M&A wrap: Shore Capital, Apollo, Smart & Final, Martha Stewart, Emeril Lagasse

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Shore Capital Partners, a private equity firm that focuses on the healthcare and food and beverage sectors, has raised two new funds. The PE firm raised its third healthcare fund at $293 million. In addition, Shore Capital raised its first food and beverage fund at $148 million. The healthcare fund will invest in mircrocap businesses that have up to $100 million in revenue, including animal healthcare. In 2017, Shore Capital invested in Midwest Veterinary Partners, which owns the Lake Huron Veterinary Clinic in Michigan. The veterinary market is ripe for consolidation because there is an aging population of veterinarians who want to sell out of their practices and an increasing number of new veterinarians with high student debt and an increased desire to work as veterinarians, but not necessarily do the administrative work of owning a practice. Shore Capital's food and beverage fund will seek investments in businesses that are involved in manufacturing, distribution and packaging. “Having the ability to expand our expertise and knowledge into the food and beverage space while simultaneously continuing our original healthcare-focused strategy is an attractive opportunity for our limited partners and firm as whole," says Shore Capital founder Justin Ishbia. “As has been the case for many years and various cycles, we are confident that the food and beverage industry will continue to present quality investment opportunities, particularly within a number of niche sectors." Kirkland & Ellis advised Shore Capital.

Related: Why private equity firms like veterinarians, opthamologists and dentists

DEAL NEWS
Apollo Global Management LLC (NYSE: APO) is acquiring Smart & Final Stores, a value-oriented food retailer from Ares Management for $1.12 billion. Smart & Final operates 257 stores. Apollo previously owned Smart & Final from 2007-2012 and sold the target to Ares in 2012. Advisors to Smart & Final include: Jefferies, Citigroup, Centerview and Kirkland & Ellis. The board is being advised by Gibson Dunn & Crutcher. Advisors to Apollo include: Morgan Lewis & Bockius and Paul Weiss Rifkind Wharton & Garrison.

Adtalem Global Education Inc. (NYSE: ATGE) is buying OnCourse Learning, which offers compliance training, license preparation, continuing education and professional development, from Bertelsmann for $121 million. "This transaction expands our reach across the governance, risk and compliance sector and enhances our ability to meet the current and future needs of employers in the dynamic financial services industry," says Adtalem CEO Lisa Wardell. Advisors to Bertelsmann include: Macquarie Capital and Manatt Phelps & Phillips.

Neuberger Berman-backed Marquee Brands is buying the Martha Stewart and Emeril Lagasse brands from Sequential Brands Group (Nasdaq: SQBG).

North Castle Partners has invested in Indian food brand Maya Kaimal Foods. The target makes sauces and ready-to-eat rices. The Giannuzzi Group advised the target. Morrison Cohen advised North Castle.

Meketa Investment Group and Pension Consulting Alliance have combined. The two firms now manage $1.8 trillion in assets, including $100 billion in private markets and real estate assets.

Falfurrias Capital Partners-backed E-Technologies Group has purchased Superior Controls Inc., a provider of automation and control systems for the life sciences industry.

Sverica Capital Management has invested in Stream Companies, a marketing software provider for the automotive sector.

PEOPLE MOVES
Pat Cornelius has joined law firm Barnes Thornburg as a partner. Most recently with Squire Patton Boggs, Cornelius focuses on M&A in the financial services and healthcare sectors.

Robert Juelke was hired by law firm Hogan Lovells as a partner, where he is focusing on M&A in the insurance and real estate sectors. He was most recently with Drinker Briddle.

David Marchick has rejoined law firm Covington as senior of counsel. Marchick was previously with the Carlyle Group (Nasdaq: CG), and advises companies and executives on matters that involve law, policy and reputational risk.

Alex Park was hired by law firm Alston & Bird as a partner. Previously with Womble Bond Dickinson LLP, Park focuses on M&A in the real estate and hospitality sectors.

FEATURED CONTENT
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: Nike, 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.

Related: Read more about Mergers & Acquisitions' three annual special reports, including the M&A Mid-Market Awards, the Rising Stars of Private Equity, and the Most Influential Women in Mid-Market M&A.

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, HarbourVest and more

Also see: Top investment banks in PE-backed deals: KPMG, Houlihan, GS, William Blair.

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 Awardsespecially: Luminate Capital Partners founder Hollie Hayne’s scoring Dealmaker of the Yearfor 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 one way or the other.

Related: Why private equity firms still love technology
Related: 10 private equity firms share strategies for tech M&A.

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
ACG Boston hosts a 40th Anniversary Celebration and inaugural awards reception at the Boston Harbor Hotel's Wharf Room on April 24.

InterGrowth 2019 takes place May 6-8 at the Waldorf Astoria & Hilton Bonnet Creek in Orlando, Florida.

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 Philadlephia 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.

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