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M&A wrap: Coronavirus, Riverside, Nixon Peabody, Aon, Willis Towers, Madison Dearborn, Compass Diversified, PEWIN

Investors fears continued to spread on Wall Street on Monday, as worldwide cases in coronavirus rise and oil prices plummet. To get a sense of how the coronavirus is playing out in the middle market, Mergers & Acquisitions asked executives from private equity firm the Riverside Co., virtual data room provider …

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M&A wrap: KKR, Google, Looker, Genstar, KPS, Apax, CenterOak, Goldman Sachs, Investcorp, Windjammer, Manufacturing M&A


KKR (NYSE: KKR) has raised $1.3 billion for its global impact fund. The fund is “dedicated to investment opportunities in companies whose core business models provide commercial solutions to an environmental or social challenge,” the firm says. The fund will target companies in the lower middle-market that contribute towards the United Nations Sustainable Development Goals. Among the themes that the fund will focus on include: climate change, clean water, workforce development, waste, mobility, sustainability and infrastructure improvements. “We are thrilled to see our investors’ shared enthusiasm for the tremendous opportunity we see ahead for KKR Global Impact and will build on this to help set the new standard across investing, value creation and measuring success in the space,” says Alisa Amarosa Wood, KKR partner and head of KKR’s private market products group. Investment firms are raising funds that focus on climate change. For example, BlackRock has raised $1 billion to invest in wind, solar and battery-storage projects. Renewable energy is becoming “one of the most active sectors in infrastructure,” David Giordano, global head of BlackRock renewable power, told Bloomberg News. It comes, he said, “as global power generation shifts from two-thirds fossil fuels to two-thirds renewables over the next few decades.”

Large global Fortune 500 manufacturers are focusing on their core competencies and looking to divest non-core assets, resulting in acquisition opportunities for private equity firms. Manufacturers are continuously evaluating their lines of businesses and in recent years have been selling non-core assets to focus on bottom-line growth and profitability. A 2018 Ernst & Young study, How Can Divesting Fuel Your Future Growth, noted that nearly nine out of 10 companies planned to divest assets in the next two years, up from roughly four out of 10 a year earlier. Corporate decision makers say shifts in global tax policy, new technologies and other industry trends amplify the need to sell non-core assets and reroute capital to other business areas. This trend has been a boon for private equity firms in the sector like KPS Capital Partners. “Very large global Fortune 500 corporates are focusing on their core competencies,” says Michael Psaros, KPS co-founder. “The public stock market and activists are really pushing them to divest non-core business lines and they are listening.” Most of his firm’s investments have been complex carve-outs from corporate manufacturers executed on a global basis. In 2019, KPS acquired Howden, a provider of industrial gas handling products and services, from Colfax Corp. (NYSE: CFX), a welding and valves manufacturer, for $1.8 billion, including $1.66 billion in cash consideration. Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
The U.K.’s antitrust authority cleared Google’s (Nasdaq: GOOG) $2.6 billion takeover of Looker Data Sciences Inc., joining U.S. regulators in declining to open an in-depth review. The purchase was not likely to weaken competition as Google would not be inclined to stymie its rivals, the Competition and Markets Authority said. Google announced in June that it planned to buy California-based Looker to boost its cloud offering, which lags behind Amazon.com Inc. (Nasdaq: AMZN) and Microsoft Corp. (Nasdaq: MSFT). Read the full story by Bloomberg News: Google’s $2.6 Billion Looker deal cleared by U.K. regulator.

Genstar-backed energy data analytics company Enverus has acquired oil and gas technology firm RS Energy Group from Warburg Pincus. Goldman Sachs (NYSE: GS), Simpson Thacher, Weil, Gotshal & Manges LLP, Ropes & Gray LLP and Irell & Manella LLP advised Enverus. Credit Suisse, Jefferies and Kirkland & Ellis advised RS Energy.

Apax Partners is buying early childhood education provider Cadence Education from Morgan Stanley Capital Partners. William Blair, Lazard Middle Market and Debevoise & Plimpton LLP are advising Morgan Stanley. Simpson Thacher & Bartlett LLP is advising Apax.

CenterOak Partners-backed Service Champions has acquired Bell Brothers Plumbing Heating and Air, a provider of residential air conditioning and plumbing services. Greenberg Glusker Fields Claman & Machtinger LLP advised Bell Brothers, while Gibson, Dunn & Crutcher LLP advised CenterOak.

Goldman Sachs Merchant Banking and Eurazeo-backed Trader Interactive has purchased commercial trucking and equipment companies NextTruck, Rock & Dirt, Tradequip and Trade-A-Plane from the Cosby Harrison Co.

Investcorp has acquired seafood distributor Fortune Fish & Gourmet. Houlihan Lokey (NYSE: HLI) advised Fortune.

