PE Weekly: Investors Announce First Acquisitions of 2024

Investors are announcing their first M&A transactions of the year, and this week, technology-focused deals take center stage. IT consulting and cybersecurity saw activity from both private equity and strategic investors. Elsewhere, French food group Danone announced multiple brand exits to a private equity buyer. Review the latest deals below.

Platform Investments

Ara Partners Backs Renewable Fuels Logistics Infrastructure Business. Ara Partners, a private equity firm focused on investments in the industrial decarbonization market, announced it has acquired a majority stake in USD Clean Fuels. The company develops logistics infrastructure for the renewable fuels sector. The investment includes Ara’s acquisition of biofuels terminal West Colton Rail Terminal, the press release noted.

Heckens & Wood Acquires Managed IT Services Provider. Heckens & Wood Capital, a lower middle-market private equity firm, announced its acquisition of managed IT services provider FortifyIT. The company offers IT consulting across IT, cybersecurity and cloud-based services in the manufacturing, family office, marketing and other sectors. In a statement, Heckens & Wood cofounder and managing partner Thomas Heckens said the acquisition marks the first step for the firm in forming an integrated managed IT services platform.

Renovus Capital Backs Behavioral Therapy Business. Renovus Capital Partners, a lower middle-market private equity firm, said in a press release it has invested in Behavioral Framework, a provider of autism diagnostic services and applied behavior analysis (ABA) therapy for children. In a statement, Behavioral Framework CEO Kyle West said, “There is a critical need nationwide for autism diagnostics and ABA therapy,” adding that support from Renovus will allow the business to expand its reach.

Add-Ons

Gemspring’s Amplix Acquires Go2 Communications. Amplix, a provider of technology advisory services and software, and a portfolio company of private equity firm Gemspring Capital, has acquired Go2 Communications, according to a recent press release. Go2 Communications services enterprise and small business customers with technology and IT advisory services across a variety of industries.

Strategics

Cybersecurity Company SonicWall Acquires Banyan Security. Cybersecurity service provider SonicWall has announced its acquisition of Banyan Security, which provides security service edge (SSE) services to enterprise and small business customers. SonicWall President and CEO Bob Vankirk in a statement pointed to an evolving cybersecurity landscape that requires “more comprehensive and flexible approaches” to security. The company’s investment expands its portfolio to cloud cybersecurity, the press release noted.

Exits

Danone Exits Dairy Assets to Platinum Equity. Private equity firm Platinum Equity is set to acquire dairy assets from France-based food conglomerate Danone, according to Reuters reports. Danone is slated to exit brands Horizon Organic and Wallaby, a transaction the firm’s CEO, Antoine de Saint-Affrique, said will enable Danone to focus on health-focus brands. Financial terms of the transaction were not disclosed.

Fundraising

Former L Catterton Partner Raises $425M for Consumer Investments. Matt Leeds, a former partner at middle-market private equity firm L Catterton, has raised $425 million for his new private equity firm Forward Consumer Partners, according to a recent announcement. The firm will focus on the consumer sector with Forward Fund I.

Insights

Norlantic Capital Bridges PE Investors to U.S. Middle Market. Norlantic Capital has debuted its cross-border platform aiming to connect private equity investors to the U.S. middle market, according to a recent press release. The platform connects high net worth individuals, wealth managers and family offices from Europe and the U.S. access to private equity managers and access to investment opportunities in the U.S. middle market. Norlantic Capital was founded last year by Therald Sund Fongaard.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.