Industry Update: Technology and Software M&A Update – June, 2019

June, 2019

For 2019 YTD, strategic buyers accounted for 98% of Technology M&A transactions. During 2018, strategic buyers accounted for 92% of the transactions.

Select recent notable publicly announced M&A transactions:

– FIS acquired WorldPay for $43.6 billion.

– Blackstone Group acquired Ultimate Software for $10.9 blillion.

– Fiserv acquired First Data for approximately $41.7 billion.

– SAP acquired Qualtrics for approximately $8.0 billion.

– IBM acquired Redhat for approximately $35.6 billion.

Industry Update: Packaging M&A Update – June, 2019

June, 2019

For 2019 YTD, strategic buyers accounted for 90% of the Packaging M&A transactions while financial buyers made up the difference. During 2018, strategic buyers accounted for approximately 84% of the transactions.

Select recent notable publicly announced M&A transactions:

– One Madison Group acquires Ranpak for $950 million.

– Tekniplex acquires Amcor for $215 million.

– Greif acquires Caraustar for $1.8 billion.

– Cascades acquires Urban Forest for $37 million.

– Universal Forest Products acquires Pak-Rite for $15 million.

Industry Update: Warehousing, Transportation and Logistics M&A Update – June, 2019

June, 2019

For 2019, strategic buyers have accounted for 88% of Warehousing, Transportation and Logistics M&A transactions with financial buyers making up the difference. During 2018, strategic buyers accounted for approximately 81% of the transactions.

Select recent notable publicly announced M&A transactions:

– Variant Equity acquires Coach USA for $270 million.

– Odyssey acquires American Fast Freight for $465 million.

– ATSG acquires Omni Air International for $845 million.

– Blackstone acquires Gramercy Property Trust for $7.5 billion.

– Prologis acquired DCT Industrial Trust for $8.4 billion.

– Kirby Corporation acquired Higman Marine, Inc. for $419 million.

– Penske Automotive Group, Inc. (NYSE:PAG); MBK USA Commercial Vehicles Inc. acquired Penske Truck Leasing Co., L.P. for approximately $670 million.

– EQT Partners AB acquired Global Gateway South Terminal for approximately $820 million.

– Scorpio Tankers Inc. (NYSE:STNG) acquired Navig8 Product Tankers Inc. for approximately $1.18 billion.

– Knight Transportation, Inc. (NYSE:KNX) acquired Swift Transportation Company (NYSE:SWFT) for approximately $2.97 billion.

– Grupo México Transportes S.A. de C.V. acquired Florida East Coast Holdings Corp. for approximately $2.1 billion.

Industry Update: Pet M&A Update – June, 2019

June, 2019

In 2019 YTD, strategic buyers accounted for 83% of Pet M&A transactions while financial buyers making up the difference. During 2018, strategic buyers accounted for approximately 97% of the transactions..

Select recent notable publicly announced M&A transactions:

– Smucker’s acquired Ainsworth for approximately $1.9 billion.

– Hines Resource Group acquired Spectrum Brands for approximately $2.3 billion.

– General Mills, Inc. acquired Blue Buffalo Pet Products, Inc. for approximately $8.3 billion.

– The Riverside Company acquired Petstages for an undisclosed amount.

– The Riverside Company acquired Bionic for an undisclosed amount.

Industry Update: Consumer and Retail M&A Update – June, 2019

June, 2019

For 2019 YTD, strategic buyers accounted for 65% of Consumer and Retail M&A transactions. During 2018, strategic buyers accounted for 69% of the transactions.

Select recent notable publicly announced M&A transactions:

– Tivity Health acquired Nutrisystem for $1.4 billion.

– Platinum Equity acquired Jostens for $1.3 billion.

– ARG Holdings acquired Sonic for $2.3 billion.

– Vintage Investment Partners acquired Rent-A-Center for $1.3 billion.

– Marriott Vacations Worldwide Corp. acquired ILG Inc. for about $5.8 billion.

– Tenneco acquired Federal-Mogul for $5.4 billion.

– Peakstone advises Erehwon Mountain Outfitter on sale of company to Camping World Holdings, Inc. (NYSE:CWH) for an undisclosed amount.

– Arby’s Restaurant Group Inc. acquired Buffalo Wild Wings Inc. for approximately $2.9 billion.

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– BPS Direct, L.L.C. acquired Cabela’s Incorporated (NYSE:CAB) for approximately $8.67 billion.

– Circle K Stores Inc. acquired CST Brands, Inc. (NYSE:CST) for approximately $6.09 billion.

– Rye Parent Corp. acquired Panera Bread Company (NasdaqGS:PNRA) for approximately $7.66 billion.

