M&A daily wrap: Pillsbury, Smucker, Brynwood, Sportradar, CPPIP, TCV, EQT, Sallie Krawcheck

M&A daily wrap: Pillsbury, Smucker, Brynwood, Sportradar, CPPIP, TCV, EQT, Sallie Krawcheck

Bloomberg News

Brynwood Partners has agreed to accumulate a portfolio of manufacturers from the J.M. Smucker Co. (NYSE: SJM) for $375 million. The portfolio contains the unique U.S. rights to the well-known Pillsbury model’s shelf-stable baking merchandise, together with the Hungry Jack, White Lily, Jim Dandy and Martha White manufacturers. The Pillsbury model is a family title, partially because of the recognition of its promoting mascot, the laughing Poppin’ Fresh character, also referred to as the Pillsbury Doughboy. The Pillsbury model license settlement is a royalty-free, perpetual settlement with General Mills Inc. (NYSE: GIS), encompassing all U.S. shelf-stable baking merchandise, together with flour, dry baking mixes and ready-to-spread frosting, within the retail channel. The transaction additionally contains the 650,000 sq. foot manufacturing facility in Toledo, Ohio, and is predicted to shut within the third quarter of 2018, topic to customary U.S. regulatory assessment. Smucker purchased Pillsbury as a part of its 2004 acquisition of International Multifoods Corp. “The deal added an array of so-called center-of-the-store brands, including muffin mixes and frostings, to its portfolio,” Bloomberg News factors out. “More recently, the drive toward healthy-eating has drawn consumers to the perimeter of grocery stores in search of fresh produce and less processed foods. This shift in taste and habits has challenged U.S. consumer-packaged food companies and cut into growth for many large, well-known brands.” Smucker’s flour, baking components, baking mixes and frosting companies have lagged, collectively accounting for about 5 % of income in fiscal 2017, down from about 10 % in 2014, in line with knowledge compiled by Bloomberg. Brynwood, primarily based in Greenwich, Connecticut, makes a speciality of company carve-outs. “This is a hallmark deal for Brynwood Partners and marks the 52nd brand acquisition from the 19th corporate seller across our long history,” says Brynwood president Ian MacTaggart. Brynwood didn’t retain an funding financial institution however was suggested by Holland & Knight LLP on authorized issues.

The Canada Pension Plan Investment Board (CPPIB), via its subsidiary, CPP Investment Board Europe S.à r.l., and Silicon Valley-based progress fairness agency TCV collectively are buying a minority stake in sports activities knowledge supplier Sportradar from non-public fairness agency EQT and minority shareholders. The deal values the St. Gallen, Switzerland-based firm at EUR 2.1 billion ($2.four billion). Carsten Koerl, founder and CEO, is retaining his complete majority stake and can proceed to drive its future improvement and progress. EQT can be reinvesting a portion of its sale proceeds into Sportradar. Additional present shareholders embrace: basketball legend Michael Jordan; Ted Leonsis, proprietor of the National Hockey League’s Washington Capitals; Mark Cuban, proprietor of the National Basketball Association’s Dallas Mavericks; and enterprise capital agency Revolution Growth, based by Leonsis and America Online co-founder Steve Case.

Exponent, a networking group for girls dealmakers that launched in 2017, is gearing up for its first marquee occasion, referred to as Exponent Exchange, on July 12. The keynote speaker is Sallie Krawcheck, who beforehand served as CEO of a number of banks, together with Merrill Lynch Wealth Management and the Citi Private Bank, and is now the CEO of Ellevest, a web based investing web site aimed toward girls. Additional audio system embrace: Lisa Bernstein, world head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, associate, Kainos Capital; Janet Cowell, CEO, Girls Who Invest; Mary Kathleen Flynn, editor-in-chief,Mergers & Acquisitions; Jennifer Lu, government director, Moelis & Co. (NYSE: MC); Natalia Oberti Noguera, founder and CEO, Pipeline Angels; Thu Do, chief product officer, Tastemakers Africa; and Adrianne Shapira, managing director, Eurazeo Brands. Underscoring enthusiasm for initiatives aimed toward girls, sponsors of the occasion embrace main dealmaking corporations, similar to Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the complete story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal information
AE Industrial Partners has closed its second non-public fairness fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments. The fund will make management investments in technical manufacturing, distribution and provide chain administration, MRO (upkeep, restore and overhaul), and industrial service-based companies. “With our deep operating expertise and valuable relationships in these sectors, we are well positioned to uncover unique opportunities and create value for our investors,” says AEI managing associate Michael Greene. Eaton Partners served as AEI’s placement agent, and Kirkland & Ellis supplied authorized recommendation.

