The numbers are starting to trickle in on mergers and acquisitions for the first three quarters of the year – and it’s not looking pretty.
Global activity fell 11% to $2.8 trillion, according to data provider Refinitiv, the slowest pace in more than two years and the most quiet third quarter since mid-2017. Experts attribute the slide to fears of an economic slowdown sapping corporate confidence.
Refinitiv reported that M&A fees earned by Citi, Morgan Stanley, UBS and Credit Suisse are all off at least 20% year-to-date.
The energy industry has been particularly hard hit, with 25% less activity, 40% in the Americas (Occidental Petroleum’s purchase of Anadarko was an anomaly). The lack of deals is starting to result in layoffs, including 15 pink slips in the oil and gas investment banking group at Jefferies, Reuters reported last week (Jefferies didn’t respond to a request for comment). Wells Fargo had previously laid off 13 people, or 7% of its energy investment banking group in Houston, according to reports.
Still, observers continue to speculate about consolidation in the oil and gas industry, something they say is much needed to gain scale while cutting costs. Morgan Stanley analysts Devin McDermott and Drew Venker in New York came out with a report last week proposing several possible combinations due to earnings accretion and geographic overlap.
They include Exxon Mobil buying long-rumored targets Pioneer Natural Resources or Diamondback Energy; Chevron picking up Cimarex Energy; Marathon Oil merging with Devon Energy; Range Resources hooking up with fellow natural gas producer Southwestern Energy; and Bakken producers Oasis Petroleum and Whiting Petroleum pairing off.
Meanwhile, Texas lawyers were busy on the deal front last week, racking up 19 transactions valued at $8.1 billion versus 14 deals worth $6.3 billion the previous week and 13 transactions valued at $7 billion at the same time last year.
Weekly Corporate Deal Tracker Roundup Stats
A compilation of weekly stats from The Lawbook's CDT Weekly Roundup
(Deal Values in Millions)
(Deal Values in Millions)
|Week Ending||Deal Count||Amount||Firms||Lawyers||M&A Count||M&A Value $M||CapM Count||CapM Value $M|
|November 26, 2022||8||$2,266.7||8||5||3||$76||5||$2,190.7|
|November 19, 2022||21||$2,886||15||212||19||$2,550||2||$336|
|November 12, 2022||13||$15,093.7||9||81||9||$14,200||4||$893.7|
|November 5, 2022||25||19,337.2||16||509||22||$8,267.2||3||$11,070|
|October 29, 2022||15||$7,805.3||9||116||14||$7,180.3||1||$625|
|October 22, 2022||20||$8,193.5||13||253||13||$5,442||7||$2,751.5|
|October 15, 2022||9||$3,046.1||9||139||7||$2,588.3||2||$457.8|
|October 8, 2022||19||$2,011.8||12||114||16||$833.8||3||$1,178|
|October 1, 2022||23||$5,532.9||16||156||18||$4,952.3||5||$580.6|
|September 24, 2022||18||$5,194||14||216||15||$4,050||3||$1,144|
|September 17, 2022||21||$8,352.3||12||320||15||$4,759.6||6||$3,592.7|
|September 10, 2022||15||$19,853.5||10||126||13||$19,403.6||2||$450|
|September 3, 2022||9||$2,312||9||62||9||$2,312||0||0|
|August 27, 2022||16||$30,891.7||10||135||15||$30,666.4||1||227.7|
|August 20, 2022||12||$1,977||8||152||9||925||3||$1,052|
|August 13, 2022||18||$8,004.7||11||242||11||$2,844.7||7||$5,160|
|August 6, 2022||24||$7,948.9||12||240||17||$3,577||7||$4,371.9|
|July 30, 2022||8||$6,941||9||78||7||$6,839||1||$102|
|July 23, 2022||11||$801||11||92||10||$801||1||0|
|July 16, 2022||14||$3,650||10||122||14||$3,650||0||0|
|July 9, 2022||10||$3,557.7||7||68||9||$3,557.7||1||0|
|July 2, 2022||18||$8,609.4||13||152||15||$2,754.4||3||$5,855|
|June 25, 2022||15||$6,142||13||146||9||$2,017||6||$4,125|
|June 18, 2022||17||$11,890.1||14||228||15||$11,410||2||479.7|
|June 11, 2022||17||$7,600||12||123||10||$2,300||7||$5,300|
|June 4, 2022||12||$2,937||10||127||9||$692||3||$2,245|
|May 28, 2022||9||$3,197.6||11||86||9||$3,197.6||0||0|
|May 21, 2022||14||$7,284.5||12||185||11||$6,609||3||$675.5|
|May 14, 2022||11||$306.6||9||80||10||$306.6||1||$225|
|May 7, 2022||16||$10,451.75||12||108||12||$1,827||4||$8,624.75|
|April 30, 2022||16||$2,296.5||16||157||12||$895.5||4||$1,401|
|April 23, 2022||10||$2,241||11||58||8||$1641||2||$600|
|April 16, 2022||11||$6,643||7||156||8||$2,359||3||$4,284|
|April 9, 2022||17||$4,429||14||184||11||$1,690||6||$2,739|
|April 2, 2022||13||$1,755||8||84||10||$1,145||3||$610|
|March 26, 2022||11||$3,205||8||65||6||$200||5||$3,005|
|March 19, 2022||13||$2,239.17||9||106||13||$2,239.17||0||0|
|March 12, 2022||18||$12,016||11||239||15||$11,965||2||$51.35|
|March 5, 2022||17||$6,786||13||137||13||$5,161||4||$1,625|
|February 26, 2022||12||$5,095||8||149||9||$4,437.5||3||$658|
|February 19, 2022||17||$22,229||17||174||14||$21,354||3||$875|
|February 12, 2022||12||$2,344.7||10||73||8||$641.7||4||$1,703|
|February 5, 2022||11||$2,503||8||99||11||$2,503||0||0|
|January 29, 2022||11||$3,872||12||101||12||$3,872||0||0|
|January 22, 2022||13||$5,143.5||10||99||12||$4,842.5||1||$301|
|January 15, 2022||12||$7,605||9||155||9||$6,480||3||$1,025|
|January 8, 2022||13||$8,256.2||11||102||13||$8,256.2||0||0|
|January 1, 2022||9||$1,273.8||6||50||9||$1,273.8||0||0|
|December 25, 2021||21||$4,734.75||11||176||16||$3,410||5||$1,324.75|
|December 18, 2021||26||$7,325.2||15||193||18||$3,640.2||8||$3,685.2|
|December 11, 2021||16||$5,017||10||109||13||$1,417||3||$3,600|
|December 4, 2021||14||$2,310||8||86||8||$2,310||6||$1,882.05|
|November 27, 2021||9||$3.460.1||10||101||6||$1,758||3||$1,702.6|
|November 20, 2021||20||$22,792||15||157||12||$18,864.5||8||$3,928|
|November 13, 2021||21||$26,729||12||178||13||$11,822||8||$14,907|
|November 6, 2021||12||$8,303||13||157||10||$6,682||3||$1,621|
|October 30, 2021||21||$10,368||15||218||15||$9,24.4||6||$1,103.|
|October 23, 2021||21||$18.783.1||15||222||11||$12,314||10||$6,468.6|
|October 16, 2021||15||$3,868||11||118||15||$2,293||2||$1,575|
|October 9, 2021||20||$8,610||16||175||16||$7,795||4||$815|
|October 2, 2021||14||$6,250||11||137||10||$5,200||4||$1,050|
|September 25, 2021||11||$11,460||9||93||7||$10,200||4||$1,250|
|September 18, 2021||11||$16,603||8||99||8||$15,084||3||$1,519|