Industry Update: Automotive M&A Update – June, 2019

June, 2019

For 2019 YTD, strategic buyers accounted for 87% of Automotive M&A transactions. During 2018, strategic buyers accounted for 86% of the transactions.

Select recent notable publicly announced M&A transactions:

– Constellium acquired UACJ for $140 million.

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– Winnebago Industries, Inc. acquired Grand Design RV for approximately $500 million.

– Polaris Industries Inc. (Delaware) acquired TAP Automotive Holdings, LLC for approximately $670 million.

– Thor Industries, Inc. (NYSE:THO) acquired Jayco, Inc. for approximately $580 million.

– Vitro, S.A.B. de C.V. (BMV:VITRO A) acquired Pittsburgh Glass Works LLC for approximately $310 million.

Industry Update: IT Services M&A Update – June, 2019

June, 2019

In 2019 YTD, strategic buyers accounted for 100% of IT Services M&A activity; during 2018, strategic buyers accounted for approximately 90% of the transactions.

Select recent notable publicly announced M&A transactions:

– Intercontinental Exchange acquires Simplifile for $335 million.

– Fidelity National Information Systems acquires Worldplay (NYSE: WP) for $43.6 billion.

– Mastercard Incorporated acquires Trans-Fast Remittance for $450 million.

– Juniper Networks acquires Mist Systems for $405 million.

– ACI Worldwide acquires SpeedPay for $750 million.

– CACI acquires LGS Innovations $750 million.

– Huntington Ingalls Industries acquires Fulcrum IT Services for $195 million.

Industry Update: Food and Beverage M&A Update – June, 2019

June, 2019

For 2019 YTD, strategic buyers accounted for 86% of Food and Beverage M&A transactions. During 2018, strategic buyers accounted for 91% of the transactions.

Select recent notable publicly announced M&A transactions:

– McKee acquires Prairie City Bakery (represented by The Peakstone Group) for an undisclosed amount.

– Ferrero acquires Kellogg’s cookie and fruit business for $1.3 billon.

– Apollo Global Management acquires Smart & Final for $2.1 billion.

– Symrise acquires International Dehydrated Foods $900 million.

– Virgo invests in 80 Acres Farms (represented by The Peakstone Group) for an undisclosed amount.

Peakstone Closed Deal Announcement: Veterinary Hospital Growth Financing

May, 2019. Peakstone served as exclusive financial advisor to The Animal Doctor in connection with the Animal Doctor’s financing to support the Company’s expansion initiatives.

Founded in 1996, The Animal Doctor is an AAHA-accredited full-service veterinary hospital, offering complete medical and surgical care for pets. The Company has several facilities in the northern Chicago suburb.

Terms of the transaction were not disclosed.

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Closed Deal Announcement: Prairie City Bakery on Sale to McKee Foods

May, 2019. Peakstone served as exclusive financial advisor to Prairie City Bakery Company (“Prairie City” or the “Company”) in connection with its sale to McKee Foods Corporation. With annual sales of approximately $1.4 billion, McKee Foods Corporation is best known for its portfolio of Little Debbie brand of snack cakes, America’s leading snack cake brand. This transaction demonstrates Peakstone’s ability to access large, billion-dollar strategic buyers on behalf of its clients.

Prairie City was co-founded by President and Chief Executive Officer, William Skeens, in 1994.  Starting with one product, Muffin Tops, today Prairie City Bakery offers more than 125 varieties of individually-wrapped and bulk food service products, including Big Cinnamon Rolls, danish, Down Home Cookies, Classic and Premium Donuts, Donut Holes in a Cup and Ooey Gooey Butter Cakes. They sell into the convenience, food service and in-store bakery channels. “Peakstone’s dedicated Food and Beverage industry team executed a highly targeted marketing process that resulted in an outstanding outcome,” said Bill Skeens. “They understood the baking industry and our business. They saw the opportunity presented by a combination between McKee and Prairie City, and executed an efficient transaction process. Peakstone has a dedicated practice covering the Food & Beverage industry and completes numerous transactions in the F&B sector each year.“

McKee Foods Corporation, a family bakery, is a privately-held company based in Collegedale, Tennessee.  In addition to Little Debbie, McKee Foods’ brands include Sunbelt Bakery® snacks and cereals and Fieldstone® bakery food products. Founded in 1934, McKee employs more than 6,200 people.  Mike McKee, President and Chief Executive Officer, commented, “We sought to acquire Prairie City Bakery because they built a great brand with quality, innovative products that satisfy specific retail customer needs. We want to continue that success by following the same great strategy with the same great management team.  We are excited to continue building on this success.

Press Release: Click Here

Terms of the transaction were not disclosed.

For additional information please contact:

Cathy Jaros, Managing Director, 312-262-7735, cjaros@peakstone.com

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.