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AMERICAS
Sculptor Capital Management said major shareholder and founder Dan Och and his group agreed to a sweetened deal from Rithm Capital, in what may be the deciding bid for the struggling hedge fund, Bloomberg reported.
Rithm's amended offer increased the bid to $12.70 a share from $12.00. It values Sculptor at about $720m.
FVLCRUM Funds, a private equity firm, and Channing Johnson, completed the acquisition of Burrell Communications, a full service marketing and communications agency. Financial terms were not disclosed.
"We are truly excited for Burrell's next chapter. It was pivotal to Fay and me to transition the company to a team that would be committed to investing in the agency, growing its capabilities and reach in the years ahead and maintaining the talent and culture that makes Burrell special," McGhee Osse, Burrell Communications Co-CEO.
Burrell Communications is advised by Oaklins DeSilva+Phillips, Davis & Gilbert and Loeb & Loeb. FVLCRUM Funds is advised by Vaughan Capital Advisors, Jones Day and Katten Muchin Rosenman.
Laborie Medical Technologies, a diagnostic and therapeutic medical technology company, completed the acquisition of Urotronic, a medical device company, for $600m.
"We are delighted to welcome the Urotronic team to Laborie, and we look forward to working together in our mission to deliver innovative technologies in the Interventional Urology space that preserve and restore human dignity," Michael Frazzette, Laborie Medical Technologies President and CEO.
Old National Bancorp, an American regional bank, agreed to acquire CapStar Financials, a bank holding company, in a $344m deal.
"This partnership with CapStar – one of the most highly respected and successful community banks in Tennessee – is a tremendous cultural fit and a natural extension of our growth strategy. By establishing a full-service banking presence in Nashville and several other strong Tennessee and North Carolina communities, we can more fully serve our existing Nashville-area clients while also introducing our client- and community-focused brand of banking to the surrounding region," Jim Ryan, Old National CEO.
CapStar Financials is advised by Morgan Stanley and Wachtell Lipton Rosen & Katz (led by Matthew M. Guest). Old National is advised by Keefe Bruyette & Woods and Dykema.
Ultra Clean, a semiconductor fabrication firm, completed the acquisition of HIS Innovations Group, a supplier of semiconductor sub-fab components, for $100m.
"This acquisition aligns with UCT's long-term strategy to pursue sustained and profitable growth by offering a more diversified portfolio of high-quality, high-value solutions to our customers. This acquisition increases our vertical capabilities and synergies, extends our reach into the sub-fab area, and expands our addressable market by approximately $1.5bn. With more than 60 new fabs being built, this represents a meaningful growth opportunity," Jim Scholhamer, Ultra Clean CEO.
Ultra Clean was advised by Needham & Co and Davis Polk & Wardwell (led by Alan F. Denenberg).
Hull Street Energy, a private equity firm, agreed to acquire EF Oxnard, a nominal 48 MW simple cycle, gas-fired facility, from Atlantic Power & Utilities, a power generation and infrastructure company. Financial terms were not disclosed.
"The EF Oxnard plant and its excellent employees will be a high-quality addition to Hull Street Energy's transition. Hull Street Energy looks forward to working with employees and stakeholders to provide efficient, reliable support for California grid operations as the region continues to decarbonize," Hull Street Energy.
Hull Street Energy is advised by Troutman Pepper. Atlantic is advised by Sidley Austin.
Integrated Power Services, a provider of industrial maintenance services, completed the acquisition of Lighthouse Global Energy, an OEM wind turbine spare parts supplier and manufacturer. Financial terms were not disclosed.
"My colleagues and I are excited about becoming part of IPS. IPS combines unique single-source capabilities for wind power with scale — which we want to align with. Renewable Energy is our future, and acquisitions like the one today make our industry stronger. We're proud to add our distribution relationships, engineering, manufacturing, and services to the IPS North American network," Ruben Guerrero, Lighthouse Global Energy President.
Lighthouse Global Energy was advised by Moorgate Securities. Integrated Power Services was advised by Jones Day (led by Ashley Gullett).
Gemspring Capital-backed Shrieve Chemical, a value-added chemicals distributor, completed the acquisition of Gilbert & Jones, a distributor of industrial chemicals. Financial terms were not disclosed.
"The Gilbert & Jones acquisition aligns perfectly with our long-term growth strategy and allows us to further diversify our product offerings and expand our reach into new markets. Together, we will capitalize on our collective strengths and capabilities to provide unparalleled service and solutions to our customers. We are excited to welcome the Gilbert & Jones team to the Shrieve family and are looking forward to our combined success," George Fuller, Shrieve CEO.