|September 11, 2021||17||$10,653||11||103||13||$8,503||4||$2,150|
|September 4, 2021||13||$7,222||10||89||11||$6,715||2||$507|
|August 28, 2021||12||$763||9||63||11||$663||1||$100|
|August 21, 2021||12||$29,659||7||79||11||$29,579||1||$80|
|August 14, 2021||22||$17,845||11||199||12||$12,805||10||$5,04|
|August 7, 2021||17||$13,670||12||139||15||$11,766||2||$1,904|
|July 31, 2021||21||$8,160||11||134||10||$3,574||10||$4,586|
|July 17, 2021||14||$4,009||11||124||12||$2,015||2||$1,994|
|July 10, 2021||16||$3,997||13||143||11||$1,597||4||$2,4|
|July 3, 2021||24||$7,492||13||94||16||$3,769||8||$3,722|
|June 26, 2021||10||$4,995||7||85||8||$3,847||2||$1,148|
|June 19, 2021||28||$16,830||8||228||9||$1,861||19||$14,968|
|June 12, 2021||26||$27,238||15||209||19||$25,602||7||$1,636|
|June 5, 2021||15||$15,539||13||100||13||$14,709||2||$600|
|May 29, 2021||35||$20,279||11||145||28||$18,64||7||$1,639|
|May 22, 2021||24||$53,208||14||174||17||$51,047||7||$2,161|
|May 15, 2021||18||$10,620||13||220||11||$5,870||7||$4,809|
|May 8, 2021||17||$10,400||11||156||15||$8,386||2||$2,500|
|May 1, 2021||21||$7,200||16||115||12||$3,808||9||$3,392|
|April 24, 2021||8||$20,200||9||31||8||$20,200||0||0|
|April 17, 2021||14||$6,270||8||102||11||$4,0180||3||$2,260|
|April 10, 2021||15||$8,940||13||129||14||$7,990||1||$950|
|April 3, 2021||18||$19,513||10||151||12||$16,923||6||$2,590|
|March 27, 2021||27||$13,942||15||244||14||$4,300||13||$9,633.5|
|March 20, 2021||11||$2,046||4||102||3||$270||8||$1,776|
|March 13, 2021||15||$3,270||9||109||6||$538||9||$2,732|
|March 6, 2021||24||$13,617||10||196||13||$10,395||11||$3,222|
|February 27, 2021||19||$8,105||12||139||15||$4,970||4||$3,135|
|February 20, 2021||9||$8,820||9||153||8||$8,520||1||$300|
|February 13, 2021||12||$4,852.6||7||81||7||2,766||5||$2,086.6|
|February 6, 2021||18||$9,752||13||153||14||$5,222||4||$4,530|
|January 30, 2021||18||$9,449||9||182||15||$8753.8||3||$695.3|
|January 23, 2021||14||$8,150||8||118||6||$4,000||8||$4,150|
|January 16, 2021||17||$6,783||13||138||11||$2,400||6||$4,382.9|
|January 9, 2021||22||$6,829||14||135||18||$3,139.3||4||$3,690|
|January 2, 2021||7||$1,466||7||60||7||$1,466||0||0|
|December 26, 2020||18||$15,900||12||163||16||$5,300||1||$600|
|December 19, 2020||18||$9,769||14||110||14||$8,426||4||$1,343|
|December 12, 2020||10||$7,200||9||100||9||$3,325||1||$3,830|
|December 5, 2020||15||$4,261||9||122||9||$2,780||6||$1,481|
|November 28, 2020||19||$7,758||10||110||13||$4,003||6||$3,755|
|November 14, 2020||14||$864.1||14||157||12||$289.1||2||$575|
|November 7, 2020||13||$6,332||9||129||9||$2,483.5||4||$3,849|
|October 31, 2020||10||$3,995.8||8||103||6||$3,231.1||4||$754.7|
|October 24, 2020||6||$18,100||6||58||5||$17,709||1||$350|
|October 17, 2020||8||$351.9||5||55||8||$351.9||0||0|
|October 10, 2020||7||$5,229||3||50||4||$735||3||$4,494|
|October 3, 2020||14||$21,428||9||173||9||$17,535||5||$3,893|
|September 26, 2020||10||$12,770||8||93||5||$10,300||5||$2,470|
|September 19, 2020||14||$8,365||9||101||6||$1,020||8||$7,345|
|September 12, 2020||6||$4,406||8||59||3||$1,270||3||$3,136|
|September 5, 2020||11||$5,191||8||117||9||$4,061||2||$1,130|
|August 29, 2020||11||$2,531||9||94||5||$1,130||6||$1,401|
|August 22, 2020||18||$6,574||12||140||7||$1,930||11||$4,644|
|August 15, 2020||13||$4,991||10||97||7||$1,216||6||$3,775|
|August 8, 2020||12||$32,092||11||112||9||$30,457||3||$1,635|
|August 1, 2020||7||$5,287||8||76||5||$3,687||2||$1,600|
|July 25, 2020||9||$18,751||6||67||7||$18,403||2||$348|
|July 18, 2020||6||$1,982.5||5||50||4||$1,407.5||2||$575|
|July 11, 2020||11||$565.1||12||75||10||$65.1||1||$500|
|July 4, 2020||10||$8,889||8||98||9||$8,788||1||$100.3|
|June 27, 2020||8||$6,874||10||50||5||$4,972.5||3||$2,081.5|
|June 20, 2020||12||$4,444||9||115||7||$2,829||5||$1,615|
|June 13, 2020||6||$3,582||4||37||2||$350||4||$3,232|
|June 6, 2020||11||$3,213.7||8||65||7||$470||4||$2,743.7|
|May 30, 2020||8||$7,335||7||48||6||$4,639||2||$2,697|
|May 23, 2020||4||$432.4||4||34||3||$432.4||1||0|
|May 16, 2020||6||$310||6||34||5||$310||1||0|
|May 9, 2020||18||$5,630||16||124||14||$3,180||4||$2,450|
|May 2, 2020||15||10,400||10||90||8||$1,900||7||$,8,500|
|April 25, 2020||8||$3,400||9||36||5||$1,000||3||$2,450|
|April 18, 2020||19||$9,500||14||92||8||$185.7||11||$9,360|
|April 11, 2020||12||$6,000||9||40||5||$190||7||$5,800|
|April 4, 2020||14||$8,200||11||68||10||$2,200||4||$6,000|
|March 28, 2020||16||$6,500||13||96||10||$3,700||6||$2,800|
|March 21, 2020||11||$11,910||7||33||7||$2,250||4||$9,960|
|March 14, 2020||7||809.8||6||34||6||684.8||1||125|
|March 7, 2020||16||$2,500||15||70||13||$669||3||$1,400|
|February 29, 2020||13||$15,260||13||128||11||$11,760||2||$3,500|
|February 22, 2020||12||$3,700||10||92||10||$2,560||2||$1,130|
|February 15, 2020||16||$1,250||10||84||12||$35||4||$1,222|
|February 8, 2020||18||$6,080||14||123||14||$2,595||4||$3,485|
|February 1, 2020||21||$20,900||12||101||14||$17,860||7||$3,060|
|January 25, 2020||13||$7,430||13||62||12||$6,430||1||$1,000|
|January 18, 2020||23||$9,580||15||120||19||$6,580||4||$3,000|
|January 11, 2020||21||$14,200||18||199||16||$1,020||5||$13,200|
|January 4, 2020||22||$6,400||11||119||16||$3,204||6||$3,245|
|December 28, 2019||22||$7,150||19||175||18||$6,800||4||$327.4|
|December 14, 2019||24||$36,300||23||167||19||$9,500||5||$26,800|
|December 7, 2019||11||$10,400||11||55||7||$1,082||4||$9,370|
|November 30. 2019||14||$2,450||12||126||12||$1,760||2||$692.5|
|November 23, 2019||16||$1,995||10||41||11||$615||5||$1,380|
|November 16, 2019||15||$3,820||13||135||11||$2,500||4||$1,271|
|November 9, 2019||25||$12,900||17||182||23||$12,200||2||$575|
|November 2, 2019||10||$2,470||12||61||9||2,450||3||$22|
|October 26, 2019||12||$5,560||14||70||11||$3,860||1||$1,700|
|October 19, 2019||8||$6,600||8||138||8||$6,600||0||0|
|October 12, 2019||19||$4,300||14||55||16||$3,800||3||$500|
|October 5, 2019||18||$14,500||19||166||15||$11,100||3||$3,400|
|September 28, 2019||19||$8,100||18||132||18||$7,560||1||$550|
|September 21, 2019||14||$6,300||16||66||11||$2,160||3||$4,170|