Corridor Capital-backed Nationwide Property & Appraisal Services LLC has bought appraisal management company Olde City Lending Solutions. Berkery Noyes advised Olde City.

MiddleGround Capital has acquired Banner Service Corp. from Centerfield. The target produces cold finished, straightened, ground, and polished metal bar products.

Windjammer Capital Investors has acquired Compex Legal Services, a provider of outsourced medical records retrieval and litigation support services.

DEAL TRENDS
Private equity deal value increased by 3 percent in 2019, despite a 6 percent drop in fundraising, according to EY’s PE Pulse report. Average fund sizes increased by 32 percent in 2019 to $846 million, helped along by new investors in the space such as family offices. PE exits increased by 2 percent.

PEOPLE MOVES
Philip Lo has joined alternative investment firm GPI Capital as a managing director, investor relations and business development. He was most recently with Siris Capital.

John Magee has been named CEO at Aurora Capital Partners-backed VLS Recover Services. Magee was previously with Worldwide Logistics.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions has named the 2020 Most Influential Women in Mid-Market M&A. This marks the fifth year we have produced the list, which recognizes female leaders with significant influence inside their companies and in the wider dealmaking world. It’s been gratifying to watch the project evolve over the years – and become more influential itself. This year, we received more nominations than ever before. As a result, we expanded the number honored to 42 in 2020, up from 36 in 2019. Many dealmakers are new to our list, including Rockwood Equity Partners’ Kate Faust, William Blair’s Shay Brokemond and Avante Capital Partners’ Ivelisse Simon. Read our full coverage of all the champions of change on our list, including Q&As with each individual.

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For an overview of what we’re looking for in each project, including timelines, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

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M&A wrap: Riverside, Watermill, Battery Ventures, Brentwood, Sun Capital, Center Rock, IOP, Manufacturing M&A


Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days. Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry. Robots are playing a role as well, and manufacturing automation has become appealing. A tight labor market hampers manufacturing companies, but it also leads to dealmaking, especially in robotics. Historic unemployment numbers have led to an extremely tight labor market. Manufacturers have turned to robots for help to meet demand. At the beginning of 2020, filings for U.S. unemployment benefits fell to a four-week low—just one of the latest signs that the labor market remains robust. In fact, in 2017 and 2018 the U.S. consistently added more than 200,000 jobs each month. Private equity firms see the labor shortage as an opportunity to purchase companies that can help with production and push portfolio companies to become more productive and efficient. “The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a Riverside partner. “Automation is an option. We have also worked closely with our portfolio companies to optimize the productivity and efficiency of our existing workforce and have established new incentives where necessary to increase throughput.” Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
Battery Ventures has raised two new funds totaling $2 billion, almost double its last total and highlighting investors’ growing interest in companies that cater to other businesses, rather than consumers. The new funds, a $1.2 billion Battery Ventures XIII, along with an $800 million side fund to help back extra-large bets, will keep investing in sectors like business-to-business software, information infrastructure and cybersecurity. Battery’s successes include tax-compliance software maker Avalara Inc., which first received an investment in 2012. Several of Battery’s portfolio companies were also acquired by bigger companies or private equity firms, including WebPT, ClearCare and Glassdoor. Read the full story by Bloomberg News: Battery Ventures raises $2 billion to go after enterprise companies.

Brentwood Associates has acquired Parchment. The target is a credential service that allows academic institutions and employers to request, verify and share credentials in simple and secure ways. Parchment will merge with Credentials Solutions, an education transcript services provider that was purchased by Brentwood in 2018. Goldman Sachs (NYSE: GS) and Quarles & Brady LLP advised Parchment. Shearman & Sterling represented Brentwood.

Sun Capital Partners has bought West Dermartogolgy from Enhanced Healthcare Partners. West operates 55 dermatology clinics throughout Arizona, California and Nevada. “Dermatology is a recession-resistant and growing industry within the broader retail health landscape,” says Sun co-CEO Marc Leder. Jefferies advised West.

Entrepreneurial Equity Partners has acquired Kronos Foods Corp. Kronos makes ready-to-eat Mediterranean foods and is known for its Greek gyros meat. Harris Williams advised Kronos. White & Case advised the buyer.

Center Rock Capital Partners-backed Linc Systems has bought Blackhawk Industrial Distribution’s dealer services business. The latter is a distributor of fasteners and packing supplies to lumberyards and construction materials dealers.

Industrial Opportunity Partners-backed Royston Group has bought Hamilton Laboratory Solutions, a manufacturer of labortory equipment.

Align Capital Partners-backed E Source has acquired predictive analytics company Trove Predictive Data Science.

