PE Weekly: Financial Services, Industrials Keep M&A Deals Flowing

Platform Investments

Court Square Capital Partners Acquires DCCM. Court Square Capital Partners, a middle-market private equity firm, announced its acquisition of DCCM. The company provides design, consulting and construction management services with a focus on public sector infrastructure across transportation, water, and power and utilities.

Edison Partners Provides $20M in Growth Funding for NPHub. NPHub, a digital platform to match nurse practitioner students and professionals with clinical rotation and job placements, received a $20 million growth equity investment from Edison Partners. A press release said NPHub will use the support to invest in its technology and develop new solutions for universities and employers, and expand into other services for healthcare professionals.

CenterOak Acquires NOW CFO. Private equity firm CenterOak Partners completed a majority recapitalization of NOW CFO, a provider of outsourced finance and accounting services to small and medium-sized businesses. CenterOak is the company’s first institutional investor, according to an announcement.

Stellex Carves out Durr Group’s Air and Noise Filtration Tech Business. Private equity firm Stellex Capital Management announced it reached an agreement to carve out the air and noise filtration business of Durr Group, a Germany-based mechanical and plant engineering firm. The firm said it plans to close the transaction in the fourth quarter of this year. The division designs and manufactures exhaust air purification technology and sound insulation systems, and will become an independent entity within Stellex’s portfolio.

Trinity Hunt Launches HVAC Distribution Platform. Private equity firm Trinity Hunt Partners has announced its majority investment in Blackhawk Supply and the subsequent launch of its HVAC distribution platform, according to a recent press release. Blackhawk distributes HVAC parts with a focus on MRO products.

Pritzker Private Capital Acquires Buckman. Pritzker Private Capital announced its acquisition of Buckman, an investor in specialty solutions for water treatment and industrial processes. The investment will support continued global expansion and investment in product innovation for the company, a press release said.

Brightstar Capital Takes PlayAGS Private. Brightstar Capital Partners, a private equity firm, has closed its acquisition of PlayAGS Inc., a gaming supplier of slot, table and interactive products. As a result of the transaction the company will be delisted from the New York Stock Exchange. Brightstar acquired the business for approximately $1.1 billion.

Harvest Partners Acquires the Learning Experience. Harvest Partners has acquired The Learning Experience, a provider of early childhood education. The firm acquired the business from its previous sponsor, Golden Gate Capital.

DASH, S41 Merge, Form SMRTR. DASH, an accounts payable automation company, and S4i Systems, a provider of compliance and content management solutions, have merged to form SMRTR. The combined business services manufacturing and food and beverage companies with automated and compliance solutions.

Neuberger Berman Backs Paradigm. Neuberger Berman Capital Solutions announced it acquired a stake in Paradigm, an accountable specialty care management organization specializing in people with complex injuries and diagnoses. Existing sponsors OMERS Private Equity and Summit Partners will maintain their stakes in the business, a press release said.

SK Capital to Carve Out LISI’s Medical Division. SK Capital Partners is in negotiations to acquire the medical division of LISI Group, according to an announcement made this week. The firm expects to close the acquisition of Lisi Medical in the second half of this year. The company produces high-precision metal components for medical device original equipment manufacturers, operating in the U.S. and France.

Add-Ons

Turnspire Capital’s Swanson Carves Out Off-Highway Business of TransAxle. Swanson Industries, a manufacturer, repairer and distributor of mining and related industrial equipment, has acquired the Off-Highway Business of TransAxle Holdings. The Off-Highway Business is a remanufacturer of transmissions, axles and other industrial products for off-highway verticals including hard rock mining, metals, aerospace and others. Swanson is a portfolio company of Turnspire Capital Partners.

Clearlake Capital’s PrimeSource Acquires Fortress Railing. PrimeSource Brands, a provider of branded building products and a portfolio company of Clearlake Capital Group, has acquired Fortress Railing Products. The business provides railing systems and marks PrimeSource’s ninth acquisition since partnering with Clearlake in 2020.

Strategics

Edward Jones Carves out Natixis IM’s Overlay Management Services. Edward Jones, a financial services firm, announced it reached a deal to acquire the Overlay Management Services capabilities of Natixis Investment Managers (Natixis IM). The transaction includes Edward Jones’ acquisition of select assets and an exclusive license for certain proprietary technology, with Natixis IM continuing as a direct-indexing provider to Edward Jones’ Unified Management Accounts offerings.

Exits

KKR Exits JB Pharma to Torrent. Global investment firm KKR has sold a controlling stake in J.B. Chemicals & Pharmaceuticals to India-based pharmaceutical company Torrent Pharma, which will merge with the business. JB Pharma also operates in India, with heavy presences in Russia and South Africa.

New Mountain Capital Exits Zep Inc. to Trulink. New Mountain Capital has exited Zep Inc., a manufacturer of maintenance and cleaning solutions for industrial, commercial and residential customers. The company was acquired by Trulink Capital Management, a middle-market private equity firm.

Partners Group Exits Remaining Stake in Aavas Financiers. Partners Group has exited its final stake in Aavas Financiers, a leader in affordable housing finance in India. CVC Capital Partners acquired the assets. Partners Group first invested in the business in 2016, and in 2018 listed the company on BSE and the National Stock Exchange of India.

Northlane Capital Exits The Difference Card. Northlane Capital Partners has sold The Difference Card, a provider of healthcare cost containment solutions for employers to reduce healthcare costs. Stone Point Capital has acquired the business, a press release said.

Odyssey Exits Technical Services to SGS. Odyssey Investment Partners has announced it reached an agreement to sell Applied Technical Services to strategic acquirer SGS for $1.325 billion. The company, a testing, inspection, calibration and forensic consulting solution provider, first partnered with Odyssey in 2020.

Insights

BlackRock Expands Private Credit Footprint with HPS. BlackRock has announced its acquisition of HPS Investment Partners, expanding its presence in the private credit markets. The investment integrates HPS’s capabilities into an integrated platform, Private Financing Solutions.

Calamos and Aksia Launch PE and Alternatives Fund. Alternatives manager Calamos and institutional alternatives and private markets manager Aksia have partnered to launch the Calamos Aksia Private Equity & Alternatives Fund. The fund opens up opportunities for investors to access private equity investments and will focus on small and middle-market co-investments and specialized secondaries.

Altaline Launches with Tech, Business and Financial Services Focus. Altaline Capital Management has launched as a private equity firm focused on the technology, business services and financial services industries, an announcement said this week. The firm, based in Los Angeles, was founded by former TA Associates, H.I.G. Capital and KKR professionals.

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.