Gilbert & Jones was advised by Northborne Partners. Gemspring Capital was advised by Joele Frank.
Gemspring Capital, a private equity firm, completed the acquisition of InflowCX, an IT consulting services provider. Financial terms were not disclosed.
"As we have scaled our business to meet the increasing – and evolving – needs of our customers, becoming part of the Amplix platform will allow us to introduce expanded offerings and innovative solutions that will directly benefit the enterprise organizations we support and advise. I look forward to working closely with Joe and the Gemspring team to support the long-term growth and success of the combined business," Ken Smith, InflowCX CEO.
InflowCX was advised by Lazard. Gemspring Capital was advised by Joele Frank.
AppTech Payments, a digital financial services provider, completed the acquisition of FinZeo, a software development company centered around the movement of money. Financial terms were not disclosed.
"This acquisition aligns seamlessly with AppTech's strategic initiatives, marking our steadfast commitment to investing in innovation and technology. We are resolute in our mission to foster revenue synergy and provide specialty payments for businesses and partners, while continuing to lead the way in the ever-evolving Fintech landscape. With FinZeo fully integrated into our Commerse™ product suite, we trust the market will be highly receptive to our comprehensive PaaS and BaaS solutions. We welcome the FinZeo team to our company and look forward to executing on our commercialization strategy to ultimately generate value for our shareholders," Luke D'Angelo, AppTech Payments Chairman and CEO.
Nexus Capital Management, a private equity firm, agreed to acquire a 65% stake in Dollar Shave Club, a male grooming products maker, from Unilever, an FMCG company. Financial terms were not disclosed.
"We are thrilled to acquire Dollar Shave Club, based on its strong brand loyalty, pioneering DTC model, and omni-channel presence. We see growth potential and will invest in cutting-edge marketing, product quality and new innovations. Dollar Shave Club will also serve as a platform for additional brands with a similar DNA. We are excited to work with Dollar Shave Club employees to drive accelerated growth and welcome Unilever's continued partnership," Michael Cohen, Nexus Capital Partner.
Unilever is advised by Morgan Stanley.
Kyushu Electric Power, a company mainly involved in the electric power business, agreed to acquire the 400 MW US operating portfolio from Enfinity Global, a renewable energy company. Financial terms were not disclosed.
"Kyushu Electric is an energy leader in Japan, and we are honored to be their long-term partner in this portfolio as we continue to rapidly grow. Our global footprint is a key enabler and differentiator as we bring strategic investors to attractive opportunities in growth markets," Carlos Domenech, Enfinity Global CEO.
LyondellBasell, a chemical company, completed the acquisition of a 25% stake in Cyclyx, a post-use plastic innovation company, from Agilyx, a plastic recycling technology company, and ExxonMobil, an oil and gas company. Financial terms were not disclosed.
"Investing in plastic waste value chain experts such as Cyclyx, together with Agilyx and ExxonMobil, helps create the robust supply chains we all need to increase access to circular and renewable feedstocks. This collaboration unlocks the necessary scale of recycled material and infrastructure for our planned integrated Circular and Low Carbon Solutions Hub in the Houston area and aligns with our purpose of creating solutions for everyday sustainable living," Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low Carbon Solutions.
ConocoPhillips weighs CrownRock bid to challenge rivals.
ConocoPhillips is considering an offer for CrownRock, an energy producer in the west Texas area of the Permian basin, as consolidation in the sector picks up pace.
Conoco, the largest US oil and gas producer after Exxon Mobil and Chevron has expressed interest in participating in the sale process for privately held CrownRock, which is valued between $10bn and $15bn.
Diamondback Energy, Devon Energy, Marathon Oil and Continental Resources are also studying potential bids for CrownRock. No deal with any of these companies is certain and other bidders could emerge, Reuters reported.
TC Energy is exploring billions in asset stake sales.
Pipeline and transportation company TC Energy is pursuing a multibillion-dollar asset sale plan to reduce debt and fund new investments, Bloomberg reported.
The Calgary-based company is working on the sale of a minority stake in the ANR Pipeline, which it has ascribed an enterprise valuation of about $3bn.
Google bets $2bn on Anthropic.
Google agreed to invest up to $2bn in Anthropic, the artificial intelligence startup founded by ex-OpenAI executives, Bloomberg reported.
The commitment involves a $500m upfront cash infusion and an additional $1.5bn to be invested over time. The deal is structured as a convertible note, a type of debt that will convert to equity at the startup's next funding round. The deal closely follows another large convertible note investment into Anthropic from Amazon.com for up to $4bn earlier this year.
