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AMERICAS
J.F. Lehman, a private equity investment firm focused on the aerospace, defense, maritime and environmental sectors, completed the acquisition of Crystal Clean, a provider of parts cleaning, hazardous and non-hazardous waste services, from Heritage, a business managing a diverse portfolio of operating companies, for $1.2bn.
"We are excited to begin our partnership with Crystal Clean's leadership team and build on the Company's strong foundation as a clear category leader and unparalleled provider of environmental and waste disposal services. We have long admired Crystal Clean's reputation of providing high-quality services to its diversified, blue-chip customer base, as well as the financial and operational excellence the team has established. We look forward to working together to best position Crystal Clean for sustainable, long-term success as a private company," Glenn Shor, J.F. Lehman Partner.
Crystal Clean was advised by Stifel (led by Dave Gray, Jon M. Mahan and John McNamara), William Blair & Co, Fasken (led by Alain Ranger), McDermott Will & Emery and Joele Frank (led by Eric Brielmann). J.F. Lehman was advised by Houlihan Lokey, Jefferies & Company, Jones Day and Shearman & Sterling (led by Alain Dermarkar and Robert Cardone). Debt financing was provided by Jefferies & Company, PSP Investments and Sumitomo Mitsui Banking Corp.
KKR, an alternative asset manager focusing on private equity, fixed income, and capital markets, completed the acquisition CIRCOR International, a manufacturer of highly engineered, complex and severe environment products that serve the long-term, for $1.7bn.
“Today marks an exciting new chapter for CIRCOR. KKR’s exceptional track record in the flow control space and commitment to invest in employees makes them a perfect strategic partner for our future. We look forward to working with KKR as we continue to grow, innovate, and improve CIRCOR for the benefit of our customers,” Tony Najjar, CIRCOR President and CEO.
Sterling Group-backed West Star Aviation, a non-scheduled airline company, agreed to acquire Jet East, an aviation maintenance provider, from Gama Aviation, a British business aviation services company, for $131m.
"Joining forces with West Star provides so much optimism for everyone involved. As a combined entity, we will be able to provide unparalleled service and support to our collective customer-base with greater depth in providing maintenance solutions. The combination enhances opportunities for our talented workforce as our capabilities increase in size and scope. I am incredibly proud of our team, and the opportunity to partner with West Star is truly amazing," Stephen Maiden, Jet East CEO.
Peyto Exploration & Development, an explorer and producer of uncoventional natural gas in Alberta's Deep Basin, completed the acquisition of the Canadian unit of Repsol, an integrated global energy company, for $468m.
"This acquisition marks a very important milestone for Peyto. We have coveted these lands for many years and this asset checks all the boxes for us. Peyto has a history of being very selective when it comes to acquisitions but is also very successful in realizing value from them. The Repsol assets fit perfectly with Peyto's existing Deep Basin acreage and offer a significant number of top-tier undeveloped locations that will immediately compete for capital within our portfolio. Furthermore, we have identified many opportunities to leverage our low-cost, operational expertise on these Assets which we expect will yield significant annual cost savings. Together, at current strip pricing and under our proposed development plan, the combined assets are forecast to generate sufficient cumulative free cash flow over the next three years to support long term sustainable returns to shareholders in the form of reduced debt and increasing dividends," Jean-Paul Lachance, Peyto President and CEO.
Peyto Exploration & Development was advised by BMO Capital Markets, CIBC, National Bank Financial, and Burnet Duckworth & Palmer.
Paceline Equity-backed AHF Products, a provider of wood flooring design, innovation, product development, and manufacturing services, completed the acquisition of Crossville, a US-owned and operated manufacturer of award-winning tile collections for residential and contract applications. Financial terms were not disclosed.
“Adding a well-known and trusted brand like Crossville is a terrific complement to our legacy brands, including Bruce and Armstrong Flooring. Today, we are a more valuable supplier because we can package the high-touch service that our customers know us for with an even more diverse product offering. This will be a seamless transition for customers. AHF Products and the Crossville team will invest in the Crossville brand to expand its product offering and reach. Collectively, we will be a stronger, more capable organization with the ability to serve all our customers more effectively,” Brian Carson, AHF President & CEO.
Natgas producer Chesapeake explores buying Southwestern Energy.
US natural gas producer Chesapeake Energy has approached Southwestern Energy, a peer valued by the stock market at $12bn including debt, about a potential acquisition, Reuters reported.
Were the two companies to combine, they would overtake EQT as the largest natural gas-focused exploration and production company in the US by market value, at a time when shale companies are seeking scale and efficiencies. Southwestern's shares ended trading up 8.3% at $7.33 on the news, at their highest finish in almost a year. Chesapeake's shares closed up 0.7% at $89.59.
