Clearlake sold ConvergeOne, a global leader in IT solutions and managed services, to CVC Capital Partners for $1.8bn in an all-cash transaction. Pursuant to the terms of the merger agreement, affiliates of CVC will commence a tender offer for all of the outstanding shares of the Company valued at $12.50 per share of common stock of the Company, representing a 35% premium to the thirty-day VWAP prior to October 25, 2018.
Chris Colpitts, Senior Managing Director of CVC, said, "We are very impressed by the momentum of ConvergeOne and share their excitement for the Company's growth potential. ConvergeOne has a significant opportunity to capitalise on the cloud adoption and digital transformation tailwinds of its enterprise customers. Using our industry expertise and global network, we look forward to supporting ConvergeOne's continued growth, both organically and through its proven M&A program."
Jefferies, Raymond James, William Blair and Cooley advised ConvergeOne. Deutsche Bank, UBS and White & Case advised CVC Capital Partners.
KPS-backed C&D Technologies, which manufactures, engineers, supplies and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power, acquired Trojan Battery Company, the world's leading manufacturer of deep-cycle energy storage solutions and a battery technology pioneer, from Charlesbank. Financial terms were not disclosed.
This acquisition will combine two leading battery manufacturers with complementary product portfolios to create one of the largest energy storage providers with over $1.0bn of revenue, eight manufacturing facilities and a presence in every major region. The transaction is expected to close in approximately 60 days.
Houlihan Lokey and Goodwin Procter advised Trojan Battery Company, while Paul Weiss Rifkind Wharton & Garrison advised C&D Technologies and KPS.
Newell Brands, a leading global consumer goods company with a strong portfolio of well-known brands, sold Pure Fishing, a provider of fishing tackle, lures, rods and reels, and Jostens, an American manufacturer of memorabilia, to Sycamore Partners and Platinum Equity respectively. Financial terms of both transactions were not disclosed.
“We are pleased to announce another step forward in our Accelerated Transformation Plan, with the signing of the Pure Fishing and Jostens transactions,” said Michael Polk, Newell Brands President and Chief Executive Officer. “We have full confidence that these businesses will continue to thrive under new ownership, as they leverage their strong positions in the marketplace.”
JP Morgan provided financial advice to Newell Brands on the Pure Fishing sale, while Jefferies provided financial advice on the Jostens sale.
Royal Paper is a private label consumer packaged goods company. No financial terms were disclosed.
Will Hausberg, Managing Director at Gridiron Capital stated: “We are impressed with Royal Paper’s dedication to consistent quality, reliability and its ability to meet its customers’ needs in a flexible manner and we look forward to working with the owners and existing management team to build upon its success and further enhance the Company’s customer relationships over time.”
Aliso Viejo, California-based Motion Solutions is a provider of linear motion, motion control and automation solutions for critical, high technology applications. No financial terms were disclosed.
Michael Langdon, Managing Director at Frontenac, said, “Motion Solutions has proven itself as a premier supplier of specialized solutions to customers possessing the highest standards in quality, performance, innovation and customer service. The company represents an ideal fit with Frontenac’s previous experiences in helping engineering-centric manufacturing and distribution businesses achieve their next level of growth and profitability. We are thrilled to be partnering with its accomplished, energetic and action-oriented management team.”
Honigman Miller Schwartz & Cohn provided legal advice to Frontenac.
Toronto-based Messagepoint is a provider of customer communications management software and services. No financial terms were disclosed. The capital infusion will be used to expand Messagepoint’s R&D initiatives and boost its sales and marketing functions.
“Businesses are seeking innovative solutions that make content creation easy and intuitive, and that require significantly less professional IT involvement,” commented Brian Kim, NewSpring Principal. “Messagepoint offers exactly this and allows the enterprise to regain control over their customer communications and experiences. We look forward to partnering with CEO Steve Biancaniello and the entire dedicated team at Messagepoint to further grow this already successful brand.”
Broomfield, Colorado-based MWH Constructors is a global construction firm focused on water and energy. No financial terms were disclosed for the transaction that was done in partnership with MWH’s management.
Jimmy Lee, Senior Vice President at Oaktree, commented: “We are thrilled to have partnered with MWH Constructors and its talented management team. MWH is recognised as a global leader in developing and executing some of the most technically advanced project delivery solutions for water and wastewater infrastructure construction. Together with management, we are committed to expanding MWH’s talent, resources, and capabilities to continue to support the global infrastructure needs of the Company’s customers.”
Turning Points Global is a cannabis advisory firm. No financial terms were disclosed.
“The acquisition of TPG adds institutional investment management experience from Citigroup Venture Capital International, and added cannabis operating experience to our core team,” said Tress Capital CEO Asher Troppe. “Our sector is rapidly evolving and becoming an increasingly competitive global marketplace”
G&W Laboratories is a pharmaceutical company, which offers generics, over-the-counter, and Rx products. G&W Dermatology has a market-leading and diversified portfolio of approximately 35 self-labeled generic topical dermatology products that are currently marketed and sold in the U.S. Financial terms were not disclosed.
Sriram Venkataraman, a Partner at Avista, said, "We are excited to welcome G&W Dermatology to our healthcare portfolio. We look forward to working with Walt and the entire team, while leveraging Avista's vast expertise in the healthcare sector to support the Company's future development and expansion. Our investment in G&W Dermatology is a further example of Avista's demonstrated ability to identify attractive niche healthcare assets and then acquire such businesses via a carve-out transaction."
Ropes & Gray advised Avista, while JP Morgan and Reed Smith advised G&W Laboratories.
Blackstone, LLOG looking to sell the Gulf of Mexico oil exploration venture.
According to a Reuters report, Blackstone and LLOG are working with an investment bank to sell their Gulf of Mexico oil exploration joint venture for more than $2bn. The attempted divestment is the latest to emerge from the U.S. Gulf of Mexico, as higher oil prices allow those with capital-intensive investments in the basin to sell them at much more attractive valuations than in recent years.
Barclays is rumoured to advise Blackstone and LLOG on the matter.
Tom Barrack returned to Colony Capital.
Tom Barrack, who founded Colony Capital Inc. and stepped down as CEO in 2014, is returning to the role following a stock rout that has cut the investment firm’s market value in half this year. Former CEO Richard Saltzman has resigned from the position and given up his board seat. Saltzman, one of Barrack’s closest deputies, was charged with overseeing Colony’s disastrous merger with the NorthStar companies.
The company’s shares, which are down 49% this year, rose as much as 2.6% Wednesday morning following the Barrack announcement.
