PE Weekly: Industrials Services Fuel Post-Holiday M&A Announcements
Plus, signs that exits are making a comeback emerge
The industrials market is fueling a post-holiday M&A announcement spree this week, with several transactions targeting the industrials and manufacturing services space. Plus, signs that exits are finally making a comeback have emerged. Review the latest deals and announcements below.
Platform Investments
AIP Takes PPG’s Architectural Coatings Business Private. The architectural coatings business of PPG, a publicly listed paint and coating manufacturing company, has been sold to industrials investor American Industrial Partners (AIP), according to a recent press release. PPG has divested the U.S. and Canada operations of the business, which represented about $2 billion of the company’s total net sales in 2023.
Berkshire Partners Backs RJW Logistics Group. RJW Logistics Group, a provider of retail logistics solutions for the consumer packaged goods industry, has secured a strategic investment from private equity firm Berkshire Partners. The company plans to use the investment to enhance its customer service, fuel innovation and broaden its geographic footprint.
Sojourner Consumer Partners Invests in Hawaii Coffee Company. Soujourner Consumer Partners, a private equity firm focused on the consumer packaged goods sector, has invested in Hawaii Coffee Company, according to a press release this week. The investment was made in partnership with Anderson Holdings and forms the SoJoe Coffee Platform, which will focus on acquiring ready-to-drink coffee companies in North America.
KPS Capital Carves Out INEOS Composites. KPS Capital Partners announced this week it reached an agreement to acquire the composites business unit of INEOS Enterprises for an estimated $1.79 billion. The firm expects the transaction to close in the first half of 2025. The INEOS Composites business manufactures unsaturated polyester resins, vinyl ester resins and gelcoats used in plastic composite production.
Add-Ons
Renovus’s SolomonEdwards Acquires Steele Consulting. Professional services firm SolomonEdwards, which offers operational and technology consulting, announced its acquisition of tax consulting firm Steele Consulting this week. The transaction connects SolomonEdwards clients access to an expanded suite of tax support services. Earlier this quarter SolomonEwards acquired Dominion Advisory Group. SolomonEdwards is backed by private equity firm Renovus Capital Partners.
Capstreet’s The Colt Group Acquires Plant Services. Industrial leak repair solution provider The Colt Group announced this week it has acquired Plant Services, a leak repair, line stopping and field machining service provider. Plant Services targets the heavy process facility market throughout the Rocky Mountain region. The Colt Group is backed by Capstreet, a middle-market private equity firm.
Kian Capital’s Sdii Global Acquires Roar Engineering. Kian Capital-backed Sdii Global, a forensic engineering and consulting firm servicing the property and casualty insurance sector, has announced its acquisition of Roar Engineering. Road is a Canada-based forensic engineering company for the insurance industry. The acquisition broadens Sdii’s geographic reach as well as its portfolio breadth, an announcement noted. The two businesses will continue to operate independently.
Exits
Stellex Capital’s A. Stucki Exits Velocity Rail. Stellex Capital Management-backed A. Stucki Company, a supplier of highly engineered parts for the rail industry, announced the exit of Velocity Rail Solutions. A press release said Velocity Rail, which provides mobile fueling services to locomotives, expanded its offering while under A. Stucki ownership.
Argosy Exits Rita’s Franchise Company. Argosy Private Equity, a lower middle-market private equity firm, announced the sale of portfolio company Rita’s Franchise Company in a recent press release. Rita’s is a frozen treat brand with about 600 locations. The company was acquired by Argosy in 2016.
AE Industrial Exits Kellstrom Aerospace. AE Industrial Partners, a private equity firm focused on the aerospace and industrial services markets, announced this week the successful exit of Kellstrom Aerospace Group. Kellstrom is a global distributor and service provider for the commercial aerospace engine aftermarket. VSE Corporation, a publicly listed provider of aftermarket distribution and repair services, has acquired the company.
Insights
ACG Detroit Accepting M&A All Star Nominations. ACG Detroit is now accepting nominations for its 10th annual M&A All Star Awards. Now until Friday, Jan. 17, 2025, nominations are being accepted for a range of awards, including Advisor of the Year, Dealmaker of the Year and Investment Banker of the Year. Nominees do not have to be ACG Detroit members to be considered. Winners will be announced May 7, 2025 at the M&A All Star Awards ceremony at The Townsend Hotel. To nominate a deal or dealmaker for an award, visit https://www.acg.org/detroit/ma-all-star-awards.
BlackRock Acquires HPS for $12 Billion. BlackRock announced this week that it would acquire HPS Investment Partners, strengthening the money manager’s position in the private credit space. The deal makes BlackRock a top private credit manager. Reports noted BlackRock is also in the final stages of completing a $3.25 billion acquisition of private markets data provider Preqin.
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.
