Deal Dispatch: From Stellantis To Snyk, Major Companies Consider Exits

New On The Block

• The pitch of turning car-sharing into a profitable business was loud in the early 2000s. Companies like Zipcar were taking off. Since then, they began to resemble a flat tire. Take, for example, Free2move. It wasn’t a profitable venture for owner Stellantis. As a result, it’s being shopped to potential buyers. But it’s not just Free2move that’s the pits. Stellantis’ other brands i.e. Maserati and Alfa Romeo) are struggling, too.
  
• Cybersecurity startup Snyk is considering a buyout offer, The Information learned. Its last valuation was $7.4 billion, but growth has slowed, and plans to go public are not in motion.

• Enamel and glass coatings company Pemco International is for sale, according to PE Hub. Private equity firm KPS Capital Partners LP and Prince International Corp formed the Belgian company two years ago.

• 3i Group is soliciting offers for Evernex, a Paris-based provider of data center maintenance services. Bloomberg reports that the price tag could range between €1.2 billion (US$1.4 billion) and €1.5 billion.

• Ontario Teachers’ Pension Plan Board is considering selling its 60% stake in Portuguese packaging company Logoplaste. The deal could be valued at over €1.7 billion ($2 billion). The Canadian pension fund has engaged banks to advise on the potential sale of its assets. Bloomberg expects a transaction to occur by 2026.

• KKR & Co. (NYSE:KKR) is exploring a potential sale of its 40% stake in Pembina Gas Infrastructure. Reuters put the expected valuation at about $7 billion.

Updates From The Block

• Occidental Petroleum Corporation (NYSE:OXY) shares were trading lower on Thursday. Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK) agreed to acquire its OxyChem business for $9.7 billion in an all-cash deal. Berkshire, which is Occidental's largest shareholder with an approximate stake of 28.2%, will absorb OxyChem as an operating subsidiary. The acquisition marks Berkshire's largest deal since its $11.6 billion purchase of Alleghany in 2022.

• Video game publisher Electronic Arts, Inc. (NASDAQ:EA) is going private in a deal estimated to be worth $55 billion. Silver Lake, led by Egon Durban, partnered with Jared Kushner‘s Affinity Partners and Saudi Arabia's sovereign wealth fund to make the deal happen–with a $36 billion check. Silver Lake is also playing a key role in the approved framework to carve out TikTok's U.S. business from ByteDance, underscoring its renewed focus on major tech deals.

• Private equity firm CPP Investments agreed to invest $1 billion into Houston-based AlphaGen.

• Axcelis (NASDAQ:ACLS) has agreed to join up with semiconductor equipment maker Veeco (NASDAQ:VECO), creating a combined company with an enterprise value of $4.4 billion.

• Corteva (NYSE:CTVA), an Indianapolis agricultural giant, said that it will split up its seed and pesticides businesses into separate listed companies, confirming an earlier WSJ report.

• 26North billionaire Josh Harris‘ firm wants to own Middleby’s (NASDAQ:MIDD) residential kitchen equipment division, which includes luxury brands like Aga, Viking, and La Cornue. Middleby, under pressure from activist investor Garden Investments, plans to spin off this unit into a joint venture with 26North, holding a controlling stake. The deal is valued at around $800 million, The Financial Times reports.

• Coca-Cola (NYSE:KO) wants £2 billion for Costa Coffee, a U.K. coffee chain. Bain Capital is bidding.

• Thoma Bravo agreed to buy PROS Holdings (NYSE:PRO), a Houston-based provider of revenue management software to airlines, for $1.4 billion.

Off The Block

• Mr. Cooper Group Inc’s (NASDAQ:COOP) stockholders approved a $9.4 billion all-stock merger with Rocket Companies Inc. (NYSE:RKT) in September. The deal closed this week with a valuation of $14.2 billion.

Bankruptcy Block

• Rite Aid, once a popular national pharmacy chain known for its in-store ice cream, has officially closed all of its stores. The company filed for Chapter 11 bankruptcy for the second time since 2023, citing financial struggles exacerbated by shifts in the retail and healthcare sectors. CEO Matt Schroeder acknowledged the company's challenges, which ultimately led to the decision to shut down operations.

• Spirit Airlines plans to reduce its fleet by nearly 100 aircraft as part of its Chapter 11 restructuring.

• A bankruptcy judge will allow auto parts supplier First Brands to proceed with the first phase of a $1.1 billion bankruptcy loan. First Brands will now be able to use $500 million to reorganize long-term debt.

For the previous edition of Deal Dispatch, click here.

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