M&A wrap: Genstar, Ipsen, Clementia, GE, Platinum, Piper Jaffray
Middle-market private equity firm Genstar Capital has raised its ninth fund at around $7 billion. The fund has raised $5.5 billion in limited partner commitments, $1.1 billion in overage capacity and $400 million from general partners and affiliated entities. San Francisco-based Genstar has about $17 billion in assets, focusing on the financial services, industrial technology, healthcare and software sectors. Earlier in 2019, Genstar-backed Drillinginfo has bought Cortex, a software provider for the energy sector. "We believe that our thesis-driven investing model of growing and building industry leading businesses will continue to deliver superior performance for our investors," says Genstar managing director Tony Salewski. Evercore Partners (NYSE: EVR) served as Genstar's placement agent and Weil, Gotshal & Manges provided legal advice.
Technology M&A is thriving, and private equity firms are hot on the trail of innovations that will drive sustainable value to customers and make companies more efficient, more effective and less expensive to run. Among the developments appealing to PE investors are: artificial intelligence, data management, data virtualization, digital marketing, healthcare IT, industrial automation, the Internet of Things, machine-to-machine learning, payment processing and Software-as-a-Service. To gain more insights into what kinds of tech deals will dominate the field in 2019, Mergers & Acquisitions reached out to 10 private equity firms that are active investors in technology: Francisco Partners, Genstar, Great Hill, HGGC, Insight, LLR, Riverside, Silver Lake, TA and Vista.
General Electric Co. (NYSE: GE) is taking a big step toward its goal of deleveraging its $121 billion debt load by selling part of its fast-growing life sciences division. The industrial giant agreed to sell its biopharma business to Danaher Corp. (NYSE: DHR) for total consideration of $21.4 billion to help pay down debt. Read the full story by Bloomberg News: GE puts debt cuts in forefront with asset sale.
Ipsen is acquiring Clementia Pharmaceutical (Nasdaq: CMTA) for up to $1.3 billion. Advisors to Ipsen include: Centerview Partners, Goodwin Procter and Davies Ward Phillips & Vineberg LLP. Advisors to Clementia include: Morgan Stanley, Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott.
Platinum Equity is acquiring labels producer Multi-Color Corp. (Nasdaq: LABL) for $2.5 billion. Advisors to Mult-Color include: Goldman Sachs & Co. (NYSE: GS), William Blair, Sidley Austin LLP and Keating Muething & Klekamp PLL. Advisors to Platinum include: Latham & Watkins.
JAB is buying a stake in Compassion-First Pet Hospitals from Quad-C Management. The deal has an enterprise value of around $1.2 billion. Advisors to Compassion-First include: Jefferies and Gibson Dunn & Crutcher. Advisors to JAB include: Skadden, Arps, Slate, Meagher & Flom LLP.
Piper Jaffray Cos. (NYSE: PJC) is buying Weeden & Co., a provider of trading technology services, for up to about $74 million. “As our investing clients unbundle how they access and evaluate research and best execution, we continue to strengthen our equities offerings," says Piper Jaffray president Deb Schoneman. Finn Dixon & Herling LLP is advising Weeden and Feagre Baker Daniels LLP is advising Piper Jaffray.
HC Private Investments-backed Kruger Plastics Products has bought Northern California Injection Molding and El Dorado Molds. Winston & Strawn advised HC. Oak Hill Securities is advised the target. Twin Brook Capital Partners is provided financing.
Barrick Gold Corp. has proposed to merge with Newmont Mining Corp. Cravath, Swaine & Moore LLP is representing Barrick.
SK Capital Partners, a private investment firm that focuses on the chemicals and pharmaceuticals sectors, has raised its fifth fund at $2.1 billion. In 2018, the fund invested in SI Group. Kirkland & Ellis advised SK Capital on the fundraise and UBS served as placement agent.
For ongoing developments about private equity funds being raised, see our weekly column, PE fundraising scorecard: Accolade, Hawk Equity, New Heritage.
For more deal announcements, see The weekly wrap: Great Hill, Qlik, Toro.
Mark Blaufuss was hired by the Carlyle Group (Nasdaq: CG) as an operating executive in the firm's industrials and transportation group. Blaufuss is the former CFO of Metaldyne Performance Group (NYSE: MPG).
Peter Gennuso was hired by Drinker Briddle as a partner. Previously with Thompson Hine, Gennuso focuses on private equity and M&A.
Rob Ruegger has joined food and beverage and consumer-focused private equity firm Kainos Capital as a managing director. Ruegger was most recently the chief operating officer of Gehl Foods.
"Companies that are inclusive and also diverse tend to outperform companies that aren't,"says investor Lorine Pendleton of Pipeline Angels and Portfolia in a video interview shot at Exponent Exchange, a gathering of 200 female dealmakers hosted by Exponent Women. Pendleton looks to invest in companies led by diverse entrepreneurs, which she defines as entrepreneurs of color, LGBT entrepreneurs, women, veterans, and disabled entrepreneurs. She also backs companies that have products and services that cater to those markets. "People think that they are niche markets, but they're actually growing in terms of spending dollars and market size."
Related: M&A Insights: Inclusion investing, a video interview with Lorine Pendleton.
Mergers & Acquisitions has named 36 leaders the 2019 Most Influential Women in Mid-Market M&A, including Kainos Capital's Sarah Bradley, Kayne Anderson Capital Advisors' Nishita Cummings and Pelham S2K Managers' Venita Fields. All 36 are outstanding dealmakers both inside and outside of their firms. This year, we asked the featured dealmakers to tell their own stories through Q&As, including their advice for women.
Mergers & Acquisitions has closed the nomination process for the 2018 M&A Mid-Market Awards. We look forward to announcing the winners in March. The Awards are one of three special reports we produce each year to celebrate deals, dealmakers and dealmaking firms. The other two are The Rising Stars of Private Equity and The Most Influential Women in Mid-Market M&A.
ACG New York hosts the 11th Annual Healthcare Conference at the Metropolitan Club in Manhattan on Feb. 28. Dealmakers network with healthcare-focused private equity investors and other industry professionals.
ACG Minnesota and Corvus North are hosting AIM: A Women's Leadership Conference at the Minneapolis Hyatt on March 7. The conference is designed to support and encourage female leaders to grow and achieve success throughout their career journeys.
ACG Philadelphia is hosting its 2nd annual Industry Tour focused on SaaS & Tech-Enabled Services on March 12 at the Union League of Philadelphia. Last year's event brought together 200 PE investors, investment bankers, operating companies and industry advisors from around the country.
ACG New York's Women of Leadership is hosting a golf event and reception on March 21 at Konnect Golf in Manhattan. The event brings together female dealmakers from private equity firms, investment banks and lenders.