Middle Market Monthly - June 2016
MIDDLE MARKET MONTHLY
British Middle Market Accelerates Growth, Creating 7,500 New Jobs
Tesla’s Elon Musk Makes Passionate Bid to SolarCity Plus: U.S. middle market lending set to expand in second half of 2016 Revenue in the U.S. Middle Market Continues to Expand at a Healthy Pace and all the Latest Middle Market News and Deals Middle Market Monthly - June 2016
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Middle Market Monthly - June 2016
MIDDLE MARKET MONTHLY
Welcome to the latest issue of Middle Market Magazine In this latest issue of your one-stop guide to the latest news, information and comment on the Middle Market around the world, we focus on the latest deal activity in the sector. This includes the news that renowned anti-virus provider Avast has acquired AVG Technologies N.V., a developer of business, mobile and PC device security software applications. We also provide more details on Melrose Industries’ agreement to buy Nortek, the U.S. ventilation and home security products maker, for a sum of $2.81 billion. The US Middle Market is another key focus, as we look into predictions of revenue increases and data from the current market which points towards significant growth. Growth in the British Middle Market is also steady despite Brexit issues, as new research from Investec indicates. We hope you enjoy this issue.
What's Inside... 4. News 8.
Avast Announces Agreement to Acquire AVG for $1.3B
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British Melrose purchases U.S. Nortek
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British Middle Market Accelerates Growth, Creating 7,500 New Jobs
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Danone to Acquire WhiteWave
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More Than A Third Of M&A Professionals Believe Online Deal Sourcing Will Revolutionise The M&A Industry
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Revenue in the U.S. Middle Market Continues to Expand at a Healthy Pace
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Tesla’s Elon Musk Makes Passionate Bid to SolarCity
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U.S. middle market lending set to expand in second half of 2016
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NEWS
Devbridge Group Announces New Toronto Office Company expands to address growing need for software engineering and design Technology consultancy Devbridge Group announced the expansion of its North American operations with the opening of its new Canadian office. Located in Toronto, the new office will focus on servicing the company's growing list of clients and fill a current gap for digital product engineering and design among financial services, manufacturing and technology companies in the Canadian market. Devbridge Group is a technology consultancy and strategic partner to upper middle market companies and large enterprises in the Financial Services, Manufacturing and Technology sectors. The company accelerates product to market, engages customers, and inspires employees by combining an agile approach, powerful UX/UI design and software engineering expertise with complete transparency. Since its inception in 2008, the company has nearly doubled in size each year and has appeared on the Inc. 5000 list three years running. The company has offices in the United States, Lithuania, and Canada.
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"Our decision to expand Devbridge Group into Canada was based on a market need for Product Thinking – combining user experience and engineering services to deliver software to market quickly. Not many technology companies operate under this model, and Devbridge Group is able to bridge that gap," said Aurimas Adomavicius, President of Devbridge Group. The Toronto office will be Devbridge Group's fourth office location and is quickly growing to meet client demand. "We have an outstanding portfolio and are always looking for like-minded individuals who want to make great things for our clients," said Mohan Gulati, Product Manager and head of Devbridge Group's Toronto office. Over the past eight years, Devbridge Group has nearly doubled in size each year and plans to expand further with new locations to advance the company's success.
Middle Market Monthly - June 2016
Madison Realty Capital Sells Williamsburg Multifamily Property for $22.4M Following Extensive Renovations and Repositioning Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, announced the sale of 265-267 South 2nd Street, a multifamily rental property in Williamsburg, Brooklyn, for $22.4 million. MRC acquired the 6-floor, 35-unit, 22,800 square foot building for $9.7 million in April 2013 and embarked on a renovation and repositioning plan aimed at adding significant value. Josh Zegen, Managing Principal for MRC, made the announcement and expressed his excitement about the deal. "We're pleased to announce this successful exit from one of MRC's equity investments," Zegen said. "When we acquired it, this property needed modernization to improve its position in the competitive Williamsburg rental market. Our construction and asset management teams were successful in creating a modernized multifamily product that was appealing to investors. There was significant interest in the property from a variety of potential purchasers, and we were able to achieve a strong result."
Following the initial acquisition, MRC undertook significant renovations, including new kitchens with granite countertops and stainless steel appliances, and updated bathrooms with new tile and fixtures. MRC also added recessed lighting, hardwood floors, and crown moldings in the living space, and in some instances reconfigured units to maximize space usage. Open-air terraces and ground floor outdoor spaces were created for select units. Williamsburg continues to thrive as Brooklyn's leading live-work-play neighbourhood. Given this dynamic, investors and developers increasingly view Williamsburg as a stable long-term play.
Allcare Medical to Merge with National HME Allcare Medical, LLC has merged with National HME, Inc. This acquisition furthers National HME's reach as the nation's largest provider of technology enabled durable medical equipment (DME) solutions for the hospice industry. Over the past 11 years Allcare Medical has established itself as the foremost service oriented provider throughout the states of South Carolina and Georgia. The announcement was made by Bill Monast, President and CEO of National HME and Ondrej Sliva, CEO of Allcare Medical. Geoffrey Raker, Partner at Tailwind Capital, a growth oriented middle-market private equity firm and the lead investor in National HME said, "This key acquisition aligns with our vision for the continued growth of National HME, and further expands our ability to provide the most comprehensive DME solution to any hospice in the country." "We are excited to partner with National HME, the market leader of our industry. Joining forces creates strong synergies as we continue with our shared mission to set the new standard in hospice medical equipment services," says Ondrej Sliva. Bill Monast, President and CEO of National HME said, "The addition of Allcare expands our presence in the Southeast and supports our strategy of providing high quality products and services to our hospice clients and the patients they serve." This latest deal marks the second major acquisition this year for National HME.
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NEWS
Quad-C Management Announces Investment in Rainbow Early Education Quad-C Management, a leading middle market private equity firm, has announced it has closed on an investment in Rainbow Early Education, a leading provider of early education services. Rainbow management, led by Patrick Fenton, maintains significant ownership in the business. Terms of the deal were not disclosed. Based in Troy, Michigan, Rainbow is a leading early education provider delivering high-quality education and care to over 10,000 students, parents and employer partners across 120 schools in twelve states. “We spent over a year vetting potential partners and felt that Quad-C’s strong industry knowledge and experience with owner-operators was the best fit for us,” said Pat Fenton, CEO of Rainbow. “Having opened or acquired over 90 schools in the past six years, we decided that Quad-C’s substantial capital and industry and M&A expertise would allow us to accelerate our rapid growth even further.” “We were drawn to Rainbow because of its proven track record of developing and acquiring new schools and providing young children with a high-quality learning experience,” said Tim Billings, Partner at Quad-C Management. “Pat Fenton and his management team have done an excellent job building out the Rainbow platform in recent years, and we’re looking forward to supporting the company’s organic and acquisition-driven growth strategies going forward.”
