Category Archives: News

Ratos AB: Solid earnings and important acquisitions in a challenging quarter

Ratos

Q2 2022

  • Adjusted1) EBITA amounted to SEK 963m (1,035)
  • Operating profit amounted to SEK 925m (915)
  • Profit for the period amounted to SEK 689m (679)
  • Diluted earnings per share amounted to SEK 1.83 (1.84) for continuing operations
  • Cash flow from operations amounted to SEK 824m (1,188)

 

January–June 2022

  • Adjusted1) EBITA amounted to SEK 1,215m (1,211)
  • Operating profit amounted to SEK 930m (1,069)
  • Profit for the period amounted to SEK 551m (2,412). The sale of Bisnode had a positive effect on preceding year’s profit with SEK 1,816m
  • Diluted earnings per share amounted to SEK 1.17 (1.85) for continuing operations
  • Cash flow from operations amounted to SEK 335m (578)
  • Leverage excluding financial leasing amounted to 0.6x (-0.7x)

 

Significant events during and after the end of the period

  • On 16 May, Ratos acquired 74% of NVBS Rail Group Holding AB (NVBS), which is now part of the Construction & Services business area
  • On 1 June, Ratos divested all of its shares in Dun & Bradstreet. The transaction strengthened Ratos’s cash position by approximately SEK 700m and had an impact of SEK -18m on EBITA for the second quarter of 2022
  • On 15 June, Ratos signed an agreement to acquire 70% of the consulting firm Knightec, which will become part of the Industry business area. The acquisition is expected to be completed at the beginning of August
  • On 1 July, NVBS acquired the civil engineering company TKBM Entreprenad AB

1)  For definition see page 22 in the report. EBITA for Q2 2022 is adjusted with revaluation of listed shares SEK -18m (-113). EBITA for Q1-2 is adjusted with revaluation of listed shares SEK -118m (-131) and restructuring costs of SEK -130m attributable to Diab.

“Sales totalled SEK 8,420m, up 20% year on year. During the quarter, NVBS was acquired and an agreement to acquire Knightec was signed. Both companies are an excellent fit with our industrial strategy with synergies. The acquisitions will be followed by a number of initiatives in their respective industries. We are delivering solid earnings and are growing in line with our financial targets, despite the challenges in our operating environment. Adjusted EBITA for the second quarter amounted to SEK 963m, down 7% year on year. Plantasjen was impacted by adverse weather in the quarter, inflation and the diminishing impact of the pandemic.”

Jonas Wiström, President and CEO, Ratos

A telephone conference will be held today at 09.00 CEST to present the result. The presentation will be held in English and will also be available as an audiocast on Ratos website, www.ratos.com.

Link to the audiocast: https://financialhearings.com/event/44161

Those who wish to participate in the conference call in connection with the presentation are welcome to call the number below. To make sure that the connection to the conference call works, call a few minutes before the conference starts to register.

Dial-in number:
UK: +44 333 300 9263
SE: +46 8 505 583 54
US: +1 646 722 4903

Representatives of the media are welcome to contact Josefine Uppling, Vice President Communication, for interview requests.

Stockholm 18 July 2022
Jonas Wiström
President and CEO

For further information, please visit www.ratos.com or contact:
Josefine Uppling, Vice President Communication and Sustainability
+46 76 114 54 21
josefine.uppling@ratos.com

Jonas Ågrup, CFO and IR
+46 8 700 17 00

Jonas Wiström, President and CEO
+46 8 700 17 00

This is information that Ratos AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 a.m. CEST on 18 July 2022.

About Ratos
Ratos is a business group consisting of 14 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2021, the companies have approximately SEK 25 billion in net sales. Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.

Categories: News

Intelerad announces significant investment from TA to accelerate growth

HG Capital

TA joins Hg and ST6 in supporting Intelerad to advance clinical efficiency and patient care through innovative medical imaging technology.

RALEIGH, NC and MONTREAL, CANADA, July 14, 2022 – Intelerad, a leading global provider of enterprise medical imaging solutions, today announced that TA Associates (“TA”), a leading global growth private equity firm, has signed a definitive agreement to make a growth investment in the company. TA joins Intelerad’s majority investor, Hg, a leading software and services investor, and ST6, a highly experienced team of software operating executives and minority investor. The transaction is expected to close in the third quarter of 2022 pending customary regulatory approval.

“We’re excited to welcome TA as a partner on our continued journey to improve healthcare through innovative technology. With their deep industry knowledge and experience scaling healthcare technology companies, the addition of TA and continued support from Hg will help Intelerad to significantly advance our growth strategy and value to customers.”

Mike Lipps, CEO of Intelerad

Founded in 1999, Intelerad provides medical imaging software and enterprise workflow solutions to healthcare providers worldwide. Headquartered in Raleigh, NC and Montreal, Canada, the company serves nearly 2,000 customers around the world, including radiology groups, outpatient imaging centers, hospitals and healthcare systems, managing over 50 billion medical images and empowering more than 300,000 clinicians, who collectively read over 140 million exams on Intelerad’s platform each year.

“We have followed Intelerad for several years and continue to be impressed by its differentiated solutions, strong growth and leadership position.”

Mark Carter, a Managing Director at TA.

“Building on its momentum in the sector, we believe Intelerad is well positioned to further strengthen and expand its suite of solutions. We are supportive of Intelerad’s vision and excited to join the team as it enters the next phase of its growth journey,”

Ethan Liebermann, a Managing Director at TA

“Intelerad has built a platform that is making a difference in patient care by enabling significant efficiencies and speed-to-results for healthcare organizations. We’re proud to have supported the Intelerad team, who have achieved significant progress in such a short period, doubling the size of the business in two years.”

