Random Ramblings
Some notes to kick off your Monday:
• One track mind: Today's big deal is that TPG Capital has agreed to sell generic drugmaker Par Pharmaceuticals for $8.05 billion to Endo Pharmaceuticals. The deal includes around $6.5 billion in cash, $1.55 billion in stock and the assumption of debt. Not too shabby, given that TPG paid less than $2 billion to take Par private in July 2012.
Par had filed for an IPO on April 20, and issued an amended filing just last week. My understanding is that TPG always intended to take the company public, and didn't really run a dual process. Instead, Endo was the pursuer, first reaching out more than a year ago and then getting more aggressive within the past several weeks (particularly once its bid for Salix was rejected).
• Let’s try that again: The Carlyle Group is planning to reopen its Silicon Valley office. This comes more than six years after Carlyle closed the outpost as part of broader layoffs and office closures related to the financial crisis. And that was just one year after Carlyle had opened its Silicon Valley office in the first place. Correcting past mistakes or a concrete bubble indicator? Or both?
• Update: Yes, that Avon Products filing remains on the SEC's website (and, for some reason, Avon itself hasn't entered its disavowing statement into EDGAR, which would at least bump the phony 'takeover offer' down a leg). But at least the FBI is beginning to investigate. Good thing too, because it seems the SEC didn't lift an investigatory finger when this same scam was run on a different company three years ago.
• It's about time: The NY Times reported on Friday that Cerberus Capital Management has finally provided limited partners with a way to exit their exposure in Remington Outdoors (f.k.a. Freedom Group), the firearms manufacturer whose products have been used in such mass shootings as the Sandy Hook Elementary massacre.
Cerberus reportedly will put Remington into a special-purpose vehicle, with LPs allowed to either retain their position or sell it back to the SPV. It's not yet clear how the SPV will afford to buy back positions in Remington Outdoors (valued at $880m, after a rough 16 months). Cerberus at one point had floated the idea of firm founder Steve Feinberg buying the company himself, and then there was a failed effort to secure a credit facility that would have bankrolled voluntary LP exits.
THE BIG DEAL
• Endo International PLC (Nasdaq: ENDP) has agreed to acquire Par Pharmaceutical Holdings Inc., a Chestnut Ridge, N.Y.-based generic drugmaker, from TPG Capital for $8.05 billion (including assumption of debt).
Par recently filed for an IPO, in which is reported a $105 million net loss in both 2013 and 2014 (revenue climbed from $1.1 billion to $1.3 billion in that time period). Adjusted EBITDA grew from $77 million to $131 million between Q1 2014 and Q1 2015, while the company also swung to profitability. Read more.
VENTURE CAPITAL DEALS
• Telogis Inc., an Aliso Viejo, Calif.-based provider of cloud-based software solutions for companies with mobile assets, has raised $25 million in new VC funding, according to a regulatory filing. Existing backers include Fontinalis Partners and Kleiner Perkins Caufield & Byers. www.telogis.com
• Drizly, a Boston-based on-demand shopping platform for alcoholic beverages, has raised $13 million in Series A funding. Polaris Partners led the round, and was joined by First Beverage Group. www.drizly.com
• DVTEL Inc., a Ridgefield Park, N.J.-based provider of video surveillance solutions, has raised $9 million in new equity funding from Seacoast Capital and EGIS Capital Partners. www.dvtel.com
• YCharts, a Chicago-based financial markets analytics site, has raised around $6 million in Series C funding. Morningstar led the round, and was joined by Reed Elsevier Ventures, I2A, Amicus Capital Partners and Hyde Park Angels. www.ycharts.com
• Abcodia, a UK-based developer of diagnostics for early detection of ovarian cancer, has raised £5.25 million in new VC funding. Cambridge Innovation Capital and Scottish Equity Partners co-led the round, and were joined by return backers Albion Ventures and UCL Business. www.abcodia.com
• Decorist, a San Francisco-based interior designer platform, has raised $4.5 million in new VC funding. Backers include Lowe’s Companies and the Women’s Venture Capital Fund and angel investors. www.decorist.com
• AllSeated, a provider of event planning and collaboration tools, has raised an undisclosed amount of VC funding from Israel’s Magma Venture Partners. www.allseated.com
• Taboola, an Israel-based content recommendation startup, has raised an undisclosed amount of strategic funding from Baidu (Nasdaq: BIDU). This follows up on Taboola’s recent $117 million Series E round led by Fidelity Investments. Other shareholders include Comcast Ventures, Marker, Steadfast Capital, Groupe Arnault, Yahoo Japan, Advance Publications and Carlo De Benedetti. Read more.
PRIVATE EQUITY DEALS
• Audax Group has acquired TPC Wire & Cable Corp., a Macedonia, Ohio-based maker of wire, cable and connectors used in harsh industrial applications, from Pfingsten Partners. www.audaxgroup.com
• Leonard Green & Partners last year acquired 990,000 shares in Bed Bath & Beyond Inc. (Nasdaq: BBBY), giving it around one-half of a 1% stake in the retailer, per a regulatory filing. Read more.
