PE Weekly: Tech-Enabled Business Services, Aerospace and Defense Lead M&A

Tech-enabled business services continues to attract private equity investors, with transactions this week spanning digital transformation support, e-commerce marketplace management and more. Aerospace and defense saw some M&A action, too, with Godspeed Capital’s latest fundraise signaling future deal activity for the sector. Read more of the latest in middle-market dealmaking below.

Platform Investments

HighPost, Charlesbank Back Front Row Group. HighPost Capital, a private investment firm focused on the consumer, sports, media and technology sectors, has invested in Front Row Group alongside middle-market private equity firm Charlesbank Capital Partners. Front Row is an e-commerce agency that provides outsourced marketplace management services, a press release noted.

Add-Ons

Susquehanna Growth’s USC Acquires Hellman & Associates. Susquehanna Growth Equity-backed U.S. Compliance, a provider of environmental, health and safety (EHS) services, announced its acquisition of EHS consulting provider Hellman & Associates. The investment broadens the company’s presence in the Rocky Mountain region, the announcement noted. Susquehanna Growth Equity is a growth equity firm.

Blue Point’s Pinnacle MEP Acquires Bell Plumbing. Pinnacle MEP, a portfolio of companies that provides HVACR, plumbing and other mechanical services, has acquired Bell Plumbing Services, a provider of commercial plumbing solutions. The investment marks the first add-on acquisition for Pinnacle MEP since its partnership with Blue Point Capital Partners, which acquired the company in early October. The transaction marks the 16^th acquisition for Pinnacle MEP overall.

Sagewind’s Tria Federal Acquires Softrams. Tria Federal, an advisor supporting digital transformation of health and public safety agencies, has announced its acquisition of Softrams, which specializes in system modernization for federal agencies. Tria is backed by private equity firm Sagewind Capital, which targets the government technology sector.

ATL Partners’ Aero Accessories Acquires AirGroup. Aero Accessories & Repair, a provider of aerospace component maintenance, repair and overhaul services that is backed by ATL Partners, has acquired AirGroup America. AirGroup is a stocking distributor of aerospace replacement parts to passenger airlines, cargo airlines and other end customers. The investment marks Aero Accessories’ third add-on this year, a press release noted.

OceanSound’s Lynx Software Acquires CoreAVI. Lynx Software Technologies, a provider of open architecture software solutions for edge computing, has acquired Core Avionics & Industrial (CoreAVI), a press release said. CoreAVI provides development tools and software packages for a variety of applications, including AI and certified graphics rendering. The investment expands Lynx’s reach into the market for graphics processing unit-enabled safety systems. Lynx is a portfolio company of OceanSound Partners.

TSCP’s ATIS Acquires Elevator Inspector. Private equity firm Thompson Street Capital Partners (TSCP) announced portfolio company ATIS has acquired Vermont Elevator Inspection Services. The investment complements ATIS’s existing elevator inspection services within Vermont, a press release said.

Kian Capital, RF Investment Launch Optometry Platform. Lower Middle-market private equity firms Kian Capital Partners and RF Investment Partners announced their partnership to launch a medically focused optometry platform, US VisionMed Partners. The platform follows the firms’ investment in VisionMed alongside Lakewood Healthcare Capital. The firms will continue collaborating to execute additional acquisitions.

Strategics

Foley Company Acquires Salsco. Foley Company, a provider of shop tools for the golf and turf industry, announced its acquisition of Salsco, Inc., a turf maintenance equipment provider. The acquisition, which took effect Nov. 1, expands Foley’s presence in the golf and turf industry. Osage Advisors advised Salsco on the transaction.

Stonepeak to Acquire Boundary Street Capital. Alternative investment firm Stonepeak, which focuses on infrastructure and real assets, announced it reached an agreement to acquire private credit investment manager Boundary Street Capital. A press release noted Boundary Street focuses on digital infrastructure, enterprise infrastructure software and technology services in the lower-middle market. The investment augments Stonepeak Credit, the firm’s credit business.

Tucker’s Farm Brand Acquires Christmas Décor. Wonder Franchises, a franchise-focused holding vehicle owned by investment holding vehicle Tucker’s Farm Corporation, announced its acquisition of Christmas Décor, also known as The Décor Group. The company provides exterior Christmas and holiday decorating services.

Exits

Court Square Capital Exits Advanced Diabetes Supply Group. Court Square Capital Partners, a middle-market private equity firm, announced it entered into an agreement to sell Advanced Diabetes Supply Group (ADSG). The company is a national distributor of durable medical equipment with a specialization on diabetes supplies. Publicly listed Cardinal Health is acquiring ADSG, which Court Square Capital first acquired in December 2020, according to a press release.

Fundraising

Godspeed Capital Raises $675 Million. Godspeed Capital Management, a middle-market private equity firm focused on the defense and government services and technology space, has closed its third fund with $675 million in capital commitments. Fund III reached its hard cap and brings the total raised by the firm to $1.1 billion since its launch in 2021.

Transom Capital Raises $750 Million. Transom Capital Group, a middle-market private equity firm, closed its fourth fund with $675 million in capital commitments and $79.5 million in co-investor capital commitments. A press release said Transom Capital Fund IV is more than double the size of the firm’s previous fund and exceeded its fundraising target. The firm will focus on lender-owned and corporate carve-outs, among other acquisitions.

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