EMEA
UK’s competition watchdog said it was considering assessing Visa’s planned takeover of payments firm Earthport to see if the deal would result in less competition.
In February, Visa trumped Mastercard's bid with a sweetened offer of about £247m ($325m), prompting Earthport to recommend shareholders to accept the Visa offer. UK’s Competition and Markets Authority invited comments from parties on the deal until April 18.
Earthport is advised by N+1 Singer, Rothschild & Co, Bird & Bird, and Newgate Communications. Mastercard is advised by Bank of America Merrill Lynch and Clifford Chance. Visa is advised by Goldman Sachs, Ashurst, Freshfields Bruckhaus Deringer.
Moller-Maersk spun off its oil and gas drilling unit and listed it separately on the Copenhagen stock exchange, where it was traded slightly below the book value it had in Maersk’s accounts. Shares in the new company, called The Drilling Company of 1972, traded at 555 Danish crowns ($83.5) per share, valuing the company in 24bn Danish crowns($3.6bn).
The demerger is a part of the Danish shipping group’s 2016 plan to refocus its efforts into transport and logistics, a project that has also led to the divestment of its oil exploration and production business to France’s Total in 2017.
Maersk’s existing shareholders had been given shares in the drilling company under the demerger arrangement.
Maersk is advised by Bank of America Merrill Lynch, BNP Paribas, Danske Bank, Davis Polk & Wardwell, Gorrissen Federspiel, and Plesner.
Andera Partners invested €100m in HR Path, an innovative French technology company covering the entire field of human resources.
This investment will fuel HR Path’s rapid expansion into international markets and strengthen its status as a key player in the HR field.
"Reactivity, agility, adaptability: we often hear these words, but with HR Path, we wanted to give them concrete meaning, without setting limits. Because this adventure is also proof that French entrepreneurship knows how to be dynamic and conquering, creating jobs and able to shine internationally,” François Boulet and Cyril Courtin, HR Path founding partners.
Axcel, which has acquired the majority of shares of one of the Europes leading sperm banks, European Sperm Bank. Financial terms were not disclosed.
The partnership is built on a life-affirming vision and an ambitious plan to give even more Danish and foreign women and couples the possibility to have children. They plan is to expand even further by developing the existing business, expanding to new markets and expand the bank’s services.
“We had a healthy development where we most importantly had a part in creating a lot of happiness among women and couples, who around the world needed our help to have children. In the new partnership with Axcel, we will not only continue our good deeds but together we want to boost development, innovation and expansion, which we are now looking forward to." Annemette Arndal-Lauritzen, European Sperm Bank CEO.
UniCredit will consider Commerzbank bid should discussions with Deutsche Bank fail.
Deutsche Bank came under increased pressure to move forward on a tie-up with Commerzbank after Italy’s UniCredit was named as a potential alternative bidder for the German lender.
UniCredit could explore a merger with Commerzbank if talks with Deutsche fall through, Reuters reported. UniCredit would not crash the negotiations on a tie-up between Germany’s two largest banks and UniCredit’s focus, for now, was on its turnaround plan. UniCredit’s interest may now spur an acceleration.
GrainCorp is considering a split of its grain and malting businesses.
Australian takeover target GrainCorp plans to separate in two, spinning off and listing its global malting unit and restructuring its grain business, whose earnings have been hit by drought.
The split would let the two companies pursue “independent operating strategies and capital structures, and allow them to attract investors with different investment priorities,” GrainCorp Chief Executive Mark Palmquist said in a statement.
Ireland's largest media group INM receives a takeover offer.
Ireland’s largest newspaper group, Independent News & Media that it had received an approach concerning a possible offer for the company.
INM, which owns Ireland’s highest selling daily and Sunday newspapers, said discussions were at a preliminary stage and advised shareholders not to take any action as there was no certainty that any offer will be made or what the terms may be.
