Industry Update: Food and Beverage M&A Update – May, 2017

May, 2017

For 2016, total U.S. announced transactions of 380 deals are exceeding 2015 record levels of 351.

Select recent notable publicly announced M&A transactions:

– Peakstone advises PepperJax Grill on sale of company to TA Associates for an undisclosed amount.

– Peakstone advises Clearbrook Farms on sale of company to Glencoe for an undisclosed amount.

– Charoen Pokphand Foods Public Company Limited (SET:CPF) acquired Bellisio Foods, Inc. for approximately $1.08 billion.

– Mott’s, LLP acquired BAI Brands LLC for approximately $1.7 billion.

– Reckitt Benckiser Group plc (LSE:RB.) acquired Mead Johnson Nutrition Company (NYSE:MJN) for approximately $19.67 billion.

– Tyson Foods, Inc. (NYSE:TSN) acquired AdvancePierre Foods Holdings, Inc. (NYSE:APFH) for approximately $4.44 billion.


Closed Deal Announcement – Peakstone Advises HVAC Service Provider on Sale to Strategic Buyer

May, 2017. Peakstone served as exclusive M&A advisor to Thornton Service, Inc. on its sale to Service Logic, a portfolio company of Sterling Investment Partners.  Thornton Service, Inc. is a leading provider of commercial HVAC service solutions to organizations in the Washington D.C. metropolitan area.  Specializing in preventive maintenance and repair of commercial heating and cooling systems, Thornton Service supports a range of markets, including healthcare, financial, religious, airports, labs, and mission critical data centers, providing both full service and preventive, maintenance-only HVAC contracts to owner-occupied and managed buildings.

Service Logic, headquartered in Charlotte, North Carolina, (www.servicelogic.com) is a provider of mission-critical services for HVAC systems, chilled water systems and building automation and controls to commercial, industrial and institutional clients.  Through its 1,400 dedicated employees, the Company provides a comprehensive suite of solutions to improve the energy efficiency and sustainability of its clients’ facilities.

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:

Stephen Sleigh, Managing Director, 312-346-7318, ssleigh@peakstone.com

 

About Peakstone

The Peakstone Group is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


Industry Update: Automotive M&A Update – April, 2017

April, 2017

For 2016, strategic buyers accounted for 88% of Automotive M&A transactions. During 2015, strategic buyers accounted for 87% of the transactions.

Select recent notable publicly announced M&A transactions:

– 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: Technology and Software Industry Insight- April, 2017

April, 2017

For 2016, strategic buyers accounted for 91% of technology and software M&A transactions. During 2015, strategic buyers accounted for 95% of the transactions.

Select recent notable publicity announced M&A transactions:

– Cisco Systems, Inc. (NasdaqGS:CSCO) acquired AppDynamics, Inc. for approximately $4.03 billion.

– Siemens Industry, Inc. acquired Mentor Graphics Corporation for approximately $4.82 billion.

– Micro Focus International plc (LSE:MCRO) acquired Hewlett Packard Enterprise Company, Software Business for approximately $8.73 billion.

– Inception Parent, Inc. acquired Rackspace Hosting, Inc. for approximately $4.95 billion.

– Oracle Corporation (NYSE:ORCL) acquired NetSuite Inc. for approximately $7.08 billion.

– Verizon Communications Inc. (NYSE:VZ) acquired Yahoo! Inc., Operating Business for approximately $4.48 billion.

– Microsoft Corporation (NasdaqGS:MSFT) acquired LinkedIn Corporation for approximately $29.31 billion.


Industry Update: Restaurant Update: Spotlight on Fast Casual – April, 2017

April, 2017

For announced transactions, restaurant multiples saw a modest increase from 0.9x revenue in 2016 to 1.3x revenue in year-to-date 2017.

Recent notable publicly announced M&A transactions:

– Peakstone advises PepperJax Grill on sale of company to TA Associates.

– JAB Holdings B.V. entered into an agreement to acquire Panera Bread Company for approximately $7 billion. The transaction is expected to close during the third quarter of 2017.

– Darden Restaurants, Inc. acquired Cheddar’s Casual Cafe, Inc. for approximately $780 million.

