ONEOK acquires Brazos’ Permian gas assets for $4.4bn

BY Fraser Tennant 

In a deal that more than doubles the US pipeline operator’s processing capacity in the region, ONEOK is to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for $4.4bn.

Under the terms of the definitive agreement, the acquisition will be funded through a $9bn nonvoting minority equity investment from funds and affiliates managed by Apollo Global Management.

As one of the largest integrated energy infrastructure companies in North America, ONEOK - an S&P 500 company headquartered in Tulsa, Oklahoma - delivers energy through its approximately 60,000-mile pipeline network.

The Brazos transaction expands ONEOK’s ability to capture volume growth across the value chain while optimising capital deployment and utilising existing downstream infrastructure, including the company’s West Texas natural gas liquid (NGL) pipeline and soon to be-completed Medford NGL fractionation facility.

By integrating commercial, operational and capital activities across the combined footprint, ONEOK expects to achieve significant recurring synergies over the long term, further reducing the effective acquisition multiple over time to be in line with ONEOK’s historical organic build multiples.

“ONEOK has built one of the largest and most diversified midstream platforms in the country, providing essential services and infrastructure to help meet rapidly expanding domestic and international energy demand,” said Jamshid Ehsani, a partner at Apollo. “This transaction reflects Apollo’s ability to deliver flexible, high-grade capital solutions at scale, structured around ONEOK’s long-term strategic objectives.”

Further strengthening its financial position, ONEOK has entered into an agreement with Apollo and affiliates for a $9bn minority equity investment, which has been unanimously approved by ONEOK’s board of directors.

“The acquisition positions ONEOK to capture significant volume growth in one of the most economic and rapidly growing resource plays,” said Pierce H. Norton II, president and chief executive of ONEOK. “The combination of this acquisition with the minority equity investment demonstrates our commitment to creating shareholder value while further enhancing our balance sheet.”

Expected to close in the fourth quarter of 2026, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino Act clearance.

“This transaction demonstrates ONEOK’s strategy of intentionally expanding and extending our integrated energy infrastructure,” noted Mr Norton. “These assets add a premier platform supported by long-term contracts and attractive growth opportunities.”

News: ONEOK to buy Brazos Midstream's Permian Midland Basin assets for $4.43 billion

Aon agrees $17bn USI deal

BY Richard Summerfield

Insurance broker Aon announced on Monday that it had agreed to purchase rival USI Insurance Services from private equity firm KKR in an all-cash deal worth around $17bn.

The transaction was unanimously approved by the boards of directors of both Aon and USI and is expected to close in the fourth quarter of 2026.

Acquiring USI is expected to boost Aon’s adjusted profit in 2028. Aon plans to fund the deal through debt and does not expect near-term share buybacks as it prioritises debt repayment. The deal is expected to deliver $395m in annual run-rate net adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) impact from revenue and cost synergies across the combined middle-market platform and to be accretive to adjusted earnings per share in 2028. The net purchase price represents approximately 14.5x on a synergised trailing 12-month adjusted EBITDA basis, according to Aon.

Following the close of the transaction, Mike Sicard, chairman and chief executive of USI, will serve as president of Aon plc and global chief executive of middle market and join the Aon executive committee.

“In a time of rising complexity and volatility, creating better outcomes for clients across their risk and people challenges requires a combination of capabilities and expertise supported by proprietary data, analytics and technology,” said Greg Case, president and chief executive of Aon. “Through the successful execution of our 3x3 Plan to accelerate our Aon United strategy, we have significantly strengthened our firm to build the industry’s most differentiated model: what we call our context advantage.

“Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth,” he continued. “Building on the success of our acquisition of NFP, USI will substantially enhance our middle-market footprint and expand access for our firm in the E&S segment to deliver content, capabilities and expertise to a broader client base, while enabling client leaders to expand relationships and win new business. Our combined data platform will generate richer insight, advance the development of innovative, AI-driven solutions and expand the universe of insurable risk, while further reinforcing the context advantage that differentiates Aon.”