ADI Global Distribution, a subsidairy of Resideo Technologies Inc. (NYSE: REZI), has acquired Herman ProAv. Herman supplies original replacement parts to the consumer electronics repair industry. The Dak Group advised Herman.

DEAL TRENDS
Broadly Syndicated Loan volume in the middle market declined throughout 2019, as a result of a rise in direct lending, a quiet leveraged buyout market, and a conservative approach from lenders. Interest rate spreads for institutional mid-market loans increased 30 basis points in Q4 2019 compared to Q3 2019 and have increased more than 50 basis points throughout the year, according to Capstone Headwaters, while leverage multiples declined during 2019 by 0.25x to 0.5x depending on the sector.

Family office Watermill has launched WMX, an initiative that brings private equity access and resources to women-led teams. About 28 percent of Watermill’s recent acquisitions have been women owned or led. Investors, advisors, and partners are collectively committed to growing this percentage and providing female leaders with the capital and resources needed to take their businesses to the next level. “We’re widening the path to private equity by making late stage investments in great teams led by women with a vision to build enduring businesses,” says Watermill president and COO Julia Karol. “As a women-led firm, we are committed to using our seat at the table to make more space for more companies with high growth potential. WMX is a mechanism to increase access to key financial, strategic and corporate resources that smart leaders need to thrive.”

Merchant bank the Raine Group has formed a strategic partnership with Brazilian investment bank G5 Partners that will focus on M&A and investment opportunities in the digital media and technology sectors in Brazil. “The TMT sector in Brazil is poised for significant growth,” say Raine co-founders Joe Ravitch and Jeff Sine.

PEOPLE MOVES
Derick Prelle has joined private equity firm Butterfly as a partner and head of portfolio operations. Prelle was previously with KKR.

Malcolm Tuesley has been named head of national security regulatory practice at Simpson Thacher & Bartlett. He joined the law firm in 2018, and advises clients national security reviews before the Committee on Foreign Investment in the United States (CFIUS).

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For an overview of what we’re looking for in each project, including timelines, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

M&A wrap: Angelo Gordon, T-Mobile, Sprint, Gryphon, Trilantic, Wind Point, Levine Leichtman, Manufacturing M&A


Alternative investment firm Angelo Gordon & Co. has raised its flagship distressed and corporate special situations credit fund at $1.8 billion. The fund “employs an all-weather investment approach designed to generate attractive risk-adjusted returns in any market environment.” Angelo Gordon’s credit business focuses on middle-market direct lending, consumer debt, liquid credit along with distressed and special situations. “Our solutions-based, partnership approach is differentiated, and we are committed to using our capital, creativity and scale to help companies and drive performance for our investors,” says Ryan Mollet, Angelo Gordon’s global head of distressed and corporate special situations. Global debt fundraising is on the rise, as funds look for alternative investments to park their excess capital. Middle-market loans aim to provide returns on investments in the high single-digit to low double-digit range. The average private debt fund size reached over $1.4 billion in 2019, the largest number on record, according to PitchBook’s H2 2019 Global Private Debt Report, while dry powder rose above $240 billion. Global private debt fundraising reached almost $126 billion across 89 funds in 2019. Direct lending accounted for about $72 billion, or nearly 57 percent of global capital raised in 2019.

Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days. Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry. Robots are playing a role as well, and manufacturing automation has become appealing. “The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.” Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
T-Mobile US Inc. won court approval for its $26.5 billion takeover of Sprint Corp. (NYSE: S), defeating a state-led lawsuit that sought to block the industry-altering wireless deal. The decision by a district judge in Manhattan is a huge win for T-Mobile and its owner Deutsche Telekom AG, as well as SoftBank Group Corp., Sprint’s parent. The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million. T-Mobile wins court approval for $26.5 Billion sprint deal.

Infosys (NYSE: INFY) is buying Simplus for $250 million. The target advises on implementation, data integration and also offers training services for Salesforce quote-to-cash programs. “This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem,” says Infosys chief operating officer Pravin Rao.

Gryphon Investors is investing in Pacur, a supplier of plastic packaging materials for the medical device industry. Wells Fargo Securities and Koley Jessen. are advising the target. Kirkland & Ellis and WIlliam Blair are advising Gryphon.

Trilantic North America has acquired Gorilla Commerce. The latter operates a direct-to-consumer home and pet product development platform. Kirkland & Ellis advised Trilantic, while Lincoln International advised Gorilla.

Wind Point Partners-backed A&R Logistics has acquired bulk liquid transportation company First Choice Logistics. Kirkland & Ellis and KPMG advised A&R. Wells Fargo Advisors and Hinshaw & Culbertson advised First Choice.

