January 02, 2025 | Read Online

What You Need To Know to Start 2025

Catching you up on what you missed and what's ahead

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Welcome back! Happy New Year and thanks for tuning in! We're really excited for what we've got planned in 2025 and love having you with us.

Let's get into it.

The Latest in the Markets 📉

The expected "higher for longer" rate environment has chilled the usual Santa Clause Rally, with U.S. treasuries on the rise, with the 10-year hovering past 4.5%.

We still had a great year in the markets, with the S&P 500 ending 2024 up 24%, but down 3.5% from all time highs given the recent sluggishness.

While some notable investors are calling for a pullback in early 2025, and while there's uncertainty around the path of inflation and rates, it's important to remember that we have a solid economy, with future tailwinds coming from improvements in AI and deregulation by the Trump administration.

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The Headlines You Need To Catch Up On 🍿

The U.S. Equity Markets will be closed Thursday, January 9th in remembrance of U.S. President Jimmy Carter who passed away on December 29th
Serta was overturned: The 5th U.S. Circuit Court of Appeals on Tuesday rejected Serta Simmons's restructuring plan that disadvantaged non-participating lenders. This is a big win for leveraged loan lenders, taking away non-consenting, non-pro-rata uptiers from the toolkit of distressed borrowers
MetLife acquired PineBridge Investments for $800mm, in a deal that may be reach $1.2B if certain financial metrics and an earnout are met. This is a big move for MetLife, who had been looking to expand their credit capabilities
Netflix's NFL slate of games was a homerun. In a big shift for NFL viewing, and in competition with the NBA Christmas slate, Netflix had over 30mm global viewers
Kim Kardashian is stepping away from her private equity fund. Axios has reported that Kim is no longer an executive officer at the consumer-focused fund she co-founded in 2022 with former Carlyle MD Jay Sammons. SKKY Partners had an underwhelming fundraise, only raising $121mm, vs. a $1B target
President Trump is urging the Supreme Court to pause the TikTok ban. The ban is set to take place January 19th, 1 day before President Trump takes office. Jeffrey Yass, whose fund owns 15% of the company, donated $96mm to republicans this election cycle
The U.S. Treasury was hit with a Chinese cyberattack, with state-sponsored hackers gaining access to unclassified documents
Bill Ackman went to X to promote his long position in Fannie Mae and Freddie Mac, arguing that these businesses will be privatized by the Trump administration
Ukraine has officially stopped receiving natural gas from Russian gas firm Gazprom, with Ukraine refusing to renew a transit agreement given the war between the countries. Ukraine has received its first shipment of liquified natural gas from the U.S. as of yesterday
A Boeing 737-800 plane crashed in South Korea on Sunday, killing 179 people onboard. The cause of the crash is still unclear
New York Hotel rooms hit a record rate in 2024, averaging $417/day as of September 2024
Dockworkers are unsatisfied with the latest round of negotiations. After months of negotiations with shipping lines and terminal operators, U.S. longshoremen are threatening another walkout
MSG Networks, home of the Knicks and Rangers games, goes dark for Altice USA's Optimum cable customers due to a carriage dispute that started on January 1st
Big Lots, a retailer that file for bankruptcy in September 2024, has been approved for a partnership with Gordon Brothers Retail Partners, who will conduct a sale of stores to Variety Wholesalers that will keep 200-400 stores open and save 5,000-10,000 jobs
Vivid Seats is exploring a sale. The StubHub and SeatGeek competitor went public via SPAC in 2021, and, down 40% this year, is fielding take-private interest
Bernie Madoff victims received a final $131mm payout from the victim compensation fund, boosting total payouts to $4.3B
Nvidia is angel investing: Emerging as a key start-up backer, Nvidia invested $1B in more than 50 AI companies last year
Christine Lagarde is optimistic on inflation: The ECB President shared that she expects to achieve a 2% inflation target after "significant progress in 2024"
Gold holds steady: After gaining 27% last year, bullion investors are weighing the odds of another rate cut after Jerome Powell shared words of caution in December
The Latest on the New Orleans Terrorist Attack: On New Year's evening, 15 people were killed and 30 were injured after a terrorist attack on Bourbon Street. The FBI believes the driver wasn't solely responsible
A Tesla Cybertruck exploded in front of Trump's Las Vegas hotel, killing the person inside the car and injuring several others nearby. This is being investigated as a possible terror attack
Gold rush part 2? KoBold Metals, a mining and AI startup with backers including Jeff Bezos and Bill Gates, now has a $2.9B valuation, tapping into the race for minerals needed for the global energy transition
Hook 'em: Texas fended off a major underdog upset from ASU at the Peach Bowl yesterday, securing a 39-31 double OT win