|September 14, 2019||15||$23,800||12||56||11||$21,250||4||$2,570|
|September 7, 2019||17||$3,500||15||98||14||$1,900||3||$1,600|
|August 31, 2019||5||$8,700||6||50||5||$8,700||0||0|
|August 24, 2019||16||$10,000||14||82||15||$4,250||1||$5,750|
|August 16, 2019||10||$1,680||5||52||7||$650||3||$950|
|August 9, 2019||17||$17,700||15||68||14||$3,900||3||$13,800|
|August 2, 2019||13||$5,760||12||108||13||$5,760||NA||NA|
|July 27, 2019||11||$7,300||13||76||8||$6,570||3||$730|
|July 20, 2019||13||$11,800||13||125||11||$5,300||2||$6,500|
|July 13, 2019||10||$775||7||46||8||$542.5||2||$233|
|July 6, 2019||7||$2,500||9||85||7||$2,500||0||0|
|June 29, 2019||23||$8,290||15||154||17||$2,300||6||$5,970|
|June 22, 2019||17||$10,700||10||139||14||$7,700||3||$3,000|
|June 15, 2019||11||$13,500||14||160||11||$13,500||NA||NA|
|June 8, 2019||13||$2,870||17||55||11||$1,570||2||$1,300|
|June 1, 2019||10||$4,460||11||60||8||$4,140||2||$315|
|May 25, 2019||17||$4,360||14||79||14||$3,700||3||$612|
|May 18, 2019||22||$9,000||17||150||16||$3,400||6||$5,600|
|May 11, 2019||18||$19,800||17||177||15||$18,300||3||$1,500|
|May 4, 2019||10||$7,075||6||32||8||$6,900||2||$175|
|April 27, 2019||15||$3,200||14||117||14||$3,160||1||$40|
|April 20, 2019||13||$13,500||10||90||9||$12,200||4||$1,300|
|April 13, 2019||16||$38,900||14||91||14||$37,800||2||$1,100|
|April 6, 2019||12||$6,870||11||94||10||$6,730||2||$50|
|March 30, 2019||15||$6,470||12||84||10||$7,91.5||5||$5,677|
|March 23, 2019||18||$6,450||14||91||14||$5,042||4||$1,408|
|March 16, 2019||14||$10,180||12||115||11||$8,800||3||$1,300|
|March 9, 2019||9||$1,800||6||49||8||$1,300||1||$500|
|March 2, 2019||20||$3,033||16||107||14||$1,817||6||$1,262|
|February 23, 2019||12||$2,040||8||69||9||$614.6||3||$1,430|
|February 16, 2019||16||$9,970||18||77||16||$9,970||0||0|
|February 9, 2019||14||$6,400||10||110||14||$6,400||0||0|
|February 2, 2019||18||$6,740||15||99||16||$5,720||2||$950|
|January 26, 2019||13||$2,770||11||67||11||$918.95||2||$1,850|
|January 19, 2019||15||$3,819||16||76||12||$2,594||3||$1,225|
|January 12, 2019||18||$7,283||14||92||15||$1,683||3||$5,600|
|January 5, 2019||10||$529||12||50||10||$529||0||0|
|December 22, 2018||17||$2,570||13||87||14||$941||3||$1,629|
|December 15, 2018||10||$2,860||8||26||8||$264||2||$2,600|
|December 8, 2018||15||$1,819||16||65||12||$552||3||$1,267|
|December 1, 2018||12||$7,500||10||90||9||$1,200||3||$6,200|
|November 28, 2018||15||$4,500||11||107||14||$4,000||1||$500|
|November 19, 2018||18||$6,137||13||98||13||$2,142||5||$3,995|
|November 14, 2018||18||$9,200||13||152||15||$8,500||3||$694|
|November 6, 2018||16||$17,300||16||183||14||$16,361||2||$950|
|October 29, 2018||14||$14,400||18||127||17||$13,800||1||$600|
|October 24, 2018||13||$6,140||13||126||11||$5,122||2||$1,018|
|October 17, 2018||18||$18,390||15||125||14||$12,292||4||$6,098|
|October 10, 2018||29||$3,149||18||104||20||$1,647||9||$819|
|October 2, 2018||18||$9,300||11||67||14||$7,300||4||$2,000|
|September 25, 2018||13||$7,000||11||75||10||$6,000||3||$995|
|September 18, 2018||9||$3,570||7||44||9||$3,570||0||0|
|September 11, 2018||13||$5,900||10||132||13||$5,900||0||0|
|September 7, 2018||14||$5,000||15||86||11||$4,000||3||$1,000|
|August 29, 2018||15||$20,700||14||79||13||$4,700||2||$16,000|
|August 20, 2018||10||$12,400||11||53||8||$11,380||3||$1,057|
|August 14, 2018||12||$19,900||12||132||9||$18,889||3||$1,011|
|August 7, 2018||16||$68,600||11||106||13||$67,259||3||$1,340|
|July 31, 2018||15||$15,100||15||95||11||$13,060||4||$2,060|
|July 23, 2018||13||$2,130||15||60||10||$1,804||3||$1,100|
|July 17, 2018||14||$5,370||17||98||9||$4,310||5||$1,100|
|July 9, 2018||16||$11,200||15||74||10||$11,080||6||$862|
|July 3, 2018||13||$7,000||7||81||12||$6,330||1||$750|
|June 25, 2018||15||$8,800||13||97||9||$4,970||6||$3,930|
|June 18, 2018||13||$14,200||14||80||7||$221||6||$14,290|
|June 11, 2018||12||$6,300||8||96||8||$5,910||4||$803|
|June 6, 2018||13||$14,500||10||88||8||$14,154||5||$579|
|May 31, 2018||11||$4,890||10||63||8||$3,240||3||$1,790|
|May 22, 2018||15||$20,400||11||63||9||$19,808||6||$885|
|May 15, 2018||15||$4,700||15||106||10||$3,900||5||$643|
|May 9, 2018||11||$1,400||13||88||9||$1,300||2||$560|
|May 1, 2018||8||$14,250||7||88||7||$13,400||1||$450|
|April 24, 2018||12||$5,300||6||61||11||$4,470||1||$800|
|April 17, 2018||9||$1,800||10||44||7||$2,330||2||$1,434|
|April 11, 2018||11||$2,500||8||32||6||$1,690||5||$809|
|April 3, 2018||15||$13,400||11||121||9||$12,020||6||$1,090|
|March 28, 2018||10||$4,000||10||92||7||$3,870||3||$215|
|March 19, 2018||17||$5,800||13||51||10||$590||7||$5,165|
|March 12, 2018||15||$3,130||11||43||11||$2,360||4||$788|
|March 6, 2018||19||$5,400||13||116||10||$1,530||9||$4,860|
|February 27, 2018||20||$6,600||13||69||14||$5,530||6||$1,030|
|February 19, 2018||15||$5,500||14||111||10||$3,990||6||$1,980|
|February 12, 2018||23||$10,900||17||157||12||$7,110||11||$3,840|
|February 5, 2018||16||$8,600||13||100||7||$1,330||9||$7,800|
|January 30, 2018||11||$12,600||11||68||5||$7,300||6||$4,982|
|January 24, 2018||19||$9,400||15||129||5||$2,010||14||$7,337|
|January 18, 2018||10||$6,280||8||49||2||$2,100||8||$4,188|
|January 9, 2018||12||$16,500||12||92||9||$15,890||3||$475|
|January 3, 2018||10||$2,500||9||47||8||$2,350||2||$150|
|December 27, 2017||15||$9,000||15||113||9||$7,568||6||$1,784|
|December 18, 2017||15||$13,800||16||164||9||$13,010||7||$1,118|
|December 11, 2017||14||$9,700||10||126||12||$2,940||4||$8,500|
|December 4, 2017||6||$1,800||6||31||5||$1,510||1||$300|
|November 28, 2017||7||$3,850||8||76||4||$3,260||3||$285|
|November 16, 2017||10||$2,700||10||48||6||$1,840||4||$856|
|November 8, 2017||15||$2,380||17||91||10||$1,860||5||$516|
|November 1, 2017||12||$4,700||17||94||9||$3,400||4||$1,300|
|October 23, 2017||15||$10,500||10||67||10||$9,780||4||$1,530|
|October 18, 2017||6||$2,000||37||3||$225||3||$1,820|
|October 10, 2017||12||$6,570||100||9||$3,880||3||$3,360|
|October 2, 2017||8||$3,100||11||19||3||$1,630||5||$1,750|
|September 25, 2017||8||$4,880||8||79||5||$2,660||5||$2,070|
|September 18, 2017||9||$4,770||3||$300||6||$4,470|
