Why BC Partners brought Apollo into the PetSmart fold; plus new add-on deals

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Why BC Partners brought Apollo into the PetSmart fold; plus new add-on deals

Good morning, Hubsters!

It’s Rafael Canton filling in for Chris Witkowsky for the Wednesday edition of the Wire.

This morning, we’ll take a look at a Deep Dive into PetSmart and see how it’s grown since BC Partners took it private in 2015 and what lies ahead for the pet retailer now that Apollo has become a minority stakeholder. I spoke with folks from BC and Apollo to get the story.

In addition to that, we have deal news from this morning, including Align Capital Partners-backed Marco Rubber & Plastics is acquiring its fifth add-on.

We also have a look at a recent deal from yesterday by ABC Technologies, an Apollo- and Oaktree Capital Management backed maker of plastics in the auto industry.

Finally, we have a new private equity firm, Kava Equity Partners, which was formed by the Southern Ute Indian Tribe Growth Fund.

Minority sale

In this current climate, PE firms are still trying to figure out exit strategies. With bid/ask negotiations unable to find equilibrium, firms are looking for alternative strategies.

I wrote for PE Hub about PE firm BC Partners bringing in Apollo Global Management as a strategic minority investor for pet retail chain PetSmart.

Custom cleanings

This morning, Align Capital Partners-backed Marco Rubber & Plastics announced it is acquiring its fifth add-on, American Seal & Packing, a distributor of specialty O-rings, seals, gaskets and vee packing and based in Santa Ana, California.

Read more on the deal in the subscriber version of the Wire.

A deal as easy as 1-2-3

Apollo- and Oaktree Capital Management-backed ABC Technologies agreed to acquire Plastikon Automotive, an auto interiors, assemblies and electric vehicle battery housing supplier from Hayward, California-based Plastikon Industries.

Find out the deal size in the full version of the Wire.

Kava Equity Partners

The Southern Ute Indian Tribe Growth Fund announced this morning that it has formed a new investment firm named Kava Equity Partners. The firm has hired Peter Shepard as assistant operating director and James Dudley as managing director.

That’s it from me today. MK Flynn will bring you the Wire tomorrow.

If you have any thoughts on bid/ask, please email me at rafael.c@pei.group.

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

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From trailblazing dealmakers to asset gathering giants: The changing face of European private equity. Guy Hands, founder of Terra Firma, who stepped down from his post in July, shares lessons learned in his nearly 30 years of investing and warns of the decline of the dealmaker in favour of institutionalisation. (Private Equity International)

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