M&A wrap: Q2, Brynwood, Pillsbury, Smucker, Getty, inclusion
Despite a growing threat of trade wars and other political disruptions, the global mergers and acquisitions market stayed strong in the second quarter, with 2,632 announced transactions reported worldwide, just over a 1 percent increase from 2,595 in the first quarter, according to Mergermarket data. As usual, North America led the world in M&A transactions, generating over half the volume with 1,434 deals of the 2,632 deals reported, down slightly from 1,452 reported in the first quarter. The next-largest market was the United Kingdom & Ireland with 397, a 15 percent increase from 344 in the prior quarter. The DACH and Nordics regions had 272 and 262, which was on par with 279 and 268 from the first quarter, respectively; and finally Indochina saw 147, compared to 139 and Iberia had 124 vs 113 in the same quarter. North America domestic deal volume stayed strong (1,132 domestic to 302 inbound), a 79 percent to 21 percent mix, and similar to Q1 which recorded 1,145 to 307, respectively. Read the full story: M&A activity stayed strong in Q2.
"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. 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." Pendleton spoke on a panel moderated by Mergers & Acquisitions editor-in-chief Mary Kathleen Flynn at Exponent Exchange. For more, see Exponent drew 200 women dealmakers to event featuring Sallie Krawcheck. Watch the full video: M&A Insights: Inclusion investing.
Brynwood Partners has completed its $375 million acquisition of the Pillsbury, Hungry Jack, White Lily, Jim Dandy and Martha White brands from the J.M. Smucker Co. (NYSE: SJM). As a result, Brynwood has hired former Kraft Heinz Co. (Nasdaq: KHC) executive Daniel Butler as CEO and former Treehouse Foods Inc. (NYSE: THS) executive Tim Young as CFO to lead the target.
The Getty family is buying the Carlyle Group LP's (Nasdaq: CG) majority stake in Getty Images. Debevoise & Plimpton is representing Caryle.
Webster Capital has closed its fourth fund at $875 million. The firm has already made three investments out of the fund. Webster focuses on the lower middle market consumer and healthcare sectors. Campbell Lutyens was Webster's placement on the fund raise and was represented by Ropes & Gray. For more on PE fundraising, see PE fundraising scorecard: Lee Equity and Vista Equity.
EG Group is buying TravelCenters of America's Mini Mart convenience store business for around $331 million. Skadden, Arps, Slate, Meagher & Flom LLP is advising TravelCenters.
Falcon Private Holdings LLC, the private investment manager of the family office of Jamshid Keynejad and Barry Siadat, has acquired a majority stake in Spanish ceramic tile producer Halcón Cerámicas from the family owners. Halcón designs, produces, and distributes a broad portfolio of ceramic tiles for floor and wall construction mainly throughout Europe. Fidentiis, Cuatrecasas, and Deloitte advised Falcon. Banco Santander and CaixaBank provided financing.
General Logistics Systems, a subsidiary of Royal Mail plc has bought Dicom Canada from Wind Point-backed Dicom Transportation Group for CAD$360 million ($273 million). Dicom Canada offers ground-based parcel, freight and logistics services in Canada with a focus on Ontario and Quebec. Harris Williams, KPMG and Kirkland & Ellis advised Dicom.
Gryphon Investors has acquired a majority stake in logistics company Transportation Insight from Ridgemont Equity Partners. The target is a provider of tech-enabled logistics and freight brokerage services. Harris Williams & Co. advised Transportation Insight and BB&T Capital Markets advised Gryphon.
Home furnishings design company Mackenzie-Childs has acquired Patience Brewster, a maker of hand-painted figurines.
For more deal announcements, see The weekly wrap: Allstate, Stryker, Yellow Wood.
Amy Peters has joined King & Spalding as a partner. Previously with Kirkland & Ellis, Peters represents credit funds, banks, investors and borrowers in leveraged finance transactions.
Bruno Nehmé was hired by investment bank Arma Partners a managing director, focusing on the fintech sector. He was previously with JPMorgan (NYSE: JPM). Jeremie Sokolowsky was also hired by Arma Partners as a partner. Sokolowsky was previously with Goldman Sachs (NYSE: GS) and he will be co-leading Arma's media and Internet group.
Stuart Rasley has joined McGuireWoods as a partner. Most recently with Squire Patton Boggs, Rasley advises public and private companies, investors and financial institutions on M&A and private equity.
The energy industry is teeming with M&A activity, as companies seek to improve operations. Hubbell and Ingersoll Rand are among the strategic buyers. Private equity firms acquiring include AE Industrial Partners, Clayton, Dubilier & Rice and Genstar Capital. Companies in the energy industry are focused on improving operational efficiencies and analytical capabilities. The issues are urgent for oil and gas companies, because depressed prices mean profits are hard to come by, says Caroline Blitzer Phillips, who advises clients on energy deals as a partner at law firm Vinson & Elkins. They are also essential for renewable energy, which “has been quite expensive in some cases, because the infrastructure is not in place.” From providers of “smart grids” to developers of energy management software, Mergers & Acquisitions looks at recently acquired targets. Read the full story: 14 smart energy deals.
PepsiCo’s announced $3.2 billion acquisition of SodaStream is the latest in a wave of deal activity in the packaged food sector. This robust M&A environment should continue over the next 12 to 18 months as companies look to become more agile and tap into consumer trends like “better for you” foods and snacking, while also looking to improve capabilities such as digital marketing. Read the full story: PepsiCo's SodaStream deal augurs more food & beverage M&A.
While some of the firms that were instrumental in launching the middle market back in the 1980s and 1990s have long since been shuttered, their legacy lives on. They proved to be excellent training grounds for many successful dealmakers. Heller Financial certainly belongs in this category, and Mergers & Acquisitions featured its alumni a few years ago. Another firm with a far reach is Holleb & Coff, a Chicago law firm that closed in 2000, after a nearly 50-year run. Many of the lawyers who worked at Holleb & Coff back in the day are making a significant impact on M&A today, including: John Corvino, general counsel to the Chicago White Sox; · Brian Kerwin, chair of Duane Morris’ global corporate practice; Theodore (Ted) Koenig, the founder and CEO of Monroe Capital; Kenneth Serota, president of Hu-Friedy Manufacturing Co., and Michelle Warner, general counsel, USG Corp. (NYSE: US). Read the full story: Holleb & Coff alumni: Where are they now?
Mergers & Acquisitions has announced 11 Rising Stars of Private Equity, including John Kos, GTCR; Ethan Liebermann, TA Associates; Jennifer Roach, Yellow Wood Partners; and Afaf Ibraheem Warren, Siris Capital . The up-and-coming investors are expected to play significant leadership roles in the future. See: Meet Mergers & Acquisitions' 11 Rising Stars of Private Equity.