The group’s shares rose 23% to €0.09 after the statement. The Irish Times reported earlier that INM Chief Executive Officer, Michael Doorly, raised the prospect of a sale in meetings with the Dublin investment community this week. INM noted the recent press speculation in its statement.
First Abu Dhabi Bank - Abu Dhabi Islamic Bank denied merger talks.
Abu Dhabi Islamic Bank and First Abu Dhabi Bank denied they were in merger talks after a news report said the emirate was considering combining them.
Citing unnamed sources, Bloomberg reported that Abu Dhabi was considering merging the two lenders to create the Gulf region’s largest lender. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, in a bourse filing, said it “strongly denies the report issued by Bloomberg on the potential merger”.
“FAB currently has not entered discussions with ADIB to pursue any merger activity,” it said. ADIB, in a separate bourse filing, said the news report was not correct and that the bank is “currently not studying for any merger or acquisition”.
ICG considers buying Italy's Doc Generici for $1.2bn from CVC.
British buyout firm Intermediate Capital Group is nearing a deal to buy Italian generic drugmaker Doc Generici from CVC Capital Partners for about €1.1bn ($1.2bn), Bloomberg reported.
CVC bought Doc Generici in 2016 from buyout firm Charterhouse Capital Partners for an undisclosed amount. Founded in 1996, Milan-based Doc Generici counts a wide portfolio of generic drugs in areas such as cardiovascular and gastrointestinal and metabolic conditions.
Blackstone and Scius acquired office in Stockholm for SEK2bn from AFA. (FS, RE)
Blackstone and Scius Partners acquire a 34k m2 office property on Södermalm in Stockholm from AFA.
We remain convinced of Stockholm's strength as one of Europe's key markets, and are therefore very pleased to make this further acquisition in Stockholm for our investors," James Seppala, Blackstone Senior Managing Director.
AFA was advised by L&L Law Firm. Scius and Blackstone were advised by Roschier and PwC.
AMERICAS
Harris and L3 shareholders voted to approve all shareholder proposals necessary to complete the merger of equals transaction to create L3 Harris Technologies, a global defense technology leader that will be focused on developing differentiated and mission-critical solutions for customers around the world.
“I am pleased that our shareholders voted in favor of this strategic combination, which will create a premier global defense technology company. Today’s vote clearly supports our view that this merger will unlock additional growth opportunities and generate value for our customers, employees, and shareholders.” William M. Brown, Harris chairman, president, and chief executive officer.
L3 Technologies is advised by Goldman Sachs, Simpson Thacher & Bartlett. Harris Corporation is advised by Sullivan & Cromwell, Morgan Stanley, Davis Polk & Wardwell, and Paul Weiss Rifkind Wharton & Garrison.
SJW Group and Connecticut Water Service announced that they have jointly filed a new application with the Connecticut Public Utilities Regulatory Authority for approval of the $1.1bn merger of SJW Group and Connecticut Water.
The new application offers a comprehensive set of commitments and additional supporting evidence that the companies believe are responsive to PURA’s previous concerns, demonstrate that their combination is in the public interest and show that the combination will deliver immediate, quantifiable and significant benefits to all of Connecticut Water’s stakeholders.
“As a leading water utility, the combined company will have the financial strength, scale, resources and sharing of best practices to ensure families and communities will continue to have safe and reliable water service across all of our operations and that we deliver the significant benefits of the transaction to our constituents in our local service areas in California, Connecticut, Maine and Texas,” Eric Thornburg, SJW Group Chairman, President, and Chief Executive Officer.
Connecticut Water is advised by Wells Fargo Securities, Murtha Cullina, and Sullivan & Cromwell. SJW Group is advised by JP Morgan, Brown Rudnick, Simpson Thacher & Bartlett, Skadden Arps Slate Meagher & Flom, and West Group Law.
E. & J. Gallo Winery has entered into an agreement with Constellation Brands to purchase more than 30 wine and spirits brands, along with six winemaking facilities located in California, Washington, and New York for $1.7bn.
