PE Weekly: Tech-Enabled Services Drive Dealmaking Optimism

Platform acquisitions seem to be rebounding and private equity firms continue to raise funds this week, signaling further M&A optimism to close out the year and step into 2025 ready for dealmaking. Lately, tech-enabled business services has been a popular target, with investors focusing on spend management, media analytics, class action technology and more. Review the latest transactions, fundraising and other news in middle-market M&A below.

Platform Investments

LaSalle Capital Backs Cascade Coffee. LaSalle Capital, a lower middle-market private equity firm focused on the food and beverage space, has acquired Cascade Coffee, a coffee product manufacturer and supplier. Cascade supports customers with an array of packaging solutions and product flavors, a press release noted.

VSS Capital Acquires Treya Partners. VSS Capital Partners, a healthcare, education and business services-focused private equity firm, has acquired Treya Partners, a management consulting firm. Treya specializes in strategic sourcing and spend management for its middle-market PE-backed clients, a press release noted. VSS Capital pointed to organic and inorganic growth opportunities for the business as the PE ecosystem evolves.

Renovus Capital Takes Majority Stake in Angeion Group. Private equity firm Renovus Capital partners has acquired a majority stake in Angeion Group, a provider of class action case management solutions. Backing from Renovus will support Angeion’s efforts to expand its management, client service and delivery teams, as well as to invest in its proprietary class action technology solutions.

Bain Capital Backs Cuadrilla Capital’s Chartbeat. Bain Capital’s Private Credit Group has made a strategic growth investment in Chartbeat, a media software platform backed by enterprise software investment firm Cuadrilla Capital. The transaction sees Bain Capital joining Cuadrilla as an institutional investor of the business, which provides audience engagement and content analytics solutions for media organizers.

NewSpring Acquires Radar Systems Business C Speed. NewSpring Holdings, the private equity strategy of NewSpring, has announced its acquisition of C Speed, a provider of radar systems for civilian and military applications. The investment creates NewSpring’s newest platform company under its Federal Platform group of businesses, which focuses on U.S. government services.

Add-ons

Godspeed Capital’s ICE USA Acquires Engineering Business. ICE USA, a transportation-focused engineering and consulting service provider backed by lower middle-market private equity firm Godspeed Capital Management, has acquired Robert G. Campbell & Associates (RGC&A). The business is a full-service consulting and engineering business specializing in public infrastructure development, and expands ICE USA’s presence in the Tennessee market.

Peak Rock’s HuFriedyGroup Acquires SS White Dental. HuFriedyGroup, a dental product manufacturer, has acquired SS White Dental, a manufacturer of carbide and diamond burs and other instruments for the dental industry. HuFriedyGroup is a portfolio company of middle-market private equity firm Peak Rock Capital.

Ardian-Backed HR Path Acquires IN-RGY. HR Path, an HR consulting provider backed by investment firm Adrian, has announced its acquisition of IN-RGY. The business broadens HR Path’s HR digital transformation consulting capabilities and expands its presence in Canada. HR Path recently secured nearly $550 million in funding from Ardian, a press release noted.

Transom Capital Forms Artivo Surfaces Platform. Transom Capital Group, a middle-market private equity firm, announced the formation of its Artivo Surfaces platform in an announcement sent to Middle Market Growth this week. The platform operates as a flooring company and was formed following the firm’s acquisitions of Virginia Tile and Galleher; Artivo will serve as the parent company for both brands. The platform also includes Transom’s previous acquisition of Trinity Hardwood Flooring.

HCI Equity’s ACR Acquires Foodservice Supplier Mat-Pac. Mat-Pac, a supplier of paper, plastic and other packaging solutions for the foodservice and janitorial sectors, has been acquired by ACR, a foodservice supplier, according to a press release. ACR is backed by lower middle-market private equity firm HCI Equity partners. The investment marks ACR’s tenth add-on acquisition, the announcement noted.

Kian-Backed SPATCO Makes Two Acquisitions. SPATCO Energy Solutions, an infrastructure services provider for the energy sector, has announced two acquisitions. The company acquired Hobby Electric and UST Services Corporation, according to a press release. The investments mark the second and third add-on acquisitions for SPATCO, which is backed by Kian Capital Partners.

Strategics

ProductLife Boosts Drug Development Capabilities with IntiQuan. Life sciences company ProductLife Group, headquartered in France, has announced its acquisition of IntiQuan, according to a press release. InquQuan is a Swiss business specializing in biopharmaceutical services, including statistical modeling and simulation solutions. The investment expands ProductLife’s pharmacometrics solutions to customers.

Colateral Acquires Retail Media Solution Provider Turbyne. Retail marketing platform Colateral, based in the U.K., announced its acquisition of Turbyne, a U.S.-based provider of omnichannel retail media capabilities. In its announcement, Colateral said the investment will “transform how retailers compete with Amazon for retail media investment,” with the company integrating Turbyne capabilities within its Advantage Solutions offering.

Exits

McDermott Exits CB&I Storage Business to Consortium of Investors. Energy-focused engineering and construction solutions conglomerate McDermott International has announced a deal to exit its CB&I storage solutions business to a consortium of buyers, according to a press release. The acquirers are led by investment firm Mason Capital Management, with support from IES Holdings, Nut Tree Capital Management, 683 Capital Management, First Pacific Advisors and others. The transaction was made for $475 million and is expected to close in the year’s fourth quarter.

Fundraising

Shore Capital Raises Nearly $2 Billion Across Three Funds. Shore Capital Partners, a lower middle-market private equity firm, has announced the close of its inaugural Healthcare Advantage Fund, its second Business Services Partners Fund and its first Shore Search Partners Fund. Collectively, the funds have secured $1.9 billion in capital commitments. The firm’s Search Fund with focus on acquisition opportunities among microcap companies, publicly-listed businesses with a market capitalization of between $50 million and $300 million.

Renovus Capital Closes $875 Million Fund. Renovus Capital Partners, a private equity firm based in the Philadelphia area, announced the close of its fourth private equity fund. Renovus Capital Partners IV Core Buyout secured $875 million in capital commitments, a press release said. The firm focuses on the knowledge and talent sectors including education, healthcare services, technology services and professional services.

Insights

Apollo Capital Raises Concerns Over Highwire’s Take-Private of SPAR Group. Apollo Technology Capital issued a recent press release raising concerns over the proposed take-private acquisition of SPAR Group by Highwire Capital, a middle-market private equity firm. Apollo Capital said its chairman and CEO, who is a stakeholder of SPAR, will vote against the transaction. In its announcement, Apollo Capital pointed to “serious questions about the credibility” of Highwire’s financing and its ability to close the deal. Highwire first announced plans to acquire SPAR in September.

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.