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 | PitchBook Newsletter | | Private Equity Edition |
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| Powered by the PitchBook Platform. Learn more» | | 563,338 Deals | 34,977 Funds | 22,667 Limited Partners | 28,845 Advisors | |
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TUESDAY, JUNE 28, 2016  | |
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With either recreational or medical marijuana allowed in some form in half the U.S. states (plus the District of Columbia), the arc of history is bending sharply toward widespread cannabis legalization.
And as you might imagine, that means private equity is taking an increasing interest, with more and more firms raising greenbacks to invest in green plants. |
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The top 8 PE investors in U.S. consumer products Mill Road Capital has submitted an unsolicited offer to acquire all outstanding shares of Skullcandy (NASDAQ: SKUL), a maker of audio and gaming products, for $6.05 apiece in cash. This proposal rivals Skullcandy’s recently announced agreement to be purchased by Incipio, a Goode Partners-backed consumer tech platform, for $5.75 per share—or about $177 million. Skullcandy’s board of directors is now actively soliciting other alternatives to the Incipio deal as part of a go-shop period that will end July 23.
Outside the contest between Mill Road and Incipio, PE investors seem to have cooled on U.S. consumer products companies like Skullcandy. According to the PitchBook Platform, PE firms closed 48 investments in the space in 1Q, the lowest volume of any quarter since 2011. Mere days away from quarter's close, only 43 transactions have been concluded during 2Q, which would mark a new low for the past five years.
Here are the top PE investors in U.S. consumer products since 2010, along with their deal counts (incl. add-ons):
1. TSG Consumer Partners (22)
2. Wind Point Partners (21)
T-3. Sun Capital Partners (19)
T-3. Leonard Green & Partners (19)
5. Kelso & Company (18)
6. Knight's Bridge Capital Partners (17)
T-7. The Riverside Company (16)
T-7. The Carlyle Group (16)
PitchBook users can view our full list of top PE investors in the U.S. consumer products space. Want to access this info or see the leaders in another industry? Contact us today. |
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To kick off a multipart examination of the PE industry, The New York Times takes a not-so-flattering look at firms buying up public services and emergency-care companies. [NYT]
For part two, a breakdown of the ways in which GPs such as Lone Star Funds and Blackstone have become more active in the housing market in the wake of 2008, assuming many of the mortgage-based roles formerly filled by banks. [NYT]
Some thoughts on the challenges LPs face in properly balancing PE against other asset classes in their portfolios. [Pensions & Investments]
Brett King, the CEO of banking app Moven, bemoans the lack of PE and VC available in Australia. [The Australian] |
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2007 Vintage U.S. Venture Funds with Healthcare Investments Onex set to reel in WireCo | Onex has agreed to recapitalize and acquire a controlling interest in WireCo WorldGroup with an equity investment of $260 million. Existing investor Paine & Partners and company management will retain minority stakes. WireCo is a manufacturer of steel wire rope, synthetic rope, specialty wire and other engineered products used in the industrial, oil & gas, mining, fishing and maritime industries. | Industrial Supplies Prairie Village, KS | | |
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Orchestro acquired by E2open | Orchestro offers demand signal repositories and preemptive analytics for retail and omni-channel fulfillment. Insight Venture Partners bought E2open, a supply chain management and operations company, for $273 million in March 2015. Avendus Capital served as sole financial advisor to Orchestro on the transaction. | Database Software Washington, DC | |
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KKR makes significant investment in RES | Founded in 2007, Resource Environmental Solutions seeks to provide commercial solutions that help clients manage risk in environmentally sensitive areas. RES will participate in KKR's Green Solutions Platform, which supports environmental initiatives at the firm’s portfolio companies across the areas of eco-efficiency, eco-innovation and eco-solutions. | Environmental Services Houston, TX | |
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Lovell Minnick’s J.S. Held adds Lovett Silverman | Lovett Silverman is a construction consulting firm specializing in claims analysis, expert witness & litigation support and other services. Lovell Minnick Partners has backed J.S. Held, also a construction consulting firm, since last year. | Consulting Services Hauppauge, NY | |
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| An affiliate of Roark Capital has acquired a minority stake in Drybar, a hairstyling business specializing in blowouts with more than 60 locations across the U.S. | Consumer Services Irvine, CA | | |
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ECM gains control of German translator & proofreader | ECM Equity Capital Management has agreed to acquire a majority stake in Wieners+Wieners, a provider of translation, proofreading and other language services, from Caldec. The investment comes from the firm’s German Equity Partners IV fund, which closed on €230 million in 2012. | Outsource Services Ahrensburg, Germany | |
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Corpfin Capital sells 100% of Logiters | Corpfin Capital has agreed to divest its stake in Logiters to ID Logistics (EPA: IDL) at an enterprise value of €85 million. Logiters is a provider of contract logistics services in Spain and Portugal. | |
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Monomoy's Fund III exceeds $650M target | Monomoy Capital Partners has closed its third fund on roughly $767 million. The firm invests primarily in the manufacturing, distribution, consumer products and foodservice sectors. | New York, NY Restructuring |
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Mark Begor joins Warburg Pincus | Warburg Pincus has hired Mark Begor as a managing director in the firm’s Industrial and Business Services group. Begor had spent the previous 35 years at General Electric, at one point serving as president and CEO of GE’s Energy Management business. |  Mark Begor, Managing Director, Industrial and Business Services PE/Buyout New York, NY |
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