|September 12, 2017||11||$4,430||8||$2,030||3||$2,400|
|September 1, 2017||4||$1,310||3||$317||1||$1,000|
|August 23, 2017||11||$13,640||9||8||$11,840||3||$1,800|
There were 18 M&A/private equity/venture capital deals valued at $7.56 billion and one capital markets/financing transaction worth $550 million. Eighteen law firms and 132 Texas lawyers were involved in all the activity.
M&A/PRIVATE EQUITY/VENTURE CAPITAL
Exxon Mobil sells Norwegian oil and gas assets to Vår for $4.5B
After a lot of unconfirmed reports, Exxon Mobil announced that it agreed to sell its Norwegian oil and gas assets to Vår Energi for $4.5 billion.
General counsel Randall Ebner didn’t return repeated requests for in-house and outside counsel on the deal and a company spokesman declined comment.
The sale doesn’t involve or affect its downstream refining operations, including a refinery in Slagen, and 250 Esso-branded gas stations in Norway.
The sale is part of the Irving-based oil and gas giant’s plan to divest about $15 billion in non-strategic assets by 2021.
Exxon Mobil senior VP Neil Chapman said in a statement that the company’s objective is to have the strongest, most competitive upstream portfolio in the industry.
“We’re achieving that by adding the best set of projects we’ve had in many years and divesting assets that have lower long-term strategic value,” he said. “This sale is an important part of our divestment program, which is on track to meet our $15 billion target by 2021.”
The transaction includes ownership interests in more than 20 producing fields operated mostly by Equinor, including Grane, Snorre, Ormen Lange, Statfjord and Fram, with a combined production of 150,000 oil-equivalent barrels per day.
Exxon Mobil expects to close the transaction in the fourth quarter if it clears regulators. It said the majority of its employees impacted by the sale will transfer to positions at Vår Energi.
The company said in 2017 it sold its ownership interests in the Exxon Mobil-operated fields Balder, Jotun Ringhorne and Ringhorne East to Point Resources.
Gibson Dunn aids SK Innovation on $1.05B Peruvian gas stake sale to Pluspetrol
As The Texas Lawbook previously reported, South Korean oil and gas company SK Innovation Co. said Sept. 27 it agreed to sell its 17.6% stake in two natural gas fields in Peru to Argentina’s Pluspetrol for $1.05 billion.
Gibson Dunn & Crutcher represented SK Innovation with a team led by Houston partner Justin T. Stolte with assistance from Houston associates James Robertson, Ashley Nguyen, Jordan Silverman and Monika Kluziak and others.
Stolte represented SK on its agreement to buy private oil and gas explorer and producer Longfellow Nemaha last year. He worked with SK’s lead commercial executive Gerald Pyle when the two were part of Apache Corp.’s business development group.
SK’s lead attorney on the transaction was Se Young (Sam) Jeong, who is based out of Houston. He graduated from the Maurice A. Deane School of Law at Hofstra University.
The transaction has to clear Peruvian regulators. The deal could include additional contingent payments after closing.
Camisea blocks 56 and 88 are in one of the largest natural gas and condensate fields in South America. They feed a liquefied natural gas facility in Peru, which SK owns along with Dallas-based Hunt Oil, Royal Dutch Shell and Marubeni.
Pluspetrol already held an interest in the blocks along with Hunt, Tecpetrol, Repsol and Sonatrach. SK Innovation plans to use the proceeds to diversify its portfolio into other energy sectors, including the battery and materials business, and expand its presence in Asia and North America, according to a report in The Korea Herald.
KE, Winston, Hunton AK counsel on Golden Gate’s Hillstone $600M sale to NGL
Kirkland & Ellis said Sept. 26 it counseled Golden Gate Capital and Hillstone Environmental Partners on Golden Gate’s sale of Hillstone to Tulsa-based NGL Energy Partners for $600 million.
Other Texas lawyers on the deal were transactional partner Chad Smith in Houston and associate Will Eiland in Dallas; and environmental transactions partner Paul Tanaka, who offices in Houston and San Francisco, and associate Devi Chandrasekaran in Houston.
Nob Hill Law Group also counseled Golden Gate and Hillstone, including Steve Oetgen, who is general counsel at Golden Gate and co-founded Kirkland’s San Francisco office.
Other Texas lawyers on the transaction were Dallas partner Andrew Betaque on tax, Houston partner Jeff Smith and Dallas associate Masae Ellis on real estate and Houston corporate associates Anna Gryska and Chris Cottrell.
Hunton Andrews Kurth represented NGL on the debt commitment letters and an equity purchase agreement to fund the transaction. That team included corporate partners Mike O’Leary and Henry Havre, tax partner Robert McNamara and corporate associate Garrett Hughey, all of Houston.
Tudor, Pickering, Holt’s Aaron Blomquist, BJ Walker and Dan English provided financial advice to Golden Gate, as did Jefferies (Pete Bowden, Brian Bravo and Rob Anderson). Barclays is NGL’s financial advisor and Barclays and Jefferies provided a committed debt financing to NGL to support the deal.
The transaction has to clear Hart-Scott-Rodino but NGL expects to close it this year.
Hillstone provides water pipeline and disposal infrastructure solutions to oil and gas producers with a focus on the state line area of southern Eddy and Lea Counties, New Mexico, and northern Loving County, Texas in the Delaware Basin.
Hillstone’s interconnected produced water pipeline transportation and disposal system consists of 19 salt water disposal wells representing about 580,000 barrels per day of permitted disposal capacity and a newly-built network of produced water pipelines with 680,000 barrels per day of transportation capacity.
Hillstone also has 22 permits to develop another 660,000 barrels per day of disposal capacity.
NGL Mike Krimbill said in a statement that the Hillstone acquisition represents another milestone for its water solutions franchise after the closing of its combination with Mesquite in July.
