M&A wrap: Luminate, Hollie Moore Haynes, ParkerGale, Pizza Hut, Yum!, KFC
Luminate Capital Partners has raised its second fund at $425 million. The PE firm, founded by Hollie Moore Haynes, focuses on the software sector. In 2018, Luminate invested in AutoQuotes, a technology provider for the foodservice equipment industry. “We are very pleased with the investor response to Fund II which exceeded our expectations," says Haynes, who is a former managing director at Silver Lake Partners. "As we have demonstrated our ability to generate attractive returns, we have continued to build additional institutional support from investors who understand our emphasis on the software sector." PE fundraising is benefiting from a boost in M&A in the tech sector, and young PE firms, including those that focus on tech and software, are raising second funds. ParkerGale, co-founded by Kristina Heinze, Devin Mathews, Jim Milbery and Ryan Milligan, has recently raised its second fund at $375 million. Moelis & Co. (NYSE: MC) served as Luminate's placement agent and Kirkland & Ellis provided legal advice.
Pizza Hut, a subsidiary of Yum! Brands Inc. (NYSE: YUM), is buying online restaurant ordering and delivery company QuikOrder. Pizza Hut says with QuikOrder, the company "will improve its ability to deliver an easy and personalized online ordering experience." "We're doubling down on our commitment to digital and this deal positions Pizza Hut perfectly for the future," says Pizza Hut U.S. president Artie Starrs. In Addition to Pizza Hut, Yum! owns the KFC and Taco Bell restaurant chains.
Omers and Leonard Green & Partners-backed Caliber Collison is merging with Abra Auto Repair of America. The combined company will become one of the largest collision services providers in the U.S. Abra is backed by Hellman & Friedman, which will be a majority shareholder in the combined company. Omers and Leonard Green are keeping stakes as well. Jefferies is advising Omers and Leonard Green. Fried, Frank, Harris, Shriver & Jacobson LLP is representing Omers. Latham & Watkins is representing Leonard & Green. BofA Merrill Lynch, Deutsche Bank Securities, and Simpson Thacher & Bartlett are advising Hellman & Friedman.
MJ Hudson has acquired data and analytics firm Amaces. The target offers tools and consulting services to help institutional investors monitor the cost and quality of the investor services they receive from their custodian banks.
Curavi Health Inc. has bought TripleCare, a provider of telemedicine services to healthcare facilities. Ziegler advised TripleCare.
Wynnchurch Capital has purchased Buchanan Rubber Ltd., a distributor of valves, fittings, and hoses.
Derrick Lott, Roger Morscheiser and Cody Wright were promoted from associate to partner to Shearman & Sterling. All three focus on M&A.
Robert Lin and Marissa Short have joined Churchill Asset Management as members of the firm's finance and operations team. Lin was previously with Ivy Hill Asset Management and Short was most recently with Ernst and Young.
Private equity firms are giving back - organizing groceries at food pantries, mentoring students in schools, running races for cancer cures and pitching in at animal shelters. In time for the holidays, Mergers & Acquisitions highlights the philanthropic and volunteering initiatives of 5 PE firms: the Carlyle Group LP (Nasdaq: CG), Frontier Capital, Huron Capital, the Riverside Co. and Star Mountain Capital. At Carlyle, charity starts at the top, with CEO David Rubenstein's signing of The Giving Pledge, a commitment by the world’s wealthiest individuals and families to dedicate the majority of their wealth to philanthropy. Community involvement is more important than ever to today’s work force. Millennials, defined as people born between 1981 and 1996 by the Pew Research Center, are “for sustainability, diversity, inclusion and giving back to the community,” says Carlyle managing director Christopher Ullman. “We are finding this more and more. Yes, we are here to make money, secure retirement for pensioners, but the firm wants to support people’s efforts to make the world a better place.” Frontier Capital supports several causes, including The Miracle League, a baseball organization for people who are mentally and physically challenged. “There’s more to life than work and material things, and our people understand that,” says Frontier managing partner Andrew Lindner. At Detroit-based Huron Capital, the firm’s philanthropic efforts are focused on local groups. “We want to leave our footprint in this community where we live and work while being as helpful as possible,” says partner Gretchen Perkins. “The charitable activities we do as a group, the ability for each employee to influence where Huron’s donations go, and the ability to perform community service during work hours, or receive matching funds for an employee’s personal non-profit passion, all contribute to a portion of an employee’s sense of purpose and contributing to the greater good.” Read the full story, The Big Give.
