M&A daily wrap: Energizer, Nu Finish, Stryker, BDO USA, Bob Pearlman, auto industry disruptions
Battery maker Energizer Holdings Inc. (NYSE: ENR) has agreed to buy the Nu Finish Car Polish and Nu Finish Scratch Doctor auto care brands from consumer products company Reed-Union. "Adding the strength of the Nu Finish and Scratch Doctor brands to our existing Lexol and Eagle One products expands our auto appearance portfolio and continues our strategy of building our auto care business, both organically and through acquisitions," says Energizer CEO Alan Hoskins. In addition to its Energizer battery brand, Energizer has an auto care division that consists of car fresheners and polishes that includes the brands: Refresh Your Car!, California Scents, Driven, Bahama & Co., Lexol and Eagle One. Today's auto industry is rife with change, including the advent of self-driving cars and the popularity of ride-sharing. The disruption is fueling consolidation from all angles. M&A involving traditional services, repair, maintenance and third-party parts is booming. View our slideshow: Car parts makers fuel M&A, as industry readies for self-driving vehicles. The changes are also prompting many car dealerships to sell. Read our Q&A with Holland & Knight's Stephen Dietrich: Car dealerships sell, as self-driving vehicles shake up auto industry. Sawaya Partners LLC is advising Energizer.
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.
Stryker Corp. (NYSE: SYK) is buying Swiss medical device company SafeAir AG. The target makes a disposable pencil that has a smoke evacuation function that connects with a smoke evacuator to help pull smoke out. "The acquisition of SafeAir AG is highly complementary to the Surgical business of Stryker's Instruments division, and strengthens our smoke evacuation portfolio in both the U.S. and Europe," says Stryker group president Timothy Scannell. Stryker earned Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Strategic Buyer of the Year for its $700 million purchase of surgical imaging technology provider Novadaq.
EQT has acquired Zemax Software Holdings from Arlington Capital Partners. Zemax is a provider of optical and illumination design software. Spurrier Capital Partners and Sheppard Mullin advised Zemax. Shea & Co. and Kirkland & Ellis advised EQT. Ares Capital and Caryle Global Credit provided financing.
AE Industrial-backed BHI Energy has bought D&D Power, an electrical contractor that offers distribution, transmission and storm restoration services.
Cresset Capital Management has launched Cresset Family Office. Ascent Private Capital Management founder Michael Cole will lead the family office as CEO. Cresset Capital was formed by Sterling Capital co-founder Eric Becker and former Willis Stein & Partners CEO Avy Stein.
TowerBrook Capital Partners has raised two funds, TowerBrook V and TowerBrook Structured Opportunities, at a combined $5.3 billion. "The success of the fundraise is a direct reflection of our investors’ confidence in TowerBrook’s distinctive investment strategy and its disciplined deployment over the past 18 years," says TowerBrook Co-CEO Ramez Sousou.
There has been a bit of a push and pull to bank M&A this year. Recently passed legislation that raised the threshold for becoming a systemically important financial institution has also raised expectations for bigger deals, such as Fifth Third Bancorp. buying MB Financial. Still, a closer look reveals that bank M&A at midyear has yet to fully take off. Read the full story: Think bank M&A has heated up? Think again.
A year after being named chief executive officer, John Flannery took the boldest steps yet to revamp the sinking corporate titan, unveiling plans to pull GE out of the healthcare and oil markets. By slimming GE down and reorienting it around power, renewable energy and aviation, Flannery hopes to breathe new life into the 126-year-old company. Read the full story from Bloomberg News: GE exiting health, oil, as CEO shrinks a one time titan to save it.
Chune Loong Lum was hired by law firm Ropes & Gray as a counsel in Hong King. Most recently with Skadden, Arps, Slate, Meagher & Flom, Lum represents Asia and China-focused fund sponsors in the formation, structuring and operation of private equity funds.
Anthony Carbone has joined law firm Morrison & Foerster as a a partner. Previously with Willkie Farr & Gallagher, Carbone focuses on tax matters related to M&A.
Tech-enabled service businesses, including those that use the Software-as-a-Service, approach provide “a very sticky customer base,” says Crutchfield Capital’s J.B. Dollison, who serves as chair of the ACG Global board, in this video shot at ACG InterGrowth 2018. “Those fundamentals are very attractive in the market, and some of those businesses are selling for Titanic multiples.” Watch the full video: SaaS businesses are selling for “Titanic multiples,” says Crutchfield’s J.B. Dollison.
"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.
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.
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.