NexPhase closes oversubscribed Fund V with over $795m in capital commitments. (FS)
NexPhase Capital, a thematically driven and operationally focused private equity firm, has closed its NexPhase Capital Fund with over $795m of capital commitments, exceeding the fund’s target of $750m and representing a more than 45% increase in size from its predecessor fund.
Fund V was oversubscribed and saw backing from both existing and a diverse base of new investors. Consistent with its previous funds, NPC V will target control positions in lower middle-market, growth-oriented companies in North America across the healthcare, software, and consumer industry verticals.
Graycliff Partners holds single closing for $600m buyout fund. (FS)
Graycliff Partners has held the first and final closing of the firm’s fifth lower middle market private equity fund, Graycliff Private Equity Partners V, which was oversubscribed, at its hard cap of $600m, in limited partner commitments.
The fundraise, which was completed in less than four months with support from both existing and new investors, also included significant additional commitments from Graycliff’s partners and employees.
Hamilton Lane raises $290m for small business credit funds. (FS)
Hamilton Lane has raised a combined $290m from institutional investors actress the United States for two small business credit funds – the Hamilton Lane National Small Business Credit Fund, and the Hamilton Lane New York SBIC Fund II.
Hamilton Lane launched New York SBIC Fund I in 2015, with the goal of identifying opportunities to strategically deploy capital to help drive development and advance small businesses in New York State. Building on the success of the firm’s first SBIC offering, the new funds were launched in 2022, and seek to follow a consistent strategy and structure, focusing on providing loans to lower middle market businesses with EBITDA ranging from $3m to $25m.
EMEA
Apax Partners, an independent global partnership focused solely on long-term investment in growth companies, agreed to acquire Kin and Carta, a global digital transformation business that advises, creates, and connects marketing and customer experience, for £203m ($247m).
"We are impressed by Kin and Carta's unique culture, talented team, and focus on customer impact as evidenced by their B Corp status. We have followed the company closely for several years and we have witnessed firsthand how their focus on innovation and strong platform in the Digital Transformation sector has made Kin and Carta a partner of choice for clients grappling with complex technology problems. We believe there is significant opportunity to enhance Kin and Carta's prospects as a private company, including by pursuing acquisitions that would enhance further its competitive position. As significant investors in the space, we hope to draw on our network, experience and operational expertise to support management and the wider team by investing in the business to enhance the value for customers, employees and other stakeholders, building on the firm's success to date," Rohan Haldea, Apax Partner.
Kin and Carta are advised by Numis Securities (led by Nick Westlake), Peel Hunt (led by Paul Gillam), Citigroup (led by Avinash Patel), Herbert Smith Freehills, and Powerscourt (led by Elly Williamson). Apax Partners is advised by Bank of America (led by James Robertson), Equiteq (led by Jerome Glynn-Smith), Kirkland & Ellis (led by Stuart Boyd, Jacob Traff, Monica Gemes, and Andrew McAlpine), and Headland Consultancy (led by Emma Nyman).
Basware, a provider of financial process automation and e-invoicing solutions for businesses, completed the acquisition of Glantus Holdings, a data technology company specializing in innovative solutions for data management, analytics, and automation, for £29.5m ($36m).
"This acquisition marks a significant milestone for Basware and Glantus. Glantus has a very strong track record of delivering ROI and we share a mutual mission to drive value for the CFO's team. This deal will only accelerate our ability to deliver demonstrable savings and innovation to our customers through a joint value proposition. This move signifies further investment activity to come for Basware, solidifying our position as the leader in the AP automation industry," Jason Kurtz, Basware CEO.
Kering, a global luxury group, completed the acquisition of Creed, a multi-national niche perfume house, from BlackRock, an asset management firm, for €3.5bn ($3.7bn).
“The acquisition of Creed represents Kering Beauté’s first strategic initiative, and demonstrates our commitment to developing a strong position in the luxury beauty segment. I am thrilled that today our stories and values come together around this spirit of family entrepreneurship and excellence to accelerate our journey in beauty, and I am delighted that the brand is joining Kering’s collection of luxury Houses,” François-Henri Pinault, Kering Chairman and CEO.
Italiani Petroli, a private fuel and mobility company, completed the acquisition of the fuel business of ExxonMobil-backed Esso Italiana, a fuel company. Financial terms were not disclosed.
"The acquisition will allow the IP Group to be joined by very high quality people, competencies and production assets. We have made a great effort to finalise this operation, which will allow us to play a key role in facing the challenge of energy security in the mobility sector and will enable the following steps of the Group’s transition towards sustainability," Ugo Brachetti Peretti, IP President.