In early February, the brewer said it was looking to sell some of its low-end wine brands, as it doubles down on more profitable high-end segment and shift towards beer and cannabis products that target a younger demographic.
“One of the hallmarks of our success over the years has been our ability to evolve and stay on the forefront of emerging consumer trends. This decision will help enhance organizational focus on a more premium set of wine and spirits brands that better position our company to drive accelerated growth and shareholder value. In turn, Gallo is acquiring a collection of great brands that complement their operational model and business strategy to provide quality products to consumers at every price point.” Bill Newlands, Constellation Brands President, and CEO.
Constellation Brands is advised by Bank of America Merrill Lynch and Goldman Sachs.
The NBASE-T Alliance, an industry-wide cooperative effort focused on enabling the development and deployment of products that support 2.5GBASE-T and 5GBASE-T Ethernet, and the Ethernet Alliance, a global consortium dedicated to the continued success and advancement of Ethernet technologies, have signed an agreement to consolidate activities under the Ethernet Alliance. Financial terms were not disclosed.
“Ethernet has become the world’s most popular networking technology, and the Ethernet Alliance has been busy fulfilling its mission of advancing and promoting the family of IEEE 802™ standards that will carry Ethernet forward today, tomorrow, and into the future. As the Ethernet roadmap expands, NBASE-T technologies focused on 2.5GBASE-T and 5GBASE-T have become an integral part of the industry ecosystem, and we consider this merger a natural, evolutionary step. The demand for faster, more reliable high-speed connectivity is exploding across many market segments. We can better meet this growing need by combining our resources, membership, and expertise.” Greg McSorley, Ethernet Alliance President.
Cache Creek Industries, partnered with Rockmont Capital Partners to acquire Automated Business Power, a leading designer, and manufacturer of advanced integrated communications systems, uninterruptible power systems and related equipment for the military and other applications. Financial terms were not disclosed.
ABP designs and manufactures advanced, field deployable, integrated power and C4I (Command, Control, Communications, Computers, and Intelligence) systems for a broad range of communication equipment used in the command post, tactical operations center, shelter, vehicle, aircraft, and shipboard applications. ABP sells its products directly to the military as well as to leading defense contractors.
“ABP’s mission-critical products are known throughout the industry as being of the highest quality and reliability. The company’s culture of operational excellence has enabled ABP to meet the most demanding needs of its blue-chip customers for decades,” Dean Douglas, a Partner at Cache Creek who will serve as the new ABP Chairman.
Cache Creek Industries is advised by Calfee, Halter & Griswold. ABP is advised by Eureka Capital Markets and Holzman Horner. Academy Bank and Medallion Capital acted as debt advisors.
Wellspring Capital Management has closed the acquisition of Lucky Strike Entertainment, an operator of upscale entertainment venues with 21 locations in the United States. Financial terms were not disclosed.
Lucky Strike is a leading creator and operator of entertainment venues featuring premium bowling lanes, handcrafted food and spirits, occasional live music performances, a broad assortment of engaging, high-tech games and a one-of-a-kind atmosphere.
“Wellspring has a long history of partnering with founders like Steven Foster and Kevin Troy who have redefined their industries and are poised for incredible growth. Although a nationally known player today, Lucky Strike still has a large whitespace opportunity.” Alex Carles, Wellspring Managing Partner.
Wellspring is advised by McDermott Will & Emery. Lucky Strike is advised by Baird.
CFGI, a national provider of high‐end technical accounting and financial advisory services, has acquired Pine Hill Group, a leading accounting, and transaction advisory firm. Financial terms were not disclosed.
Pine Hill Group provides public, private and private equity clients with integrated capital markets, technical accounting, and financial reporting advice during every stage of the business lifecycle.
“CFGI is building on its position as a national leader for accounting and finance advisory services and aims to be the go‐to partner for every CFO and finance executive nationwide. The addition of Pine Hill Group gains us both a leadership position within the Philadelphia market and the addition of a leading transactions services advisory team,” Shane Caiazzo, CFGI co‐chief executive officer.