We asked dealmakers at ACG Philadelphia's M&A East to share their thoughts on Giving Back. Check out our video interview with Baker Tilly Capital's Judit Nagy-Eichelber: Volunteer work brings teams together. Also watch our conversation with Reed Smith's Jonathan Moyer: For millennial dealmakers, giving back is part of who they are.
Holiday shopping is in full swing, and the the pressure on retailers is more intense than ever. Consumers are choosing retailers that match their values. For example, Canadian retail giant Empire Company Ltd. (TSE: EMP.A) has agreed to buy fast-growing farm-to-table grocer Farm Boy for $800 million from Boston private equity firm Berkshire Partners LLC. Farm Boy offers fresh, ready-to-eat and private label offerings are particularly appealing to urban and suburban consumers. Technology is driving many of the transactions. Best Buy Co. (NYSE: BBY) recently agreed to spend $800 million to buy GreatCall, a provider of emergency response services for seniors, from Chicago private equity firm GTCR. Meanwhile, GreatCall announced a partnership with on-demand transportation provider Lyft to make it easier for seniors to get car service. “Many of the challenges that retailers are currently facing are due more to a lack of innovation and investment in technology, and that they are not able to compete with Amazon,” said Alex Monahan, a consumer products senior analyst at tax and consulting firm RSM US LLP. “Investors want to see that retailers are adjusting to consumer’s changing preferences and striving to provide seamless multi-channel experiences, while also investing in technology to address the tight labor markets.” Amazon, Walmart, Ikea, Bed, Bath & Beyond and Farm Boy are among the retailers turning to M&A. For more, see 5 trends driving retail M&A.
The Jacksonville Jaguars take on the Tennessee Titans Thursday night. Off the field, many players build companies. Off the field, many football players invest in companies. New England Patriots quarterback Tom Brady recently teamed with former Giants defensive end Michael Strahan, who is the co-host of ABC’s Good Morning America, to launch a sports media startup called Religion of Sports Media, which has raised $3 million in venture capital funding from CourtsideVC and Advancit Capital. Muhsin Muhammad, who played wide receiver for the Carolina Panthersand the Chicago Bears, is a managing director of private equity firm Axum Capital Partners. Steve Young, former San Francisco 49ers quarterback, is a co-founder of private equity firm HGGC. View our slideshow, NFL stars Tom Brady, Michael Strahan, Steve Young go PE.
ACG New York Women of Leadership Summit brings together women in the middle-market dealmaking community for a day focused on networking and knowledge sharing on Jan. 17 at the Intercontinental Barclay Hotel. Alexa Von Tobel, chief innovation officer of Northwestern Mutual, keynotes.
Exponent Women kicks off the new year with an evening of networking on Jan. 24 at The Campbell, at New York's Grand Central Terminal. Jazz Age financier John W. Campbellconverted the space to his private office and reception hall in 1923, and it has recently been restored by design firm Ingrao Inc.
ACG Boston, ACG Connecticut, ACG New Jersey, ACG New York & ACG Philadelphia host ACG Northeast Dealmaking at the Mountain at Stowe Mountain Resort in Stowe, Vermont Jan. 27-29. The event provides a chance for middle-market M&A professionals from across the northeast to come together for two days of close knit networking, shared conversations and valuable time spent to deepen your relationships within the deal community.