AMERICAS
The Federal Trade Commission sued to unwind Altria’s $12.8bn investment into Juul, alleging the tobacco giant bought the stake to unlawfully eliminate competition in the sale of e-cigarettes, FT reported. The claims are the latest blow to a troubled deal first struck in 2018 when Altria acquired a 35% stake in Juul, a start-up whose vaping products dominated the US market.
“For several years, Altria and Juul were competitors in the market for closed-system e-cigarettes. By the end of 2018, Altria orchestrated its exit from the e-cigarette market and became Juul’s largest investor,” Ian Conner, FTC bureau of competition Director.
Juul was advised by Goldman Sachs, Cleary Gottlieb Steen & Hamilton, Pillsbury Winthrop Shaw Pittman, Skadden Arps Slate Meagher & Flom, Sard Verbinnen & Co, and Tulchan Communications. Altira Group was advised by JP Morgan, Perella Weinberg Partners, Hunton Andrews Kurth, Wachtell Lipton Rosen & Katz, Simpson Thacher & Bartlett, and Abernathy MacGregor Group. Debt financing was provided by JP Morgan.
SoftBank Group terminated the $3bn tender offer for additional WeWork shares agreed last year with shareholders, drawing threats of legal action and plunging the floundering office space company further into crisis, Reuters reported.
The tech investment giant said in statement that given its duty to its shareholders it could no longer proceed with the deal, citing criminal and civil probes into the startup, WeWork’s failure to restructure a joint venture in China and the impact of the coronavirus pandemic.
A special committee of WeWork’s board said it was disappointed and is considering “all of its legal options, including litigation”.
Wework was advised by Perella Weinberg Partners, Paul Weiss Rifkind Wharton & Garrison, Skadden Arps Slate Meagher & Flom, Wilson Sonsini Goodrich & Rosati and Joele Frank. Softbank Vision Fund was advised by Houlihan Lokey and Lazard. Softbank Group was advised by The Raine Group, Morrison & Foerster, Weil Gotshal and Manges and Sard Verbinnen & Co.
UCB, which researches and manufactures biopharmaceutical products, completed the acquisition of Ra Pharmaceuticals, a clinical-stage biopharmaceutical company, for $2.1bn.
"In the last 15 months, we made several significant steps on UCB's strategic growth path, namely the "Accelerate and Expand" phase. This acquisition is a key part of this progress and an excellent strategic fit with UCB's strategy. Ra Pharma builds upon our collective strengths and talents and adds to our strong internal growth opportunities. Zilucoplan gives us the opportunity to become a leader in treating people living with myasthenia gravis, an auto-antibody mediated neurological orphan disease with high unmet medical need. The acquisition also strengthens our neurology and immunology franchises with late and early-stage pipeline projects and adds a highly productive technology platform to our innovation engine," Jean-Christophe Tellier, UCB CEO.
Ra Pharma was advised by Centerview Partners, Latham & Watkins, and Argot Partners. UCB advised by Bank of America Merrill Lynch, Lazard, and Covington & Burling. Lazard was advised by Sullivan & Cromwel
Bazalt-backed Black Bear Transmission completed the acquisition of Ozark Gas Transmission, an operator of an interstate natural gas pipeline transportation system, and Ozark Gas Gathering, an operator of a 330-mile natural gas gathering system, from Enbridge, a natural gas distribution company. Financial terms were not disclosed.
"This investment expands our asset base of high-quality, demand-driven natural gas pipelines serving utilities and other key end-user customers across the Southeastern United States. We look forward to working with the Ozark operations team to continue providing safe and reliable service to all of the Ozark customers," Rene Casadaban, Black Bear Transmission CEO.
Basalt Infrastructure Partners was advised by Barclays and Morgan, Lewis & Bockius. Enbridge was advised by TD Securities and Norton Rose Fulbright.
Regions Bank, a bank holding company, completed the acquisition of Ascentium Capital, the largest independent equipment finance lender in the United States, from Warburg Pincus. Financial terms were not disclosed.
"We are pleased to join Regions, a firm known for its commitment to the customer experience and a long history of providing comprehensive banking solutions to companies of all sizes. This combination will enable us to expand our reach and relevance in serving our vendors and small business customers while continuing to provide seamless service," Tom Depping, Ascentium Capital CEO.
