New On The Block
- Bain Capital's Chindata China data center business boasts a valuation of about 30 billion yuan ($4.2 billion). Bloomberg reports that the potential buyers include Range Intelligent Computing, ByteDance, Guangdong HEC, Youzu Interactive, Beijing Capital and Inesa Group. Discussions are ongoing; no final deal yet.
Updates From The Block
- PepsiCo Inc (NASDAQ:PEP) is investing $585 million to raise its Celsius stake to 11%. Celsius will buy PepsiCo's Rockstar Energy brand in the U.S. and Canada, while PepsiCo will distribute Celsius's Alani Nu brand. Celsius shares are up about 120% year-to-date, while PepsiCo is down 2%. Analysts speculate a full Celsius takeover could follow.
- Barclays PLC (NYSE:BCS) will sell its Entercard Group stake to Swedbank AB for about 2.6 billion SEK ($273 million). Entercard is considered a non-core operation.
- Desjardins Global Asset Management will acquire Guardian Capital Group (TSX:GCG) for C$1.67 billion, expanding its Canadian footprint.
- Coterie, a diaper brand that raised $30 million from investors including Airbnb (NASDAQ:ABNB), Karlie Kloss and Ashley Graham, is up for sale. Mammoth Brands is reportedly interested.
- U.S. biofuels producer Poet will buy an Obion, Tennessee-based ethanol plant from Green Plains for $190 million in cash.
- AbbVie Inc. (NYSE:ABBV) will acquire Gilgamesh Pharmaceuticals Inc.’s lead investigational candidate for moderate-to-severe major depressive disorder (MDD). The deal, valued at up to $1.2 billion, includes an upfront payment and development milestones for the bretisilocin program. Gilgamesh will spin off a new entity, Gilgamesh Pharma Inc., to manage employees and a collaboration with AbbVie. The acquisition builds on its 2024 collaboration to advance next-generation psychiatric therapies.
Off The Block
- Private equity firm Sycamore Partners has completed its $23.7 billion takeover of Walgreens Boots Alliance. The pharmacy giant is officially delisted from Nasdaq. Sycamore has no prior health care experience, but it has historically focused on retail. New CEO Mike Motz, formerly head of U.S. retail at Staples, will lead the company. Former CEO Tim Wentworth stays on the board. Sycamore may consider selling Walgreens' specialty pharmacy Shields to reduce debt. It has already disclosed plans to sell VillageMD, which includes Village Medical, Summit Health and CityMD. The transaction, announced earlier this year, marks the largest retail LBO ever, with Walgreens generating more annual revenue than any company previously acquired by private equity.
Bankruptcy Block
- Montreal-based SSENSE is filing for bankruptcy protection under Canada's Companies' Creditors Arrangement Act (CCAA) to retain control of its assets and operations. CEO Rami Attallah stated the move aims to stabilize the business, protect value and develop a restructuring plan. The court is expected to decide the path forward within a week. Financial troubles follow earlier layoffs and stem partly from Trump's 25% tariffs on Canadian imports and the upcoming end of the U.S. $800 "de minimis" exemption. Attallah called the situation an immediate liquidity crisis with no short-term solution. Normal operations and salaries continue until further notice.
- Merit Street Media, led by talk show host Dr. Phil, is facing allegations of orchestrating a bankruptcy "scheme" to shuffle staff and assets into a shiny new venture. The company, dubbed Envoy Media, coincidentally launched the day before the Chapter 11 filing, the Independent reported. Trinity Broadcasting (TBN) calls it "reprehensible conduct," while Professional Bull Riders (PBR) claims texts from Merit Street's COO show the company planned the bankruptcy to dodge lawsuits and debt. Merit Street claims $100 million in debt from TBN, while TBN and PBR allege Dr. Phil's team tried to avoid financial obligations. Meanwhile, depositions are getting dramatic: Dr. Phil showed up, but his team allegedly dragged their feet on producing emails and texts. “The pattern is so striking that it is more than mere déjà vu,” TBN stated.
For the previous edition of Deal Dispatch, click here.
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