– Oak Hill Capital Partners acquired Checkers Drive-In Restaurants for approximately $525 million.

– Restaurant Brands International Inc. acquired Popeyes Louisiana Kitchen, Inc. for approximately $2 billion.

– Golden Gate Capital acquired Bob Evans Farms, LLC for approximately $565 million.

– Cortland Capital Market Services LLC entered in an agreement to acquire Garden Fresh Restaurant Corp. for approximately $98 million.

– REINS international Inc. agreed to acquire Reins International (USA) Co Ltd for approximately $87 million.

– BDT Capital Partners made a significant investment in Lou Malnati’s for an undisclosed sum.

– Roark Capital Group acquired majority stake in Jimmy John’s Franchise, LLC for an undisclosed amount


Closed Deal Announcement- Peakstone serves as M&A Advisor on Cross-Border Sale of Alden & Ott to hubergroup

April, 2017. Peakstone served as exclusive M&A advisor to Alden & Ott on its sale to hubergroup. Headquartered in Arlington Heights, IL, Alden & Ott is an industry leading, all-purpose ink manufacturer that develops custom solutions for both the offset and flexo printing markets.  Alden & Ott has expertise in heat-set inks, non-heat-set inks, ultra violet inks, flexo inks, and sheet fed inks for use in various multi-color presses on paper, plastic, and board substrates.

Headquartered in Germany, hubergroup is one of the world’s leading specialists for printing inks, coatings and press room auxiliaries, currently comprising 40 companies with 130 sites worldwide generating sales of approximately $885 million.  The acquisition of Alden & Ott will significantly increase hubergroup’s portfolio of ink products serving the growing packaging market.

“Joining the global hubergroup family will bring many benefits to our existing customers, including access to their technical knowledge base, expanded product lines, security of supply and an instantly expanded geographical footprint,” said Tom Alden, president of Alden & Ott. “We celebrate the 60 year anniversary of our founding in 2017 and believe that now is the right time to transition our family ownership. Peakstone negotiated a transaction with a large, multinational industry leader that met the financial objectives of our shareholders and was an invaluable partner throughout the sale process.”

Terms of the transaction were not disclosed.

The press release can be found at www.hubergroup.net/news.php

For additional information about this transaction, contact:

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

Mark Horita, Managing Director, 312-204-7300, mhorita@peakstone.com

 

About Peakstone

The Peakstone Group is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


Closed Deal Announcement – Peakstone Advises on Sale of Healthcare Services Company

March, 2017. Peakstone served as exclusive M&A advisor to The Service Center on its sale to The Linde Group. The Service Center is an innovative, market leading, regional provider of medical oxygen and respiratory equipment repair services to medical providers, primarily to the multi-billion dollar and growing home medical equipment market. The Linde Group is a world-leading gases and engineering company with approximately 65,000 employees working in more than 100 countries and estimated revenues of $20 billion.

“The purchase of The Service Center is part of Linde’s commitment to expand our services to meet our customers’ needs and to invest for growth in the Americas,” said Maria Iglesias, Head of Linde Healthcare.  “Combining The Service Center’s customer-focused culture and capabilities with Linde’s world class line of medical gases and devices create significant advantages that enhance and broaden our services. It strengthens our ability to be a complete, best-in-class, respiratory solutions provider for our customers.”

“Over its 19 year history, The Service Center has identified, built and refined a business model that brings real value to our customers,” said Jeff Addante, President of The Service Center.  “We recognize Linde’s commitment to quality growth and believe this deal represents a logical next step in The Service Center’s growth and expansion.”

Addante added, “The Peakstone team was invaluable to the transaction process. They developed and executed on a successful strategy to negotiate a great outcome for our shareholders.”

Click here for the press release

Terms of the transaction were not disclosed.
For additional information about this transaction, contact:
Steve Royko, Managing Director, 608-236-4490, sroyko@peakstone.com

 

About Peakstone

The Peakstone Group is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


Closed Deal Announcement – Peakstone advises on Automotive Finance & Insurance acquisition

February, 2017. Peakstone served as advisor to Kinderhook Industries on its December 2016 acquisition of NitroFill. Headquartered in Pompano Beach, FL, NitroFill is a leading developer and marketer of patented nitrogen generation and inflation systems for passenger and truck tires as well as related tire warranties, customer benefit programs and reseller customer retention programs. NitroFill’s flagship product offering is a Tire Protection Plan program, sold primarily to and through new car dealerships, leveraging the Company’s patented nitrogen tire inflation product and unique product warranty, which includes: tire repair and replacement coverage, roadside assistance and other benefits, a comprehensive CRM solution to increase customer traffic and tire and service sales while providing significant value to end user consumers.