Levine Leichtman Capital Partners-backed Smith System Driver Improvement Institute has acquired Driver’s Alert. The target offers fleet management safety services, including online safety training, data management and risk identification tools.

One Equity Partners-backed the W.W. Williams Co. has acquired CP Co. The latter sells cold storage equipment and related parts.

Oval Partners and Flex Technology Group have invested in Ultrex Business Solutions, a managed print, IT services and information management company.

Incline Equity Partners has invested in healthcare supplies distributor ASP Global.

Mountaingate Capital-backed Bounteous has bought digital marketing agency the Archer Group.

DEAL TRENDS
There were 439 deals worth over $130 billion in the fintech sector in 2019, according to Hampleton Partners. Some notable transactions include Fidelity’s acquisition of Worldpay at $44 billion and Fiserv’s $22 billion purchase of First Data. “With large technology companies knocking at their doors, incumbent financial institutions must continue to engage aggressively with fintech disruption, whether by building their own capabilities; by partnering; or by acquiring, given the pace of innovation in the sector,” says Hampleton director Jonathan Simnett.

PEOPLE MOVES
Irina Adler was hired by investment bank PJ Solomon as a managing director, where she is concentrating on the retail and consumer sectors. She was most recently with Morgan Stanley.

Scott Cohen and Robert Cardone have joined law firm Shearman & Sterling as partners where they are focusing on M&A. They were both previously with Jones Day.

Michael Weiss and Niall McComiskey have been promoted to managing partners at private equity firm Greenbriar Equity Group.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

M&A wrap: Angelo Gordon, T-Mobile, Sprint, Gryphon, Trilantic, Wind Point, Levine Leichtman, Manufacturing M&A


Alternative investment firm Angelo Gordon & Co. has raised its flagship distressed and corporate special situations credit fund at $1.8 billion. The fund “employs an all-weather investment approach designed to generate attractive risk-adjusted returns in any market environment.” Angelo Gordon’s credit business focuses on middle-market direct lending, consumer debt, liquid credit along with distressed and special situations. “Our solutions-based, partnership approach is differentiated, and we are committed to using our capital, creativity and scale to help companies and drive performance for our investors,” says Ryan Mollet, Angelo Gordon’s global head of distressed and corporate special situations. Global debt fundraising is on the rise, as funds look for alternative investments to park their excess capital. Middle-market loans aim to provide returns on investments in the high single-digit to low double-digit range. The average private debt fund size reached over $1.4 billion in 2019, the largest number on record, according to PitchBook’s H2 2019 Global Private Debt Report, while dry powder rose above $240 billion. Global private debt fundraising reached almost $126 billion across 89 funds in 2019. Direct lending accounted for about $72 billion, or nearly 57 percent of global capital raised in 2019.

Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days. Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry. Robots are playing a role as well, and manufacturing automation has become appealing. “The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.” Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
T-Mobile US Inc. won court approval for its $26.5 billion takeover of Sprint Corp. (NYSE: S), defeating a state-led lawsuit that sought to block the industry-altering wireless deal. The decision by a district judge in Manhattan is a huge win for T-Mobile and its owner Deutsche Telekom AG, as well as SoftBank Group Corp., Sprint’s parent. The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million. T-Mobile wins court approval for $26.5 Billion sprint deal.

Infosys (NYSE: INFY) is buying Simplus for $250 million. The target advises on implementation, data integration and also offers training services for Salesforce quote-to-cash programs. “This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem,” says Infosys chief operating officer Pravin Rao.

Gryphon Investors is investing in Pacur, a supplier of plastic packaging materials for the medical device industry. Wells Fargo Securities and Koley Jessen. are advising the target. Kirkland & Ellis and WIlliam Blair are advising Gryphon.

Trilantic North America has acquired Gorilla Commerce. The latter operates a direct-to-consumer home and pet product development platform. Kirkland & Ellis advised Trilantic, while Lincoln International advised Gorilla.

Wind Point Partners-backed A&R Logistics has acquired bulk liquid transportation company First Choice Logistics. Kirkland & Ellis and KPMG advised A&R. Wells Fargo Advisors and Hinshaw & Culbertson advised First Choice.

Levine Leichtman Capital Partners-backed Smith System Driver Improvement Institute has acquired Driver’s Alert. The target offers fleet management safety services, including online safety training, data management and risk identification tools.

One Equity Partners-backed the W.W. Williams Co. has acquired CP Co. The latter sells cold storage equipment and related parts.

Oval Partners and Flex Technology Group have invested in Ultrex Business Solutions, a managed print, IT services and information management company.

Incline Equity Partners has invested in healthcare supplies distributor ASP Global.

Mountaingate Capital-backed Bounteous has bought digital marketing agency the Archer Group.