M&A Transactions💭

VOXX International (NAS: VOXX), manufacturer and distributor in the automotive electronics, consumer electronics, and biometrics industries, has reached a definitive agreement to be acquired for $151.891M by Gentex (NAS: GNTX). EV/Revenue was 0.52x. Solomon Partners advised on the sale.

TANN Group, manufacturer of tipping paper, has reached a definitive agreement to be acquired for $378.82M by Evergreen Hill Enterprises.

Synthon International Holding, operator of a pharmaceutical company, was acquired for $2.21B by Goldman Sachs Asset Management. Barclays, Rothschild & Co, and Jamieson Corporate Finance advised on the sale.

Toppan Holdings (TKS: 7911) has reached a definitive agreement to acquire Thermoformed and Flexible Packaging business, a subsidiary of Sonoco (NYS: SON) for $1.8B. RBC Capital Markets and Goldman Sachs advised on the sale.

Plastic-Fab, distributor of EPS building products, was acquired for $259.5M by Carlisle Companies (NYS: CSL). Houlihan Lokey advised on the sale.

Energy Capital Partners entered into a definitive agreement to acquire the three US onshore projects farm-down of Orsted for $572.0M.

Liberty TripAdvisor (PINX: LTRPA), providers online travel site services, has reached a definitive agreement to be acquired for $2.453B by TripAdvisor (NAS: TRIP). EV/EBITDA was 10.95x and EV/Revenue 1.35x. Centerview Partners advised on the sale.

The resort of KANEHIDE Bio, a 97 room Ritz-Carlton Restor in Okinawa, Japan, was acquired for $130.0M by Blackstone.

imaware, provider of at-home and remote screening, was acquired for $100.0M by SuperTruth.

Cloud Star, producer of natural pet food products, was acquired for $1.45B by General Mills (NYS: GIS). Houlihan Lokey advised on the sale.

Belships (OSL: BELCO), a fully integrated owner and operator of dry bulk ships, has entered into a definitive agreement to be acquired for $466.75M by EnTrust Global. EV/EBITDA was 3.28x and EV/Revenue was 0.92x. ABG Sundal Collier and Fearblet Securities advised on the sale.

Woodside Energy Julimar, operator of offshore gas fields, has reached a definitive agreement to be acquired by Chevron Australia Downstream for $400.0M. The company will receive a contingent payout of $100.0M related to handover of the Julimar Phase 3 Project to Chevron Australia and subsequent production performance. Previously the company was formed as a joint venture between Woodside Energy (ASX: WDS) and Kuwait Foreign Petroleum Exploration Company.

O3 Mining (TSX: OIII), a Canadian mineral exploration company, reached a definitive agreement to be acquired for $144.6M by Agnico Eagle Mines (TSE: AEM). EV/Cash Flow was 14.47x. Fort Capital Partners and Maxit Capital advised on the sale.

Hanwha Philly Shipyard (OSL: PHLY), operators as a commercial shipyard, was acquired by Hanwha Systems (KRX: 272210) for $100.0M. EV/Revenue was 0.23x.

Featurespace, developer of an adaptive behavioral analytics platform, was acquired for $925.0M by Visa (NYS: V). Citigroup advised on the sale.