Hector Guinness and JB Brian, Partners at Hg

Globally, demand for scalable imaging and workflow solutions continues to increase as imaging sites consolidate and the volume of procedures grows, placing greater pressure on productivity. Intelerad’s growth strategy is to provide customers with one of the most scalable imaging platforms in the world, and as a result, Intelerad customers are already benefiting from an expanded suite of solutions, best-in-class flexibility, and increased support which will enable them to drive clinical efficiency and focus on providing enhanced patient care.

“The COVID-19 pandemic has intensified the challenges facing this industry and accelerated the demand to improve patient care. Intelerad has recognized this need and is actively working to make its customers more productive, more agile, and more responsive. We look forward to partnering with TA to promote organic development and pursue strategic growth opportunities. The new investment from TA will help Intelerad further deliver the critical value that our customers need right now.”

Mark Friedman, Intelerad Executive Chairman and Managing Director at ST6.

Kirkland & Ellis is providing legal counsel to TA. Skadden, Arps, Slate, Meagher & Flom LLP, DLA and McCarthy Tétrault LLP are providing legal counsel to Hg and Intelerad.

For further details:

Hg
Tom Eckersley
+44 (0)208 148 5401

Brunswick
Azadeh Varzi
+44 (0)207 404 5959

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Dutch Climate Action Fund aims to reduce CO2 emissions in the Netherlands

DIF

DIF Capital Partners (“DIF”) and NN Group have launched the Dutch Climate Action Fund. NN Group is a cornerstone investor with an initial commitment of EUR 125 million, and DIF will manage the fund.

The Dutch Climate Action Fund will invest in projects and companies active in climate change solutions that envisage to support the Dutch energy transition. The fund is rising to this challenge by targeting investments that aim to support the reduction of carbon emissions in the Netherlands. These investments are targeted to be pioneers in their markets as well as investments in more traditional clean energy sectors. The fund may invest in energy efficiency, e-mobility, energy storage and hydrogen, as well as in renewable energy generation such as onshore wind and solar farms. Renewable energy generation is expected to be a catalyst for electrification of industries, buildings and transportation, driving a significant part of emission reduction and therefore investment needs. The Dutch Climate Action Fund focuses on equity investments of up to EUR 25 million per investment.

Specifically, the fund’s investments target to support and promote the United Nations Sustainable Development Goals number 7 (affordable and clean energy), number 11 (sustainable cities and communities) as well as number 13 (climate action). Actual contribution to these SDGs, as well as reporting against the progress of achieving selected KPIs in relation to these SDGs, are targeted to be assessed for each investment opportunity.

Allard Ruijs, Partner of DIF Capital Partners: ‘We are honored to partner with NN Group on this Dutch initiative to further drive the energy transition and the reduction of carbon emissions in our home market through a focused investment strategy and leveraging on DIF’s long standing track record in the global energy infrastructure markets.’

Jelle van der Giessen, Chief Investment Officer of NN Group: ‘Climate change is one of the biggest challenges of today; weather extremes due to climate change in the form of heat waves, drought and storms are only increasing. In addition to decarbonising our investment portfolio, NN Group has a clear commitment to double our investments in climate solutions by 2030. Companies and households may be able to reduce their carbon footprint, but still need energy. As long as this energy is derived from fossil fuels, we as a society will face difficulties achieving net-zero. Our investments in the Dutch Climate Action Fund will support and accelerate the Dutch energy transition, essential to ultimately reach net-zero.’

About DIF Capital Partners

DIF Capital Partners is a leading global independent investment manager, with ca. EUR 11 billion in assets under management across ten closed-end infrastructure funds and several co-investment vehicles. DIF invests in infrastructure companies and assets located primarily in Europe, the Americas, and Australia through two complementary strategies:

  • Traditional DIF funds, of which DIF Infrastructure VI is the latest vintage, target core infrastructure equity investments with long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and energy transition projects (incl. renewable energy).
  • DIF CIF funds, of which DIF CIF III is the latest vintage, target equity investments in small to mid-sized core-plus infrastructure companies in the telecom, energy transition, and transportation sectors.

DIF Capital Partners has a team of over 190 professionals, based in eleven offices located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney, and Toronto. For more information please visit www.dif.eu.

Contact: Thijs Verburg, t.verburg@dif.eu.

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KKR Closes $2.1 Billion Asset-Based Finance Fund

KKR

First Dedicated Fund to Pursue Compelling Asset-Backed Opportunities Globally

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the final close of KKR Asset-Based Finance Partners (“ABFP” or the “Fund”), KKR’s first fund dedicated to asset-based finance investments “ABF.” The approximately $2.1 billion fund will commit capital globally to privately originated and negotiated credit investments that are backed by large and diversified pools of financial and hard assets, with attractive risk-adjusted returns.

“The $4.5 trillion ABF market is one of the most compelling and fastest-growing opportunities within our private credit business today,” said Dan Pietrzak and Matthieu Boulanger, Partners and Co-Heads of Private Credit at KKR. “At the same time, investors are increasingly looking for solutions that can deliver collateral-based cash flows with attractive yield and downside protection in today’s highly volatile and inflationary environment. We are seeing growing recognition of ABF as a standalone asset class that can deliver attractive risk-adjusted returns. Through the close of ABFP, we are pleased to play a leading role in meeting this demand while also serving the financing needs of consumers and businesses globally.”

