M&A daily wrap: Sun Capital, Huntsman, Demilec, Whirlpool, Ardian, AEA, Trimble
Sun Capital Partners Inc. has completed the sale of Demilec, a manufacturer of spray polyurethane foam insulation systems, to Huntsman Corp. (NYSE: HUN) for $350 million. Under Sun Capital’s ownership, Demilec grew to become one of North America’s premier manufacturers and distributors of SPF insulation systems for residential and commercial applications. Demilec operates two manufacturing facilities, located in Arlington, Texas and Boisbriand, Quebec. When Sun Capital acquired Demilec back in 2013, the company operated as four separate business units. The Boca Raton, Florida-based private equity firm consolidated the business under a new management team, resulting in productivity improvements and overall cost reductions. “Together with the management team assembled, we assisted Demilec in its efforts to increase market share at a time when the SPF product category was beginning to grow in importance compared to other forms of insulation,” said Sun Capital co-CEO Marc Leder. The firm also invested in Demilec, allowing it to develop new products. “We saw demand for more environmentally-friendly solutions, and by investing in those we were able to increase Demilec’s market share and profitability despite rising material costs,” said Sun Capital managing director Jeremy Stone. Lazard and Piper Jaffray (NYSE: PJC) served as financial advisors to Demilec on the sale. With a strong track record in developing industrial businesses, Sun Capital is currently enjoying a streak of exits, including: the sale of Aclara, a provider of smart infrastructure solutions for utilities, to Hubbell Power Systems Inc., a subsidiary of Hubbell Inc.(NYSE: HUBB), for $1.1 billion in a deal that closed February; the sale of Robertshaw, a developer of thermal, flow, and control management products, to One Rock Capital Partners, for a reported $900 million in a transaction that was completed in March ; and the sale of the Americas packaging business of Coveris Holdings SA, to Transcontinental Inc. for $1.3 billion in cash, in a deal announced in April.
Whirlpool Corp. (NYSE: WHR) has agreed to sell its Embraco compressor business to Nidec Corp. for $1.08 billion. The target provides cooling services for residential and commercial facilities. Whirlpool CEO Marc Bitzer says the divestiture is part of the company's strategy to "focus on investing in and growing our consumer-facing business." Citigroup Global Markets Inc. (NYSE: C), Linklaters and Cleary, Gottlieb, Steen and Hamilton LLP are advising Whirlpool.
AEA Investors and British Columbia Investment Management have agreed to acquire Springs Window Fashions from Golden Gate Capital. The Middleton, Wisconsin-based target produces custom and stock window coverings and drapery hardware to retail and commercial customers. “Springs represents an exciting opportunity to invest in a highly attractive segment of the building products industry," says AEA president Brian Hoesterey. Fried, Frank, Harris, Shriver & Jacobson LLP is representing the buyers. Barclays and Nob Hill Law Group are advising the sellers. Barclays, Deutsche Bank and Nomura are providing financing.
Trimble (Nasdaq: TRMB) has agreed to buy construction software company Viewpoint from Bain Capital for $1.2 billion. Viewpoint's technology helps contractors with finances and project management. Trimble says the acquisition complements the company's e-builder business. Goldman Sachs (NYSE: GS), Baker McKenzie, Skadden Arps and Wilson Sonsini are advising Trimble. William Blair, Credit Suisse and Kirkland & Ellis are advising Viewpoint.
Lower middle-market private equity firm Gemspring Capital has acquired recruitment software provider TMP Worldwide from VSS. Financial terms were not disclosed. Raymond James (NYSE: RJF) and Proskauer Rose advised the sellers.
3i Group plc will invest in International Cruise & Excursions Inc. The target works with travel companies to offer their customers access to travel and leisure products at preferred rates. Kirkland & Ellis is representing 3i.
Ardian has agreed to sell its 49 percent stake in London Luton AIrport to AMP Capital. Adrian invested in London Luton in 2013 and since then, the airport's passenger traffic has increased from 9.7 million in 2013 to 15.8 in 2017.
Silver Airlines has bought Seaborne Airlines. The deal will expand each company's fleet, allowing them g to serve more customers primarily in the Caribbean, Bahamas and Florida.
Billtrust has acquired online credit reporting Credit2B. The deal will strengthen Billtrust’s financial service offerings in online credit applications and reports. Financial terms were not disclosed.
Bill Thompson has joined Evercore (NYSE: EVR) as a senior managing director and co-CEO of the firm's private capital advisory business. Based in San Francisco, Thompson will help expand Evercore’s existing real estate advisory services by establishing a global real estate capital raising platform. Thompson previously held roles with LaSalle Advisors, Donaldson, Lufkin & Jenrette/Credit Suisse and Greenhill & Co.
Abhik Das was hired by Munich, Germany-based alternative asset management firm Golding Capital Partners as head of private debt where he will be responsible for the firm's private debt investments. Das was most recently with BlueBay Asset Management.
For more new hires, promotions and other dealmaker career news, including Baird's hiring Brett Skolnik as healthcare managing director and Tony Armand's joining Norwest Equity Partners as an operating partner, read People Moves.
KKR, LLR Partners, the Riverside Co., Shore Capital Partners, TA Associates and other private equity firms and strategic buyers, including Cognizant (Nasdaq: CTSH), are investing in eye doctors, dentists and veterinarians, plus revenue cycle management providers and other areas of healthcare that are ripe for consolidation, as Mergers & Acquisitions explores in our in-depth feature, Why private equity firms like veterinarians, opthamologists and dentists, and slideshow, 6 healthcare specialties driving M&A deals.
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.