PE Weekly: Assets Change Hands in Take-Private Deals, Slew of Exits

In a slow exit environment, this week shows sponsors making moves to return funds to LPs and strategics offloading assets to private equity sponsors. Amid a slew of PE sales, dealmakers also saw carve-out and take-private activity. Read more about the latest transactions below.

Platform Investments

Stellex Capital Acquires Foundry and Forge in Take-Private Deal. Stellex Capital Management, a middle-market private equity firm, announced it has reached an agreement to acquire casting and forging business McConway & Torley and Standard Forged Products, collectively known as Foundry and Forge. The firm is acquiring the company from publicly listed Arcosa, Inc. Stellex will accelerate growth for the company through organic and strategic acquisition initiatives, a press release said.

Truelink Capital Carves Out Air Distribution Technologies from Johnson Controls. Truelink Capital, a middle-market private equity firm, announced that it has acquired Air Distribution Technologies from publicly listed conglomerate Johnson Controls. Air Distribution Technologies provides air management and filtration solutions and will operate as an independent business. The investment marks Truelink’s fifth acquisition since the firm’s launch in 2022.

CVC Takes Therakos Private in Mallinckrodt Sale. CVC Capital Partners has announced its acquisition of Therakos, previously owned by publicly listed pharmaceutical. Company Mallinckrodt, in a $925 million deal, according to an announcement. Therakos is an extracorporeal photopheresis (ECP) delivery system used in therapies to treat immune-related diseases. CVC plans to grow the business through research and development as well as geographic expansion.

Reynolda Equity’s ATG Acquires Tritech. Analytical Technologies Group (ATG), a portfolio company of Reynolda Equity Partners, announced its acquisition of Tritech Field Engineering in a release provided to Middle Market Growth. ATG provides service, maintenance and repair services for biopharmaceutical laboratory instruments. Tritech provides calibration and other services to the biopharma sector, including clinical and university research labs.

EQT Takes Majority Stake in Cybersecurity Business Acronis. Private equity investor EQT has announced it will acquire a majority stake in cybersecurity and data protection platform Acronis, according to a press release. Acronis founders, management and existing investors, including CVC, Springcoast and BlackRock Private Equity Partners, will retain minority ownership of the company. Aronis services managed service provider and corporate IT departments.

Kingswood Capital Acquires Kodak Alaris from U.K. PPE. Middle-market private equity firm Kingswood Capital Management is acquiring photography and imaging business Kodak Alaris, which comprises Kodak Moments and Kodak Alaris Business Unit. The company services clients across the globe with software, document scanners and other services. Kingswood is acquiring the assets from the United Kingdom Pension Protection Fund (PPF).

Brightstar Capital Acquires Residential Roofing Company. Brightstar Capital Partners, a middle-market private equity firm focused on the industrial and manufacturing sector, has announced its acquisition of Best Choice Roofing, a residential roofing company. The company will use Brightstar’s backing to further scale its growth in the roof repair and replacement market, the announcement noted.

Brightstar Acquires PlayAGS in Take-Private Deal. Brightstar Capital announced another acquisition this week, a take-private deal that sees the private equity firm acquiring gaming product supplier PlayAGS. The company, currently listed on the New York Stock Exchange, will become a privately held business following the transaction, which is expected to close in the second half of 2025, an announcement said. ACG offers a variety of gaming experiences including online casino content and in-person slot and table games.

Add-ons

LongWater’s Midland Garage Door Acquires Martin Door. LongWater, an alternative asset management firm targeting the lower-middle market, has announced that its portfolio company Midland Garage Door has acquired garage door manufacturer Martin Door. LongWater first invested in Midland in 2023. The acquisition expands Midland’s geographic footprint and product offering, the announcement noted.

TJC’s PSC Group Acquires Delta Petroleum. PSC Group, a logistics and repair services provider to the petrochemical industry, is acquiring Delta Petroleum Company, according to a recent press release. Following the transaction’s close, Delta will no longer be a subsidiary of packaging conglomerate Greif. PSC Group is a portfolio company of middle-market private equity firm TJC LP.

Strategics

EnableComp Acquires ANI Healthcare Solutions. Healthcare revenue cycle management (RCM) solution provider EnableComp has announced its acquisition of ANI Healthcare Solutions, according to a press release. ANI provides denial management services, expanding EnableComp’s existing E360 RCM automation platform.

Aceable Acquires Real Estate Institute from Greybull Stewardship. Private investment firm Greybull Stewardship is exiting real estate licensing education platform Real Estate Institute, selling the business to online learning company Aceable, according to a recent announcement. The investment allows Aceable to expand into the insuranc and mortgage education space while expanding its presence in real estate, augmenting its existing real estate education brand AceableAgent.

Exits

GenNx360 Exits GenServ to Aurora Capital. Middle-market private equity firm GenNx360 Capital Partners announced the sale of portfolio company GenServ, a provider of back-up power solutions for commercial and industrial end-users. The firm first invested in GenServ in 2018. Private equity firm Aurora Capital Partners acquired the business.

Incline Equity Exits ASP Global to Platinum Equity. Middle-market private equity firm Incline Equity Partners announced the sale of medical product developer and distributor ASP Global in a recent press release. The firm first invested in the company in January 2020, and had since introduced new product categories and completed four add-on acquisitions. Global investment firm Platinum Equity acquired the company, according to a separate announcement.

Victor Capital Sells CodeGreen. Middle-market private equity firm Victor Capital Partners announced the exit of CodeGreen, a commercial building sustainability advisory firm. Keystone Capital Management portfolio company Pinchin has acquired the business, a press release noted. Victor Capital first invested in CodeGreen in late-2019.

Littlejohn Sells aphabroder to CD&R Portco. Littlejohn & Co., a middle-market private equity firm, said it has reached an agreement to exit portfolio company alphabroder, a supplier of trade, retail and apparel brands, according to an announcement provided to Middle Market Growth. S&S Activewear, a portfolio company of private equity firm CD&R, will acquire the company. The exit marks Littlejohn’s fourth successful sale since September 2023.

One Equity Exits ORS Nasco. Middle-market private equity firm One Equity Partners announced the sale of ORS Nasco, the industrials unit of ORS Medco that distributes industrial MRO products. One Equity will retain ORS Medco’s Transportation business within its portfolio following the sale, according to a press release.

Insights

U.S. Private Equity Shifts Away from China: S&P Report. New analysis from S&P Global Market Intelligence finds U.S. private equity investors are turning away from China with fundraising initiatives in the country slowing in the first half of 2024. PE and venture capital investments in China hit $280 million in the first quarter and $370 million in the second quarter; in 2021, investments averaged $6.38 billion per quarter. Researchers point to geopolitical tensions between the U.S. and China as a key factor behind the investment slowdown.

Italy Emerges as Key Market for Middle-Market Private Credit. Recent reports in Reuters say Italy has surfaced as a key driver for the growth of private credit in the middle market, led by private credit firm Ares Management. While Italy today accounts for just 4.3% of Europe’s overall lending deals completed in the last 45 quarters, according to Deloitte data, experts say the country is increasing in importance for lenders. Ares, for example, completed three deals in Italy in recent months.

Texas Capital Debuts its Direct Lending Strategy. Financial services firm Texas Capital is rolling out its direct lending strategy, Texas Capital Direct Lending, to provide non-bank loans to the middle market, according to a press release. The unit will operate within Texas Capital’s Corporate & Investment Bank and expands the firm’s service offering for middle-market clients within Texas and beyond.

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.