PetIQ Inc. (Nasdaq: PETQ) is buying Perrigo Animal Health from Perrigo Co. (NYSE: PRGO) for $185 million. The target makes over-the-counter pet health products under the PetArmor, Sentry and Sergeant’s brands that are used to treat fleas. People are increasingly treating pets like family members and spending more on them, which is creating demand for pet health products and services, and driving M&A in the sector. "This business combination is aligned with our mission to make pets’ lives better through improved access to affordable pet healthcare," says PetIQ CEO Cord Christensen. PetIQ owns the Advecta flea treatment brand, along with Betsy Farms and Delightibles, which produce dog and cat treats. For Perrigo, the deal is part of its strategy to transform itself into a consumer-focused, self-care company. Separately, Perrigo announced plans to buy oral care products maker Ranir Global Holdings for $750 million. Ranir makes toothbrushes, flosses and whitening strips. "The addition of Ranir to the Perrigo family illustrates a key component of our new strategy, accelerating growth by pursuing adjacent self-care categories," says Perrigo CEO Murray Kessler. Advisors to PetIQ include: Jefferies, KPMG, Winston & Strawn LLP and Baker Botts LLP. Advisors to Perrigo on both deals include: William Blair and Morgan, Lewis and Bockius. The legal advisor to Ranir is Kirkland & Ellis.
Healthcare companies are spending more on information technology than ever before. Private equity firms including Bain Capital, Great Hill Partners, GTCR, New Heritage Capital and the Riverside Co. are investing in the innovations most in demand, including big data, Software-as-a-Service and artificial intelligence. See 5 private equity-backed healthcare technology deals.
DEAL NEWS
Edgwell Personal Care Co. (NYSE: EPC), the maker of Schick razor blades, is acquiring men's grooming and personal care company Harry's Inc. for $1.37 billion. The deal will expand Edgewell's online presence with Harry's direct-to-consumer services. Advisors to Edgewell include: Goldman Sachs (NYSE: GS), Perella Weinberg Partners and Wachtell, Lipton, Rosen & Katz. Advisors to Harry's include: Centerview Partners, Latham & Watkins and O'Melveny & Myers.
SnapAV, a manufacturer of audio, video and surveillance products for homes and businesses, is buying Control4 Corp. (Nasdaq: CTRL) for $680 million. The target offers connected technology for homes and businesses, including light, music, video and security. Advisors to Control4 include: Raymond James and Goodwin Procter. The legal advisor to SnapAV is Simpson Thacher & Bartlett LLP.
Aterian Investment Partners is buying Hain Pure Protein Corp., which includes the Freebird and Empire kosher businesses, from Hain Celestial Group Inc. (Nasdaq: Hain) for $80 million. Centerview Partners is advising Hain.
Accel-KKR has made a growth equity investment in Safeguard Global. Safeguard's technology helps businesses pay employees in new geographies, while adhering to country-specific rules, laws and regulations. Needham & Co. advised Safeguard.
Crestview Partners-backed auto parts company ATC Drivetrain has acquired acquired ATP Automotive Transmission Remanufacturing Specialists Ltd.
Apax Partners is buying Baltic Classifieds Group, an online classified advertising platform in the Baltics, from Media Investments & Holding OÜ.
FEATURED CONTENT
Call for nominations: Mergers & Acquisitions has opened up the nomination process for the second annual 2019 Rising Stars of Private Equity. Last year, we named 11 PE investors to the list, including Ethan Liebermann, who was recently promoted from principal to director of TA Associates, and Jennifer Roach Pacini, a vice president of Yellow Wood Partners. For the Rising Stars of Private Equity, we look for individuals who are full-time private equity investors and whose best days are yet to come. These are the folks you predict will one day play a key leadership role at your PE firm – or will head up their own. There is no age cutoff. As a general rule of thumb, we are looking for candidates beyond entry-level investing but before making partner. We publish the list online in July and in the July/August issue of the magazine. The deadline for nominations is end of day Thursday, May 23, 2019. Nominations will be accepted only through our online form. There is no fee.
