New On The Block
Dental supply maker Patterson Companies Inc (NASDAQ:PDCO) announced Thursday that it is exploring strategic options, including a sale or merger, to boost shareholder value. The company disclosed the deal process as part of its second-quarter financial report.
Updates From The Block
EasyHotel is close to being sold. A billionaire-backed firm called London & Regional Properties is bidding against a fund managed by Tristan Capital Partners. The auction process is in its final stages, according to Bloomberg.
Ubisoft Entertainment SA (OTC:UBSFF) is in talks with Tencent Holdings ADR (OTC:TCEHY) over a potential buyout. According to Reuters, the deal would allow Ubisoft’s founders, the Guillemot family, to retain control if the company goes private. This development follows a difficult year for Ubisoft, marked by staff layoffs, disappointing sales, and the closure of several studios. Ubisoft’s stock jumped 14% after news of the buyout discussions emerged, as per Benzinga Pro.
Lightspeed Commerce Inc. (NYSE:LSPD) is reorganizing. A majority of the restructuring charges will be incurred in the third quarter of fiscal 2025. The focus remains on “reducing the complexity of our business,” said Lightspeed founder and CEO Dax Dasilva said. An analyst told Payments Dive that the intent is to set Lightspeed up for a sale. JPMorgan and RBC are advising the process, according to Bloomberg.
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Off The Block
Novavax, Inc. (NASDAQ:NVAX) agreed to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk A/S (NYSE:NVO) for $200 million. The deal includes transferring assets, including a 150,000-square-foot factory and the existing workforce.
Schneider National, Inc. (NYSE:SNDR) disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately $390 million in cash, subject to adjustments. The deal also includes a separate purchase of related real estate assets for $31 million.
Renewi, a London-listed waste management company, agreed to a preliminary takeover offer from Macquarie Asset Management that values it at 700.9 million pounds ($888.8 million). Renewi had been exploring the sale of certain assets (i.e. its UK Municipal division) in order to reduce debt and focus on its core recycling business in the Netherlands, Belgium, France and Portugal.
Bankruptcy Block
Eegee's, a beloved drive-through restaurant chain founded in Tucson in 1971, has filed for Chapter 11 bankruptcy and closed five locations—four in Tucson and one in Phoenix. Despite challenges, Eegee's continues to operate over 20 locations in Tucson and Phoenix. Local media reported that the company owes significant debts, including over $1.2 million to Sysco and hundreds of thousands more to other vendors, with total liabilities ranging between $10 million and $50 million. CEO Chris Westcott cited various pressures as reasons for the restructuring, but local residents blamed 39 North Capital, Eegee's owner since 2018.
Trucking company Kal Freight filed for bankruptcy protection, saying its financial condition has been hurt by unprofitable efforts to become a vertically integrated business and a now-questionable investment in additional vehicles during the height of the Covid-19 pandemic. The closely held company also faces litigation, including foreclosure actions, according to the Wall Street Journal citing a filing Thursday in the U.S. Bankruptcy Court in Houston.
Proma Group has acquired Germany’s Recaro Automotive GmbH, enabling the company to exit bankruptcy and resume operations across Europe starting January 2025. Recaro's aftermarket seats will return to the market in January, with OEM production shifting to Italy where Proma is based. Several employees from Recaro’s Sales and Technology departments will remain in the Stuttgart area to ensure a smooth transition and customer support. Recaro’s operations in North America and Japan remain unaffected. Proma Group CEO Luca Pino praised the partnership as a blend of German industrial and Italian manufacturing excellence.
Notes From The Block
Bain & Company did a swell job putting M&A telecom trends into perspective this week. Here’s what we learned:
- Global deal value “surged” from about $24 billion in the first three quarters of 2023 to $90 billion in the same period in 2024, the firm noted. The Americas accounted for 63% of the global total.
- Financial investors are acquiring tower and fixed assets. This trend underscores confidence in digital infrastructure's business fundamentals despite headwinds.
- The $20.3 billion deal between Frontier Communications Parent, Inc. (NASDAQ:FYBR) and Verizon Communications Inc. (NYSE:VZ) is the year's largest transaction so far.
- Scale deals accounted for nearly half of global deal value year to date; infrastructure divestments accounted for 22% of deal value through the first nine months of 2024 (36% of all deal value over the past five years); mobile and fixed divestments made up about 20% during that period. For the full report, click here.
For last week’s Deal Dispatch, click here.
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