DEAL TRENDS
There were 439 deals worth over $130 billion in the fintech sector in 2019, according to Hampleton Partners. Some notable transactions include Fidelity’s acquisition of Worldpay at $44 billion and Fiserv’s $22 billion purchase of First Data. “With large technology companies knocking at their doors, incumbent financial institutions must continue to engage aggressively with fintech disruption, whether by building their own capabilities; by partnering; or by acquiring, given the pace of innovation in the sector,” says Hampleton director Jonathan Simnett.

PEOPLE MOVES
Irina Adler was hired by investment bank PJ Solomon as a managing director, where she is concentrating on the retail and consumer sectors. She was most recently with Morgan Stanley.

Scott Cohen and Robert Cardone have joined law firm Shearman & Sterling as partners where they are focusing on M&A. They were both previously with Jones Day.

Michael Weiss and Niall McComiskey have been promoted to managing partners at private equity firm Greenbriar Equity Group.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

M&A wrap: Riverside, KPS, Sun Capital, Simon Property, Xerox, HP, Silver Lake, SoulCycle, AEI, Huron, Manufacturing M&A


Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days. Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry. Robots are playing a role as well, and manufacturing automation has become appealing. “The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.” Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
Xerox Holdings Corp. (NYSE: XRX) increased its offer price for HP Inc. (NYSE: HPQ) to $24 a share, boosting the bid by $2 a share in an effort to win control of the computer hardware maker, which has previously refused to engage in takeover talks because it said the offer was too low. Read the full story by Bloomberg News: Xerox increases offer for HP.

Silver Lake has invested in gym operator Equinox, the majority owner of SoulCycle. Equinox will use the capital to expand its digital platform and add more locations, as it tries to compete against Peloton.

Simon Property Group Inc. (NYSE: SPG) is buying a majority stake in Taubman Centers Inc. (NYSE: TCO) for $3.6 billion. Taubman owns, manages or leases 26 shopping centers across the U.S. and Asia. “By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities,” says Simon CEO David Simon. BofA Securities, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Latham & Watkins LLP are advising Simon. Goldman Sachs (NYSE: GS) and Honigman LLP are advising Taubman. Kirkland & Ellis represented Taubman’s special committee.

Square Inc. (NYSE: SQ) has bought machine learning company Dessa. Latham & Watkins advised Square.

American Industrial Partners-backed Rand Logistics is buying American Steamship Co. from GATX Corp. The target offers dry bulk transportation services.

Harvest Partners has completed its investment in MRI Software, joining existing investors TA Associates and GI Partners.

Huron Capital-backed Ronnoco Beverage Solutions has bought Trident Beverage, a provider of beverage and dispensing products for the foodservice sector.

Align Capital Partners-backed Alliance Source Testing has acquired Metco Environmental, an emissions testing services company, from Eurofins Scientific’s TestAmerica.

Varsity Healthcare Partners-backed Probo Medical has acquired Elite Medical Technologies and Future Medical Equipment.

Inflexion-backed Ocorian has acquired Estera, a provider of funds, coporate and trust services. Bridgepoint advised the target.

For more deal news, see Weekly wrap: Advent, Crosspoint, Science Applications, Westrock Coffee.

For more on fundraising, see PE fundraising scorecard: Declaration Partners, KKR, Magnum, RC Advisors.

DEAL TRENDS
Global debt fundraising is on the rise, as funds look for alternative investments to park their excess capital. Middle-market loans aim to provide returns on investments in the high single-digit to low double-digit range. The average private debt fund size reached over $1.4 billion in 2019, the largest number on record, according to PitchBook’s H2 2019 Global Private Debt Report, while dry powder rose above $240 billion. Global private debt fundraising reached almost $126 billion across 89 funds in 2019. Direct lending accounted for about $72 billion, or nearly 57 percent of global capital raised in 2019.

PEOPLE MOVES
Dean Nordlinger has joined law firm Blank Rome as a partner. He was previously with Miles & Stockbridge, and focuses on private equity and M&A.

Margery Fischbein and Deborah Aghib were hired by investment bank Cassel Salpeter & Co. as managing directors where they are focusing on the healthcare sector. Fischbein was most recently with Seaport Global, while Aghib comes from CRG.

Michael Breit, Christopher Loiacono and Jay Weinstein have been promoted to vice chairs at EisnerAmper.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

M&A wrap: Riverside, KPS, Sun Capital, Simon Property, Xerox, HP, Silver Lake, SoulCycle, AEI, Huron, Manufacturing M&A


Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days. Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry. Robots are playing a role as well, and manufacturing automation has become appealing. “The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.” Read our full coverage: 5 trends driving manufacturing M&A.