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The Rainbow investment is the latest deal in the education and training sector for Quad-C. Recent education and training investments include Colibri, a leading provider of learning solutions to over 400,000 licensed professionals within the real estate, healthcare and personal care markets.
Middle Market Monthly - June 2016
Olympus Makes AmSpec -tacular Investment
TorQuest Closes Fund IV at $925 Million
Stamford, Connecticut-based Olympus Partners has acquired AmSpec Holding Corp., a leading provider of testing, inspection, and certification ("TIC") services for petroleum traders and refiners.
TorQuest IV will apply the firm's established and highly successful middle-market investment and operating strategy of partnering closely with management teams to create value through strategic change, operational improvements, and the successful integration of accretive add-on acquisitions.
The Company operates a network of more than 50 laboratories and inspection facilities in North America, South America, Europe, and Asia.
Founded in 2002, TorQuest Partners, is a Canadian-based manager of private equity funds. With more than C$2 billion of equity capital under management, TorQuest invests in middle market companies, and works in close partnership with management to build value.
"AmSpec has a unique business model that has led to significant organic growth, with customer service, turnaround time and lab capabilities serving as key differentiators. The company has an established presence in attractive markets with a broad, blue chip customer base," said Manu Bettegowda, Partner at Olympus. "We look forward to working with CEO Matt Corr and the rest of the AmSpec management team to help support the growth of the company through acquisitions and continued investment in the Company's facility network to expand to new customers and untapped geographies," added Jason Miller, Partner at Olympus. "We are enthusiastic about the opportunity to partner with Olympus as we embark on the next phase of our global expansion," said Matt Corr, CEO of AmSpec. "Together, we will continue to support our customers around
the world and build on the growth we have achieved." Founded in 1988, Olympus Partners is a private equity firm focused on providing equity capital for middle market management buyouts and for companies needing capital for expansion. Olympus is an active, long-term investor across a broad range of industries, including restaurants, consumer products, healthcare services, financial services and business services. Olympus manages in excess of $5.5 billion on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs. The acquisition of AmSpec marks Olympus' seventh investment out of its $2.3 billion sixth fund. The Olympus team included Manu Bettegowda, Jason Miller, Robby Polakoff and Mike Cueter. Olympus was represented by Jim Faley from Kirkland & Ellis. Debt financing was led by Antares Capital, Bank of Ireland, ING Capital, and NewStar Financial. Incline Equity Partners was the selling majority shareholder.
TorQuest Partners has announced the final closing of TorQuest Partners Fund IV, with $925 million of committed capital.
"We very much appreciate the ongoing trust and confidence of our limited partners," said Brent Belzberg, Senior Managing Partner. "We will continue to execute the same strategy with the same team that has delivered attractive investment returns for our partners, and established a strong reputation among business owners and management teams, and across the Canadian business and financial communities." The firm had set a target of $750 million for Fund IV, with a hard cap of $925 million.
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Middle Market Monthly - June 2016
Avast Announces Agreement to Acquire AVG for $1.3B Two Security Pioneers Unite to Strengthen their Global Leadership in Internet Security.
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vast Software, an industry-leading maker of the most trusted security software in the world, and AVG Technologies N.V. a developer of business, mobile and PC device security software applications, has announced that they have entered into a purchase agreement in which Avast will offer to purchase all of the outstanding ordinary shares of AVG for $25.00 per share in cash, for a total consideration of approximately $1.3B. Both companies are industry pioneers founded in the Czech Republic in the late 1980s and early 1990s, that expanded internationally in the 2000s, and now will be combining complementary strengths to position Avast for continued growth in the security industry. Avast is pursuing this acquisition to gain scale, technological depth and geographical breadth so that the new organization can be in a position to take advantage of emerging growth opportunities in Internet Security as well as organizational efficiencies. The technological depth and geographical reach will help Avast serve customers with more advanced security offerings in the core business and new innovations in emerging markets, such as security for IoT devices. Combining Avast’s and AVG’s users, the organization will have a network of more than 400 million endpoints, of which 160 million are mobile, that act as de facto sensors, providing information about malware to help detect and neutralize new threats as soon as they appear. This increase in scale will enable Avast to create more technically advanced personal security and privacy products. Avast Software is the maker of the most trusted mobile and PC security in the world, protects 230 million people and businesses with its security applications. In business for over 25 years, Avast is one of the early innovators in the security business, with a portfolio that includes security and privacy products for PC, Mac, Android and iOS, and premium suites and services for business. In addition to being top-ranked by consumers on popular download portals worldwide, Avast is certified by, among others, VB100, AV-Comparatives, AV-Test, OPSWAT, ICSA Labs, and West Coast Labs. Avast is backed by leading global private equity firms CVC Capital Partners and Summit Partners.
This transaction has been unanimously approved by the Management Board and Supervisory Board of Avast. The Management Board and Supervisory Board of AVG approved and support the transaction and recommend the offer for acceptance to the AVG shareholders.
“Combining the strengths of two great tech companies, both founded in the Czech Republic and with a common culture and mission, will put us in a great position to take advantage of the new opportunities ahead, such as security for the enormous growth in IoT.” “We are in a rapidly changing industry, and this acquisition gives us the breadth and technological depth to be the security provider of choice for our current and future customers,” said Vince Steckler, chief executive officer of Avast Software. “Combining the strengths of two great tech companies, both founded in the Czech Republic and with a common culture and mission, will put us in a great position to take advantage of the new opportunities ahead, such as security for the enormous growth in IoT.” “We believe that joining forces with Avast, a private company with significant resources, fully supports our growth objectives and represents the best interests of our stockholders,” said Gary Kovacs, chief executive officer, AVG. “Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses, alike. As the definition of online security continues to shift from being device-centric, to being concerned with devices, data and people, we believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing market.”
