What You Need To Know For April 3rd

The Week Ahead Of Us 🔍

Welcome back.

Futures are tanking as of right now following President Trump’s very aggressive tariff announcement. While some of these tariffs aren’t effective as of today, we’ll explain what has happened below.

Today’s piece is sponsored by Hebbia - the AI tool that 33% of the largest Asset Managers use.

Let’s get into it.

Earnings Corner 📜 

Trending Down 📉 

RH (RH): The home furnishings retailer reported earnings that missed estimates and issued a weak outlook, citing “the worst housing market in 50 years.” Mgmt. projected sales to grow 10%-13% in 2026 — below analysts’ expectations. They also expect a “high risk business environment… due to uncertainty caused by tariffs.” The stock was down 26.4%

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Tariffs Breakdown 💼 

Yesterday was “Liberation Day” with President Trump unveiling a 10% base tariff for every U.S. trading partner. Specific duties on every foreign automaker went effective at midnight, and they will have to pay a 25% tariff to import cars to the U.S.

Then, nations received varying reciprocal tariffs - with China for example facing a 34% reciprocal tariff (on top of an existing 20% tariff). China has urged the U.S. to cancel these measures immediately and is vowing counter-measures. The EU and Japan were told their reciprocal tariffs would be 20% and 24% respectively. Most shockingly, Vietnam and Taiwan were hit with 46% and 32% rates respectively - a massive hit for any Corporations that diversified their supply chain out of China to these countries.

Trump noted that reciprocal tariffs will go into effect on April 9th and the baseline tariff rates will go into effect on April 5th. So there’s a small window for these countries to try to negotiate before the reciprocal tariffs go into effect. Some of the goods not subject to the reciprocal tariff include pharmaceuticals, semiconductors, lumber, and certain energy & minerals not available in the United States.

Notably, Canada and Mexico were not subject to reciprocal tariffs for goods that are complaint with prior North American trade agreement. This is likely due to these nations being closer to a deal with the U.S. but non-USMCA trade agreement products will get slapped with a 25% tariff, plus both nations will be impacted heavily by the 25% foreign auto tariffs.

Trump is making this push to try to bring back US jobs and factories, to decrease the U.S. deficit, and to significantly raise tariff revenue. Upon implementation, Trump then wants to cut taxes for Americans. However, there’s concerns that tax cuts will then increase the U.S. deficit, and that these tariff policies will create an immediate recession and/or an immediate trade war.

As futures tank, it’s worth noting we at The Wall Street Rollup have been consistent in saying that high tariffs are very bad news as it relates to business and consumer confidence.

You can view the White House’s tariff memo here.

Today’s Headlines 🍿 

• Masayoshi brings down the axe: SoftBank may reduce OpenAI’s $40B funding round by 50% — dropping it to $20B — if the company fails to complete its transition to a for-profit structure by year-end

• CoreWeave rebounds: After a disappointing first day of trading, shares of the AI cloud company surged 42%. The IPO marked the biggest venture backed IPO for a U.S. company since 2021. News also broke that Google is negotiating a deal to rent server space from CoreWeave

• The NewsMax IPO Boom: After a 2,230% surge in its first two days as a public company, the conservative news outlet has swung downwards. Though it’s no longer more valuable than Fox, the company is still worth $15B (10x its $10/share offer price)

• Hooters is getting a lifeline. After filing for bankruptcy, its founders and franchises will be taking control of the iconic restaurant brand. Bracebridge Capital, who holds $50mm of subordinated debt, is among the lenders providing additional financing. $300mm of asset backed securities filed, with the Company seeking court approval for a $40mm DIP

• Larry Fink’s US Dollar Concerns: The Blackrock Chief warned that America’s rising national debt could drive the Dollar to be dethroned as the World’s reserve currency. Fink notes that decentralized assets like Bitcoin could take the Dollar’s place over time