Ascentium Capital was advised by Piper Sandler, Cleary Gottlieb Steen & Hamilton and Vinson & Elkins. Regions Bank was advised by Morgan Stanley and Sullivan & Cromwell.
Mondelez International, an American multinational confectionery, food, and beverage holding company, completed the acquisition of Give & Go, a producer and marketer of bakery products, from Thomas H. Lee Partners, a private equity firm, for $1.2bn.
“This is a unique opportunity for Give & Go to join the Mondelēz International family and benefit from their capabilities to accelerate innovation, consumer engagement and strategic retail partnerships," Joel Flatt, Give & Go President and CEO.
Give & Go was advised by Houlihan Lokey.
Nomura Holdings, an investment bank, completed the acquisition of Greentech Capital Advisors, a boutique investment banking and advisory services provider. Financial terms were not disclosed. Post-acquisition, Greentech was rebranded as Nomura Greentech and form part of Nomura’s Americas Investment Banking franchise.
“We are excited to complete our acquisition of Greentech, which is the leading M&A advisor in clean energy and energy smart technologies. Nomura remains committed to strengthening our investment banking capabilities globally and the establishment of Nomura Greentech represents a substantial addition to our domain expertise. Sustainability and ESG are key themes in today’s society and we look forward to continuing to support our clients in these areas,” Mike Rintoul, Nomura Americas Investment Banking Head.
Greentech was advised by Skadden Arps Slate Meagher & Flom.
Francisco Partners, a private equity firm, completed the acquisition of Smith Technologies, a provider of community pharmacy technology, long-term care technology and public sector software, from JM Smith, which wholesales and distributes pharmaceutical products. Financial terms were not disclosed.
“I am fortunate to be joining the company at such an exciting time. RedSail has developed an unparalleled reputation as a leader across its core markets, and I am grateful for the opportunity to help the company and its employees continue to execute on their vision. Through focused product investments, our goal is to address our customers’ most critical needs, empowering them with innovative software and services,” Kraig McEwen, Francisco Partners New Chief Executive Officer.
JM Smith was advised by Davis Polk & Wardwell.
Council Capital, a healthcare-focused private equity firm, is set to invest in Physician Housecalls, a provider of home-based primary care services. Financial terms were not disclosed.
“Home-based primary care is an investment theme we have been investigating for more than a year. Physician Housecalls offers an innovative and effective service that greatly improves the patient’s quality of care and satisfaction, reduces costs to the healthcare system, and creates a more meaningful practice experience for providers. These attributes align strongly with our strategy of investing on the “right side of change in healthcare” – where we are able to grow and generate returns by investing into companies that improve the patient experience while also reducing cost," Eric Keen, Council Capital General Partner.
Athora, a specialised insurance and reinsurance group, completed the acquisition of VIVAT, one of the largest insurers in the Netherlands, from Chinese Anbang. Financial terms were not disclosed.
"We aim to invest in the life business in the Netherlands and deliver value not only to VIVAT's existing customers, but also to Dutch consumers overall. New product introductions, competitive pricing and a renewed focus on a broad spectrum of customer services will be part of our offering. We kindly welcome the VIVAT employees to the Athora family and look forward to working together in the future to build on the already strong reputation of the VIVAT brands," Michele Bareggi, Athora CEO.
Anthora was advised by KPMG, Aperghis & Co, Deutsche Bank, Slaughter & May, Stibbe and Confidant Partners. Anbang was advised by JP Morgan and Allen & Overy.
Mezzanine Management-backed Sebastian Sliwa, founder of Akomex, one of the largest manufacturers of cardboard packaging in Poland, completed the buy back of the firm from Highlander Partners. Financial terms were not disclosed.
"We are very pleased to complete this transaction and happy that Sebastian is able to once again become the majority shareholder. We have been a very patient investor, owning Akomex for over nine years, and invested heavily in the company during our ownership period, including two significant add-on acquisitions. It is very satisfying to see such an outstanding outcome," Jeff L. Hull, Highlander President and CEO.
Mezzanine Management was advised by Ernst & Young, CIC Corporate Finance, Baker McKenzie and Norton Rose Fulbright. Highlander was advised by Rothschild & Co and Gessel.
