Campbell’s Soup to Sell Bolthouse Farms Brand in Refocusing Effort
Pitchbook data reveals that $43.6 billion in capital was spent on 27 M&A deals throughout last week, $28.4 billion more capital than the week before but on two fewer deals. Chevron (NYS: CVX) shelled out $33 billion to acquire Texas-based Anadarko Petroleum (NYS: APC) in the week’s largest deal.
Transportation Space Highlights Last Week’s M&A Activity
Data from Pitchbook shows that $15.2 billion of capital was invested across 29 M&A deals last week, $4.4 billion less capital on two more deals than the previous week. The largest two deals during the week were Stonepeak Infrastructure Partners’ $3.6 billion LBO of Oryx Midstream Partners and the $2.44 billion acquisition of AmeriGas Partners by UGI Utilities. AmeriGas is a publicly traded propane distributor, and Oryx is a natural gas collection group. The transportation space was an active sector, as A&S Kinard and Buckler Transport were acquired by Day & Ross Freight; TFI International acquired Nebraska-based Aulick Leasing and its manufacturing business, ShurAul; and Providence Equity Partners acquired transportation software provider GlobalTranz.
Mergers & Acquisitions: Manufacturing Sector Sees Continued Strong Activity in the M&A Space
Pitchbook data reveals that $19.6 billion of capital was invested across 27 M&A transactions last week, twelve more deals but $17.2 billion less capital than in the week prior. The largest deal was publicly traded Centene’s corporate acquisition of WellCare Health Plans, also a publicly traded company, for $15.3 billion. The manufacturing vertical has been busy in 2019 through the end of last week, posting 48 transactions and $19 billion capital invested in LBOs and corporate acquisitions.
Initial Public Offerings: Lyft Follows Through with Long-Awaited IPO
According to the New York Stock Exchange website, two companies went public last week, the same figure as the week before. However, those two companies, Lyft and Precision BioSciences, combined raised more than in the prior week, raising $2.3 billion and $126 million, respectively. Lyft has been a highly anticipated IPO since the beginning of 2018, and the results of its IPO are indicative of it. The company priced its IPO at $72 per share, well above its initial estimates after a roadshow in which the firm received commitments in excess of expectations. As of trading close on Friday, Lyft was valued at approximately $26.5 billion.
Economy: U.S. Fourth Quarter Economic Growth Revised Downward
Among news last week:
Activity for initial public offerings remained at low levels in February, with 15 U.S. companies going public, raising a total of $887 million in capital. IPO fundraising is down 72.9% from last February and Is down 90% to $1.3 billion for the first two months of 2019 compared to the first two months of 2018. The end of 2018 and beginning of 2019 are well off of recent highs set in the early summer last year. However, month-to-month, the trend has shifted upward, rising 120% from the $403 million raised in January.
Last week, it was revealed that Pinterest had confidentially filed with the SEC to go public, seeking a $12 billion valuation and joining the collection of tech IPOs slated for 2019. The hot tech startups in the U.S. have stayed private for much longer than traditional companies, as a flurry of private capital has kept them afloat during the last decade. Last September, Pinterest surpassed 250 million monthly active users and grew revenues 50% in 2018 alone.
Last week, three companies priced their IPOs to go public: TCR2 Therapeutics, Stealth BioTherapeutics and Avedro, under the tickers TCRR, MITO and AVDR, respectively. All three companies operate in the healthcare industry, marking the second week in a row that three healthcare companies have gone public. In total, the three companies will raise $223 million in new capital.
Last week, three healthcare companies went public, raising $527.4 million in funding. Gossamer Bio (NAS: GOSS), Harpoon Therapeutics (NAS: HARP) and Alector (NAS: ALEC) all went public on the Nasdaq exchange and raised $276 million, $75.6 million and $175.8 million, respectively.
Last week’s lone IPO was New Fortress Energy LLC, which raised $280 million in funding. The company is an integrated gas-to-power company that builds infrastructure for reliable energy supply. Also, German automaker Volkswagen is planning to list its trucking unit, Traton, in April this year. They expect the IPO can raise €5 billion to €6 billion and give the subsidiary a €25 billion valuation. In the U.S., Slack, which is one of the many tech firms planning IPOs this year, announced that it has topped 10 million daily active users on its platform. The announcement lends further credibility to its direct listing plans for the second quarter
Adena Friedman, the Chief Executive at the Nasdaq stock exchange indicates that market volatility is not necessarily to blame for the lack of IPOs at the start of 2019. She says interest to go public is still there, but the SEC, which ultimately approves a company’s IPO plans, is closed with the government shutdown.
Another week without IPOs, but Silicon Valley tech giants continue to prep for their debuts later this Spring. Pinterest, a social media platform for sharing recipes, home design ideas and style inspiration, has begun interviewing bankers to underwrite its listing.