M&A wrap: MidOcean Partners, Florida Food Products, Riverside Co., Charlesbank Capital

MidOcean Partners has closed its fifth private equity fund at $1.2 billion. The New York firm has already invested in five portfolio companies from the fund, including Florida Food Products. MidOcean, led by CEO Ted Virtue, has raised over $4.5 billion since it was founded in 2003. The PE firm focuses on the consumer and business services sectors and invests a minimum of $25 million in equity. MidOcean was formed through a $1.6 billion management buyout of Deutsche Bank's PE unit, DB Capital Partners. Virtue was the former CEO of DB Capital. In addition to private equity, MidOcan manages MidOcean Credit Partners, its alternative credit arm that was formed in 2009. MidOcean Credit focuses on credit hedge funds and collaterized loan obligations or CLOS. Kirkland & Ellis advised MidOcean on the fund raise. For more on PE fundraising, see PE fundraising scorecard: Three Hills Capital and Triton Fund.

The amount of money raised in Q3 by private equity funds throughout the world rose, but the number of new funds fell. About 327 private equity funds worth a total of $214 billion closed in the third quarter, compared with 438 funds worth $191 billion in the second quarter, according to Preqin. North American PE firms raised the most capital with $82 billion across 126 funds, compared with 144 funds and $42 billion in capital from the second quarter. Carlyle Group LP's (Nasdaq: CG) seventh PE fund was the largest fund raised in the third quarter at $18.5 billion. As of October, there are 3,922 PE funds seeking $956 billion. As of September, there is $1.14 trillion of PE dry powder available. See our list of some notable PE firms that raised new funds, 10 PE firms armed with fresh capital.

Nominations must be received by Monday, Oct. 15, for Mergers & Acquisitions' 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. Click here to learn more about the criteria and to submit a nomination.

Deal news
Amadeus has completed the $1.5 billion purchase of TravelClick from Thoma Bravo, which won Mergers & Acquisitions M&A Mid-Market Award for Deal of the Year for buying the hospitality industry software developer back in 2014.

Charlesbank Capital Partners-backed Rockport is buying the Reef brand, a maker of casual and dress shoes, from VF Corp. (NYSE: VFC). PJ Solomon and Davis Polk and Wardwell are advising VF.

Global Orthopadeic Technologies has acquired orthopedic device manufacturer Corin Orthopaedic Holdings from the Riverside Co. Allier Capital and Herbert Smith Freehills advised GOT.

Artech Information Systems is buying CDI's talent and technology services business unit. CDI is backed by AE Industriral Partners. Blank Rome and Fairmount Partners are advising Artech. Houlihan Lokey Inc. (NYSE: HLI) and Ballard Spahr are advising CDI.

Cognizant (Nasdaq: CTSH) is buying Softvision LLC, which develops digital products using collaborative engineering methods.

Francisco Partners-backed Bomgar has completed its purchase of privilege-centric security provider BeyondTrust.

Gryphon Partners-backed Cora Physical Therapy has acquired Clinton Physical Therapy Center and Associated Therapeutics Inc.

Spire Capital Partners has invested in early education provider O2B Kids Early Education. Dentons US LLP advised Spire. Hinge Brokers and Brashear & Associates advised 02B.

Walgreens Boots Alliance Inc. (Nasdaq: WBA) has acquired a minority stake in online beauty retailer Birchbox, as a part of a strategic partnership, in which Birchbox will launch retail experiences in certain Walgreens stores.

People Moves
Kristof Gleich was hired by Harbor Capital Advisors as president. Gleich was previously with J.P. Morgan Wealth Management.

Featured content
It's Week 5 of the NFL regular season, and Mergers & Acquisitions takes a look at star players who invest in companies through private equity, venture capital and other vehicles. New England Patriots quarterback Tom Brady recently teamed with former New York Giants defensive end Michael Strahan (pictured), 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 PE firm HGGC. For more, read the full story: Tom Brady, Muhsin Muhammad, Michael Strahan, Steve Young also build companies.

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 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.

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