Deal Dispatch: Lovely Day To Sell Guinness? Plus, 23andMe To Rid Lineage Of Lemonaid

It seems even the mighty Guinness isn't immune to a hangover from the economic times. Diageo, the global booze behemoth, is reportedly considering selling or spinning off its iconic beer brand.

The deal could fetch a frothy $10 billion, according to Bloomberg.

The reasons? Inflation and health concerns have joined forces to rain on the alcohol industry's parade. Rising prices are driving consumers toward cheaper alternatives, while healthcare warnings about alcohol's impact on health are leaving some reconsidering their drink of choice.

The financial toll is sobering. Diageo's shares have tumbled 10% over the past year and a staggering 27% over five years.

For now, Diageo is weighing its options: hold onto its stout heritage or let someone else take a crack at keeping Guinness flowing. One thing's for sure — if a deal goes through, it could be a toast-worthy moment for shareholders.

New On The Block

23andMe ME wants to sell its telehealth unit, Lemonaid Health, per Business Insider. The Sunnyvale, Calif., consumer genomics company acquired Lemonaid for $400 million in 2021.
Italmatch, a chemicals firm, is on the block. On the sell side is Bain Capital, which acquired it in 2018. A deal could value it at €1.5 billion, Bloomberg reported.
Spotless Brands, a car wash operator, is considering a sale. Reuters’ sources place the value at $3 billion.
Reuters also reported that Physician’s Choice, a maker of supplements and probiotics, is exploring a sale. The price tag is estimated to be about $500 million.

Updates From The Block

Billionaire Frank McCourt told Axios at Davos this week that he has spoken to YouTube star Jimmy Donaldson (aka Mr. Beast) about teaming up to buy TikTok.

Okay fine, I'll buy Tik Tok so it doesn't get banned
— MrBeast (@MrBeast) January 14, 2025

According to Bloomberg, Brookfield Asset Management is looking to close a $950 million deal for Divvy Homes. Tiger Global Management and Caffeinated Capital previously valued the startup at $2 billion.
Also from Bloomberg: Bain Capital matched a bid from CC Capital in an effort to buy Insignia, the Australian wealth manager. The offer is around $1.9 billion.
HongShan Capital confirmed a deal to acquire Marshall Group, a Swedish audio equipment maker, for $1.2 billion.
A group of big investors may ask the courts to grant it more than the current takeover price for Endeavor Group Holdings, given a sharp rally in its most valuable asset, a majority stake in the company that owns UFC and WWE. It is also possible that Silver Lake, the tech investment firm that reached a deal to take Endeavor private in April, could boost its offer for Endeavor, which is led by CEO and Hollywood agent Ari Emanuel. The deal is expected to close in the current quarter, according to Barron’s.

Off The Block

Elm Company agreed to acquire Thiqah, a business services firm, from Saudi Arabia’s Public Investment Fund for $906 million, Reuters reported.

Bankruptcy Block

The Container Store is exiting bankruptcy with a lender-backed plan, cutting $88 million in debt, securing $40 million in fresh capital, and saving 3,800 jobs.
Electric vehicle maker Nikola NKLA is going bankrupt. Elecktrek editor-in-chief Fred Lambert reported that "the bankruptcy filing is already in the hands of lawyers” and the Phoenix, Arizona-based company was hoping for a deal with Hyundai. It didn’t come to fruition. Also, CEO Stephen Girsky is exiting the company.

A source (a new source can't confirm but has some credibility) says Nikola CEO Stephen Girsky is out, and the bankruptcy filing is already in the hands of lawyers. More employees are being let go.

I reached out to Girsky, but he didn't respond. The company has been radio silent…
— Fred Lambert (@FredericLambert) January 23, 2025

Notes From the Block

"The M&A market is steadily gaining strength as sponsor activity rebounds, regulatory and monetary dynamics normalize, and corporates continue demonstrating their intention to simplify portfolios," Stephan Feldgoise, co-head of global M&A at Goldman Sachs, wrote in a recent report.
Despite large-scale transaction volumes remaining below historical averages, the number of $10 billion-plus deals rose 26% year-over-year, the bank noted. Goldman expects to see a meaningful pickup in 2025 across sectors—namely technology,
healthcare, and financials—”as regulatory concerns abate.”

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