AMERICAS
AEA Investors-backed Helios Technologies, a global industrial technology company, completed the acquisition of Balboa Water Group, a manufacturer of customized, critical components for the portable spa, jetted bath and other adjacent markets, for $219m.
“Strategically, this acquisition is our first step in a multi-year journey to build out our Electronics segment into a top industry player. The deal aligns entirely with our Vision 2025 strategy and will have very attractive financial returns for our shareholders from day one. Additionally, I have already received very receptive feedback from some existing and potential new customers around areas for product development that Helios and Balboa will be able to create together,” Josef Matosevic, Helios Technologies President and Chief Executive Officer.
Helios Technologies was advised by Morgan Stanley, Jones Day and Kei Advisors. Balboa Water Group was advised by Houlihan Lokey and Fried Frank Harris Shriver & Jacobson.
Riverstone Holdings, an energy and power-focused private investment firm, agreed to acquire International-Matex Tank Terminals, an owner and operator of bulk liquid storage terminal facilities, from Macquarie Infrastructure for $2.68bn.
"Riverstone has a long-standing track record owning and operating terminal assets, and we are excited about the opportunities at IMTT to drive growth and performance to deliver attractive returns to our investors," Baran Tekkora, Riverstone Partner & Co-Head of Private Equity.
Riverstone is advised by Jefferies & Company, Latham & Watkins and Kekst CNC.
Oak Hill Capital, an American private equity firm, agreed to invest in Race Communications, a telecommunications and technology company in California. The transaction is expected to close by early 2021, pending customary regulatory approvals. Financial terms were not disclosed.
"The Race Family is excited to partner with Oak Hill, who shares our mission of providing reliable, high-speed internet and advanced communications at an affordable price. Together, we will work to close the digital divide by deploying fiber optic networks in unserved and underserved markets. Race believes high-speed fiber-based internet is essential for the success of all of our customers," Raul Alcaraz, Race CEO.
Race Communications is advised by TroyGould and Bank Street Group. Oak Hill Capital is advised by Paul Weiss Rifkind Wharton & Garrison.
VF, an apparel and footwear company, agreed to acquire Supreme, a privately-owned global streetwear brand, from two private equity firms, The Carlyle Group and Goode Partners for c. $2.1bn. The transaction is expected to be completed late in calendar year 2020, subject to customary closing conditions and regulatory approval.
"VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth. The acquisition of the Supreme brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector. The Supreme brand will further accelerate VF's hyper-digital business model transformation and will be a meaningful driver of VF's commitment to top-quartile total shareholder return and long-term value creation," Steve Rendle, VF Chairman, President and Chief Executive Officer.
VF is advised by Morgan Stanley and Davis Polk & Wardwell.
New Mountain Capital, an American private equity firm, agreed to acquire HealthComp, the largest independent Third-Party Administrator of healthcare benefits, from Alpine Investors), a middle-market private equity firm. Financial terms were not disclosed.
"Through our partnership with Alpine, HealthComp has been able to address the ‘dual mandate’ in US healthcare of reducing costs and improving the member experience. We thank Alpine Investors for their fantastic partnership, and we look forward to continuing to build the HealthComp platform with the support and strategic guidance of New Mountain Capital,” Jose Rivero, HealthComp CEO.
HealthComp is advised by Tripletree and Wilson Sonsini Goodrich & Rosati.
40 North, an asset management firm, offered to acquire W.R. Grace & Co, an American chemical firm, for $4bn.
"We believe this proposal to take the company private represents the most credible path to unlock value for the company and its shareholders with a high level of certainty," David Millstone and David Winter, 40 North Principals.
40 North is advised by Citigroup.
Abertis, a toll road management company, and Manulife Investment Management, an asset management firm, agreed to acquire Elizabeth River Crossings, a company overlooking the Elizabeth River Tunnels Project, from Skanska, a construction and development company, and Macquarie Infrastructure, a provider of investment management services, for €1bn ($1.18bn). Completion of the sale is subject to regulatory approvals and other consents. The final purchase price may be adjusted as a result of certain conditions.