Glennmont Partners, a fund manager, agreed to acquire a 50% stake in Gode Wind 3 offshore wind farm from Ørsted, a Danish multinational energy company, for €473m ($500m).
”This third investment in German offshore wind with Ørsted continues and strengthens our successful partnership. Ørsted is a recognized leader in the offshore wind sector, and this acquisition underscores Glennmont’s strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders,” Francesco Cacciabue, Glennmont Partners CFO and Partner.
The sale of struggling Premier League club Everton to 777 Partners has stalled as the US investment fund has yet to provide audited financial statements to a British regulator, Reuters reported.
Britain's Financial Conduct Authority delivered its request to 777 Partners this month, and if the company doesn't provide the required financials or an acceptable explanation, the takeover could fall apart. Last month, Everton was sold to 777 Partners in a deal reported to be worth more than $660m.
Wallbox, a technology company that provides electric vehicle charging and energy management solutions, agreed to acquire ABL, a charging infrastructure manufacturer in automotive & energy industry, for €15m ($15.8m).
“The ABL team is glad to have found a strong partner in Wallbox who shares our vision of an emissions-free world. Together, we will proceed with our planned strategic steps and successfully launch our next generation EV charger, the eM4 and our new Schuko program in the market. With ABL and Wallbox's EV solutions complementing each other perfectly, we will hold a unique position in the market to meet the needs of all our customers," Ferdinand Schlutius, ABL Co-CEO.
US-based AutoNation said on October 17 that it will not make an offer for Pendragon, just weeks after the British automotive retailer's top shareholder, Hedin Mobility, and PAG International also dropped their joint bid, Reuters reported.
"These assets presented AutoNation with a potential opportunity to expand into a new market. However, after further considering the opportunity, we decided not to make a formal offer. AutoNation will continue to leverage M&A, which may include opportunities within and outside the US, to expand our business portfolio in a meaningful and synergistic way, and to create value for our shareholders," Mike Manley, AutoNation CEO.
Cinven considering £400m Kurt Geiger sale. (FS)
Global private equity investment firm Cinven is considering a sale of portfolio company Kurt Geiger, with the luxury retail brand expected to come to market with a price tag of around £400m ($487m).
Cinven has appointed advisors at Bank of America to handle a potential auction for the business. A sale of Kurt Geiger is expected to attract interest from other buyout firms as well as luxury retail groups.
European payments giant Nexi Soars as CVC said to weigh bid. (FS)
Nexi jumped as much as 19% after CVC Capital Partners is in the early stages of considering a potential bid for European payments firm, Bloomberg reported.
The buyout group has been evaluating Nexi for some time. Shares in Nexi hit an intraday record in early trading. The stock was up 10% in Milan, giving the company a market value of €8.3bn ($8.8bn). Other investment firms have also been studying Nexi. Buyout funds could end up partnering on a joint bid for the company given the size of the potential deal.
CVC Capital close to finalising IPO plans. (FS)
Recent market jitters haven’t deterred CVC Capital Partners from its plan to go public, with the European private equity major said to be close to finalising details of what would be the largest IPO in Europe this year.
The report cites unnamed sources with knowledge of the matter, as revealing that CVC could unveil its intention to float in Amsterdam in the coming days. An exact timeline has yet to be set though, and the announcement may yet not be made until next week.
Saudi Arabian water treatment firm Miahona considers IPO.
Saudi Arabian water treatment firm Miahona is considering a domestic initial public offering as soon as next year, Bloomberg reported.
Miahona, a portfolio firm of holding company Vision Invest, has held talks with advisers about a potential deal that could raise as much as a couple hundred million dollars. Himmah Capital is advising Miahona on its share sale. Saudi Arabia’s market for IPOs has sprung back to life since the start of the summer after being virtually dormant for the first four months of the year as the benchmark index weakened. While the index then staged a rebound through to late July, it has since fallen again and almost erased the year’s gains.
EQT raises nearly €20bn for latest flagship fund. (FS)
Stockholm-listed European private equity giant EQT is nearing the close of the EQT X buyout fund having raised almost €20bn ($21bn) for its latest flagship vehicle.
EQT originally expected the fund to close by the end of 2023, but having so far secured fee-generating commitments of €19.8bn ($20bn) is now expecting a final close at or near its €21.5bn ($22bn) hard cap in Q1 2024.
Apollo, Goldman eye record €4.5bn direct loan for Adevinta. (FS)
Private credit funds at Apollo Global Management and Goldman Sachs Asset Management are among firms working on a plan to provide a €4.5bn ($4.8bn) loan to back a take-private bid for classifieds company Adevinta.
If it goes ahead, the loan would be the largest direct lending deal ever in Europe, topping the £3.5bn ($4.3bn) provided to Access Group last year, Bloomberg reported.
