real estate asset management platform focused primarily on the industrial sector, from Walton Street Capital, a private real estate investment firm. Financial terms were not disclosed.
"We are excited to announce this transaction and believe that the Walton Street Mexico team will bring great insights to Ares as we continue to grow our leading global industrial real estate platform. We believe that Federico and the team are aligned with our values and will provide a distinctive edge to the Ares Real Estate team. We are seeing a meaningful shift in supply chain dynamics globally with Mexico emerging as an attractive location for skilled manufacturing and we believe that these trends will continue to increase demand for warehouse space in the country," Michael Arougheti, Ares CEO and President.
PRIO, a fuel and renewable energy services provider, agreed to acquire a 40% stake in Peregrino and Pitangola Fields from SPEP Energy and Sinochem, a Chinese state-owned multinational conglomerate, for $1.91bn.
"After the acquisition's conclusion, the company's production will increase by approximately 35 thousand barrels per day. Additionally, PRIO sees synergies in marketing the Field’s oil, as each offtake from Peregrino of approximately 650 thousand barrels can be combined with cargo loads from other fields operated by the company to optimize logistics," PRIO.
PRIO is advised by Bank of America and Tauil & Chequer Advogados. Sinochem is advised by Jefferies & Company.
2A Group, a private investment company, completed the acquisition of Cheaper Than Dirt, an online marketplace company. Financial terms were not disclosed.
"At a time when the 2nd Amendment industry is under siege from lawfare, increasing regulation, and hostile political adversaries, we are a staunch defender of and the safe home to brands in the industry. Jake and his team wake up every day looking for new ways to serve their customers and I am excited to see them prove themselves yet again with old and new customers of CheaperThanDirt.com," Jordan Mollenhour, 2A Group Owner.
Cheaper Than Dirt was advised by Houlihan Lokey.
Lennar, a homebuilder, completed the acquisition of a minority stake in Title Resources Group, a title insurance underwriter. Financial terms were not disclosed.
"We are pleased about our partnership with TRG. This strategic investment highlights our dedication to fostering innovation across the homebuilding and homebuying process and enhancing value for all stakeholders involved," Eric Feder, Lennar President.
TPG in lead to buy stake in Creative Planning at $15bn valuation. (FS)
Buyout firm TPG has emerged as the frontrunner to pick up a minority stake worth $2bn in Creative Planning, in a deal that could value the wealth management firm at more than $15bn, Reuters reported.
Apple drops out of talks to join OpenAI investment round.
Apple has left negotiations to participate in an OpenAI funding round expected to raise about $6.5bn, Reuters reported.
The tech giant recently fell out of the talks for the round, set to close next week.
Sugar giant Cosan mulls selling Vale stake on leverage woes.
Billionaire Rubens Ometto’s conglomerate Cosan is mulling a sale of assets including its $2.2bn stake in mining giant Vale, potentially unwinding a soured bet to pay down debt, Bloomberg reported.
Cosan has told investors that all options are on the table to improve its balance sheet, including selling part or all of its 4.1% interest in the iron ore producer. The company has also weighed the sale of an Argentine gasoline distributor it owns in a joint venture with Shell.
Shale producer Validus to buy Citizen Energy in deal worth over $2bn.
Privately held oil and gas producer Validus Energy has struck a deal to buy rival Citizen Energy for more than $2bn, including debt, Reuters reported
A record consolidation wave has been sweeping through the US shale industry. A post-COVID surge in oil prices flooded the sector with cash, and buyers have been seeking to lock up the best drilling sites.
Morgan Stanley's private equity arm explores sale of HVAC firm Sila.
Morgan Stanley's middle-market buyout arm is exploring a sale of Sila Services that could value the residential services company at about $1.5bn, Reuters reported.
King Of Prussia, Pennsylvania-based Sila, which is a provider of services including heating, air-conditioning, and plumbing, is working with investment bank William Blair on the sale process.
Blue Hill Advisors announces increased cash offer for Territorial Bancorp.
Blue Hill Advisors and former Hawaii banking executive Allan Landon announced an increased cash offer for Territorial Bancorp from $12.00 per share to $12.50 per share. The increased offer represents a 27% premium over Territorial's proposed takeover by Hope Bancorp based on Hope's closing stock price on the Nasdaq on September 25.