• Metalmark Capital has completed its previously-announced acquisition of a majority stake in Kissner Milling Company Ltd., an Ontario-based provider of bulk rock salt and packaged specialty deicing product in North America, from an investor group led by TorQuest Partners. Joining Metalmark on the deal was Silvertree, a joint venture between Silverhawk Capital Partners and Demetree Salt LLC. No financial terms were disclosed. www.kissner.com
• Palatine Private Equity has sponsored a £13 million management buyout of The Alchemist, a Manchester, England-based bar and restaurant brand. www.palatinepe.com
• SAFEBuilt, a Loveland, Colo.–based provider of community development services for local governments and public agencies, has acquired Independent Inspections Inc., a provider of outsourced building department services for local governments in Wisconsin, Illinois and Florida. No financial terms were disclosed. SAFEBuilt is a portfolio company of The Riverside Company. www.safebuilt.com
• Warburg Pincus has completed its previously-announced acquisition of a majority stake in Sterigenics International, a Deerfield, Ill.-based provider of outsourced contract sterilization services, from GTCR. The deal was referred to as a recap, with GTCR retaining a minority position. No financial terms were disclosed, but Reuters previously put the enterprise value north of $2 billion (including debt). Goldman Sachs and Jefferies managed the process. www.sterigenics.com
• Warburg Pincus has received several bids for its stake in Dutch packaging business Clondalkin, according to Bloomberg. Suitors making it to the auction’s second round include Platinum Equity, Triton Partners and Coveris (owned by Sun Capital Partners). Read more.
IPOs
• Cynapsus Therapeutics Inc., a Toronto-based maker of drugs to treat Parkinson’s disease, has filed for a $60 million IPO. It plans to trade on the Nasdaq and continue to trade on the TSX under ticker symbol CTH. BofA Merrill Lynch is serving as lead underwriter. www.cynapsus.ca
EXITS
• KKR has agreed to sell its 46% control stake in China Rundong Auto Group Ltd. (HK: 1365), a Chinese luxury auto dealer, to Greenland Holding Group Company Ltd. (HK: 337) for HK$1.5 billion (US$193 million). Read more.
• Sizmek (Nasdaq: SZMK) has acquired StrikeAd, a New York–based mobile advertising demand-side platform. The deal is valued at around $11.7 million. StrikeAd raised a $7 million VC round in 2013 from firms like DFJ Esprit, Canyon Creek Capital, Karlin Ventures, Scentan Ventures, SoftTechVC, TenOneTen Ventures and Wavemaker Partners. www.strikead.com
OTHER DEALS
• Addiction Campuses, a Brentwood, Tenn.-based operator of behavioral healthcare campuses, has acquired Recovery Now Network, a Tampa, Fla.–based marketing and business development firm. No financial terms were disclosed. Addiction Campuses last year raised $3.8 million in Series A funding from Fulcrum Equity Partners and Harpeth Ventures. www.addictioncampus.com
• Ascena Retail Group (Nasdaq: ASNA) has agreed to acquire apparel retailer Ann Inc. (NYXE: ANN) for around $2.16 billion. Read more.
• Apple (Nasdaq: AAPL) has acquired GPS startup Coherent Navigation for an undisclosed amount. Read more.
• Cortendo (OTC: NO: CORT), a Swedish drug company focused on rare endocrine disorders, has raised $33.21 million via a private placement led by existing investor TVM Capital. The company also has agreed to acquire a somatostatin analog from Aspireo Pharmaceuticals for around $30 million in stock. www.cortendo.com
• Intel (Nasdaq: INTC) and Altera Corp. (Nasdaq: ALTR) have restarted merger talks, according to the NY Post. A deal could be valued at around $13 billion. Read more.
FIRMS & FUNDS
• Danske Private Equity of Denmark has held a €603 million close on its sixth fund, which is targeting a total of €650 million. www.dvpvc.com
• Intrepid Financial Partners has been launched by former Barclays executive Hugh “Skip” McGee, as a merchant bank focused on energy and power companies. Read more.
MOVING IN, UP, ON & OUT
• Charles Fleischmann has joined private equity firm Trilantic North America as a New York-based partner, with a focus on investments in the services and light industrials sectors. He previously was a principal with Investcorp International. www.trilantic.com
• Peter Flint has joined executive search firm JM Search as a partner. He previously spent 11 years with Polaris Partners, where he will remain a venture partner and board member with portfolio companies BlackArrow, JIBE, Adcade, Localytics, and Quantcast. www.jmsearch.com
• GMT Communications Partners, a European private equity firm, has promoted Jean-Sébastien Talbot to principal. He joined the firm in July 2008 from XAnge. www.gmtpartners.com
• Christina Park is stepping down as a managing director of leveraged finance at Barclays, in order to join Nomura Holdings in the U.S., according to Reuters. Read more.
• Melissa Taunton has joined New Enterprise Associates as a partner focused on talent. She previously was with Khosla Ventures. www.nea.com
• William Blair & Co. has named Jonathan Skinner as head of technology investment banking. Skinner has been with William Blair since 2008 and succeeds Robert Metzger, who is retiring at year-end to become a faculty member at the University of Illinois at Urbana-Champaign and a director of the school’s Investment Banking Academy. www.williamblair.com
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