"This acquisition is a further step in the ambitious growth strategy of the Abertis Group, with the acquisition of a solid platform in the United States, a country that offers a strong commitment to public-private partnerships and to the concession framework. We are also very happy to initiate a new partnership with John Hancock. The deal has been possible thanks to the active support of our shareholders, Atlantia, ACS and Hochtief," José Aljaro, Abertis CEO.
Zach Seward, Quartz Co-Founder and CEO, and Katherine Bell, Quartz editor-in-chief, agreed to acquire Quartz, an online news website, from Uzabase, an online financial data service provider. Financial terms were not disclosed.
"Quartz's mission is to make business better. We want Quartz to be an ally and resource to our readers in developing new and better ways of doing business. This is an exciting moment for our own business, as we become an independent media company again. I'm thrilled to be taking this step after helping to build Quartz, with so many others, over the past eight years," Zach Seward, Quartz Co-Founder and CEO.
Wynnchurch Capital, a private equity firm, completed the acquisition of Drew Foam, a fabricator of expanded polystyrene foam used in packaging and building products, from Branford Castle Partners, a private equity firm. Financial terms were not disclosed.
"Our partnership with President & CEO Bill Givens has been incredible. Drew's unique business model allowed it to achieve significant heights despite challenging economic times. This investment outperformed our optimistic expectations," Laurence Lederer, Branford Senior Managing Director.
Drew Foam was advised by Deloitte and Akerman.
Centene, a multinational healthcare enterprise, agreed to acquire Apixio, a healthcare analytics company offering artificial intelligence technology solutions. Financial terms were not disclosed. The transaction is subject to regulatory approvals and is expected to close by the end of 2020.
"Centene is committed to accelerating innovation, modernization and digitization across the enterprise and solidify its position as a technology company focused on healthcare. Apixio's capabilities are closely aligned with our plans to digitize the administration of healthcare and to leverage comprehensive data to help improve the lives of our members. Apixio's technology will complement existing data analytics products including Interpreta, creating a differentiated platform to broaden support for value-based healthcare payment and delivery with actionable intelligence," Michael F. Neidorff, Centene Chairman, President and Chief Executive Officer.
Elliott Management acquires a stake in F5 Networks. (FS)
Elliott Management acquired a stake in software firm F5 Networks, an application services and application delivery company, making it one of the company's largest investors, Reuters reported.
The size of the position was unclear, but it fell below the 5% threshold that would require regulatory disclosure.
Berkshire Partners raised $2.6bn so far for tenth private equity fund. (FS)
Berkshire Partners, a Boston-based investment firm, has raised $2.6bn in total capital commitments for its tenth private equity fund, Berkshire Fund X. Target size of $6.5bn of the fund has achieved 40% of the fundraising goal.
With the first sale recorded in September last year, the fund has received commitments from 181 limited partners. The fund has a mandate to invest in middle-market growth companies with acquisition values between $200m and $2bn. The buyout firm typically invests $50-500m of equity capital in each portfolio company.
EMEA
Cinven and GIC agreed to acquire Miller Insurance, an insurance and reinsurance broker, from Willis Towers Watson, a British-American global multinational risk management, insurance brokerage and advisory company, for $896m. The transaction is expected to complete in Q1 2021 and is subject to regulatory approval.
"We are excited about bringing together our combined expertise to bolster our best in class client service and solutions and strengthen Miller's position in our core activities. This includes making incremental targeted, strategic investments as we look to realise our ambition of becoming the leading independent specialist (re)insurance broking firm. I would also like to take this opportunity to thank WTW for their support over the last five years," Greg Collins, Miller CEO.
Cinven and GIC are advised by Bain Capital, Marsh, Barclays, PricewaterhouseCoopers, Clifford Chance, FTI Consulting and Deloitte. Willis Towers Watson is advised by Addleshaw Goddard, Goldman Sachs, Jamieson and Herbert Smith Freehills.
Canadian security firm GardaWorld, which launched a hostile bid last month for larger rival G4S, said it has extended its offer after the British company repeatedly rejected its offers. The offer will remain open for acceptance until November 28.
"We are extending our offer for G4S because, despite its past problems and uncertain future, we believe we can turn the business around," Stephan Cretier, GardaWorld Chief Executive.
