September
Deals List

Private equity activity in Europe remained strong through the summer, with particular focus on investments in healthcare and technology, continuing a trend that had gained momentum during the COVID-19 pandemic. After a modest tapering of deal-making in August (which nevertheless remained busy compared with prior years) there were 46 European buyouts and exits with a total disclosed deal value of almost £15bn in the first two weeks of September alone, according to Mergermarket data. An important driver of this fast-paced environment has been historically low interest rates, another consequence of the global pandemic. With signs that central bankers might soon raise interest rates, the pace of deal activity is likely to speed up even further, as investment firms and other players seek to complete their investment before they become more expensive to carry out¹. One of the few casualties in the buoyant market seems to be interest in SPACs, which has noticeably cooled, despite dominating headlines on both sides of the Atlantic earlier this year.

US private equity firm Advent International and Singapore’s sovereign wealth fund GIC teamed up for a SEK69.58bn bid for biotech company Swedish Orphan Biovitrium (Sobi), in one of the largest buyouts of a European healthcare sector in recent years. Sobi’s board has recommended the offer, which is conditional on the bidding company gaining more than 90% of shares. Investor AB, the investment vehicle of the Wallenberg family, is Sobi’s biggest shareholder with a 35% stake and has also expressed support for the deal. Advent and GIC have argued that Stockholm-listed Sobi, which develops treatments for rare conditions such as haemophilia, would benefit from private ownership because it needs substantial investment to develop new drugs. The deal underscores a continued appetite among private equity firms for exposure to the healthcare sector, following the buyouts of UDG Healthcare, an Ireland-based provider of pharmaceutical-related services, and US medical supplies company Medline Industries.

The Wellcome Trust and investment firms General Catalyst Partners, Novator Partners and Stefnir have agreed to sell Verne Global, an Iceland-based data centre platform, to Digital 9 Infrastructure (D9), a UK investment trust with a focus on digital infrastructure assets. The acquisition of Verne Global, which operates a 40-acre data centre campus in Keflavik, Iceland, that is 100% powered by local renewable sources, complements D9’s recent investment in Acqua Comms, a subsea cable provider. The investment trust’s strategy is to participate in the decarbonisation of digital infrastructure by increasing access to data centres in areas with an abundance of clean energy supply.

Apax Partners and Warburg Pincus agreed to buy Dutch telecoms group T-Mobile Netherlands from Deutsche Telekom and Tele2 at a valuation of €5.1bn. T-Mobile, which operates four brands – T-Mobile, Tele2, Ben and Simpel – has become the leading mobile network operator in the Netherlands and the first to offer unlimited and nationwide 5G. Under its new ownership, T-Mobile will become an independent Dutch company, with Apax and Warburg Pincus planning to support its focus on innovation while increasing its already impressive customer base.

Perrigo Company, an Ireland-based healthcare and pharmaceutical company, has agreed to acquire Héra SAS (HRA Pharma) from French private equity firm Astorg Partners and US investment firm Goldman Sachs Asset Management for €1.8bn. Under the terms of the deal, HRA Pharma, a consumer healthcare provider, based in France and specialising in over-the-counter products in areas including women’s health and skincare, will continue to operate independently under Perrigo’s ownership and retain its existing management team. The deal is expected to close before the second half of 2022.

US-based investment firm KKR has agreed to acquire Ocean Yield, an Oslo-listed ship owner with investments in oil services and industrial shipping. Ocean Yield’s board has recommended the offer at NOK 41.00 per share, while Norway’s Aker ASA, the company’s largest shareholder with a 61.65% stake held through subsidiary Aker Capital, has irrevocably undertaken to accept the offer. KKR believes Ocean Yield will have better access to capital as a private company, helping address the long-term investment needs that the move to decarbonisation is placing on the shipping sector. The transaction is expected to close in the fourth quarter of 2021.