Top-5 M&A Deals This Week (May 25)
Most interesting deals this week by size (<$50 million, $50-$100 million, $100-$500 million, $500 million - $1 billion and >$1 billion)
Dealmaking was a bit subdued last week. By my rough estimate, ~20% fewer deals closed this week than the previous week (I scan for all confirmed completed deals that closed each week). Two data points do not make a trend - but I’ll keep watching to see if any trend does develop. Regardless of perceptions, some interesting M&A did occur. Here are the top-5 from the previous week. One deal per size category: >$1 billion, $0.5-1.0 billion, $100-$500 million, $50-$100 million and <$50 million.
Deal size >$1 billion
Our first deal is an all American affair. PepsiCo has acquired VNGR Beverage for $1.95 billion. VNGR is the company that owns Poppi Prebiotic Soda, a brand of soda beverages that emphasizes sodas made with prebiotics, fruit juices and apple cider vinegar. In other words, with way less sugar and an appeal to wellness oriented consumers. The company itself was only founded in 2015, and it even appeared on a pitch for Shark Tank. As consumer preferences have shifted, Pepsi has undertaken a strategic portfolio transformation program. The deal will see Pepsi improve its product portfolio offerings, while significantly boosting Poppi’s growth potential.
"Poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages…Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi's momentum and unlock new growth through our capabilities – we're just getting started." - Ram Krishnan, CEO of PepsiCo Beverages U.S.
The deal terms are also interesting, and includes $300 million of cash tax benefits for PepsiCo as well as a performance-based earnout contingent on Poppi obtaining certain performance metrics.
Deal size $500 million to $1 billion
Deals in this size range were few and far between this week. In fact, I could only identify 2 globally that closed in the last week (I exclude rumored or announced M&A). For the most interesting of the two, we turn to Asia. SG (“Sagawa”) Holdings, the leading Japanese freight and logistics company has acquired Morrison Express, the Taiwan based global freight forwarder for $900 million. Morrison Express is renowned for its expertise in semiconductor and high-tech logistics. The deal significantly expands SG’s presence in Asia and further allows it to offer end-to-end supply chain solutions across air, ocean, rail and road freight. The combined entity will also benefit from their combined global networks. For those interested in understanding how semiconductors and high-tech products are physically moved around the world, this is a deal worth watching.
"Morrison Express' established relationships within the technology sector and strong Asian market presence, combined with their expertise in semiconductor logistics, perfectly complements our existing capabilities and forward-thinking approach to supply chain management…The acquisition will significantly enhance global network coverage, allowing the SG Holdings Group to provide better logistics solutions across different regions” - Bokuto Yamauchi, Head of Global Strategy for SG Holdings
Deal size $100 million to $500 million
For this deal size category we return to the United States. Alumis, a US based autoimmune disease therapeutics company, has acquired Acelyrin, a late-stage clinical bio-pharma company for $242 million. Interestingly, the deal terms will see Alumis and Acelyrin shareholders own 55% and 45% of the combined company after close. The deal happened over the objection of Trium Capital, which owned 5.4% of Acelyrin, who argued that the deal terms were worse for shareholders than simply liquidating the company.
“We believe all the offers received by [Acelyrin] thus far are inferior to a winding down of the company and returning capital to shareholders…A liquidation of the company provides certainty of value well above the value from any of the offers. We believe there is no reason for shareholders to accept any transaction that provides upfront value less than value that can be expected in a liquidation” - Trium Capital, letter to shareholders on April 28 2025
“This merger represents the culmination of a thorough strategic review process by our Board and management team to determine the best and most value-maximizing path forward for ACELYRIN. We are confident that Alumis is the right partner to optimize the development of lonigutamab and together deliver long-term stockholder value.” - Bruce Cozadd, Chairman of the Board for Acelyrin
I always find it interesting when there are significant differences in views. In this case, a major shareholder disagreed with the deal terms but did not convince enough shareholders to vote against the deal. I guess we’ll have to wait and see who turns out to be correct.
Deal size $50 million to $100 million
In the UK, Anima Care has acquired CVS’ crematoria operations for $56.4 million. Anima Care is part of Funecap Group, a major European funeral services provider, and provides end-of-life care and funeral services for pets. Interestingly, Anima Care made an unsolicited bid for CVS’ Crematoria business which had 2024 revenues of roughly $16 million and adj. EBITDA of $5.8 million. The transaction values the business at ~10x EBITDA. A post-closing service agreement will see Anima Care continue to provide clinical waste disposal and cremation services to CVS practices going forward. The deal is a typical “bolt-on” acquisition for Anima’s core business, while allowing CVS to focus on its core offerings.
“This disposal reflects our commitment to focusing on our core veterinary services while ensuring quality end-to-end services for our clients. The capital generated will support our strategic expansion and deliver value to the Group.” - Richard Fairman, CEO of CVS
Deal size <$50 million
Our last deal of the week, though smaller in size is no less interesting or significant. China’s leadership in battery and new vehicle technology is on clear display. Hubei Wanrun, a leading Chinese battery manufacturer, has acquired Safra, France’s only domestic producer of hydrogen fuel-cell buses for $7.8 million. Safra has been in receivership since Febraury and the deal had to be approved by France’s courts. As part of the deal, Wanrun will retain 120 of 169 Safra employees, and they are planning to continue construction of hydrogen buses as well as renovating trains and subways to convert diesel coaches to hydrogen fuel cells. While the deal was approved by the judge, it was opposed by the workers’ unions, the State Economic, Social and Environmental Council as well as multiple elected officials. According to them, Wanrun’s terms remain vague and it seems there is not a lot of trust - even if 120 jobs are being preserved and Wanrun is a top manufacturer. They seem to be worried that this deal will allow Wanrun to flood the EU market with their products. But taken from another perspective, it could be a valuable way to get highly competitive and innovative technology into the EU market. Expect more deals like this in the future.
"We have a lot of questions because Wanrun's offer is vague; we don't know what they're going to do" - Ludovic Vialard, CGT union representative.
"Wanrun manufactures electric buses in China, but not hydrogen-powered ones…it will send nearly finished buses to Safra, which will provide the necessary certifications to flood the European market." - Laure Malleviale, departmental secretary of the Tarn CGT union. "
That is it for the week. Personally, I think the smallest deal (Wanrun’s acquisition of Safra) is the most interesting. I’m expecting a lot more cross-border M&A from Chinese firms acquiring EU firms in the automotive technology sector.