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Middle Market Monthly - June 2016
The transaction is structured as an all-cash tender offer for all outstanding ordinary shares of AVG at a price of $25.00 per share in cash. Avast plans to finance the transaction using cash balances on hand and committed debt financing from third party lenders. Avast has received a financing commitment of $1.685 billion from Credit Suisse Securities, Jefferies and UBS Investment Bank. In addition, Avast has contributed $150 million in equity investment to fund the transaction. The proposed transaction is not subject to a financing condition. The offer price represents a 33% premium over the July 6, 2016 closing price and a premium of 32% over the average volume weighted price per share over the past six months. The contemplated tender offer will be subject to certain shareholder approvals, the receipt of regulatory clearances, the tender of at least 95% of the outstanding ordinary shares of AVG or, if AVG shareholders approve the asset sale contemplated in the purchase agreement, the tender of at least 80% of the outstanding ordinary shares of AVG, and other customary closing conditions. Additionally, certain shareholders including funds affiliated with TA Associates, who hold approximately 13% of the issued and outstanding shares of AVG, respectively, have committed to support the transaction and tender their shares in the offer.
“We believe that joining forces with Avast, a private company with significant resources, fully supports our growth objectives and represents the best interests of our stockholders.”
If at least 95% of the outstanding ordinary shares of AVG are acquired in the contemplated tender offer, Avast expects to acquire the ordinary shares of AVG that were not tendered into the tender offer through the compulsory share acquisition process under Section 2:92a/2:201a of the Dutch Civil Code. If AVG’s shareholders appove the asset sale contemplated in the purchase agreement at the extraordinary general meeting of shareholders to be convened shortly by AVG and the tender offer is successfully completed with Avast acquiring less than 95% but at least 80% of the outstanding ordinary shares of AVG, then Avast plans to effect an asset sale pursuant to which Avast will acquire substantially all of the assets, and assume substantially all of the liabilities, of AVG promptly following the tender offer. Following the completion of the asset sale, AVG will be liquidated and the remaining minority shareholders of AVG will receive cash distributions with respect to each ordinary share owned by them equal to the per share cash consideration paid in the tender offer less any applicable dividend withholding tax or any other taxes. The offer will be described in more detail in a tender offer statement on Schedule TO to be filed by Avast and a solicitation/recommendation statement on Schedule 14D-9 to be filed by AVG. The transaction is expected to close sometime between September 15, and October 15, 2016, depending on the timing of regulatory review. Jefferies International Limited is acting as exclusive financial advisor, and White & Case LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors, to Avast. Morgan Stanley & Co. LLC is acting as financial advisor to AVG and Bridge Street Securities, LLC is acting as independent financial advisor to the supervisory board of AVG. Orrick, Herrington & Sutcliffe LLP and Allen & Overy LLP are acting as legal advisors to AVG.
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Middle Market Monthly - June 2016
British Melrose purchases U.S. Nortek
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elrose Industries has agreed to buy Nortek, the U.S. ventilation and home security products maker, for a sum of $2.81 billion. The acquisition is expected to be completed by the end of August, and signals the beginning of a new period for cross-Atlantic investment deals, with British companies taking advantage of lucrative opportunities in the wake of the Brexit decision. The last few months have been a critical time for the London-listed turnaround specialist, ever since the selling of utility meter manufacturer Elster in 2015. Now, in the wake of Britain’s decision to leave the European Union, the new deal could be part of an emerging trend for European companies to make acquisitions in the United States, as Britain’s decision to quit the European Union unsettles markets closer to home.
“the more uncertainty and weakness there is in Europe, the more attractive the U.S. is going to look. Brexit is one more reason that the U.S. looks relatively good to European firms.” According to Jeffrey Nassof, director at Freeman Consulting Services, “the more uncertainty and weakness there is in Europe, the more attractive the U.S. is going to look. Brexit is one more reason that the U.S. looks relatively good to European firms.” Melrose’s key decision shows that the company has shrugged off the impact of the key EU referendum decision, and has
defied the slide in value of sterling by raising its share price by more than 30pc as investors. While its premium listing on the stock exchange will be sacrificed in order to complete the takeover, Melrose will raise £1.6bn to fund the acquisition in a 12-for-one rights issue at 95p per share, and cover the rest with new debt. Analysis courtesy of Numis concur that Melrose would find “quick potential opportunities” in Nortek, which would allow them to improve two smaller businesses that has been struggling in a saturated market, as well as introducing it to a more global audience. More than 90 per cent of Nortek’s sales are in North America, and its products can already be found in an estimated 80 per cent of American households. Simon Peckham, Melrose’s chief executive, expressed great excitement. “It serves attractive end markets at good points in their cycle, with strong brands and market positions. Nonetheless there remains solid potential for further improvement under Melrose’s guidance. “Our ability to apply our industrial experience and investment expertise, as well as to liberate Nortek from its current capital structure will transform the prospects of the business.” Under the leadership of Melrose, Nortek’s product range will be refocussed, its supply chain, back office, and debt structure will be overhauled, all in a determined push to improve margins. Melrose said some of its institutional shareholders had already backed the deal and that Nortek investors controlling more than two thirds of the company had accepted its offer.
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Middle Market Monthly - June 2016
British Middle Market Accelerates Growth, Creating 7,500 New Jobs
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015 saw the middle market companies of the UK economy growing turnover by nearly 55 per cent over the previous five years, estimated to be valued at between £0.65 to £1.02 trillion. In fact, over the course of the 2014-5 Parliament, the middle market outperformed many other key areas, outstripping the FTSE 100. This news, accumulated in October 2015, prompted accountancy and business advisory firm BDO to call for middle market forms to be put at the heart of Westminster’s plans to rebalance the economy. This year, that trend is set to continue. The specialist bank Investec has found that the British economy continues to be driven forward by an elite group of rapidly-growing private mid-market companies. Across other European countries, including Germany, France and Italy, the number of middle market institutions represent only a very small number of companies, between 1.2 and 1.7 per cent. Despite this, the middle market is able to generate about one third of private sector revenue, and also employs about a third of each country’s workforce. According to the newly-published fourth Investec Mid-Market 100 list, the top 100 fastest-growing middle market companies currently nearly 26,000 people across the country. Compared to 2014, when total staff numbers stood at 17,870, these figures represent a rise of personnel by 42 per cent in the middle market. The same list also shows a clear rise in the average growth of the mid-market: the current top 100 companies achieved average growth of 44.6 per cent - a 10.4 per cent increase on average growth in the last ranking, published in November 2015. The growing significance of the middle market in the UK economy is reflected by the creation of the Mid-Market 100 List. se top-earning middle market companies are plotted out by Investec on the Mid-Market 100. As well as achieving greater growth overall, the bar has been raised for inclusion
in the top 100, reflecting the growing prominence of such companies. At present, inclusion on the coveted list means that companies have to achieve sustainable growth of at least 30.6 per cent; versus 25.4 per cent a year ago. To ensure the research captures sustainable growth, companies featured on the Mid-Market 100 are ranked on the four-year compound annual growth rate of turnover. The results are revealing and reflect a definite shift in the UK economy. By geographical region and industry, the SouthEast of England and Property saw the biggest percentage change in their share of high-growth companies, both of them increasing by 225 per cent since the previous list.
