PE Weekly: PE Firms, Strategics Drive Diverse M&A Activity
From sporting goods to cybersecurity, dealmakers bring M&A to a wide range of sectors
As we approach the end of the year, investors across sectors continue to transact. This week, M&A spans cybersecurity and technology, consumer products, commercial aviation and more. Read more about the diverse M&A activity driven by private equity firms and strategic investors alike.
Platform Investments
KKR Acquires Potter Global Technologies from Gryphon Investors. Private equity firm Gryphon Investors has exited Potter Global Technologies, a life safety equipment manufacturer, to global investment firm KKR. A press release said backing from KKR will help Potter integrate an employee ownership program. The investment is part of KKR’s Ascendant Strategy, which sees the firm investing in middle-market companies as part of its Americas Private Equity platform.
Norwest Equity Acquires Portfolio of Sporting Goods Brands. Norwest Equity Partners, a middle-market investment platform, has acquired United Sports Brands, a portfolio of several sporting goods and active lifestyle brands. Norwest Equity first acquired Shock Doctor, part of United Sports Brands, in 2008; Shock Doctor was part of Norwest Equity’s portfolio for six years before it was sold to Bregal Partners, which created the United Sports Brands platform following add-on acquisitions.
Siris to Acquires Wireless Comms Business BearCom. Siris, a private equity firm targeting the technology sector, announced it has entered into an agreement to acquire BearCom, a wireless communications and security technology company. The transaction follows middle-market private equity firm Bertram Capital’s exit of the company. The backing from Siris will support BearCom’s ability to provide video and physical security technologies, private data networks and other cybersecurity communications and technology solutions for enterprise clients.
Add-Ons
Investcorp- and Trilantic-Backed RoadSafe Acquires Dobie Supply. RoadSafe Traffic Systems, which provides infrastructure services, announced this week its acquisition of Dobie Supply, which supplies traffic control devices and manufacturers roadway signage. RoadSafe is a portfolio company of private equity firms Investcorp and Trilantic North America. The investment in Dobie marks the platform’s 11th add-on acquisition.
Amulet Capital’s Unlock Health Acquires Healthcare Marketing Business. Amulet Capital Partners-backed Unlock Health has announced its acquisition of SPM Group, a network of health and healthcare marketing agencies. Unlock Health is acquiring the company from lower middle-market private equity firm Corridor Capital, according to a press release. The investment expands Unlock Health’s capabilities with omnichannel media planning, analytics and more.
Strategics
SonicWall Acquires Managed Security Service Provider. Cybersecurity company SonicWall announced its acquisition of managed security service provider (MSSP) Solutions Granted in a recent press release. The investment expands SonicWall’s existing offering for managed service providers. In a statement, SonicWall President and CEO Bob VanKirk said the businesses together “will empower cybersecurity and technology service providers with economical threat defense solutions” that can streamline security management and automate detection.
L3Harris to Exit Commercial Aviation Business to TJC. L3Harris Technologies is exiting its commercial aviation business to private equity firm TJC in an $800 million transaction, the technology company and defense contractor announced this week. The unit provides pilot training, flight data analytics and other solutions for the commercial aviation space. Reports said the deal includes $700 million in cash and a $100 million earnout contingent upon achieving certain financial performance targets.
Exits
Levine Leichtman Exits Therapeutic Research Center. Private equity firm Levine Leichtman Capital Partners announced the sale of portfolio company Therapeutic Research Center, according to a recent press release. The business, which provides continuing education and training services to healthcare professionals, was sold to Gridiron Capital portfolio company Colibri Group.
Fundraise
SEVA Raises $85 Million for Growth Equity Fund. SEVA, a newly launched growth equity firm, has announced the close of its first fund. SEVA Fund I raised $85 million in commitments, according to a press release, and exceeded its initial $50 million target. SEVA will deploy the funds to eight-to-ten investment targets in the technology sector.
Avenue Capital Said to be Raising Impact Private Credit Fund. Avenue Capital, an investment firm focused on private equity and distressed securities, is reportedly raising capital for a new impact fund, according to Reuters, citing an unnamed source. The firm is reportedly looking to raise between $600 million and $800 million and would target middle-market businesses in the sustainability spaces, including clean energy, food, water and more. The fund would mark the second environmental impact fund for the firm, the publication said.
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