Silver Lake, Thoma Bravo-backed SolarWinds is weighing potential sale. (FS)
SolarWinds, a publicly traded software company controlled by Silver Lake Management and Thoma Bravo, is exploring options including a potential sale, Bloomberg reported.
The Austin-based company is working with financial advisers to prepare a sale process that is expected to kick off early next year. No final decision has been made and SolarWinds could opt to remain independent.
Fortress approached Whitestone REIT about a takeover. (FS)
Fortress Investment Group has approached retail landlord Whitestone REIT about a takeover, Bloomberg reported.
Whitestone, which had a market capitalization of $459m at the close of trading Wednesday, rebuffed the alternative-asset manager. Terms of the Fortress offer couldn’t immediately be learned.
ExxonMobil seeks more M&A opportunities after $60bn Pioneer deal.
ExxonMobil remains on the hunt for deals even after unveiling its biggest transaction this century, as it and rival Chevron reported profits that fell short of Wall Street expectations, Financial Times reported.
Flexport is in talks to buy failed freight firm Convoy’s technology.
Flexport is in talks to buy the technology of collapsed digital freight startup Convoy, a move that would expand the freight forwarder’s push into the domestic US trucking market as the company seeks to climb back into profitability, Wall Street Journal reported.
As part of the deal, Flexport would bring on a small team of business, product and tech experts from Convoy, a one-time darling of venture-capital investors that ceased operations this month. The company wouldn’t acquire Convoy’s overall business, nor any physical assets such as truck trailers or real estate. Flexport also wouldn’t absorb Convoy’s liabilities under terms of the deal under discussion.
EMEA
Blackstone, a private equity firm, agreed to acquire 24 properties of Corem Property Group, a real estate services firm, for $104m.
The property portfolio consists of properties located in Stockholm, Jönköping, Malmö and Norrköping. The transaction frees up capital to strengthen Corem's long-term financial capacity, as well as for prioritized investments.
Blackstone is advised by CBRE Group, PricewaterhouseCoopers, Roschier Attorneys, Simpson Thacher & Bartlett and Arcadis. Corem Property is advised by Walthon Advokater.
Asset manager Macquarie said it did not intend to make another offer for Renewi after the London-listed waste management company rejected its sweetened bid.
Following multiple attempts to engage with Renewi's board, all of which were rejected, Macquarie said it was not in an informed position to make an offer for the firm.
Macquarie is advised by Citigroup, Linklaters and Citigate Dewe Rogerson.
TotalEnergies, an energy company, agreed to acquire Quadra Energy, a green energy generation firm. Financial terms were not disclosed.
"We are pleased with the acquisition of Quadra Energy, and I would like to welcome their teams, who will be an essential component of our presence in Germany's electricity market. This agreement will enable us to speed up the development of our Integrated Power activities in the country – whose electricity market has particularly attractive fundamentals – in both production, trading, aggregation and marketing of Corporate PPA and clean firm power. This acquisition thus contributes positively to our profitability target of 12 % ROACE by 2028 for this business segment," Stéphane Michel, TotalEnergies President.
TotalEnergies is advised by Jones Day.
Vodafone nears stake sale in €5bn Spanish unit to Zegona.
Vodafone Group is close to selling a stake of at least 50% in its Spanish business to Zegona Communications in a deal that values the asset at more than $5.3bn.
The firms are finalizing details of a transaction and an announcement could come in the coming days. London-based Zegona, an acquisition vehicle, has beaten out other bidders including private equity firm RRJ Capital in the process.
Warburg Pincus was among those considering a bid for the assets, while Apollo Global Management has also shown initial interest, Deccan Herald reported.
Italy rebuffs alternative Telecom Italia plan, sticks to KKR. (FS)
Italy rebuffed a plan from an investor Merlyn Advisors, which challenged its strategy for Telecom Italia and will stick to its plan to sell the carrier's land-line network to US private equity giant KKR & Co.
The Italian government rejects any proposal that is different to its previously announced strategy, reiterating that the government strategy is also aimed at retaining control of a strategic asset. Italy holds a stake of about 10% in Telecom Italia through state-backed lender Cassa Depositi e Prestiti.
The government comments are in response to an alternative plan proposed by Merlyn Advisors, a minority investor in Telecom Italia, which would halt the land-line sale and replace Chief Executive Officer Pietro Labriola. That plan envisaged the carrier keeping the grid while selling its consumer division and its Brazilian unit Tim. In a separate statement, Telecom Italia said it had received the letter from Merlyn and will continue with preparatory activities related to KKR's offer.