DEAL NEWS
Xerox Holdings Corp. (NYSE: XRX) increased its offer price for HP Inc. (NYSE: HPQ) to $24 a share, boosting the bid by $2 a share in an effort to win control of the computer hardware maker, which has previously refused to engage in takeover talks because it said the offer was too low. Read the full story by Bloomberg News: Xerox increases offer for HP.

Silver Lake has invested in gym operator Equinox, the majority owner of SoulCycle. Equinox will use the capital to expand its digital platform and add more locations, as it tries to compete against Peloton.

Simon Property Group Inc. (NYSE: SPG) is buying a majority stake in Taubman Centers Inc. (NYSE: TCO) for $3.6 billion. Taubman owns, manages or leases 26 shopping centers across the U.S. and Asia. “By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities,” says Simon CEO David Simon. BofA Securities, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Latham & Watkins LLP are advising Simon. Goldman Sachs (NYSE: GS) and Honigman LLP are advising Taubman. Kirkland & Ellis represented Taubman’s special committee.

Square Inc. (NYSE: SQ) has bought machine learning company Dessa. Latham & Watkins advised Square.

American Industrial Partners-backed Rand Logistics is buying American Steamship Co. from GATX Corp. The target offers dry bulk transportation services.

Harvest Partners has completed its investment in MRI Software, joining existing investors TA Associates and GI Partners.

Huron Capital-backed Ronnoco Beverage Solutions has bought Trident Beverage, a provider of beverage and dispensing products for the foodservice sector.

Align Capital Partners-backed Alliance Source Testing has acquired Metco Environmental, an emissions testing services company, from Eurofins Scientific’s TestAmerica.

Varsity Healthcare Partners-backed Probo Medical has acquired Elite Medical Technologies and Future Medical Equipment.

Inflexion-backed Ocorian has acquired Estera, a provider of funds, coporate and trust services. Bridgepoint advised the target.

For more deal news, see Weekly wrap: Advent, Crosspoint, Science Applications, Westrock Coffee.

For more on fundraising, see PE fundraising scorecard: Declaration Partners, KKR, Magnum, RC Advisors.

DEAL TRENDS
Global debt fundraising is on the rise, as funds look for alternative investments to park their excess capital. Middle-market loans aim to provide returns on investments in the high single-digit to low double-digit range. The average private debt fund size reached over $1.4 billion in 2019, the largest number on record, according to PitchBook’s H2 2019 Global Private Debt Report, while dry powder rose above $240 billion. Global private debt fundraising reached almost $126 billion across 89 funds in 2019. Direct lending accounted for about $72 billion, or nearly 57 percent of global capital raised in 2019.

PEOPLE MOVES
Dean Nordlinger has joined law firm Blank Rome as a partner. He was previously with Miles & Stockbridge, and focuses on private equity and M&A.

Margery Fischbein and Deborah Aghib were hired by investment bank Cassel Salpeter & Co. as managing directors where they are focusing on the healthcare sector. Fischbein was most recently with Seaport Global, while Aghib comes from CRG.

Michael Breit, Christopher Loiacono and Jay Weinstein have been promoted to vice chairs at EisnerAmper.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influenital Women in Mid-Market M&A. For each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

5 trends driving manufacturing M&A

Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days.

Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry.

Robots are playing a role as well, and manufacturing automation has become appealing.

“The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.”

The bottom line: The smartest investors are finding ways not only to invest in manufacturing companies, but to grow their investments as well.

“The manufacturing industry is changing so quickly, and on a global basis, that the sector presents an enormous investment opportunity,” says Michael Psaros, co-founder and managing partner of KPS Capital Partners, a manufacturing-focused private equity firm that recently raised $6 billion and $1 billion funds in four weeks. “Companies and entire industries are being transformed by technology and by globalization, We see value in manufacturing where others do not and we make these manufacturers better. It’s a great time to invest in the sector and we are excited about what’s to come.”

Mergers & Acquisitions explores five trends fueling manufacturing deals on the pages that follow.

Source: The Latest

Posted on

M&A wrap: M&A Mid-Market Award Nominations, Nike, Carlyle, Ecosystem, Bain, Freeman Spogli, IOP


The deadline for Mergers & Acquisitions 13th Annual M&A Mid-Market Awards nominations is fast approaching. The awards honor leading dealmakers and deals that set the standard for transactions in the middle market in 2019. Last year’s winners included TA Associates, Nike, Fortive and Hollie Haynes, who took home Dealmaker of the Year for raising a second fund for Luminate Capital Partners. Nominations are accepted only through our electronic forms. The deadline is Friday, Feb. 7, 2020. There is no fee. For more information on the nomination process and what we seek in winning candidates, see Call for nominations: Submissions for the M&A Mid-Market Awards due Feb. 7.