Pine Hill is advised by JMP Securities. CFGI is advised by Global PMI Partners.
Arlington Capital Partners, a Washington, DC-based private equity firm, invested in Octo Consulting Group. Financial terms were not disclosed.
Octo has more than 13 years of experience developing mission-critical solutions for the Federal Government across healthcare, national security, civilian and defense agencies. Octo’s specialized solutions for Agile software development, UI/UX, cloud, infrastructure, a blockchain, and other emerging technologies support a wide variety of missions and empower agencies to modernize their aging infrastructures.
“We’ve had the unique privilege of continuing to establish Octo as one of the government market’s pre-eminent growth and next-generation IT brands. Our strategic partnership with Arlington Capital not only establishes and cements the firm’s leadership team, it also provides the core capital needed to invest in human capital and technology to continue our growth." Mehul Sanghani, Octo CEO.
Arthur J. Gallagher acquired of Calgary, Alberta-based Keyser Benefits. Financial terms were not disclosed.
Keyser is a full-service benefits brokerage offering life, disability, health and dental, critical illness, retirement, and other services to small to mid-sized businesses and individuals across Western Canada.
"Like Gallagher, Keyser Benefits is a client-focused, family-oriented business with a strong commitment to ethics. I am excited to welcome Shane and his associates to our growing global team." J. Patrick Gallagher, Gallagher Chairman, President, and CEO.
Custom Ink was recapitalized by Great Hill-led group. (FS)
An investor group led by Great Hill Partners, recapitalize Custom Ink, the leader in custom apparel for groups, companies, and communities, for its next chapter of growth and innovation. Financial terms were not disclosed.
Custom Ink helps people create a sense of belonging and community within their schools, teams, businesses, charities, and other groups through digitally-powered solutions for the design, ordering, production, and delivery of customized apparel and other products.
“Custom Ink helped pioneer online customization and has created the industry’s leading end-to-end digitally-powered platform for customized apparel. This is a terrific brand with outstanding operations in a highly-fragmented category where we see huge growth potential for the company.” Michael Kumin, Great Hill Partners Managing Partner.
Toshiba's LNG business transfer to ENN delayed.
The transfer of Toshiba's US liquefied natural gas (LNG) business to China’s ENN Ecological Holdings has been delayed because a US panel that monitors foreign investments has not yet approved the deal.
Toshiba in November agreed to pay ENN more than $800m to take over its LNG business in the United States as part of a plan to shed money-losing assets.
Approval by the Committee on Foreign Investment in the United States (CFIUS) has been delayed because of the US government shutdown earlier this year, a Toshiba spokesman said.
The committee has blocked or delayed investments from China in the past due to concerns about security or transfers of US technology.
iHeartMedia goes for an IPO to near the bankruptcy exit.
US radio company iHeartMedia filed for an initial public offering with the Securities and Exchange Commission to list its Class ‘A’ ordinary shares, as it nears bankruptcy exit and bets on the podcast to drive growth.
The San Antonio, Texas-based company, went belly up last March as it struggled with debt that was taken on by its private equity owners in 2008 to finance a $17.9bn leveraged buyout of Clear Channel Communications.
iHeartMedia did not disclose the size of share offering or set a price range. It set a placeholder amount of $100m to indicate the size of the IPO and said it expects to use net proceeds from the IPO to pay off its debt.
Last November, it was reportedly in talks with Apple for a stake sale, but soon after the company announced a restructuring plan to emerge from Chapter 11 that included separation from Clear Channel, debt raising, and issuance of new class A and B shares.
At Home to explore the sale.
At Home Group, a US home décor retail chain, is exploring options that include a sale of itself, as the poor performance of its stock has turned it into an acquisition target.
The deliberations come as the Plano, Texas-based company is trying to reinvent its offerings in the face of increasing competition from other brick-and-mortar retailers as well as e-commerce firms.