"This increase makes our offer even more attractive," Allan Landon. "Shareholders recognize the superiority of our offer and want Territorial to engage with us," Jason Blumberg, Blue Hill Managing Member.
Thoma Bravo hunting for potential Latin American software deals. (FS)
Technology-focused buyout firm Thoma Bravo has identified three or four companies in Latin America as potential targets in the region, Bloomberg reported.
The Chicago-based group known for its big bets on enterprise software is focusing its scouting efforts in Mexico and Brazil, the region’s two biggest economies, although no deal is imminent.
Ryan Reynolds’ MNTN is said to tap Morgan Stanley for 2025 IPO.
MNTN, a connected TV advertising platform that counts Hollywood star Ryan Reynolds as its chief creative officer, has picked Morgan Stanley to work on an initial public offering, Bloomberg reported.
The firm is considering going public as soon as in early 2025.
Fintech company Chime taps Morgan Stanley to handle IPO in 2025.
Chime Financial, a financial technology business focused on fee-free services, has tapped Morgan Stanley to lead its initial public offering, Bloomberg reported.
The company is aiming to go public in 2025. Still, the plans could change.
EMEA
Global Auto, a diversified auto retailer, agreed to acquire K.W. Bruun Import and K.W. Bruun NxT, two automotive distributors in the Nordics with operations focused across Denmark and Sweden.
"The acquisition represents a clear strategic fit for GAHL and is highly complimentary based on GAHL's stated strategic objectives of driving operational excellence, pursuing diversification across multiple dimensions and allocating capital with a focus on strong free cash flow while maintaining a strong balance sheet and credit metrics. KWB's business is asset lite, highly free cash flow generative and expands our business into an attractive component of the auto retail value chain while creating a better diversified, higher margin and enhanced free cash flow generative combined business. Following the successful completion of the Lookers acquisition along with a dedicated UK leadership team driving solid operational results within that platform, we believe the timing is right to pursue this highly accretive and attractive acquisition," GAHL.
Kitwave Group, an independent wholesale business, completed the acquisition of Creed Catering Supplies, a food wholesaler, for £70m ($94m).
“Strategically, Creed will significantly expand our geographical presence, bridging our operations in the North and South and creating a fully integrated national delivery network. In line with our buy and build strategy, Creed is also expected to significantly enhance the Group’s earnings along with providing material buying, operational and financial synergies," Ben Maxted, Kitwave Group CEO.
UK real estate portal Rightmove will consider a sweetened £6.2bn ($8.29bn) takeover bid from Rupert Murdoch-owned Australian firm REA Group, after rejecting three previous bids, Reuters reported.
The new proposal from REA, a property listing firm, comprises an offer price of 775 pence per share, a 17% premium to Rightmove's closing price on Thursday. The company has also offered an additional special dividend of 6 pence per share.
Rightmove is advised by Morgan Stanley. REA Group is advised by Deutsche Bank (led by Gavin Deane) and Brunswick Group (led by Simon Sporborg).
Graco, an industrial company specializing in the development and manufacturing of fluid-handling systems and products, agreed to acquire Corob, a tinting solutions provider across diverse industries, from Ardian, a private investment house, for €260m ($290m).
"The addition of Corob to our portfolio builds on our strong global position in the growing paint and coating machinery manufacturing category within our Contractor segment. This acquisition advances our key strategies of global growth and expanding into new and adjacent markets. Like Graco, Corob has a demonstrated track record of achieving consistent growth in markets around the world through innovation as well as quality and service, and we look forward to collaborating for continued success," Mark Sheahan, Graco President and CEO.
Ardian is advised by Headland Consultancy.
UK's LTG set to recommend a $1.06bn takeover bid from General Atlantic. (FS)
London-based Learning Technologies Group is set to agree to a £792m ($1.06bn) takeover bid by US private equity firm General Atlantic if a formal offer is made, Reuters reported.
Shares of LTG, which listed in 2013 closed 28.2% higher at 96 pence. LTG, which provides corporate training tools including mobile apps and training videos, said its board was inclined to recommend the proposed offer of 100 pence per LTG share if General Atlantic makes a firm offer on those financial terms.