DEAL NEWS
Ecosystem Investment Partners has raised its fourth fund at $455 million. The PE firm focuses on investing in ecological and conservation projects. “These projects meet a large and growing demand for environmental offsets that mitigate unavoidable impacts to wetlands, streams, water quality and other important natural resources stemming from infrastructure, commercial, industrial and residential development,” the firm says in a release. Monument Group and Choate Hall & Stewart advised Ecosystem.

A group led by Bain Capital Private Equity is buying Apax Partners’ and NB Renaissance Partners’ stake in Engineering Group. The target is a IT services provider that focuses on digital transformation. Rothschild, Simpson Thacher & Bartlett, BonelliErede and PwC are advising the sellers.

Freeman Spogli has bought Galco Industrial Electronics Inc. The latter sells electronic industrial control and automation parts. Ropes & Gray advised Freeman Spogli. BB&T Capital Markets and Fried, Frank, Harris, Shriver & Jacobson LLP advised Galco. Madison Capital and BMO Harris provided financing.

Industrial Opportunity Partners has acquired Competition Cams, a manufacturer of aftermarket automotive parts. Winston & Strawn and McDermott Will & Emery advised IOP. Financing was provided by PNC Bank, Freeport Financial Partners and Norwest Mezzanine Partners.

Center Rock Capital Partners-backed Linc Systems has purchased R.V. Evans Co., a distributor of fastening and packaging products.

Warburg Pincus, is considering a sale of Service Logic, a commercial heating, ventilation, and air-conditioning company that could fetch more than $1.5 billion, according to Bloomberg News. Service Logic is one of a number of HVAC assets likely to come to market in 2020. Read the full story by Bloomberg: Warburg Pincus considers Service Logic sale.

Design House has acquired furniture wholesaler Leick Furniture. Livingstone advised the buyer.

Waud Capital Partners has formed a new investment platform to seek deals in the healthcare information technology sector. The PE firm has partnered with former MatrixCare CEO John Damgaard on the platform.

DEAL TRENDS
The Carlyle Group (Nasdaq: CG) reported a fourth quarter loss of $8.3 million, beating analysts expecations. These are the first earnings Carlyle reported since it converted to a corportation. “Carlyle had a great 2019, delivering strong results and reaching key milestones around our most important priorities. With our best in class corporate conversion complete, we are more shareholder friendly and excited to keep our operating momentum going,” say Carlyle co-CEOs Kewsong Lee and Glenn Youngkin.

There were 37 deals in the accounts receivable management sector totaling to $1.7 billion in deal value in 2019, according to Corporate Advisory Solutions. In addition, there were 73 revenue cycle management deals with over $9.6 billion in deal value, and 42 customer relationship management transactions over $5.9 billion in value.

PEOPLE MOVES
Tracy Pizzi has been promoted to partner at consumer-focused private equity firm Yellow Wood Partners. Pizzi joined the firm in 2016 as chief financial officer.

Jim Lott has joined PE firm Peak Rock Capital as a managing director. Most recently with GTCR, Lott is focusing on improving tech-related services within Peak Rock’s portfolio.

Rohan Narayan has joined PE firm One Rock Capital Partners as a partner. He was most recently with Lindsay Goldberg.

Christopher Parisi was hired by investment bank Carl Marks Advisors as a managing director and Michael Gordon has joined as vice president. Parisi was most recently with FPG Advisory, while Gordon comes from KPMG.

Alex Conti has been promoted to managing director at accounting firm UHY Advisors. He focuses on due diligence, restructuring and capital sourcing.

Gregory Klein and Michael Kaplan have koined law firm Simpson Thacher & Bartlett. They were both previously with Irell & Manella and focus on M&A.

Philip Dunlap and David Bowsher were hired by law firm Balch & Bingham as partners. They focus on M&A in the energy sector.

FEATURED CONTENT
Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable’s Belinda Martinez Vega: Why businesses are adding women to their boards.

If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most s for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest

Posted on

M&A wrap: Vestar, Simple Mills, Forever 21, Worldline, Ingenico, Arsenal, CenterOak, M&A Mid-Market Award Nominations


Middle-market private equity firm Vestar Capital Partners has raised its seventh fund at $1.1 billion. The firm focuses on the consumer, business services and healthcare sectors, with a focus on family and founder-owned opportunities. The fund has already made two investments in IRI, a provider of big data and predictive analytics for the consumer, retail and media sectors; and better-for-you food brand Simple Mills. “Vestar’s talented investment team consistently leverages deep sector relationships to uncover overlooked opportunities, while our Vestar resources team works closely with company management to deliver operational improvement,” says Vestar CEO Dan O’Connell. Since it was founded in 1988, Vestar has invested $8 billion in 83 companies and made 200 add-on acquisitions. About three-quarters of PE managers raising a fund in 2020 expect it to be larger than the prior money pool, according to an EY survey. That’s the highest share since 2013, when EY first started posing the question to firms. Almost 60 percent of managers plan to raise a fund in the coming year, the survey found. Kirkland & Ellis advised Vestar on the fundraise, while Monument Group served as placement agent.

