M&A daily wrap: Thompson Street, Greensill, General Atlantic, Allied Universal, U.S. Security Associates
Middle-market private equity firm Thompson Street Capital Partners has closed its fifth fund, Thompson Street Capital Partners V LP, at $1.15 billion. “We are very pleased and honored to have received such a strong level of support for TSCP V from our existing and new investors," says Thompson Street founder Jim Cooper. “The demand for this fund is a testament to the dedication of our team, our differentiated strategy and approach, and our investors’ confidence in our consistent performance of delivering attractive returns." St. Louis-based Thompson Street invests up to $150 million across the healthcare and life sciences, software and technology, business services and engineering sectors. Some of the firm's investments include: Alpaca Audiology, Bradley-Morris, Complus Data Innovations, Domaille Engineering, and Veterinary Technology Group. Kirkland & Ellis advised Thompson Street and Park Hill Group served as placement agent on the fundraise.
General Atlantic has invested $250 million in Greensill in a deal that values the lending startup at $1.64 billion. London-based Greensill was founded in 2011 by Lex Greensill, who previously developed the supply-chain finance businesses at Morgan Stanley and Citibank. Greensill provides supply-chain finance to customers across Europe, North America, Latin America, Africa and Asia and works with a host of banks and institutional investors "to provide solid funding streams to underpin the process" according to the company's website. "Many large companies pay suppliers 30, 60 or 90 days after purchase, which can create cash-flow problems for the suppliers," reports the Wall Street Journal. "Greensill’s financing allows those suppliers to get their money early in exchange for a small fee—usually lower than 1 percent. It later collects the full value of the invoice from the large company."
Security services provider Allied Universal, backed by Wendel and Warburg Pincus, is buying U.S. Security Associates for $1 billion. Allied Universal is funding the transaction with debt and up to $200 million of equity from existing shareholders, including up to $80 million from Wendel. Allied provides security systems, installation and repair services. U.S. Security offers physical security, remote surveillance, consulting and investigative services.
TA Associates is buying Eurazeo PME's stake in the Odealim Group, a French insurance brokerage firm for real state professionals. Under Eurazeo's ownership, Odealim has made five acquisitions including: InterAssurances, Jacques Boulard and Insor. "Our investment in Odealim is in line with our strategy of partnering with France’s best financial services firms," says TA Associates managing director Patrick Sader.
Stonepeak Partners has closed its third infrastructure fund, Stonepeak Infrastructure Fund III, at $7.2 billion. The fund received commitments from over 100 separate institutions. Simpson Thacher & Bartlett LLP and Campbell Lutyens acted as placement agents.
Arrowhead Engineered Products, backed by the Riverside Co. and Investcorp, has acquired Ratioparts. The target is a European distributor of aftermarket replacement parts for the outdoor power equipment and forestry sectors.
Aurora Capital Partners has bought Inhance Technologies, a provider of fluorine-based material technologies, from Arsenal Capital Partners. Baird and Kirkland & Ellis advised Arsenal and Inhance.
Industrial gas company Messer and CVC Capital Partners have bought the majority of Linde AG's gases business in North America and certain business activities in South America. The combined company is called MG Industries and will operate under the Messer brand.
Capital Constellation and Ara Partners Group have closed a $150 million partnership, in which Capital Constellation bought a minority stake in Ara. The latter is an alternative asset manager that invests in the energy and industrials sectors. Capital Constellation is a joint venture spanning Europe, North America, and the Middle East that seeks to catalyze the next-generation of promising private equity and alternatives managers. It combines the expertise and capital base of three of the world’s premier institutional investors— the Alaska Permanent Fund Corporation, RPMI Railpen and Wafra, on behalf of the Public Institution for Social Security of Kuwait.
MavenHill Capital has recapitalized Universal Screen Arts, an e-commerce and direct marketing company.
For more deal announcements, read The weekly wrap: Brynwood Partners, Goldman Sachs, Thoma Bravo.
For info on private equity firms raising funds, see the PE fundraising scorecard: Aretex Capital, GenNx360, G Squared, Providence Equity.
David Horner has been named CEO at AE Industrial Partners-backed Applied Composites Holdings, a parts maker for the aerospace and defense and automobile sectors. Horner was most recently the president of Meggitt’s polymers & composites division.
Joseph Morales was promoted from associate to partner at law firm Withers. Based in Greenwich, Connecticut, Morales advises on M&A, commercial real estate and corporate finance transactions. His clients include private clients, family offices, privately held companies, emerging companies and entrepreneurs.
Rajib Sarkar was hired by Keefe, Bruyette & Woods as a managing director in the investment bank's insurance group. Based in New York, Sarkar was previously with Evercore Inc. (NYSE: EVR).
Serena Williams enjoyed a dazzling week at Wimbledon. Out of the grand slam game for 16 months as she started a family and suffered post-delivery complications, Williams, seeded 25th, fought her way into the finals. Meghan, Duchess of Sussex and Catherine, Duchess of Cambridge watched from the All England Club's Royal Box, as Williams finished second to Angelique Kerber on July 14. Williams is among many star athletes who have excelled in business as well as in sports. If you’ve had a beer and chicken wings while waiting for a flight at the Raleigh-Durham International Airport, or grabbed a smoothie while shopping at the Federal Plaza in Rockville, Maryland, or enjoyed a steak dinner at New York’s Grand Central terminal, you’ve got a sports celebrity athlete to thank. Among the athletes investing are Dale Earnhardt Jr., LeBron James, Michael Jordan and Greg Norman. View our slideshow: Serena Williams, heading to Wimbledon finals, and other athletes bet on restaurants, wineries, juice bars.
Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here's a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion's Rishi Jain and Anthony Horvat: 6 strategies to turn an underperformer into a "mudder."
Summer reading list: 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’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.