M&A wrap: TPG, Harlem Capital, AbbVie, Allergan, Watermill, Liberty Hall

harlemcapital

TPG is making a non-control investment in venture capital firm Harlem Capital Partners. TPG will also invest capital in HCP's first fund. The deal will allow HCP to grow its operations and receive additional support for its portfolio companies. Led by managing partners Henri Pierre-Jacques and Jarrid Tingle, who both previously worked at private equity firm ICV Partners, New York-based HCP focuses on backing minority and women-founded businesses. The firm has a goal of backing 1,000 diverse entrepreneurs over the next 20 years. “In its short lifespan, HCP has established itself as a go-to partner for minority founders and women-led businesses, many who are providing new and innovative solutions to different problems,” says TPG co-CEO Jon Winkelried. Some of HCP investments include: Aunt Flow, a provider of women’s hygiene products; Blavity, a media platform focused on African-American millennials; Paladin, a pro-bono management platform for legal teams; and Moving Analytics, a digital platform for cardiac rehabilitation and prevention. TPG was founded in 1992 and has more than $108 billion under management.

DEAL NEWS
AbbVie Inc. (NYSE: ABBV) has agreed to pay $63 billion for rival drugmaker Allergan Plc (NYSE: AGN), the latest huge merger in a pharmaceutical sector rapidly being reshaped by deals. The takeover offers a solution to long-standing challenges both companies have grappled with. AbbVie finally gets a set of products big enough to diversify its revenue from Humira, the top-selling rheumatoid arthritis injection that dominates its sales. Read the full story by Bloomberg News: Abbvie strikes deal for Botox -maker Allergan.

Karo Pharma AB is buying over-the-counter healthcare products company Trimb Holding from Avista Capital Partners for $366 million. Advisors to Avista include: Rothschild and Ropes & Gray. Advisors to Karo include: SEB Corporate Finance and White & Case.

Watermill Group-backed Enbi Group, a maker of precision rollers, has acquired Pierce Industries, a manufacturer of industrial rollers. Advisors to Pierce include: M-One Advisory and Nixon Peabody. Advisors to Watermill include: K&L Gates, Blais, Halpert, Lieberman & Greene, Grant Thornton and Partners Environmental Consulting.

Liberty Hall Capital Partners-backed Bromford Industries has acquired Accrofab Ltd., a supplier of fabricated and machined engine brackets for the aerospace sector. Advisors to the target include: ProVantage Corporate Finance and Flint Bishop and Geldards. The legal advisor to Liberty Hall and Bromford is Gibson Dunn & Crutcher. Financing was provided by Citizens Bank, CIT Bank and Beechbrook Capital.

Norwest Equity Partners has invested in Arteriors, a designer and supplier of decorative lighting fixtures, furniture and accessories. Advisors to Arteriors include: PJ Solomon and Baker Botts. The legal advisor to Norwest is Jones Day. Financing was provided Hancock Capital Management, Bank of Ireland and Norwest Mezzanine Partners.

Lovell Minnick Partners has acquired a minority stake in Onezero Financial Systems, a provider of software and technology services to the foreign exchange trading sector. Advisors to the target include: Broadhaven Capital Partners and Gunderson Dettmer. The legal advisor to Lovell Minnick is Morgan Lewis.

Centre Partners-backed Vision Innovation Partners (formerly Chesapeake Eye Care Management Group) has acquired a majority stake in Eye Care Specialists, an ophthalmology practice group located in Pennsylvania.

Gryphon Investors-backed Water’s Edge Dermatology has invested in Aqua Plastic Surgery, a plastic surgery practice located in Jupiter, Florida.

Car sharing company Getaround has acquired Nabobil for $12 million to expand in the Nordic region.

DEAL TRENDS
Deloitte and National Venture Capital Association found that venture capital firms are beginning to make some gains in addressing the gender and generational gaps that exist in the industry. Overall, the number of VC firms with diversity and inclusion programs nearly doubled from 2016. Women are still underrepresented in the VC industry, but their numbers are growing. Millennials now constitute the biggest generation in the VC industry. However, Not all D&I improvements are happening at the same rate. An email was distributed to 1,428 active VC firms, including NVCA members, asking them to participate in the study.

