PE Weekly: The Services Landscape Continues its M&A Draw
From healthcare to energy storage, the services sector remains a top driver of M&A activity this week
Tech-enabled business services has been a popular M&A target for middle-market dealmakers for years. This week, investors showcase how popular the broader services segment is, with deals struck across healthcare services, energy storage services and emergency services, to name a few. Plus, a leading accounting firm strikes a high-profile deal, selling a stake to fuel an aggressive M&A strategy.
Platform Investments and Acquisitions
Baker Tilly Sells Majority Stake to Hellman & Friedman, Valeas. Investment firms Hellman & Friedman and Valeas have reportedly agreed to acquire a majority stake in accounting firm Baker Tilly US, reports in the Financial Times said. The transaction values Baker Tilly at more than $2 billion, which will be used to fund an “extremely aggressive” acquisition strategy, its chief executive Jeff Ferro said.
Peloton Equity Backs Tech-Enabled Healthcare Services Provider. Peloton Equity, a private equity firm focused on the healthcare sector, has invested in OnPoint Healthcare Partners, a tech-enabled services provider targeting the hospitals and medical groups, according to a press release. Powered by artificial intelligence, OnPoint aims to reduce physician burnout and streamline administrative workflows. Fort Maitland Capital also participated in the growth investment.
Add-Ons
Access Holdings’ WagWay Acquires PUPS Pet Club. Access Holdings, a middle-market investment firm, announced that its platform company WagWay, a pet wellness services business, has acquired PUPS Pet Club. PUPS provides pet boarding, daycare, grooming and training services. A press release said the acquisition will support PUPS’ expansion within Chicago and New York, and allow it to add new services fr pet owner clients.
Audax’s Chartis Acquires HealthScape Advisors. Chartis, a portfolio company of Audax Group that provides advisory consulting and software analytics services to healthcare organizations, has announced its acquisition of HealthScape Advisors. Based in Chicago, Healthscape Advisors is a healthcare payer consulting firm. Its acquisition supports Chartis’ expansion into the healthcare payer segment, an announcement said.
Strategics
Swell Energy Acquires Renu Energy Solutions. Swell Energy, an energy management and grid solutions provider, announced this week its acquisition of residential and commercial solar and energy storage solution provider Renu Energy Solutions. A press release said the acquisition combines two complementary sets of capabilities in the Virtual Power Plants segment, enhancing Swell’s existing VPP technology platform and broadening its geographic reach across the Southeast and mid-Atlantic.
Exits
Gryphon Investors to Exit HEPACO. Gryphon Investors, a middle-market private equity firm, announced this week it reached an agreement to sell HEPACO, an environmental and emergency services company. Gryphon first invested in the business in 2016, and since completed seven add-on acquisitions. Environmental and industrial service provider Clean Harbors will acquire the company in a deal valued at $400 million, the announcement said.
Fundraising
Trinity Hunt Raises $700 Million for Latest Fund. Private equity firm Trinity Hunt Partners announced the close of its latest fund with $700 million in capital commitments, according to a press release. Fund VII was oversubscribed and will support the firm’s buy-and-build investment strategy, focusing on the business services, healthcare services and consumer services segments.
Insights
Tech, Professional Services Remain Key PE Focus: Study. A new report from Cherry Bekaert reveals technology and professional services remained key investment focuses for private equity acquirers in 2023 in a challenging dealmaking environment. The firm’s latest Private Equity Industry Report found artificial intelligence as a particularly high-growth segment of the technology space for PE sponsors, while CPA, wealth management and consulting firms emerged as top business services niches.
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