PE Weekly: Investors Showcase the Diversity of Business Services

This week, middle-market dealmakers turned their attention to the B2B services space, showcasing the diversity of the tech-enable business services landscape. Acquisition targets include businesses in the infrastructure maintenance, cyber risk management and clinical trial enrollment sectors, among others. Plus, several consumer-focused deals entered the fold. Review the latest M&A news below.

Platform Investments

MidOcean Partners Acquires SI Solutions. MidOcean Partners, an alternative asset manager specializing in middle-market private equity, announced its acquisition of SI Solutions this week. SI Solutions provides engineering, testing, inspection and other services and solutions for the power and critical infrastructure sectors. The firm plans to support SI in strengthening its relationships with existing customers and expanding its market position. The deal marks MidOcean’s fourth engineering and critical infrastructure investment.

Falfurrias Management Backs Snak King. Falfurrias Management Partners, a middle-market private equity firm, has announced its investment in food product manufacturer Snak King, according to a recent press release. Snak King manufactures a variety of food products including tortilla chips, potato chips and other snacks. Falfurrias brings expanded food expertise to Snak King, the firm noted.

Topspin Consumer Partners Backs Carpe. Consumer-focused Topspin Consumer Partners has announced its investment in Carpe, a business providing sweat control products. The private equity firm pointed to Carpe’s track record of growth, having expanded its direct-to-consumer e-commerce business into brick-and-mortar retail sales. The company’s founders will continue to lead the business, a press release said.

Falfurrias Management Invests in Jumo Health. Falfurrias Management Partners, a private equity firm focused on the middle market, has invested in Jumo Health, a recent press release said. Jump develops educational solutions to accelerate clinical trial enrollment and increase participant retention through increased financial literacy. Falfurrias’ backing will help Jump expand its core capabilities and strengthen data-driven solutions.

Add-ons

Clearlake Capital’s PrimeSource Brands Acquires Cobra Anchors. PrimeSource Brands is expanding its portfolio of residential building product brands with its acquisition of Cobra Anchors, according to a recent press release. Based in Canada, Cobra Anchors provides various masonry anchors to the residential building industry. PrimeSource is backed by investment firm Clearlake Capital Group.

SK Capital’s Deltech Carves DVB Production Unit Out of DuPont. Chemical conglomerate DuPont is discontinuing production of Divinylbenzene (DVB), leading to the sale of its DVB production unit to SK Capital Partners-backed Deltech Holdings. A press release said Deltech, which produces specialty aromatic monomers and acrylic resins for the construction, composites and other end-markets, will also acquire IP and other assets from DuPont to strengthen its DVB production capabilities.

Atlantic Street’s CyberGuard Advantage Acquires Control Gap. Cybersecurity solutions company CyberGuard Advantage is expanding its presence in IT security risk and compliance through its acquisition of Control Gap, according to a recent press release. Backed by lower middle-market private equity firm Atlantic Street Capital, CyberGuard says the investment also broadens its footprint in Canada, where Control Gap is based.

HCI Equity’s LawnPRO Acquires Fairway Lawn & Tree Service. LawnPRO, a residential lawncare platform backed by HCI Equity Partners, announced its acquisition of Fairway Lawn & Tree Service, marking the sixth add-on acquisition for the company. A press release said Fairway provides lawn care treatment and tree solutions for both residential and commercial customers. The transaction expands LawnPRO’s presence into New England.

MidOcean’s QualiTech Acquires Ellison Bakery. QualiTech, a food ingredient manufacturer backed by middle-market private equity investor MidOcean Partners, has acquired food manufacturer Ellison Bakery, according to a recent press release. Ellison develops and manufactures baked ingredients for retail, industrial and foodservice customers, including cookies, snack bars and more. MidOcean first invested in QualiTech in 2023.

Exits

RF Investment Exits SPATCO Energy, Invests in Continuation Fund. Lower-middle market investment firm RF Investment Partners announced the successful exit of SPATCO Energy Solutions, a provider of fueling infrastructure sales, service and maintenance solutions. Following the exit, Kian Capital Partners and Apogem Capital led a $230 million continuation fund for SPATCO, in which RF also invested, according to a press release. RF first invested in SPATCO in 2019 alongside Kian Capital Partners. In a subsequent announcement provided to Middle Market Growth, Kian Capital and SPATCO announced SPACTO’s acquisition of Blue1 Energy Equipment, a provider of storage and dispensing equipment.

Audax Exits United Urology Group. Audax Private Equity, which focuses on the middle market, announced it reached an agreement to exit United Urology Group to OneOncology, which operates a network of urology practices and is backed by TPG and AmerisourceBergen Corporation. Audax first acquired United Urology in 2016, according to a press release.

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.