“the mid-market continues to be one of the most dynamic segments of the UK economy and it’s fantastic to see the pace of growth increasing, raising the bar to entry into the top 100.” Ed Cottrell, Head of Corporate Lending at Investec surmises that “the mid-market continues to be one of the most dynamic segments of the UK economy and it’s fantastic to see the pace of growth increasing, raising the bar to entry into the top 100. It’s especially good to see that more than a quarter of companies on the current list have appeared before – including five which were on the first list – demonstrating that high growth is an achievable long-term goal. “While London and the South-East have done particularly well this time, the four lists we have compiled so far have delivered a clear message of balance. The UK mid-market touches all sectors and all regions.”
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Middle Market Monthly - June 2016
Danone to Acquire WhiteWave Acquisition set to create a truly unique global leader strongly aligned with consumer trends for healthier and more sustainable eating and drinking options.
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anone and The WhiteWave Foods Company has announced that they have entered into a definitive merger agreement under which Danone will acquire WhiteWave for $56.25 per share in an all-cash transaction, representing a total enterprise value of approximately $12.5 bn, including debt and certain other WhiteWave liabilities. The transaction has been unanimously approved by the Board of Directors of both companies. Its price represents a premium of approximately 24 percent over WhiteWave’s 30-day average closing trading price ($45.43). The transaction is expected to close by the end of the year, subject to the approval of WhiteWave’s shareholders, regulatory approvals, and customary conditions. WhiteWave is a global company which generated $4 bn in sales in 2015 and has a portfolio of large and leading branded platforms in North America and Europe in high-growth, ontrend food and beverage categories which focus on Premium Organic Dairy, non-GMO, Plant-based alternatives to milk & yogurt, Fresh Foods, and Coffee Creamers. With a strong entrepreneurial spirit, WhiteWave has a successful track record of transforming categories and creating large scale brands. WhiteWave’s business includes highly recognized, category leading brands such as Silk®, So Delicious®, Vega™, Alpro®, Provamel®, Horizon Organic®, Wallaby Organic®, Earthbound Farm® and International Delight®. Since becoming a public company in 2012, WhiteWave sales have increased at a 19 percent compound annual growth rate through 2015, and WhiteWave has doubled its operating income during this period. Together, WhiteWave and Danone will create a truly unique global leader committed to addressing tomorrow’s consumer trends by providing healthy and sustainable eating and drinking options. “At Danone, we constantly seek to align our vision of the world, our mission and our businesses: we believe we have a special responsibility, as expressed in our Manifesto, to help and support people in adopting healthier and more sustainable eating and drinking practices and constantly evolve our portfolio of brands and products to achieve this objective. To that extent, we found in WhiteWave the perfect alliance as we both believe in a healthier future and are conscious of our power to lead society forward”,
said Emmanuel FABER, Danone Chief Executive Officer. “This unique combination positions us better to address tomorrow’s consumer trends and represents a great opportunity to step change the ambition of our plan for an Alimentation revolution and to accelerate our path towards strong sustainable and profitable growth by 2020. It will allow us to enhance Danone’s growth profile and reinforce our resilience through a broader platform in North America. We are convinced that combining with WhiteWave will create significant value for all of our stakeholders.” Franck Riboud, Danone Chairman said: “I believe this acquisition advances Danone’s mission and rich history of being at the forefront of emerging consumer trends and commitment to creating economic and social value. The Danone Board of Directors and Strategy Committee unanimously approved this transaction. We believe WhiteWave’s size, positioning and geographical footprint fit perfectly with Danone’s strategy and that it is the right transaction at the right time. The Danone Board will propose that shareholders approve the appointment of Gregg ENGLES, WhiteWave Chairman and Chief Executive Officer as a member of our Board upon completing the transaction as we pursue our ambitious vision together.” Gregg Engles, WhiteWave Chairman and Chief Executive Officer, said: “Today’s announcement is an exciting next chapter for WhiteWave, bringing together two leading companies with a shared mission of changing the way the world eats for the better. We believe this is a compelling transaction that delivers significant cash value to our shareholders. Danone is a unique company with distinctive capabilities that will enable WhiteWave to reach its next phase of growth. Danone is a great cultural fit for our organization and I am excited for our employees to benefit from the opportunities presented by joining Danone, a leading global food company and the ideal strategic partner to support our future. I am pleased to be joining Danone’s Board to assist with the exciting and unique journey combining our two companies.”
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More Than A Third Of M&A Professionals Believe Online Deal Sourcing Will Revolutionise The M&A Industry Online deal sourcing is becoming the “new normal” as one in three dealmakers use specialised deal networks.
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Middle Market Monthly - June 2016
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ntralinks Holdings, Inc. a global content collaboration company for high-value content and processes, has revealed the results of its latest Intralinks Dealnexus survey of more than 700 merger and acquisition (M&A) professionals. The “Deal Networks and the Evolution of Getting M&A Deals Done” global survey sheds light on the growing use of social networks and online deal sourcing communities as a way to improve the close rates and volume of deals, while making it easier for more organisations to promote and compete in these transactions. Intralinks is a global content collaboration company that provides cloud-based solutions to control the sharing, distribution and management of high value content within and across organizations according to the highest-level of security and the most stringent compliance regulations. Over 90,000 clients and 99% of the Fortune 1000 companies have depended on Intralinks to digitally transform and simplify critical business processes, and secure high-value information. With a 20-year track record of enabling high-stakes transactions and business collaborations valued at more than $28.1 trillion, Intralinks is a trusted provider of easy-to-use, enterprise strength, cloud-based collaboration technology. In 2013, Intralinks conducted a global survey of M&A dealmakers to understand how technology and specialised deal networks influence M&A deal sourcing. Intralinks conducted a follow-up survey to measure how attitudes towards, and adoption of, these technologies have shifted since the last report. Highlights of the follow-up survey include: • Online Deal Sourcing Is the “New Normal” More than 31 percent of dealmakers currently use an online deal network to support deal sourcing. Of sell-side M&A professionals using online sourcing platforms, nearly 50 percent have marketed at least one deal online in the last 12 months and 28% have marketed more than five deals online in the last 12 months.
