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Adidas to Sell TaylorMade, Adams Golf and Ashworth to KPS for $425M

Adidas to Sell TaylorMade, Adams Golf and Ashworth to KPS for $425M

Adidas began actively seeking a buyer last year, as reported by ExitHub. “TaylorMade is a leading global golf brand with an exceptionally strong market position. We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership. At the same time, we welcome all adidas Golf employees who will be integrated into our adidas Heartbeat Sports Business Unit,” said Adidas CEO Kasper Rorsted. “Within our long-term strategy ‘Creating the New’, our focus is clearly on our core competencies in footwear and apparel and on our two major brands adidas and Reebok.” Adidas designs, develops, produces, and markets athletic and sports lifestyle products worldwide. It operates through 13 segments: Western Europe, North America, Greater China, Russia/CIS, Latin America, Japan, Middle East, South Korea, Southeast Asia/Pacifc, TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic, and other centrally managed businesses. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany. Employing more than 60,000 people in over 160 countries, the company produce more than 840 million product units annually and generated sales of €19 billion in 2016. Guggenheim Securities LLC acted as exclusive financial advisor to adidas AG and Sheppard, Mullin, Richter & Hampton LLP served as legal counsel. Going forward, Adidas intends to focus its efforts in this market segment on further strengthening its position as a leading provider of innovative golf footwear and apparel through the Adidas Golf brand, the company says. TaylorMade Golf Company In the spring of 1979 a golf equipment salesman named Gary Adams took out a $24,000 loan on his home and founded the TaylorMade Golf Company. He rented a 6,000 square-foot building that at one time housed a television assembly plant. Counting him, there were three employees and a single, innovative product: a 12-degree driver cast of stainless steel. This new metalwood looked and sounded different from a wooden wood, and most important, it performed differently. The clubhead’s perimeter-weighting offered greater forgiveness on mis-hits, while the lower center of gravity made it easier to launch the ball in the air. Adams, the son of a golf professional, was adamant that TaylorMade clubs maintain ties to what true golfers perceived an authentic golf club should look and feel like. They were committed to combining innovation with authenticity, to always be passionate about the game, and pledged to be competitive – to work hard to establish itself and grow. These four tenets would take them far. The same values singled out 30 years ago by Gary Adams are still revered and practiced today at TaylorMade, adidas Golf and Ashworth. Starting with $47,000 in sales in 1979, the company eventually reached its first billion dollars in revenue in 2006, marking only the second time in history that a golf brand had achieved this milestone. TaylorMade was independently owned until 1984, when Salomon SA acquired the company. At the time, the union was strategically compatible for both companies which were innovators in their industries: Salomon wanted to diversify and made the decision to enter a “three-season” market, and TaylorMade benefited from the worldwide resources of Salomon. Adidas bought Salomon in 1997, and shortly thereafter the image and focus of TaylorMade were redirected to take over the driver market. The company succeeded in achieving this goal in late 2005, when it officially became the top driver in golf. PGA Tour Professionals are said to play more TaylorMade drivers than Callaway, Cleveland, Cobra, Nike and Ping combined. Currently, the company markets TaylorMade drivers, fairway woods, hybrids, irons, wedges, golf balls and accessories. The company’s major equipment claims, promoted in marketing materials with small “No. 1” shields, include: No. 1 Driver in Golf, No. 1 Fairway in Golf and No. 1 Irons in Golf.]]>

Delek Group to Acquire Ithaca Energy in $1.24B Deal to Expand International Ops

Delek Group to Acquire Ithaca Energy in $1.24B Deal to Expand International Ops

$3 billion sale by Royal Dutch Shell (AMS:RDSA; NYSE: RDS.A) of a package of UK North Sea assets to UK O&G independent Chrysaor Holdings,  as reported by ExitHub. Delek already owns a 19.7% equity stake in Ithaca. The proposed purchase price represents a 12% premium to the TSX closing price of CAD 1.74 per share on 3 February 2017 and a 16% and 27% premium to the 30 day and 60 day volume weighted average prices respectively. The deal received the unanimous support of Ithaca’s Board of Directors. After completion of the deal, Delek will be the controlling shareholder of Ithaca, which had a market value as of February 3, 2017 of CAD 720 milion (US$555 million), excluding convertible securities. “We are very pleased to announce the offer, which provides an attractive opportunity for all shareholders to secure a premium cash value for their investment following a sustained period of share price growth and at a favourable point in the Company’s evolution,” said Ithaca’s Non-Executive Chairman, Brad Hurtubise. “A special committee of independent directors has fully assessed the offer, with input from the Company’s financial advisor and an independent valuator, and believes the offer is fair and in the best interest of the company and its shareholders and unanimously recommends that the shareholders tender their shares to the offer.” “Today, we are taking another significant step which, if successful, will firmly establish Delek Group as a global E&P company, with international oil and gas assets and strong operational capabilities,” said Asaf Bartfeld, President and CEO of Delek Group. “The Ithaca transaction will substantially strengthen our international operational arm, and is a synergistic step to our existing activities. We believe Ithaca will contribute to our continued growth and we look forward to reinforcing and building on our status in international markets.” Delek Group, Israel’s dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean’s Levant Basin into one of the energy industry’s most promising emerging regions. Having discovered Tamar and Leviathan, two of the world’s largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF. Delek also has a number of assets in downstream energy, water desalination, and in the finance sector.]]>

