Fresh Deals on the Market

Sometimes in private equity, the playbook is buy low, fix it up, and sell high a few years later. And then sometimes it's just... never mind, we're out. Compass Diversified (CODI) acquired Atlanta-based feminine care company The Honey Pot last year for $380 million, and now it's already shopping the business around. Raymond James is handling the sale process, according to Reuters. That's what you'd call a quick turnaround.

In fintech news, Finastra Group Holdings Ltd. has tapped PJT Partners to run an auction for its U.S. banking software unit, Bloomberg News reports. The company was born in 2017 when Misys Group merged with Canadian payments firm D+H, and now it's breaking off pieces. The division up for sale helps community banks and credit unions manage core systems, process payments, and handle customer accounts. Potential buyers are likely sharpening their pencils for a price tag north of $200 million, with both private equity shops and rival software companies expected to take a look. Finastra, which is backed by Vista Equity Partners, is also considering unloading its international universal banking business, which could command more than $1.1 billion.

Deals in Motion

Paramount Skydance Corp. (PSKY) officially went hostile with its bid for Warner Bros. Discovery, Inc. (WBD) on December 8. The offer values Warner Bros. at $30 per share, or roughly $108.4 billion, and it's taking the case directly to shareholders rather than negotiating with the board. This move challenges Warner Bros.' recent agreement to sell its studio and streaming assets to Netflix, Inc. (NFLX). Some Warner Bros. shareholders are holding out hope for an even sweeter deal, but if no white knight emerges, analysts think the stock might stall around $31.25 once the deal speculation plays out.

Perimeter Solutions (PRM) agreed to acquire Medical Manufacturing Technologies, a Charlotte, North Carolina-based provider of medical device manufacturing solutions, for $685 million. Arcline is selling.

Payment giant Stripe has acqui-hired the team behind Valora, a digital wallet startup that had raised $20 million from investors including a16z, Polychain Capital, and SV Angel. Valora CEO Jackie Bona said the move lets the team bring their expertise in web3 and user-first design to Stripe's massive platform. Meanwhile, the Valora app itself is heading back to cLabs, where it was originally incubated, and will continue to be developed there while the team works on Stripe's broader financial infrastructure projects.

Sverica Capital Management announced it's selling its Fund V portfolio company, Coastal Cloud Holdings, to Tata Consultancy Services for $700 million. Coastal, founded in 2012, has grown into one of the largest and fastest-growing Salesforce consultancies in the United States. Guggenheim Securities advised on the transaction, with Choate, Hall & Stewart LLP handling the legal work.

Over in Europe, Iliad is still chasing consolidation in France's crowded telecom market after Altice rejected a €17 billion ($19.96 billion) joint bid from Free-Iliad, Orange, and Bouygues for most of Altice France's SFR assets. Iliad Deputy CEO Aude Durand told the Wall Street Journal that the offer isn't dead yet, arguing that a shared takeover is really the only path forward that doesn't trigger massive antitrust headaches given SFR's market position. Analysts at Barclays and J.P. Morgan seem to agree there's still room for a deal to come together, especially since Altice remains under pressure to sell assets. Any transaction would face serious regulatory scrutiny as European Union officials continue debating the future of telecom consolidation across the bloc.

Deals That Closed

HNI Corporation (HNI) wrapped up its acquisition of Steelcase Inc. (SCS), bringing together two heavyweights in the office furniture world. The combined company will generate pro forma annual revenues of $5.8 billion. Steelcase shareholders are getting $7.20 in cash plus 0.2192 HNI shares for each Steelcase share they own. HNI will keep its headquarters in Muscatine, Iowa, while Steelcase stays put in Grand Rapids, Michigan. To accommodate the merger, HNI's board expanded from 10 to 12 members, adding two independent directors from Steelcase.

Mars Inc. has officially closed its $35.9 billion acquisition of snack maker Kellanova, adding household names like Pringles, Cheez-It, Pop-Tarts, and Rice Krispies Treats to a portfolio that already boasts Snickers, M&M's, Twix, Kind, and Skittles. The deal was first announced in August 2024 and received clearance from the U.S. Federal Trade Commission in June, with all other regulatory approvals falling into place by December 8.

The Kellogg Co. spinoff will fold into Mars' snacking division while maintaining its Chicago headquarters. Kellanova's stock stopped trading on the New York Stock Exchange. The newly combined Mars Snacking unit is expected to generate around $36 billion in annual revenue, putting it in the same league as giants like Nestlé and Mondelez. This is Mars' biggest acquisition since it bought Wrigley for $23 billion back in 2008, and it's the largest deal in the packaged foods sector since the $45 billion Kraft Heinz merger in 2015.

Bankruptcy Watch

Grand Slam Track (GST), the track and field league founded by U.S. Olympian Michael Johnson, has filed for Chapter 11 bankruptcy, according to The Athletic. The league launched earlier this year with $30 million in funding and a $12.6 million prize pool, but it reportedly owes around $19 million to athletes, vendors, and for operational costs. GST secured emergency funding in October and distributed $5.5 million to athletes, covering about half of what they were owed. The bankruptcy filing is designed to allow for a court-supervised reorganization. Despite the financial troubles, GST insists the league isn't shutting down for good and hopes to resume future meets once the debts are sorted out.