“There are significant and growing opportunities for scaled private capital across the ABF universe,” said Avi Korn, Chris Mellia, and Varun Khanna, Managing Directors who oversee the ABF investment strategy at KKR. “Demand has been driven by global bank deleveraging, the need for fast and sophisticated credit solutions and the inability of traditional capital to provide them. We believe that the global footprint and breadth of our ABF strategy positions us well to serve this need and to source differentiated opportunities with compelling risk-adjusted returns.”

ABFP received strong support from a diverse group of new and existing investors, including public and corporate pensions, sovereign wealth funds, commercial banks, insurance companies, asset managers, and family offices. KKR invested approximately $150 million alongside external investors through its balance sheet and employee commitments.

“We are thrilled with the demand and support that we’ve seen from new and existing Limited Partners. There is clearly excitement around this strategy and the benefits that it can provide, especially in today’s environment,” said Kevin McMahon, a Managing Director who leads capital raising and business development for KKR’s credit business.

KKR has deployed more than $6 billion across 54 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The Firm has approximately $35 billion in ABF assets under management and a team of approximately 35 dedicated ABF investment professionals globally.

KKR’s ABF portfolio focuses on four key themes: Consumer/Mortgage Finance, Hard Assets, Small-Medium Enterprise and Contractual Cash Flows. KKR has established lending businesses in partnership with experienced industry management teams to pursue opportunities in lending markets that the firm finds attractive. ABF platforms and partnerships today provide KKR with access to lending opportunities across a diverse range of industries, including aviation, real estate, automotive finance, mortgages, royalties and equipment leasing, among others.

KKR established its credit platform in 2004, and made its first private credit investment in 2005. Over the past 17 years, KKR has built one of the largest private credit platforms globally with the ability to invest across the capital structure and liquidity spectrum. These capabilities are paired with KKR’s approach to proprietary sourcing, capital preservation and active portfolio management to seek out long-term capital appreciation and attractive risk-adjusted returns. Today, KKR manages approximately $184 billion of credit assets globally, including approximately $71 billion in private credit, approximately $102 billion in leveraged credit and approximately $10 billion in strategic investments, as of March 31, 2022. KKR has a team of approximately 170 credit investment professionals across nine cities in seven countries, including approximately 90 private credit investment professionals globally.

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Media:
KKR Americas
Julia Kosygina and Miles Radcliffe-Trenner
+1 212-750-8300
Media@kkr.com

KKR Asia Pacific
Anita Davis
+852 3602 7335
Anita.Davis@kkr.com
or
Wei Jun Ong
+65 6922 5813
WeiJun.Ong@kkr.com

KKR EMEA
Alastair Elwen / Sophia Johnston
Finsbury Glover Hering
+44 20 7251 3801
KKR_LON@finsbury.com

Source: KKR

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Ratos company Aibel wins major offshore wind contract at Hornsea

Ratos

Aibel has been awarded a contract by the world leader in offshore wind, Ørsted, for two platforms for the Hornsea 3 project in the UK sector of the North Sea. Each platform represents a major (value over NOK 2.5 billion) contract for Aibel.

The contract is an EPCI contract where Aibel’s responsibility is for engineering, procurement, construction, and installation in the delivery of two HVDC converter platforms. Hornsea 3 is Ørsted’s third project in the Hornsea Zone, where Hornsea 1 is operational and Hornsea 2 currently is nearing operation.

The two platforms, Hornsea 3 Link 1 and 2, will follow Aibel and Hitachi Energy’s proven concept that has made both companies leading suppliers of HVDC converter platforms for the European offshore wind industry. The two platforms will have a combined capacity of up to 2.852 GW to serve the offshore wind turbines in the Hornsea 3 project. This makes the project the single largest offshore wind project in the world. It is expected to produce enough energy to meet the average daily needs of over 3 million UK homes.

“The development of Aibel’s offering towards renewable energy has been successful and now constitutes the majority of the company’s order book. The new contract shows the company’s strength and ability. As owners we are impressed, Aibel really has the future ahead of it,” says Christian Johansson Gebauer, member of the board of Aibel and President Business Area Construction & Services at Ratos.

“We are proud and honored to enter a new collaboration with Ørsted – a relationship that has matured over the last 36 months. With the contract, we are consolidating our position as a leading supplier of HVDC solutions in the European offshore wind segment. And we accelerate our transformation towards renewables and low carbon solutions. Our order backlog now holds approx. 60% related to offshore wind and electrification of energy infrastructure,” says Aibel’s President and CEO, Mads Andersen.

The platform topside for the Hornsea 3 Link 1 is scheduled to arrive in Haugesund in Q1 of 2025. Forecast sailaway to the Hornsea field is in 2026.

Read more about the project and Ørsted here:
www.orsted.co.uk

For further information, please contact
Josefine Uppling, VP Communication, Ratos, +46 76 114 54 21
Mads Andersen, President and CEO, Aibel, +47 982 96 501

About Ratos
Ratos is a business group consisting of 14 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2021, the companies have approximately SEK 25 billion in net sales. Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.

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Applied Adhesives Acquires Engineered Adhesive Systems

Arsenal Capital Partners

Minnetonka, MN– APPLIED Adhesives, a premier adhesive solutions provider in North America, today announced that it has completed its acquisition of Engineered Adhesive Systems (EAS), a North American supplier of adhesives and adhesive dispensing equipment solutions located in Grandville, MI. This acquisition strengthens the Company’s commitment to providing industry-leading products, technical expertise, and relentless service to its customers.

“Engineered Adhesive Systems shares APPLIED’s commitment to providing customized adhesive and equipment solutions that support our customers’ unique needs and continued growth,” said John Feriancek, President and CEO of Applied Adhesives. “We are pleased to welcome Engineered Adhesive Systems’ to the APPLIED team and look forward to continuing to deliver outstanding service, support, and expertise to all of Engineered’s customers.”

