M&A wrap: Vivint, Mosaic, Blackstone, Fortress, Cobham, Advent, Most Influential Women

vivint

Vivint Smart Home, a maker of home security and monitoring systems, is merging with special purpose acquisition company Mosaic Acquisition Corp. (NYSE: Mosaic) in a deal valued at $5.6 billion. The Blackstone Group Inc. (NYSE: BX) is investing $100 million in Vivint and Fortress Investment Group is investing $125 million. After the deal closes, Blackstone and other existing Vivint investors will own about 78 percent of the combined company. Vivint offers cloud-based home technology, monitoring and security products such as smoke detectors, smart locks and cameras. The company has 1.5 million subscribers across 98 percent of U.S. zip codes. "As the smart home market rapidly expands globally, Vivint is in the early stage of a massive opportunity and is ready to create the future of how we live and interact with our homes," says Vivint CEO Todd Pederson. Advisors to Vivint include: J.P. Morgan Securities (NYSE: JPM), Evercore (NYSE: EVR), Blackstone Capital Markets and Simpson Thacher & Bartlett LLP. Advisors to Mosaic include: Deutsche Bank Securities, Goldman Sachs & Co. (NYSE: GS), Morgan Stanley & Co., RBC Capital Markets LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP. The advisor to Fortress is Fried, Frank, Harris, Shriver & Jacobson LLP.

Mergers & Acquisitions seeks nominations for the fifth edition of the Most Influential Women in Mid-Market M&A. The deadline is Oct. 14. To be considered, candidates must be women who are outstanding dealmakers both inside and outside of their firms. Evidence of influence in the broader M&A industry is essential. When nominating a candidate, please explain how she outperforms her colleagues at her firm and in the industry. Please provide examples of deals she has led, initiatives she has launched and other instances that show evidence of her influence in the middle market. An important guide to what we're looking for can be found in the dealmakers we've honored in previous years. See profiles of, and Q&As with, past honorees here.

TO NOMINATE A CANDIDATE, CLICK HERE.

DEAL NEWS
Cobham Plc won landslide shareholder support for a 4 billion-pound ($5 billion) takeover, placing the future of the U.K. defense and aerospace company in the hands of U.S. private equity firm Advent International. The maker of in-flight refueling systems and communications gear for Airbus SE and Boeing Co. plans to leverage Advent’s U.S. ties to pick up contracts across the Atlantic. Read the full story by Bloomberg News: Cobham shareholders approve $5 Billion takeover by Advent.

The Timken Co. (NYSE: TKR) is acquiring Beka Lubrications, a supplier automatic lubrication systems, for approximately $165 million. The target serves the food and beverage, industrials and infrastructure sectors. "The acquisition of Beka expands our global leadership in the highly attractive automatic lubrication systems market sector, increases our geographic scale and market coverage in Europe and Asia," says CEO Richard Kyle.

Axalta Coating Systems Ltd. (NYSE: AXTA) is buying coatings manufacturer Capital Paints LLC. "With this acquisition, Axalta will expand its footprint in the Middle East and North Africa (MENA) region and add to our strong manufacturing base, paving the way for future business growth in the region," says vice president Sobers Sethi.

For more deal news, see Weekly Wrap: McDonald's, Swander Pace, Shopify.

For ongoing coverage of private equity fundraising, see PE fundraising scorecard: Caprock, LNC, Thoma Bravo.

FEATURED CONTENT
Bank M&A has been soaring, creating the perfect backdrop for Piper Jaffray’s announced acquisition of Sandler O’Neill & Partners LP. “There has been a lot of consolidation in the bank space,” Piper Jaffray CEO Chad Abraham told Mergers & Acquisitions. “But there are still 5,000 banks, and we expect the pace of consolidation to continue.” Piper Jaffray is determined to be the market leader in all the industries it does business in. The Minneapolis-based boutique investment bank currently dominates some of the sectors it serves, especially healthcare. With the acquisition of New York-based Sandler the renamed firm Piper Sandler will instantly become a leading investment bank in financial services, a sector Piper has sought to expand in for several years. For analysis of the deal, see Counting on bank M&A: Why Piper Jaffray bought Sandler O'Neill.

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 sellers' market. Read the story: 8 M&A advisors urge closing deals now, while economy stays strong.

The New York Yankees are in first place in the American League East division and have one of the best overall records in Major League Baseball. Alex Rodriguez is best known as the former 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 Leaguefullback Chris Gronkowski. Rodriguez talked about his life off the field at EisnerAmper’s 4th annual Alternative Investment Summit. Among the topics discussed: 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.

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.

EVENTS
ACG Boston and ACG Connecticut are hosting the 5th Annual ACG New England Fall Conference at Gurney's Newport Resort & Marina in Newport, Rhode Island Sept. 17-18.

Exponent Women is hosting a fall rooftop networking session at RSM in New York on Oct. 7.

M&A East is taking place at the Pennsylvania Convention Center in Philadelphia Oct. 22-23.

Third Annual Women in Alternative Investments Career Forum is taking place at the New York Hilton on Nov. 8.

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