PE Weekly: Tech, Food and Beverage M&A Rounds Out 2024

This week, the technology as well as the food and beverage sectors—two markets that faced a turbulent year—saw heightened dealmaking activity. As middle-market investors closed out 2024, analysts naturally turned their gaze towards 2025 in anticipation of a new administration in Washington. While much uncertainty remains for middle-market dealmaking in the year ahead, sentiment remains optimistic.

Platform Investments

Bain Eyes Little Caesars, Jersey Mike’s Operator. Recent Reuters reports say private equity firm Bain Capital is in talks to acquire Sizzling Platter, the franchise operator of Little Caesars and Jersey Mike’s. Unnamed sources said the firm is in discussions to pay more than $1 billion for the business, including debt. Sizzling Platter also operates Dunkin’, Wingstop and Jamba.

One Equity Takes Majority Stake in Comau. One Equity Partners, a middle-market private equity firm, announced this week it has completed its majority investment in Comau, an industrial automation and advanced robotics company. The transaction makes Comau investor Stellantis an active minority shareholder, a press release noted.

One Equity Acquires EthosEnergy. One Equity Partners also announced its completed acquisition of EthosEnergy, a provider of rotating equipment for the energy, industrial, and aerospace and defense sectors. In its announcement, One Equity highlighted several favorable trends in the gas power market, including EV adoption, head electrification and growing data center demand.

Birch Hill Acquires Rexall, Well.ca. Birch Hill Equity Partners, a private equity firm based in Toronto, has acquired Rexall Pharmacy Group from its previous own McKesson Corp., according to recent reports. The transaction includes McKesson’s Well.ca, an online health and wellness products retailer. McKesson said the divestiture will allow the company to focus on its oncology and biopharma growth platforms.

Highlander Acquires The Ergo Baby Carrier From Compass. Private equity firm Highlander Partners has announced its acquisition of The Ergo Baby Carrier from publicly listed Compass Diversified, according to an announcement this week. Ergobaby designs ergonomic products for babies and their caregivers and includes three brands: Ergobaby, Tula and Belly Bandit.

Add-Ons

Warburg Pincus’ Duravant Acquires POSS. Duravant, an engineered equipment and automation solutions provider servicing the food processing, packaging and material handling sectors, has acquired POSS Design Limited. POSS, based in Toronto, manufactures protein processing solutions. Duravant is backed by private equity firm Warburg Pincus.

Dunes Point’s Roofing Services Solutions Acquires Midwest Roofing. Roofing services provider Roofing Services Solutions, backed by Dunes Point Capital, has acquired Midwest Roofing, Siding & Windows, according to recent reports. Midwest Roofing offers re-roofing and building exterior services to residential and commercial customers. Dunes Point launched the Roofing Services Solutions platform nearly one year ago, reports noted.

Strategics

Inszone Insurance Acquires Roten & Company. Inszone Insurance Services, a provider of commercial, personal and benefits insurance, announced its acquisition of family-owned Roten & Company Insurance. A press release said the investment expands Inszone’s presence n Texas and enhances its personalized insurance solution offering to both businesses and individuals.

Insights

Pitchbook Recaps the Year in M&A. In its year-end recap of M&A activity, Pitchbook highlighted the continuing strength of corporate acquirers expected to last into the new year as private equity investment activity rebounds from the pressure of high interest rates. Analysts expect corporates to “maintain the upper hand” as PE’s stockpile of dry powder declines. Examining other trends, Pitchbook found the B2B products and services sector to have driven M&A activity in the U.S. for 2024, followed by information technology and the B2C sector.

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.