A London-based investment firm led by former JP Morgan banker Alessandro Barnaba unveiled a surprise plan for TIM that would halt the sale of its landline network and replace the company's chief executive officer, Bloomberg reported.
Hg prepares possible 2024 sale of F24. (FS)
Hg is weighing options, including a sale, for its German software business F24 next year. Hg is also weighing only selling part of its majority stake in the process, which is likely to target other private equity firms.
F24's emergency notification software, which can be used by governments to alert citizens of a major incident, has seen rapid growth in recent months, and the company could be valued at up to $1.1bn. Deliberations are at an early stage and sale plans may not materialise if market conditions deteriorate, Reuters reported.
Mediahuis joins race for UK's Telegraph.
Belgium publisher Mediahuis has expressed interest in buying Britain's The Telegraph, joining other newspaper publishers, media moguls and billionaires competing to buy the right-leaning broadsheet and The Spectator magazine.
The boards of the parent companies behind the Daily and Sunday Telegraph, as well as The Spectator announced the start of a sale process earlier this month.
Goldman Sachs is advising on the sale and has started sending information about the businesses to a double-digit list of interested parties. The Telegraph titles could fetch between $580m to $726m, based on a multiple of 8-10 times forecast 2023 core earnings of $73m.
The titles are being sold after Lloyds Banking Group in June seized control of the parent company in a long-running dispute with former owners, the Barclay family, over more than $1.2bn of unpaid debt secured against the businesses, Reuters reported.
Canaccord Genuity eyes Close Brothers wealth business in UK push.
Canaccord Genuity has explored a potential acquisition of Close Brothers Group's wealth management operations, a move that would increase the Canadian group's presence in the UK.
Canaccord, which offers investment banking and wealth management services, was among the final bidders in an auction process run by Goldman Sachs. Such a deal would be another example of consolidation in the UK's fragmented wealth management industry, driven by both corporates and financial investors, Reuters reported.
ASOS explores the sale of Topshop to Authentic Brands Group.
British online fashion retailer ASOS is exploring a sale of its Topshop brand to Authentic Brands Group, the American company behind brands such as Ted Baker, Reebok and Forever 21.
ASOS, which will publish its delayed full-year results this week, is at the early stages of a process that could see it offload what was once one of the best-known names on the high street. A potential disposal is said to be one of the options being examined by Jose Antonio Ramos Calamonte, who took over as chief executive last year.
ASOS is advised by PricewaterhouseCoopers, Sky News reported.
Yandex takes step towards Russian approval for restructuring.
Nasdaq-listed Russian tech company Yandex said it had obtained one of the approvals needed from the Russian government for its planned restructuring, which it hopes to complete by the end of 2023.
Dutch holding company Yandex has been working on a restructuring for months, trying to ensure some of its businesses maintain access to Western markets in the wake of sanctions against Moscow over its invasion of Ukraine. The revamp is expected to involve the sale of its main revenue-generating Russian businesses, such as search and ride-hailing, and developing four other business lines internationally.
Yandex said its board remained committed to completing the restructuring and divesting all Russia-based businesses. Yandex said it planned to take a restructuring proposal to shareholders for approval by the end of 2023, Reuters reported.
APAC
Western Digital, Japan's Kioxia call off merger talks.
Merger talks between Western Digital and Japan's Kioxia Holdings have stalled, as opposition from Kioxia investor SK Hynix has complicated the on-again, off-again deal to create a memory chip giant.
South Korea's SK Hynix, itself a major memory chip maker and rival to both companies said it did not back the deal, citing the potential impact on the value of its investment in Kioxia.
The companies were pursuing a merger in the face of a global chip glut and weak demand for flash memory chips, which have increased pressure on chipmakers to consolidate. Kioxia and Western Digital have held merger talks since 2021 but the negotiations have often stalled over a series of issues, including valuation discrepancies.
Battery maker AESC raises $1bn as it eyes US IPO.
Battery maker AESC recently closed a $1bn funding round and is seeking to raise more money for growth from investors, a stepping stone to going public in the US, Bloomberg reported.
The Japan-based company is working with advisers on a Series C round valuing it at billions of dollars. AESC is talking with anchor investors including global automakers with the aim of eventually going public on a US exchange.
Ant-backed rural lender Chongho weighs $500m Hong Kong IPO.
Chongho Bridge Credit Agricultural Group, a Chinese rural bank that offers microcredit and micro-insurance to small businesses, is considering a Hong Kong initial public offering that could raise as much as $500m, Bloomberg reported.
The Ant Group-backed company is working with China International Capital and UBS Group on the preparations of the listing, which could happen as soon as next year. The share sale could raise $300m to $500m depending on market conditions.
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