NY Giants Seek Private Equity Investment, M&A Activity Decreases

The downtrend in M&A activity compared to the previous year, despite the emphasis on deregulation, has left dealmakers with little to show for it. Goldman Sachs’ Christina Minnis shed light on the sluggish M&A landscape in a conversation with Bloomberg.

The New York Giants have put up to a 10% ownership stake on the market, looking to capitalize on their rich history and the lucrative New York City market. Moelis & Co. has been enlisted as their banker for this significant financial move. The Giants’ value ranges between $7.3 billion (Forbes) and $7.85 billion (CNBC). With the NFL recently permitting private equity firms to acquire up to 10% of teams, it comes as no surprise that the Mara and Tisch families, stalwart owners of the Giants, have decided to explore this avenue. Notable recent transactions in the NFL include the Eagles selling an 8% stake exceeding $8 billion. The involvement of private equity firms like Arctos Partners and Ares Management in teams like the Bills and Dolphins signifies a growing trend of institutional investment in the NFL.

Over in the renewable energy sector, Global Infrastructure Partners is looking to divest its controlling stake in Vena Energy, a Singaporean renewables company. The auction, managed by Morgan Stanley and Mitsubishi UFJ Financial Group, is anticipated to attract bids reaching up to $10 billion, according to Reuters.

President Donald Trump’s recent wavering on assisting in negotiations between Japanese steelmaker Nippon Steel and United States Steel Corp. has raised eyebrows. Once stating his willingness to mediate an “investment” between the two parties, Trump’s recent uncertainty stands in stark contrast to his earlier stance. The CEOs, impressed with his tariffs initially, now find themselves caught off guard by the inconsistent messages regarding the proposed sale to Nippon Steel, as reported by Bloomberg.

Joann, a fabric and crafts retailer, is planning to shutter around 500 of its 800 U.S. stores as part of its restructuring efforts amidst financial turmoil. With weak consumer demand and inventory issues cited as key problems leading to their Chapter 11 bankruptcy filing, Joann is aiming to enhance operational efficiency and potentially facilitate a sale through these closures. Similarly, Liberated Brands, the parent company of Quiksilver, Billabong, and Volcom, has also filed for Chapter 11 bankruptcy, attributing challenges such as high interest rates, inflation, supply chain disruptions, shifting consumer preferences, and the rise of fast fashion and e-commerce. This move was coupled with the layoff of approximately 1,400 employees and debt amounting to $226 million.

While uncertainties surrounding inflation and interest rates are identified as primary deterrents impacting M&A activity, the availability of credit markets has been a positive for leveraged buyouts at historically low spreads. Despite the challenges, analysts at Bank of America’s financial services conference expressed optimism, attributing it to a pro-business Trump administration that is expected to bolster customer activity. However, consumer confidence in the U.S. has shown a significant decline, indicating broader economic concerns that may continue to impact dealmaking in the near future.