Chipmaker Wolfspeed files for Chapter 11 bankruptcy

BY Fraser Tennant

Amid huge debt and slowing demand from electric vehicle and industrial markets, chipmaker Wolfspeed has filed for Chapter 11 bankruptcy to facilitate the implementation of a restructuring support agreement (RSA) with key lenders.

Upon emergence from the Chapter 11 process, Wolfspeed expects to have reduced its overall debt by approximately 70 percent, representing a reduction of approximately $4.6bn and a reduction of its annual total cash interest payments by approximately 60 percent.

The company raised going-concern doubts in May 2025, as deepening economic uncertainty stemming from changing US trade policies, combined with weakening demand, triggered a series of financial challenges.

However, through the Chapter 11 filing and RSA, Wolfspeed expects to be better positioned to execute on its long-term growth strategy and accelerate its path to profitability. Concurrently, the company is continuing to operate as usual throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors in the ordinary course.

“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” said Robert Feurle, chief executive of Wolfspeed. “With a stronger financial foundation, Wolfspeed will be better positioned to move faster on our strategic priorities and maintain our position as a global leader in the silicon carbide market. The strong support of our lenders is a testament to their belief in our business and our ability to capitalise on the opportunities ahead, driven by our exceptional, purpose-built, fully automated 200mm manufacturing footprint.”

As the pioneers of silicon carbide – a more energy-efficient material than traditional silicon – and creators of the most advanced semiconductor technology on earth, Wolfspeed leads the market in the worldwide adoption of silicon carbide technologies that power the world’s most disruptive innovations.

Wolfspeed expects to move through the Chapter 11 process swiftly and emerge by the end of the third quarter of 2025.

“We remain laser-focused on delivering cutting-edge products to our customers and working with our vendors in the normal course,” concluded Mr Feurle. “I am confident that the restructuring process will better position Wolfspeed to meet the growing demands of the semiconductor market.”

News: Wolfspeed files for bankruptcy protection to cut worsening debt

Home Depot strikes $4.3bn SRS Distribution deal

BY Richard Summerfield

The Home Depot has agreed to acquire GMS, a building-products distributor, for about $4.3bn, via its subsidiary SRS Distribution.

Under the terms of the deal, SRS Distribution will acquire all of the outstanding shares of GMS for $110 per share, which amounts to around $4.3bn. The total enterprise value of the deal, including net debt, is around $5.5bn. The $110 per-share price represents a premium of approximately 36 percent to GMS’ share price as of 18 June 2025.

Home Depot expects the deal to be completed around early 2026, subject to customary closing conditions, including regulatory approvals and the tender of a majority of the shares of GMS common stock then outstanding on a fully diluted basis. If the tender offer is successfully completed, a wholly owned subsidiary of SRS will merge with and into GMS, and all of the outstanding shares of GMS that were not tendered in the tender offer will be converted into the right to receive the same $110 per share in cash offered to GMS shareholders in the tender offer. Home Depot expects to fund the transaction through cash on hand and debt.

“The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance,” said Ted Decker, chair, president and chief executive of The Home Depot. “In our first year of working together, we’ve captured significant synergies, including cross-selling new products and service offerings to both Home Depot and SRS customers, advancing Home Depot’s enterprise trade credit program through the SRS platform, and many other initiatives designed to drive the customer value proposition and operational efficiency. This success gives us confidence that the addition of GMS to the SRS platform will allow us to create even greater value for our customers.”

“The combination of GMS and SRS will provide the residential and commercial Pro customer with more fulfillment and service options than ever before,” said Dan Tinker, chief executive of SRS. “Together, we’ll create a network of more than 1,200 locations and a fleet of more than 8,000 trucks capable of making tens of thousands of jobsite deliveries per day. GMS is an industry leader with a proven track record of growth, and we look forward to welcoming the entire GMS team to SRS and capturing the exciting opportunity ahead.”

“We are excited to join with SRS and The Home Depot, and we believe this transaction delivers significant value to our customers, suppliers and team,” said John C. Turner, Jr., president and chief executive of GMS. “Since GMS’s founding, we have never strayed from our commitment to be the best distributor in our markets and provide outstanding service for our customers. We look forward to providing an even wider breadth of product offerings and services while delivering superior value to our professional contractor customers as part of SRS and The Home Depot family. We are confident that this transaction positions GMS to capitalize on the promising opportunities ahead and accelerate our growth.”

The move for GMS is notable for Home Depot as the company is attempting to draw more sales from contractors and other home professionals. GMS, founded in 1971, operates more than 300 distribution centres offering wallboard, ceilings, steel framing and complementary products, along with nearly 100 tool sales, rental and service centres across the US and Canada. Home Depot acquired SRS Distribution in 2024 for $18.25bn, in the largest acquisition in its history. SRS sells supplies to professionals in the landscaping, roofing and pool businesses and it has bought up many other smaller suppliers in recent years.

News: Home Depot targets contractors, rivals with $4.3 billion deal for GMS

Advent to acquire Spectris for £3.8bn

BY Richard Summerfield

Private equity (PE) group Advent International has agreed to buy industrial company Spectris in a £4.4bn deal, marking one of the biggest recent takeovers of a London-listed business.

The deal will see Spectris’s shareholders receive £37.63 per share in cash, including an interim dividend of 28p, which Spectris said its board was unanimously recommending as “fair and reasonable”. The offer represents a premium of almost 85 percent to the company’s share price on 6 June, the day before Advent’s interest first emerged. Advent’s offer values the group’s equity at about £3.8bn and gives it an enterprise value of £4.4bn, including debt.

