PE Weekly: Services Businesses Drive M&A Volume
From automotive dealership valuations to environmental and financial, service providers fuel M&A
The services industry is driving M&A volume this week, with recent transactions spanning environmental services, financial services and more. Plus, a new solution makes its debut to support AI-powered valuations of automotive dealerships. Read more on the latest in middle-market dealmaking below.
Platform Investments and Acquisitions
Renovus Capital Invests in Case Works. Renovus Capital Partners announced this week it acquired a majority stake in Case Works, a tech-enabled legal services company. The backing will support Case Works’ plans to introduce new solutions and enhance existing ones, expand its team, enter into new segments of the legal services market and pursue strategic acquisitions.
Blue Point Recapitalizes National Safety Apparel. Private equity firm Blue Point Capital Partners has recapitalized portfolio company National Safety Apparel, a flame-resistant clothing, workwear and uniform manufacturer. A press release said National Safety Apparel will continue to scale and is currently seeking add-on acquisitions.
Nexa Equity Backs Easy Metrics with $31 Million Investment. Nexa Equity, a private equity firm targeting B2B software businesses, has provided $31 million to Easy Metrics, a labor analytics platform for warehouses and manufacturers. The investment will support Easy Metrics’ product development, capacity expansion and strategic acquisition initiatives.
CORE Industrial Takes Fathom Private. CORE Industrial Partners, a manufacturing, industrial technology and industrial services-focused private equity firm, announced its has completed a take-private transaction of Fathom Digital Manufacturing Corporation. Fathom provides on-demand digital manufacturing services. Fathom will no longer be listed on the New York Stock Exchange.
BV Investment Partners Backs CyberSheath. BV Investment Partners, a middle-market private equity firm targeting the tech-enabled business services, software and IT services sectors, announced it made a majority investment in CyberSheath. The business provides managed compliance, security and IT services within the defense sector, allowing Department of Defense subcontractors to remain compliant with cybersecurity
Add-Ons
Nonantum Capital’s Momentum Environmental Acquires T&R. Momentum Environmental, an environmental services platform backed by middle-market private equity firm Nonantum Capital Partners, is acquiring T&R Environmental, a press release said. The investment will support Momentum’s expansion across the Northeast and Mid-Atlantic.
Strategics
CBC Bancorp Acquires Bay Community Bancorp. Commercial Bank of California holding company CBC Bancorp has announced it has entered into an agreement to acquire Community Bank of the Bay, a press release said. The merged financial services businesses will have a combined $3.5 billion in assets. Commercial Bank of California is a full-service bank specializing in servicing business and professional communities; Community Bank of the Bay is a San Francisco Bay-area commercial bank.
Exits
LLCP Sells Stake in Law Business Research to ICG. Levine Leichtman Capital Partners (LLCP), a private equity firm, is selling part of its stake in Law Business Research, and information services business for the legal, intellectual property and governance, risk and compliance markets. Global asset manager ICG will acquire the assets, LLCP retaining a stake in the business.
Fundraising
Riata Capital Raises $285 Million. Riata Capital Group, a lower middle-market private equity firm, has closed its RCG Equity fund II with $285 million in capital commitments. The fund will invest in six companies across the business services, consumer and healthcare sectors. So far the firm has made three platform investments from the fund.
Insights
Dave Cantin Group Launches AI Dealership Valuation Solution. Dave Cantin Group, a retail automotive advisory firm, has announced the launch of an artificial intelligence-powered solution to accurately value franchise dealerships, according to a recent press release. In a statement, founder and CEO Dave Cantin said the solution deploys “accurate, reliable real-time data that directly improves our ability to secure successful M&A outcomes for our clients.”
EY-Parthenon Predicts M&A Uptick for 2024. A new EY-Parthenon Deal Barometer report offers an optimistic M&A outlook for the rest of the year, predicting a 20% increase in U.S. corporate M&A volume, and a 16% increase for private equity deals. The report, released earlier this month, also fund a 36% increase in deal volume around the globe for the year’s first quarter.
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.
