PE Weekly: More Exits, Consumer Investments Show Positive Signs for M&A

Yet again, the industrials sector continues to grab private equity’s attention as a safe bet in a market that remains frustratingly uncertain. As the new year approaches, however, signs of an improved M&A landscape continue to emerge. In addition to a more active exit environment, deals this week spanned some consumer spaces that have largely been shunned by investors in recent years. Read more of the latest deals below.

Platform Investments

Vector Capital to Take Bigtincan Holdings Private. Vector Capital Management, a private equity firm focused on the technology sector, announced it reached an agreement to take private Bigtincan Holdings Limited. Bigtincan provides sales enablement software and AI solutions to enterprise customers. The company is currently listed on the Australian Stock Exchange.

Kester Capital Acquires Bionical Emas’ EMAS Pharma Division. Following a strategic review, Bionical Emas, a global early access programs and clinical trial supply group, has decided to divest its EMAS Pharma division to Kester Capital. EMAS Pharma is a full-service clinical research organization servicing the pharmaceutical and biotech sectors. Kester Capital is a U.K.-based lower middle-market private equity firm.

Argosy Private Equity Acquires Heavy Equipment Colleges of America. Heavy Equipment Colleges of America, which provides heavy equipment and crane operator training, has been acquired by Argosy Private Equity, a lower middle-market private equity firm. A recent press release said the investment comes amid a growing labor gap in the essential commercial trades, which Argosy will help to address through the transaction.

Novacap Backs Property and Casualty Insurance Firm. Private equity firm Novacap has invested in Montreal-based Consilium Insurance, a property and casualty insurance firm. The investment will look to accelerate Consilium’s growth, expand its geographic presence in Canada and establish a damage insurance brokerage platform, a press release noted.

New Heritage Capital Invests in JA Moody. JA Moody, a supplier of fluid control valves and other parts to the U.S. Navy and commercial marine sector, has secured an investment from private equity firm New Heritage Capital. New Heritage structured its investment in the company using its Private IPO strategy, an announcement noted.

Clarion Capital Acquires Arthur Murray International. Investment manager Clarion Capital Partners acquired Arthur Murray International, an international franchisor of dance studios, an announcement said. The investment was made in partnership with ballroom dancer Gary Edwards.

Add-Ons

Riata Capital’s Salon Republic Acquires Mosaic. Salon Republic, an operator of company-owned salon studios, has announced its acquisition of Mosaic Salons + Spas, a press release said. The investment broadens Salon Republic’s geographic presence on the West Coast and in the Pacific Northwest. Salon Republic is backed by private equity firm Riata Capital Group.

FalconPoint’s Jennmar Carves Out Mine Sealant Product Business. Jennmar, a provider of infrastructure products and services to the civil, solar, mining and construction sectors, has announced its acquisition of a line of mine sealant products from Wright-Mix Material Solutions’ Pyro-Chem division. The investment will see Jennmar’s Jennchem subsidiary integrate Pyro-Chem’s line of mine sealant products to its own portfolio. Jennmar is backed by private equity firm FalconPoint Partners.

Thompson Street’s OpenClinica Acquires BuildClinica. OpenClinica, a provider of eClinical software solutions to support clinical trials, has acquired health technology company BuildClinical, according to a recent press release. OpenClinica is backed by Thompson Street Capital Partners, a middle-market private equity firm focused on life sciences and healthcare, software and technology, and business and consumer products and services.

Gryphon’s TTDS Acquires Applied Thermal Systems. Thermal Technology Distribution Solutions (TTDS), an industrial temperature management products distributor backed by Gryphon Investors, has acquired Applied Thermal Systems. The investment broadens TTDS’s geographic reach in the Upper Midwest, an announcement noted. Applied Thermal Systems distributes electric heaters and other thermal management products to manufacturers.

TruArc Merges DMI Personal Care with Trademark Cosmetics. Middle-market private equity firm TruArc Partners announced its investment in DMI Personal care and its merger with current portfolio company Trademark Cosmetics. DMI is a product development and manufacturing partner for beauty and personal care brands. The investment supports TruArc’s focus on building a beauty and personal care DNMO platform.

May River’s RLE Technologies Acquires NDSL Group. May River Capital has announced the acquisition of NDSL Group, the manufacturer of Cellwatch and battery monitoring solutions for data centers and the telecom markets. The investment will see NDSL merge with May River portfolio company RLE Technologies to form a new platform, Parameter, which provides the process and facility management industries with real-time insights into various operations.

Exits

Wynnchurch Capital Exits Gyptech. Middle-market private equity firm Wynnchurch Capital announced the sale of Gypsum Technologies, also known as Gyptech. The company designs, engineers and fabricates new and replacement product lines for gypsum wallboard and asphalt-shingle facilities.

BV Investment Partners Exits Frontline to Broad Sky. Middle-market private equity firm BV Investment Partners announced the sale of Frontline Managed Services to PE firm Broad Sky Partners this week. Frontline Managed Services provides managed services to the legal industry, including IT services and revenue cycle management solutions.

Fundraising

J.F. Lehman & Company Raises $2.2 Billion. Middle-market private equity firm J.F. Lehman & Company announced the close of its latest fund, JFL Equity Investors VI. The firm secured $2.23 billion in capital commitments, the largest fundraise ever for the firm, which had initially targeted $1.6 billion for the fund. The firm focuses on the aerospace, defense, maritime, government and environmental sectors.

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