Lower Middle Market. Higher Expectations. 425+ transactions closed Learn how our experience can work for you at www.twincp.com. $12.7 billion commitments issued to date 94% deals as lead/co-lead arranger *Since inception in Q4 2014. 001_MAJ0220 1 1/28/2020 3:11:20 PM www.twincp.com www.twincp.com 002_MAJ0220 2 1/28/2020 3:11:20 PM THEMIDDLEMARKET.COM FEBRUARY 2020 Manufacturing IN the spotlight The 2020 M&A story for this SECTOR? robotics is part of it (but just one part) CV1_MAJ0220.indd 1 1/24/20 3:56 PM Gain fi t. M&A payments, escrows, insurance, and shareholder representation as distinctive as the deals they’re built for. Find the right solution for your unique deal with the industry’s most comprehensive, tech-enabled M&A deal administration platform—backed by exceptional service and expertise. At SRS Acquiom, we provide an integrated suite of solutions to collect consents and signatures, deliver online payments, and manage risk. For over a decade, we continually identify and solve the most frustrating ine ciencies M&A deal parties face. We help businesses, investors, and advisors complete their transactions as e ciently and e­ ectively as possible, so they can focus on what they do best. Learn more at srsacquiom.com Securities products and Payments services off ered through Acquiom Financial LLC, an affi liate broker-dealer of SRS Acquiom Inc. and member FINRA/SIPC. Visit www.fi nra.org for information about FINRA membership. Acquiom Financial does not make recommendations, provide investment advice, or determine the suitability of any security for any particular person or entity. Transactional risk insurance products or services may not be available in all states, and coverage is subject to actual policy language. Non-insurance products and services may be provided by affi liated companies or unaffi liated third parties. Insurance products placed by Acquiom Insurance LLC, an affi liate of SRS Acquiom Inc. 0C2_MAJ0220 2 1/28/2020 12:26:20 PM SRSA_GainFit_MnA_FEB_Ad_7875x105_MnA_FEB.indd 1 12/10/19 10:57 AM Contents February 2020 | VOL. 55 | NO. 2 Cover Story 18 Making things A tight labor market, trade issues and the upcoming presidential election are all presenting challenges for the manufacturing industry, but that may be good news for M&A. One important area of investment is robotics. Feature 25 What’s ahead for 2020? Investment bankers from Harris Williams, Lincoln International, Piper Sandler, Stifel, William Blair and more share their forecasts for the new year. Private Equity Perspective 16 Award season Mergers & Acquisitions advances the middle market with three special reports each year. The Buyside 17 Triage à la Amazon The tech giant has revolutionized shopping, and now it’s looking to do the same in healthcare. Data Watercooler 34 Completed deals Genstar, HGGC and Thoma Bravo are 6 10 among the buyers that closed deals BlackRock goes green New law drives M&A last year. “Climate risk is investment risk,” warns Startups take advantage of California CEO Larry Fink. Consumer Privacy Act. People Moves 8 12 Fundamental fundraising 39 Mid-market lending partners New hires and promotions Platinum Equity, led by Tom Gores, Aflac buys stake in Varagon, commits raises $10 billion for fifth fund. Sasank Aleti was promoted to partner up to $3 billion. at LLR Partners. Kathleen Auda joins Great Rock Capital. Ben Fogle gets 8 14 hired by MidWest Growth Partners. Yum broadens menu Top underwriters The KFC and Taco Bell owner buys fast-casual burger chain Habit KKR muscled into the top 10 arrangers Restaurants. of new U.S. buyout loans in 2019. TheMiddleMarket.com February 2020 Mergers & Acquisitions 1 001_MAJ0220 1 1/27/2020 4:58:08 PM Inside Word February 2020 | VOL. 55 | NO. 2 Rising Our parent company has recently relaunched as TheMiddleMarket.com Arizent, deepening our commitment to advancing 1 STATE STREET PLAZA, 27TH FLOOR the communities we serve NEW YORK, NY 10004-1505 • (212) 803-8200 EDITOR-IN-CHIEF Mary Kathleen Flynn MANAGING EDITOR Demitri Diakantonis Mergers & Acquisitions is thrilled to share that our CONTRIBUTING EDITORS Keith Button, Danielle Fugazy parent company has relaunched as Arizent. This new GROUP EDITORIAL DIRECTOR, BANKING AND CAPITAL MARKETS direction allows for our publication to continue to Richard Melville deepen our commitment to advancing the finan- cial and professional service industries. Arizent will EXECUTIVE DIRECTOR, CONTENT OPERATIONS AND CREATIVE SERVICES leverage our editorial brands and events to provide Michael Chu SR. ART DIRECTOR integrated content across our platforms, enhanced Nick Perkins research, and peer networks—all to build commu- VICE PRESIDENT, CAPITAL MARKETS nities that connect professionals around the most Harry Nikpour (212) 803-8638 SENIOR MARKETING MANAGER important ideas driving their industry forward. Jamie Billington More than simply a corporate rebranding, the change represents a new 212-803-6099 mission-driven direction and business model, in the works since CEO Gemma CHIEF EXECUTIVE OFFICER ........................Gemma Postlethwaite Postlethwaite arrived in 2018, as Folio pointed