APAC
GCL Asia, a video game distributor, agreed to go public via SPAC merger with RF Acquisition, a publicly traded special purpose acquisition company, in a $1.2bn deal.
"GCL has a unique value proposition for games developers and publishers worldwide with our established expertise in games distribution, publishing, and marketing. As more game developers and publishers in the US and Europe set their eyes on the tremendous growth opportunity in the Asia market, GCL is well-positioned as the go-to co-publisher in the Asian region," Sebastian Toke, GCL Asia CEO.
GCL Asia is advised by AMGM, Icon Law, Loeb & Loeb and AUM Media (led by Crocker Coulson). RF Acquisition is advised by Early Bird Capital and Winston & Strawn.
Oracle, a computer technology company, completed the acquisition of Next Technik, a provider of field service management capabilities for NetSuite customers, for $60m.
"Field service organizations are often plagued by cumbersome manual processes that negatively affect productivity, the customer experience, and overall revenue. To help our customers address these issues and enhance field service operations, we are excited about this new field management solution. By automating key field service processes and providing real-time insights, it will help our customers reduce operational costs, increase satisfaction and loyalty, and ultimately improve both the top and bottom lines," Evan Goldberg, Oracle Founder and EVP.
Next Technik was advised by Blank Rome and Steinepreis Paganin. Oracle was advised by GTC Law Group, Herbert Smith Freehills (led by Rebecca Maslen-Stannage) and Morgan Lewis & Bockius (led by Steve Browne).
Whitehaven Coal, an emerging company in the coal mining industry, agreed to acquire Daunia and Blackwater coal mines from BHP, an Anglo-Australian multinational mining and petroleum company, and Mitsubishi Development, a holding company of Mitsubishi's mineral resources investments in Australia, for $4.1bn.
"This is a compelling transaction for Whitehaven that accelerates our strategy, transforms our company and delivers substantial value for our shareholders. This transformational acquisition will pivot our portfolio towards metallurgical coal, which has been a core pillar of our strategy for many years making this a better balanced business. Our thermal coal business remains strategically important as we continue to provide much-needed coal products to support the global energy transition and as customers seek our high-quality and high-CV products to limit their emissions," Paul Flynn, Whitehaven CEO & Managing Director.
Debt financing is provided by Bank of America and Jefferies & Company. Mitsubishi Development is advised by Rothschild & Co.
Mirvac Group and Pacific Equity Partners agreed to acquire Serenitas, a pure-play land lease operator, with an established and proven national platform, from GIC, a private equity firm, for $643m.
"We are excited at the opportunity to join with Mirvac and PEP, and we are thrilled to be able to grow and elevate the Serenitas portfolio of brands and lifestyle experiences for our customers. There is certainly a growing awareness of modern land lease communities across Australia and the benefits available to customers, which will no doubt drive future demand," Rob Nichols, Serenitas CEO.
Mirvac Group is advised by Rothschild & Co. Serenitas is advised by Baker McKenzie (led by Lance Sacks).
Carrefour and Chinese conglomerate Suning in legal battle over China stores.
Carrefour is locked in a legal battle with Chinese conglomerate Suning over payment for a deal to acquire the French retailer’s stores in China, which are in crisis after the pandemic gutted the business in the country, FT reported.
Suning has been ordered by a court in Hong Kong to pay Carrefour more than CNY1bn ($134m) as part of a 2019 deal to buy the French food retailer’s Chinese outlets, Carrefour chief financial officer Matthieu Malige said. Suning, the Alibaba-backed owner of Italian football club Inter Milan, bought an 80% stake in Carrefour’s China business in 2019 for CNY4.8bn ($656m) at the tail-end of a debt-fuelled dealmaking spree.
Private equity firm integral aims for fund of $3bn after Tokyo IPO. (FS)
Integral looks to accelerate growth by leveraging funds raised in its initial public offering last month, a rare public listing for a Japanese private equity firm. It aims to launch a fund of about $3.3bn in four or five years, Bloomberg reported.
Tokyo-based Integral plans to plow the IPO proceeds directly into its own funds, which it hopes in turn will help attract more outside investors and also provide portfolio companies a better sense of security, according to Reijiro Yamamoto, the firm’s representative director.
Quadria Capital hits first close of Asia healthcare fund at $500m, secures 60% of target. (FS)
Quadria Capital, one of Asia's largest healthcare-focused private equity firms, has secured approximately $500m in the first close of its third fund, DealStreetAsia reported.
The capital raised represents over 60% of the vehicle's target size of $800m, and the focus remains on providing growth capital to promising companies to address the need for quality, accessible, and equitable healthcare across Asia.
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