G4S is advised by Citigroup, JP Morgan, Goldman Sachs, Lazard, Linklaters and Brunswick Group. GardaWorld and BC Partners are advised by Barclays, Kirkland & Ellis, Simpson Thacher & Bartlett and Montfort Communications.
Nomad Foods, a frozen foods company, agreed to acquire Findus Switzerland, a frozen food brand, from Froneri, a dairy products company, for €110m ($130m). The transaction is expected to be completed in the beginning of 2021.
"By unifying the Findus brand under Nomad Foods' ownership and extending our geographic reach into Switzerland, we believe we have multiple levers for long-term value creation. We look forward to welcoming the Findus Switzerland team into our organization," Stéfan Descheemaeker, Nomad Foods Chief Executive Officer.
Nomad Foods is advised by Goldman Sachs, Lenz & Staehelin, Norton Rose Fulbright, Gladstone Place Partners and ICR.
Orange Romania, a broadband internet service and mobile provider, agreed to acquire a 54% stake in Telekom Romania Communications, a Romanian telecommunications company, from OTE, a technology company, for €268m ($318m). The closing of the transaction is subject to customary condition precedents, notably antitrust clearance by the European Commission and other relevant authorities and is expected to be completed within the second half of 2021.
"This acquisition is an important step to accelerate our convergence strategy in Europe. Romania is a key market for Orange and a great success story. This transaction confirms our long term commitment to the Romanian market. We are looking forward to contribute to the development of the telecoms sector through sustained investments in top performing network infrastructures and innovative services," Mari-Noëlle Jégo-Laveissière, Orange Europe Deputy CEO.
OTE is advised by Barclays, Dechert, Eversheds Sutherland and Freshfields Bruckhaus Deringer.
Kvaerner, a provider of engineering, procurement and construction services, has received the necessary approvals from governmental bodies. As a result, all conditions for completion of the merger have been met. In accordance with section 13-17 of the Public Limited Liability Companies Act, following which the merger is expected to be completed, subject to final board approval by each of the boards of Kvaerner and Aker Solutions.
Aker Solutions is advised by Carnegie Investment Bank, SEB Corporate Finance and Advokatfirmaet BA-HR. Kvaerner is advised by Arctic Securities.
Sapiens International, which offers digital software platforms, solutions and services for the property & casualty, life, pension & annuity, reinsurance, financial & compliance, agreed to acquire Tia Technology, a provider of a flexible software platform to insurers all over the world, from EQT. The transaction is subject to customary closing conditions and is expected to be completed by end of this month. Financial terms were not disclosed.
"We remain committed to exploring new opportunities for growth, organic as well as through mergers and acquisitions. This acquisition is in line with our strategy to expand our European market footprint, following recent acquisitions in Iberia and the DACH regions," Roni Al-Dor, President and CEO Sapiens.
EQT is advised by Ernst & Young, FIH Partners and Kromann Reumert.
The Board of Agthia Group, an Abu Dhabi-based food and beverage company, approves a deal with General Holding (Senaat), a company of Abu Dhabi-based state-owned holding company ADQ, to combine with Al Foah. The transaction is subject to the approval of the General Meeting of Agthia.
As part of the offer, Seenat will transfer Al Foah, excluding its organic date farm in Al Ain, to Agthia, in consideration for the issuance by Agthia to Senaat of a convertible instrument, convertible into 120m ordinary shares in Agthia upon closing of the transaction.
Senaat is advised by Brunswick Group.
Ares Management agreed to acquire Exemplar Health Care, a provider of are to individuals living with complex physical and mental needs, from Agilitas, a UK private equity firm. Financial terms were not disclosed.
“Our investment in Exemplar is a clear example of our focus on supporting companies that answer fundamental human or planetary needs. The partnership between Agilitas and Exemplar has been one that was formed on having a joint, rigorous approach to the pursuit of care quality,” Martin Calderbank, Agilitas Managing Partner.
Agilitas is advised by Greenbrook.
Eurazeo Capital, a French investment firm, completed the €56m ($60m) investment in Axel Arigato, a Swedish premium trainer, ready-to-wear and accessories brand.
"We have targeted the high-end sneaker market due to the premiumisation and casualisation trends we are seeing globally and believe Axel Arigato is an innovative and high potential brand in this sector, relying on an authentic and contemporary designer-based approach. We are delighted to partner with Max and Albin, and we look forward to working with the company to accelerate its international growth, strengthen its digital platform and expand in retail – bringing this impressive brand to new customers worldwide," Laurent Droin, Eurazeo Brands Managing Director.
