M&A wrap: Revelstoke, Steve Cohen, NY Mets, Point72, MetLife, Lincolnshire, Sun Capital, Thompson Street
Revelstoke Capital Partners has raised two funds with a combined $1.4 billion in capital. The PE firm raised $660 million for Revelstoke Single Asset Fund I and $714 million for Revelstoke Capital Partners Fund II. The funds will focus on healthcare investments. Revelstoke recently acquired Upstream Rehabilitation, the third largest provider of outpatient physical therapy services in the U.S. with 746 clinlics. The deal was made out of Revelstoke's new funds. "With the significant growth in demand for high-quality healthcare procedures, products and services, we will continue our disciplined and systematic approach to thematic investing in attractive sub-sectors and operationally intensive post-investment value creation," says Revelstoke co-founder Simon Bachleda. Since the firm was formed in 2013, Revelstoke has raised over $2.3 billion, and made 65 acquisitions and 48 add-on deals. Houlihan Lokey Capital Inc. (NYSE: HLI) served as placement agent for RCP Fund II and PJT Park Hill served as financial advisor to RSAF I. Simpson Thacher & Bartlett LLP provided legal advice. Harris Williams and Winston & Strawn advised Upstream Rehabilitation.
The holiday shopping season is well under way, the biggest period of the year for the retail industry. Mergers & Acquisitions is covering many M&A trends in the sector. This week we're featuring the fourth installment of a weekly series on the 7 technologies retailers are investing in: Retail Tech M&A #1: Nike, McDonald's, PayPal, add customization, IoT. Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups. Retail Tech M&A #3: Amazon leads race to build fulfillment centers. Retail Tech M&A #4: Do robots fill orders faster? Voice- and text-assisted technology provides customers with hands-free shopping experiences. Analytics give retailers a better understanding of consumer behavior and habits. Mobile payment processing provides consumers with on-the-go convenience. Check back every week for a new installment.
Steve Cohen is in talks to buy a majority stake of the New York Mets. Cohen is already a minority investor in the team. The transaction would value the team at a baseball-record $2.6 billion. Cohen, who grew up in Great Neck on Long Island rooting for the Mets, was the inspiration for the show “Billions." Cohen raised $5 billion from outside clients when his family office Point72 Asset Management became a hedge fund in 2018. Read the full story by Bloomberg News: Steve Cohen in talks to buy majority of New York Mets.
MetLife Inc. (NYSE: MET) is buying pet insurance company PetFirst Healthcare LLC. “Pet insurance has become an increasingly important voluntary benefit, and this transaction allows us to capitalize on this rapidly growing market opportunity,” says Ramy Tadros, president of U.S. business for MetLife. Guggenheim Securities and Mayer Brown are advising MetLife.
Centre Partners-backed One World Fitness has acquired San Diego Fitness, a franchisor of Planet Fitness Inc. (NYSE: PLNT) clubs in southern California. Marks & Klein advised the target. Akerman LLP advised One World.
BSC Capital Partners, an affiliate of Bailey Southwell & Co., has invested in Windrose Health Investors-backed Shearwater Health. The target offers clinical process outsourcing services.
Lincolnshire Management-backed True Sports has acquired Aerotech Golf, a manufactuer of golf shafts.
Sun Capital Partners Inc.-backed StonePoint Materials has bought Road Builders, a maker of construction and paving materials.
Thompson Street Capital Partners-backed Marmic Fire & Safety Co. has acquired Fire Control Systems, a provider of commercial fire protection services.
Galen Mason has joined law firm Michael Best, where he is focusing on venture capital. Mason was most recently with Foley & Lardner LLP.
At Mergers & Acquisitions, we're covering the philanthropic and volunteer initiatives underway in the private equity industry. Last year, we published The Big Give, an in-depth look at how private equity firms are contributing. Efforts have continued to flourish, fueled by younger Millennials seeking to build a better future and by mature partners considering the legacy they will leave behind. Read our full coverage: Private equity gives back: Vista's Robert F. Smith, Clearlake's José E. Feliciano, Riverside employees.
Albertsons, Kroger Co. (NYSE: KR), Stop & Shop and Walmart (NYSE: WMT) are building automated mini-warehouses and "dark stores" to make deliveries and prepare pickup orders. Mini-warehouses are usually attached to existing stores, and in most cases, "dark stores" are completely separate. Both formats are closed off to customers, and are mostly automated. They use the assistance of robots for speed, save on labor, and get orders out faster. Kroger bought a five percent stake in robotics firm Ocado. Read our full coverage: Smart supermarkets become popular, as Kroger, Walmart add them.
It’s a milestone year for the Blackstone Group Inc. (NYSE: BX), which transitioned from a publicly traded partnership to a corporation on July 1. The New York firm announced the final close of its latest global real estate fund recently. With $20.5 billion of total capital commitments, Blackstone Real Estate Partners IX is the largest real estate fund ever raised. Mergers & Acquisitions spoke with Stephen A. Schwarzman, the firm’s co-founder, chairman and CEO. Read the full story: "Complete control" is the beauty of private equity, says Blackstone's Stephen A. Schwarzman.
The private equity model has held up very well over the decades, continuing to outperform the public markets, even as economic cycles come and go. But the rate of growth has slowed, leading PE firms to seek adjacent areas of business to expand. As PE firms face increased pressure to produce higher returns on their investments, many of them are turning to a familiar area of business: lending. Adams Street Partners, Balance Point Capital, Carlyle and VSS are all actively engaged in lending. Read the full story: Private equity firms are becoming lenders. Here’s why.
Prokanga is a unique recruiting firm that offers full-time and flexible recruiting services. Prokanga is managed by co-founders Jamie Cheney and Lesley Finer (pictured). Mergers & Acquisitions spoke with Finer, who has more than 10 years of recruiting for the finance industry and leads the finance practice at Prokanga. For more, see Why financial services pros need flexibility.
Looking for a glimpse of what’s to come in the private equity industry? Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. As the PE industry undergoes a generational shift, and many firm founders retire, it’s well worth getting to know these emerging leaders, including Branford's Austin Collier, Sterling Partners' Shawn Domanic and Summit Partners' Sophia Popova. For profiles and video interviews, see Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. For Q&As, see 10 Rising Stars of Private Equity tell their tales.
To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influential Women in Mid-Market M&A. For more on the timeline and nomination process for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.
CB Insights hosts The Collective, featuring 30-plus fireside chats, at New World Stages Dec. 10-11. Mergers & Acquisitions editor-in-chief Mary Kathleen Flynn is slated to interview Lance Barton, head of corporate development for dating site developer Match Group.
The Annual AM&AA Winter Conference is taking place in Scottsdale, Arizon fron Jan. 8-10.
Deal Wave is being hosted by ACG Orange Country at the Ritz-Carlton-Laguna Niguel in Dana Point, California on Jan. 9.