January 05, 2025 | Read Online

The Week Ahead - January 5th

Ski resort strikes, Winter storm warnings, and NYC Congestion Pricing goes live

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The Week Ahead Of Us 🔍

Welcome back! It's our first Sunday edition of the new year and we're excited to have you with us.

Let's get into it.

U.S. futures are little changed going into Monday. Note, the Market will be closed Thursday in remembrance of President Jimmy Carter.

Here's a look at earnings this week.

Wednesday: Jefferies Financial Group, Albertsons
Thursday: Infosys, Constellation Brands, ServiceTitan, Walgreens Boots Alliance, KB Home, Concrete Pumping Holdings
Friday: UnitedHealth Group, Bank of America, Wells Fargo, BlackRock, Delta Airlines

Here's a look at economic data this week.

Tuesday: November Job Openings (7.7mm est.)
Wednesday: ADP Employment (130k est.), minutes from the Fed's December FOMC meeting
Thursday: Initial jobless claims (previous was 211k)
Friday: Jan. consumer sentiment (74 est.), December employment (155k est.), U.S unemployment rate (4.2% est.), U.S. hourly wages growth (0.3% est.)

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Tonight's Headlines 🍿

Microsoft plans to spend a whopping $80N on AI data centers this year. In the year ending in June 2024, Microsoft spent $50B on capex, with most of it related to server farm construction.
Park City in Utah, owned by Vail Resorts, is dealing with labor strikes with the Park City Ski Patrol Union that is disrupting the vacation of a lot of Wall Streeters. The union is pushing for a wage increase from $21/hour to $23/hour
A Massive Winter Storm today has resulted in Kansas, Arkansas, Kentucky and Virginia declaring states of emergency. 60 million people across 30 states will be impacted
Jobless claims hit a 8-month low of 211k (vs. est. of 221k). The decline suggests resilience in the labor market, despite broader economic uncertainties and concerns about potential layoffs in key sectors such as tech and finance
Higher for Longer: Richmond Federal Reserve President Tom Barkin says he prefers to keep rates restrictive for longer, citing risks to inflation and growth
Centerview Partners is open to exploring options, including an IPO or stake sale, per the WSJ
The Atlanta Fed has lowered their 4Q GDP outlook to 2.4%. This compares to 3.2% a month ago
Carvana is being shorted by famed short-seller Hindenburg Research. The report criticizes the company's financial health, operational inefficiencies, and $800mm of undisclosed related party loan sales
Tesla reported on Thursday its first annual drop in deliveries. In 2024, Tesla delivered 1.79mm cars, a modest drop from the 1.81mm deliveries it made in 2023, with 4Q deliveries light of consensus. Analysts point to increased competition as a headwind for Tesla
Diamond Sports is emerging from bankruptcy protection, now operating as Main Street Sports, while under the FanDuel Sports Network name, and with $9B of debt now reduced to $200mm following a series of restructuring. The NBA, NHL, and MLB regional sports network is a now a shell of itself
New York City's Controversial Congestion Pricing began today, here's a rundown from Morning Brew on what this means:

Morning Brew ☕️ @MorningBrew

NYC congestion tolls start tomorrow for motorists entering Manhattan at 60th St. or below:

• Cars/SUVs/pickups: $9
• Non-commuter buses: $14.40
• Big rigs: $21.60
• Motorcycles: $4.50

The MTA wants to raise $15 billion for mass transit improvements and ease gridlock

2:54 PM • Jan 4, 2025

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66 Replies

DraftKings is planning a $20/month subscription model for select NY betters to get better odds. Critics are cracking jokes about how gambling has turned into a subscription service
Bad News for Beer: The Surgeon General put out a report stating that cancer risk warning labels should be put on alcoholic beverages. The report notes that "Alcohol is a well-established, preventable cause of cancer responsible for about 100,000 cases of cancer and 20,000 cancer deaths annually in the United States"
Getty Images and Shutterstock are exploring a merger, sending both stocks higher. While this merger would draw antitrust scrutiny, there are also worries about how AI has rocked the stock-photos industry
President Biden has blocked the $14.9B sale of U.S. Steel to Japanese acquirer Nippon Steel, despite pushback from key advisors
U.S. mortgage application volume for the two weeks ended Dec. 27, 2024, dropped 21.9% y/y. While this is a slow time of the year, 30-year, fixed rate, mortgage rates increased to end the year at 6.97%
Delta tops the list as the most on-time U.S. airline, with over 85% reliability

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M&A Transactions💭

De Zwaluw Logistiek, provider of logistics services and a subsidiary of Hummingbird Ventures, has reached a definitive agreement to be acquired for $7.8B by SBS Europe. The transaction values the company at $9.75B.

