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Consello Capital unveils second deal; Blackstone, OceanSound and Sentinel go big on engineering firms

Good morning, Hubsters. Michael Schoeck here back with you for the Thursday Wire. It’s surprisingly cool in the Big Apple for a rare late summer change.

Kicking off Thursday’s cool coverage we have the latest in a trio of exclusives in the healthcare sector this week, courtesy of healthcare reporter John R Fischer.

Next we’ll look at two deal news involving power and utility infrastructure engineering firms: In the first, OceanSound-backed Gannett Fleming closed a merger with Sentinel Capital-backed TranSystems; In the second, Blackstone Energy Transition Partners acquired a majority stake in Westwood Professional Services from Endurance Partners.

And last up we’ll take a look at a new deal from KKR, which partnered with Korber AG in a JV to acquire MercuryGate International, a transportation management technology provider backed by Summit Partners.

Healthy outcomes

Consello Capital, the private equity arm of advisory firm Consello Group, has acquired preventative care network EHE Health from Summit Partners and DW Healthcare Partners, PE Hub was the first to report.

Upgrade to the premium version of the Wire to read the full interview.

From healthcare we’ll segue over to grid and road infrastructure upgrades with two engineering deals.

Infrastructure upgrades

Across the US, a century-old utility grid is in need of transmission upgrades to accommodate new sources of clean energy, such as solar and energy storage. Meanwhile, roadways and bridges are also in need of expansion and upgrade.

Today we’ll look at two PE-backed deals involving energy transition and transportation engineering firms.

OceanSound Partners-backed power and transportation-focused Gannett Fleming announced it closed a merger with Sentinel Capital-backed general engineering firm TranSystems. The combined engineering firm will focus on transportation infrastructure.

In the second engineering deal, Blackstone Energy Transition Partners acquired a majority stake in Westwood Professional Services from Endurance Partners.

Upgrade to the premium version of the Wire for more engineering deals, including a January listicle in that market.

To close out today we’ll shift back to companies for sale for a moment to highlight a supply chain management technology deal.

Companies for sale

Since the beginning of the year, I’ve been tracking more than 150 companies that sources have told me are on the market, or coming to the market soon, potentially attracting PE buyers.

Only about 15% of those companies have been announced in deals. The most recent was the sale of supply chain software provider MercuryGate International, announced Wednesday. Summit Partners is selling MercuryGate to Korber Supply Chain Software, a JV of Korber AG and KKR, for undisclosed terms.

Upgrade to the premium version of the Wire for more companies-for-sale nuggets.  

If you’ve got any tips about companies for sale, shoot me a note at Michael.S@pei.group.

That’s a wrap for me today. Stay tuned for Nina Lindholm on the Friday Wire tomorrow, filling in for Obey, who’s on vacation this month.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Montagu Private Equity has two strategies for add-ons for its latest carve-out MDC, with the business “a great M&A platform” thanks to double-digit growth in its key therapeutic areas and an increase in non-invasive robotic surgeries, partners Guillaume Jabalot and Christophe Maitrier told PE Hub Europe.

Stonepeak is looking to fill a “vacuum of capital scarcity” with the $3.1 billion closing of its mid-market Stonepeak Opportunities Fund. (Infrastructure Investor)

Is AI going to be A-OK? Monday’s market meltdown highlighted jitters around AI’s profitability, raising questions for the providers of the infra underpinning it. (Infrastructure Investor)

The limited partners committing capital to New Private Markets' Impact 50 (the world’s largest impact fund managers in private markets) are a diverse crowd. NPM has identified over 400 institutions that are investors in the private funds that underpin the Impact 50.

New study sees increase in buyside firms looking at VC secondaries: Tender offers represent a reliable way for secondaries buyers to provide liquidity to private company shareholders, according to a report by Bryan, Garnier & Co. (Secondaries Investor)

Norwegian buyout firm FSN Capital was initially reluctant to participate in the secondaries market. Recent market developments have changed its view: the firm has now closed a multi-asset continuation vehicle on €588 million. (New Private Markets)

TPG plans to hold first closes for two climate impact funds this year, as the firm makes climate solutions a cornerstone of its growth strategy over the next year. (New Private Markets)

They said it

“Just about the only thing a big company can do to address rising healthcare costs is to prevent the health outcomes driving most of those expenses. By offering preventative care as a benefit, you have not only a healthier, more productive employee base but help address rising healthcare costs. This has positive ROIs for customers.”

— Peter Morrow, managing partner, Consello Capital on acquiring EHE Health