out in its coverage of the initia- CHIEF FINANCIAL OFFICER .......................................Debra Mason tive. “Historically, our differentiator was that we went really deep in the indus- CHIEF STRATEGY OFFICER ...........................................Jeff Mancini tries that we served in terms of news and information content,” chief strategy CHIEF CUSTOMER OFFICER ........................................Dave Colford officer Jeff Mancini told Folio. “Now, we’re starting to think about how we can CHIEF CONTENT OFFICER ...........................................David Evans really advance these communities. It’s about helping them solve these chal- VP, PEOPLE & CULTURE ....................................................Lee Gavin lenges, not just publishing news about these challenges. Taking a more active role in that advancement is core to the mission.” LICENSING AND REUSE OF CONTENT: Contact our official partner, Wright’s Media, about available We are also launching a new offering, Arizent Leaders. Born out of our 17 usages, license and reprint fees, and award seal artwork at [email protected] or (877) 652-5295 for more years of honoring the Most Powerful Women in Banking, we have built this information. Please note that Wright’s Media is the only authorized company that we’ve partnered with for Arizent comprehensive, ongoing network to achieve tangible outcomes in gender materials. equality, extending the significant impact to women across financial services CUSTOMER SERVICE as a whole. In keeping with this vision, Mergers & Acquisitions produces the [email protected] or (212) 803-8500 Most Influential Women in Mid-Market M&A. Mergers & Acquisitions Vol. 55/No. 2 (ISSN 0026-0010) is No other brands dive more deeply into the topics that matter most to published monthly with combined issues in July/August and November/December by Arizent, One State Street Plaza, leaders in financial and professional services. From emerging business mod- 27th Floor, New York, NY 10004-1505. Yearly subscription is $1,995; $2035 for one year in all other countries. Periodical els and new customer behavior to artificial intelligence and data privacy to postage paid at New York, NY and U.S. additional mailing offices. POSTMASTER: Send address changes to Mergers policy and regulatory trends, Arizent drives the conversations shaping the fu- & Acquisitions / Arizent, One State Street Plaza, New York, NY 10004. For subscriptions, renewals, address changes ture of financial and professional services industries. Please explore and learn and delivery service issues contact our Customer Service department at (212) 803-8500 or email: [email protected]. more at www.arizent.com and share if you have any questions or feedback. This publication is designed to provide accurate and authoritative information regarding the subject matter And for more on how Mergers & Acquisitions is fulfilling Arizent’s mission covered. It is sold with the understanding that the publisher is not engaged in rendering financial, legal, accounting, through projects, such as the Rising Stars of Private Equity, see page 16. M&A tax, or other professional service. Mergers & Acquisitions is a registered trademark used herein under license. ©2020 – Mary Kathleen Flynn Arizent and Mergers & Acquisitions. All rights reserved. 2 Mergers & Acquisitions February 2020 002_MAJ0220 2 1/27/2020 4:55:49 PM You manage the deal. We’ll manage the escrow. When establishing an escrow account, you need a solid and reliable inancial Southern California, partner. For nearly a century, MUFG Union Bank, N.A., has provided timely and Midwest and Texas James George, Director accurate corporate trust services. We understand the complexities of escrow 2132367150 and do everything possible to make transactions worry-free. Northern California and Paciic Northwest 20 years of industry experience means our corporate trust managers provide Dean Levitt, Director quick, e icient, and customized service for our global clients. We can open 4157055020 your escrow account in days and start providing timely payments and accurate Eastern U.S., reporting, allowing you to drive your business forward. Europe, Middle East, Africa, and Australia Nils Dahl, Director Learn more at mufgamericas.com/corporatetrust 6464522115 Asia and Latin America Rafael Diaz, Director 6464522014 Global Banking & Finance Review Award Winner 2012, 2013, 2014, 2016, and 2018 MUFG Union Bank, N.A. A member of MUFG, a global inancial group ©2020 Mitsubishi UFJ Financial Group, Inc. All rights reserved. The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc., and is used by MUFG Union Bank, N.A., with permission. Member FDIC. 003_MAJ0220 3 1/28/2020 12:26:21 PM What’s going on @TheMiddleMarket.com www.themiddlemarket.com Interviews Special reports Data What’s ahead Champions of change Weekly roundups We conducted interviews with 8 invest- Mergers & Acquisitions has named Check our website every Friday for PE ment bankers and other M&A advisors. the 2020 Most Influential Women in fundraising scorecard and the Weekly Some said the first half of the year will Mid-Market M&A.