Nordstrom (NYS: JWN) will be taken private by a consortium led by Nordstrom's founding family (50.1% stake) and Mexican retailer El Puerto de Liverpool (49.9% stake) in a $6.25B deal.

Everton Football Club was acquired by The Friedkin Group for $506.71M.

Crayon Group (OSL: CRAYN), an information technology advisory firm, has reached a definitive agreement to be acquired for $1.4B by SoftwareONE (SWX: SWON). EV/EBITDA was 17.63x and EV/Revenue was 2.15x. ABG Sundal Collier and Houlihan Lokey advised on the deal.

Cellnex Austria, operator of wireless telecommunications infrastructures, was acquired for $844.31M by EDF Invest, MEAG - A Munich Re Company, and Vauban Infrastructure Partners. Deutsche Bank and Mediobanca advised on the sale.

Kaken Pharmaceutical Co. (TKS: 4521) reached a definitive agreement to acquire The Fyarro business unit of Aadi Bioscience (NAS: AADI) for $100.0M. EV/Revenue was 3.97x. Leerink Partners advised on the sale.

2-10 Home Buyers Warranty, provider of a home warranty service, was acquired for $585.0M by Frontdoor (NAS: FTDR). EV/Revenue was 1.4x. Evercore Group, J.P. Morgan, and Wells Fargo advised on the sale.

Wolf Bone Ranch Partners, provider of land and resource management services, was acquired for $245.0M by Landbridge (NYS: LB). Barclays, Piper Sandler, and Goldman Sachs advised on the sale.

Strata, provider of construction materials, has reached a definitive agreement to be acquired for $454.0M by Knife River (NYS: KNF).

St. Modwen Homes, developer of real estate properties, has entered into a definitive agreement to be acquired for $272.21M by Miller Homes.

Saeta Yield, operator of a renewable energy firm and a subsidiary of TerraForm Power, was acquired for $1.47B by Masdar Capital. Banco Santander and Societe Generale advised on the sale.

Recorded Future, developer of threat intelligence analytics software, was acquired for $2.65B by MasterCard (NYS: MA). Qatalyst Partners advised on the sale.

Mega Broadband Investments, operator of an investment business, has reached a definitive agreement to be acquired for $350.0M by Cable One (NYS: CABO). EV/Revenue was 1.99x.

EWE Polska, provider of energy services and a subsidiary of EWE, was acquired by Eesti Gaas for $120.0M.

EvolutionIQ, developer of a claim guidance platform, reached a definitive agreement to be acquired for $730.0M by CCC Intelligent Solutions (NAS: CCS).

David Roberts & Partners Group, provider of insurance services, was acquired for $569.75M by BMS Group.

Coregas, manufacturer and distributor of compressed gases and a subsidiary of Wesfarmers (ASX: WES), reached a definitive agreement to be acquired by Nippon Sanso Holdings (TKS: 4091) for $494.83M.

Anhui Sun Valley Food, provider of protein products, has reached a definitive agreement to be acquired for $155.04M by Fujian Sunner Development (SHE: 002299). EV/Net Income was 9.77x and EV/Revenue was 0.73x.

Wingstop UK, operator of a restaurant chain, has entered into a definitive agreement to be acquired for $506.31M by Sixth Street Partners. EV/Revenue was 2.64x. Goldman Sachs advised on the sale.

AXA Investment Managers, provider of asset management services, was acquired for $5.36B by BNP Paribas (PAR: BNP). J.P. Morgan advised on the sale.

Westbrick Energy, provider of energy exploration services, reached a definitive agreement to be acquired for $746.53M by Vermilion Energy (TSE: VET). EV/Revenue was 24.97x. RBC Capital Markets and Soctiabank advised on the sale.

TalkMed Group (SES: 5G3), operates as a investment holding company, entered into a definitive agreement to be acquired for $449.99M by Tamarind Health. EV/EBITDA was 18.35x and EV/Revenue was 7.67x.

SK Specialty, provider of specialty gas and chemical technology, has entered into a definitive agreement to be acquired for $1.9B by Hahn & Company. EV/Revenue was 4.22x.