“This transaction is highly complementary to our Delaware Basin asset footprint,” he said. “It not only adds a redundant, interconnected produced water pipeline system with significant permitted disposal capacity that fits perfectly within our existing footprint, but importantly, it also supports our ongoing strategy of increasing NGL’s cash flow predictability.”
Doug White, NGL’s executive VP of water solutions, said the Hillstone assets include long-term contracts with investment grade producers that have an average remaining term of more than 10 years, minimum volume commitments and first call priority volume commitments that minimize impacts of timing related to recycle and reuse activities.
The transaction’s financing includes certain preferred equity and debt commitments. NGL estimates the transaction was made at a 7 times multiple of forecasted run-rate EBITDA once certain contracted volumes are online next year, which should make it accretive to distributable cash flow per unit in fiscal 2021, the first full year of ownership.
Willkie Farr advises Pickering Energy on $500M JV with Henry Resources
Willkie Farr & Gallagher said last week that Houston partner Michael De Voe Piazza co-led the team advising Pickering Energy Partners on its strategic joint venture with family-owned Henry Resources, which aims to invest $500 million in producing oil and gas properties in West Texas’ and New Mexico’s Permian Basin.
Willkie Farr also counseled Pickering on its separation from Perella Weinberg and Tudor, Pickering, Holt announced earlier.
Midland-based Henry was represented by their senior counsel and VP of land Mike Curry, who said he helped negotiate the deal points along with David Bledsoe and Danny Campbell.
The Texas Tech Law-educated Curry joined Henry in 2014 from Cotton, Bledsoe, Tighe & Dawson, where he had worked for more than 24 years. Before that he was an independent petroleum landman for 11 years.
The joint venture will pursue acquisitions of producing oil and gas assets across the Permian Basin where Henry Resources has operated for over 50 years.
“Henry has had a front row seat to the Permian Basin through various cycles over the past few decades and today looks like one of the most favorable PDP acquisition markets we have ever seen,” Bledsoe said in a statement. “Henry believes we are well positioned with the PEP joint venture to exploit the current correction and deliver predictable returns to the Henry family and our partners.”
Pickering Energy’s chief investment officer Dan Pickering also sees a unique opportunity in the acquisition market for producing oil and gas assets.
“Partnering with Henry Resources and our investors allows us to opportunistically exploit the liquidity-driven mispricing in the market,” he said.
Acquired properties will be operated by the Henry team. The partnership said its strategy includes a significant current yield component with a robust hedging program to protect against volatility in crude oil markets.
“The joint venture believes it will be the ‘buyer of choice’ due to its knowledge of the Basin, strong local relationships and dedicated acquisition capital,” the press release said.
Pickering founded the original Pickering Energy Partners in early 2004 as an institutional energy research firm before subsequently partnering with Bobby Tudor and Maynard Holt in 2007 to become Tudor, Pickering, Holt.
Jim Henry founded the original Henry company in 1969, drilling his first well in 1971. Since then, the company has drilled and completed more than 1,600 vertical wells and 80 horizontal wells, the vast majority of which are in the Midland and Delaware Basins.
Kirkland, Akin advise on GSO’s $350M commitment to Genesis Alkali
Kirkland & Ellis said Sept. 23 it counseled GSO Capital Partners and its affiliates on a $350 million preferred equity commitment to Genesis Alkali Holdings Co., a unit of Genesis Energy.
Akin Gump in Houston represented Houston-based Genesis, including Houston partners Chris Centrich and Patrick Hurley and associates Kevin Schott and Jiha Ko. Specialists included partners Alison Chen and Jocelyn Tau on tax, partners Chip Cowell and Eric Muñoz and counsel Chase Armbrust on finance and partner Brian Patterson on labor.
Genesis Alkali owns trona and trona-based exploring, mining, processing, producing, marketing and selling businesses, including the Granger production facility near Green River, Wyo.
Genesis Energy, which is led by CEO Grant Sims, announced Sept. 23 that it planned to invest $300 million to expand the Granger facility to increase soda ash production by around 750,000 tons per year. GSO’ equity commitment is part of that expansion.
Michael Zawadzki, senior managing director and co-head of Energy at GSO, said in a statement that he believes the Granger expansion will be highly accretive and will be funded in a balance sheet friendly structure.
Billionaire Fertitta’s Landry’s buys Del Frisco units for reported $300M
Tilman Fertitta, owner of restaurant empire Landry’s and the Houston Rockets, announced Sept. 25 that he agreed to buy Del Frisco’s Double Eagle Steakhouses and Del Frisco’s Grilles from investment firm L Catterton.
Fertitta didn’t reveal a purchase price but reports put it at $300 million.
Steve Scheinthal and Dash Kohlhausen represented Landry’s in-house with help from Haynes and Boone, including partners Jennifer Wisinski, Paul Amiel and Sameer Saxena. Associates on the deal were Brent Beckert, Courtney Chouinard, Rachael Apfel, Brett Moore, Nick Nash, Camie Carlock and Simin Sun.
Gibson Dunn represented L Catterton with a team out of New York.
Jefferies was Landry’s financial adviser along with Deutsche Bank Securities and North Point Advisors.
The announcement came on the same day that L Catterton completed its $650 million purchase of Del Frisco’s Restaurant Group, which will take it private. L Catterton is keeping the Bartaco and Barcelona Wine Bar brands.
The transaction is expected to close at the end of October.
“We have been following Del Frisco’s for many years and tried once previously to acquire the company in 2012 before it went public,” Fertitta said in a statement. “It is a storied high-end steakhouse brand with roots set in Texas and iconic locations throughout the country.”
Del Frisco’s has 35 restaurants in 13 states. Fertitta noted the Del Frisco’s Double Eagle in midtown Manhattan (“one of the highest grossing volume restaurants in the country”) as well as the Del Frisco’s Grille at Rockefeller Center, Del Frisco’s Double Eagle at the Boston Seaport (“one of Boston’s most successful restaurants,” he said) and the popular Del Frisco’s Double Eagle in historic downtown Philadelphia. Texas also is home to four Del Frisco’s Double Eagles, including both Dallas and Houston.
“Del Frisco’s is a perfect complement to our existing high-end steakhouse portfolio, which includes such notable concepts as Mastro’s, Morton’s, Vic and Anthony’s, Strip House and Brenner’s,” he said.
Houston-based Landry’s operates more than 500 high-end and casual restaurants around the world as well as casinos and hotels.
Kirkland, V&E, Baker Botts aid on Kodiak’s purchase of Pegasus from Apollo
Kirkland & Ellis said Sept. 25 it advised EQT Infrastructure and portfolio company Kodiak Gas Services on Kodiak’s agreement to acquire Pegasus Optimization Managers from affiliates of Apollo Natural Resource Partners II.
The parties didn’t disclose the sum, but Apollo backed Pegasus in 2016 with an equity commitment of $175 million.
Other Texas lawyers on the deal were tax partner Mark Dundon and associate Joe Tobias; environmental transactions partner Stefanie Gitler and associate Devi Chandrasekaran; and litigation associates Mark Holden and Grant Jones. The team had support from Kirkland’s offices in Washington, D.C., New York and Chicago.
Vinson & Elkins counseled Pegasus and Apollo with a team led by partners in New York with assistance from Houston senior associate Crosby Scofield and other associates in New York. Other key team members in Texas included executive compensation/benefits partner Stephen Jacobson and associate Mary Daniel Morgan in Houston and tax partners David Peck in Dallas and Jason McIntosh in Houston and associates Brian Russell and Daniel Henderson.
Baker Botts represented the management team of Pegasus, including corporate partner Jon Platt in Dallas and corporate associate Stephen Noh in Houston. Employment matters were handled by partner Jennifer Trulock in Dallas and tax matters by partner Robert Phillpott in Houston.