Palladium Equity Partners has invested in Spice World, a provider of garlic and different flavorings beneath the Spice World model. Deloitte Corporate Finance and Moore & Van Allen suggested Spice World. Piper Jaffray (NYSE: PJC), Kirkland & Ellis and Simpson Thacher & Bartlett suggested Palladium.

LLR Partners has offered IO Education to Insight Venture Partners-backed Illuminate Education. IO Education is a Software-as-a-Service supplier of pupil knowledge administration providers. Harris Williams & Co. suggested IO Education.

Core Industrial Partners-backed Prototek Sheetmetal Fabrication LLC has acquired Hayes Manufacturing Services, a producer of of precision-machined plastic and steel elements. Winston & Strawn represented Core and Prototek. Monroe Capital supplied financing.

Canon Inc. has purchased BriefCam, a supplier of video synopsis and deep studying providers. The deal expands Canon’s choices in community cameras, video administration software program and video content material evaluation software program. Shea & Co. suggested BriefCam.

Featured content material
Private fairness companies are extra energetic within the public sector than they have been a few years in the past, Brian Miller, the CFO of Tyler Technologies Inc. (NYSE: TYL), tells Mergers & Acquisitions. The firm’s $150 million deal for knowledge service firm Socrata in all probability is not going to be the corporate’s final. Tyler has accomplished greater than 40 acquisitions up to now decade. Read the complete story: Tyler Technologies sticks with M&A strategy, despite PE competition.

Justify not too long ago joined the elite group of Triple Crown winners. But, as anybody who’s ever guess the ponies is aware of, they’ll’t all be Justifys. Sometimes you get a winner and generally, for causes that aren’t fairly clear to anybody, you get an underperformer. It’s an idea with which most fund sponsors could also be intimately acquainted. You guess on the funding since you foresee its potential and perceive the trail it must take to be able to obtain it. Here’s a step-by-step information to getting a stuck-in-the-mudder into racing form, written by Accordion‘s Rishi Jain and Anthony Horvat: 6 strategies to turn an underperformer into a “mudder.”

Huron Capital’s new Flex Equity Fund resonates with corporations that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says associate Douglas Sutton on this video interview shot at ACG InterGrowth 2018. The Detroit agency received Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

As the dominoes begin to fall and momentum builds, timing will matter to buyers in hashish, writes Jeffrey Howard, managing associate at Salveo Capital, another funding agency specializing within the legalized hashish sector, in a visitor article. For most, the query isn’t whether or not the federal authorities legalizes hashish, it’s how for much longer buyers will be capable of capitalize on this undefined future to affect and revenue from how the ecosystem in the end takes form, says Howard. If the M&A market can function a number one indicator, the runway for buyers is already changing into shorter as strategic consumers characterize, each, a risk and alternative. In reality, main gamers inside Big Alcohol, Big Tobacco and Big Pharma have every made inroads within the area, which proves out the funding thesis, however will certainly beckon added competitors. Read the complete story: How to seize M&A opportunities in marijuana’s gray market.

Summer studying checklist: From tales of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to recommendation from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus methods to assist enterprise leaders basically, and feminine dealmakers particularly, the 15 books on Mergers & Acquisitions’ checklist entertain, instruct and encourage. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.

Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving because the Editor-in-Chief of Mergers & Acquisitions. MK oversees the model’s content material on all media platforms, together with web site, e-newsletters, video, slideshows, podcasts and print.

Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all facets of middle-market deamaking, with a give attention to strategic consumers and the buyer and retail sectors, and writes The Buyside column.

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