Aurelius, a private equity firm, completed the acquisition of the Armstrong ceiling tiles and grids businesses of Knauf, a German building material company. Financial terms were not disclosed.
“We are delighted that this acquisition has now been completed and we welcome Armstrong Ceiling Solutions into our portfolio. The completion of this transaction is doubly significant in that it demonstrates Aurelius’ capability to transact in highly challenging market conditions as well as our expertise when it comes to executing complex, cross-border carve-outs. We look forward to supporting Armstrong Ceiling Solutions and its management team during the company’s next stage of development, leveraging our extensive experience working with businesses in the manufacturing sector and our operational expertise to support the company’s continued growth,” Fritz Seemann, Aurelius Executive Board Member.
Aurelius was advised by Eversheds, Linklaters and KPMG. Knauf was advised by PricewaterhouseCoopers and Freshfields Bruckhaus Deringer.
CSC, a provider of business, legal, tax, and digital brand services, completed the acquisition of TCS-Groep, a Netherlands-based service provider for alternative investment funds. Financial terms were not disclosed.
“Our long-term stability and client-centric approach is highly valued by funds clients and makes for a strong cultural fit between our respective organizations. TCS has an impressive track record and similar service-oriented culture to our own. The combined offerings and shared reputation for high-quality client service create a unique offering in the marketplace every day, but even more so during these challenging times across the globe,” John Hebert, CSC Senior Vice President.
TCS-Groep was advised by PhiDelphi Corporate Finance and Janssenbroekhuysen Advocaten. CSC was advised by Houthoff and Pepper Hamilton.
Bridgepoint agreed to acquire a 28% stake in Cyrus Conseil, a French wealth management firm. Financial terms were not disclosed.
Meyer Azogui, Cyrus President, said the firm wanted to take part in the consolidation of the wealth management consultancy market in France and therefore wanted to tap the financial resources and advice of Bridgepoint, which has more than €20bn ($23bn) in assets under management.
Brindgepoint was advised by Fuzall Corporate Finance, Ernst and Young, KPMG, Kearney, Pricewaterhousecoopers, McDermott Will & Emery, Cambon Partners, Grant Thornton and Jeausserand Audouard. Debt financing is provided by Ardian. Ardian is advised by Willkie Farr & Gallagher.
Ancala Partners, an independent infrastructure investment manager, agreed to acquire a majority stake in Holmleigh Care Group, a healthcare services provider. Financial terms were not disclosed.
“Holmleigh has an excellent reputation for providing high quality care services across its portfolio of homes, especially among its local authority partners, and its success is a strong testament to the vision and commitment of its Founder Managers. The Holmleigh team are delivering on the government’s objective of improving health and care services so that more people can live in the community with the right support," Spence Clunie, Ancala Partners Managing Partner.
AEQUITA, a Munich-based family office investing in special situations including corporate carve-outs, successions, and recovery situations across Europe, is set to acquire Willi Elbe, an automotive supplier. Financial terms were not disclosed.
"We are looking forward to the cooperation with the employees of Willi Elbe. We were convinced about Willi Elbe's outstanding technological capabilities and its future potential since day one. With our experience and support, we want to further expand Willi Elbe's strong positioning in the field of state-of-the-art steering technology, based on the established global production network,” Dr. Axel Geuer, AEQUITA Founder and Chairman.
Nordic Capital-backed Signicat, a provider cross-border, cloud-based electronic identity services, agreed to acquire Connectis, a digital identity specialist. Financial terms were not disclosed.
“The adoption of digital identity in the Netherlands and Belgium has been impressive, and we are very pleased with now expanding our operations in the region. With Connectis joining Signicat, we are not only expanding our reach and customer base, we are creating Europe’s strongest digital identity platform. We are really looking forward to working together and to offer existing and new customers an even stronger digital identity offering,” Asger Hattel, Signicat CEO.
Abris-backed Green Group, a Romanian recycling company, agreed to acquire Eltex Recycling, a recycling company, from Eltex. Financial terms were not disclosed.
"The acquisition of Eltex Recycling represents another step for Green Group towards the circular economy model. Now we start the cycle not from waste, but from services offered to industries. We will develop 'recycling as a service', integrating industrial waste into new products. It is our way to a 'zero waste' society," Constantin Damov, Green Group Chairman.
