M&A daily wrap: Cressey, Perry Ellis, George Feldenkreis, Rent-A-Center
Healthcare-focused private equity firm Cressey & Co. has raised two funds at a combined total of $1.1 billion. In addition to its sixth fund at $995 million, the PE firm closed a $105 million co-investment fund. The new funds will focus on healthcare services and information technology investments in the same sector. “We thank our investors for the trust they have placed in us and we are excited to capitalize on the attractive investment and value-creation opportunities we see in the services and information technology sectors of the healthcare market,” says Cressey partner Peter Ehrich. Cressey, which manages $2 billion in capital, typically invests in businesses that have up to $500 million in enterprise value. The firm recently co-invested in veterinary hospital chain VetCor Group Holdings Corp. Some of Cressey's other portfolio companies include Dental Services Group and US Renal Care. For more on PE firms in the healthcare sector, read our in-depth feature: Why private equity firms like veterinarians, opthamologists and dentists. Kirkland & Ellis advised Cressey on the fundraise.
Perry Ellis International Inc. (Nasdaq: PERY) founder George Feldenkreis has agreed to take the apparel company he founded in 1967 private for $437 million. The deal comes four months after Feldenkreis made a bid to acquire the company. Feldenkreis and his son Oscar, who is the company's CEO, own a combined 18 percent stake in Perry Ellis before the deal was announced. "Our partners should benefit from our enhanced ability to make long term investments in brands, technology and innovation while continuing to remain focused on executing on our long term growth strategy," Oscar Feldenkreis said in a statement. Scope Advisors LLC, Proskauer Rose and Olshan Frome Wolosky LLP are advising George Feldenkreis. Stearns Weaver Miller Weissler Alhadeff & Sitterson is representing Oscar Feldenkreis. PJ Solomon, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Akerman LLP are advising the board's special committee. Wells Fargo Bank and Fortress Credit Advisors LLC are providing financing.
Vintage Capital Management LLC is taking Rent-A-Center Inc. (Nasdaq: RCII) private for about $1.37 billion. The target operates around 2,400 stores under Rent-A-Center, ColorTyme and RimTyme brands, where consumers can rent furniture, electronics and appliances. J.P. Morgan Securities LLC (NYSE: JPM) and Winston & Strawn are advising Rent-A-Center, while Sullivan & Cromwell is advising the company's board. Wilson Sonsini Goodrich & Rosati is representing Vintage. B. Riley FBR Inc. and Guggenheim Corporate Funding are providing financing.
U. S. Tsubaki Holdings Inc., a subsidiary of transmission parts maker Tsubakimoto Chain Co., has acquired conveyor systems maker Central Conveyor Co.
from New State Capital Partners for $140 million. Lincoln International, Duff & Phelps, and Morgan Lewis & Bockius LLP advised New State and Central Conveyor.
Vestar Capital-backed Quest Analytics has bought healthcare data provider BetterDoctor from Health Catalyst Capital. Vestar invested in Quest in 2017.
Wicks Capital Partners-backed Gladson has purchased Nutritionix, a database that allows people to upload, organize and track nutrition data. Winston & Strawn represented Wicks and Gladson.
F-Secure has proposed to buy cybersecurity company MWR InfoSecurity for $139 million. Arma Partners is advising F-Secure.
Google is investing $550 million in cash in China’s JD.com Inc. as the U.S. search giant pushes deeper into online commerce. Read the full story: Google invests in JD to push deeper into e-commerce.
Former Summit Partners managing partners Thomas Roberts has launched Equality Asset Management, a long-term investment firm that will focus on durable technology, healthcare, and tech-enabled growth companies. Equality plans to implement a fee structure that reflects the current return environment and more closely aligns general partner and limited partner interests. “Private equity has enjoyed incredible returns over time, but we believe the industry has reached an inflection point. Going forward, long-term outperformance will be driven by an investment strategy comprised of higher concentration, longer holds, and lower fees. We are establishing Equality as a next-generation firm specifically structured to address these fundamental industry shifts," Roberts said in a statement.
Scott Stanton has joined Mintz Levin's San Diego office as a partner. Most recently with Morrison & Foerster, Stanton focuses on M&A across the software, financial services, healthcare and consumer sectors.
More than 2,000 dealmakers from 1,100 companies, representing 16 countries, headed to sunny San Diego for three days of networking at ACG InterGrowth 2018. Jeff Immelt, who served as CEO and chairman of General Electric Co. (NYSE: GE) from 2001 to 2017, was the keynote speaker. Check out our slideshow: InterGrowth 2018 in pictures.
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.
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.
“If there's one theme we're seeing across all of our deals, it is the digital transformation of all companies,” says Matt Conaty, director, financial sponsors, William Blair, in this video interview, shot at ACG InterGrowth 2018. William Blair won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Investment Bank of the Year. Watch the video: Digital transformation is the name of the game, says William Blair’s Matt Conaty.
With summer road trips in mind, check out our slideshow on auto deals: Car parts makers fuel M&A, as industry readies for self-driving vehicles. Highlights include: Intel bought Mobileye, and Delphi bought nuTonomy. Meanwhile, private equity firms, including Clearlake, CenterOak Partners and Wabash National, are scooping up all sorts of car-related companies from parts makers to service providers.
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.