Deal Pipeline
Tuesday 23 February 2016
The following is a list of deals covered in detail by M and A Navigator this week:

-THE ALCOCK GROUP BUYS MINORITY STAKE IN HOMAGE ARTS

US-based private investment firm The Alcock Group has completed an acquisition of a minority stake in Los Angeles film and television company Homage Arts, the firm said.
Founded by Abdo John Hajj in 2013, Homage Arts operates as a creative idea agency that develops and finances film and television ideas for production companies around the world. Hajj currently serves as the CEO of Homage Arts, while continuing to support The Alcock Group with further acquisition opportunities within media and other industries.
Status: Closed

-VERIZON TO ACQUIRE FIBRE BUSINESS FROM XO COMMUNICATIONS FOR USD 1.8BN
US-based broadband and telecommunications company Verizon Communications Inc. (NYSE: VZ) has signed an agreement to purchase US-based IP and Ethernet network operator XO Communications' fiber-optic network business for approximately USD 1.8bn, the company said.
The acquisition is subject to regulatory approval from various governmental agencies and is expected to close in the first half of 2017. Verizon said the transaction would provide it access to XO's fiber-based IP and Ethernet networks, helping to better serve enterprise and wholesale customers.
Status: Agreed

-PHOTOMEDEX TO SELL CONSUMER, PROFESSIONAL BUSINESS FOR USD 48M
US-based skin health company PhotoMedex, Inc. (NASDAQ: PHMD) (TASE: PHMD) has entered into a definitive agreement to sell its consumer products and professional products businesses to Florida-based topical pharmaceutical and personal care products developer DS Healthcare Group (NASDAQ: DSKX), the company said.
Total consideration will be approximately USD 48m, paid in a combination of convertible preferred stock, common stock and a note.
Status: Agreed

-WTI HOLDINGS CLOSES ACQUISITION OF IBM'S WVR BUSINESS
US-based holding company WTI Holdings has completed its acquisition of the IBM WebSphere Voice Response and IBM Unified Messaging for WebSphere Voice Response products, the company said.
A stand alone entity, Blueworx, has been created to focus on the continued advancement of the platform and ensure the success and total satisfaction of every current and future customer.
Status: Closed

-MIDDLE MARKET GROWTH PROGRAM CREDIT LINE FINANCES PREFERRED COMPOUNDING ACQUISITION
US-based The Middle Market Growth Program, jointly managed by Antares and LStar Capital, closed a senior secured unitranche credit facility to support the acquisition of Preferred Compounding by Audax Private Equity, the firms said.
MMGP provides private equity sponsors and borrowers with access to first lien unitranche loans. MMGP does not require rating agency meetings or a syndication process so deals can close in as little as three weeks.
Status: Closed

-GASTAR EXPLORATION TO SELL APPALACHIAN BASIN ASSETS FOR USD 80M
US-based energy company Gastar Exploration Inc. (NYSE MKT: GST) has entered into a definitive purchase and sale agreement to sell certain Appalachian Basin assets primarily located in Marshall and Wetzel Counties, West Virginia, the company said.
Gastar has entered into a PSA with an affiliate of Tug Hill Inc. for the sale of certain of its Marcellus Shale and Utica/Point Pleasant properties for USD 80m, subject to customary closing adjustments. The sale includes substantially all of Gastar's producing assets and proved reserves and a significant portion of its undeveloped acreage in the Appalachian Basin.
Status: Agreed

-THE SAFARILAND GROUP ACQUIRES NEW YORK SAFETY EQUIPMENT RETAILER UNITED UNIFORM
US-based safety and survivability products company The Safariland Group has acquired substantially all of the assets of New York, US-based safety gear retailer and distributor United Uniform Co, Inc., the company said.

United Uniform is a retailer and distributor of equipment, tactical gear and uniforms for law enforcement and public safety professionals in New York State.
Status: Closed

-MODERE ACQUIRES NUTRITIONAL SUPPLEMENT FIRM SAVI HEALTH
US-based social retailer Modere has entered into a definitive agreement to acquire the assets of health and nutritional supplement company Savi Health International, LLC, Modere said.
In partnership with Greg Horn, former chief executive officer of General Nutrition Centers, Savi developed all-natural wellness products formulated to address cellular health using naturally-occurring ingredients present in the Mediterranean diet.
Status: Closed