Jeremy Osborne is general counsel at Pegasus, which is based in College Station.
Jefferies provided financial advice to Pegasus and Apollo, including Pete Bowden, Brian Bravo and Chris Howey.
The parties expect to close the deal this quarter, with EQT Infrastructure IV being 47% invested.
Kodiak said the acquisition brings together the two fastest growing contract compression businesses with the youngest fleet in the industry.
Founded in 2015, Pegasus is led by Chad Lenamon, the former president of CDM Resource Management.
Kodiak, which was acquired by EQT Infrastructure this past February, is the largest privately owned and one of the largest contract compression companies in the U.S. providing equipment for the extraction of oil and transportation of natural gas. As a result of the acquisition, it will have more than 2.5 million revenue generating horsepower deployed across key basins.
Kodiak CEO and president Mickey McKee said in a statement that the deal furthers the company’s strategy of creating the best performing contract compression company in the industry.
EQT partner Alex Darden said the combination will create a differentiated, large-scale leading contract compression company in the U.S. with a differentiated service offering and critical infrastructure.
Olivia Wassenaar led the investment from Apollo, which had assets under management of $312 billion as of June 30.
T&K, W&C assist on Tailwater’s $150M commitment to Triten Energy
Thompson & Knight said Sept. 23 that it represented energy-focused private equity firm Tailwater Capital in Dallas on a recent $150 million commitment to Triten Energy Partners, a new Houston company pursing downstream infrastructure projects.
The Dallas team included partners J. Holt Foster III, Jessica Hammons and J. Dean Hinderliter, associate Courtney Jamison Roane, partners Anthony J. Campiti and Jason Patrick Loden and associate Tonya Maksimenko.
The partnership will help Triten to develop and acquire facilities producing fuels and chemicals for the refined products and petrochemical sectors with a focus on renewable and lower-emission end products. Tailwater’s commitment also is expected to help Triten develop solutions for its customers to reduce carbon emissions and pursue opportunities.
Triten said it has proven process technology and an experienced team to invest in downstream infrastructure that provides lower-emission fuel sources and chemical intermediates.
Tailwater manages more than $3.2 billion in committed capital and has executed more than 100 energy transactions in the upstream and midstream sectors.
Mesa Natural Gas attracts $52M from HarbourVest Partners
HarbourVest Partners has invested $52 million in BP Energy Partners-backed Mesa Natural Gas Solutions.
BP Energy Partners’ outside general counsel Warren Garden – a partner at Block Garden & McNeill – didn’t respond to requests for counsel on the investment, which will give HarbourVest a minority position in Mesa.
Mesa is a U.S.-based power solutions company specializing in the manufacturing, sales, leasing and operations of natural gas and liquid propane-powered mobile and stationary generator sets. The sets are used for prime power, demand response, backup power and microgrid applications in the energy, commercial and industrial sectors.
Founded in 2013, BP Energy Partners was originally sponsored by T. Boone Pickens. It currently manages more than $500 million in committed capital.
HuntonAK, Alston aid on BancorpSouth’s $44.4M Texas First purchase
Tupelo, Miss.-based BancorpSouth Bank agreed to buy Texas First State Bank from Texas First Bancshares Inc. for $44.4 million.
The deal includes 1.07 million shares of BancorpSouth valued at around $31.4 million plus $13 million in cash. The deal comes with a collar with respect to the total deal value ranging from $38.8 million to $46.5 million, which may result in the share number or the cash consideration to be adjusted.
Hunton Andrews Kurth advised Texas First, including Dallas partners Beth Whitaker and Jeff Blair and associate Lauren Chase Titolo.
Alston & Bird and Waller Lansden Dortch & Davis counseled BancorpSouth, with Alston partner Sandy Brown in Dallas as part of the deal team.
Texas First received financial advice from Sheshunoff & Co. Investment Banking.
The parties expect to close the deal in the first half of next year if it clears regulators and Texas First shareholders.
Texas First reported total assets of $391.3 million, total loans of $162.6 million and total deposits of $356.6 million as of June 30.
When the deal is completed, BancorpSouth will have 76 full-service banking offices, five mortgage loan production offices and four insurance offices in Texas with total deposits in Texas of around $3.8 billion and total loans of about $4.3 billion.
Texas First, which was founded in 1906 in Riesel, Texas, operates six full-service banking offices in the Waco and Killeen-Temple areas.
BancorpSouth said the merger will expand its presence in Central Texas by increasing the bank’s deposit market share and providing opportunities for expansion along the rapidly growing I-35 corridor between Austin and Dallas/Fort Worth.
BancorpSouth chairman and CEO Dan Rollins said in a statement that the merger is a great fit both geographically and culturally. Texas First chairman and CEO Rodney Kroll said the deal is an excellent opportunity for it to become part of a regional bank, which will allow it to offer customers expanded products and services.
Kastner Gravelle aids Fetch on $10.5M in funding from Signal Peak, others
Fetch said it picked up $10.5 million in Series A funding from Signal Peak Ventures as well as existing investors Silverton Partners and the Capital Factory, bringing its total funding to $14 million.
Kastner Gravelle’s Evan Kastner led the deal for Fetch. Signal Peak used Holland Hart in Salt Lake City.
Founded in 2016 in Dallas, Fetch offers package deliveries to apartment communities via an app. It currently operates in Dallas, Fort Worth, Houston, Austin, San Antonio, Seattle, Denver, Atlanta, Orlando, Tampa, Chicago and Phoenix with Charlotte, Washington, D.C., and Portland scheduled to round out this year.
Founder & CEO Michael Patton said in a statement that since its seed round last summer, the company has expanded from six employees to 140 and increased sales by more than 1,000%.
Fetch accepts deliveries at Fetch-operated warehouses, then provides scheduled, door-to-door delivery with residents directly. With e-commerce growing rapidly, Fetch offers a scalable solution for apartment owners and managers struggling to deal with the exponential growth of tenant deliveries.
Its national clients including Pinnacle, Wood Partners, Alliance Residential, Lincoln Property Company, ZRS and Waterton.
Scott Petty of Signal Peak will join Fetch’s board. Kip McClanahan led the investment from Silverton.
Shearman aids Seraph on Austin regional fund, $6M Molecula investment
Venture capital firm Seraph Group said Sept. 24 it was launching its first regional fund in Austin and already invested in Molecula, an Austin-based software company focused on data virtualization.
Other investors in the $6 million seed round were Lontra Ventures, Velar Capital, Capital Factory, Andrew Busey and Jason Dorsey.
Seraph said it worked with Shearman & Sterling partner Brian Dillavou in Austin. Dillavou joined Shearman from Andrews Kurth Kenyon – now Hunton Andrews Kurth – last year.
Jake Moilanen, general partner of Seraph Austin, said in a statement that Austin’s vibrant entrepreneurship environment coupled with limited capital is producing greater value opportunities for venture capital than even Silicon Valley.
“We look forward to advancing innovation in the Lone Star State through our support of promising startup companies,” he said.
Seraph said it also chose to launch its 10th fund in Austin because of its reputation as one of the top places in America to start a business and its recent number-one rankings by Inc. and CommercialCafé as the best city for entrepreneurs.
While Austin startups grew faster than any other city besides Washington D.C., , according to the Kauffman Growth Entrepreneurship Index, fund assets in Austin are down 27% over the past five years and there is not enough capital for early-stage companies to tap into, Seraph said. The firm aims to increase Austin’s fund assets with its Seraph Austin I portfolio, which will target 50% deployment in Austin and central Texas.
