Hello, Hubsters. MK Flynn here in New York with the US edition of the Wire. I hope you’re feeling rested and refreshed this morning after the long Thanksgiving weekend! As the year winds down, at PE Hub we’re looking back to reflect on the most important trends in private equity dealmaking in 2024, and we’re looking forward with insights on what’s likely to come in 2025. Today, we’re looking ahead to the potential impact on PE deals of higher tariffs on goods from China, Canada, Mexico and others. To explore which sectors are most exposed to tariffs and which are most resilient from them, I turned to Brad Haller, senior partner, and Jeremy Tancredi, partner, at advisory firm West Monroe. See my interview with them, below. And in deal news, Astorg announced earlier this morning that it has completed its take-private of Hamilton Thorne. The Luxembourg-based PE firm also announced that it bought Cook Medical Reproductive Health and is combining the two companies, which specialize in assisted reproductive technology. PE Hub’s Nina Lindholm spoke with managing directors Olivier Lieven and Tobias Nordblom about the deal in an exclusive interview. I’ll close with a reminder about our Deal of the Year awards. “Tariff-resilient” Tariffs are top of mind for private equity firms, many sources have told PE Hub. For insights on how tariff increases may affect dealmaking in 2025, we turned to Brad Haller, senior partner, and Jeremy Tancredi, partner, at West Monroe. The Chicago-based business and technology consultancy advises PE firms and strategic buyers on transactions and value creation strategies and has worked on over 7,000 deals, representing more than $350 billion in deal value, since its founding in 2002.
Here’s a brief excerpt from my interview:
What would you consider “tariff-resilient” acquisitions? Brad Haller: Tariff-resilient acquisitions are typically service-based businesses – whether B2B, B2C, or healthcare services – that operate primarily within the United States. These businesses are less exposed to the risks of international trade and tariffs. However, there’s still a level of uncertainty. Given the typical PE investment horizon of five to seven years, a future administration could remove tariffs, potentially impacting the attractiveness of these investments overnight. Jeremy Tancredi: Another area to consider is domestic transportation and logistics. If tariffs push more companies to source and manufacture products in the US, there will be a lot of demand for local shipping capacity. That could make these kinds of investments very appealing. To read the full interview, upgrade to the premium edition of the Wire. And for more insights on the potential impact of the new administration on private equity dealmaking, see: • What’s ahead for dealmakers under the new administration?EQT’s Eric Liu, OEP’s Greg Belinfanti, Riverside’s Béla Szigethy and Stewart Kohl weigh in • Carlyle CEO Harvey Schwartz: End of election uncertainty is ‘a catalyst for IPOs, M&A’ • Election reaction: Dealmakers expect favorable tax policies, eased regulations to fuel deal pipeline
Deal of the day With one out of every six adults worldwide experience infertility according to the World Health Organization, the potential market assisted reproductive technology (ART) is large.
Earlier this morning, Astorg announced the completion of its take-private of Hamilton Thorne and the parallel acquisition of Cook Medical Reproductive Health to create a combined ART company. Managing directors Olivier Lieven and Tobias Nordblom told PE Hub’s Nina Lindholm about their value creation plans for the combined business, which includes M&A and a new management team, in an exclusive interview.
Subscribers to the premium edition of the Wire may read more on the story. Deal of the Year Awards Before I sign off, I want to share a brief reminder about our Deals of the Year Awards. PE Hub is now accepting nominations for the 35th annual Deal of the Year Awards, which honor exceptional buyouts that were fully or mostly realized in 2024. The deadline for submission is Friday, January 10, 2025. Winners will be selected in six categories, plus an overall winner, and the results will be published on pehub.com in March. PE Hub’s Deal of the Year Awards 2025 categories are: • Large-Cap North America – recognizing the sale of a company with an enterprise value at the time of the exit of $1 billion or more • Large-Cap Europe – recognizing the sale of a company with an enterprise value at the time of the exit of $1 billion or more • Mid-Cap North America – recognizing the sale of a company with an enterprise value at the time of the exit of $200 million to $1 billion • Mid-Cap Europe – recognizing the sale of a company with an enterprise value at the time of the exit of $200 million to $1 billion • Small-Cap North America – recognizing the sale of a company with an enterprise value at the time of the exit of $100 million to $200 million • Small-Cap Europe – recognizing the sale of a company with an enterprise value at the time of the exit of $100 million to $200 million • Deal of the Year – recognizing one of the category winners as the best LBO exit of 2024. This will be given to the single deal that stands out for its innovation and execution. There is no separate nomination for this category. Send in your nominations today! On the Wire, Nina Lindholm will bring you the Europe edition tomorrow, and Obey Martin Manayiti will bring you the US edition. As always, I’d love to hear from you at mk.flynn@pei.group. Cheers,
MK Read the full Wire commentary on PE Hub ... | 