The Special Situation Report #2: 1/30 Roundup
The Special Situation Report #2: 1/30 Roundup
Including: KKR takes a ride, energy bonanza, gambling heater continues with Bally's,
Welcome to The Special Situation Report! A free weekly newsletter covering the latest in mergers and acquisitions, activist campaigns and the takeover rumor mill.
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Overview of Announced M&A Transactions
Chesapeake Energy (CHK) announces acquisition of Chief E&D Holdings; sale of Powder River Basin assets to Continental Resources (CLR) [Press Release, Investor Presentation] | Sector: Energy
Biogen (BIIB) announces sale of Bioepis Stake to Samsung Biologics (207940.KS) for $2.3bn [Biogen Press Release, Samsung Biologics Press Release] | Sector: Pharmaceuticals
Accell Group (ACCEL.AS) to be acquired by KKR for $1.8bn [Press Release, Reuters] | Sector: Consumer
Enerflex (EFX.TO) announces merger with Exterran (EXTN) in all-stock transaction; implied combined enterprise value of $1.5bn [Press Release, Investor Presentation, Webcast] | Sector: Energy
UBS Group (UBS) announces acquisition of Wealthfront for $1.4bn [Press Release] | Sector: Financials
Others
Swedencare (SECARE.ST) announces the acquisitions of NaturVet and Innovet for ~$500MM [Investor Presentation, Video] | Sector: Healthcare (Pet)
IHS Towers (IHS) expands Brazilian operations with $315mm acquisition [Press Release, Investor Presentation] | Sector: Telecommunications
ConvaTec Group (CTEC.L) announces acquisition of Triad Life Sciences for $125mm [Press Release] | Sector: Healthcare
Wheels Up (UP) announces acquisition of Air Partner (AIR.L) for $107mm [Press Release] | Sector: Industrials (Transportation)
Cazoo (CZOO) announces acquisition of brumbrum for $90mm [Press Release] | Sector: Retail / Industrials (Transportation)
CBM Bancorp (CBMB) announces sale to Rosedale Federal for $64mm [Press Release] | Sector: Financials (Banking)
Victoria’s Secret (VSCO) sells stake in China business to Regina Miracle (2199.HK) for $45mm [Press Release] | Sector: Retail
The National Security Group (NSEC) announces sale to VR Holdings for $41mm [Press Release] | Sector: Financials (Insurance)
J.P. Morgan (JPM) to acquire a stake in Viva Wallet [Press Release, Reuters] | Sector: Financials
SAP (SAP) announces acquisition of Taulia [Press Release] | Sector: Technology (Software)
BJ’s Wholesale (BJ) to bring end-to-end perishable supply chain in-house with acquisition [Press Release] | Sector: Retail / Industrials (Transportation)
WeWork (WE) announces acquisition of Common Desk [Press Release] | Sector: Real Estate
Utz Brands (UTZ) expands New York delivery capabilities with two acquisitions [Press Release] | Sector: Consumer
NEC Corp (6701.T) announces acquisition of Blue Danube Systems [Press Release] | Sector: Technology / Telecommunications
Developments in Shareholder Activism
Quick hitters:
We previously noted that Trian was building a stake in Unilever (UL). Per the New York Post, changes are already being made (Article)
Maguire Investment delivers open letter to shareholders of Yatra Online (YTRA) criticizing governance and performance (Press Release)
Previously rebuked, Alden nominates its own candidates to the board of Lee Enterprises (LEE) (Press Release, Letter)
Catalyst Biosciences (CBIO) receives a letter from Julian Singer urging Board and governance changes (Filing)
Hedge fund Driver Management delivers another letter to Codorus Valley Bancorp (CVLY) after previously pushing a sale
Edenbrook Capital increased its position in ServiceSource (SREV) to 21% (Filing)
VOSS Capital continues to tango with Griffon Corp. (GFF)
Peloton’s (PTON) recent poor performance has awoken an activist:
The Takeover Rumor Mill
Quick hitters:
Ecovyst (ECVT) is working with Goldman Sachs (GS) to explore a sale, Dealreporter says (The Fly)
Centene (CNC) fielded potential takeover interest from Cigna (CI) in recent months (Bloomberg)
Lionsgate (LGF-A) exploring a deal for STX Entertainment (Variety)
Some Playtech (PTEC.L) investors support Aristocrat (ALL.AX) takeover, JPMorgan (JPM) forecasts deal collapse (Article)
Walgreens (WBA) is said to kick off Boots sale as Sycamore joins fray (Bloomberg)
Icahn acts to remove regulatory roadblocks in Southwest Gas (SWX) offer (Bloomberg)
Kering (KER.PA) is shedding its watch division – could it finally be time for a tie-up with Richemont (CFR.SW)?
Shipper MSC wants lead role in deal for ITA Airways (Reuters)
Tencent (0700.HK) plans to take DouYu (DOYU) private, sources say (Reuters)
Rumblings on Robinhood (HOOD) percolate after recent poor performance
Bally’s received an unsolicited proposal from Standard General:
As you know, Standard General is the largest stockholder of Bally’s with an equity interest representing more than 20% of the outstanding shares. As a result of our long-term involvement with the Company and its predecessor, we have a detailed understanding of Bally’s, its business and assets, which will enable us to move quickly to finalize a transaction. We intend to fund the transaction through sale and lease back and other long-term financing arrangements.
Here is more on the proposed takeover via CNBC: Bally’s chairman on proposed takeover.
Last week we discussed Kohl’s (KSS) and the involvement of Macellum Advisors and Starboard Value. Subsequently Sycamore Partners emerged as an interested party:
The discussion continues on gaming M&A:
That’s all for this week - we will be back next Sunday. As mentioned from the jump, please sign up. Feedback is welcome in the comments, or on Twitter @InvestedComms.