PE Weekly: Flooring, Ceramics Turn Spotlight Towards Industrials and Manufacturing

Once again, industrials and manufacturing is leading M&A volume this week thanks to several transactions targeting flooring materials, ceramics, mining products and more. Elsewhere, a high-profile acquisition of a women’s wellness brand shines the spotlight on the consumer market, while multiple investments in the consulting space highlight investor opportunity in business services. Read more on the latest deals below.

Platform Investments and Acquisitions

One Equity Partners Backs Italian Ceramic Machinery Manufacturer. One Equity Partners, a middle-market private equity firm, has acquired a minority stake in Gruppo Siti B&T. The Italian manufacturer makes ceramic machinery and provides various services to ceramic manufacturers operating in the construction and building space.

Circumference Group Acquires Fast Slow Motion Consultancy. Investment platform Circumference Group has acquired Fast Flow Motion, a consulting firm helping business clients grow on the Salesforce and HubSpot platforms. The company said it will use Circumference Group’s backing to support continued growth. Financial terms of the acquisition were not disclosed.

L Catterton Acquires Women’s Health Brand Stripes Beauty. Stripes Beauty, a women’s beauty and wellness brand focused on menopause symptom solutions, and founded by actress Naomi Watts, has been acquired by investment firm L Catterton. The firm’s backing will support Stripes’ continued growth in the U.S. and internationally through team expansion, product innovation and customer acquisition.

Frazier Healthcare Partners Acquires BioMatrix. Frazier Healthcare Partners, an investment firm focused on the healthcare sector, announced its acquisition of BioMatrix Holdings. BioMatrix provides home-based infusion services with a focus on neurological diseases, immunology deficiencies and transplants, and blood disorders.

Add-Ons

FalconPoint’s JENNMAR Acquires Dumotech Industrial Products. JENNMAR, a provider of infrastructure products and portfolio company of FalconPoint Partners, has announced its latest add-on acquisition. The company acquired Quebec-based Dumotech Industrial Products, a hardrock mining product manufacturer and distributor. JENNMAR previously also acquired Australian Steel & Wire and G&R Gas Services.

Transom capital’s Galleher Acquires Virginia Tile Company. Floor covering distributor Galleher, backed by middle-market private equity firm Transom Capital Group, is acquiring Virginia Tile Company, according to a recent press release. Virginia Tile is a specialty distributor of tile and broadens Galleher’s presence in the Midwest market; Galleher is already the largest floor covering distributor in the Western U.S.

Rainier Partners’ SCI Flooring Acquires Carpetbaggers. SCI Flooring, a provider of soft and hard surface floor covering solutions, has made its second add-on acquisition as part of the Rainier Partners portfolio. The company acquired Carpetbaggers, a flooring installation service provider servicing the multifamily tenant turnover and new construction markets. The investment follows Rainier’s acquisition of United Carpet last year.

Renovus Capital’s ToxStrategies Acquires Clintrex Research. ToxStrategies, a scientific consulting firm backed by Renovus Capital partners, has acquired Clintrex Research Corporation. Clintrex provides scientific, clinical trial and regulatory support for pharmaceutical and biotech companies, targeting the development of new central nervous system disorder therapies. Renovus Capital acquired ToxStrategies in 2022.

GenNx360’s Pacteon Acquires Descon Integrated Conveyor Solutions. Middle-market private equity firm GenNx360 Capital Partners announced that its portfolio company, Pacteon Group, has acquired Descon Integrated Conveyor Solutions. Descon provides integrated conveyor systems for the food and beverage sector, and marks Pacteon’s fourth add-on acquisition.

Shoreline Equity’s Engelman’s Acquires Armands Baking Co. Engelman’s Baking Co., a wholesale bakery backed by Shoreline Equity Partners, has acquired Florida-based commercial bakery Armands Baking Company. The transaction was announced by investment banking firm Hyde Park Capital, which advised Armands on the deal. The acquisition allows Engelman’s to expand its geographic footprint in the Southeast.

Exits

Stellex Capital Exits CGMH to Strategic Buyer. Stellex Capital Management, a middle-market private equity firm, announced the sale of Continental Global Material Handling (CGMH) to Precision Pulley & Idler. CGMH designs and manufactures material handling conveyor systems. Stellex first acquired the company in a carve-out transaction from Komatsu Mining Corp in 2021.

Fundraising

Insights

EY-Parthenon Deal Barometer Predicts 20% Uptick in M&A Volume. A new report from EY-Parthenon forecasts an increase in M&A activity, including transactions led by private equity investors. The firm’s latest Deal Barometer expects M&A volume in the U.S. to increase by 20% in 2024, with PE deals expected to increase 16%. In the year’s first quarter, global M&A volume grew 36%, the report noted.

Cresset Partners Connects Investors to Middle Market Via NXT Capital. Wealth management and multi-family office platform Cresset Capital has announced that its private investment arm, Cresset Partners, is partnering with NXT Capital. The collaboration provides individuals and family offices on the Cresset platform to access lower middle-market investment opportunities via NXT Capital’s direct lending group, a press release said.

Midmarket Businesses Driving Global Economy: Mastercard Report. A recent report from Mastercard points to middle-market businesses as an important driver for economic growth around the globe. A recent whitepaper by the firm found middle-market companies generated 21% of commercial spending, equivalent to about $24.2 trillion in B2B spend, in 2022.

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.