EMEA
A row over who is in charge at Ray-Ban maker EssilorLuxottica could drag on for two years or more after the recently merged group’s executive chairman filed an arbitration request after alleged violations of a power-sharing agreement.
French lenses producer Essilor and Italian frame manufacturer Luxottica merged last October, creating the world’s largest eyewear maker in a €54bn ($61bn) deal.
The two groups were supposed to have equal weighting in the combined company’s leadership under an agreement which expires in 2021, but they now accuse each other of trying to gain the upper hand.
Luxottica was advised by Deutsche Bank, UBS, Bonelli Erede, Mediobanca, D.F. King & Co, Bredin Prat, Chiomenti, Cravath Swaine & Moore, and Barabino & Partners. Essilor was advised by BNP Paribas, Citigroup, Rothschild & Co, Cleary Gottlieb Steen & Hamilton, Barbosa Mussnich & Aragao, CMS, Jones Day, Blake Cassels & Graydon, D.F. King & Co, and Bredin Prat.
The Universidad Alfonso X El Sabio (UAX), one of the principal private education institutions in Spain and the oldest in its field, has announced today its partnership with the investment advisory firm CVC to build a new international leader in the higher education sector. Financial terms were not disclosed.
Established in 1994, UAX has a proven track record of success and offers a wide array of higher education options: 49-degree courses and 46 postgraduate and master programmes. The university specializes in academic development with a particular focus on the education of professionals destined for the corporate world, thanks to its 8.8k agreements with companies, institutions, associations, and individuals. It currently has 8.5k students enrolled and an alumni community of over 37k graduates. UAX is recognized for its healthcare training with three healthcare centers, a veterinary hospital that is renowned Europe-wide, an innovative Virtual Simulation Hospital and a premium campus spanning over 1m m2.
The three commissioners running Alitalia are putting pressure on Ferrovie dello Stato to present a rescue plan for the troubled airline but are willing to allow it more time.
Alitalia was put under particular administration in 2017 after workers rejected its most recent rescue plan. State-owned Ferrovie, which said last year it was interested in Alitalia, is racing to meet an end of March deadline set by Rome to present a business plan for the troubled carrier.
Ferrovie, which has been spearheading the rescue efforts, is looking to create a transport consortium to offer consumers a one-stop shop for travel inside and outside Italy.
“A deadline extension for Ferrovie could only be very short... we are talking about weeks, not months,” Alitalia Special Commissioner Daniele Discepolo said during the hearing.
Ferrovie was advised by Cleary Gottlieb Steen & Hamilton.
Singapore Technologies Engineering acquired a 100% ownership in Newtec Group, an established Belgium-based company in the satellite communications (satcom) industry for €250m ($281m).
The proposed acquisition of Newtec will add intellectual property, products, and market access. ST Engineering will continue to invest in Newtec in Belgium to position it to be the Group’s European center for the satcom business. The complementary and synergistic effect of this proposed acquisition will enable ST Engineering to meet demand across the full spectrum of the satcom market.
“This proposed acquisition expands our satcom business in a meaningful way in an attractive industry that is high-tech and high-growth, driving connectivity advances in a world where 5G and satcom converge. It aligns with our strategy to invest in businesses that help accelerate our growth trajectory, especially in Smart City, to deliver long-term shareholder value.” Vincent Chong, ST Engineering President & CEO.
Impilo has acquired a majority holding in The Fertility Partnership, one of the leading European providers of fertility services, ultrasound pregnancy scans and hormone treatments with activities in the UK and Poland. Financial terms were not disclosed.
The group comprises 8 IVF clinics in the UK, which in turn are supported by a network of 27 satellites, thus enabling local patient care; 2 IVF clinics in Poland, the leading independent provider of ultrasound services through a network of 88 ultrasound across the UK; and a nascent hormone treatment business.
"The IVF market is growing, and we see great potential in strengthening TFP’s position in both the UK and Poland and establishing a strong foothold in other European countries,” Hans-Christian Bødker Jensen, Impilo Partner.
ABN AMRO has sold 75% of its shares in Stater to Infosys.
Stater is ABN AMRO’s administrative mortgage services provider, providing services for over 1.3m mortgage loans to more than 30 mortgage providers in the Dutch market. Infosys is an IT and business services provider that operates worldwide and is already active as a provider of administrative mortgage services in other countries.