• Private Equity has $3.6T of locked value: According to Bain, there are 29,000 unsold companies in PE fund portfolios, with estimates that these portfolios have about the same exit value as 2019 levels. The high rate environment is drawing worries around PE given fewer exits, low M&A activity, and dry powder they’re unable to deploy

• An Apollo Backed Deal might be Hung: ABC Technologies, an auto parts market backed by Apollo has raised $2.2B of debt financing from banks like Citi and JPM to finance the acquisition of Fluid Systems by April 15th. The $900mm leveraged loan and $1.33B high yield bonds sales have struggled given concerns over how tariffs will impact the business

• AGL Credit is struggling to raise money for its private credit platform: Despite an exclusive collaboration with Barclays and a $1B anchor investment from Adia, fundraising has reportedly been slow due to AGL’s lack of track record in private credit

• Coller Capital buys $1.6B direct lending portfolio from Brookfield Wealth Solutions: The secondaries specialists at Coller are taking on more than 3,000 loans. The transaction is one of the biggest ever in the secondaries private credit market

• I Squared Capital may sell TIP Group. The Miami-based investment firm is considering selling its European trailer-leasing business for $3B. Last year, I Squared merged TIP’s Canadian footprint with another portco for a combined fleet of more than 83k trailers

• DOGE devastates Deloitte: The Trump Administration has been slashing government spending on consultants across the board, but Deloitte’s been hit the hardest. The firm had 127+ contracts cut or downsized, almost 2x as many as runner up Booz Allen Hamilton

• Capital One’s acquisition of Discover nearing finish line. The Department of Justice is reportedly leaning toward waving the $35.3B purchase through, despite past antitrust concerns. The deal may still face state-level roadblocks, especially in New York where the combined company would have a 30% market share

• Circle is moving forward with IPO plans. The USDC stablecoin issuer has hired JPMorgan and Citi as underwriters. They’re targeting a $4-5B valuation for its IPO

• A judge dismissed bribery case against NYC Mayor Eric Adams. The decision comes after the Trump DOJ’s February decision to drop the charges. Because it was dismissed with prejudice, the case cannot be brought at a later date

• Yahoo seeks boost with marketing chief hire. The company hired Paramount’s former chief brand officer to realize “latent brand love” for “one of the OGs of the internet”

• Eli Lilly sues two pharmacies selling compounded GLP-1 drugs. Based on FDA guidance from March, the drugs Zepbound and Mounjaro are no longer in shortage. This closed a loophole that allowed competitors to make copycat, compounded versions of the weight-loss products

• AppLovin and Amazon are bidders to buy TikTok. President Trump’s April 5 deadline for the social media company to sell or shut down looms. Reportedly, he was briefed last Thursday on paths to keep the app operational

M&A Transactions💭 

Sterling Bank & Trust, a unitary thrift holding company, was acquired for $261.0M by EverBank. EV/Net Income was 122.08x and EV/Revenue was 4.54x. Hovde Group, Keefe, Bruyette & Woods, and Stifel advised on the sale.

Southern States Bank (NAS: SSBK), a full-service community bank, has reached a definitive agreement to be acquired for $381.0M by FirstBank (NYS: FBK). EV/Net Income was 10.93x and EV/Revenue was 3.84x. Performance Trust Capital Partners advised on the sale.

Pavilion Energy, provider of energy resources, was acquired for $2.0B by Shell (LON: SHEL). Barclays advised on the sale.

Mr. Cooper Group (NAS: COOP), a home loan servicer, has reached a definitive agreement to be acquired for $9.4B by Rocket Mortgage. EV/EBITDA was 9.95x and EV/Revenue was 3.12x. Citigroup advised on the sale.

Milacron Holdings, manufacturer and distributor of plastic processing equipment, was acquired for $287.0M by Bain Capital. The transaction values the company at $562.75M. EV/EBITDA was 8.79x and EV/Revenue was 2.2x. William Blair & Company advised on the sale.

