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Blackstone to buy Jersey Mike’s Sub; MSCP acquires pet supplement company FoodScience

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

The growing trend for humanizing pets has led to a boom in almost all segments of the pet industry. But the pet supplements market has been lagging, and some in private equity are betting that this sector will be the next big thing in pet care. We are opening the newsletter today with an exclusive regarding Morgan Stanely Capital Partners’ acquisition of FoodScience, a supplements provider. Stay tuned for opportunities that MSCP identified with this deal.

Next, we have a scoop that PCI Pharma Services is expected to see a new private equity investor join with existing investor Kohlberg & Company to fund growth initiatives. We have all the details below.

Finally, we have a pair of deals this morning. First, Blackstone is set to acquire Jersey Mike’s Subs.

And then AeroVironment, an Arlington, Virginia-based drone company, has agreed to acquire BlueHalo, a portfolio company of Arlington Capital Partners, for about $4.1 billion.

Pet supplements

This morning, PE Hub is this first to report that Morgan Stanley Capital Partners has acquired FoodScience, a producer of nutritional supplements for people and their pets. The seller is Wind Point Partners, which bought FoodScience in 2021.

Premium subscribers to the Wire have access to more on this deal.

Pharma

PCI Pharma Services, a global pharmaceutical contract development and manufacturing organization, is expected to see a new private equity investor join with existing investor Kohlberg & Company to fund growth initiatives, three sources familiar with the matter told senior reporter Michael Schoeck.

Upgrade to the premium version of the Wire to find out more.

Sandwich stores

Blackstone has agreed to acquire a majority ownership stake in Jersey Mike’s Subs, a US-based submarine sandwich franchise.

Premium subscribers to the Wire have more on this deal.

Drone technology

AeroVironment, an Arlington, Virginia-based drone company, has agreed to acquire BlueHalo, a portfolio company of Arlington Capital Partners, for about $4.1 billion.

Upgrade to the premium version of the Wire for more.

That’s it for me today. As always, I’d love to hear from you at obey.m@pei.group

Craig McGlashan will bring you tomorrow’s Europe Wire, while Rafael Canton will bring you the US edition.

Cheers,

Obey

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Bain Capital raised $4.1 billion for a second global special situations fund, sources told Buyouts, part of a total haul of $9 billion for the firm’s flexible investing strategy.

Limited partners have expressed concern that an abundance of co-investment capital, driven by challenges in the fundraising market for blind-pool funds, may prompt some managers to stray beyond their sweet spots. (Private Equity International)

Area One Farms held a first close of $90 million for its fifth fund devoted to direct partnerships with family farmers in Canada. (Agri Investor)

Months after ICG’s Strategic Equity group raised the market’s largest GP-led secondaries fund, the firm’s chief executive and chief investment officer is eager to raise another large such vehicle. “If I had my way, we’d raise a $15 billion fund,” Benoît Durteste said on the firm’s half-yearly results call. (Secondaries Investor)

Bain Capital, through its impact arm Bain Capital Double Impact, has purchased US crop nutrition company BW Fusion, according to a statement seen by New Private Markets.

Regulators should update their perception of private markets being inherently riskier than their public counterparts, according to Apollo’s chief executive, Marc Rowan. (Private Equity International)

BTG Pactual hits $500 million mark on $1 billion forestry vehicle. The 2021-vintage fund has been backed by a host of DFIs and has struck long term carbon credit deals with tech giants Microsoft and Meta. (Agri Investor)

Cross-border grid interconnectors are set to be an important piece of the sustainability puzzle. But moving these complex schemes forward is easier said than done. (Infrastructure Investor)

Pantheon has launched two new secondaries-focused evergreen funds: Pantheon Credit Solutions Fund (P-SECC) and Pantheon Global Evergreen Mid-Market Secondaries (PGPE Feeder) according to a statement. P-SECC will provide private credit secondaries exposure for US investors, while PGPE Feeder extends the firm’s international offering to Australia. (Secondaries Investor)

The DE Shaw Group announced it has raised $1 billion for Alkali VI, a closed-end, opportunistic credit fund that invests in corporate debt, structured credit, synthetic securitisations and other forms of speciality debt. (Private Debt Investor)

They said it

“Pet parents are increasingly seeking clinically tested and science-based efficacious supplements, and that is leading to the acceleration of the best supplement players. The pet space exhibits fantastic, long-term secular growth.”

— James Stewart, a managing director and co-head of consumer investing at MSCP, regarding the firm’s acquisition of FoodScience, a supplements manufacturer.