@VW and Ex-Shin Bet Director Yuval Diskin Launch CyMotive Joint Venture

@VW and Ex-Shin Bet Director Yuval Diskin Launch CyMotive Joint Venture

Israeli Security Service Shabak, widely known by its Hebrew code letters “Shin Bet.” He was first appointed to the position by Prime Minister Ariel Sharon in 2005, and subsequently served under Prime Ministers Ehud Olmert and Binyamin Netanyahu, until he retired in 2011, and started a career in high-tech. CyMotive will be based in Herzliya, Israel, and in Wolfsburg, Germany. The Israeli team which will develop advanced cyber security solutions for next generation connected cars and mobile services, is said to hold a 60 percent majority stake in the joint venture, with VW holding a stake of 40 percent. “Together with Volkswagen we are building a top-notch team of cyber security experts. We are aware of the significant technological challenges that will face us in the next years in dealing with the cyber security threats facing the connected car and the development of the autonomous car.” Diskin added. The age of the connected car enables customers to use a variety of features inside modern vehicles. However, with increasing connectivity comes an increasing risk, says VW. Aspects such as intelligent and autonomous driving increase the number of interfaces in the vehicle and thus the risk of malicious attack. Through this cooperation Volkswagen is further developing its core capabilities in the field of cyber security and is combining its forces with the expertise of the cyber security specialists from Israel, it says. At the signing of the agreement, Volkmar Tanneberger, Head of Electrical and Electronic Development for the Volkswagen brand, said, “The car and the Internet are becoming increasingly integrated. To enable us to tackle the enormous challenges of the next decade, we need to expand our know-how in cyber security in order to systematically advance vehicle cyber security for our customers.” “CyMotive Technologies provides an excellent platform for doing this. It is a long-term investment in cyber security to make vehicles and their ecosystem more secure,” added Tanneberger. The German carmaker already has various other strategic partnerships with Israeli high-tech startups. In May, VW made a $300 million strategic investment in Gett (formerly GetTaxi), a global Israeli on-demand ride hailing provider. Earlier this year, VW formed a partnership with Mobileye NV (NYSE: MBLY), to launch a pioneering crowd-sourced mapping technology for self-driving or autonomous cars. File Photo (L to R): Gabi Ashkenazi, former Chief of General Staff of the IDF, with Yuval Diskin, former Director of the Israeli Security Service Shin Bet.]]>