The deadline for Mergers & Acquisitions 13th Annual M&A Mid-Market Awards nominations is fast approaching. The awards honor leading dealmakers and deals that set the standard for transactions in the middle market in 2019. Last year’s winners included TA Associates, Nike, Fortive and Hollie Haynes, who took home Dealmaker of the Year for raising a second fund for Luminate Capital Partners. Nominations are accepted only through our electronic forms. The deadline is Friday, Feb. 7, 2020. There is no fee. For more information on the nomination process and what we seek in winning candidates, see Call for nominations: Submissions for the M&A Mid-Market Awards due Feb. 7.

Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Health Navigator has joined Amazon Care, which is designed to serve as a medical benefit for employees and helps provide care virtually through a video visit, or home visits, if additional care is needed. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

DEAL NEWS
A group including two of Forever 21 Inc.’s biggest landlords has offered to buy the bankrupt retailer for $81 million, a fraction of what the international fashion pioneer was once worth. The consortium of Simon Property Group Inc., Brookfield Property Partners LP and Authentic Brands Group LLC is seeking to buy substantially all of the company’s assets, according to documents filed in federal bankruptcy court. The chain has since struggled to raise money to exit bankruptcy, with potential lenders and buyers balking because of poor sales and the founding Chang family’s insistence on maintaining control. Read the full story by Bloomberg News: Forever 21 has $81 million bid From Simon, Brookfield, Authentic.

Worldline’s deal to acquire Ingenico includes a key existing collaboration that allows the companies to compete with the large issuer/merchant services tie-ups from from 2019. Worldline and Ingenico will access the German Savings Bank Group, which will support technology development and payment services for both banking and payments. That was also a main goal of more than $100 billion in earlier deals, such as Fiserv’s acquisition of First Data, FIS’ purchase of WorldPay and Global Payments merger with TSYS. Overall, The €7.8 billion (about $8.6 billion) acquisition of Ingenico by Worldline will create the world’s fourth largest payments company and a juggernaut in merchant services. Read the full coverage from PaymentsSource: Worldline’s $8.6 billion bid for Ingenico creates a payments giant.

Arsenal Capital Partners-backed Chroma Color Corp. has bought Plastics Color Corp. from PMC Capital Partners. Stout Risius Ross Advisors and Benesch, Friedlander, Coplan & Aronoff LLP advised Chroma. Genesis Capital provided financing.

New Mountain Capital has acquired ILC Dover Inc. from Behrman Capital. The target makes flexible materials for the aerospace and defense, biopharmeutical and food and beverage sectors. Houlihan Lokey (NYSE: HLI) and Latham & Watkins advised the target.

Searchlight Capital has invested in Global Risk Partners, a U.K.-based independent insurance intermediary. RBC Capital Markets and Willkie Farr & Gallagher advised Searchlight. Evercore and Slaughter and May advised Global Risk.

CenterOak Partners-backed Cascade Windows has acquired vinyl windows and doors manufacturer Amerimax Windows & Doors from OmniMax International.

3i-backed Regional Rail is buying Carolina Coastal Railway Inc., a freight railroad operator in North Carolina and South Carolina.

Welsh, Carson, Anderson & Stowe and Humana Inc.’s (NYSE: HUM) Partners in Primary Care have formed a joint venture to expand primary care for Medicare patients. Welsh Carson is investing $600 million in the joint venture will own a majority stake. “There is a significant unmet need for value-based, senior-focused primary care in the U.S,” says Welsh Carson general partner David Caluori.

Asset managers Federated Investors Inc. and Hermes Investment Management have combined their names to become Federated Hermes Inc. “We now have all the components together to take advantage of opportunities across the globe while enhancing two successful business cultures,” says Federated Hermes CEO Christopher Donahue.

PEOPLE MOVES
Karen LeVert was hired by investment firm Pappas Capital as a venture partner where she is the leading the firm’s specialized fund management business, particularly in the agtech sector. LeVert previously founded Southeast TechInventures and Ag TechInventures.

Eric Levin has joined alternatives investment firm GCM Grosvenor as chief technology officer. He was most recently with Peak6 Investments.

Ed Batts and Charles Walker were hired by law firm Gibson, Dunn & Crutcher LLP as partners. The two were previously with Orrick, Herrington & Sutcliffe and they focus on M&A.

FEATURED CONTENT
If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald’s, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most s for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham’s 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

Source: The Latest