“Engineered Adhesive Systems built its customer base on unmatched service and personal relationships with our customers. During a new era where these seem to be taking a back seat, we have been able to expand with a company that shares our same values and goals,” said Josh Lambert, President of Engineered Adhesive Systems. “Our existing and new customers will be pleased with the service and attention that they will continue to receive daily from APPLIED. We look forward to a bright future with a service-oriented partner.”

About APPLIED Adhesives
APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider in North America. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com or find us on LinkedIn.

About Engineered Adhesive Systems
Engineered Adhesive Systems, founded in 2007, has been solving adhesive & dispensing problems by taking the time to understand customers’ needs and delivering trusted solutions. The company prides itself on implementing adhesive solutions that are fully customized, no matter the complexities. For more information, please visit engineeredadhesivesystems.com.

APPLIED Adhesives Media Contact:
David Posadas
Vice President of Marketing
dposadas@appliedproducts.com

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Gimv transfers stake in the Eurocept group – active in

GIMV

Topic: Divestment

Throughout the Gimv investment period, the Eurocept group (“Eurocept”) has grown impressively by broadening its medical homecare services in the Benelux and by transforming its pharma company into a global rare disease player.

In 2014 Gimv acquired a minority stake in Eurocept Group, consisting of Eurocept Homecare, Da Vinci Clinic and Eurocept Pharmaceuticals. After a period of successful growth and business development, Gimv has decided to sell its share back to the founder Mike Van Woensel. Eurocept Homecare (Houten – NL, https://www.eurocept-homecare.nl/) is a pioneer in the provision of specialist medical home treatments in the Netherlands. In recent years, the company has been able to expand its product and service portfolio from pharma distribution and infusion therapies at the patient’s home to a full ‘Hospital-at-home’ offering with nutrition, home/kidney dialysis, infusion care, complex wound care and oncology aftercare in the Benelux. Besides organic growth the company also pursued an active buy-and-build strategy, including the strategic acquisitions of a.o. Medizorg, Jadim and the Da Vinci Clinic. The latter consisting of a chain of outpatient clinics for complex wound care and hyperbaric oxygen therapy (a.o. for onco aftercare). All this is done in close cooperation with hospitals, medical specialists as well as pharma companies via the so-called care pathways. This has resulted in an enormous increase of quality care for patients with often an irremediable scenario. This has turned Eurocept Homecare into one of the most innovative frontrunners in hospital-at-home care in Europe.

Eurocept Pharmaceuticals (Ankeveen – NL, https://www.euroceptpharma.com) is specialized in the development, production, registration, pharmacovigilance, marketing and sales of (mainly) rare disease pharma products. Over the past years significant efforts and investments have been made in developing a platform infrastructure from outsourced production to marketing & sales of specialty pharma products. In addition, the company acquired new assets (i.e. pain relief, metabolic diseases) and expanded its geographic footprint from Benelux to a worldwide player successfully filing its first product in the USA in 2022. Eurocept Pharmaceuticals leverages its portfolio of owned assets and selective exclusive distribution acquisitions to continue to grow rapidly in the coming years. Eurocept Pharmaceuticals has continuous focus on patients with the goal to simplify the treatment relationship between patient and physician by improving accessibility, quality and reliability of (rare disease) pharmaceuticals.

Mike van Woensel, CEO and founder of Eurocept Group, says: “Gimv has always supported our ambitions of growth and assisted the leadership teams in strategic choices. We have had years of great partnership building on each other’s strengths to fulfill the needs of patients and develop the business. We are amongst others proud at the support received regarding innovation such as hemodialysis at home and on building our own specialty pharma platform and portfolio. Together we have built a leading company, putting patients at the heart of all we do, that is now ready for the next stage of growth”.

Elderd Land, Partner in Gimv’s Healthcare platform, says: “We are proud that we were able to support Eurocept as an innovative company in its expansion of its service offering and geographies covered, resulting in a beautiful growth story. The vision and determination of Mike van Woensel and his teams were absolutely vital in this respect. Through our collaboration we have developed a scalable company that is well positioned to grow further, offering better quality, more affordable and effective care to more patients”.

The transaction is subject to the usual terms and conditions, including the approval of the healthcare authorities. It has no significant impact on the Net Asset Value of Gimv as of 31 March 2022. No further financial details will be disclosed.

 

Read the full document

English – French – Dutch
 

Gimv

Karel Oomsstraat 37, 2018 Antwerpen, Belgium

www.gimv.com

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123Dentist and Altima Dental Announce a Strategic Merger with Support from Peloton Capital, KKR, and Heartland Dental

KKR

123Dentist combines with Altima Dental and Lapointe Group, solidifying its position as one of the largest dental support organizations in Canada

TORONTO–(BUSINESS WIRE)–123Dentist, Altima Dental, and Lapointe Group have entered into a merger agreement to create one of the largest dental support organizations in Canada, with nearly 350 supported dental practices. The transaction is being financed through equity capital provided by 123Dentist’s existing financial partner, Peloton Capital Management; new investors KKR, a leading global investment firm, and Heartland Dental, a KKR portfolio company and the leading dental support organization in the U.S.; and Sentinel Capital Partners, Altima Dental’s existing financial partner.