Cresud's $CRESY IDB Hires JPMorgan to Find Exit for Israeli Clal Insurance

Cresud's $CRESY IDB Hires JPMorgan to Find Exit for Israeli Clal Insurance

Reuters is said to have invested nearly 2.5 billion shekels ($665 million) in IDB, acquired the heavily indebted IDB group from former Israeli tycoon Nochi Dankner when it was structured as a six-layer pyramid with one holding company controlling another and had 16 billion shekels in debt. IDB and Discount combined now reportedly have debt of 5.6 billion shekels. After Elsztain took effective control of IDBD in October 2015, his Buenos Aires-based leading agribusiness Cresud (NASDAQ: CRESY; BASE: CRES) started consolidating IDBD within its financial reports, as of its fiscal quarter ending December 31, 2015. Discount Investment Corp., founded in 1961, remains one of the largest and most prominent holding companies in Israel. It has holdings in companies that are market leaders in their specific fields, including Cellcom, the largest cellular operator in Israel (41.8%); Shufersal, the largest grocery retail chain in Israel (52.9%); Property and Building Corporation, one of the largest real-estate groups in Israel (76.5%); and Elron, a high-tech operating investment company (50.3%). In July 2016, China National Chemical Corp. (ChemChina), agreed to buy out IDB Holding Corp. subsidiary Koor’s remaining 40% stake in Tel Aviv-based Adama Holding Ltd., one of the world’s leading crop protection companies, for $1.4 billion, consisting of $230 million in cash and the assumption of $1.17 billion in debt. The deal valued Adama’s equity at $3.5 billion. Discount Investment Corp. said it would report a capital gain of 690 million shekels ($178.5 million) from the sale to ChemChina, a state-owned enterprise established through a reorganization and consolidation of China’s former Ministry of Chemical Industry Ministry subsidiary companies. With revenues of $45 billion in 2015, ChemChina is China’s largest chemical company. It has more than 140,000 employees, of which 48,000 are outside China. IDB is required to sell its stake in Clal to abide by Israeli regulatory requirements that prohibit holding companies from owning both financial and non-financial businesses. The latest move follows two failed attempts by IDB to sell its 55 percent stake in Clal, one of Israel’s biggest insurers, to Chinese investors. “We are spending a lot of money, time and effort to achieve … a sale,” Elsztain said at a news conference this week, to mark four years since he invested in IDB. “A forced sale will make a tremendous loss to shareholders,” he added, according to Reuters. IDB had an agreement with Israel’s capital markets and insurance regulator that if it did not sell Clal by early 2016, it would have to sell its majority stake in the company piece-by-piece, in tranches of up to 5 percent every four months. The matter is now pending a decision by the Tel Aviv District court. Delek Group (TASE: DLEKG; ADR: DGRLY), another Israeli conglomerate and Israel’s dominant energy company, also faced certain challenges trying to sell its majority stake in insurance company Phoenix Holdings Ltd (TASE: PHOE). However, last month Delek said it signed a binding agreement to sell its 52.3 percent stake in Phoenix to Chinese conglomerate Fujian Yango Group (SZSE: 671), for 1.95 billion shekels ($516 million) in cash. The deal is now subject to regulatory approval. Photo: Eduardo Elsztain, Chairman of IDB, Discount Investment Corp, IRSA, CRESUD, BrasilAgro and Banco Hipotecario.]]>

Fresenius Buys Spanish Top Hospital Group Quirónsalud from CVC Capital for €5.8B

Fresenius Buys Spanish Top Hospital Group Quirónsalud from CVC Capital for €5.8B

CVC Capital and Formula One Group CEO Bernie Eccelstone are nearing a sale of F1 to billionaire John Malone’s media conglomerate Liberty Media, in a deal valued at $8.5 billion. Headquartered in Luxembourg, CVC Capital Partners is one of the world’s leading private equity firms. Founded originally in 1981 as the European arm of Citicorp Venture Capital, the CVC Group today employs some 300 people throughout Europe, Asia and the US. The firm was spun out from Citicorp in 1993, as an independent private equity firm. The CVC team’s local knowledge and extensive contacts underpin a proven track record of over 30 years of investment success. CVC manages capital on behalf of over 300 institutional, governmental and private investors worldwide, having secured commitments of more than US$71 billion in private equity, credit and growth funds. “We are acquiring the largest private hospital operator in Spain, Europe’s number four,” said Francesco De Meo, CEO of Fresenius Helios. “I am particularly delighted that Víctor Madera will, beyond his ongoing role as CEO of Quirónsalud, play a very active role in our combined group.” “I am extremely pleased to join such a splendid organization as Helios and very much look forward to a fruitful cooperation with Francesco De Meo,” said Madera. Quirónsalud says it has posted organic annual sales growth of more than 5% in recent years. Growth is driven by an above-market increase of patient admissions due to excellent quality of care combined with consistently short waiting times. Quirónsalud is also a pioneer in public-private partnership (PPP) models, operating five hospitals (four in Madrid and one in Barcelona) that are integrated within the public healthcare network. Under the PPP agreements, Quirónsalud is assigned responsibility for the publicly insured inhabitants of certain coverage areas and receives remuneration based on capitation or activity performed. Greenfield hospital projects and acquisitions have also contributed to Quirónsalud’s overall strong sales growth. Going forward, cross-selling between the recently acquired ORPs and Quirónsalud’s hospitals are expected to be yet another growth driver. For 2016, Quirónsalud expects sales of approximately €2.5 billion and EBITDA of €460 to €480 million. In 2017, EBITDA is expected to be in the range of €520 to €550 million. The purchase price corresponds to approximately 10.8x at the mid-point of the 2017 EBITDA range. In the medium-term, the merger of Helios and Quirónsalud is expected to lead to incremental pre-tax synergies of approximately €50 million p.a. without meaningful implementation expenses. Group net debt/EBITDA will temporarily increase to approximately 3.1. Already in mid-2017, the leverage ratio is expected to return to the 2.5 to 3.0 target range. The transaction is expected to be highly accretive to group net income and EPS in 2017. The deal is subject to approval by antitrust authorities and is expected to close in Q4/2016 or Q1/2017.]]>