-VIIV HEALTHCARE BUYS R/D HIV ASSETS FROM BRISTOL-MYERS SQUIBB
UK-based drugmaker GlaxoSmithKline plc's (LSE: GSK) majority owned ViiV Healthcare specialist HIV company has completed two transactions with Bristol-Myers Squibb to acquire the US drugmaker's late-stage HIV R/D assets and its portfolio of preclinical and discovery stage HIV research assets, GSK said.
US drugmaker Pfizer Inc. and China's Shionogi Ltd. are minority shareholders in ViiV Healthcare. Under the terms of the transactions, ViiV Healthcare acquired late-stage HIV R/D assets from Bristol-Myers Squibb for an initial upfront payment of USD 317m followed by development and first commercial sale milestones of up to USD 518m, and tiered royalties on sales.
Status: Closed

-ALKEN ASSETS MANAGEMENT TO VOTE AGAINST WESTERN DIGITAL'S ACQUISITION OF SANDISK
UK-based investment manager Alken Asset Management is planning to vote against US-based storage specialist Western Digital Corp.'s (NASDAQ: WDC) acquisition of SanDisk Corp. (NASDAQ: SNDK) at an upcoming special meeting of Western Digital Shareholders scheduled for 15 March, the firm said.
Alken Asset Management held more than 5m shares of WDC as of 31 December 2015. On 21 October 2015, Western Digital announced its intention to acquire SanDisk for a total consideration of approximately USD 19bn.
Status: Agreed

-APPLIED SOFTWARE ACQUIRES AUTODESK RESELLER FOR MANUFACTURERS
US-based systems integrator Applied Software has acquired US-based Tekni, a reseller of Autodesk software for the manufacturing marketplace, the company said. Since 1989, Tekni has focused on helping companies deploy Autodesk Digital Prototyping solutions, enabling data management and collaboration throughout their operations, from concept to product production.
Status: Closed

-LIVE NATION ENTERTAINMENT ACQUIRES SOUTH AFRICAN CONCERT PROMOTER
US-based live entertainment company Live Nation Entertainment, Inc. (NYSE: LYV) has acquired a controlling interest in South African concert promoter Big Concerts International Proprietary Ltd. the company said.
Big Concerts will continue to be led by Attie van Wyk as chairman and Justin van Wyk as chief executive officer. Upcoming tours for 2016 include Roxette, Rodriguez, Lionel Richie, Chris de Burgh, Josh Groban, Mariah Carey, Iron Maiden and George Benson.
Status: Closed

-AXIOM ZEN ACQUIRES CANADIAN VIRTUAL REALITY STUDIO
US-based venture studio Axiom Zen has acquired Canadian virtual and augmented reality specialist Hammer and Tusk, the company said.
Hammer and Tusk will continue to operate as an independent entity run by its founder, Mack Flavelle, and will leverage Axiom Zen's design, engineering, and product teams. Virtual and augmented reality are hurtling toward the mainstream: a recent study found that 75% of Forbes Most Valuable Brands are currently creating, or investing in, virtual reality.
Status: Closed

-SPECTRIS ACQUIRES SWISS CLEAN ROOM SYSTEMS FIRM CAS
UK-based instrumentation and controls company Spectris plc has acquired Swiss clean room measurement systems supplier CAS Clean Air Service AG, the company said. CAS is based out of its headquarters in Wattwil, Switzerland, and also has five other sites in Stein, Switzerland, Vienna and Innsbruck, Austria and two in Germany.
The company will be fully integrated into Particle Measuring Systems (a Spectris company), a firm in the environmental monitoring industry and a particle counter manufacturer. The CAS name will become a product brand within PMS.
Status: Closed

-WOODFORD ACQUIRES STAKE IN NORWAY'S THIN FILM ELECTRONICS
Norwegian printed electronics company Thinfilm Electronics (OTC: TFECY) has secured USD 42m in new funding from UK-based Woodford Investment Management, which has agreed to acquire 17.8% of the shares. The company said.
Thinfilm has also announced two NFC OpenSense deals, including an exclusive partnership to deliver the technology to clients of Arc, a shopper marketing agency within Leo Burnett, and a collaboration with Constantia Flexibles, a manufacturer of flexible packaging and labels.
Status: Closed

-PROXY ADVISOR ISS RECOMMENDS "FOR" VOTE FROM CORUS SHAREHOLDERS ON SHAW MEDIA ACQUISITION
US-based proxy advisory research firm Institutional Shareholder Services is recommending that shareholders of Canadian media and content company Corus Entertainment Inc. (TSX: CJR.B) vote in favour of the company's proposed acquisition of Shaw Media Inc. at a special meeting to be held on 9 March 2016, Corus said.
On 13 January Corus entered into an agreement to acquire all of Shaw Media Inc. from Shaw Communications Inc. for USD 2.65bn (USD 1.86bn) to be paid through a combination of cash and Corus class B Shares.
Status: Agreed

