The logo of General Electric is pictured at the 26th World Gas Conference in Paris, France, June 2, 2015.BENOIT TESSIER/Reuters
While the world worries about Greece, the Daily Deal Roundup is worried about keeping you informed about the deals of today. The banks are indeed open and willing to underwrite some blockbusters, including our deal of the day – Element's announced acquisition of GE Capital's fleet operations in the U.S., Mexico, Australia and New Zealand.
DEAL OF THE DAY: Element Financial Corp. set to acquire GE Capital fleet operations assets
The $8.6-billion deal to acquire GE Capital's fleet operations in the U.S., Mexico, Australia and New Zealand is not the first time Element Financial Corp. has dabbled in General Electric's assets. In 2013, Element acquired the fleet business of GE Canada for $570-million, interestingly its largest acquisition at the time. Then it raised the bar in 2014 by acquiring PHH Arval, the North American fleet management services of PHH Corporation, for $1.4-billion, which increased its total assets to $10-billion.
GE has been shedding assets for some time. Earlier this month, it signed an agreement with the Canada Pension Plan Investment Board to sell its lending business, Antares Capital, for $12-billion (U.S.). Full story:
MERGERS AND ACQUISITIONS
Tourmaline Oil Corp. to acquire junior Mapan Energy Ltd.
Alberta-based Tourmaline Oil Corp., an intermediate crude-oil and natural-gas exploration and production company, is set to acquire Alberta-based junior Mapan Energy Ltd. for $105.98-million, including the issuance of approximately 2.73 million Tourmaline shares. Press release:
Cara Operations Ltd. to acquire remaining stake in The Landing Group
Cara Operations Ltd., Canada's largest and now publicly traded full-service restaurant company, announced that it will acquire the remaining 45 per cent of The Landing Group, a Toronto-based casual restaurant business. Cara had already acquired a 55-per-cent ownership stake in the company in December, 2014. Press release:
Sysco drops merger with US Foods – and pays for it
Food distributor Sysco will be required to pay a whopping $300-million (U.S.) to bail on its planned merger with US Foods. Last week, a U.S. federal judge ruled in favour of the Federal Trade Commission when it sued the largest U.S. food-distribution company to block the deal, according to Reuters.
"After reviewing our options, including whether to appeal the court's decision, we have concluded that it's in the best interests of all our stakeholders to move on," Bill DeLaney, Sysco president and chief executive officer, said in a statement. "We believed the merger was the right strategic decision for us and we are disappointed that it did not come to fruition." Full story:
Celgene to pay for partnership with Juno Therapeutics
Celgene Corp. will pay Juno Therapeutics Inc. about $1-billion (U.S.) and form a 10-year collaboration to study cures for autoimmune diseases. Celgene will pay $150-million (U.S.) cash and buy 9.1 million of Juno's stock at $93 per share for the right to commercialize Juno's therapies around the world. Full story:
INITIAL PUBLIC OFFERINGS
Manulife seeks $421-million (U.S.) in Singapore office trust IPO
Manulife Financial Corp., Canada's largest life insurer, is seeking to raise $421-million (U.S.) in the biggest Singapore initial public offering in almost a year. Full story:
PRIVATE EQUITY AND VENTURE CAPITAL
American Achievement looks to Canada
American Achievement Corp., which operates under the Balfour brand, has agreed to buy Gaspard LP, a Canada-based provider of academic and professional attire regalia. No financial terms were disclosed for the transaction, which is expected to close next month. The acquisition is expected to be accretive to American Achievement's free cash flow within the first year of combined operations. Press release:
Amazon's Alexa Fund invests in Mojio
Amazon has launched the $100-million (U.S.) Alexa Fund, which is focused on voice-technology companies, and has announced seven initial investments, including in Vancouver-based Mojio, a developer of apps for vehicles. Blog post:
ANALYSIS AND INSIGHT
GE nearing $20-billion asset goal after Element sale
General Electric Co.'s deals to sell the bulk of its vehicle fleet-management business push the company near a goal of unloading at least $20-billion of finance assets before the quarter ends.
Along with the sale of the bulk of its fleet assets to Element Financial Corp. for $8.6-billion, GE also said Monday that it signed a provisional accord with BNP Paribas subsidiary Arval to sell the European portions of the leasing operations. Full story:
Kraft shakes up management ahead of Buffett-backed Heinz merger
Kraft announced the departure of six senior executives as the company reorganizes management ahead of a planned merger with H.J. Heinz. Kraft Chief Financial Officer James Kehoe and General Counsel Kim Rucker are among those leaving, according to a statement Monday from the companies. Full story:
Global private equity expected to grow to $7-trillion by 2020
Global private equity will expand to about $7-trillion by the end of the decade as investors seek alternatives to stocks and bonds, according to a report by consulting firm PwC. The firm further expects alternative assets to swell to $13-trillion. Managers of alternative assets pitch the investments as a way of diversifying holdings and decreasing correlation with stock and bond markets. Full story: