M&A daily wrap: Stellex, Arsenal, Shorehill Capital, EY M&A survey
Stellex Capital Management has acquired auto parts distributor Fenix Parts. The PE firm partnered with industry veterans Bill Stevens and Paul Delaney on the deal. Fenix is a recycler and reseller of orginal equipment manufacturer (OEM) parts that were recovered from damaged or low-valued cars. "This is a great fit for us given our extensive experience investing across the automotive supply chain," says Stellex managing partner Michael Stewart. Stellex is a New York-based middle-market private equity firm that invests between $25 million to $100 million in deals valued up to $500 million. In 2017, Stellex formed a partnership with auto industry veteran Bruce Swift to seek acquisitions in the sector.
As Americans begin to plan road trips and other summer vacations, car deals are thriving, especially in the nascent self-driving tech sector. Intel bought Israel's Mobileye for about $15 billion. Meanwhile, in a much smaller deal, Delphi bought NuTonomy. As the industry readies for autonomous driving, there's a big wave of consolidation going on among makers of traditional car parts, with several new deals announced this week. Investcorp acquired KSI Trading Corp., a supplier of aftermarket auto body parts that services 10,000 collision repair shop customers across 25 locations in 14 states. Woodward Inc. bought diesel parts maker L'Orange from Rolls-Royce. And Canadian automotive retailer AutoCanada has acquired 15 stores from the Grossinger Auto Group. Akerman represented the seller. Other car part buyers include CenterOakPartners, Clearlake Capital Group and Wabash National. Meanwhile, Carl Icahn is among the sellers. Check out our slideshow on the rush of activity.
Chicago healthcare-focused private equity firm Shore Capital Partners has made an investment in Hulin Health, an operator of urgent care centers in Louisiana and the Gulf coast. The PE firm partnered with the target's founder Clayt Hulin on the deal. Many of the companies that are garnering attention from private equity frims in the healthcare sector have a few things in common: such as they are in subsectors where there is room for consolidation. The traditional models are no longer working, and there is room to deliver high-quality care at a lower cost and build better retail-like models that treat patients like valued customers, while also reducing costs by taking advantage of economies of scale. Check back tomorrow, when we’re publishing an in-depth feature on 6 healthcare sub-sectors that are consolidating.
Water Street Healthcare Partners and JLL Partners have agreed to buy Triplefin. The Cincinnati-based target provides reimbursement services, medication delivery and other patient assistance services for pharmaceutical and healthcare companies. The two PE firms recently bought Dohmen Life Science Services from the Dohmen Co.
Aresnal Capital Partners has acquired a majority stake in Fralock, a materials company that designs, engineers, and manufactures high-performance components and subassemblies for companies in the semiconductor equipment, life science, aerospace, and satellite sectors. FocalPoint Partners and Sheppard Mullin Richter & Hampton advised Fralock. Houlihan Lokey (NYSE: HLI) and Kirkland & Ellis advised Arsenal, which received financing from Twin Brook.
Kohlberg & Co. has agreed to acquire Cadence Inc., a maker of metal and plastic parts for the medical device and industrial sectors. Piper Jaffray (NYSE: PJC) and DLA Piper are advising Cadence. Baird and Ropes & Gray are advising Kohlberg.
Tyler Technologies Inc. (NYSE: TYL) has agreed to buy data services company Socrata Inc. The target provides cloud-based data integration, visualization, analysis, and reporting services to state, local and federal government agencies to help them improve performance, increase accountability, gain better financial insights, and extend citizen engagement. Spurrier Capital Partners is advising Socrata.
Emerson Electric Co. (NYSE: EMR) has agreed to buy Textron Inc.'s (NYSE: TXT) tools and test equipment business for $810 million. The division manufactures electrical and utility tools, diagnostics, and test and measurement instruments under the Greenlee and Klauke brands.
Shorehill Capital-backed Power Grid Components has bought Instrument Transformer Equipment Corp. The target is a manufacturer of dry molded and oil-filled instrument transformers.
Cloud services provider Evolve IP acquired UK-based cloud communications company Thevoicefactory. Financial terms were not disclosed.
Encouraged by recent policy changes and positive economic growth, 86 percent of executives surveyed expect the global M&A market to improve over the next 12 months, according to Ernst & Young LLP’s twice-annual Global Capital Confidence Barometer. In the U.S., 72 percent expect the domestic M&A market to improve, a considerable uptick from 25 percent of respondents six months ago. Read the full story here.
Alvarez & Marsal named managing director Marc Liebman the co-head of the western region in the firm's North American restructuring group. Liebman focuses on the development and implementation of strategic, financial and operating plans for over-leveraged and undercapitalized companies in both out-of-court and in chapter 11 cases.
Martin Mumford has joined Angeles Equity Partners as an operating partner, focusing on industrial services. He was most recently a principal in the consumer, industrials and services group at Oliver Wyman.
Jeremy Kogler was promoted from principal to partner at New York-based Blue Wolf Capital Partners. Kogler joined Blue Wolf in 2010 and focuses on healthcare investments.
Michael Haas has joined Latham & Watkins as a partner in New York. Most recently with Jones Day, Haas concentrates on M&A, private equity and financing in the real estate sector.
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.
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.