Eurazeo is advised by Edelman.
Bunzl, the specialist international distribution and services group, agreed to acquire SP Equipamentos, a personal protection equipment distributor based in Sao Paulo, Brazil. Financial terms were not disclosed.
"These two acquisitions will further expand and develop our safety businesses in Brazil and Denmark, complementing our product offering and broadening our customer base in both markets. Growth through acquisitions continues to be an important part of the strategy of the Group," Frank van Zanten, Bunzl Chief Executive Officer.
Bunzl is advised by Tulchan Communications.
“We have been tracking MPM for a long time and are delighted to invest in this rapidly growing, resilient business. Owners looking to feed their pets natural, high quality food with recognisable ingredients are drawn to MPM’s brands across a variety of channels and geographies. MPM fits well with 3i’s desire to invest in strong mid-market businesses where we see significant headroom for further international growth,” Rupert Howard, 3i Group Director.
Connells Group, a privately owned real estate firm, offered to acquire Countrywide, a UK's real estate agent, from Apollo Global for c.£90.7m ($117m).
“The approach is at an early stage and Connells has indicated that any offer is conditional upon, amongst other things, completion of confirmatory due diligence and the recommendation of the board of Countrywide,” Connells.
Eleven Sports, a multinational group of sports television channels completed the acquisition of MyCujoo, a streaming platform, from two venture capital firms Go4it Capital and Sapphire Sport, and Carsten Thoma, a private investor. Financial terms were not disclosed.
"We will be coming together to give federations, teams and players a new and improved home to showcase their talent. We aim to serve dedicated communities of supporters everywhere with a first-class global sports destination and thousands of hours of LIVE sport," Luis Vicente, Eleven Sports CEO.
Greybull Capital and Aurelius weigh their bids for Deltic Group. (FS)
Greybull Capital and Aurelius, two private equity firms, have been circling Deltic Group, an operator of nightclubs, ever since it hired accountancy firm BDO to find a buyer last month.
The owner of Oceana and Pryzm risks running out of cash after being squeezed by the Government's eight-month closure of nightclubs. Deltic has attempted to stave off collapse by cutting 1k jobs – around half of its workforce- and reopening some clubs as bars. The company has also been mulling a voluntary company arrangement, a type of rescue deal that eases costs and debts.
Deutsche Bank to sell IT unit to Tata Consultancy Services. (FS)
Deutsche Bank agreed to sell a technology services unit to Tata Consultancy Services, helping the bank move closer to Chief Executive Officer Christian Sewing's ambitious job-cutting target.
The two companies aim to finalize the sale of Postbank Systems by the end of the year, Bloomberg reported. The bank will take a hit of about €120m ($140m).
"It’s a very important deal that solidifies our position in Germany, already one of our fastest-growing markets. We can leverage the banking skill sets of Postbank employees to push for further growth; we are already seeing multiple opportunities in our conversations with a number of small and medium German banks," N.G. Subramaniam, TCS Chief Operating Officer.
Providence Strategic Growth closer to €1bn European fund target. (FS)
Providence Strategic Growth, the growth equity arm of asset manager Providence Equity Partners, has collected more than three-quarters of the money it is seeking for its debut European fund.
Providence Strategic Growth Europe is targeting €1bn ($1.18bn). The public pension manager's private markets committee this week approved a €170m ($202m) commitment to the fund, which has an upper limit of €1.25bn ($1.48bn).
The new Europe fund targets initial equity investments of €5m ($5.93m) to €45m ($53.4m) in lower middle-market software and technology-enabled services providers. It is led by PSG chief executive officer Mark Hastings, chair Peter Wilde and Dany Rammal, head of PSG Europe and a managing director based in London.
Schroders launches $140m impact fund. (FS)
Schroders, the UK’s largest asset manager, is launching an impact investing fund designed to support emerging and frontier market companies battered by the coronavirus pandemic, FT reported.
The Covid-19 support fund, which has secured $140m of funding towards its $350m target, will support micro-entrepreneurs and small companies in the developing world with the aim of reducing poverty and inequality.