Saudi giga-project Diriyah agrees deals worth $1bn with European firms. (FS)
Diriyah, one of Saudi Arabia's so-called giga-projects, has agreed deals worth nearly $1bn with European firms and is in talks to attract more foreign capital, Reuters reported.
The $63bn project is one of the Public Investment Fund's giant construction efforts aimed at boosting economic growth and diversifying the oil-reliant kingdom's economy.
Aster’s gulf unit eyes $250m health-care deals for Saudi expansion.
Aster DM Healthcare’s newly-hived off Gulf entity is considering acquiring assets worth as much as $250m in a bid to expand its footprint in Saudi Arabia, Bloomberg reported.
The deals are likely to be for medical centers and hospitals and completed in the next three to five years, said Alisha Moopen, managing director and group chief executive officer of Aster’s Gulf Cooperation Council unit.
Mauritius Luxury Hotelier Seeks Deals in North Africa and Mideast.
Lux Island Resorts, Mauritius’ biggest hotel operator by market value, is looking to buy five-star resorts in North Africa and the Middle East in a bid to broaden its portfolio beyond Indian Ocean island nations, Bloomberg reported.
“The rationale is to diversify from the current markets of Mauritius, Maldives and Reunion Island. The objective in the medium term is to add two to three hotels,” Desire Elliah, Lux Island Resorts CEO.
APAC
Haleon, a British multinational consumer healthcare company, agreed to acquire an additional 33% stake in Tianjin TSKF Pharmaceutical, a pharmaceutical company, for $636m.
"China is a key strategic market for Haleon. Over the last three years, it has delivered strong market share growth and our acquisition of a further 33% in our JV partnership is an important milestone which is both strategically and commercially compelling. It reflects our commitment to this important market, the exceptional growth potential we see in China and is fully consistent with our capital allocation priorities to drive attractive returns for shareholders and maintain a strong investment grade balance sheet," Brian McNamara, Haleon CEO.
Haleon is advised by UBS.
Authum Investment & Infrastructure, non-banking finance company, agreed to acquire a 47% stake in Pratap Snacks, a snack food company, for $102m.
"The acquirer and PAC have entered into a share purchase agreement dated September 26, 2024, with the sellers, pursuant to which the acquirer has agreed to acquire from the sellers 1.02 crore equity shares of the target company for $8.9 per equity share for an aggregate consideration of $102m," Authum.
India's Reliance Power considering stake sale to raise funds.
India's Reliance Power said on Friday it will consider raising funds, including an option of stake sale to institutional investors as the Anil Ambani-run company looks to expand its business, Reuters reported.
The electric utility company said it is would consider multiple options including equity sale and foreign currency convertible bonds among other options at its board meeeting on October 3.
Alibaba-owned hypermarket chain Sun Art said to draw PE interest. (FS)
Alibaba Group’s majority stake in Chinese hypermarket chain Sun Art Retail Group is attracting preliminary interest from private equity firms, Bloomberg reported.
Potential suitors including DCP Capital and Hillhouse Investment have been considering buying part or all of the Chinese technology company’s roughly 79% holding in Sun Art. Shares of Sun Art have climbed 28% this year, giving the company a market value of about $2.2bn.
Medco is said in talks to buy controlling stake in Senoko.
PT Medco Energi Internasional is in exclusive talks to buy a controlling stake in Senoko Energy, in a deal that could value the Singapore-based power firm at as much as $1bn, Bloomberg reported.
The exclusivity arrangement for talks over a 70% stake in Senoko will expire at the end of the month. Deliberations are ongoing and there is no certainty that Jakarta-based energy producer Medco will proceed with any deal.
UBS in talks on Indian minority-owned wealth joint venture.
UBS is in talks to form an Indian wealth management joint venture with Mumbai-based 360 One WAM, Reuters reported.
The joint venture would help the Swiss bank to expand its Indian wealth business to 'high net worth individuals' from its existing focus on 'ultra high net worth individuals'.
SoftBank-backed Swiggy files for initial share sale in India.
Indian food-delivery platform Swiggy filed documents for an initial public offering in a share sale that is expected to be one of the nation’s biggest this year, Bloomberg reported.
Swiggy plans to sell $448m of new shares, while its shareholders including funds affiliated to Naspers and Norwest Venture Partners will sell as many as 185.3m shares. SoftBank Group is among the key backers of the firm.
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