Retaining a 25% interest in Stater, ABN AMRO will continue to be a strategic shareholder. Christian Bornfeld, member of the Executive Board of ABN AMRO: “While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity. That’s why we are very pleased with Infosys as Stater’s new majority shareholder. ABN AMRO will keep a strategic interest of 25% and will continue to be an important client to Stater.”
Erwin Dreuning, Managing Director of Stater: “We are eager to welcome Infosys as a new shareholder. As they are already active in mortgage administration services, Infosys offers specific expertise. The combined forces of ABN AMRO, Infosys and Stater ensure we have a solid basis to pursue our plans for further development of our service offering. Furthermore, it opens up opportunities for us to grow and service other clients.”
China Synergy Fund, co-managed by CICC Capital and TPG, has acquired Electropoli, a leading provider of surface treatment services in Europe, notably for the automotive industry. Financial terms were not disclosed.
Headquartered in France, Electropoli has successfully developed into a pan-European company, benefitting from a strong technology and industrial process know-how. The company operates seven manufacturing sites in France, the Czech Republic and Poland and one R&D center based in France. Electropoli serves the premium segment of the automotive industry as well as the aerospace and energy industries with a comprehensive range of metal treatment products and services.
"As a partner of Trail, we will allow successful European companies to grow into China with the benefit of CICC's vast investment banking resources and strong experience as a leading private equity manager. China Synergy Fund is well-positioned to help transform small and mid-size European companies into global champions with strong operational presence in China." Ding Wei, CICC Capital CEO.
NORD Holding acquired a majority stake Zentrum Gesundheit, a German group of ophthalmic surgery and diagnostic centers. Financial terms were not disclosed.
The team of medical practitioners led by Dr. Claudia Lanzrath, Dr. Andreas Knecht and Dieter Hagedorn will stay in their roles and remain invested in the company. This lays the foundations for further growth and best patient care with consistently high-quality standards.
“The high level of medical expertise in conjunction with close proximity to patients and the professionally developed structures of Zentrum Gesundheit impressed us right away. We see great potential to complement these advantages regionally and are looking forward to the next steps,” Ronald Grott, NORD Holding Member of the Investment Committee.
Deutsche Bank denies raising €10bn for Commerzbank merger.
Financial Times reported Deutsche Bank is discussing plans to raise as much as €10bn ($11.2bn) in fresh equity as part of a potential merger with Commerzbank, a move designed to end the debate over whether Germany’s largest lender has enough capital.
Executives have been considering a plan to raise between €3bn ($3.4bn) and €10bn ($11.2bn) of extra capital in their initial deal discussions. However, Deutsche made the statement after that Deutsche was discussing raising as much as €10bn ($11.2bn) in fresh equity as part of merger discussions.
Vortex Energy completes the sale of 49% stake in a 998 MW wind energy portfolio.
Vortex Energy, a European renewable energy platform managed by the private equity arm of EFG Hermes, has completed the sale of a 49% stake in its Pan-European operational wind power portfolio managed and co-owned by EDPR, to institutional investors.
The portfolio includes 56 operational wind farms with a gross capacity of 998 MW spread across Spain, France, Portugal, and Belgium. Vortex Energy has launched four years ago and has grown to become a prominent renewable energy-focused investment manager in Europe and the UK with an 822 MW solar and wind portfolio and combined executed transactions more than €2.4bn ($2.7bn).
AMERICAS
ZF Friedrichshafen, a privately held global leader in driveline and chassis technologies, acquired WABCO, a leading global supplier of technologies and services for $136.50 per share in cash. The acquisition price represents a 13% premium to the closing stock price of $120.75 on February 26, 2019, the date before media reports and WABCO’s confirmation that ZF had approached the company.
The transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining WABCO’s capabilities in commercial vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF’s leading position in driveline and chassis technologies for cars and commercial vehicles.
“This is the right combination at the right price at the right time for WABCO. We have a history of successful collaboration with ZF, including prototyping industry-first technologies, and the strategic fit between our two companies is compelling. After a thorough review, we are very pleased to announce a definitive agreement that we believe is in the best interest of WABCO shareholders.” Jacques Esculier, WABCO Chairman and CEO.