It will be managed by BlueOrchard Finance, the Zurich-based impact investing boutique acquired by Schroders last year. It has the support of a coalition of public and private investors, which include the international development finance agencies of the UK, US and Japan.
APAC
Nio Capital-backed Contemporary Amperex Technology, a Chinese electric vehicle battery maker, completed the $120m investment in Inceptio Tech, an autonomous truck startup.
The truck manufacturing industry is expected to be an earlier adopter of autonomous driving technology than passenger vehicle manufacturing as driving on motorways is more predictable than on busy city streets.
Reliance Industries and Saudi Aramco resume talks over 20% stake sale.
Reliance Industries and Saudi Aramco are resuming talks over a 20% stake sale by the Indian conglomerate in its oil-to-chemical business after a brief pause due to Covid-19 pandemic, Reuters reported.
Both the companies were committed to the deal and Aramco wants to do physical inspection of Reliance's assets in India. The deal, estimated to be about $15bn as of August last year, had stalled over price.
"India offers tremendous growth opportunities over the long term and Aramco continues to evaluate new business opportunities with our potential partners," Saudi Aramco.
New Chinese regulations may decrease Ant Group's valuation by half.
China's move to halt Ant Group's massive stock debut could reduce the fintech giant's value by as much as $140bn, DealStreetAsia reported. New regulations that could force Ant to raise more capital to back lending and seek national licences to operate across the country may reduce the firm's valuation by about half. The regulatory details are preliminary and could be subject to change.
If Ant's $280bn pre-IPO valuation is halved, it would essentially mean the company is worth less than what it was two years ago when it raised money from some of the world's largest funds including Warburg Pincus, Silver Lake Management, and Temasek Holdings.
The reduced valuation also means potentially lower fees for investment banks like China International Capital that were counting on a windfall from Ant's record-setting IPO. And it gives billionaire Jack Ma's firm less heft to carry out acquisitions as it looks to expand beyond its Chinese base and take the fight domestically to Tencent Holding.
Evergrande dismisses China listing plans.
China Evergrande Group, a property developer, scrapped plans for a backdoor listing and struck deals with more investors to avoid a wave of repayments, capping a four-year saga that had recently raised fears of cash crunch at the world's most indebted developer, Bloomberg reported.
While it was widely anticipated that Evergrande would fail to win regulatory approval for its listing, the deal's demise underscored China's focus on containing risks posed by fast-growing real estate and financial firms. Evergrande's announcement came less than a week after the shock suspension of Ant Group's blockbuster IPO.
Hony Capital raises $130m for debut USD fund. (FS)
Hony Capital, a Beijing-based private equity firm, which is a part of Chinese investment holding company Legend Holdings, has raised $130m for its maiden USD-denominated sub-fund to clock mid-staged investments, per an announcement.
The fund is betting big on the digital consumption story and looking to invest in digitally-driven consumer brands, and new retail platforms, among others. It also has plans to tap the business-to-business segmen
Ares Australia Management launches the Ares Diversified Credit Fund. (FS)
Ares Australia Management, a strategic joint venture between Ares Management, a global alternative investment manager, and Fidante Partners, is launching its second Australian product, the Ares Diversified Credit Fund.
"At its core, the fund provides access to Ares’ scaled credit platform, including its differentiated self-origination capabilities. We believe that Ares’ sourcing advantages and deep credit capabilities, alongside the fund’s structure which allows for inbound and outbound liquidity at NAV, provides Australian investors with a distinct product to meet their income and liquidity needs," Teiki Benveniste, Ares Australia Management Head.
UBS appoints new country head of India. (People)
UBS, Swiss lender, has appointed Uday Odedra as India country head, in addition to his role as the head of group technology for the Asia Pacific region, Reuters reported.
Incumbent Harald Egger will continue in his role as the head of group corporate services and has now been nominated as Chairman for UBS India, a newly created role on account of the group's presence in the subcontinent.
"My time in India has been an outstanding and inspiring experience, and I am excited to be retaining close ties to the region in my new role, I am confident that Uday's skills as a leader and unparalleled knowledge of the business will provide further momentum to UBS's business in India," Harald Egger, UBS Head of Corporate Services.
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