Deal Dispatch: From $14B Medtech Buys To Vodka Bankruptcies, This Week's M&A Roundup

New On The Block

• Mitsubishi Electric plans to sell its automotive equipment business, seeking first-round bids by Jan. 26 from car-parts suppliers and private equity firms. The unit, which makes EV and hybrid inverters, motors, and in-car entertainment systems, has struggled with low profitability amid a global EV market slowdown. The divestment could fetch ¥200–300 billion ($1.3 billion–$1.9 billion), and Mitsubishi aims to boost earnings and reallocate resources by spinning out the underperforming unit.

• Devon Energy (NYSE:DVN) and Coterra Energy (NYSE:CTRA) are reportedly in merger discussions. The pending deal would create one of the largest independent shale producers in the U.S. The talks may also be a strategic move by Coterra to attract other potential bidders. Investors reacted cautiously: Devon shares fell about 4%, valuing the company at roughly $23 billion, while Coterra's stock rose 1.5%, lifting its market cap to nearly $20 billion. Adding intrigue, energy-focused private equity firm Kimmeridge—which has been pressing for changes at Coterra—also holds a small stake in Devon, potentially influencing the dynamics of any transaction.

Updates From The Block

• A Delaware judge rejected Paramount Skydance's (NASDAQ:PSKY) request to expedite its lawsuit against Warner Bros. Discovery (NYSE:WBD), ruling the company failed to show the irreparable harm required to fast-track disclosure related to the $82.7 billion Netflix deal. Paramount, whose $108.4 billion bid expires next week, plans a proxy fight for Warner's board, while Netflix readies an all-cash offer. Paramount also appointed Dennis Cinelli as its new CFO.

• Boston Scientific (NYSE:BSX) agreed to acquire medical device maker Penumbra for about $14.6 billion, paying $374 per share in cash or stock. The deal, the largest for Boston Scientific in 20 years, expands its presence in blood clot and stroke treatments, including neurovascular devices and mechanical thrombectomy. Penumbra will operate as a standalone unit, with CEO Adam Elsesser joining Boston Scientific's board. The acquisition is expected to slightly drag first-year earnings but support long-term growth, leveraging complementary products and sales networks. Penumbra shares jumped 11% on the announcement, while Boston Scientific shares fell 5.3%.

• Affinity Partners is sponsoring a merger between Playlist—the parent company of ClassPass, Mindbody, and Booker—and German connected fitness startup EGYM, with the combined company to be valued at $7.5 billion. Participating insiders include Vista Equity Partners, Temasek, and L Catterton.

• BitMine Immersion Technologies (NYSE:BMNR) announced a $200 million equity investment into MrBeast's Beast Industries, with the transaction expected to close on Jan. 19, as Chairman Tom Lee bets the YouTuber with 330 million subscribers will become “the most impactful entertainment brand in the world” while integrating crypto into a new financial services platform. BitMine is the world’s largest Ethereum (CRYPTO: ETH) treasury company, holding 4.17 million ETH worth roughly $13 billion. 

Off The Block

• GTCR completed its C$2.2 billion take-private acquisition of Dentalcorp, a Canadian dental practice network.

Bankruptcy Block

• Sailormen Inc., a Miami-based Popeyes franchisee operating 136 locations since 1987, filed for bankruptcy Thursday. The company cited a combination of heavy debt—around $130 million—failed attempts to sell 16 restaurants, pandemic effects, inflation, rising interest rates, and labor challenges. Sailormen also faced lawsuits from its lender, as well as legal and financial pressures from landlords and vendors, contributing to a major cash crunch.

• Vodka and bourbon producers Stoli Group USA LLC and Kentucky Owl LLC have filed to convert their Chapter 11 bankruptcies to Chapter 7 liquidation after failing to reach terms with their senior lender that would allow them to continue operating. Control of the U.S. entities will now pass to a court-appointed trustee to oversee the liquidation.

• The companies originally filed for Chapter 11 on Nov. 27, 2024, after defaulting on over $78 million in secured debt to Fifth Third Bank. The U.S. subsidiary of Luxembourg-based Stoli Group, which makes vodka, bourbon, and other spirits for domestic and global markets, cited multiple operational and financial challenges leading to the bankruptcy.

For the previous edition of Deal Dispatch, click here.

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