M&A daily wrap: Brunswick, Genstar, Aretex Capital, Alerian, Wellfleet, summer reading
Boat engine maker Brunswick Corp. (NYSE: BC) is buying the global marine and mobile business of Genstar Capital-backed Power Products for $910 million. The deal includes the global marine specialty vehicle, mobile, industrial power, and transportation aftermarket products businesses of Power Products. The target makes electrical and power management systems, such as batteries and digital switches, for marine and recreational vehicles. Brunswick is adding the Ancor, BEP, Blue Sea Systems, Czone, Del City, Lenco Marine, Marinco, Mastervolt, Park Power, Progressive Industries, and ProMariner brands. The assets will join Brunswick's mercury marine division, which makes boat engines and other parts. "Power Products has an extensive aftermarket presence which provides a more consistent revenue stream, with attractive margins, that helps to strengthen Brunswick's overall business profile," says Brunswick CEO Mark Schwabero. Baird and Weil Gotshal & Manges are advising Genstar. Morgan Stanley Senior Funding is providing financing.
Aretex Capital Partners has launched and closed its first deal. The PE firm, led by founders Sergio D’Angelo and Andrew Feller, has raised $325 million from a consortium led by Intermediate Capital Group Strategic Equity and funds managed by Goldman Sachs Asset Management. D'Angelo was previously a senior member with KKR's (NYSE: KKR) European PE team and Feller is a former Metalmark Capital partner. Aretex bought Alerian, a provider of energy infrastructure indices and market intelligence.
Wellfleet Credit Partners, the credit advisory division of Littlejohn & Co., has raised its first collateralized loan obligation (CLO) fund of the year, Wellfleet CLO 2018-1, at $409 million. The fund is Wellfleet's seventh since 2015. Morgan Stanley served as Wellfleet's arranger. Milbank, Tweed, Hadley & McCloy provided legal advice.
Windjammer Capital Investors has acquired Rowmark LLC, a manufacturer of engineered plastic sheet and accessories to the engraving, signage and awards markets, from Bertram Capital. Kirkland & Ellis represented Windjammer, while Alvarez & Marsal provided due diligence.
Orix Capital Partners has bought Peak Utility Services Group, a provider of maintenance, repair, upgrade and installation services for the telecom, electric and natural gas infrastructure markets in the Pacific Northwest. Harris Williams & Co. and Kirkland & Ellis advised Peak. Weil Gotshal & Manges represented Orix.
For deal more deal announcements, including acquisitions made by AT&T Inc. (NYSE: T) and Conagra Brands Inc. (NYSE: CAG), read The weekly wrap: AT&T, Conagra, Twitter.
To see which private equity firms are raising funds, including Thoma Bravo, see PE fundraising scorecard: Clearview Capital and Thoma Bravo.
Consolidation has become a driving force for M&A in the U.S. car dealership space, with autonomous vehicles, ride-sharing and other influences contributing as well. An estimated 1,080 car dealerships were sold to 612 buyers between 2014 and 2017, reports Kerrigan Advisors, an Irvine, California, sell-side advisor to auto dealers. We asked Stephen Dietrich, a Denver-based Holland & Knight attorney with an auto dealer M&A practice, for his thoughts on trends in the space and what middle-market private equity firms should consider when looking at potential deals for car dealerships. Read the full story: Car dealerships sell, as self-driving vehicles shake up auto industry.
Check out our slideshow on auto-related deals: Car parts makers fuel M&A, as industry readies for self-driving vehicles. Morgan Stanley (NYSE: MS) and Cravath, Swaine & Moore LLP are advising Brunswick.
Today’s portfolio companies choose private equity funds “based on not just who's going to pay them the most money, but who's going to be more involved in helping them get to that next step, helping them to execute the strategy,” says BDO USA’s Bob Pearlman in this video interview shot at ACG InterGrowth 2018. Watch the full video: PE firms take a more strategic approach to portfolio companies than in the past.
"Clamoring to be the loudest person in the room” is not the way to bring more women into the middle market, says Suzie Doran of SingerLewak, in this video interview shot at ACG InterGrowth 2018. Doran serves as president of ACG Los Angeles, which recently took the Women of ACG Los Angeles on a private viewing of the 100th Anniversary Exhibition of King Tut at the California Science Center. “We're about making connections and being able to take those connections to the next level.” Watch the full video: No “clamoring to be the loudest person in the room” at women dealmaker events.
Peter Van Raalte, co-founder of Corinthian Capital, and Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions, were featured speakers at the ACG NY Industrial Conference at the New York Athletic Club. The conference is part of the ACG Northeast Industry Tour, sponsored by ACG New York, ACG Boston and ACG Philadelphia. View our slideshow: Manufacturing M&A: high prices but plenty of opportunities.
From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater Associates’ Ray Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ summer reading list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.
Read full coverage of Mergers & Acquisitions' 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.