-RE/MAX TO ACQUIRE NEW YORK REGION MASTER FRANCHISE
US-based real estate franchisor RE/MAX, LLC has entered into an agreement to reacquire the company's master franchise for the state of New York, RE/MAX said.
Pierre Titley, owner of RE/MAX of New York since 1987, agreed to transfer ownership of the region at the end of the month, but will remain the owner of RE/MAX Quebec. Currently, the region includes over 850 agents and nearly 60 independently owned and operated RE/MAX offices from Brooklyn to Buffalo.
Status: Agreed

-DRB CAPITAL ACQUIRES OXFORD INTERNATIONAL GROUP
US-based annuity payments purchaser DRB Financial Solutions LLC has merged the Oxford International Group into DRB Capital's structured settlement and annuity monetisation division., the firm said.
The transaction included a portfolio of annuity payments and a sizable database of annuitants as well as all pending transactions. DRB Financial is a purchaser of annuity payments and other illiquid cash flows.
Status: Closed

-RESMED TO ACQUIRE HEALTHCARE SOFTWARE FIRM BRIGHTREE FOR USD 800M
US-based medical device company ResMed (NYSE: RMD) has inked a definitive agreement to acquire privately held US-based post-acute care software provider Brightree, the company said. Under the terms of the agreement, ResMed will acquire Brightree for USD 800m in cash, which ResMed will fund primarily with debt. Brightree had net sales of approximately USD 113m and EBITDA of about USD 43m in calendar year 2015.
Status: Agreed

-EFFICIENT ADVISORS CLOSES MERGER WITH DISCIPLINED WEALTH STRATEGIES
US-based asset management firm Efficient Advisors, LLC has completed its merger with Texas, US-based investment adviser Disciplined Wealth Strategies, the firm said.
Disciplined Wealth Strategies specialises in providing outsourced, factor-based investment solutions to financial advisors across the country. John Blood, CFA, CFP, founder and president of Disciplined Wealth, will now serve as CEO and CIO. The combined firm manages over USD 1bn in assets and offers services in support of over 100 independent financial advisors nationwide.
Status: Closed

-CREDITO REAL ACQUIRES 70% STAKE IN LATIN AMERICAN CONSUMER LENDER INSTACREDIT
Mexican consumer lender Credito Real, S.A.B. de C.V., SOFOM, E.R. has acquired a 70% stake in Panamanian financial holding company Maravalley Corp., the firm said.
The aggregate consideration payable for this transaction assumes a value of USD 70m, which corresponds to a P/E multiple of 5.5 times 2016 estimated earnings; this multiple might vary depending on the achievement of some profit targets. Additional to this amount, USD 21m will be used to refinance some Instacredit liabilities.
Status: Closed

-MEXICAN POULTRY FIRM BACHOCO ACQUIRES FULLY COOKED CHICKEN PLANT IN US
Mexican poultry company Industrias Bachoco S.A.B. de C.V. (NYSE: IBA) (BMV: Bachoco) has closed the acquisition process of a fully cooked chicken product plant from US-based American Foods Group, the company said. The final value of the transaction was at approximately USD 8m. Bachoco said that the deal was performed through its OK Foods unit, which is located in Arkansas and Oklahoma.
Status: Closed

-NEXTERA ENERGY PARTNERS BUYS OKLAHOMA RENEWABLES PROJECTS
US-based utility operator NextEra Energy Partners, LP (NYSE: NEP) has entered into an agreement with a subsidiary of its sponsor, NextEra Energy Resources, LLC, to acquire the Seiling I and II Wind Energy Centers in Oklahoma, the company said. Seiling I and II offer a combined 299.2mw wind generation site in Dewey and Woodward counties. When completed, the acquisition of these assets will expand NextEra Energy Partners' portfolio of contracted renewable energy projects to approximately 2,509mw.
Status: Agreed

-FOREST CITY CLOSES USD 200M SALE OF MILITARY HOUSING BUSINESS
US-based utility operator NextEra Energy Partners, LP (NYSE: NEP) has entered into an agreement with a subsidiary of its sponsor, NextEra Energy Resources, LLC, to acquire the Seiling I and II Wind Energy Centers in Oklahoma, the company said. Seiling I and II offer a combined 299.2mw wind generation site in Dewey and Woodward counties.
When completed, the acquisition of these assets will expand NextEra Energy Partners' portfolio of contracted renewable energy projects to approximately 2,509mw.
Status: Closed

