Private equity deal news and insights from the London newsroom

Private equity’s UK play: Foresight sees rise in family-owned sales, Fortress in for liquidity-starved Loungers

Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.

Why are UK businesses so ripe for private equity takeovers? It’s a question we focus on this morning.

First, with the latest of our Outlook 2025 pieces, as Foresight Group’s James Livingston explains why upcoming changes to UK inheritance tax could potentially lead to more family-owned businesses coming up for sale.

Second, we’ve got the latest in a series of listed UK companies attracting private equity, this time a hospitality company agreeing to an offer from Fortress Investment Group.

We’ve then got figures from Lincoln International showing that PE-owned consumer companies are rebounding from their covid-19 slump, before we feature a consumer exit, with Consilium and Progressio exiting their 100 percent stake in Gelit, a producer of frozen ready meals and crepes.

We also take a brief look at a deal that isn’t going ahead: Brookfield’s take-private of Grifols, a global healthcare company and manufacturer of plasma-derived medicines.

Finally, a happy Thanksgiving to our US readers. We’ll end with a short scheduling note as the New York newsroom is closed today and tomorrow.

Budgeting

Foresight Group expects UK family-owned businesses to present dealmaking opportunities following inheritance tax relief changes in the UK autumn budget, partner and co-head of private equity James Livingston told PE Hub’s Nina Lindholm in the latest of our 2025 outlook pieces.

Read more in the premium version of the Wire.

Editor’s note: PE Hub is running 2025 Outlook pieces with senior private equity dealmakers through to the end of the year.

Illiquidity

Another factor leading UK businesses to accept private equity takeovers is the lack of liquidity for listed small-cap stocks, something we’ve covered at length here on PE Hub. That was again one of the reasons given by the directors of Loungers, a hospitality company, for agreeing on a take-private by US GP Fortress Investment Group this morning.

Find out details, including the offer price, premiums and revenue growth, in the full version of the Wire.

Consumer comeback

Some of the recent challenges for the consumer sector might be coming to an end, according to new figures from investment bank Lincoln International, whichthis morningreleased itsThird Quarter European Valuation Insights, based on reviewing over 575 private equity-backed UK and European companies.

Read more in the premium version of the Wire.

Ready meal exit

Elsewhere in consumer deals, Consilium and Progressio have exited their 100 percent stake in Gelit, alongside MMM. The buyer is Sicar, a wealth venture fund.

No-go

Brookfield’s potential take-private of Grifols, a global healthcare company and manufacturer of plasma-derived medicines, is over after the Spanish company terminated discussions.

Find out more in the premium version of the Wire.

Combination

As the New York newsroom is closed today and tomorrow due to Thanksgiving and Native American Heritage Day, there will be no US Wire today. Tomorrow, I’ll bring you a special combined US/Europe edition of the Wire.

Speak then.

Craig

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Also of note (may require subscriptions)

California pension banks on rising dealmaking to lift below-average PE distributions: Orange County Employees Retirement System's private equity portfolio generated 6.5% of distributions over the past year – a figure 'notably lower' than expected. (Private Equity International)

Multiple funds in market – headache or ‘high-class problem’? A growing number of managers are raising several funds simultaneously, raising the spectre of cannibalisation. (Infrastructure Investor)

Compliance should have ‘seat at the table’ at GPs, attendees say: Forum attendees stress that co-ordination between departments is crucial. (Private Funds CFO)

Reputation matters most for companies choosing PE owners – study. Portfolio companies increasingly want to 'work with the best of the best', according to research from consultancy firm Nepean. (Buyouts)

NZ Super Fund eyes NZ$200bn by doubling every decade: Incoming NZ Super Fund joint chief investment officer Will Goodwin talks with Agri Investor about the future of New Zealand’s sovereign wealth fund, its plans to transform farmland, and the fund’s total portfolio approach.

“With inflation now seemingly under control, the Bank of England has begun to cut interest rates and there appears to be a greater degree of political stability, with the first budget of the new government out of the way. Sentiment among dealmakers is improving and we therefore expect an uplift in activity in 2025.”

— James Livingston, partner and co-head of private equity, Foresight Group

Today's letter was prepared by Craig McGlashan

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