M&A Round-Up: Week of August 21st, 2023
Apax Acquires Bazooka Candy Brands
On August 14th, former 华特迪士尼公司 CEO Michael Eisner struck a deal to sell Bazooka Candy Brands to buyout firm Apax Partners in a transaction valued at $700M, including debt. Bazooka Candy Brands is known for its popular candies such as Ring Pops, Juicy Drop, and Push Pop, among others.
The deal marks the end of Eisner’s 15-year ownership of the candy maker, after initially buying the company for $385M back in 2007. The company was originally known for its Topps collectibles business, which consisted of baseball cards featuring legends such as Babe Ruth. Topps was sold as a standalone business to Fanatics for $500M in 2022.
Oxy Acquires Carbon Engineering in $1.1B Deal
U.S. oil and gas producer Oxy announced that they have reached an agreement to acquire Canadian-based Carbon Engineering for $1.1B. Carbon Engineering is known for its direct air capture (DAC) technology that strips carbon dioxide from the atmosphere.
Still in its early stages, Carbon Engineering’s DAC technology will require significant investment, likely in the billions, in order to reach a stage where the company can sustainably commercialize the technology. Despite the significant investment required, Oxy will be aided by government subsidies, with the U.S. Department of Energy (DOE) announcing a $1B grant that will go towards funding the commercialization of Oxy's newly acquired technology. The Biden administration views DAC technology as a key tool in helping the US meet its 2050 net zero goals.
ALDI USA to Buy Southeastern Grocers
On August 16th, Aldi’s US unit struck an agreement to buy Winn-Dixie and Harveys Supermarkets owner, Southeastern Grocers, in a move that significantly expands its presence in the southeast US. The transaction will see Aldi acquire over 400 locations, bringing their total US store count to 2,400. Financial details of the transaction were not disclosed.
The acquisition may impact the Federal Trade Commission 's antitrust analysis of the Kroger - Albertsons deal as it further consolidates competition in the grocery market. Seven US state officials have already proposed to block Kroger’s and Albertsons' merger.
Bain Capital Acquires Fogo de Ch?o
Bain Capital announced that they have reached an agreement to acquire Brazilian steakhouse chain Fogo de Ch?o in a $1.1B deal. This transaction highlights a major success for prior owners, Rh?ne Group , who took the renowned chain private for $560M back in 2018.
Under Rhone’s ownership, the steakhouse’s financial performance improved, posting annual revenue growth of 15% since 2021. Despite the company’s strong performance, Rhone was unable to achieve its primary goal of relisting Fogo de Ch?o after IPO markets collapsed.