KKR entered into an agreement to acquire GeoStabilization International from CAI Capital Partners. This transaction marks KKR’s third acquisition of a middle-market business in the industrials sector this year. GSI is a leading provider of landslide repair and rockfall mitigation services in the United States and Canada, developing and implementing innovative solutions that remediate geo-hazards in order to restore the safe operability of impacted infrastructure. The financial details of the deal were not disclosed.
Over the past seven years, KKR’s Industrials team has focused on employee engagement as a key driver in building stronger businesses. The cornerstone of the strategy has been to allow all employees to take part in the benefits of ownership by granting them the opportunity to participate in the equity return directly alongside KKR.
Fully committed financing has been led by lead arrangers UBS Securities LLC and KKR Capital Markets. KKR was advised in the transaction by Kirkland & Ellis LLP. GSI and CAI were advised by William Blair and Perkins Coie LLP.
Sun Capital Partners, partnered with StonePoint Materials to acquire VantaCore Partners. VantaCore is a leading producer of crushed stone, sand and gravel for infrastructure, energy, commercial, residential, and other markets. Operating across eight states, VantaCore has over 7.6m tons of annual production and offers complementary asphalt production and paving services in Tennessee and Kentucky. Financial terms were not disclosed.
“This transaction represents a great opportunity for Sun Capital to leverage our experience in growing businesses in the building products and infrastructure sectors,” says Marc Leder, Co-CEO at Sun Capital.
Golden Gate Capital has completed the acquisition of Active Minerals International from Merit Capital Partners. Financial terms of the transaction weren't disclosed.
Active Minerals International, LLC produces and markets kaolin and gel attapulgite clay minerals. The company offers vermiculite for potting soil, automotive products, ceramics, electronics, insulations, and fireproofing and many others.
“We are excited to partner with Golden Gate Capital, who is fully aligned with our long-term strategic vision and has a demonstrated track record of building long-term value for its portfolio companies,” says Active Minerals International's President and Chief Executive Officer Dennis Parker.
Valence advised Golden Gate Capital. Grace Matthews advised Merit Capital Partners.
Crossroads Holding LLC has completed its buy of EHC Medical Offices. Financial terms weren’t disclosed.
EHC is located in Knoxville, TN and provides medication assisted treatment services through its team of highly trained and accredited healthcare providers and focus on patients suffering from addiction to opioid drugs.
“This acquisition marks Crossroads’ expansion into our 11th state,” said Dr. Rupert McCormac, Founder and CEO of Crossroads. “As an entrepreneurial management team, leveraging Revelstoke’s resources and expertise allowed our physician leadership team to continue to focus on growth while maintaining the highest quality and efficacy of our clinics, fulfilling a critical need for our patients.”
Amazon and Blackstone bid for 22 Disney sports channels.
Disney disinvests the regional sports network, including New York-focused Yes Network, as part of its agreement with the US Department of Justice, regarding its recent acquisition of Fox. The assets could be worth as much as $20bn. An unnamed sovereign wealth fund and the New York Yankees are also bidding for the New York network.
Moreover, Fox Executive Chairman Lachlan Murdoch had hinted earlier this month that it could buy back the regional sports networks it sold to Disney.
The second round of bids is expected before the year ends and due diligence on the bids begin next week.
Elliot Management keeps pressuring Mitek.
Elliott said on Tuesday that it asked the company to allow the hedge fund to buy more stock. Mitek, a software company that specializes in digital identity verification and mobile capture built on artificial intelligence algorithms, has been an object of takeover interest from Elliott since August.
Elliott said Mitek was adopting a “path of entrenchment” and had not properly engaged with the hedge fund. It noted that director Bruce Hansen sold Mitek stock at $8.66 earlier in the year, which prompted it to question, in its letter, why a deal at $10 a share would undervalue the company. Elliott also said a number of board members were stretched thin by serving on too many boards
Mitek’s share price has climbed 8.64% over the past month and was trading at $9.48 on Tuesday.
THL-backed CSafe attracts private equity interest.
Thomas H. Lee Partners-backed CSafe Global, which provides climate-controlled containers that ship temperature-sensitive drugs, has received inbound takeover interest from private equity firms and engaged Piper Jaffray to provide them with financial advice.
Due to THL’s mission statement the company seeks to support portfolio company management teams with financing, merger & acquisitions and structuring capabilities as well as operational expertise.
Improved trends ahead of activist battle for Campbell Soup Co.
Campbell Soup Co. posted sales and profit that outpaced estimates, giving the company firmer footing in its battle with activist investor Dan Loeb. The shares jumped the most in almost five months.
Net sales of $2.69bn exceeded analysts’ projections, while adjusted profit of 79 cents was well above the expected mark.
Campbell has been facing a decline in popularity for its signature product: canned soup. The entire packaged-food industry has been struggling to boost sales as consumers flock to healthier options and trendier brands, and Campbell’s lack of a permanent leader has made it even tougher to formulate a plan.
Campbell reaffirmed its earlier forecast and said fiscal 2019 will be a “transition year” as the company carries out its turnaround plan.