WABCO is advised by Goldman Sachs, Skadden Arps Slate Meagher & Flom, and Kekst & Company. ZF Friedrichshafen is advised by JP Morgan, Lazard, and Latham & Watkins.
Deutsche Telekom is still confident of winning the approval of US regulators for US unit T-Mobile’s $26bn deal to take over Sprint, CEO Tim Hoettges said.
“I think this deal is good for America and that we, at the end of the day, will win approval for the transaction,” Hoettges told the German company’s annual general meeting.
Sprint is advised by Centerview Partners, JP Morgan, Mizuho Securities, SMBC Nikko, The Raine Group, Goodwin Procter, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. Deutsche Telekom is advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, DLA Piper, Hogan Lovells, Latham & Watkins, Richards Layton and Finger, and Wachtell Lipton Rosen & Katz. Softbank is advised by Morrison & Foerster.
ClearCourse Partnership, a group of innovative technology companies providing membership software and services, acquired Circdata, a leading provider of event technology. Financial terms were not disclosed.
“We are delighted to announce the addition of Circdata to the Partnership. Our mission is to foster talent and innovation in the membership software space, supporting the growth and development of dynamic tech companies through the provision of both capital and operational resource. Circdata’s addition to the group will create several operational and market synergies with our existing companies.” Gerry Gualtieri, ClearCourse CEO.
Nexxus has fully divested from Harmon Hall Holding, a portfolio company from Nexxus Capital Private Equity Fund III.
Harmon Hall is an English language teaching institution in Mexico with more than 51 years of experience and 105 schools in operation, making it the most extensive school network nationwide. Of all Harmon Hall schools, 76 are owned, and 29 are franchised.
The Company has been acquired by Talisis, a subsidiary from Grupo Topaz, a strategic investor with experience in the educational sector. 414 Capital and Ibis Capital advised the Company and its shareholders on the transaction.
Maven led the MBO of CMS Window System (CMS), a leading end-to-end provider of premium window and door solutions, and one of Scotland’s fastest growing manufacturing businesses. Financial terms were not disclosed.
CMS specializes in designing, manufacturing and installing energy-efficient and environmentally friendly products, including PVCu and aluminium windows, doors and curtain walling systems. Established in 2006, CMS operates from its 15-acre, state-of-the-art, headquarters in North Lanarkshire with an additional door manufacturing facility in Fife.
“CMS is one of the leading manufacturers and installers for window and door solutions in the UK, and we are delighted to add this ambitious business to our growing portfolio. The transaction demonstrates our aim to support management buyouts in some of the most impressive and entrepreneurial businesses in the lower-mid market. CMS has experienced year on year growth and is managed by an impressive management team with significant experience of the sector. The company has also invested heavily in its two manufacturing facilities ensuring that there is sufficient spare capacity to fulfil its undoubted growth potential.” Andrew Craig, Maven Partner.
Riverside appoints new Managing Partner. (FS, People)
Private equity firm The Riverside Company has promoted Karsten Langer to Managing Partner for the Riverside Europe Fund (REF). Langer will lead the management of 30 professionals across Europe as Riverside continues to look for internationally growing entrepreneurial companies.
“Karsten’s track record at Riverside is incredibly impressive. He was in charge of portfolio companies including HRA Pharma, MEC3, DPA Microphones and Euromed, all companies that grew under our ownership. We’re thrilled to have him lead the next generation of our Europe fund.” Stewart Kohl, Riverside Co-CEO.
Ardian in talks to sell a stake in Indigo to Mirova and MEAG.
Ardian, is in exclusive negotiation with Mirova (Natixis Group) to sell its c.50% stake in Indigo Group, the world-leading car parking & individual mobility group. Mirova would acquire a c.35% share, alongside MEAG (c.15%) the asset manager of Munich Re and ERGO. Financial terms were not disclosed. Crédit Agricole Assurances will retain its stake, with the remaining shares being held by the Group’s management and employees.
“We are proud to have supported Indigo’s management team, who have created an innovative company which has become a leading player in Europe and the Americas. Their entrepreneurial talent has significantly contributed to the group’s growth as well as its positioning as an individual mobility leader through digital innovation.” Laurent Fayollas, Ardian Infrastructure Senior Managing Director.