A new survey of alternative investment professionals found that hedge fund and private equity executives predict moderate economic growth for the remainder of 2019. About 30 percent of respondents predict M&A will rise over the 12 months, while 52 percent expect the same current level of deal flow. The survey polled 120 executives at EisnerAmper’s 4thannual Alternative Investment Summit. For more on the conference, see our story about keynote speaker Alex Rodriguez: A-Rod talks Ice Shaker, NRG eSports, J. Lo & maybe buying a baseball team.

Cybersecurity issues are increasingly becoming a concern in mergers and acquisitions, a new survey shows, and lapses can jeopardize deals or haunt purchasers long after the deal is done. Read the full story by Bloomberg News: Cybersecurity risks are threatening deals.

PEOPLE MOVES
Robert Wilson has joined investment bank Houlihan Lokey (NYSE: HLI) as a managing director, where he is focusing on the packaging and paper sectors. WIlson was previously with SunTrust Robinson Humphrey.

Matt Petronzio was hired by lower middle-market private equity firm Twin Bridge Capital Partners as a partner. Previously with Five Points Capital, Petronzio is responsible for expanding Twin Bridge’s small market buyout strategy.

Richard Vieira, Pierre Oustinow, Gurinder Sidhu, and Neil Motwani have joined Cowen’s technology, media and telecom banking group.

Colin Wittmer has been named PwC's U.S. deals leader. He was most recently PwC's New York deals leader.

Aaron Suh has joined law firm Morgan Lewis as a partner. He focuses on M&A and private equity.

FEATURED CONTENT
Alex Rodriguez is best known as the New York Yankees star who hit 696 home runs over the course of his 22-year baseball career, but today he’s making a name for himself as an investor as the founder and CEO of A-Rod Corp. One recent example: While serving as a guest judge on CNBC’s Shark Tank, Rodriguez backed Ice Shaker, an insulated bottle maker founded by former National Football League fullback Chris Gronkowski. Rodriguez talked about his life off the field as a savvy investor since his 20’s as the keynote speaker at EisnerAmper’s 4th annual Alternative Investment Summit at the The Museum of Modern Art on June 19. Among the topics discussed in a conversation led by Charles Weinstein, CEO of EisnerAmper: Rodriguez’ childhood as the son of a single mom; his investment thesis, which shares much with other middle-market investors; how he’s helping singer/dancer/actress Jennifer Lopez (to whom he became engaged in March) transition her business initiatives from licensing her brands to owning them; and how one day he just might buy a baseball team. Read the full story: A-Rod talks Ice Shaker, NRG eSports, J. Lo & maybe buying a baseball team.

Activity and urgency characterize the current dealmaking environment, say investment bankers and other M&A advisors interviewed by Mergers & Acquisitions. After a record-breaking 2018, forecasts for 2019 remain bullish. Advisors point to a lot of cash that must be deployed by strategic buyers and private equity firms alike; a healthy U.S. economy; and low interest rates. Competition for high-quality targets has never been more intense, especially for technology providers, they report, which means sellers are commanding high prices. It all adds up to a seller’s market. A mood of urgency prevails, as dealmakers seek to close deals quickly, while conditions remain favorable. The advisors interviewed for this story say they don’t see signs of a recession this year; however they are closely monitoring bellwethers, including corporate earnings, wage pressure, global supply chains and slowdowns abroad. They are recommending that clients be prepared for an economic slowdown in the next two years. Specialization is the name of the game, and investment bankers advise clients to seek targets with business-model stability, limited cyclical exposure and a recurring revenue business model. Technology, business services, healthcare, consumer and manufacturing are among the most promising sectors. Read the story: 8 M&A advisors urge closing deals now, while economy stays strong.

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.

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
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.

The Women's Connection Golf Clinic & Networking event takes place on July 17 at the Granite Links Golf Club in Quincy, Massachussets. The event is being hosted by ACG Boston.

ACG Seattle hosts the Northwest Middle Market Growth Conference at the Fairmont Olympic Hotel in Seattle on July 25.

ACG New York's summer dealmaking conference takes place at Gurney's Star Island Resort & Marina in Montauk, NY, July 31-Aug.1.

The Great Lakes ACG Capital Connection is being held at the Westin Book Cadillac Detroit Hotel in Detroit from Sept. 4-6.

M&A East takes place at the Pennsylvania Convention Center in Philadelphia from Oct. 21-23.

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