Lower Middle Market. Higher Expectations
Total Page:16
File Type:pdf, Size:1020Kb
94% 400+ $11.6 billion Lower middle market. Higher expectations. deals as lead/ transactions closed commitments co-lead arranger issued to date Twin Brook Capital Partners is a direct lending fi nance company focused since Q4 2014 inception on providing cash-fl ow based fi nancing solutions to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. Learn more at www.twincp.com. THEMIDDLEMARKET.COM NOVEMBER/DECEMBER 2019 JUST BUY IT. Retail relies intensely on tech for everything from predicting what customers want to delivering orders quickly. The current trend is to fi nd a company that offers what’s needed – and acquire it CV1_MAJ1119.indd 1 11/1/19 10:48 AM WHAT’S THE DEAL WITH DUANE MORRIS? THAT NAME KEEPS POPPING UP MORE AND MORE AS DEAL COUNSEL Representative Private Equity, M&A and Financing Deals $750 MILLION $110 MILLION $1.6 BILLION $292 MILLION Sale of leading private Acquisition of Memcor® All-stock merger - largest Secondary fundraise label oral care company, ultrafiltration and U.S. public cannabis for Europe’s most Ranir Global Holdings, to membrane biofiltration deal to date - with MPX valuable fintech startup NYSE-listed Irish pharma technologies from Evoqua Bioceutical Corp. (CSE: TransferWise Ltd., representing growth manufacturer Perrigo for Water Technologies Corp MPX) for Canadian-listed for capital investor $447.5 MILLION $250 MILLION $361 MILLION $2.585 BILLION Senior secured PIK Reverse takeover of Investment into Covetrus, Senior secured revolving credit facility with toggle notes and Series Lineage Grow Company Inc., a combination of a Bank of America as A convertible preferred (CSE: BUDD) for California spinout of Henry Schein, administrative agent to Axar Capital for cannabis company FLRish, Inc. Inc. (NASDAQ: HSIC) and (dba Harborside) for NYSE-listed NYSE-listed cemetery Vets First Choice for leader $285 MILLION $750 MILLION $150 MILLION Debt restructuring and Syndicated financing Syndicated financing to a equity transfer for Atlantic Sale to Midwest private with JPMorgan Chase major insurance brokerage City’s Ocean Resort Casino equity firm for leading Bank as administrative for this subsidiary of for first-lien lenders supply chain solutions agent for Wintrust Financial Winthrop Capital Partners, provider to consumer the Witkoff Group and packaged goods industry $200 MILLION $37 MILLION $80 MILLION Acquisition of Acquisition of Trident Structured renewable Asset acquisition and Singapore-listed University International, energy investment strategic partnership with global electronics a regionally accredited in Vietnam for this vaccine leader for manufacturer PCI Ltd. university, by an affiliate leading Asia-Pacific Paragon Gene Therapy independent renewable for private equity firm of NASDAQ-listed unit of NYSE-listed energy company For more information on how seriously Seattle we take our deals, get in touch with BRIAN KERWIN, chair of our global corporate practice, at 312.499.6737 or [email protected]. www.duanemorris.com An Am Law 100 law firm. More than 800 lawyers. Established 1904. Duane Morris LLP – A Delaware limited liability partnership 0C2_MAJ1119 2 10/31/2019 10:16:24 AM Contents November/December 2019 | VOL. 54 | NO. 10 Cover Story 20 JUST BUY IT. Retailers rely on tech for everything from predicting what customers want to delivering orders quickly. The trend is to identify targets that provide innovations - and acquire them. Private Equity Perspective 18 Making a difference Philanthropy has become a focus for many top PE investors, and their firms are encouraging employees to give back to their communities. The Buyside 19 Flying high Software companies that offer re- wards and travel plans to help airlines gain customers are becoming targets. Q&A 33 Apttus CEO talks strategy “We are looking to add to the com- pany,” says chief executive Frank Holland. “We have begun mapping out Watercooler the market looking for the best fit.” 6 10 KPS moves forward with new funds All about the customer Data The PE firm has raised $7 billion in Mastercard buys SessionM and Movis- 36 capital, including funds for special ta purchases Natural Insight in deals Completed deals situations and mid-cap deals. to help retailers enhance service. Cox’s purchase of Rivian Automotive 8 12 among the deals that recently closed. Closer look at numbers New beginnings Apartments.com owner CoStar PE firm Hicks Equity backs MLB- buys STR to offer more data focused agency Gem Agency by part- and analytics to hotel investors. nering with agent Greg Genske. People Moves 10 14 34 New age of medical care KKR raises tech fund New hires Amazon buys telemed provider The firm is raising its