Edifecs, developer of a healthcare information management software, was acquired for $3.05B by Cotiviti. J.P. Morgan and William Blair & Company advised on the sale.

Commonwealth Financial Network, provider of comprehensive financial services, has reached a definitive agreement to be acquired for $2.7B by LPL Financial Holdings (NAS: LPLA). Goldman Sachs advised on the sale.

The Europe-North Segment Business of Clear Channel Outdoor (NYS: CCO) was acquired by Bauer Media Group for $625.0M. EV/EBITDA was 4.88x. Deutsche Bank and Moelis advised on the sale.

Century Pulp and Paper, manufacturer of paper, board, tissue, and pulp products, was acquired for $403.89M by ITC (NSE: ITC). JM Financial advised on the sale.

The Fluid Handling Business Unit of CECO Environmental was acquired for $110.0M by May River Capital. EC Mergers and Acquisitions advised on the sale.

Belships (OSL: BELCO), a fully integrated owner and operator of dry bulk ships, was acquired for $482.45M by EnTrust Global. EV/EBITDA was 4.15x and EV/Revenue was 1.17x. ABG Sundal Collier and Fearnley Securities advised on the sale.

Alta Performance Materials, manufacturer of composite products, was acquired for $1.8B by KPS Capital Partners. Piper Sandler advised on the sale.

VOXX International, manufacturer and distributor in the automotive electronics, consumer electronics, and biometric industries, was acquired for $148.606M by Gentex (NAS: GNTX). EV/Revenue was 0.55x. Solomon Partners advised on the sale.

Village Bank & Trust Financial, a bank holding company, was acquired for $120.0M by TowneBank (NAS: TOWN). EVV/Net Income was 17.1x and EV/Revenue was 3.61x. Janney advised on the sale.

The Thermoformed and Flexibles Packaging Business of Sonoco (NYS: SON) was acquired by Toppan Holdings (TKS: 7911). RBBC Capital Markets and Goldman Sachs advised on the sale.

Sandy Spring Bancorp, a community-oriented banking organization, was acquired for $1.6B by Atlantic Union Bank (NYS: AUB). EV/Net Income was 80.39x and EV/Revenue was 3.96x. Keefe, Bruyette & Woods, and Stifel advised on the sale.

The Industrial Business Unit of Royal Purple was acquired by Lubrication Engineers for $110.0M. EV/Revenue was 3.79x. Moelis advised on the sale.

Pine Forest, a 300 MWac solar photovoltaic, has entered into a definitive agreement to be acquired by AIP Management for $200.0M.

Orion Health Group, operator of a health data management platform, was acquired for $114.35M by Healwell AI (TSE: AIDX).

The Brazil Business of Ontex was acquired by Softys for $106.94M.

Lake Norman Regional Medical Center, operator of a health care center, was acquired for $280.0M by Duke University Health System.

Kee Safety, provider of safety products, has entered into a definitive agreement to be acquired for $1.51B by 65 Equity Partners and Inflexion Private Equity Partners.

Kaonavi, provider of cloud based human resource management services, was acquired for $350.49M by The Carlyle Group. EV/EBITDA was 73.83x and EV/Revenue was 6.13x.

Giant Cement Holding, manufacturer of masonry cement, was acquired for $800.0M by Heidelberg Materials (ETR: HEI).

First Bancshares, operates as a bank holding company, was acquired for $1.51B by Renasant Bank (NYS: RNST). EV/Net Income was 19.51x and EV/Revenue was 5.44x. Keefe, Bruyette & Woods advised on the sale.

Fibrebond, manufacturer of custom-engineered structures, was acquired for $1.452B by Eaton (NYS: ETN). Stephens advised on the sale.

Evergreen Theragnostics, operator of contract development and manufacturing platform, was acquired for $250.0M by Lantheus Medical Imaging (NAS: LNTH). Centerview Partners advised on the sale.

