M&A wrap: Bojangles', Jordan Co., Durational Capital, ConvergeOne, Clearlake, Thoma Bravo
The Jordan Co. and Durational Capital Management are buying fast food restaurant chain Bojangles Inc. (Nasdaq: BOJA) for about $593 million. Bojangles' is known for its Southern style menu such as made-from-scratch biscuit breakfast sandwiches that are served all day and bone-in hand breaded chicken. The company operates about 766 restaurants. “We are excited to invest in a company with such great growth potential, and we believe that with our partners’ support, Bojangles’ will be well-positioned for long-term success," says Jordan Co. partner Ian Arons. The Jordan Co. is a middle-market private equity firm that focuses on the consumer, industrials, healthcare and logistics sectors. Durational is a consumer-focused investment firm. Fast-food restaurants are attracting busy consumers and buyer attention. In 2018, Roark reached a deal to buy Sonic Corp. and in 2017, Oak Hill Capital Partners bought Checkers Drive-in Restaurants. For more on restaurant M&A trends, read the full story: What's attracting hungry buyers to restaurants? Here are 7 trends. BofA Merrill Lynch, Houlihan Lokey Inc. (NYSE: HLI) and Shearman & Sterling LLP are advising Bojangles'. Citigroup Global Markets Inc., Akin, Gump, Strauss & Feld LLP, Kirkland & Ellis LLP, and Seyfarth Shaw LLP are advising the buyers. KKR Capital Markets is providing financing.
CVC Capital Partners is acquiring IT services provider ConvergeOne from Clearlake Capital for $1.8 billion. "ConvergeOne has a significant opportunity to capitalize on the cloud adoption and digital transformation tailwinds of its enterprise customers," says CVC managing director Chris Colpitts. Raymond James, WIlliam Blair, Jefferies and Cooley are advising ConvergeOne. Deutsche Bank, UBS Investment Bank, White & Case are advising CVC. Skadden is advising Jefferies.
Thoma Bravo is acquiring security testing company Veracode from Broadcom Inc. (Nasdaq: AVGO) for $950 million. "Software security is one of the most consequential issues facing companies as they look to compete in the digital economy," says in coming Veracode CEO Sam King. Kirkland & Ellis is representing Thoma Bravo.
Golden Gate Capital is buying Vector Solutions, an e-learning and software-as-a-service company, from Providence Equity Partners. Kirkland & Ellis is advising Golden Gate. Robert W. Baird & Co. and Weil Gotshal & Manges are advising Providence.
KPS Capital Partners is acquiring battery manufacturer Trojan Battery Co. from Charlesbank Capital Partners. Paul, Weiss, Rifkind, Wharton and Garrison LLP is representing KPS.
One Equity Partners has bought Alltub Group, a maker of packaging products for the food and beverage, cosmetics and pharmaceutical sectors, from Aurora Capital Group. Lincoln International and Jones Day advised the sellers.
Speedway LLC, a subsidiary of Marathan Petroleum Corp. (NYSE: MPC), has acquired 78 retail stores from Express Mart. Matrix Capital Markets and Bond Schoeneck & King advised the sellers.
Gridiron Capital has invested in Royal Paper, a provider of bath tissue, paper towels, and napkins.
Buiding Industry Partners-backed Homewood Holdings LLC has bought Building Supply and Lumber Co.
Jay Fewel, a former senior investment officer for the state of Oregon treasury has recently passed away. Fewel was an early backer in TPG and Providence and retired in 2014.
Todd Kaplan has joined Centerview Partners as a partner. Kaplan was most recently the executive vice chairman of global banking at BofA Merill Lynch.
Sports betting is rapidly gaining traction in the U.S., and that is spurring mid-market deals.Scientific Games Corp. (Nasdaq: SGMS) is buying sports betting data provider Don Best Sports Corp. The deal comes on the heels of the U.S. Supreme Court’s overturning a 1992 federal law that barred most states from authorizing sports betting. The decision could pave the way for states to allow sports gambling. Read the full story, Why sports gaming M&A is about to take off.
The Tennessee Titans take on the Dallas Cowboys on Nov. 5, as NFL Week 9 comes to a close. Off the field, football stars team to build companies. New England Patriotsquarterback Tom Brady recently teamed with former Giants defensive end Michael Strahan, who is the co-host of ABC’s Good Morning America, to launch a sports media startup called Religion of Sports Media, which has raised $3 million in venture capital funding from CourtsideVC and Advancit Capital. Many NFL players invest in companies. Muhsin Muhammad, who played wide receiver for the Carolina Panthers and the Chicago Bears, is a managing director of private equity firm Axum Capital Partners. Steve Young, former San Francisco 49ers quarterback, is a co-founder of private equity firm HGGC. Mergers & Acquisitions takes a look at star players who invest in companies through private equity, venture capital and other investment vehicles.
Mergers & Acquisitions identifies 15 cities as fertile communities for dealmaking. We look at metropolitan areas from Austin (where Michael Dell launched a PC business out of his dorm room back in the day and where thousands gather every year for SXSW) to St. Louis (home of private equity firm Thompson Street Capital Partners). Be sure to check out Milwaukee (with private equity firm Robert W. Baird & Co. and investment bank Clearly Gull) and Minneapolis (home of strategic buyers 3M, Best Buy, General Mills, Hormel and Target). And don’t forget Boston, Chicago, New York, San Francisco and Los Angeles and more. See our list, Dealmaker's guide to 15 cities where M&A thrives.
Why investors like diversity. "Companies that are inclusive and also diverse tend to outperform companies that aren't," says investor Lorine Pendleton of Pipeline Angels and Portfolia in this video interview shot at Exponent Exchange, a gathering of 200 female dealmakers. Watch the full video: M&A Insights: Inclusion investing.
Acknowledging today’s climate of amplified workplace challenges, private equity firms must consider potential risks, from liability to litigation, before investing, writes Seyfarth Shaw's Gerald Maatman in this guest article. Read the full story: How to mitigate #MeToo risks before you buy.
ACG Chicago's Family Office Conference, held Nov. 8, at the Westin Chicago River North, brings deamakers together for a "deep dive" into family offices. The event features a keynote by Laurent Roux, Gallatin Wealth Management, and panels, including: Current State of Family Office Direct & Co-Investment Activity, with Gary Levenstein, Nixon Peabody; and Impact of Millennial Generation on Family Office Investment Strategy including Social Impact Investing, with Adam Lieb and Tony Oommen, Fidelity Family Office Services.
ACG Florida Capital Connection, held Nov. 12-14, at the Vinoy Renaissance St. Petersburg Resort & Golf Club, puts “sun and fun” into dealmaking for the middle market, bringing together hundreds of dealmakers. The keynote speaker is Forbes Media CEO Steve Forbes, and the featured speaker for the Women’s Forum is Valerie Crites Fowler, who served as a diplomat in the U.S. Foreign Service for over 29 years, reaching the rank of Minister Counselor in the Senior Foreign Service.
Middle Market Week, hosted by ACG New York and held Nov. 26-30 at various locations throughout New York, brings together leading global middle-market dealmaking professionals to develop and enhance their dealmaking activities, strengthen their long-term relationships, and provide numerous opportunities for networking all week long. Mark your calendar for the Private Equity Annual Wine Tasting Gala on Nov. 28 at Gotham Hall. The building was constructed in the 1920s as the headquarters of the Greenwich Savings Bank. The gala brings together the leading middle market private equity firms for an evening of fine wines and networking.