M&A wrap: HGGC, Steve Young, Tom Brady, Honeywell, Stryker, Most Influential Women

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The bench is getting deeper at HGGC, the Silicon Valley private equity firm led by co-founders Rich Lawson, CEO, and Steve Young, managing director and former quarterback for the San Francisco 49ers. The Palo Alto, California, firm, which focuses on software and other tech-enabled investments, has announced six new hires across the financial, operations and investment functions. The new teammates include Colin Phinisey, who joins as a principal, responsible for leading HGGC’s capital markets efforts across its portfolio. He served most recently a director in the leveraged finance group at Deutsche Bank Securities Inc. and previously as a senior financial analyst at Wachovia. “Colin brings substantial capital markets experience that will help further institutionalize best practices and lead our financing efforts with Wall Street,” says Lawson. “In the last year alone, we’ve been involved in $4.3 billion of financings, and we expect 2019 to be an even bigger year for us.” Christopher Guinn is also joining the lineup as an executive director, focused on working actively within HGGC’s portfolio. Previously, Guinn led acquisition integration for Golden Gate Capital portfolio company Ply Gem Industries and served as CFO at Golden Gate portfolio companies Atrium Corp. and Neways International. “Chris expands the roster of HGGC’s operational professionals that work closely with portfolio companies to ensure growth and success with operations, leadership and financials,” Lawson says. The firm also adds four associates in what Lawson describes as "the busiest year yet for HGGC.” Since January 2017, HGGC has closed seven platform investments and 23 add-on transactions and conducted five liquidity events. Over the last five years, the firm has made over 60 portfolio investments, a 130 percent increase in deal volume from the previous five years. Randy Jacops, the CEO of HGGC-backed Idera, won Mergers & Acquisitions' M&A Mid-Market Award for 2017 Dealmaker of the Year.

As Week 4 of the National Football League's regular season finishes up this evening when the Kansas City Chiefs face the Denver Broncos, check out Mergers & Acquisitions' look at star players who invest in companies through private equity, venture capital and other investment vehicles. New England Patriots quarterback Tom Brady (who beat the Miami Dolphins on Sunday) recently teamed with former New York 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. 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 the fast-growing PE firm HGGC. For more, read the full story: Tom Brady, Muhsin Muhammad, Michael Strahan, Steve Young also build companies.

Mergers & Acquisitions has opened up the nomination process for the 2019 edition of The Most Influential Women in Mid-Market M&A. By identifying and featuring dozens of influential women, Mergers & Acquisitions nurtures the community of female leaders and provides role models for women who are at earlier stages of their careers. To be considered, candidates must be women who are outstanding dealmakers both inside and outside of their firms. Evidence of influence in the broader M&A industry is essential. When nominating a candidate, please explain how she outperforms her colleagues at her firm and in the industry. Please provide examples of deals she has led, initiatives she has launched and other instances that show evidence of her influence in the middle market. While considering the merits of candidates, it’s helpful to read about women who have met our criteria in the past, such as Kainos Capital co-founder Sarah Bradley, who graced our 2018 cover. See the profiles of 35 women in our previous edition. Nominations must be received by Monday, October 15, 2018. Click here to learn more about the criteria and to submit a nomination.

Deal news
Honeywell International Inc. (NYSE: HON) CEO Darius Adamczyk won over investors in 2017 with his decision to shrink the company. Now he’s got to convince them he can grow. Adamczyk, after he completes two spinoffs in 2018, will be facing mounting pressure to find the right acquisitions for his plan to expand sales and reshape Honeywell into a company based more on software. Investors will be scrutinizing the chief executive officer’s first large transaction for signals on the direction he intends to take Honeywell, and how aggressive he’s willing to be on price, reports Bloomberg News. Read the full story: Honeywell CEO faces test as investors await 'signature deal.'

Stryker Corp. (NYSE: SYK) has bought HyperBranch Medical Technology for $220 million. The target develops medical devices based on polymers and hydrogels. Stryker won Mergers & Acquisitions' M&A Mid-Market Award for 2017 Deal of the Year for buying imaging technology developer Novadaq. Sidley Austin represented Stryker in the current deal.

Clayton, Dubilier & Rice has completed its acquisition of PowerTeam Services, a provider of maintenance and construction services to the utility sector. PowerTeam named Brian Palmer CEO. Palmer most recently served as CEO of the measure and controls division of GE Oil and Gas.