Retool Japan, developer of a digital management tool and a subsidiary of Scala Group (TKS: 4845), reached a definitive agreement to be acquired for $280.0M by Tekmira Holdings (TKS: 3627).

Lincstech, manufacturer of printed wiring boards, has reached a definitive agreement to be acquired for $258.26M by Global Brands Manufacture (TAI: 6191). Mitsubishi UFJ Morgan Stanley Securities advised on the sale.

Grupo Empresarial Palacios Alimentacion, producer of sausages and other food products, has reached a definitive agreement to be acquired for $446.13M by JB Capital Markets, Ion-Ion, Label Investments, Corporacion Financiera Guadalmar, and GPF Capital Partners.

O2 Power, operator of the renewable energy platform, reached a definitive agreement to be acquired for $1.47B by JSW Neo Energy. Barclays advised on the sale.

Consolidated Communications, provides communication services, was officially acquired for $2.05B by Searchlight Capital Partners and British Columbia Investment Management. EV/EBITDA was 12.15x and EV/Revenue was 2.84x. Rothschild & Co. advised on the sale.

King's Town Bank (TAI: 2809), provides banking products and services, has reached a definitive agreement to be acquired for $1.83B by SinoPac Financial Holdings (TAI: 2890). EV/Net Income was 10.49x and EV/Revenue was 6.07x.

Novibet, operator of a sports betting platform, has entered into a definitive agreement to be acquired for $227.43M by Allwyn.

Marinus Pharmaceuticals (NAS: MRNS), a clinical stage biopharmaceutical company, has entered into a definitive agreement to be acquired for $151.0M by Immedica Pharma. EV/Revenue was 4.8x. Barclays advised on the sale.

La Vista Apartments, a 460 unit apartment community, was acquired for $116.0M by WestView Capital Partners.

The Consumer Mems Microphones Business of Knowles was acquired by Syntiant for $150.0M. Jefferies advised on the sale.

The Electricity Distribution Business Unit of Enel (MIL: ENEL) was acquired by A2A (MIL: A2A) for $1.26B.

Vodafone Italia, provider of telecommunication services and a subsidiary of Vodafone Group (LON: VOD), was acquired for $8.29B by FASTWEB. UBS Group advised on the sale.

Vistra Vision, operator of integrated retail electricity and zero-carbon generation platform, was acquired for $5.46B by Vistra Energy (NYS: VST). Evercore Group and PJT Partners advised on the sale.

TRANZACT, provider of sales and marketing services, was acquired for $632.4M by GTCR and Recognize Partners. Bank of America and Lazard advised on the sale.

Tianjin TSKF Pharmaceutical, manufacturer and distributor of pharmaceutical drugs, was acquired for $613.16M by Haleon (LON: HLN).

Quisitive Technology Solutions (TSX: QUIS), a Microsoft solutions provider, has entered into a definitive agreement to be acquired for $117.65M by H.I.G. Capital. EV/EBITDA was 12.62x and EV/Revenue was 0.99x. Canaccord Genuity and William Blair & Company advised on the sale.

Kerry Dairy Holdings, provider of dairy products, was acquired by Kerry Co-op for $366.63M.

Hydradyne, distributor of a motion control distribution company, was acquired for $272.0M by Applied Industrial Technologies (NYS: AIT).

Global Experience Specialists, operator of a global exhibition and trade show management company, was acquired for $535.0M by Truelink Capital. EV/Revenue was 0.71x. Moelis & Company advised on the sale.

EthosEnergy Group, provider of rotating equipment services, was acquired for $380.0M by One Equity Partners.

DelaGet, developer of restaurant analytics software, was acquired for $132.0M by Par Technology (NYS: PAR). Piper Sandler advised on the sale.

Bericap North America, manufacturer of plastic closures and a subsidiary of Amcor, was acquired for $122.0M by Bericap Holding. EV/Revenue was 1.22x.