MEAG was advised by LEK, Clifford Chance, MunichRe, Arcadis, EY, and Operis. Indigo was advised by Scotto Partners.
Lyft raises its IPO target to $2.2bn.
Lyft raised the price range of its initial public offering set, adding to what is set to be the most prominent listing of the year so far.
The second-largest ride-hailing company in the US is aiming to sell 31m shares at $70 to $72 each to raise as much as $2.2bn. Lyft had been marketing the shares at $62 to $68 a piece.
Advent International eyes $20bn fund.
Advent International has told an LP its ninth flagship fund will have a $20bn hard cap, which would mark a significant step-up from a predecessor that raised $13bn in 2016. It was previously reported that the fund would seek between $15bn and $17.5bn.
US pension fund CalSTRS gathers $510m to Asia-focused funds in H2.
US pension fund California State Teachers’ Retirement System (CalSTRS) has made $510-m in private equity, venture capital, and co-investment commitments to Asia-focused funds in the second half of 2018.
APAC
Japan Exchange Group, the owner of the Tokyo Stock Exchange, made a tender offer to acquire all the shares of the Tokyo Commodity Exchange, to create an all-in-one course that would attract more international traders and investors. Financial terms were not disclosed.
Japan Exchange Group aim to invigorate commodity markets by facilitating inflows from financial institutions, such as securities companies, banks, and other global investors, whose participation is currently limited.
Chinese developer raises $955m in a share sale.
China Vanke sold HK$7.8bn ($995m) of shares to pay down overseas debt, highlighting the potential for a wave of equity raising by Chinese developers.
The sale at HK$29.68 ($3.8) per share represented a 5% discount to the closing price.
Chinese gaming Beijing Kunlun Tech looks to sell Grindr, due to US security concerns.
Chinese gaming company Beijing Kunlun Tech is seeking to sell Grindr, the popular gay dating app it has owned since 2016, after a US government national security panel raised concerns about its ownership.
The Committee on Foreign Investment in the United States (CFIUS) has informed Kunlun that its ownership of West Hollywood, California-based Grindr constitutes a national security risk, Reuters reported.
CFIUS’ specific concerns and whether any attempt was made to mitigate them could not be learned. The United States has been increasingly scrutinizing app developers over the safety of personal data they handle, especially if some of it involves US military or intelligence personnel.
Tencent leads $297m Series D funding for big data startup Mininglamp.
Chinese internet giant Tencent has led a 2bn yuan ($297m) Series D funding round for Beijing-based prominent data solutions provider MiningLamp.
In a statement, MiningLamp said the funding round was also joined by Huaxing Growth Capital, the investment unit of Chinese investment bank China Renaissance, property trust manager AVIC Trust, and an undisclosed investment firm based in Beijing.
It was the second time in less than a year that Tencent has invested in the prominent data solutions provider. In April 2018, Tencent also co-ed a $159-m Series C funding for MiningLamp. The fresh funding will be used to finance the Chinese firm’s efforts to become the country’s one-stop enterprise-level AI product and service platform, according to its founder and chairman Minghui Wu. Established in April 2014, MiningLamp, also known as Minglue Shuju, specializes in big data business solutions.
Anhui Conch Cement and Taiheiyo Cement bidding for Holcim Philippines.
China’s Anhui Conch Cement and Japan’s Taiheiyo Cement have been invited to the next round of bidding for LafargeHolcim listed Philippines unit. The Philippine tycoon, Ramon Ang’s Eagle Cement, has also been selected for the next round.
Holcim Philippines has also attracted interest from China Resources Cement Holdings and Hongshi Group. Europe’s biggest cement maker is exploring the divestment as part of a broader strategic review of its Southeast Asia operations following the sale of its Indonesian business.
Carlyle to partially sell a stake through the Metropolis IPO. (FS)
American private equity firm The Carlyle Group will sell some of its stake in diagnostics chain Metropolis Healthcare in the latter’s IPO that opens on 3 April.
The Metropolis IPO is a real offer for sale of 13.685m shares, including a sale of up to 6.272m shares by promoter Sushil Shah, besides another 7.412 m stocks by CA Lotus Investments, an entity managed by Carlyle.
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