CLICK HERE TO NOMINATE A RISING STAR OF PRIVATE EQUITY
Click here for the 2018 Rising Stars of Private Equity.
Technology is revolutionizing the healthcare industry and fueling an explosion of transactions. Some of the most promising areas of innovation are: big data, medical devices, revenue cycle management, Software-as-a-Service and payment processing. “Healthcare IT is the largest cottage industry in the world,” says Sam Hendler, who leads healthcare IT deals at Harris Williams, which recently won Mergers & Acquisitions’ 2018 M&A Mid-Market Award for Investment Bank of the Year. “Healthcare IT is a highly fragmented, multi-billion-dollar market with thousands of companies focused on different $250 million to $500 million sub-markets. Savvy investors see there is an opportunity to aggregate assets and build platforms of scale. It’s an incredibly exciting time in healthcare IT.” For an in-depth look at five technologies driving M&A in healthcare, see Healthcare's must-have technologies.
For most of April, it seemed bank consolidation would be as sluggish as it has been for most of the year. Only six deals were announced though the first half of the month. But a flurry of activity occurred in the final week, as seven banks — and a credit union — announced acquisition agreements. BancFirst in Oklahoma City said it had agreed to buy Pegasus Bank and enter Texas, while Teachers Credit Union in Indiana said it would buy New Bancorp in Michigan. Read the full story: It was a slow month for M&A until ...
Technology permeates dealmaking today. “Tech is, more or less, touching everything,” as the authors of the 2019 BDO Technology Outlook Survey put it. You can see the impact of tech throughout the 2018 winners of Mergers & Acquisitions’ M&A Mid-Market Awards, especially Luminate Capital Partners founder Hollie Hayne scoring Dealmaker of the Year for raising a second fund to invest in enterprise software companies and TA Associates winning Private Equity Firm of the Year for investing a record $2.8 billion in new portfolio companies, most of which are infused with technology.
Related: Why private equity firms still love technology
Related: 10 private equity firms share strategies for tech M&A.
Excelled. Innovated. Inspired. That’s what the eight winners of Mergers & Acquisitions’ 12th Annual M&A Mid-Market Awards did in 2018. Our awards honor the leading dealmakers and deals that set the standard for transactions in the middle market. In addition to Nike, award winners include: Fortive, TA Associates, the Riverside Co., Harris Williams, Monroe Capital, Goodwin and Luminate Capital Partners' Hollie Haynes. Read our full coverage: Meet the winners of the M&A Mid-Market Awards: Nike, Fortive, TA, Harris Williams.
Genstar Capital, Audax, HarbourVest ranked as the top U.S. private equity firms of 2018, based on volume of completed deals, according to PitchBook. Check out Mergers & Acquisitions' profiles of 21 firms that led the league tables. Top private equity firms: Genstar, Audax and HarbourVest.
Also see: Top investment banks in PE-backed deals: KPMG, Houlihan, GS, William Blair.
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. Related: Meet the 2019 Most Influential Women in Mid-Market M&A.
EVENTS
Innovation Works holds its second annual AI/Robotics Venture Fair in Pittsburgh May 15-16.
ACG Chicago hosts the Midwest Capital Connection, at The Marriott Downtown Magnificent Mile, May 21-22.
ACG New York, ACG Boston and ACG Philadelphia are holding the Industrial Conference with Value Creation at the Infor in New York on June 6. The event is part of the Northeast Industry Tour.
ACG Minnesota hosts the The Upper Midwest ACG Capital Connection at the Renaissance Minneapolis Hotel, The Depot, June 10-11.
ACG Boston brings together 700-plus dealmakers for DealFest Northeast and DealSource Select 2019 at the Cyclorama & The State Room, June 12-13.
Exponent Women hosts the Annual Exchange, which brings a trusted network of women dealmakers together for a focused day of robust content and networking, at Second in New York, on July 11. The Exchange provides attendees with opportunities to establish new connections, reinforce existing ones, and absorb timely and relevant knowledge from industry leaders.
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