M&A daily wrap: Jessica Alba, the Honest Co., L Catterton, ACG NY, Corinthian Capital, Rising Stars of PE
L Catterton has acquired a minority stake in actress Jessica Alba's beauty and personal care company the Honest Co. for $200 million. "Our mission from day one has been to empower people to live happy and healthy lives, and we are always in search of new ways to bring that to life," Alba said in a statement. "This partnership will enable us to empower more people in more places by delighting them with products that meet their desire for safety, design and performance." Alba is best known for playing the lead in TV's Dark Angel and the Sue Storm/Invisible Woman character in the Marvel Comics' Fantastic Four film series. She was recently tapped to star with Gabrielle Union in an upcoming Bad Boys TV spinoff called L.A.’s Finest. She founded the company, which produces a wide range of self-care items from diapers to body lotions, in 2012. Honest recently announced a distribution agreement with European beauty retailer Douglas, which has more than 2,500 stores. The target also faced some challenges lately. For example, in 2017, it recalled baby powder over concerns about skin and eye infections. Honest previously raised funding from Lightspeed Venture Partners and General Catalyst Partners. Goldman Sachs & Co. (NYSE: GS) advised Honest.
Are you one of the Rising Stars of Private Equity? Send nominations now. The deadline is Fri. June 8. We’re looking for individuals who are full-time private equity investors and whose best days will be in the future. These are the folks you predict will one day play a key leadership role at your PE firm – or heading up their own. The nomination process is informal, and all decisions will be made by our editorial team, which is headed by Editor-in-Chief Mary Kathleen Flynn. Please email suggestions, questions and comments to firstname.lastname@example.org. In the email subject line, please include: “Rising Stars of Private Equity Candidate" and the PE professional's name and firm. For more details, read the full story: Who are the Rising Stars of Private Equity? Nominate candidates by June 8. And for related content, see the Most Influential Women in Mid-Market M&A, including our slideshow.
Peter Van Raalte, co-founder of Corinthian Capital, and Mary Kathleen Flynn, Editor-in-Chief of Mergers & Acquisitions, are featured speakers at the ACG NY Industrial Conference at the New York Athletic Club on June 7. Van Raalte oversees and directs the investment activities of the New York private equity firm, including transaction sourcing, structuring, operational strategy, and managing relationships with limited partners. Corinthian recently closed the sale of Friedrich Air Conditioning Co. to Monomoy Capital Partners; bought Eastern Wholesale Fence LLC; and invested in home healthcare platform Excelin Holdings. The conference is part of the ACG Northeast Industry Tour, sponsored by ACG New York, ACG Boston and ACG Philadelphia.
Abry Partners has agreed to buy a majority stake in cinema onscreen advertiser Screenvision Media. Shamrock Capital and AMC Entertainment Holdings Inc. (NYSE: AMC) will keep minority stakes. Moelis & Co. (NYSE: MC) and Latham & Watkins are advising Shamrock. LionTree Advisors and Kirkland & Ellis are advising Abry. Deutsche Bank is providing financing.
Homebuilder Taylor Morrison Home Corp. (NYSE: TMHC) has agreed to acquire AV Homes Inc. (Nasdaq: AVHI), a developer of residential communities in the Carolinas, Florida, Arizona and Texas, for $963 million. Citigroup Global Markets Inc. (NYSE: C) and Paul Weiss Rifkind Wharton & Garrison LLP are advising Taylor. J.P. Morgan Securities LLC (NYSE: JPM), Moelis & Co. (NYSE: MC), and Wachtell Lipton Rosen & Katz are advising AV Homes.
Main Post Partners has invested in pet food company Nulo Pet Food. The target bills its products as "high in meat protein, grain-free, have low glycemic carbohydrates and contain a patented probiotic for immune and digestive health."
Genstar Capital-backed Apex Fund Services has purchased Ipes, a private equity fund administrator, from Silverfleet Capital. The acquisition expands Apex's PE services across Europe. Macquarie Capital and Willkie Farr & Gallagher advised the buyers. N M Rothschild & Sons and Travers Smith advised Ipes.
Fortive Corp. (NYSE: FTV) has made a offer to acquire Johnson & Johnson's (NYSE: JNJ) advanced sterilization products business for $2.8 billion. Cravath Swaine & Moore LLP is representing Johnson & Johnson.
Brand Group Holdings in Atlanta likely would have pursued an initial public offering had it not negotiated a sale to Renasant in Tupelo, Miss. Read the full story: What made a Georgia bank pivot from IPO to sale?
Gregg Parise was hired by PE firm Sweetwater Capital Partners as a managing partner. Parise served as a senior advisor to the firm since 2016 and he focuses on sourcing and underwriting secondary and direct opportunities in private, high-growth companies.
Kristin Mendoza has joined Kirkland & Ellis' New York office as a partner. Previously with Latham & Watkins, Mendoza concentrates on private equity and M&A in the power and energy sectors.
Olga Bogush was hired by Schiff Hardin LLP's New York office as a partner. Most recently with Herrick Feinstein LLP, Bogush represents clients in tax issues related to M&A and private equity.
Matthew Rizzo and Jessica Sheridan have joined Willkie Farr & Gallagher LLP's private equity practice as partners. They were both most recently with Sidley Austin.
Covenant-lite loans are “bleeding down” to the middle market, says Twin Brook Capital Partners co-founder Trevor Clark in this video interview shot at ACG InterGrowth 2018. Watch the video interview: With rise of cov-lite loans, experience matters, says Twin Brook’s Trevor Clark. Twin Brook won Mergers & Acquisitions' M&A Mid-Market Award for 2017 Lender of the Year.
“The rise in private debt has been tremendous over the last three or four years,” says Sunil Mehta, managing director, Madison Capital Funding LLC, in this video interview shot at ACG InterGrowth 2018. Madison, a subsidiary of New York Life Insurance Co., has long been a stellar source of capital in the middle market. Watch the video: Investors from all over the globe are attracted to private debt, says Madison's Sunil Mehta. Also, see our Q&A with Jennifer Cotton: Abundance of capital drives highly competitive loan process, says Madison Capital's chief underwriter.
“At the end of the day, it really matters how you behave if there’s a problem,” says Karin Kovacic, managing director, East Coast region, of middle-market lender Monroe Capital. Watch our video interview, shot at ACG InterGrowth 2018:Trust counts in lending to the middle market, says Monroe Capital’s Karin Kovacic.
“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: Intelbought 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.
In our updated Buyer’s Guide, we profile nine categories of product and services designed to help M&A professionals perform in today’s highly competitive dealmaking arena. Read the full story: From fund administrators to VDRs, dozens of firms help M&A pros compete.
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.