Behrman Capital has bought Ksaria Corp., a maker of cable assemblies and harnesses, for the aerospace and defense sector. Canaccord Genuity advised Ksaria.

Padcaster, which makes products to turn an iPad or smartphone into an all-in-one video production studio, has acquired Parrot Teleprompter from founder Brigham Arce, who will consult with Padcaster. The DAK Group served as the exclusive investment banker and financial advisor to Padcaster.

Varsity Healthcare Partners has invested in Probo Medical LLC, a reseller of ultrasound systems. TripleTree advised Probo.

Watervale Equity Partners has acquired EMX Industries, a manufacturer of sensors and controls for the access control and process automation sectors.

For more deal announcements, see The weekly wrap: Inspire Brands, Kettle Cuisine, Sirius XM.

For ongoing coverage of private equity fundraising activities, see our weekly column: PE fundraising scorecard: Three Hills Capital and Triton Fund.

People moves
Kara Helander was hired by the Carlyle Group LP (Nasdaq: CG) as chief diversity officer, where she is helping the firm increase board diversity across portfolio companies. Helander was previously global head of diversity and inclusion at BlackRock.

Steven Gendal, Ian Greenhaus, Abhishek Patwardhan and Nick Verma have joined credit manager CIFC. They were most recently with Logen Asset Management.

Harinder Hundle has joined family office TwinFocus to lead the firm's new London digs. Hundle previously managed private wealth at J.P. Morgan (NYSE: JPM) and Credit Suisse. TwinFocus advises more than $5 billion in assets for about 30 families across the globe.

Kirk Wilson has joined investment bank Broadhaven Capital Partners as a partner. Most recently with Greenhill & Co., WIlson focuses on the financial services sector.

Mergers and Acquisitions identifies 11 up-and-coming private equity investors, including Ethan Liebermann (TA Associates), John Kos (GTCR), Jennifer Roach (Yellow Wood Partners) and Afaf Ibraheem Warren (Siris Capital). See the full story: Meet Mergers & Acquistions' 11 Rising Stars of Private Equity.

Featured content
Food & beverage M&A offers plenty of mouth-watering deals. Giants Coca-Cola Co. (NYSE: KO) and PepsiCo Inc. (Nasdaq: PEP) update their product lines with healthy offerings, while private equity firms, such as Brynwood Partners, breathe new life into tried and true brands, like Pillsbury. And lots of buyers experiment with meal kits and delivery methods, fueling M&A. Read the full story: 9 food & beverage companies loved by consumers and dealmakers alike.

Strategic buyers leverage data, sell more snacks and cater to seniors. Mergers & Acquisitions outlines the M&A strategies of 8 corporations, including Best Buy, Energizer, Fortune Brands, Hershey, Nike, P&G, Stanley Black & Decker and Tyson Foods. See the full story: Best Buy, Hershey, Nike, P&G and more wield M&A to grow.

Tyson Foods Inc. (NYSE: TSN), the owner of Hillshire Farm, wants to “feed the world” with its protein brands and will seek acquisitions to help. How Tyson is focusing on what it does best through M&A.

Between 70 and 80 percent of all M&A integration projects fall short of delivering anticipated value. This isn't because the acquisition target is somehow subpar, it's because the acquiring firm lacks a strong integration strategy. Read the full story: How to accelerate value in the first 100 days after an acquisition.

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.

Events
M&A East, hosted by ACG Philadelphia and held Oct. 24-25, at the Pennsylvania Convention Center in Philadelphia, brings together 1,300 top strategic and financial dealmakers and leading middle-market advisors for deal sourcing and networking. Featured speakers include Walter Robb, former CEO Whole Foods, and Chris Voss, former FBI lead hostage negotiator. The Women in Dealmaking session will focus on Women in the Board Room.

Exponent Evening with Tequila Casa Dragones, hosted by Exponent Women LLC, a networking group for female dealmakers, held Oct. 25 at The Dream Downtown in New York, features tequila, food and a conversation between Bertha Gonzales Nieves, co-founder and CEO of Tequila Casa Dragones, and Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions. For more on networking group’s previous event, see Exponent drew 200 women dealmakers to event featuring Sallie Krawcheck.

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.

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