February
Deals List
After a strong finish to 2020, deal activity at the start of 2021 shows few signs of slowing. By the end of the third week of February, there had been no fewer than eight announced European buyouts in excess of $1 billion, according to Mergermarket. Other data, compiled by Bloomberg, indicated that early 2021 investment was moving at a record-breaking pace1Free-Spending Private Equity Firms Set Record Pace in Europe
Source: Bloomberg. While many international markets have rebounded strongly from their pandemic-induced lows, the FTSE 100 is still more than 10% below its January 2020 high point. As a result, the UK stock market is providing a fertile hunting ground for international private equity firms looking for keenly valued companies. More broadly, strong appetite from sponsors with ample capital to deploy, combined with cheap and plentiful debt from leveraged loan and high-yield markets, is fueling expectations of more large buyouts to come.
Canadian suitor GardaWorld refused to up its rival bid for G4S in late February, paving the way for the UK services firm that runs prisons and COVID-19 test centres to be acquired by U.S.-based Allied Universal in an approved take-over. The deal stands to create a privately-owned security giant with 750,000 employees and turnover of some £13.5 billion globally. Allied Universal has previously stated it intends to dispose of G4S prisons contracts, as well as immigration removal centres and offender tagging services, focusing the business more on security and facilities services.
The consortium of investors, which includes Bill Gates’ wealth manager Cascade Investment, agreed to buy Signature Aviation in a deal that values the company at over £4.4 billion. Signature – already backed by Cascade Investment – is a leading provider of aircraft services and ground handling for private jets, operating out of 370 locations in key markets including North America, Europe, South America, the Caribbean, Africa and Asia. Private aviation has withstood the impact of COVID-19 better than the broader airline industry and is expected to continue to grow as high-net-worth travelers increasingly shun commercial carriers.
Silver Lake and Nestle joined EQT to invest in IVC Evidensia, Europe’s largest veterinary business with 1,400 clinics across 11 countries, in a deal that values the group at €12.3 billion. EQT had been considering an IPO of the group it created by merging IVC with Evidensia in 2017. However, the new funding agreement enabled the Swedish private equity firm to achieve a higher valuation through a private deal, while remaining invested in the IVC Evidensia as the largest shareholder. Silver Lake brings expertise to help expand IVC Evidensia’s digital offerings including virtual consultations and online pharmacy, while the group is also seeing a boost from the rise in pet ownership as a result of lockdowns and increased working from home.
Bain and Cinven joined forces to acquire Lonza Specialty Ingredients (LSI), the Basel-based specialty chemicals arm of Swiss-listed group Lonza2Bain Capital Private Equity and Cinven enter into definitive agreements to acquire Lonza Specialty Ingredients
Source: Bain Capital. LSI is a leading provider of chemicals for microbial control solutions used to eliminate or control harmful micro-organisms, a segment going through structural growth as individuals, organizations and countries around the world look to protect against dangerous bacteria and viruses. Specialty chemicals is also an area in which both firms have existing investments – Bain through Italian group Italmatch and Cinven with French firm Chryso – giving them experience they can leverage for expanding LSI.
CVC announced an alliance with the International Volleyball Federation (FIVB), headquartered in Switzerland, for the launch of Volleyball World, a new partnership that aims to boost investment and growth in the sport by partnering with other leagues and bodies around the world3FIVB partners with CVC Capital Partners to drive global growth of volleyball
Source: CVC. Volleyball is the fourth most popular sport globally, with more than 800 million fans and high participation across markets including Brazil, China and the U.S. The deal underscores CVC’s growing interest in sport as it looks to expand and monetise fan bases around the world. Following its previous high-profile investment in Formula 1, the group has targeted European Rugby, Serie A soccer in Italy and is reported to be in talks for U.S. basketball team the San Antonio Spurs4CVC in talks to buy stake in San Antonio Spurs at $1.3bn valuation
Source: Financial Times.
Michael J. Preston
Partner
London
T: +44 20 7614 2255
mpreston@cgsh.com
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Gabriele Antonazzo
Partner
London
T: +44 20 7614 2353
gantonazzo@cgsh.com
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