M&A daily wrap: TransDigm, Cerberus, Deloitte. Cynosure Group, Apax
TransDigm Group Inc. (NYSE: TDG) has agreed to acquire aerospace parts maker Extant Components Group Holdings Inc. from Warburg Pincus for $525 million in cash. Melbourne, Florida-based Extant makes and repairs airplane equipment such as data recorders, weather monitors and cockpit displays that are used by both military and commercial aircrafts. The target expects to generate about $80 million in revenue for the 12 months that will end September, 30. "Extant has an unusual and attractive business model, with significant opportunities for growth," says TransDigm CEO Nicholas Howley. TransDigm recently acquired another aerospace parts company, Kirkhill from Esterline Technologies, for $50 million. Lazard Ltd. (NYSE: LAZ), Wells Fargo Securities (NYSE: WFC), Willkie Farr & Gallagher LLP and Eversheds Sutherland (US) LLP are advising Extant.
Family office Runnymede Investments purchased craft brewer Smuttynose Brewing Co. from Provident Bank. The Hampton, New Hampshire-based target, known for the Smuttynose brand and founded in 1994, has about $10 million in annual revenue, and has the capacity to produce up to 75,000 barrels a year. The deal also includes a restaurant next to the brewery. Financial terms were not disclosed.
Steel frame distributor L&W Supply, a subsidiary of ABC Supply, purchased rival Wight Bros. for undisclosed terms. Wight Bros. drywall and other exterior construction materials in the northern California market. ABC paid $670 million for L&W in 2016.
Cerberus Capital Management LP bought Cynanco Holding Corp. from Oaktree Capital Management. Cyanco, headquartered in Pearland, Texas, produces sodium cyanide for the silver and gold mining sectors. The target has operations in Nevada, Texas, Wyoming, Quebec and Mexico. Financial terms were not disclosed.
News Corp. (Nasdq: NWSA)-owned Dow Jones Risk & Compliance acquired Cerico from law firm Pinsent Masons and consulting firm Campbell Mash. Cerico's technology helps businesses assess risk, conduct due diligence on potential suppliers, clients and other third parties, in addition to tracking activity and approval processes. Financial terms were not disclosed. The deal follows Dow Jones' February 2017 purchase of RiskAverter.
Morgan Stanley Investment Management, a division of Morgan Stanley (NYSE: MS), bought commercial real estate credit firm Mesa West Capital. The Los Angeles-based target, which has more tha $5 billion in assets, invests capital in the real estate sector through first mortgage loans originations.
Private equity firms Water Street Healthcare Partners and JLL Partners bought Dohmen Life Science Services from the Dohmen Co. The Milwaukee-based target provides pharmaceutical and medical device companies outsourced services in the areas of patient support, compliance and technology. Financial terms were not disclosed.
Apax Partners agreed to acquire the remaining stake it does not already already own in Becton, Dickinson and Co.'s respiratory care business. Apax acquired a majority stake in the company, now called Vyaire Medical in 2016.
Oil and gas companies seem to be in an increasingly healthier financial position, showing signs that the industry is poised for an M&A rebound in 2018, says Deloitte & Touche partner Ray Ballotta. Read the full story here.
Salt Lake City-based private equity firm the Cynosure Group hired David Hunter as managing director and head of investor relations. Hunter was previously with Partners Group. Cynosure Group invests in businesses that have at least $5 million in Ebitda across the financial services, industrials, healthcare, and consumer and retail sectors.