Harald Quandt Industriebeteiligungen, a principal investment firm, completed the acquisition of a majority stake in Zetcom Group, a provider of inventory management software for museums, foundations, associations and corporate collections. Financial terms were not disclosed.
"Together with Marcel Zemp, Dominik Gertsch and the first-rate management team we intend to further promote and accelerate the growth profile of the company, particularly through further internationalization. In addition, we see significant growth potential in the development and expansion of the product portfolio. In this regard, we will also consider acquisitions and strategic investments," Gregor Harald May, HQIB Managing Director.
Deutsche Telekom looks at the European M&A market after Sprint deal.
Europe's phone industry needs mergers if it wants to build the kind of superior infrastructure required to compete with bigger rivals in Asia and the US, Hoettges said. He indicated he's willing to get the German carrier involved in M&A to achieve that goal.
"Europe is too fragmented. Wherever I see a deal or an opportunity for European market consolidation that's convincing, then I would always look at that with the partners," Tim Hoettges, Deutsche Telekom CEO.
Walmart considers postponing the partial sale of UK's Asda due to coronavirus crisis.
Walmart, the world's largest retailer, put the possible sale of a majority stake in its British supermarket arm Asda on hold until the coronavirus crisis is over, Reuters reported. The US group said in February it was in talks with possible buyers of a stake in Asda, which it failed to combine with UK rival Sainsbury's last year.
Walmart has now paused the process so that Asda Chief Executive Roger Burnley and his leadership team can fully focus on responding to the current health emergency.
KLM does not consider breaking up with Air France-KLM.
The chief executive of airline KLM said the Dutch company is not considering a break with its parent, Air France-KLM, as the company attempts to cope with the financial consequences of the coronavirus outbreak.
“We are not working on disentanglement scenarios. We’re working on financing,” Pieter Elbers, KLM CEO.
Mubadala Ventures plans health fund as coronavirus drives demand. (FS)
The venture capital arm of Abu Dhabi state investor Mubadala plans to launch a healthcare fund next year to tap into increased demand for investment in life sciences and digital health technology following the coronavirus outbreak.
“We are considering next year developing a sort of healthcare-specific fund that can be focused on life sciences and healthcare over the coming decade. Our view is that investments in this space... are only going to accelerate moving forward,” Ibrahim Ajami, Mubadala Ventures Head.
APAC
Binance, a global blockchain company, is set to acquire CoinMarketCap, a cryptoassets exchange platform. Financial terms were not disclosed.
“The core DNA of CoinMarketCap is strongly aligned with Binance’s ethics and culture, from its integrity to its value of freedom, transparency and user-focus. Our common vision will be strengthened by this acquisition to further growth and instill transparency in the industry. This will enable us to build on each other’s strengths, jointly serving as infrastructure providers of crypto,” Changpeng Zhao, Binance CEO.
CoinMarketCap is advised by Kirkland & Ellis.
EU antitrust regulators halted their investigation into shipbuilding group Hyundai Heavy Industries’ $1.8bn merger with Daewoo while waiting for the companies to provide information.
“Once the missing information is supplied by the parties, the clock is re-started and the deadline for the Commission’s decision is adjusted accordingly,” the EU competition enforcer.
Cabot, a global specialty chemicals and performance materials company, completed the acquisition of Shenzhen Sanshun Nano New Materials, a carbon nanotube producer in China, for $115m.
"The addition of SUSN's CNT technology complements our already strong portfolio of conductive carbon products, and creates significant opportunity to deliver new innovative formulated solutions for improved battery performance for the rapidly growing energy-storage market," Jeff Zhu, Cabot Senior Vice President and President.
CBRE and Logos raised $786m for China logistics fund. (FS, RE)
CBRE Global Investors, a real asset investment management firm, and Australian logistics developer Logos Group reached the final close of their joint China-focused logistics fund at $786m.
The CBRE Logos China Logistics Club Fund, which secured commitments from eight investment partners from China and Asia, targets investments in income-producing logistics and industrial assets strategically located in major cities. It will be operated in partnership between CBRE Global Investors and Logos. CBRE will handle fund management while Logos will take care of acquisition, development, leasing, and managing the assets. The new fund is the third vehicle in China for CBRE and the fourth for Logos.
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