123Dentist will continue its dentist-first, patient-focused growth strategy and pursue attractive opportunities with dentists looking for long-term partnership solutions that provide flexibility and autonomy to operate their dental practices in a manner that reflects the unique needs of each clinic and dentist partner. This includes opportunities for clinic level ownership by dentists, a feature incorporated at a majority of 123Dentist’s supported practices today and designed to promote the continued delivery of high-quality care to patients. 123Dentist’s leading platform provides its supported practices a wide range of administrative support services facilitated through a team of locally based regional managers and support centres in Vancouver, Toronto, and Montreal.

“We expect this merger to benefit Canadian dentists, dental professionals and patients alike, greatly expanding support services for an already thriving dentist community that focuses on the delivery of exceptional care, improving access to high quality dentistry services, and increasing opportunities for career advancement and mentorship for our team members,” said Dr. Amin Shivji, CEO of 123Dentist.

The values and operating philosophies of 123Dentist align closely with those of Altima Dental, a leading dental support organization founded in 1993 and currently comprised of over 100 dental practices. As a result of this transaction, the combined business will have a national footprint and support dental practices that provide a wide range of dental care to more than 800,000 Canadian patients, with over 2.5 million patient visits annually.

“As a dentist-led organization for nearly 30 years, we know how important it is for patient care to have the dentist perspective when building a successful platform of supported dental practices. This is one of the many reasons why this combination will enable our supported dentists to continue to deliver an exceptional patient experience to Canadians,” said Drs George Christodoulou and Sven Grail, co-Founders and co-CEOs of Altima Dental. “Now, as part of the 123Dentist family, we are incredibly well-positioned to further develop our capabilities as one of the leading dental support organizations in Canada.”

Heartland Dental to support the expansion of education, training, supplies and equipment strategic sourcing

As part of this transaction, Heartland Dental and 123Dentist will work together to facilitate the expansion of education and training at 123Dentist for its supported dentists, dental hygienists, dental assistants, and administrative team members. 123Dentist will gain access to Heartland Dental’s world-class continuing education programs to expand the capabilities of its supported practices, improve the patient experience, and provide supported dentists the tools to enhance the quality of care. Additionally, Heartland Dental’s deep relationships with leading dental manufacturers and distributors will support an expansive, world-class formulary of clinical supply, equipment, and clear aligner options to 123Dentist supported dentists and hygienists.

“This is an important strategic partnership for Heartland Dental and our first outside of the U.S. We have always respected the dentist-led successes of 123Dentist and Altima Dental and believe this is a great opportunity to not only invest in 123Dentist but also bring our full suite of capabilities to Dr. Amin Shivji and his team across all aspects of non-clinical support, anchored by our 25 years of experience,” said Pat Bauer, Heartland Dental President and CEO.

Peloton Capital Management and KKR to provide further industry expertise and financial support

Toronto-based private equity firm Peloton Capital Management, which first partnered with 123Dentist in June 2019, will be raising additional funds to support the transaction. “This is a transformative transaction for 123Dentist, and we look forward to continuing to support Dr. Amin Shivji and the management team,” said Steve Faraone, Managing Partner at Peloton Capital Management. “123Dentist has established itself as one of the largest dental support organizations in Canada, providing a sustainable partnership model that allows its dentist partners to put patient care at the forefront. Expanding the relationship with Pat Bauer, Dr. Rick Workman, and the Heartland Dental team will be an incredible benefit to 123Dentist, allowing the team to learn from them to support its growth.”

KKR, which is acquiring an interest in 123Dentist through its investment funds, brings deep health care and dental industry expertise. Since acquiring a majority interest in Heartland Dental in 2018, KKR has helped the company scale and double the number of practices it serves to over 1,600 in 38 states. Vishal Patel, a Managing Director at KKR, said “we believe this is an excellent strategic partnership that shares a common mission of supporting dentists providing high-quality dental care to Canadians. Working alongside Dr. Amin Shivji and the talented teams from 123Dentist, Altima Dental and Lapointe Group, as well as Peloton and Heartland Dental, the company is primed to scale to the benefit of thousands of supported dentists and patients across Canada.”

Sentinel Capital Partners, a New York-based private equity firm that invested in Altima Dental in December 2016 as well as multiple dental support organizations over the last 20 years, will also maintain a minority ownership position in the combined entity, alongside the founders of both Altima Dental and Lapointe Group. “We are grateful for the strong partnership we have had with the founders and management teams at Altima Dental and Lapointe Group,” said Paul Murphy, Partner at Sentinel Capital Partners. “We are looking forward to supporting Dr. Amin Shivji and the combined 123Dentist team as they continue to build a leading dentist-centric organization.”

The transaction is subject to customary closing conditions, including clearance under the Competition Act (Canada), and is expected to close in the third quarter of 2022.

Advisors

RBC Capital Markets acted as financial advisor to 123Dentist. KPMG LLP and E&Y LLP acted as accounting and tax advisors, Torys LLP acted as legal advisor on the transaction, and Miller Thomson LLP served as corporate legal advisor to 123Dentist.

Houlihan Lokey acted as financial advisor to Altima Dental. Stikeman Elliott LLP and Kirkland & Ellis LLP were legal advisors and Grant Thornton LLP was tax advisor to Altima Dental on the transaction.