The Midland Basin Entities Subsidiaries of Double Eagle Energy Holdings IV was acquired by Diamondback Energy (NAS: FANG) for $4.1B. J.P. Morgan, RBC Capital Markets, and Goldman Sachs advised on the sale.

Compania Minera Kolpa, operator of a metal mining company, has reached a definitive agreement to be acquired for $145.0M by Endeavour Silver (NYS: EXK).

Stancorp Financial Group (NYS: SFG) acquired The Employer Voluntary Benefits Business of Allstate Corporation (NYS: ALL) for $2.0B. Ardea Partners and J.P. Morgan advised on the sale.

Alani Nu, producer and retailer of health and fitness supplements, was acquired for $1.8B by Celcius Holdings (NAS: CELH). EV/EBITDA was 13.14x and EV/Revenue was 3.03x. Centerview Partners and J.P. Morgan advised on the sale.

2i Rete Gas, distributor of natural gas, was acquired for $2.24B by Italgas (MIL: IG). BNP Paribas, Mediobanca, and Goldman Sachs advised on the sale.

Wild, operator of a personal care brand, was acquired for $248.46M by Unilever (LON: ULVR).

Sequoia Financial Group acquired Carlson Capital Management. Carlson has $3.8B in client assets as of Dec. 31st, 2024.

Prism Vision Group, provider of advanced ophthalmology, was acquired for $850.0M by McKesson (NYS: MCK). The transaction values the company at $1.06B. Greenhill & Company advised on the sale.

EPIC Y-Grade Pipeline, operator of an oil and gas pipeline company, was acquired for $2.2B by Phillips 66 (NYS: PSX). Jefferies advised on the sale.

Desktop Metal (NYS: DM), manufacturer of 3D printing, has reached a definitive agreement to be acquired for $308.977M by Lite-On Technology (TAI: 2301). EV/Revenue was 1.84x. Stifel advised on the sale.

Private Placement Transactions💭 

Temporal, developer of an open-source microservices orchestration platform, raised $150.0M of Series C venture funding led by Tiger Global Management at a pre-money valuation of $1.62B.

Spinny, operator of a pre-owned car trading marketplace, raised $131.0M of venture funding led by Accel at a pre-money valuation of $1.67B.

ONE Amazon, provider of a crypto-powered project services, raised $105.0M of venture funding in the form of options from Gorilla Technology and Global Edge Worldwide Fund.

Isomorphic Labs, operator of digital biology company, raised $600.0M of venture funding led by Thrive Capital.

Granite-Integral, provider of two-way expansion facilities, was formed s a joint venture for $100.0M between Integral and Granite Asia.

Agility Robotics, developer of dipedal walking robots, raised $400.0M of venture funding from Amazon Industrial Innovation Fund, Playground Global, and DCVC at a pre-money valuation of $1.35B.

Fosun Health Insurance, provider of insurance services, raised $810.0M of venture funding from Dian Diagnostics, Fosun Pharma, and China International Capital Corporation.

Cognito Therapeutics, developer of disease-modifying digital therapeutics, raised $196.25M of venture funding from undisclosed investors.

AIRNA, developer of a ribonucleic avid editing platform, raised $155.0M of Series B venture funding led by Forbion and Venrock.

CMR Surgical, developer of surgical robotic systems, raised $200.0M of venture funding through a combination of debt and equity. The equity portion was provided by ABB Ventures, Watrium, GE HealthCare Technologies, Tencent Holdings, ABB, Instrumentarium Holdings, Image Frame Investment, SVF, PFM Health Sciences, Chimera Capital, Softbank Investment Advisers, Ally Bridge Group, Sandwater, Cambridge Innovation Capital, Vestland Invest, and Escala Capital Ventures.

Odds of the Day 🍒 

Kalshi traders are pricing in a 51% chance of a recession this year: A 10 point jump over the past week!

*New Traders on Kalshi receive a $20 bonus of trading credit when depositing $100+ with the code “HYH”.

Noteworthy Chart 🧭

Meme Cleanser 😆 

Until next time!

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