“In an otherwise fragmented industry, online deal sourcing networks offer the only true ‘gated’ communities of any substantive scale where qualified dealmakers can find one another and interact. After surveying members of the largest dealmaker community in the M&A industry, our research proves that the prevalence of social dealmaking within the M&A industry is rising.”
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Awareness of the Value of Online Deal Sourcing Is Growing 36 percent of respondents agreed with the statement that online deal sourcing will eventually revolutionise the M&A industry. In 2013, that number was only 23 percent. • Online Deal Sourcing Leads to Closed Transactions Among users of deal sourcing platforms, 45 percent of buy-side and 39 percent of sell-side professionals have closed a deal that was sourced on an online network. • Online Deal Sourcing Expands Reach to New and Qualified Counterparties 62 percent of deal-makers agreed that online deal sourcing allows them to identify counterparties they otherwise would not have found. • Conventional Social Media Platforms Are Losing Favour At least in terms of supporting dealmaking activities, dealmakers are eschewing the larger, conventional social networks in favor of “specialised” deal networks with more customised functionalities, with respondents citing lower daily usage of the former, but higher daily usage of the latter. Our survey shows that dealmakers are realising the importance of incorporating online deal sourcing into their broader dealmaking and social media strategies. This is especially the case as online deal sourcing networks continue to gain ground while social media businesses continue to soar. On the buy-side, nearly 85 percent of respondents who use deal sourcing networks reported that they source deal opportunities online and 44 percent reported that their firms source between 11% and 50% of their total deal flow online. “As online deal sourcing continues to go mainstream, it is more critical than ever for M&A professionals to at least gain an understanding of the online deal sourcing landscape,” explained Tony Hill, director of Intralinks Dealnexus. “In an otherwise fragmented industry, online deal sourcing networks offer the only true ‘gated’ communities of any substantive scale where qualified dealmakers can find one another and interact. After surveying members of the largest dealmaker community in the M&A industry, our research proves that the prevalence of social dealmaking within the M&A industry is rising.” Donald W. Grava, founder and president of Versailles Group, Ltd, a Boston-based investment bank, said: “The most important thing in middle market M&A transactions is to make sure that the buyer or seller receives exposure to as many targets or buyers as possible. “Digital tools, such as Intralinks Dealnexus, provide an excellent way to expose a transaction to multiple parties virtually instantaneously. The same type of coverage that Intralinks Dealnexus provides would take an enormous amount of time and resources. Intralinks Dealnexus generated exposure to almost 400 possible buyers for a single transaction we posted. That’s the power of a robust tool like Intralinks Dealnexus in the digital age.”
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Middle Market Monthly - June 2016
Revenue in the U.S. Middle Market Continues to Expand at a Healthy Pace Overall Earnings Increase by 2.01% during first two months of Q2 2016, with Robust Profit Growth in the Information Technology and Industrial Sectors.
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iddle market private companies in the Golub Capital Altman Index increased revenues by 7.38% and earnings (defined as earnings before interest, taxes, depreciation and amortization, or “EBITDA”) by 2.01% year-over-year during the first two months of the second quarter of 2016. This is compared to year-over-year increases of 9.08% in revenues and 5.05% earnings, in the first quarter of 2016. This marks the one-year anniversary since the inaugural Golub Capital Middle Market report launched in Q2 2015. Lawrence E. Golub, CEO of Golub Capital said, “The bright spots are Industrials (ex-energy) and Information Technology, where we are seeing double-digit profit growth. The profit margin improvement in Industrials – helped by a weaker dollar on average during the quarter – is the strongest we’ve seen in over three years. Information Technology is benefitting on both the top and bottom line from continued investment in cloud-based services, which has also been reflected in the public markets.” Dr. Altman said, “As our results indicated in January 2016, the contraction of energy prices is not long-term or sustainable, and we said that tailwinds from energy cost reductions would diminish. We are beginning to see that play out in sector reversals. With average oil prices rising as much as 40% in Q2, consumers are being hit, and Consumer Staples and Consumer Discretionary growth decreased to the lowest levels since our analysis began in 2013. During this same period, profits in Industrials and Information Technology grew considerably more than the previous quarter. Overall, we are seeing a continuing profit margin decrease, with year-over-year growth for our middle market firm sample registering a 2.01% increase compared to 5.05% growth in the previous quarter and the slowest growth since 3/31/13. Revenue growth for the middle market continued to be relatively robust, despite some profit margin compression. It should be noted that the Golub Capital Middle Market report has been quite accurate in predicting the performance of the overall economy in recent quarters.”
The Golub Capital Altman Index, which is produced by Golub Capital in collaboration with renowned credit expert Dr. Edward I. Altman, is the first and only index based on actual sales and earnings data for middle market companies. It measures median revenue and earnings performance from the data of more than 150 private U.S. companies in the loan portfolio of Golub Capital, a leading middle market lender. Reported shortly before public company quarterly earnings season, the index has served as a reliable indicator of the overall growth rates in revenue and earnings of public companies in market indexes such as the S&P 500 and S&P SmallCap 600, as well as quarterly Gross Domestic Product (“GDP”), according to statistical back-testing dating back to 2012, when data began to be tracked. The results are believed to be (1) are representative of the general performance of middle market companies, which are a major contributor to U.S. private sector employment, (2) can be easily compared to the performance of the public companies that make up major stock indexes, (3) are relevant to the aggregate economic performance of the U.S. economy, and (4) provide timely information for the investment community. Importantly, the size and diversity of the Golub Capital loan portfolio ensures that the confidentiality of all company-specific information used in the report is maintained in both the aggregate and industry segment data. The companies in the Golub Capital Altman Index operate in a wide range of industries, and aggregate results are provided for the total universe and by industry segment. Given the index’s limited exposure to Financials, Utilities, Energy and Materials, calculations are made for the public indexes both including and excluding these sectors (for the latter, see charts marked “S&P 500 Adjusted” and “S&P 600 Adjusted”).