About 123Dentist
123Dentist is a leading dental support organization in Canada. It has grown from a single practice in Vancouver, owned by CEO Dr. Amin Shivji and two partners, to more than 250 supported practices and 3,500 team members. 123Dentist was founded on two key principles: putting patients above all else; and that supported dentists and staff are the most important factors in keeping patients happy. 123Dentist’s vision is to be the dental support community all Canadian dentists and dental professionals want to belong to. 123Dentist offers alternative partnership models to meet the needs of each individual dentist, including the opportunity to retain ownership of the clinic. This unique model enables supported dentists to focus on providing optimal care to patients, while an experienced team provides a wide range of support services. 123Dentist is a winner of Canada’s Best Managed Companies program for 2022.
For more information, please visit: 123dentist.com

About Altima Dental Canada
Altima Dental is one of Canada’s longest-standing premier dental support organizations, founded and led by dentists, Dr. George Christodoulou and Dr. Sven Grail, who recognize the aspiration of providing exceptional healthcare and achieving personal and professional advancement. Altima Dental focuses on supporting superior patient care, best clinical practices, and true partnership with dentists. Altima Dental was named 2021 Best Workplaces in Health Care.
For more information, please visit: altimadentalpartners.com

About Lapointe Group
Founded in 1987 by Larry and Yves Lapointe, Lapointe Group has been serving professionals and patients for 35 years. The Lapointe Group joined Altima Dental in 2018 and operates the Lapointe Dental Centres, a 100% Quebec banner of the Lapointe Group, with over 35 dental practices that provide the infrastructure for the practice of dental health professionals, offering a wide range of integrated services that enable dentists and denturists to optimize their practice and direct their full focus on patient care. The Lapointe Group also operates a high-tech integrated dental lab, Summum Dental Laboratory, including over 80 dental technicians, and expertise in all types of dental prosthetics.
For more information, please visit: centreslapointe.com

About Peloton Capital Management
Peloton Capital Management (PCM) is a private equity firm that uses a long-term investment philosophy and sector-focused strategy to partner with founders and management teams to help build exceptional businesses and create attractive returns for investors. PCM’s primary focus is investing in services businesses within the Healthcare, Financial, and Consumer verticals in North America. Headquartered in Toronto, Canada, PCM was founded and is led by a team with extensive private equity experience.
For more information, please visit: pelotoncapitalmanagement.com

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.
For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at kkr.com and on Twitter @KKR_Co.

About Heartland Dental
Heartland Dental is a leading dental support organization in the United States providing non-clinical, administrative support services. What started from the entrepreneurial spirit of Dr. Rick Workman, DMD, with his single dental practice, has evolved into affiliating with over 2,400 supported doctors in over 1,600 locations across 38 states. The company is majority owned by KKR, a leading global investment firm.
For additional information, please visit: heartland.com

About Sentinel Capital Partners
Sentinel specializes in buying and building midmarket businesses in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, going-private transactions, and structured equity investments of established businesses with EBITDA of up to $80 million. Sentinel also invests in special situations, including balance sheet restructurings, operational turnarounds, and minority junior capital solutions.
For more information, please visit: sentinelpartners.com

Contacts

Media Contacts:

For 123Dentist:
Media and Public Relations
604-553-9007
media@123dentist.com

For Altima Dental:
Media and Public Relations
416-785-1828
mediarelations@altima.ca

For Peloton Capital Management:
Jodi Echakowitz
Boulevard Public Relations
416-271-7250
jodi@boulevardpr.com

For KKR:
Julia Kosygina
212-750-8300
media@kkr.com

For Heartland Dental:
Jessica Thompson
561-690-1465
media@heartland.com

For Sentinel Capital Partners:
Roland Tomforde
212-232-2356
rtomforde@broadgate.com

Categories: News

Pegasus Merger Co. Announces Completion of Consent Solicitations, Amendment of Tender Offers and Termination of Change of Control Offers

Apollo

NEW YORK, July 13, 2022 (GLOBE NEWSWIRE) — Pegasus Merger Co. (the “Company”), an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc., announced today that, according to information provided by Global Bondholder Services Corporation, the Information and Tender Agent for the Company’s previously announced cash tender offers (together, the “Tender Offer”) and consent solicitations (together, the “Consent Solicitation”), as of 5:00 p.m., New York City time, on July 12, 2022, the Company had received tenders and consents from holders of $766,221,000 in aggregate principal amount of Tenneco Inc.’s (“Tenneco”) outstanding 5.125% Senior Secured Notes due 2029 (the “5.125% Notes”), representing approximately 95.78% of the total outstanding principal amount of the 5.125% Notes, and tenders and consents from holders of $489,332,000 in aggregate principal amount of the 7.875% Senior Secured Notes due 2029 (the “7.875% Notes” and together with the 5.125% Notes, the “Notes”), representing approximately 97.87% of the total outstanding principal amount of the 7.875% Notes.

As a result, Tenneco and the trustee under each applicable indenture executed supplemental indentures relating to the 5.125% Notes and the 7.875% Notes, respectively, on July 12, 2022 (together, the “Supplemental Indentures”) to effect the Proposed Amendments. The Proposed Amendments eliminate the requirement to make a “Change of Control Offer” in connection with Tenneco’s proposed merger with the Company (the “Merger”) and make certain other customary changes for a privately-held company to the “Change of Control” provisions in the indentures governing the Notes. Each Supplemental Indenture provides that the Proposed Amendments will not become operative unless and until the 5.125% Notes or the 7.875% Notes, as applicable, representing at least a majority in aggregate principal amount of the respective Notes are accepted for purchase by the Company pursuant to the terms of the Tender Offer and Consent Solicitation.

In addition, the Company has amended the terms of the Tender Offer to extend the early tender deadline from 5:00 p.m., New York City time, on July 12, 2022 to 5:00 p.m., New York City Time, on July 19, 2022 (as so extended, and as may be further extended, the “Early Tender Date”).

