Telix Pharmaceuticals to acquire Isotope Technologies for $1.65bn

BY Richard Summerfield

Australian biotechnology firm Telix Pharmaceuticals Limited has agreed to buy Germany-based ITM Isotope Technologies Munich SE in a deal worth around $1.65bn.

The transaction will see Telix pay ITM shareholders around $11.84 per share, valuing the company at $1.65bn, with ITM shareholders expected to receive ​about $1.25bn after taking into account debt and cash reserves. Upon completion of the deal, ‌Telix ⁠shareholders will own about 76.3 percent of Telix shares, while ITM shareholders will own around 23.7 percent. Telix will also assume $302m of ITM’s net debt at closing, alongside $96m of management equity rollover and transaction expenses payable by sellers, subject to closing adjustments.

The transaction is expected to close by the end of fiscal year 2026, subject to Telix Shareholder approval, regulatory approvals and other customary closing conditions.

Upon completion of the deal, the newly combined organisation is expected to generate unaudited pro forma 2026 revenue and income exceeding $1.3bn, based on management estimates.

Continued growth from manufacturing, cost savings and further targeted synergies and pipeline optimisation are expected to support a positive earnings before interest, taxes, depreciation and amortisation (EBITDA) contribution in 2027 and onward.

If approved by health regulators, the launch of ITM-11 – a novel therapeutic candidate for gastroenteropancreatic neuroendocrine tumours (GEP-NETs), which has completed phase three development – is expected to drive further upside, with the potential to generate additional high-margin therapeutic revenue in the near term.

The ​deal also includes contingent consideration of up to $700m, payable ​upon achievement of specified regulatory approvals and sales milestones for ITM-11. A further $100m is tied to approval in another GEP-NET indication by the end of 2030.

“This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures,” said Christian Behrenbruch, managing director and group chief executive of Telix. “ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. We have enjoyed a close working relationship with ITM for many years and there is strong management alignment for the rationale behind this transaction.

“By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector. Importantly, this combination further expands our late-stage therapeutic pipeline with two completed Phase 3 trials and deepens radioisotope security, while bringing together the mission-critical capabilities needed to deliver radiopharmaceutical treatments to patients around the world,” he added.

“Joining two radiopharmaceutical pioneers creates a company with unmatched breadth and depth across the value chain, supported by deep expertise and talent,” said Andrew Cavey, chief executive of ITM. “Our management teams have a track record of working together and a nuanced understanding of our respective commercial strengths and customer relationships. Together, we believe Telix and ITM will be uniquely positioned to capitalize on rapidly growing global demand for radiopharmaceuticals to the benefit of both shareholders and patients.”

News: Australia's Telix Pharma agrees to buy Germany's ITM Isotope for about $1.65 billion

GE Aerospace to acquire Consolidated Precision Products in $11.7bn deal

BY Richard Summerfield

GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) from its private equity owners Warburg Pincus and Berkshire Partners in a transaction worth around $11.7bn.

The agreement values CPP at approximately 18 times projected 2027 earnings before interest, taxes, depreciation and amortisation (EBITDA) when expected net synergies are included, and at approximately 26 times projected 2027 EBITDA excluding synergies. The deal is projected to be accretive to adjusted earnings per share and free cash flow in year one, with around $200m in synergies.

According to a statement announcing the deal, the purchase price of $11.75bn will be financed with $7bn in cash, with the remainder in new debt. The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.

“Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense,” said H. Lawrence Culp, Jr., chairman and chief executive of GE Aerospace. “By combining GE Aerospace’s technology capabilities and FLIGHT DECK with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms.

Mr Culp said the company would use FLIGHT DECK to improve processes and quality, increase production output, and better integrate design and manufacturing, enabling new engine technologies to reach customers more quickly. The initiative is also intended to enhance manufacturing readiness for advanced airfoil technology and support a more reliable production ramp-up.

“GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long‑standing relationship,” said James Stewart, chief executive of CPP. “As we advance our position as an industry leader in castings, GE Aerospace has expressed strong enthusiasm for supporting our continued growth and expanded vision. Together, we look forward to delivering meaningful value and advancing the success of both organizations.”

“We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team,” said Dan Zamlong, managing director of Warburg Pincus. “CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent, while expanding its ability to support customers across the commercial aerospace, defense, and power generation markets.”

“Berkshire Partners is grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth,” said Blake Gottesman, managing director of Berkshire Partners. “Together, we have strengthened CPP’s leadership in the castings industry, and we are excited for the company’s continued success as part of GE Aerospace.”

CPP, headquartered in Cleveland, Ohio, manufactures investment and precision sand castings used in commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. Its portfolio spans complex super alloy, titanium, aluminium, magnesium and steel cast components.

The company employs approximately 6600 people across more than 20 facilities. Founded in 1991, CPP is described as one of the world’s largest producers of investment and precision sand castings. GE Aerospace has been a customer of CPP for more than 15 years.

News: GE Aerospace to buy castings supplier for nearly $12 billion to tackle engine bottleneck

EQT pays $2bn for majority stake in McGill and Partners

BY Fraser Tennant

Accelerating its drive toward global expansion, Swedish private equity firm EQT is to acquire UK insurance broker McGill and Partners from US investment company Warburg Pincus in a transaction valued at $2bn.

The combination will see EQT invest behind McGill and Partners’ ambition to drive accelerated organic growth and global expansion by continuing to attract and support specialty broking talent in key markets, invest further in technology and data capabilities, and expand the firm’s digital solutions.

The investment from EQT will also enable McGill and Partners to continue its focus on driving disruptive innovation in a rapidly changing industry, with a differentiated client-first strategy and an exceptional track record of building industry-first digital solutions for clients and carrier partners.

“We are delighted to welcome EQT as our new partner and for our colleagues to retain a significant ownership stake in our firm,” said Steve McGill, founder and chief executive of McGill and Partners. “EQT’s track record of backing high-growth, best-in-class technology-enabled businesses makes them absolutely the right partner for the next stage of our journey.”

In just seven years, McGill and Partners has grown from its founding as an ambitious challenger into a scaled global specialty broking business, with revenues in excess of $250m, bringing together more than 600 colleagues across seven countries and serving over 1000 of the world’s most sophisticated insurance and reinsurance clients.

“We are deeply grateful for the unwavering backing and guidance of Warburg Pincus over the last seven years to help us build the leading specialty broker in the world,” continued Mr McGill. “This milestone is a lasting reflection of a phenomenal partnership.”

Upon completion, Mr McGill will continue to lead McGill and Partners, while John Lloyd, the firm’s chairman, will remain actively involved. Both will remain as significant shareholders alongside the firm’s wider colleague base, while Warburg Pincus will sell its equity stake in full, marking a successful conclusion to the firms’ partnership.

The transaction is subject to customary conditions and approvals and is expected to close during H1 2027.

“McGill and Partners has established a strong position in specialty insurance broking underpinned by impressive organic growth,” said Matthias Wittkowski, global co-head of services and a partner at EQT Private Equity. “We are at an exciting point in the business’s growth trajectory.”

News: EQT to acquire McGill and Partners, a leading specialty (re)insurance broker for USD 2.0 billion, from Warburg Pincus

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