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The Wire Aug. 30, 2021
Highlander's Bettera sold to Catalent for $1bn, Linden makes almost 4.5x its money on recent Flexan sale
Happy Monday!
US PE deal-making is on a record-setting pace through Q2 with more than 3,700 deals worth more than $450 billion, thanks to the continued economic recovery, low interest rates and robust dry powder stores, according to Pitchbook’s Q2 ’21 US PE Breakdown. While the conventional wisdom has it that summer in financial services is a time for unplugging, beach reads and maybe a Mai Tai – or at least enough of a break from the action to focus on longer-term strategic priorities – this summer seems to have been a little different, writes PE Hub affiliate Private Equity International. Read it here.
Vitamins craze: In this morning’s big headlines, Dallas private equity firm Highlander Partners is selling Bettera Holdings to drug development services company Catalent for $1 billion. Bettera, the parent of nutritional supplements company Better Brands -- known for its soft-chew gummy products -- was launched by Highlander through a series of four acquisitions beginning in 2017. The deal follows other strong exits in recent months falling in the nutritional vitamins, minerals and supplements industry. PE Hub reported in August that Avista Capital Partners is poised to make 3.7x its money with its recent sale of Arcadia Consumer Healthcare. And in May, KKR was set to make north of 3x its investment in Bountiful, whereas Carlyle was poised to make 2.5x its money, PE Hub wrote.
Cashing in: In other recent sales of note, Linden Capital Partners made almost 4.5x its money on the recent sale of medical device parts manufacturer Flexan, according to an LP source with knowledge of the matter. Announced in late July, New Mountain Capital acquired Flexan through ILC Dover, marking the second add-on for the manufacturer of flexible materials since partnering with the PE firm in early 2020. The deal closed just over a week ago. Linden’s strong outcome with Flexan and other recent exits is likely benefiting its roll-out of Fund V. The firm’s fifth buyout offering, which...
Read the full wire commentary on PE Hub...
Also of note (may require subscriptions) Target: AEA Investors, which earlier this year brought on two co-heads to build out its growth initiative, is targeting $400 million for its debut growth fund, a source with knowledge of the firm told Buyouts. AEA is one of numerous well-established GPs who have added new product offerings to its mix, especially after selling a stake in the management company. Read it here.
Pivoting: Riverstone Holdings LLC rode the shale boom to big profits. Now the New York investment firm is betting on technologies that would cut demand for fossil fuels, hoping for better results than its earlier push into renewables, write the Wall Street Journal. Read it here.
Closing in: Private equity firm Centerbridge Partners and Canadian pension fund CPDQ are nearing a deal to buy TPG-backed Medical Solutions for about $2.3 billion including debt, Bloomberg News reported late on Sunday. Check it out here.
PE Deals
They said it “There is no summer slowdown.’” Jay Lucas, founder of boutique consultant The Lucas Group, who also helped start Bain’s PE consultancy, speaks to Private Equity International.
Today's letter was prepared by Sarah Pringle Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. FIND OUT MOREPlease visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.
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