The table below sets forth the consideration payable in connection with the Tender Offer:

Notes CUSIPs Tender
Consideration (1)		 Early Participation
Premium (1) (2)		 Total
Consideration
(1)(2)(3)
$800,000,000
5.125% Senior Secured Notes due 2029		 CUSIP: 880349 AT2;
U88037 AG8		 $982.50 $30.00 $1,012.50
$500,000,000
7.875% Senior Secured Notes due 2029		 CUSIP: 880349 AS4;
U88037 AF0		 $982.50 $30.00 $1,012.50

(1)  For each $1,000 principal amount of Notes, excluding accrued but unpaid interest, which interest will be paid in addition to the Tender Consideration or Total Consideration, as applicable.

(2)  Payable only to holders who validly tender (and do not validly withdraw) Notes prior to the Early Tender Date.

(3)  The Early Participation Premium is included in the Total Consideration.

Holders tendering after the Early Tender Date have until the Expiration Date, unless extended or earlier terminated, to tender their Notes pursuant to the Tender Offer. Holders who validly tender additional Notes after the Early Tender Date and before the Expiration Date will receive the Tender Consideration listed above, which does not include the Early Participation Premium. The Withdrawal Deadline was July 12, 2022, at 5:00 p.m., New York City time. As a result, Notes tendered pursuant to the Tender Offer may not be withdrawn and the Consents delivered pursuant to the Consent Solicitation may not be revoked, except as required by law.

Consummation of the Tender Offer and payment for the Notes validly tendered pursuant to the Tender Offer are subject to the satisfaction of certain conditions, including, but not limited to, the consummation of the Merger and a financing condition. The Company reserves the right, in its sole discretion, to waive any and all conditions to the Tender Offer. The Company intends to further extend the Expiration Date, without extending the July 12, 2022 Withdrawal Deadline (unless required by law), to have the Settlement Date coincide with the closing of the Merger. The completion of the Merger and settlement for Notes tendered and not withdrawn is currently expected to occur in the second half of 2022.

On June 27, 2022, concurrently with, but separate from the Tender Offer and the Consent Solicitation, the Company commenced offers to purchase for cash any and all of Tenneco’s outstanding 5.125% Notes and 7.875% Notes at a purchase price equal to 101% of the aggregate principal amount of each series of Notes repurchased (collectively, the “Change of Control Offer”), plus accrued and unpaid interest to, but excluding, the date of purchase. Because the requisite consents with respect to each series of Notes have been received and each Supplemental Indenture has been executed, the Company is terminating the Change of Control Offer.

Except as set forth herein, all other terms, provisions and conditions of the Tender Offer and the Consent Solicitation will remain in full force and effect as set forth in the Company’s Offer to Purchase and Consent Solicitation Statement, dated June 27, 2022 (as amended or supplemented from time to time, the “Statement”). The complete terms and conditions of the Tender Offer and Consent Solicitation are described in the Statement, copies of which may be obtained at no charge from Global Bondholder Services Corporation. All capitalized terms used but not defined herein shall have the same meaning ascribed to them in the Statement. The Company reserves the right to further amend the terms of the Tender Offer and Consent Solicitation, to further extend the Expiration Date for the Tender Offer and Consent Solicitation or to waive any and all conditions to the Tender Offer and Consent Solicitation, in its sole discretion, at any time.

Requests for documents relating to the Tender Offer and the Consent Solicitation may be directed to Global Bondholder Services Corporation, the Information and Tender Agent, at (866) 654-2015 or (212) 430-3774 (Banks and Brokers). BofA Securities, Inc. and Citigroup Global Markets Inc. are acting as Dealer Managers for the Tender Offer and the Consent Solicitation. Questions regarding the Tender Offer and the Consent Solicitation may be directed to BofA Securities at (980) 388-0539 (collect) or (888) 292-0070 (toll free) and Citigroup Global Markets Inc. at (212) 723-6106 (collect) or (800) 558-3745 or by email to ny.liabilitymanagement@citi.com.

None of the Company, Tenneco, the Dealer Managers and Solicitation Agents, the Information and Tender Agent, or the trustees with respect to the Notes is making any recommendation as to whether Holders should tender any Notes in response to the Tender Offer. Holders must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of Notes to tender.

This press release is for informational purposes only and is not an offer to buy, nor the solicitation of an offer to sell any of the Notes. No offer, solicitation or purchase will be made in any jurisdiction in which such an offer, solicitation or purchase would be unlawful. The Tender Offer and Consent Solicitation is being made solely by the Statement. The full details of the Tender Offer and Consent Solicitation, including complete instructions on how to tender the Notes, are included in the Statement. Holders of the Notes are strongly encouraged to carefully read the Statement because it contains important information.

Forward Looking Statements

The above information includes “forward looking” statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the Tender Offer, the Consent Solicitation and the intended completion of the Merger. Such statements only reflect the Company’s best assessment at this time and are indicated by words or phrases such as “plans,” “intends,” “will” or similar words or phrases. These statements are based on the Company’s current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent to transactions of this nature, including, without limitation, whether or not the Company completes the Tender Offer and Consent Solicitation on terms currently contemplated or otherwise and whether or not the Merger is consummated. The Company is under no obligation to (and specifically disclaims any such obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

About Apollo

Apollo is a global, high-growth alternative asset manager. In the asset management business, Apollo seeks to provide its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, Apollo’s investing expertise across its fully integrated platform has served the financial return needs of its clients and provided businesses with innovative capital solutions for growth. Through Athene, Apollo’s retirement services business, it specializes in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Apollo’s patient, creative, and knowledgeable approach to investing aligns its clients, businesses it invests in, its team members, and the communities it impacts, to expand opportunity and achieve positive outcomes. As of March 31, 2022, Apollo had approximately $513 billion of assets under management. To learn more, please visit www.apollo.com.

