M&A daily wrap: Clorox, Luminate Capital, Private Advisors, TA Associates, Plexus Capital, Goodwin Procter, Thomson Reuters
The Clorox Co. (NYSE: CLX) has agreed to buy vitamin maker Nutranext from WM Partners for about $700 million. The Sunrise, Florida-based target makes multivitamins and supplements under the Rainbow Light, Natural Vitality and Neocell brands, and generates around $200 million in annual sales. Clorox CEO Benno Dorer says the deal is part of the company's "strategy to accelerate growth through acquisitions of leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness." In 2016, Clorox acquired probiotics maker Renew Life Holdings from Swander Pace Capital for about $290 million. Morrison & Foerster is representing WM Partners.
Luminate Capital Partners has invested in automated software provider Conexiom. Customer service and sales teams use Conexiom's technology to capture purchase orders, pricing agreements, invoices and other key documents, and transform them into an electronic format that can be delivered directly into their organization’s ERP system, eliminating manual entry. Kirkland & Ellis and Blake Cassels & Graydon LLP served as legal advisors to Luminate. DCS Advisory and Harper Grey LLP advised Conexion. Financial terms were not disclosed.
A significant majority of transaction professionals predict that M&A activity will accelerate in 2018. Eighty-three percent of those who responded to the Thomson Reuters Dealmakers Sentiment Survey said they expect deal volume to rise, with 49 percent anticipating an increase of 5 to 25 percent, and 34 percent of respondents expecting an increase of 25 percent or higher. Read the full story here.
Alternative investment firm Private Advisors LLC closed its fifth secondary fund at $275 million. The fund is the fourth private equity fund that Private Advisors closed in the last 12 months, representing a total of about $1 billion. The firm, which is an affiliate of New York Life Investment Management Holdings LLC, focuses on transactions valued at less than $25 million.
Wipro Ltd. (NYSE: WIT) has agreed to sell its data center services business to IT services company Ensono for about $405 million. The deal is Ensono's third in about three years and will expand the company's global reach. Goodwin Procter LLP and Ropes & Gray LLP are advising Ensono. Hughes Hubbard and Reed LLP and DLA Piper are advising Wipro.
Chesapeake Eye Care Co., backed by Centre Partners, acquired ophthalmology services provider Maryland Vision Institute. Financial terms were not dislcosed. Maryland Vision Institute operates locations in Hagerstown, Frederick and Hancock, Maryland, and one location in Martinsburg, West Virginia.
TA Associates has acquired a majority stake in Confluence, provider of software for data management, investor communications and regulatory reporting for mutual funds and fund administrators. Read the full story here.
Software-as-as-Service providers are highly coveted acquisition targets, because they generate recurring revenue streams, says Plexus Capital’s Michael Becker in a video interview.
Purchase price may be a huge factor in getting deals completed, but sellers also care about the future of their company, says Goodwin Procter LLP partner Stephen Lee in a video interview.