M&A daily wrap: Thoma Bravo, Ceco, Kohlberg, Cerberus Capital
Thoma Bravo has acquired a majority stake in Nintex from TA Associates. The deal comes as more businesses look to automate workflow processes. Nintex helps business professionals automate and optimize workflows from enterprise software tools they already use. "Solutions like Nintex have continued to become increasingly critical as more businesses initiate digital transformation and intelligent process automation strategies," says Thoma Bravo partner Hudson Smith. Bellevue, Washington-based Nintex serves the banking, insurance, healthcare and goverment sectors. Bank of America Merrill Lynch and Wilson Sonsini Goodrich & Rosati advised Nintex. Kirkland & Ellis represented Thoma Bravo, which received financing from TPG Sixth Street Partners and Wells Fargo Capital Finance. TA retained a minority stake in the target. Financial terms were not disclosed. Thoma Bravo has been busy. In March, Thoma Bravo-backed data and analytics software provider Infogix bought rival Lavastorm.
Ceco Environmental Corp. (Nasdaq: CECE) sold Strobic to Dominus Capital-backed Cincinnati Fan and Ventilator Co. The target provides exhaust systems for laboratory fume hoods that are used in universities and healthcare facilities. Ceco is divesting the business so the company can focus on its air quality and fluid-handling divisions. Dominus is a New York middle-market private equity firm that focuses on the business services, consumer products and industrials sectors. Strategic buyers are streamlining their portfolios through M&A to concentrate on fast-growing business lines. For example, Tyson Foods Inc. (NYSE: TSN) hired Goldman Sachs Group Inc. (NYSE: GS) to seek buyers for its pizza crust business, which is sold under the Bonici brand. Tyson will concentrate on its proteins division instead.
Kohlberg & Co. purchased U.S. Retirement & Benefits Partners from Centre Partners. The target provides benefits and retirement services to the education and government markets along with mid-sized businesses. Under Centre's ownership, USRBP completed more than 40 acquisitions. William Blair and Dechert advised the sellers. Financial terms were not disclosed. Kohlberg, based in Mt. Kisco, New York, typically invests up to $300 million in businesses across the manufacturing, consumer, business services, healthcare and financial services sectors. The firm recently sold a minority stake to the Blackstone Group LP (NYSE: BX).
Motherson Sumi Systems Ltd. agreed to acquire Reydel Automotive Group, a maker of instrument modules and door panels for vehicles, from Cerberus Capital Management for $201 million. Evercore Inc. (NYSE: EVR) and Linklaters are advising the sellers. Latham & Watkins and Norton Rose are representing Motherson.
PNC Riverarch Capital bought Tranzonic Cos. from Silver Oak Services Partners for undisclosed terms. Cleveland-based Tranzonic is a supplier of cleaning and safety products, including toilet seat covers, gloves and air care products. Silver Oak invested in the company in 2013. BB&T Capital and Locke Lord advised the sellers.
See which private equity firms are raising funds, including One Equity Partners and KKR, in our weekly PE fundraising scorecard.
U.S. private equity buyout funds with less than $500 million under management set record highs in 2017 for total deal value, add-on deal value and deal exit value, according to a recent report by law firm Akerman. Read the full story here.
Read full coverage of the 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.