Apollo Contacts

For investor inquiries regarding Apollo, please contact:

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com


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Source: Apollo Global Management, Inc.

Categories: News

Apollo Funds Announce $175 Million Strategic Investment in Summit Ridge Energy, a Leading Owner-Operator of Community Solar

Apollo
Investment builds on Apollo and Summit Ridge’s shared commitment to support the clean energy transition

NEW YORK and ARLINGTON, Va., July 13, 2022 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) and Summit Ridge Energy, LLC (“Summit Ridge”) announced today that funds managed by Apollo affiliates (the “Apollo Funds”) have agreed to make a $175 million strategic investment in Summit Ridge, a leading owner-operator of community solar assets.

Since launching in 2017, Summit Ridge has formed two joint ventures totaling over $1 billion in permanent project capital and has grown its portfolio of solar projects in operation or under construction to more than 300 MW. By the end of 2023, Summit Ridge expects to have more than 500 MW of solar and 100 MWh of battery storage projects online providing energy savings to approximately 175,000 residential and commercial customers. With the investment from the Apollo Funds, Summit Ridge will look to further expand its geographic footprint and continue to scale its platform.

Community solar is a rapidly growing segment of the renewables market that allows individuals, businesses, nonprofits and other groups to participate in the clean energy economy by subscribing to local solar farms at discounted rates to traditional utilities. Community solar projects have increased access to clean energy savings in urban and low-to-moderate income markets. Since 2018, the installed capacity of community solar has skyrocketed, a trend that is expected to continue as consumers become more environmentally conscious, solar economics improve and commitments to the energy transition increase across the country.

Wilson Handler, Apollo Partner, said, “Summit Ridge is an ideal partner for Apollo in the community solar segment as a first mover with a flexible, fully-integrated business model and a proven management team. With this investment, we see tremendous opportunity to access a high-growth segment of the renewables market while also producing positive environmental and social outcomes for local stakeholders. We look forward to working with Steve and the rest of the Summit Ridge team to execute on its current pipeline while exploring additional opportunities to create value.”

Summit Ridge Energy CEO Steve Raeder said, “Summit Ridge is on a strong trajectory and we are excited to welcome Apollo as a new partner. Apollo’s long track record of sustainable investing, coupled with its operational expertise and significant resources, are an excellent match for Summit Ridge’s fast paced growth and leading position in the clean energy economy.”

Corinne Still, Apollo Partner, said, “We are pleased to work with Summit Ridge to expand access for underserved communities to participate in the clean energy transition. Community solar offers compelling benefits for individuals, households and businesses alike. In supporting Summit Ridge’s continued growth, we expect to have a significant positive impact on communities by facilitating increased uptake of renewable energy sources, creating local jobs and developing sustainable infrastructure.”

As a result of the investment by the Apollo Funds, Apollo Partners Corinne Still and Wilson Handler will join the Summit Ridge Energy Board of Directors. Summit Ridge Energy CEO, Steve Raeder, will continue to serve as the board’s chairman.

The transaction underscores Apollo’s commitment to driving a more sustainable future and long track record of investing in or lending to companies supporting the clean energy transition. Earlier this year, Apollo launched its Sustainable Investing Platform, which targets to deploy $50 billion in clean energy and climate capital over the next five years and sees the opportunity to deploy more than $100 billion by 2030. Over the last five years, Apollo deployed over $19 billion1 into energy transition and sustainability-related investments, supporting companies and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.

Vinson & Elkins served as legal counsel to the Apollo Funds in the transaction. Citibank N.A. served as lead financial advisor and Saul Ewing served as legal counsel to Summit Ridge.

________________________
1 As of December 2021. Reflects (a) for equity investments: (i) total enterprise value at time of signed commitment for initial equity commitments; (ii) additional capital contributions from Apollo funds and co-invest vehicles for follow-on equity investments; and (iii) contractual commitments of Apollo funds and co-invest vehicles at the time of initial commitment for preferred equity investments; (b) for debt investments: (i) purchase price on the settlement date for private non-traded debt; (ii) increases in maximum exposure on a period-over-period basis for publicly-traded debt; (iii) total capital organized on the settlement date for syndicated debt; and (iv) contractual commitments of Apollo funds and co-invest vehicles as of the closing date for real estate debt; (c) for SPACs, the total sponsor equity and capital organized as of the respective announcement dates; (d) for platform acquisitions, the purchase price on the signed commitment date; and (e) for platform originations, the gross origination value on the origination date.


About Apollo
Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2022, Apollo had approximately $513 billion of assets under management. To learn more, please visit www.apollo.com.

About Summit Ridge Energy
Launched in 2017, Summit Ridge Energy is the nation’s leading owner-operator of community solar assets. Through dedicated funding platforms, the team develops, acquires and finances projects within the rapidly growing solar energy and battery storage sectors. By the end of 2023, Summit Ridge expects to have more than 500 MW of solar and 100 MWh of battery storage projects online providing energy savings to approximately 175,000 residential and commercial customers. Learn more at srenergy.com.

Apollo Contact Information
For Investors:
Noah Gunn, Global Head of Investor Relations
(212) 822-0540
IR@apollo.com

For Media:
Joanna Rose
Global Head of Corporate Communications
(212) 822-0491
Communications@apollo.com

Summit Ridge Energy Contact Information
For Business Development:
business@srenergy.com

For Media:
Isaac Steinmetz
Antenna Group for Summit Ridge Energy
(646) 883-3655
press@srenergy.com

 


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Source: Apollo Global Management, Inc.

Categories: News

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