M&A daily wrap: Daseke, Huron Capital, Carlyle, Coinbase
Truck operator Daseke Inc. (Nasdaq: DSKE) has agreed to acquire energy transportation company Aveda for about $102 million in enterprise value. The target provides services and equipment required for the exploration, development and production of petroleum resources in North America. Calgary, Alberta-based Aveda has 430 tractors, 660 trailers and 200 light duty trucks, and generated about $158 million in revenue in 2017. "This transaction is a strong fit for our company and shareholders as Aveda has demonstrated the ability to outpace their market's growth rate, and we expect joining Daseke will enable them to fuel their continued outperformance," says Daseke CEO Don Daseke. Addison, Texas-based Daseke operates more than 5,200 tractors and 11,000 flatbed trucks and trailers. Customers include Boeing Co. (NYSE: BA), Caterpillar Inc. (NYSE: CAT) and General Electric Co. (NYSE: GE). Daseke has been an active acquirer, wielding M&A to expand geographically and to diversify services. In 2017, Daseke acquired Tennessee Steel Haulers & Co., the Roadmaster Group and Moore Freight Service. In that same year, Daseke purchased R&R Trucking, competitors the Schilli Cos., Big Freight Systems and the Steelman Cos. Transportation and logistics has seen a lot of deal activity, with Quad-C investing in transportation management provider AIT Worldwide Logsitics.
Middle-market PE firms are displaying increased interest in taking minority stakes in portfolio companies. In 2017, the Riverside Co. closed the $418 million Riverside Strategic Capital Fund (RSCF). Huron Capital, which won the M&A Mid-Market Award for 2017 Seller of the Year, recently joined the fray. We asked Huron managing partner Brian Demkowicz about the firm's $141 million Huron Flex Equity Fund, the firm's inaugural non-control fund. "The expansion demonstrates our focus on remaining a strategic solution provider to our limited partners and working with them to identify attractive entry points in the lower middle market," Demkowicz says. Read the full story here.
Read full coverage of Mergers & Acquisitions' 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.
Coinbase, a venture capital-backed startup that provides an online exchange for digital currencies, including Bitcoin, Ethereum, and Litecoin has bought Cipher Browser. As part of the deal, Cipher Browser founder Peter Jihoon Kim becomes head of engineering for Toshi, the mobile browser Coinbase launched for navigating the Ethereum network. The deal marks the first acquisition since Coinbase hired Emilie Choi as vice president to lead corporate development, business development and business operations. Choi spent eight years at LinkedIn Corp., where she oversaw 40 transactions in her role as vice president of corporate development. Choi is expected to lead a wave of acquisitions at Coinbase, which is backed by Andreessen Horowitz, Union Square Ventures and Ribbit Capital, SV Angel and Funders Club.
Boston Scientific Corp. (NYSE: BSX) has purchased nVision Medical Corp., a medical device manufacturer that is used to potentially treat ovarian cancer, for up to $275 million. Boston Scientific is paying up $150 million upfront and up to another $125 million in milestone achievements. "We estimate the near-term market opportunity to be $500 million with the potential to grow to $2 billion as this device is used by more gynecologists to help even more women," says Dave Pierce, executive vice president and president, MedSurg, Boston Scientific.
Viking owner Middleby Corp. (Nasdaq: MIDD) has acquired A.C. Beverage Inc. subsidiary JoeTap, a provider of nitro and cold brew coffee dispensing equipment for the commercial foodservice industry. Financial terms were not disclosed. Middleby has been busy expanding its services through acquisitions. The company recently announced plans to buy steam cooking equipment maker Firex Srl.
Blackstone Group LP (NYSE: BX) has agreed to buy the Center for Autism and Related Disorders LLC, a provider of autism behavioral health services for children and adults. The target's management team is also investing alongside Blackstone. Kirkland & Ellis and Cain Brothers are advising Blackstone. Nevers Palazzo Packard Wildermuth & Wynner PC and Berkery Noyes are advising the sellers.
Shorehill Capital-backed Power Grid Components has bought Instrument Transformer Equipment Corp. The target is a manufacturer of dry molded and oil-filled instrument transformers. Perkins Coie advised Power Grid and Stephens advised the target.
Polaris Alpha has a acquired Fourth Dimension Engineering, a provider of mission-critical cyber services, including electrical and mechanical design and development. Financial terms were not disclosed.
Ares Management LP and ARM Energy Holding LLC have formed a partnership to develop Salt Creek Midstream LLC in the Delaware Basin. ARM Midstream Management LLC, a subsidiary of ARM Energy, will serve as operator of the project. Kirkland & Ellis represented Salt Creek.
As Americans begin to plan road trips and other summer vacations, car deals are thriving, especially in the nascent self-driving tech sector. Intel bought Israel's Mobileye for about $15 billion. Meanwhile, in a much smaller deal, Delphi bought NuTonomy. As the industry readies for autonomous driving, there's a big wave of consolidation going on among makers of traditional car parts, with several new deals announced this week. Investcorp acquired KSI Trading Corp., a supplier of aftermarket auto body parts that services 10,000 collision repair shop customers across 25 locations in 14 states. Woodward Inc. bought diesel parts maker L'Orange from Rolls-Royce. And Canadian automotive retailer AutoCanada has acquired 15 stores from the Grossinger Auto Group. Akerman represented the seller. Other car part buyers include CenterOakPartners, Clearlake Capital Group and Wabash National. Meanwhile, Carl Icahn is among the sellers. Check out our slideshow on the rush of activity.
Taylor Boswell was hired by the Carlyle Group LP's (Nasdaq: CG) credit opportunities team in New York as a managing director. Carlyle's credit opportunities group invests primarily in highly-structured and privately-negotiated capital through secured loans, senior subordinated debt, mezzanine debt, convertible notes as well as common equity. Boswell was most recently with Apollo Global Management LLC (NYSE: APO).
Tony Armand has joined Norwest Equity Partners as an operating partner to help the firm expand its consumer, sports and outdoor investment opportunities. Armand has had a previous working relationship with Norwest through portfolio management, including serving as CEO of Shock Doctor Sports. Armand most recently served as CEO of United Sports brands.
Björn Åkerlund, Gunnar Brundin and John Hamilton have joined Lincoln International as managing directors in Stockholm. They focus on M&A in the business services, technology, consumer and industrial sectors, and were mostly recently with advisory firm Nordhaven.
David Schwartz has joined Orrick as a partner in New York. Previously with Hughes Hubbard & Reed, Schwartz focuses on M&A in the technology and life sciences sectors.
For more new hires, promotions and other dealmaker career news, including Alvarez & Marsal's hiring Debra Richman as healthcare managing director and Karin Kovacic's joining the origination team as a managing director at Monroe Capital, read People Moves.
Catch up on recent transactions, including deals made by Francisco Partners and Tenneco, in the weekly wrap.
See which private equity firms are raising funds, such as Apollo Accord, in our weekly PE fundraising scorecard.