Founded in San Francisco in 2004 by Tuff Yen, Seraph provides seed-stage funding of $500,000 to $1 million to entrepreneurs and provides angel investors the opportunity to co-invest in its portfolio. Seraph has 320 investors from 150 cities, made more than 100 investments and achieved 20 exits as of last year. Its portfolio companies have received $600 million in follow-on investments from U.S and international venture capital firms.
Carroll Counsel advises CyberFortress on $3M in seed funding
San Antonio-based insuretech startup CyberFortress announced that it raised $3 million in seed funding from Greycroft and LiveOak Venture Partners along with existing investor Monte Tulum Capital.
Carroll Counsel’s Jennifer Carroll in Austin counseled CyberFortress. Greycroft and LiveOak used Kraus Law Group in Massachusetts.
CyberFortress is focused on protecting e-commerce companies from cyber threats. It plans to use the funds to expand its product development team to accelerate its product launch in the Texas market, which is anticipated for early next year.
The company was formed in 2018 to develop a new approach to cyber insurance for small businesses that would overcome the issues with existing coverages: long applications, complicated multi-party coverages and slow claims payouts. It’s building an online revenue interruption policy for e-commerce companies that insures them against the risk of downtime resulting from cyber events, including attacks, internal errors or third-party failure.
CEO Huw Edwards said in a statement that the main cyber threat facing e-commerce companies is downtime. “If a small e-commerce company can’t collect revenue, they may not be able to make their next payroll,” he said. “Our policy is laser-focused on solving this critical problem.”
CyberFortress has already begun helping e-commerce companies manage their cyber risk, having launched its Downtime Risk Assessment in June. It’s been working with international actuarial consulting firm Milliman to develop and validate its risk model.
Will Szcerbiak, who is leading the investment for Greycroft and has made investments in the insuretech space, said the company’s underwriting is efficient and its payment claims are quick. “These characteristics are unusual in the commercial insurance universe and we believe they will set CyberFortress on a path to scale,” he said.
Venu Shamapant, founding partner of LiveOak, will join CyberFortress’ board. Katie Wade, former Connecticut Insurance Commissioner, is joining the company’s board of advisors.
Greycroft has made 300 investments across the tech sector, including Acorns, the Huffington Post, Icertis, Plated, Shipt, TheRealReal, Thrive Market, Trunk Club, and Venmo. LiveOak’s investments have included CS Disco, Digital Pharmacist, OJO Labs, Opcity and TrustRadius.
V&E, TK advise EnCap, Yorktown on investment in Broad Reach
Vinson & Elkins confirmed last week it represented EnCap on its investment in Houston-based Broad Reach Power with Yorktown. Terms weren’t disclosed.
Thompson & Knight partner Ann Marie Cowdrey counseled Yorktown.
EnCap’s compliance officer is Rishi Desai, who joined in 2017 from Tudor, Pickering, Holt, where he was counsel and senior compliance officer for its asset management unit. The Case Western-trained lawyer began his career in the investment management and commercial finance groups of Thompson Hine.
Newly formed Broad Reach plans to invest in, develop, own and operate utility-scale battery plants in North America, initially pursuing opportunities where market fundamentals are driving demand for flexible, fast-responding generation. Texas and California are likely targets.
Broad Reach said its battery plants will help customers manage merchant power risk to better match supply and demand. It will work with independent system operators charged with grid reliability as well as with utilities, generators and risk managers. The company also seeks to integrate its assets with existing wind, solar or thermal power plants to drive greater efficiencies.
Broad Reach managing partner and CEO Steve Vavrik, who previously developed and managed $4 billion in investments at GE, Enron, First Wind, SunPower and Apex Clean Energy, said in a statement that the fundamental changes transforming the global power industry have altered the composition of generation supply.
“Due to the increasing demand for clean energy and decreasing cost for this generation, there’s a mismatch between when power may be available and is needed,” he said. “At the same time, utility-scale battery storage systems are more affordable and efficient and can fill this emerging gap.”
Other Broad Reach managing partners include CFO Josh Prueher, COO Mark Klein and CTO Doug Moorehead, who previously developed a battery system now in use at U.S. military forward operating bases that’s been commercialized for oil and gas industrial backup power.
The company said it recently acquired a portfolio of solar projects in the Pacific Northwest and is actively discussing several other initial opportunities. It plans to control more than 2 gigawatts of generation by 2021 between standalone storage power plants as well as combinations with wind, solar or existing thermal power plants.
Founded in 1988, EnCap has raised 21 institutional oil and gas investment funds totaling $37 billion and currently manages capital on behalf of more than 350 U.S. and international investors.
Yorktown has raised $9 billion in capital commitments across 13 partnerships since 1991 and has provided financing and leadership to 90 companies in the energy industry.
EnCap recently formed an “energy transition” unit to pursue opportunities in lower carbon energy sources and storage. Leading the team are Jim Hughes and Tim Rebhorn, former executives at First Solar, along with Kellie Metcalf, a former senior director at Pattern Development, and Shawn Cumberland, former head of North America at Quinbrook Infrastructure Partners.
Wilson Sonsini advises Strattam on MHC investment
Wilson Sonsini Goodrich & Rosati said it represented Strattam Capital on its majority investment in MHC Software and acquisition of Vanguard Systems, which provides workflow and process automation solutions with offices in Pennsylvania and California. Terms weren’t disclosed.
Headquartered in Minneapolis, MHC will now serve more than two million users across 1,100 customers, including Boston Medical Center, CBS and Zaxby’s.
The combined company delivers enterprise-grade content automation solutions that allow customers to enhance their productivity and profitability by transforming manual, paper-based processes into highly automated digital solutions.
The company’s software is used in various processes, including the entire procure-to-pay cycle, and it integrates with ERP systems to ensure data integrity throughout the entire workflow process.
MHC also announced the promotion of Gina Armada to CEO. Co-founder and previous CEO John Shields became chairman. Vanguard CEO Dave Engberg is staying on, along with the rest of Vanguard’s employees.
Strattam Capital founder and managing partner Robert Morse said the investment builds on its practice of investing in founder-led businesses with best-in-class products.
Madison Capital Funding provided debt financing for the transaction while DC Advisory was MHC Software’s financial advisor.
Haynes and Boone aids Solo Stove on sale to Bertram Capital
Foster City, Calif.-based private equity firm Bertram Capital announced an investment in Frontline Advance, which does business as Solo Stove, a developer of portable, low-smoke fire pits and camping stoves. It didn’t disclose terms.
Eric Williams at HaynesBoone in Dallas represented Dallas-based Solo Stove. Hirschler in Virginia represented the buyer.
Cowen provided financial advice to Solo Stove, including Rob Parker and Eric VanDam.
Founded in 2011, Solo Stove initially made camp stoves for backcountry adventurers but eventually expanded into other products. It’s led by CEO John Merris, who previously worked with Bertram on its investment in Clarus Glassboards.
Bertram partner Ryan Craig said in a statement that Solo Stove is one of the first digitally native outdoor brands to achieve critical mass.
“We see a tremendous opportunity for our in-house IT group, Bertram Labs, to augment the company’s digital capabilities and help accelerate brand awareness,” he said
Bertram managing partner Jeff Drazan said the firm looks forward to partnering with Solo Stove’s co-founders, Jeff and Spencer Jan, who will remain actively involved in operations and keep significant ownership in the company.
Bertram has more than than $1.4 billion in committed capital and targets investments in lower middle market companies.
Selman Munson advises Tanknology on Hamilton Robinson recap
Selman Munson advised Austin-based Tanknology on its recapitalization by Hamilton Robinson Capital Partners. Terms weren’t disclosed.
The team included Jack Selman, Terry Kenyon and Marcin Daniluk. Finn Dixon & Herling in Connecticut assisted Hamilton Robinson.