“Joining Aon represents a truly energising next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform,” said Mr Sicard. “Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients.”

USI, a leading provider of property & casualty, employee benefit, personal risk and retirement solutions for the middle market, is the 10th largest US insurance broker with approximately $3bn in annual revenue and more than 10,500 team members across nearly 200 US offices.

As USI’s largest shareholder, KKR said that it expects to recognise approximately $3.3bn of after-tax proceeds and about $2bn of adjusted net income. Under KKR’s ownership, USI nearly tripled its revenue and made more than 90 acquisitions, according to KKR.

News: Aon strikes $17 billion deal for rival USI as insurance consolidation accelerates

Restructure complete: West Marine emerges from Chapter 11

BY Fraser Tennant

Completing a comprehensive financial restructuring, marine retailer West Marine – together with its subsidiaries and affiliates – has successfully emerged from Chapter 11 bankruptcy protection.

Emerging with a strengthened financial foundation and clear path forward, West Marine emerges to begin a new chapter with a renewed commitment to provide top-quality marine parts, accessories and expert service to the boating community.

The Fort Lauderdale-based marine retailer filed for Chapter 11 in May 2026 citing a years-long accumulation of compounding pressures that ultimately left the company with approximately $21.5m in cash, $549.2m in outstanding debt and $55m in annual lease obligations it could no longer absorb.

In March and September 2023, the company attempted to address its balance sheet twice before filing, with two out of court restructurings equitiSing approximately $660m in debt and injecting hundreds of millions in new capital. Neither attempt, however, proved to be enough.

Having reduced its debt by more than $265m and obtained $10m in additional exit financing to bolster its business in its next phase, the company has pledged to continue to serve customers through approximately 100 retail locations, its online platform and the West Marine Pro business.

“Our emergence from Chapter 11 marks an important milestone for West Marine and the beginning of an exciting new chapter for our business,” said Paulee Day, chief executive of West Marine. “Throughout this process, we remained focused on what matters most: serving customers, supporting the boating community and preserving the legacy of a company that has been helping people enjoy time on the water for generations.”

Founded in 1968, West Marine has grown from a small rope business in California into the nation’s leading retailer of core marine parts and accessories for boating, fishing and sailing enthusiasts and marine industry service professionals. The company has approximately 100 brick and mortar stores and a strong online presence, serving first-time boaters to seasoned mariners and marine professionals.

Ms Day added: “Thanks to the support of our customers, vendors, partners and financial stakeholders, and the unwavering dedication of our crew members, we are emerging as a stronger company positioned to build on momentum and serve the boating community for years to come.”

News: West Marine emerges from Chapter 11 after cutting debt by $265 million

Steadfast to be acquired in $5.5bn buyout

BY Richard Summerfield

Australian insurance broker Steadfast Group has agreed to be acquired by a consortium backed by US investment giant KKR & Co in a deal worth $5.5bn.

Under the terms of the deal, speciality insurance distributor Amwins Group will acquire Steadfast’s underwriting agency operations, while Dragoneer Investment Group will take control of the company’s broking business. Steadfast shareholders will receive ⁠A$6 apiece, representing a nearly 52 percent premium to the stock’s closing price on 9 ​June, the last trading day before the company disclosed a non-binding proposal from ​Dragoneer and Amwins.

Amwins and Dragoneer initially approached Steadfast with proposals of A$5.50 and A$5.83 per share before increasing their offer to A$6 per share in June. KKR subsequently joined the consortium as a co-lead investment partner alongside Dragoneer for Steadfast’s broking operations.

Steadfast’s board of directors has unanimously recommended that shareholders vote in favour of the consortium’s offer, in the absence of a superior proposal and subject to an independent expert concluding the deal is in shareholders’ best interests. The company is ​aiming to implement ⁠the scheme in December, it said in an after-market filing, subject to shareholder, court and regulatory approvals.