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MIDDLE MARKET MONTHLY
Tesla’s Elon Musk Makes Passionate Bid to SolarCity
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Middle Market Monthly - June 2016
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n paper, Elon Musk’s bid to purchase SolarCity Corp would make a large amount of sense. As the founder and chief executive officer of Tesla, chairman of SolarCity and the largest shareholder of both, so the two companies are already intimately connected. It would bring the renewable energy company under the umbrella of Tesla Motors, thus offering clean energy enthusiasts a one-stop shop in a market that is increasingly looking for new ways to access affordable clean tech. In his proposal, Elon Musk laid out a vision of the future. Tesla electric vehicles would return nightly to homes powered by SolarCity’s rooftop power systems. Energy stored in Tesla batteries would be used to recharge the cars overnight, drastically lowering the carbon footprint of households across America. The realistic scope of this ambition to create a home energy network that reduces the use of fossil fuels, built around the Musk ecosystem, was described as “blindingly obvious” at a conference call on Tuesday. With a large battery factory already under construction in Nevada, nicknamed the ‘Gigafactory’, Tesla is already in a position where it could theoretically facilitate the creation of this network, and has said that the facility will supply components to store solar energy and power cars from the getgo. Also, as the two companies are already working together, with SolarCity offering a residential energy storage system to solar customers powered by Tesla’s Powerwall batteries, the move underpins Musk’s assertion that Tesla is not as a car company, but is rather a provider of “energy innovation.”
“there are tremendous synergies between these two companies”. These factors have all led to Lyndon Rive, SolarCity’s CEO as well as Musk’s cousin, circulating in a letter to employees Tuesday stating that “there are tremendous synergies between these two companies”. According to data compiled by Bloomberg, the deal values the company at around $5.7 billion, including net debt. This bid values SolarCity at about 12.6 times their annual revenue, a significant amount more than the average of 5.7 times sales that buyers have approached alternative-energy companies with over the past five years. This data examined deals valued at $100 million or more in areas such as solar, wind and waterpower, and Tesla’s deal stands out a hugely generous offer in the alternative energies industry.
this for both companies is that they’re kind of strapped for cash. They both need cash injections to fuel their growth. “SolarCity has been trying to do that with securitization and bond offerings and Tesla was really reliant on the success of the Model 3 to fund its future growth. So with these two cash-strapped businesses, how do you fund growth for the future? I don’t have an answer for that, because neither have done very well.” While the business proposition might seem logical, “the synergies are limited,” as concluded in a research note by Credit Suisse Group AG analysts. The risk profile of Tesla’s business would also increase as a result of the capital intensity of SolarCity’s business. The merger will also face what the bank described as a “corporate governmental mess,” with Musk’s involvement in both companies. As a result, Tesla shareholders could be expected to come out as opposed to the deal, but with Musk as principal shareholder and chairman, their objections may not stand in the way of progress. There have also been doubts expressed over whether the acquisition is in the best interests of Tesla. The company faced a downgrading by Oppenheimer & Co. analysts, including Colin Rusch, who said that investors will probably view the deal as “a bailout” for SolarCity and “a distraction” from Tesla’s own production issues. “We do not view this acquisition as the best and highest use” of Tesla’s capital, Rusch said in the company’s research note Tuesday. That aside, the potential upsurge in affordable clean energy cannot be overlooked. Looking away from the potential updraft for shareholders and the financial rewards that could be reaped, if Tesla is able to master software connecting electric cars, energy storage and rooftop solar, Musk has the potential to create “an entirely new utility model,” Bromley said. “As the software part of Tesla’s business grows, the software that binds this all together, there will be a shift away from the Tesla brand being about the electric vehicle and the shiny battery box and more about facilitating the customers’ entire energy needs and requirements.”
According to a post on the California-based Palo Alto company blog, Musk’s offer to SolarCity would see shareholders receive between $26.50 to $28.50 per share, which amounts to a premium of up to 35 per cent from Tuesday’s closing price. An analyst for Bloomberg’s New Energy Finance in New York, Hugh Bromley, had this to say. “The challenge I see around
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MIDDLE MARKET MONTHLY
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Middle Market Monthly - June 2016
U.S. middle market lending set to expand in second half of 2016 As lenders report a growth in Merger & Acquisition deals, the second half of 2016 is set to see a surge in lending to U.S. midsized companies in the run-up to the Presidential Election on the 8th November. While the last two consecutive quarters saw the lowest first half volume of lending since 2009, and the fourth lowest first half since the millennium, amounting to $52.74bn, anticipation over the upcoming Presidential race appears to be generating a new wave of interest and debt capital targeted towards American mid-level business. Jeremy Swan, principal at CohnReznick, surmised that “bankers and private equity sponsors are starting to see a pick-up in the number and quality of deals in the pipeline.” The American middle market was perhaps best placed to weather the wave economic uncertainty following the UK’s decision to leave the European Union, and has been unscathed because of its largely domestic focus. In fact, figures revealed by Lara Rhame, senior economist at Franklin Square Capital Partners, show that US middle market companies generated 87% of their revenue domestically in 2015. Of the remaining 13% in revenues earned abroad in that same period, only 3% came from Europe. Large public companies, in stark contrast, faced greater exposure to the economic fallout that came in the wake of the momentous ‘Brexit’, affecting a complex international supply and distribution networks as well as having a knock-on effect towards global exchange rates. That 3% of European imports might have reported a slight blip in domestic American middle markets, but the end result shows that the competitive industries of the USA have resurged to take full advantage of new opportunities. Just before and after the UK referendum two weeks ago, a gentle smattering of M&A deals fluttered the market to test investor confidence, and was met with unprecedented enthusiasm. At slightly less 500bp over Libor threshold, Brexit seems to have failed in dampening sentiment among middle market lenders. Parts Authority, a prominent New York-based automotive and truck parts distributor, have tapped into a US$195m acquisition credit facility that backs the company’s sale to private equity firm The Jordan Company. This deal launched ahead of Britain’s EU vote, and while commitments were due several days after, on 23rd June, neither the demand nor the prices for the loans were changed by the result. In
fact, the end result was that the deal became oversubscribed, attracting both banks and institutional investors. While the potential Brexit-related volatility has passed and opened up a new window in investor momentum, another period of economic uncertainty looms in the form of 8th November and the U.S. presidential election. The next five months are expected to see a surge in new deals and a dash among investors to wrap up these deals before this critical date. Investors in the middle market have already demonstrated that they are keen to step up and invest in hungry and highly competitive lender field, especially since the last six months have been characterized by a significant supply-demand imbalance. As one banker described the phenomenon, “deals are selling on credit, not liquidity.” Already, a flurry of new deals conducted within the same period have demonstrated not only the enthusiasm of investors, but also their eagerness for a quick deal ahead of the election. Incline Equity Partners was the selling majority shareholder, Olympus said in a July statement. Royal Oak Enterprises, makers of charcoal, raised a new acquisition term loan backing its sale to Mariposa. The company raised a US$325m term loan, priced at 475bp over Libor with a 1% floor. SunTrust led the deal. There is clearly no shortage of available capital, and a broader group of investors is eager to put money to work. However, the longer-term sustainability of this new trend will be tested in November, with some speculation as to whether or not it will usher in a new wave of optimism for markets. Given the close contest in the Presidential race at present, investors may be viewing the upcoming five months as a grace period, a window of opportunity in which to get deals squirreled away before the winter. “If I’m going to do a deal, I would want to get it done before November, particularly on the heels of Brexit,” said one middle market lender.