The GulfStar Group was Tanknology’s financial advisor on the transaction, which closed Sept. 13. The team included Kent Kahle, Rupert Gerard, Jon Sanfelippo and Jay Lee.
Led by CEO Allen Porter, Tanknology claims to be the largest provider of environmental compliance testing and inspection services for retail fuel providers in the U.S. serving 50,000 petroleum fueling and storage facilities per year. Tanknology licensees span more than 30 countries.
Founded in 1984, Stamford, Conn.-based Hamilton Robinson invests directly in privately held commercial and industrial services, niche manufacturing and industrial technology businesses. It’s completed $1.6 billion in transactions supporting 59 family businesses and corporate divestitures. Its investors include financial institutions, funds, family offices and individuals in the U.S. and Europe.
Seyfarth Shaw counsels Stealth on investment from Twin Point Capital
Twin Point Capital said last week it made an investment in Stealth Monitoring, a Dallas- and Ontario-based provider of remote video monitoring solutions to residential, commercial and industrial businesses. Financial terms weren’t disclosed.
Seyfarth Shaw counseled Stealth with a team led out of Chicago that included several of its Houston attorneys, including partners John Tomaszewski and Esteban Shardonofsky, senior counsel Jay Strimel and Sai Pidatala and associates Cassie Myatt, John Phillips and Oluwafunmito “Funto” Seton.
Stikeman Elliott and Mitchell Silberberg & Knupp also counseled Stealth while Cooley, Fasken Martineau DuMoulin and Buchanan Ingersoll & Rooney assisted Twin Point. Raymond James was Stealth’s financial advisor.
As part of the transaction, Stealth raised new debt capital, which was provided by Pacific Western Bank and CIBC Bank USA.
Auxo Management, a privately held investment firm led by Stealth CEO Robert Cherun and president Erik Mikkelsen, will keep a substantial ownership in the company and existing management remains in place.
Founded in 2003, Stealth claims to be one of the largest and fastest growing providers of live video monitoring solutions in North America. It works in multiple industries, including construction, multi-family residential, shopping center and retail, automotive, office and commercial, industrial and manufacturing, energy, and distribution and logistics.
Stealth has grown from 50 to 550 employees in fifteen offices and three redundant live video monitoring command centers. Stealth’s team monitors 25,000 cameras per day, resulting in more than 15,000 deterred crimes, 500-plus arrests and 35,000 analyzed customer videos per year.
Jonathan Friesel led the investment from Twin Point, which he co-founded in 2015 with Lawrence Guffey. It has offices in Palo Alto and New York.
Baker Botts aids purchasers on Calumet Specialty’s $550M private placement
Baker Botts said Sept. 27 it represented the initial purchasers of Calumet Specialty Products Partners’ $550 million private placement of 11% senior notes due 2025.
The notes will be guaranteed by certain units of Calumet. The offering is expected to close Oct. 11
Calumet intends to use the net proceeds along with borrowings under its revolver and cash on hand to fund the redemption of all of its outstanding 6.5% senior notes due 2021.
Indianapolis-based Calumet processes crude oil and other feedstocks into lubricating oils, solvents and waxes used in consumer, industrial and automotive products and produces fuel products including gasoline, diesel and jet fuel. It has 11 manufacturing facilities in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Last week TPG canceled its $930 million purchase of a majority stake in Tailwater Capital-backed Dallas-based Goodnight Midstream, which provides fluids handling solutions to midstream oil and gas companies. TPG said Goodnight was unable to meet closing conditions, which weren’t specified. Bloomberg reported that the deal hinged in part on Goodnight securing a contract with an unidentified major oil company that had not yet materialized, citing people familiar with the matter, but Tailwater wouldn’t comment. TPG announced the deal in March, preempting Goodnight’s plans to go public. Observers aren’t certain whether Goodnight will go back to the IPO route. Kirkland & Ellis was outside legal counsel to TPG Capital, which used BMO Capital Markets as its financial advisor, and Vinson & Elkins was outside counsel to Goodnight, which used Jefferies and Credit Suisse as its financial advisors.
Activist investors struck again at the oil sector, this time at Findlay, Ohio-based Marathon Petroleum. Billionaire Paul Singer’s Elliott Management, which holds 2.5% of Marathon, said in a letter Sept. 25 that it wants the company to break up into three separately traded public entities – gas station operator Speedway, midstream provider MPLX and refiner “New Marathon” – that could unlock more than $22 billion in value for shareholders. Two major Marathon shareholders came out in support of the plan and called for CEO Gary Heminger to resign. Elliott said it previously engaged with managers regarding ideas to create value, which they said they would pursue, but “promises have not been kept” and Elliott believes Marathon continues to be “severely undervalued,” the letter said. The letter was penned by Elliott’s John Pike and Phillip Zeigler to Heminger and the board, including its lead independent director James E. Rohr. Jones Day is advising Marathon with attorneys out of Cleveland and New York.
Irving-based Fluor said Sept. 24 it plans to sell off $1 billion in assets as the engineering firm refocuses its efforts on energy, mining and chemicals projects. Fluor CEO Carlos Hernandez said the company is selling off its construction equipment rental business Ameco along with government business and surplus real estate and non-core investments, which will reduce its overhead by $100 million. The company also cut its dividend in half. Lazard is Fluor’s financial advisor on the divestitures. Kevin Hammonds is Fluor’s general counsel in Houston.
Teacher Retirement System of Texas, known as Texas Teachers, said that its private equity returns came in at 4.3% for the second quarter and 10.7% for the 12 months ending June 30, below its benchmarks of 4.8% and 11.9%, PE Hub reported. The $156.4 billion fund’s entire portfolio also came in below its benchmarks, the news service reported. Buyouts said Texas Teachers is selling a portfolio of private equity stakes that could be as large as $3 billion, citing three sources. The publication said the pension fund is over its long-term target allocation to private equity, which could be the motivation for the secondary sale. The system’s portfolio was valued at about $22.8 billion as of June 30, Buyouts previously reported.
A trio of venture and private equity firms in Texas are out fundraising, according to filings last week with the Securities and Exchange Commission. Capital Factory of Austin hopes to bring in $20 million for its sixth fund, according to an SEC filing, while Silverton Partners, also of Austin, is targeting $120 million for its sixth fund. And Dallas private equity firm Energy Spectrum Partners has raised about $922 million for its eighth fund, approaching its goal of $1.3 billion. Its last fund raised $1.225 billion in 2014 and it has $3.5 billion in equity capital commitments. Jackson Walker counseled the firm on its investment in Pinnacle Midstream II this past April.
Callon Petroleum CEO Joe Gatto made the case for the company’s $1.2 billion acquisition Carrizo Oil & Gas last week, saying that the company needs scale to make it more competitive and production from Carrizo’s more mature Eagle Ford Shale would provide steady cash flow to help fund its growth in the Permian Basin. As The Lawbook previously reported, billionaire John Paulson’s hedge fund Paulson & Co. – which holds 9.5% of Callon – came out against the deal, saying the 25% premium was rich given Carrizo’s inferior assets and that Callon would lose its niche as a pure-play Permian operator. Callon’s general counsel is Michol Ecklund and Carrizo’s is Gerry Morton, who also is VP of business development. Kirkland advised Callon on the deal while Baker Botts assisted Carrizo. RBC Capital Markets and Lazard provided financial advice to Carrizo while JP Morgan did so for Callon.
Webster Capital is seeking a buyer for BayMark Health Services, a Lewisville, Texas-based network of opioid treatment centers, according to PE Hub. The company didn’t respond to a request for comment. BayMark acquired Canadian Addiction Treatment Centres and SpecialCare Hospital Management last year. Its general counsel is Susan Meyercord.