M&A wrap: Altas Partners, Marty Lipton, Stryker, Harvest, ICV, AEI
Altas Partners, a long-term oriented PE firm, has raised its second fund at $3 billion. "Altas differentiates itself through a distinctive approach to investing, building its portfolio slowly and carefully over time and enjoying a flexible time horizon as an owner," the firm says in a release. "With the fund, Altas will continue to execute the firm’s strategy of investing in one or two high-quality, market-leading businesses each year." Altas was founded in 2012 and manages about $7 billion in capital. Some of the firm's past and present portfolio companies include: DuBois Chemicals, University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Medforth Global Healthcare Education, Capital Vision Services (MyEyeDr.) and NSC Minerals.
Esteemed M&A attorney Martin (“Marty”) Lipton was honored at a black-tie event hosted by the Institute of International Education at The Pierre in New York on Oct. 30. Called the “the king of M&A,” the co-founder of New York law firm Wachtell, Lipton, Rosen & Katz, is well known to dealmakers as the architect of the anti-takeover defense strategy known as the “poison pill.” Lipton was awarded the IIE Stephen P. Duggan Award for Mutual Understanding “in recognition of his lifetime of extraordinary achievement and his lasting contribution to international higher education. Read the full story: Martin Lipton, inventor of the “poison pill” anti-takeover defense honored by IIE.
Stryker (NYSE: SYK) is buying Wright Medical Group NV (Nasdaq: WMGI), a maker of shoulder and ankle joint implants, for $5.4 billion. “This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” says Stryker CEO Kevin Lobo.
Harvest Partners has acquired commercial landscaping company Yellowstone Landscape from CIVC Partners. Harris Williams and Kirkland & Ellis advised CIVC and Yellowstone. Piper Jaffray (NYSE: PJC), William Blair, Ropes & Gray advised Harvest Partners. Moore & Van Allen PLLC advised Yellowstone's management.
AE Industrial Partners-backed Resolute Holdings has acquired American Equipment Group, a provider of temporary cooling, heating and power services. Kirkland & Ellis and PwC advised the buyers.
ICV Partners has invested in Buffalo Wild Wings fracnhisee JK&T Wings. The target owns 42 BWW restaurants that are located mostly in Michigan.
For more deal news, see Weekly wrap: Carlyle, CD&R, LVMH.
Jeffery Norton was hired by law firm O'Melveny as a partner. Most recently with Dechert, Norton concentrates on the media and telecom sectors.
Phyllis Young has joined law firm McGuireWoods as a partner. She was previously with Akin Gump, and focuses on M&A and debt financing in the energy sector.
Overall M&A activity in the third quarter saw $600 billion worth of deals closed, according to PitchBoook. So far in 2019, more than 8,000 deals have closed, worth about $1.6 trillion. The activity is on pace with the first three quarters of 2018. Among the deals that closed include: Cox Automotive's purchase of Rivian Automotive; TPG Sixth St Partners' deal for Smartdrive Systems and Boathouse Capital backing TapClicks. Read the full story: Key middle-market M&A deals completed in Q3 2019
The private equity model has held up very well over the decades, continuing to outperform the public markets, even as economic cycles come and go. But the rate of growth has slowed, leading PE firms to seek adjacent areas of business to expand. As PE firms face increased pressure to produce higher returns on their investments, many of them are turning to a familiar area of business: lending. Adams Street Partners, Balance Point Capital, Carlyle and VSS are all actively engaged in lending. Read the full story: Private equity firms are becoming lenders. Here’s why.
It’s a milestone year for the Blackstone Group Inc. (NYSE: BX), which transitioned from a publicly traded partnership to a corporation on July 1. The New York firm announced the final close of its latest global real estate fund recently. With $20.5 billion of total capital commitments, Blackstone Real Estate Partners IX is the largest real estate fund ever raised. Mergers & Acquisitions spoke with Stephen A. Schwarzman, the firm’s co-founder, chairman and CEO. Read the full story: "Complete control" is the beauty of private equity, says Blackstone's Stephen A. Schwarzman.
Bank M&A has been soaring, creating the perfect backdrop for Piper Jaffray’s announced acquisition of Sandler O’Neill & Partners LP. “There has been a lot of consolidation in the bank space,” Piper Jaffray CEO Chad Abraham told Mergers & Acquisitions. “But there are still 5,000 banks, and we expect the pace of consolidation to continue.” For analysis of the deal, see Counting on bank M&A: Why Piper Jaffray bought Sandler O'Neill.
Looking for a glimpse of what’s to come in the private equity industry? Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. As the PE industry undergoes a generational shift, and many firm founders retire, it’s well worth getting to know these emerging leaders, including Branford's Austin Collier, Sterling Partners' Shawn Domanic and Summit Partners' Sophia Popova. For profiles and video interviews, see Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. For Q&As, see 10 Rising Stars of Private Equity tell their tales.
To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influential Women in Mid-Market M&A. For more on the timeline and nomination process for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.
ACG Boston hosts The 2nd annual Healthcare Conference – Improving the Patient Experience - on Nov. 6 at the UMass Club in Boston, as a part of the ACG Northeast Industry Tour. Speakers include Mergers & Acquisitions editor-in-chief Mary Kathleen Flynn, who is moderating a panel.
ACG Charlotte brings M&A pros together for Deal Crawl at the Mint Museum in Charlotte, North Carolina, Nov. 6-7.
The Third Annual Women in Alternative Investments Career Forum is taking place at the New York Hilton on Nov. 8.
ACG New York is hosting Middle Market Week in New York from Nov. 11-15. The 17th Annual Private Equity Wine Tasting Gala takes place on Nov. 13 at Gotham Hall.
Exponent Women is hosting a Family Office Event with Owens Group at LX Gallery in New York on Nov. 21. Mergers & Acquisitions editor-in-chief Mary Kathleen Flynn is moderating a panel.