PE Weekly: Food and Beverage, Infrastructure Lead Dealmaking
This week, the food & beverage and infrastructure sectors lead dealmaking, while private equity firms announce new funds
Despite talk of an M&A uptick in 2024, this week remained a slow one for dealmaking announcements. Still, investors showcased their interest in the food & beverage and infrastructure. Elsewhere, Bain Capital and Wynnchurch Capital each announced new funds, while M&A partners also stepped into the spotlight with new services designed to accelerate and streamline the expected M&A comeback.
Platform Investments
Fengate, Weathervane Acquire Saco Foods. Fengate Asset Management division Fengate Private Equity announced its partnership with Weathervane Investment Corp. to acquire Saco Foods Holdings, marking the first U.S. platform investment for Fengate Private Equity. Saco provides a range of shelf-stable food brands. It was sold by previous owner Benford Capital Partners, which first acquired the company in 2016.
Monomoy Backs Road Maintenance Business. EnviroTech Services, which distributes road surface products and road maintenance services, has been acquired by middle-market private equity firm Monomoy Capital Partners, a recent press release announced. EnviroTech’s service offering includes dust control, anti-icing and soil stabilization for public infrastructure, property management and oil and gas clients. Monomoy will support growth by optimizing internal systems and logistical operations, among other endeavors.
HGGC, WPCG Partner for Investment in RIA. Registered investment adviser (RIA) True North Advisors has been acquired by financial services holding company Wealth Partners Capital Group and middle-market private equity firm HGGC, according to a recent press release. WPCG and HGGC have made a minority investment in True North that will support the RIA’s targeted acquisition strategy.
Add-Ons
Investcorp- and Trilantic-Backed RoadSafe Makes Twelfth Acquisition. Infrastructure service provider RoadSafe Traffic Systems, backed by Investcorp and Trilantic North America, has announced its twelfth add-on acquisition. The company has acquired B.C. Cannon, a supplier of traffic control services and products for highway and utility customers. RoadSafe was acquired by Investcorp and Trilantic in 2021.
Strategics
BGL Facilitates Sale of J.A. Kirsch to Food Importer Atalanta. Investment bank Brown Gibbons Lang & Company, which focuses on the middle market, announced via press release that it has facilitated the successful sale of specialty food importer J.A. Kirsch to strategic acquirer Atalanta Corporation, the largest private food importer in North America. BGL served as the exclusive financial advisor to J.A. Kirsch via its Food & Beverage investment banking team.
Exits
Transom Capital, Angeleno Group Exit Locana to Strategic. Middle-market private equity firm Transom Capital and clean energy-focused private equity firm Angeleno Group have announced the exit of their portfolio company Locana, according to a recent press release. Locana provides software solutions for the geospatial technology market. It was acquired by global consulting, engineering and construction management company TRC Companies, the announcement said.
Blackstone Exits Luxury Hotel to Henderson Park. London-based private equity real estate manager Henderson Park has acquired a luxury hotel in Arizona from Blackstone, according to reports in Bloomberg. Blackstone struck the deal for $705 million, unnamed sources told the publication
Fundraising
Bain Capital Raises $1.15 Billion for PE Insurance Fund. Bain Capital Insurance, Bain Capital’s insurance investment arm, announced the close of its first private equity fund, Bain Capital Insurance Fund, L.P. The firm said it secured $1.15 billion in commitments, surpassing its initial target of $750 million. The fund will focus on middle-market investments in North America and Europe within the insurance sector, with particular focuses in corporate transformations, launching new insurance platforms and event-driven investments.
Wynnchurch Capital Raises $3.5 Billion for Fund VI. Middle-market private equity firm Wynnchurch Capital Partners has closed its sixth fund, securing $3.5 billion in capital commitments, an announcement said. Wynnchurch Capital Partners VI will continue the firm’s investment strategy of deploying sector expertise and taking a partnership approach to working with founders and operators.
Insights
Bass, Berry & Sims Eyes Regulators’ New Merger Guidelines. In a recent publication by the law firm, Bass, Berry & Sims published a notice reviewing new merger guidelines issued by the U.S. Department of Justice and Federal Trade Commission. Their 2023 Merger Guidelines, published in December, lower the standard at which market concentration raises antitrust concerns, the law firm noted, adding that investors’ roll-up acquisition strategies will also receive greater scrutiny. The firm noted, however, that the guidelines are not law.
GTCR Launching Capital Solutions Business. Private equity firm GTCR is launching a capital solutions business following the hiring of Silber Point Capital’s Jason Prager, according to Bloomberg reports. Prager has more than a decade of experience at Silver Point, a credit investment firm. GTCR is reportedly introducing complex financing solutions including convertible debt and structured equity.
The Contract Network Debuts with AI Dealmaking Solution. The Contract Network, an artificial intelligence-powered collaboration platform, has launched operations with a new solution to connect private companies, investors and their advisors. The company partnered with tech-enabled business solution provider Integreon for its first private markets use case, deploying its technology to facilitate non-disclosure agreements for M&A transactions in the middle market.
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.