At Home Group is working with Bank of America to engage with potential buyers, Reuters reported.
HealthQuest Capital to raise $440m.
HealthQuest Capital has closed its third namesake fund on $440m, which the firm will use to invest in growth-stage companies in the healthcare industry.
Founded in 2013, the Bay Area-based investor closed its previous vehicle on $225m in 2016. HealthQuest's recent exits include Avedro and Ajax.
APAC
HIG Capital, a leading global private equity investment firm with over $30bn of equity capital under management, has completed the acquisition of Craig Holdings, a leader in the weight loss industry in North America, Australia, and New Zealand. Financial terms were not disclosed.
Jenny Craig offers personalized science-based meal plans, chef-crafted premium foods, and a dedicated consultant for each client to provide ongoing support and accountability. The Company’s Innovative Rapid Results Program uses Nobel Prize-winning science involving the human body’s circadian rhythm to deliver weight loss and significant health benefits.
"Jenny Craig represents an ideal opportunity to invest in the premier provider of weight loss services, especially with the rising prevalence of overweight adults,” Jeff Zanarini, HIG Managing Director.
Saudi Government's Agriculture buys 200k hectares of farmland in Australia. (RE)
Saudi Agricultural & Livestock Investment bought 200k hectares of farmland in Australia as the company explores global deals to expand its business.
The purchase of Baladjie, which also owns 40k merino sheep, in Western Australia’s wheat belt is the company’s first investment in the country and in sheep production, Salic.
The deal “is an important step for Salic as we continue to build our global footprint in a meaningful way,” Chief Executive Officer Matthew Jansen said, without revealing the value of the transaction.
Berkshire started talks about purchasing gym operator from Quadrant Private Equity. (FS)
Berkshire Partners has approached Quadrant Private Equity about purchasing Fitness and Lifestyle Group in a deal that would value the Australian gym operator at more than A$1bn (about $710m), according to The Australian. Quadrant founded Fitness and Lifestyle Group through its acquisition of Goodlife Health Clubs in 2016.
Indian billionaires to compete for a stake in TV Network. (FS)
Billionaires Mukesh Ambani and Sunil Bharti Mittal are considering competing bids for a stake in a troubled Indian television network, Bloomberg reported, as their telecom carriers race for content in the world’s second-biggest mobile market.
Mittal’s Bharti Airtel has started due diligence of Zee Entertainment Enterprises and is expected to make a formal proposal soon. Ambani’s Reliance Jio Infocomm is also considering a bid. Deliberations are preliminary and may not lead to a transaction.
Australian pension funds to create $78bn giant.
Two of Australia’s biggest pension funds are exploring a merger that would create a retirement-savings giant with more than A$110bn ($78bn) in assets under management.
First State Super and VicSuper Pty signed a non-binding memorandum of understanding and believe a merger could “deliver significant benefits to members,” according to a statement Thursday. A recommendation to the pair’s respective boards is expected around the middle of the year.
NIIF and Roadis to jointly invest in $2bn in Indian road projects.
Infrastructure investment company Roadis and the National Investment and Infrastructure Fund (NIIF) have announced the creation of a platform that will invest in road projects in India.
The platform will invest up to $2bn of equity to target toll-operate-transfer models, acquisition of existing road concessions and investment opportunities in the road sector with the aim of creating a large roads platform in the country, the companies said in a press release.
With 710 km of highways under ownership and management, Roadis is a wholly owned subsidiary of the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension funds. NIIF is a fund manager that invests in infrastructure and related sectors in India, anchored by the government of India.
Soy sauce Honworld to look for buyers.
Shareholders of Honworld Group are exploring a sale of the Chinese soy sauce maker, which sells products under the “Lao Heng He” brand, DealStreet Asia reported.
Owners are working with an adviser on a possible sale of more than 49% of the Hong Kong-listed firm. The adviser reached out to potential buyers including China’s Foshan Haitian Flavouring & Food and Hong Kong’s Lee Kum Kee.
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