PE Weekly: Tech-Enabled Consumer Services See M&A Activity

Technology-driven consumer services are having a moment with middle-market dealmakers this week as artificial intelligence drive-thru technology and Spanish language immersion education see M&A activity. Read more about the latest deals below.

Platform Investments

Pacific Avenue Closes KiddeFenwal Acquisition. Pacific Avenue Capital Partners, a private equity firm focused on carve-outs and special situations in the middle market, announced it has closed on its acquisition of KiddeFenwal, a designer and manufacturer of industrial and commercial fire suppression systems and safety controls. Backing from Pacific Avenue will support KiddeFenwal’s growth in the U.S. and globally through expanding its customer end base and accelerating product development.

Bain Capital Backs MRO Holdings. Aviation maintenance provider MRO Holdings has received strategic growth investment from Bain Capital, according to a recent press release. The minority investment will support MROH’s development and expansion of new initiatives.

Susquehanna Growth Invests in Tierra Encantada. Spanish immersion early education provider Tierra Encantada announced this week it received $38 million in growth investment from Susquehanna Growth Equity, a growth equity firm. The investment marks the business’s first institutional investment since its founding in 2013.

Edison Partners Backs AI Provider to Oil and Gas Sector. Edison Partners, a growth equity firm, announced its investment in Seismos, an AI-powered acoustic sensing provider to the oil and gas sector. The investment will enhance Seismos’ predictive analytics capabilities.

Levine Leichtman Backs Improve International. Private equity firm Levine Leichtman Capital Partners announced in a press release it has invested in Improve International Group, a veterinary postgraduate training and education provider. The investment will help the company scale through organic initiatives as well as strategic M&A.

Add-Ons

Blackford’s Davalor Mold Company Makes First Add-on Acquisition. Davalor Mold Company has made its first add-on acquisition as a portfolio company of lower middle-market private equity firm Blackford Capital, according to a press release. Davalor acquired Industrial Molding Corporation, an injection molded plastic products manufacturer. The transaction carved out Industrial Molding Corporation from its previous parent company NN, Inc.

Enlightened Hospitality’s ConverseNow Acquires Valyant AI. ConverseNow, a voice AI technology platform backed by private equity firm Enlightened Hospitality Investments, has acquired Valyant AI, a restaurant drive-thru automation technology, according to a press release sent to Middle Market Growth. The investment combines the two companies’ drive-thru AI technology that services patrons by taking their order and more. Enlightened Hospitality Investments first backed ConverseNow in 2022.

New Harbor’s Access Infusion Completes Big Sky I.V. Care Acquisition. New Harbor Capital announced this week that portfolio. Company Access Infusion Care has completed its acquisition of Superior Specialty Pharmacy, LLC and Big Sky Pharmacy Management Inc. dba Big Sky I.V. Care. The company provides home and specialty infusion services across a range of infusion therapies. The investment marks the first add-on acquisition for Access Infusion Care.

Blue Point Capital’s National Safety Apparel Acquires Tri-Star Glove. Blue Point Capital Partners announced that its portfolio company National Safety Apparel has acquired Tri-Star Glove, a manufacturer of personal protective apparel. The investment marks NSA’s 14^th add-on acquisition since 2012, but its first since partnering with Blue Point earlier this year, a press release noted.

Strategics

TRAKAmerica Acquires Business Process Outsourcing Company KnovaOne. Accounts receivable management company TRAKAmerica announced it has acquired KnovaOne, a business process outsourcing company with legal and accounts receivable management expertise. The investment expands TRAKAmerica’s service offering across the legal portfolio management and legal process outsourcing markets, a press release said.

Fundraising

Monomoy Capital Raises $2.25 Billion. Monomoy Capital Partners announced the close of Fund V with $2.25 billion capital commitments, surpassing its initial target of $1.6 billion. The middle-market private investment firm will focus Fund V on manufacturing, distribution and business services.

Trulink Raises $875 Million for Inaugural Fund. Middle-market private equity firm Trulink Capital Management has closed its inaugural fund with $875 million in capital commitments. The firm focuses on tech-enabled services and the industrials sector.

Hark Capital Raises $645 Million for Fund IV. Hark Capital, a capital provider to middle-market sponsors, announced this week it raised $645 million in capital commitments, exceeding its $500 million target. Hark provides flexible Net Asset Value credit solutions to lower middle-market private equity and growth funds, their portfolio companies and their management companies.

Insights

Plocamium Holdings Adds Supply Chain Services for Portcos. Private equity and services firm Plocamium Holdings announced the introduction of new services for portfolio companies to support their supply chains and drive value. The firm targets businesses in North America, the GCC and Asia. New services will support businesses in the healthcare technology and services, defense technology, and containers and packaging to diversify supply sources and leverage technology to boost supply chain efficiency.

Midmarket Business performance Remains Consistent: Golub Capital. A new report. From Golub Capital reveals middle-market businesses in the U.S. remain resilient. The firm’s Golub Capital Altman Index saw earnings grow 11% in the first two months of the year, the private equity-backed businesses revealing “solid revenue and earnings growth.”

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.