-SUNCOR ENERGY'S CDN 6.6BN OFFER FOR CANADIAN OIL SANDS EXPIRES
Canadian integrated energy company Suncor Energy Inc.'s (TSX: SU) (NYSE: SU) offer for all of the common shares and accompanying rights of Canadian Oil Sands Ltd. has expired with a total of approximately 84.2% of COS shares equating to approximately 408,097,416 common shares and accompanying rights having been tendered, Suncor said.
Since Suncor's initial take up of shares on Feb. 5, 2016, approximately 11.4% of additional COS shares equating to approximately 55,195,265 common shares and accompanying rights have been tendered.
Status: Agreed

-CUSTODIAN REIT ACQUIRES RETAIL WAREHOUSE IN BANBURY, UK
UK property investment company Custodian REIT (LSE: CREI) has acquired a 34,955 sq ft retail warehouse in Banbury, the company said.
The agreed purchase price of GBP 6.525m (USD 9.32m) was funded from the company's existing debt facilities, resulting in net borrowings increasing to 20.1% loan to value. This property located one mile from junction 11 of the M40 and within walking distance of the town centre and railway station. Nearby occupiers include Wickes, Halfords, Homebase, Dunelm Mill, Topps Tiles and Staples.
Status: Closed

-AURASIAN MINERALS RECEIVES 64.8% OF MOROCCAN MINERALS SHARES IN OFFER
UK-based mining company Aurasian Minerals plc (LSE: AUM) has received acceptances from shareholders of Jersey-based private exploration company Moroccan Minerals Ltd. representing 64.8% of the outstanding shares of MML in relation to the offer from Aurasian for the acquisition of all of the outstanding shares of MML, the company said.
MML and Aurasian have agreed to keep the offer open until 11 March 2016 in order to give the remaining MML Shareholders the opportunity to return their votes.
Status: Agreed

-REGENCY MINES TO ACQUIRE STAKE IN UK OIL PROSPECT
UK-based resource development and investment company Regency Mines Plc has signed binding heads of agreement to acquire a 5% interest in UK-based special purpose company Horse Hill Development Ltd from Angus Energy plc, the company said.
This is in line with the company's strategy to acquire interests in producing or near-production onshore oil and gas assets. HHDL is a special purpose company that owns a 65% participating interest and has the operatorship of licence PEDL 137 and the adjacent licence PEDL 246 in the UK Weald Basin.
Status: Agreed

-NOSTRA TERRA ACQUIRES PERMIAN BASIN PRODUCING ASSETS
UK-based oil and gas exploration and production company Nostra Terra plc (AIM: NTOG) has acquired producing assets in the Permian Basin of New Mexico from Alamo Resources II, LLC, the company said.
Nostra Terra has agreed to pay USD 3m to acquire a 60% WI in producing assets located in the Permian Basin. Of that, USD 2.7m is due by 31 March 2016 and an additional USD 0.3m is due one year after the anniversary of closing, payable in cash or shares in Nostra Terra at the discretion of Nostra Terra.
Status: Closed

-CORAL PRODUCTS ACQUIRES GLOBAL ONE-PAK FOR GBP 3.60M
UK-based injection moulded plastic products maker Coral Products plc has conditionally acquired the entire issued share capital of UK-based lotion pump and trigger sprayer manufacturer Global One-Pak Holdings Ltd. for a minimum consideration of GBP 3.60m (USD 5.14m), the company said.
The consideration is comprised of GBP 2.95m in cash and GBP 0.65m through the issue of 3.25m new ordinary shares to the vendors of GOP at a price of 20 pence per share.
Status: Closed

-HIBERNIA REIT ACQUIRES DUBLIN OFFICE PROPERTY FOR EUR 51.3M
Irish property investor Hibernia REIT plc that it has exchanged contracts to acquire Dublin office property Central Quay for EUR 51.3m (USD 56.43m), the company said. Central Quay is an office building located between Sir John Rogerson's Quay and Hanover Quay in the South Docks area of Dublin. The building was completed in 2007, is a 57,700 sq. ft. office building arranged over six floors with 26 car parking spaces.
Status: Closed

-ROSNEFT MOVES TO UP STAKE IN PETROMONAGAS VENEZUELA JV
Russian oil and gas company Rosneft and joint venture partner PDVSA signed key terms for Rosneft to acquire 23.33% of the share capital in the Petromonagas JV producing extra heavy oil in Venezuela, the company said. Rosneft, which currently owns 16,67% in this joint venture, will pay USD 500m for the additional interest.
After the transaction is completed Rosneft will increase its stake to 40% of JV and PDVSA participation will be reduced to 60%.
Status: Agreed