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MIDDLE MARKET DEALS MONTHLY
Sage acquires £10m stake in Fairsail HR software
Swallowfield Buys Brand Architekts For GBP11 Million
Sage has announced an expansion of its strategic partnership with UK HR software company Fairsail to deliver cloud-cased HR software to mid-sized enterprise customers
Swallowfield, a UK cosmetics and personal care supplier and the creator of Bagsy, has confirmed the ball is in motion to acquire Brand Architekts, pending shareholder approval.
As part of the relationship, Sage will also make a minority investment of £10 million and take a seat on Fairsail’s board. Sage said it signals a commitment to make the partnership a success and allows Fairsail to invest further in its product.
Brand Architekts owns a portfolio of massage beauty brands, many of which already use Swallowfield’s services. Key brands in the portfolio due to transfer to Swallowfield, if the acquisition is approved, include: Dirty Works, Kind Natured, Argan, Happy Naturals, DrSalts, Superfacialist and Senspa. Brand Architekts generated net sales of £10.7m in the year to January 2016.
Fairsail will become the cloud HR “platform of choice” to accompany Sage’s X3 Business Management Solution which serves mid-sized enterprise businesses. Sage X3 and Fairsail products will work together to provide companies with “better processes to manage financials, supply chain, payroll, workforce and talent management, all in the cloud”, the companies announced. It was also announced that Sage will implement the Fairsail solution internally as its own global HR solution. Alan Laing, executive vice president of partnerships and alliances at Sage said “As part of our ever expanding network of partnerships and alliances, we are very excited to further develop our relationship with Fairsail. “We are committed to providing customers with the solutions they need to compete and grow in today’s global, digital economy. This complementary powerhouse of business management and HCM [Human capital management] solutions will enable our customers to gain a competitive advantage.” Adam Hale, Fairsail’s CEO, said: “We are delighted to partner further with Sage, the world’s leading software provider for small and medium businesses. The Fairsail cloud HR solution brings significant benefits to customer quickly, enabling businesses to remain agile and responsive. This investment will allow us to grow our customer success, product innovation and our fabulous team globally.”
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Swallowfield’s directors believe a takeover will be a growth-booster, in part due to the fact that Swallowfield will be able to sell its current brands through Brand Architekts distributor network. In a preliminary statement shared with Cosmetics Business, Swallowfield said: “We believe that the acquisition will make Swallowfield stronger financially and in doing so increase our ability to invest in our manufacturing facilities, our R&D resources and our quality processes. Furthermore, it can only improve our ability to understand consumer trends and retail channels, all of which can help make us a better supplier to our core customer base.” Sign up for your free email newsletter More details will be made following shareholder approval of the deal, which Swallowfield expects to receive at a General Meeting on 27 June.
Middle Market Monthly - June 2016
Blackmores dives into Chinese herbal medicine with $23m buy
SES to Take Control of O3b Networks
The chief executive of vitamins firm Blackmores, Christine Holgate, says there is a huge untapped opportunity in the fast-growing Chinese herbal medicine market as the company seeks to replicate its success in vitamins using newly acquired Byron Bay firm Global Therapeutics.
SES S.A. (NYSE Paris:SESG) (LuxX:SESG) has agreed to increase its interest in O3b Networks (O3b) to 50.5% and, in doing so, will take a controlling share in the company. The transaction is subject to regulatory approvals which are expected to be completed during H2 2016.
Blackmores has paid $23 million for the company, which is the market leader in Chinese herbal medicine in Australia with an estimated 80 per cent market share in health food stores.
SES will pay USD 20 million to increase its fully diluted ownership of O3b from 49.1% to 50.5%, bringing its aggregate equity investment in O3b to date to USD 323 million (EUR 257 million). On completion, SES will consolidate O3b’s net debt, which is currently USD 1.2 billion. The transaction is expected to generate returns exceeding SES’s hurdle rates for infrastructure investments.
Ms Holgate said the business, whose two main brands of Fusion and Oriental Botanicals are sold only in Australia currently, would swing its focus to exports to China over the next year to tap into rising demand in a market worth $170 billion globally. She said there were vast opportunities in China and other Asian countries for the business, which would be run as a stand-alone operation at the "front end" but have better access to capital and Blackmores distribution grunt by being part of a larger group. "It's not going to happen overnight but there is a fantastic opportunity," she told Fairfax Media on Friday. "It will enable us to better understand the Chinese consumer and get closer to them". Ms Holgate said it would also fill a gap in the Blackmores product range. "It's the natural medicine part we've not been strong in," she said. Global Therapeutics was established in Byron Bay in 1999 by naturopath and herbalist Paul Keogh and natural health industry veteran Geoff Teasel. Ms Holgate said the business had increased sales 24 per cent in the past 12 months.