American Savings Bank, provider of banking services, was acquired for $450.0M by an undisclosed investor. Guggenheim Partners and Piper Sandler advised on the sale.

AdvancedMD, provider of cloud-based practice management, entered into a definitive agreement to be acquired by Francisco Partners for 1.125B. Bank of America advised on the sale.

Windstar Medical, manufacturer of pharmaceutical products, was acquired for $302.73M by Merz Pharma. Alantra advised on the sale.

Permanent General Companies, provider of insurance services, was acquired for $1.7B by Sentry Insurance. EV/Revenue was 12.14x. Goldman Sachs advised on the sale.

Griffiths & Armour, operator of an independent insurance brokerage, was acquired for $442.29M by Aon (NYS: AON).

SafeSend, operator of a financial platform, was acquired for $600.0M by Thomson Reuters (TSE: TRI).

Retina Consultants of America, operator of a network of retina specialists, was acquired for $4.6B by Cencora (NYS: COR). Rothschild & Co. and Goldman Sachs advised on the sale.

Profire Energy (NAS: PFIE), an oilfield technology company, was acquired for $118.401M by CECO Environmental (NAS: CECO). EV/EBITDA was 10.62x and EV/Revenue was 1.97x. Stephens advised on the sale.

The Logistics Portfolio of PGIM was acquired by Indurent for $252.62M.

The Retirement Plan Business Unit of OneAmerica Financial Partners was acquired for $210.0M by Voya Financial (NAS: VOYA). Goldman Sachs advised on the sale.

Nexans AmerCable, manufacturer of engineered, jacketed electrical cable products, was acquired for $280.0M by Mattr Infratech (TSE: MATR). TD Securities advised on the sale.

Manitex International, engages in the design, manufacturing, and distribution of engineered lifting solutions, was acquired by Tahano (TKS: 6395) for $223.0M. EV/EBITDA was 9.35x and EV/Revenue was 0.89x.

The Private Brand Tea Business of Harris Tea was acquired for $205.0M by Treehouse Foods (NYS: THS). Wells Fargo advised on the sale.

Gravity Water Intermediate Holdings, provider of crude, gas, and water midstream services, was acquired by Delek Logistics Partners (NYS: DKL) for $285.0M.

Crane Composites, developer and manufacturer of fiber-reinforced plastic panels, was acquired for $227.0M by KPS Capital Partners.

Carbon6, developer of an e-commerce software bundler technology, has reached a definitive agreement to be acquired for $210.0M by SPS Commerce (NAS: SPSC).

The Global Property Tax Business of Altus Global was acquired by Ryan for $486.59M. Evercore Group advised on the sale.

Profi Rom Food, operator of a chain of convenience stores, was acquired for $1.3B by Koninklijke Ahold Delhaize (AMS: AD).

Mavely, developer of an online community-based shopping platform, was acquired for $250.0M by Later.

Private Placement Transactions💭

Vermont Electric Power Company, operator of a high-voltage electricity transmission system, raised $150.0M of venture funding from undisclosed investors.

LandSpace, developer of liquid fuel rocket engines, raised $123.78M of venture funding from National Manufacturing Transformation and Upgrade Fund.

IM Motors, provider and developer of electric vehicles, raised $1.29B of Series B venture funding led by BOC Financial Assets Investment.

Syntiant, developer of neuromorphic semiconductors, raised $190.0M of Series D1 and D2 venture funding led by Khazanah Nasional at a pre-money valuation of $480.0M.

Fervo Energy, operator of geothermal power projects, raised $135.0M of Series D venture funding led by Devon Energy.

Performance Trust Capital Partners, operator of a brokerage and financial advisory firm, raised $151.63M of venture funding from undisclosed investors.

Patho Care, developer of a spectroscopy-based testing platform, raised $150.15M of recapitalization venture funding from Hamershlag Private.

Ge Si Hang Tian, developer of intelligent manufacturer solutions, raised $137.33M of Series A1 venture funding led by China Development Bank Capital, CDB Venture, and SIMIC Capital.

KoBold Metals, operator of a mineral exploration company, raised $537.0M of Series C venture funding led by T. Rowe Price and Durable Capital Partners.

Electra, developer of alternative steelmaking technology, raised $180.42M of venture funding from undisclosed investors.

Alzheon, developer of a small molecule-based drug discovery platform, raised $125.0M of Series F venture funding led by Alerce Medical Technology Partners.

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