“The decision to recommend this offer follows careful consideration by the Board and its advisers,” said Vicki Allen, chair of Steadfast. “The Steadfast Board intends to unanimously recommend that Steadfast shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Scheme is in the best interests of Steadfast shareholders.”

“I am pleased to support the Scheme Consideration of $6.00, as it recognises the significant value created by Steadfast for its public investors and provides an exciting opportunity for the next phase of our growth,” said Robert Kelly, managing director and chief executive of Steadfast. “With the backing of experienced international investors, we believe Steadfast can strengthen its competitive position, accelerate investment in technology and services, support our independent broker network and create further growth opportunities for the organisation.”

Steadfast operates one of the largest insurance distribution networks in Australia and surrounding markets. The company currently has 414 network brokerages and 31 underwriting agencies, with businesses across Australia, New Zealand, Singapore and the US. The company also provides technology, market access, risk solutions, operational support and equity solutions to insurance brokerage and agency businesses within its network.

News: Australia's Steadfast agrees to $5.5 billion buyout bid by KKR-backed consortium

Madison Air Solutions strikes $5.4bn ebm-papst deal

BY Richard Summerfield

Madison Air Solutions Corporation, a global provider of air quality solutions, has agreed to acquire ebm-papst in a deal worth $5.4bn.

According to a statement announcing the deal, the effective enterprise purchase price is $5bn net of future tax savings. Madison Air intends to fund the transaction through a combination of cash on hand and debt and equity financing. The company expects pro forma net leverage of less than 4.0x at closing, with a target of reducing net leverage to approximately 2.5x on a trailing 12-month basis within two years. The transaction is expected to close around year end, subject to regulatory approvals and satisfaction of customary closing conditions.

The deal is expected to add approximately $30bn to Madison Air’s addressable market and broaden its commercial, aftermarket and services opportunities through a larger installed base, broader customer relationships and expanded channel presence. Operating in approximately 40 countries, ebm-papst serves a diversified global customer base and is expected to generate approximately $2.8bn of revenue and approximately $343m of adjusted earnings before interest, taxes, depreciation and amortisation in 2026.

“We’re excited about the opportunities this acquisition creates for our customers, employees and shareholders as Madison Air continues to expand our ability to deliver Return on Air and strengthen our position in attractive, growing markets,” said Jill Wyant, president and chief executive of Madison Air. “As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology, custom engineering expertise and talented team, which complement our expertise in mission-critical applications and market reach.

“Fans enable the airflow performance our customers depend on every day,” she continued. “By combining ebm-papst’s differentiated technology with Madison Air’s application expertise, trusted customer relationships and proven operating model, we will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments.”

Ms Wyant added that the acquisition nearly doubles the company’s addressable market, expands its aftermarket and services opportunities, and strengthens its long-term growth prospects. She also expressed confidence that the combined business will accelerate growth, improve performance and deliver significant long-term value for shareholders.

“Madison Air was founded on the belief that business can be one of the most powerful forces for good, particularly when we help people live safer, healthier and more productive lives through the power of better air,” said Larry Gies, chairman of the board and founder of Madison Air. “Adding ebm-papst to the Madison Air portfolio is a natural extension of that purpose. The Board of Directors and I have tremendous confidence in Jill and her team and believe this combination will make Madison Air a stronger company capable of serving more customers, pursuing a larger opportunity and creating enduring value for many years to come.”

“Since our founding more than six decades ago, ebm-papst has built a reputation on engineering excellence, innovation and earning the trust of our customers,” said Klaus Geiβdörfer, chief executive of ebm-papst. “Madison Air shares that philosophy and has demonstrated a long-term commitment to supporting entrepreneurial businesses. We are excited to join an organization that values our people, our culture and our technology, and we look forward to what we can accomplish together.”

News: Madison Air Solutions to buy German fan maker ebm-papst in $5.4 billion deal