Peakstone has built a leading Automotive Finance & Insurance industry practice led by Brad Curtis, Managing Director.  Brad has advised on many Automotive Finance & Insurance industry transactions for clients including agencies, third-party administrators, and specialty product companies.

Terms of the transaction were not disclosed.

About Peakstone

The Peakstone Group is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


Stuart J. Lissner joins The Peakstone Group as Managing Director

February, 2017. Stuart J. Lissner is a Managing Director at Peakstone Group and will focus on deal origination and execution in a number of areas including power, energy, oil and gas, manufacturing, transportation and other industries.  Stuart also has expertise in distressed M&A transactions.

Stuart has over 20 years of experience as a private equity sponsor, distressed debt investor, and workout professional.  As the co-founder and managing partner for Apex Fundamental Partners, a lower middle market private equity sponsor, Stuart focuses on managing Apex’s energy platform companies and on finding add-on opportunities, as well as new platform investments.

Stuart began his asset management career as a senior asset manager and workout professional for PPM America, Inc., a $100 billion global investment firm. Stuart was a managing director and workout professional in the special investments group that invested PPM’s $1.3 billion of fund capital in the distressed debt, high yield bonds, leveraged bank loans, and private equity in over 100 different companies across most industry sectors. Some of these specific industries and sub-industries included: energy (oilfield services, oil exploration and production, merchant energy, back-up power), metals, recreational vehicles, pulp and paper, department stores, supermarkets, plastics, rental companies, telecom, packaging, coupon processing, agriculture, food, gaming, and healthcare.

Stuart also partnered with Lissner Associates Ltd., his family’s management consulting firm, to provide turnaround consulting services to underperforming businesses.

Stuart has negotiated, structured and/or restructured numerous transactions including:
– The acquisition of a $17 million oilfield services company.

– The restructuring, capital raise and acquisition of an oil and gas exploration and production company, raising over $200 million in new debt financing to facilitate the transaction.

– The restructuring and acquisition of a non-performing $500+ million recreational vehicle business with a diverse and contentious group of debt and equity holders.

Stuart is passionate about his role as board member of Children’s Oncology Services, Inc. (AKA “Camp One Step”), which offers camp experiences and other excursion programs that allow children with cancer to just be kids.

Stuart is a CPA and an attorney with a Bachelor of Science in Management from Tulane University, A.B. Freeman School of Business and a Juris Doctor from Loyola University of Chicago School of Law.

About Peakstone
The Peakstone Group is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


Industry Update: Consumer & Retail Industry M&A Update- January, 2017

January, 2017.

For 2016, strategic buyers accounted for 85% of Consumer and Retail M&A transactions. During 2015, strategic buyers accounted for 90% of the transactions.

Many Consumer and Retail categories continue to outperform the S&P 500.

Select recent notable publicly announced M&A transactions:

– Symantec Corporation signed a definitive agreement to acquire LifeLock, Inc. for approximately $2.3 billion.

– Samsung Electronics America, Inc. entered into a definitive agreement to acquire Harman International Industries, Incorporated for $8 billion in cash.

– Bain Capital L.P. and Bow Street, LLC entered into a definitive agreement to acquire Blue Nile Inc. for approximately $490 million.

– American Axle & Manufacturing Holdings Inc. entered into a definitive agreement to acquire Metaldyne Performance Group Inc. for approximately $1.5 billion.

– Polaris Industries Inc. entered into an agreement to acquire Transamerican Auto Parts Company, LLC for approximately $670 million.

– Bass Pro Group, LLC entered into a definitive agreement to acquire Cabela’s Incorporated for $4.6 billion.

– Eldorado Resorts, Inc. entered into a definitive merger agreement to acquire Isle of Capri Casinos, Inc. for approximately $990 million.