The deal for Spectris comes after the company noted that it had rejected a “preliminary proposal” from PE group KKR earlier this month in favour of continuing discussions with Advent. KKR said it had been “engaging constructively” with Spectris, adding that while it had not made a new offer, it was in advanced stages of due diligence, and may still do so. KKR has urged Spectris shareholders to withhold action on Advent’s offer as it considers a formal bid.

“The Spectris management team have transformed the Spectris Group into a leading, sustainable business with high quality premium precision measurement solutions that enable customers to solve some of their greatest challenges,” said Mark Williamson, chairman of Spectris. “The Board remains confident in Spectris’ strategy and the opportunities that will be delivered over the medium term, but believes that Advent’s offer recognises the attractiveness of Spectris and represents strong and immediate cash value for shareholders at an attractive premium of 84.6 percent to the undisturbed share price. The Board believes that the offer will benefit Spectris’ stakeholders and the operational and financial resources of Advent are expected to enhance opportunities for our employees and the Company.”

“Since 2019, we have repositioned Spectris as a focused, high quality, compound growth business with advantaged positions in attractive end markets,” said Andrew Heath, chief executive of Spectris. “I would like to recognise the exceptional contribution of my colleagues - their talent, insight and commitment continues to drive our success. The next chapter of Spectris’ development will further fuel their ambition and provide new opportunities.

“Advent's offer recognises the quality of Spectris, our talented people, and our strong growth prospects,” he continued. “In light of a strong set of intentions set out today, the Board have confidence that Advent is committed to supporting Spectris with investment that will drive growth and accelerate delivery of our strategic objectives.”

“Acquiring Spectris is Advent’s vote of confidence in British engineering and innovation,” said Shonnel Malani, managing partner at Advent International. “As active partners, we are dedicated to accelerating Spectris’ growth and enhancing its leadership in precision measurement. With its talented people and proven track record of driving breakthroughs across industries, we are poised to invest in its continued success, pushing the boundaries of technological progress, expanding its global reach, and delivering transformative solutions to the world’s most dynamic sectors.”

News: Spectris snubs KKR for $5.9 billion Advent buyout

Couchbase acquired in $1.5bn cash deal

BY Fraser Tennant

In a transaction that will take the US software company private, Couchbase is to be acquired by private equity firm Haveli Investments for $1.5bn.

Under the terms of the definitive agreement, Couchbase stockholders will receive $24.50 per share in cash – representing a premium of approximately 67 percent to the closing stock price of 27 March 2025, the last full trading day prior to the announcement of Haveli’s investment into Couchbase.

Upon completion of the transaction, Couchbase will become a privately-held company, its common stock no longer being listed on any public market.

“The data layer in enterprise IT stacks is continuing to increase in importance as a critical enabler of next-generation artificial intelligence applications,” said Sumit Pande, senior managing director at Haveli Investments. “Couchbase’s innovative data platform is well positioned to meet the performance and scalability demands of the largest global enterprises. We are eager to collaborate with the talented team at Couchbase to further expand its market leadership.”

Technology-focused Haveli seeks to invest in the highest quality companies in the technology sector through control, minority or structured equity and debt investments with a focus on software, data, gaming and adjacent industries.

The firm partners with innovative companies throughout their lifecycle, providing operational and strategic support that enables portfolio companies to focus on driving innovation and increasing growth, scale and operating margins.

“Couchbase has been at the forefront of modern database technology, empowering developers and enterprises to build high-performance applications,” said Matt Cain, chair, president and chief executive of Couchbase. “This acquisition marks a significant milestone for our stockholders and an exciting new chapter for Couchbase.”

The transaction, which has been approved by the Couchbase board, is expected to close in the second half of 2025, subject to customary closing conditions, including approval by Couchbase’s stockholders and the receipt of required regulatory approvals.

“Haveli's investment is a strong affirmation of Couchbase’s market position and future potential,” concluded Mr Cain. “We are thrilled to partner with Haveli to accelerate our vision and deliver even greater value to our customers.”

News: Couchbase to be acquired by Haveli Investments for $1.5B in cash

At Home files for Chapter 11, closing “underperforming” stores

BY Fraser Tennant

In a move that will see the closure of 26 “underperforming” stores, home goods chain At Home has filed for Chapter 11 bankruptcy to strengthen its financial foundation and position the business for long-term success.

The filing will allow At Home to implement a restructuring support agreement (RSA) with lenders holding more than 95 percent of the company’s debt. The agreement sets forth terms of a prearranged financial restructuring that will eliminate substantially all of the company’s nearly $2bn in funded debt.

Pursuant to the RSA, following the consummation of its restructuring, the company expects there will be a transition of ownership of At Home to the lenders supporting the RSA and providing the company with new capital.

“We are pleased to have reached this agreement with our lenders, which represents a critical and positive advancement of our work to best position At Home for the future,” said Brad Weston, chief executive of At Home. “Over the past several months, we have taken deliberate steps to strengthen the foundation of our business – sharpening our focus, elevating our customer value proposition and driving operational discipline.”

In connection with this process, At Home is entering into an agreement for $600m in debtor-in-possession financing, which includes a $200m capital infusion from certain of its existing lenders and a ‘roll up’ of $400m of existing senior secured debt.

At Home has also filed a number of customary ‘first day’ motions with the bankruptcy court to maintain business operations, facilitate the efficient administration of the Chapter 11 cases and uphold its go‑forward commitments to its stakeholders, including the continued payment of team member wages and benefits without interruption.

“These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency and enhancing overall profitability,” continued Mr Weston. “While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs.”

Upon emergence from the prearranged restructuring process, At Home expects to move forward with new owners and a meaningfully strengthened balance sheet.

Mr Weston concluded: “The steps we are taking to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term.”

News: At Home files Chapter 11 bankruptcy, will close 26 stores