Karim Michel Sabbagh, President and CEO, commented: “The move to take control of O3b is a game-changing acquisition and a major step in the execution of SES’s differentiated strategy and complements SES’s growth strategy. O3b delivers a unique capability and solution, which is already in operation, for Enterprise, Mobility and Government clients, particularly for applications where low latency is an increasingly essential feature. The combined GEO/MEO satellite network and capabilities give SES a truly compelling and differentiated service offering within the industry, strengthening SES’s unique positioning across the data-centric markets. The consolidation of O3b – the fastest growing satellite network – significantly enhances SES’s long-term growth profile with the constellation expected to generate annualised revenues of between USD 32 million and USD 36 million per satellite at steadystate. Looking forward, both SES and O3b will benefit from the strong synergies and strategic fit across both businesses.”
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MIDDLE MARKET DEALS MONTHLY
Capella Acquisition of DevMountain Capella Education Company (NASDAQ: CPLA) today announced that DevMountain, an industry-leading coding school, has become a wholly-owned subsidiary of Capella Education Company. DevMountain’s mission is to be the most accessible and impactful software coding school in the country by bringing affordability to the highest quality, hands-on education in the software coding industry. Following Capella’s recent partnership with CareerBuilder® called RightSkillSM and acquisition of Hackbright Academy, DevMountain represents a complementary platform on which to extend Capella’s leadership position in the job-ready skills market. “Whether through innovative post-secondary degrees or job-ready skills, individuals in this economy are looking for the most direct path between learning and improved employment outcomes without any wasted time, money or effort,” said Kevin Gilligan, Capella Education Company chairman and chief executive officer. “DevMountain’s affordable, high-quality, and leading-edge programs represent a critical link in the chain of providing consumers with innovative options to advance their careers. RightSkillSM, Hackbright, and DevMountain all serve distinct parts of the employment market and together expand Capella’s portfolio of offerings in the job-ready skills space as we look to accelerate growth.” “Partnering with Capella is the next step for us to expand our reach of changing lives by teaching modern technical skills in demand by today’s fast-paced high-tech employers,” said Cahlan Sharp, DevMountain’s co-founder and chief executive officer. “We are passionate about coding and seek to expand our reach to more students including through online delivery options, leveraging Capella’s deep online capabilities.” The transaction closed on May 4, 2016 for a purchase price of up to $20 million, of which $15 million was paid in cash at closing with up to an additional $5 million to be paid over a three-year period pending the achievement of certain annual revenue and operating performance metrics. For 2016, we expect DevMountain to contribute up to a point of revenue growth to Capella Education Company’s results and dilution of approximately $0.10 to $0.20 per share.
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Corporate Travel Management buys US agency Travizon Travel for $28 million Corporate Travel Management is on track to become one of the 10 largest corporate travel agencies in the huge United States market after acquiring Boston-based Travizon Travel for at least $28 million. The deal, to be financed through a 50-50 combination of cash and CTM shares, will take the Brisbane-based company's total transaction value in North America to $US1 billion ($1.3 billion) in the 2016-17 financial year. That would make CTM one of the largest corporate travel agents in the US just four years after it first entered that market. "We are delighted to have Travizon become a key part of our North American business," CTM chief executive Jamie Pherous said. "Travizon has an excellent reputation and track record of looking after multi-regional clients, which can only enhance our expertise and offering in this market." The base price of the deal is $28 million, but bonus funds could be paid if Travizon outperforms certain targets in the first year. The company reported $5 million of earnings before interest, tax, depreciation and amortisation in the 2015 calendar year. The Travizon deal is poised to take effect on July 1, and therefore it will not make any earnings contribution in the current financial year. However, Mr Pherous said he expected a strong result from the company's existing North American division in the second half of the financial year. The Travizon acquisition is the latest in a long series for CTM, including the purchase of Los Angeles-based Montrose Travel for $47.6 million in December. In February, Mr Pherous flagged the company was likely to make further acquisitions in the US and European markets.
Middle Market Monthly - June 2016
Healthcare group UDG buys UK's second largest health PR firm Pegasus for £16.8m Pegasus' 100-strong team will retain its brand, and become part of Ashfield Healthcare Communications (AHC), part of UDG's largest division, Ashfield Commercial and Medical Services (ACMS). AHC, which incorporates previously acquired brands such as Galliard and iMed Comms, is led by CEO Viv Adshead. UDG acquired the Brighton-based agency for £16.8m ($24.6m), with a £10.1m initial consideration followed by £6.7m deferred over a three-year earn-out. It is the third healthcare comms M&A this week, after Chime-owned OPEN Health acquired UK-based international agency Choice Healthcare Solutions on Tuesday, and Omnicom bought American firm Rabin Martin on Monday. Pegasus deputy managing director Simon Hackett steps up to the role of MD, which was previously held by Lisa Bradley, the firm's founder. Bradley becomes chair, succeeding Tim Adams – also the chair of Consolidated PR and founder of Lexis – who steps down. Hackett will report to David Moore, director as AHC. Moore said the acquisition "broadens our capabilities in patient and consumer communications programmes, as well as corporate reputation and crisis management for our growing client base". Hackett told PRWeek there would be no redundancies, and said: "While we will be keeping our name, location, great team and compelling mission of 'inspiring healthy decisions', all of which have been important ingredients in our success, we will enjoy the benefits of aligning with Ashfield in terms of service offering, talent, business development and global presence." Pegasus primarily works in the UK market but also has European and global projects to its name. Clients include Bayer, GSK, Novo Nordisk and Unilever.
Motor dealer Colliers acquired by Jardine Motor dealer Colliers Group has been acquired by Jardine Motors. The deal sees Jardine Motors, which trades as Lancaster, take over the majority of Colliers Group, specifically its Land Rover (below), Honda and Mazda dealerships in Erdington and its Jaguar showroom in Tamworth. Colchester-based Jardine said the undisclosed purchase was being driven by Jaguar Land Rover's push for a common ownership model. The deal sees the group's portfolio increase to five Land Rover businesses, six Jaguar, four Honda and its inaugural Mazda site. In addition to acquiring the franchises, the deal also includes the purchase of Colliers Group's central parts hub. Jardine's chief executive Neil Williamson said: "This is a great acquisition as we combine Colliers Group's family business values with our cutting edge retail experience. "This new business will help drive forward our ambitious growth plans for 2016. "We look forward to welcoming our new colleagues from Colliers Group into the Jardine family." He added: "The automotive industry is really thriving in the Midlands, especially with the investment being made by Jaguar Land Rover and its new manufacturing site, so we're keen to strengthen our presence in the region." Jardine Motors also recently started work on a brand new multi-million pound development for Land Rover in Wolverhampton.
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