second fund Geoff Baird gets hired by LLR Part- Health Navigator, marking the dedicated to investments in TMT as it ners. Natalya Michaels joins Mid- company’s second medical-related further expands beyond the mega- Ocean Partners. Shea Goggin joins deal. deals that made its reputation. Houlihan Lokey. TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 1 001_MAJ1119 1 10/31/2019 5:49:18 PM Inside Word November/December 2019 | VOL. 54 | NO. 10 Shopping trip TheMiddleMarket.com 1 STATE STREET PLAZA, 27TH FLOOR NEW YORK, NY 10004-1505 • (212) 803-8200 Retailers are investing heavily in 7 technologies to EDITOR-IN-CHIEF Mary Kathleen Flynn help them with everything from predicting what MANAGING EDITOR Demitri Diakantonis customers want to delivering products quickly CONTRIBUTING EDITORS Keith Button, Danielle Fugazy GROUP EDITORIAL DIRECTOR, It’s been 25 years since Jeff Bezos launched Ama- BANKING AND CAPITAL MARKETS zon.com Inc. (Nasdaq: AMZN) as an online bookstore Richard Melville in 1994. Since then, Amazon has grown into one of EXECUTIVE DIRECTOR, CONTENT OPERATIONS the most influential companies in the world. Often AND CREATIVE SERVICES Michael Chu led by Amazon, the retail industry has transformed SR. ART DIRECTOR Nick Perkins itself dramatically, thanks to the power of the Inter- net and related innovations. VICE PRESIDENT, CAPITAL MARKETS Harry Nikpour (212) 803-8638 Technology continues to play an essential role in SENIOR MARKETING MANAGER enabling retailers to meet the exacting demands of Jamie Billington consumers and to predict their future behavior. While many companies in the CHIEF EXECUTIVE OFFICER ........................ Gemma Postlethwaite sector deploy extensive R&D operations to stay on the cutting edge, acquisi- CHIEF FINANCIAL OFFICER ....................................... Debra Mason tions of tech providers often provide the fastest and best path. CHIEF STRATEGY OFFICER ........................................... Jeff Mancini The costs of not delivering a good customer experience or the right prod- CHIEF REVENUE OFFICER ...........................................Dave Colford uct mix are high, as the mounting body count in the retailer space demon- CHIEF CONTENT OFFICER ........................................... David Evans strates. “There is very little room for error, and those who aren’t operating VP, PEOPLE & CULTURE ....................................................Lee Gavin efficiently and responding to the market quickly will not survive,” says Steven Agran, managing director at Carl Marks Advisors merchant bank. LICENSING AND REUSE OF CONTENT: Embracing technology has become a key piece of many retailers’ invest- Contact our official partner, Wright’s Media, about available usages, license and reprint fees, and award seal artwork ment and acquisition strategies. “The shift to a services economy has led to at [email protected] or (877) 652-5295 for more information. Please note that Wright’s Media is the only authorized company that we’ve partnered with for a reduction in many traditional forms of corporate investment in favor of the SourceMedia materials. software and equipment needed to support consumer demand,” said Paula Campbell Roberts, director of KKR & Co.’s (NYSE: KKR) global macro and as- CUSTOMER SERVICE set allocation team, in a recent report. [email protected] or (212) 803-8500 In our cover story, we take a look at 7 technologies those companies and other retailers are investing in through M&A: The Internet of Things enables Mergers & Acquisitions Vol. 54/No. 10 (ISSN 0026-0010) enhanced personalization, such as custom drive-thru menus. Artificial intelli- is published monthly with combined issues in July/August and November/December by SourceMedia, One State gence applications predict customers’ needs. Modern data centers and ware- Street Plaza, 27th Floor, New York, NY 10004-1505. Yearly subscription is $1,995; $2035 for one year in all other houses fill orders quickly. Robots assist with sorting and packing consumer countries. Periodical postage paid at New York, NY and U.S. additional mailing offices. POSTMASTER: Send address goods. Voice- and text-assisted technology provides customers with hands- changes to Mergers & Acquisitions / SourceMedia, One State Street Plaza, New York, NY 10004. For subscriptions, free shopping experiences. Analytics give retailers a better understanding of renewals, address changes and delivery service issues contact our Customer Service department at (212) 803- consumer behavior and habits. Mobile payment processing provides consum- 8500 or email: [email protected]. This publication is ers with on-the-go convenience. designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with McDonald’s