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TheMiddleMarket.com February 2020 Mergers & Acquisitions 1

February 2020 | VOL. 55 | NO. 2Contents

Making thingsA tight labor market, trade issues and the upcoming presidential election are all presenting challenges for the manufacturing industry, but that may be good news for M&A. One important area of investment is robotics.

18

6BlackRock goes green“Climate risk is investment risk,” warns CEO Larry Fink.

8Fundamental fundraisingPlatinum Equity, led by Tom Gores, raises $10 billion for fifth fund.

8Yum broadens menuThe KFC and Taco Bell owner buys fast-casual burger chain Habit Restaurants.

10New law drives M&AStartups take advantage of California Consumer Privacy Act.

12Mid-market lending partnersAflac buys stake in Varagon, commits up to $3 billion.

14Top underwritersKKR muscled into the top 10 arrangers of new U.S. buyout loans in 2019.

Cover Story

Feature25What’s ahead for 2020?Investment bankers from Harris Williams, Lincoln International, Piper Sandler, Stifel, William Blair and more share their forecasts for the new year.

Private Equity Perspective16Award seasonMergers & Acquisitions advances the middle market with three special reports each year.

The Buyside17Triage à la AmazonThe tech giant has revolutionized shopping, and now it’s looking to do the same in healthcare.

Data34Completed dealsGenstar, HGGC and Thoma Bravo are among the buyers that closed deals last year.

People Moves39New hires and promotionsSasank Aleti was promoted to partner at LLR Partners. Kathleen Auda joins Great Rock Capital. Ben Fogle gets hired by MidWest Growth Partners.

Watercooler

001_MAJ0220 1 1/27/2020 4:58:08 PM

2 Mergers & Acquisitions February 2020

Mergers & Acquisitions is thrilled to share that our parent company has relaunched as Arizent. This new direction allows for our publication to continue to deepen our commitment to advancing the finan-cial and professional service industries. Arizent will leverage our editorial brands and events to provide integrated content across our platforms, enhanced research, and peer networks—all to build commu-nities that connect professionals around the most

important ideas driving their industry forward.More than simply a corporate rebranding, the change represents a new

mission-driven direction and business model, in the works since CEO Gemma Postlethwaite arrived in 2018, as Folio pointed out in its coverage of the initia-tive. “Historically, our differentiator was that we went really deep in the indus-tries that we served in terms of news and information content,” chief strategy officer Jeff Mancini told Folio. “Now, we’re starting to think about how we can really advance these communities. It’s about helping them solve these chal-lenges, not just publishing news about these challenges. Taking a more active role in that advancement is core to the mission.”

We are also launching a new offering, Arizent Leaders. Born out of our 17 years of honoring the Most Powerful Women in Banking, we have built this comprehensive, ongoing network to achieve tangible outcomes in gender equality, extending the significant impact to women across financial services as a whole. In keeping with this vision, Mergers & Acquisitions produces the Most Influential Women in Mid-Market M&A.

No other brands dive more deeply into the topics that matter most to leaders in financial and professional services. From emerging business mod-els and new customer behavior to artificial intelligence and data privacy to policy and regulatory trends, Arizent drives the conversations shaping the fu-ture of financial and professional services industries. Please explore and learn more at www.arizent.com and share if you have any questions or feedback. And for more on how Mergers & Acquisitions is fulfilling Arizent’s mission through projects, such as the Rising Stars of Private Equity, see page 16. M&A

– Mary Kathleen Flynn

Inside Word

Our parent company has recently relaunched as Arizent, deepening our commitment to advancing the communities we serve

Rising

February 2020 | VOL. 55 | NO. 2

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Mergers & Acquisitions Vol. 55/No. 2 (ISSN 0026-0010) is published monthly with combined issues in July/August and November/December by Arizent, One State Street Plaza, 27th Floor, New York, NY 10004-1505. Yearly subscription is $1,995; $2035 for one year in all other countries. Periodical postage paid at New York, NY and U.S. additional mailing offices. POSTMASTER: Send address changes to Mergers & Acquisitions / Arizent, One State Street Plaza, New York, NY 10004. For subscriptions, renewals, address changes and delivery service issues contact our Customer Service department at (212) 803-8500 or email: [email protected]. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering financial, legal, accounting, tax, or other professional service. Mergers & Acquisitions is a registered trademark used herein under license. ©2020 Arizent and Mergers & Acquisitions. All rights reserved.

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What’s aheadWe conducted interviews with 8 invest-ment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the un-certainty may have a negative impact throughout 2020.

Interviews

Champions of change Mergers & Acquisitions has named the 2020 Most Influential Women in Mid-Market M&A. We received more nominations than ever before. As a re-sult, we expanded the number honored to 42 in 2020, up from 36 in 2019.

Special reports

Weekly roundupsCheck our website every Friday for PE fundraising scorecard and the Weekly wrap. Recent deals mentioned include Stone Point’s purchase of Duff &Phelps and FireEye’s acquisition of Cloudvisory.

Data

What’s going on @TheMiddleMarket.com

www.themiddlemarket.com

004_MAJ0220 4 1/27/2020 5:01:22 PM


Watercooler

Asset manager BlackRock (NYSE: BLK) is putting climate change at the forefront of the firm’s agenda. In a letter to investors, CEO Larry Fink says that: “Climate change has become a defining factor in companies’ long-term prospects. The evidence on climate risk is compelling investors to reassess core assumptions about modern finance.” Fink went to say that BlackRock will make “sustainability integral to portfo-lio construction and risk management.”

“Investors are increasingly reckoning with these questions and recognizing that climate risk is investment risk. In-deed, climate change is almost invari-ably the top issue that clients around the world raise with BlackRock.”

In 2019, BlackRock has raised $1 billion to invest in wind, solar and battery-storage projects. The world’s largest money manager has received initial commitments from over 35 in-stitutional investors in North America,

Europe and Asia for its third global renewables fund. It’s the most Black-Rock has raised yet for a clean-power fund’s first close.

Clean-energy investments have surged as much of the world pushes to move beyond fossil fuels to fight climate change. Wind, solar and other forms of renewable power will attract about $322 billion annually through 2025, according to the International Energy Agency.

By Demitri Diakantonis and Mary Kathleen Flynn

Watercooler

BlackRock goes green“Climate risk is investment risk,” warns CEO Larry Fink

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Fundamental fundraisingPlatinum Equity, led by Tom Gores, raises $10 billion for fifth fund

Platinum Equity has raised $10 billion for fifth fund. “We have great momentum, with a well-oiled investment ma-chine built on discipline, urgency and a relentless focus on execution, and fueled by the capital resources to pursue complex transactions anywhere in the world,” says Platinum founder Tom Gores. “We have the same fundamental invest-ment strategy, the same sense of urgency and the same disciplined approach to investing that the firm was founded on.”

In 2019, Platinum reached a deal to buy Cision, a provider of software and services to public relations and marketing communications professionals, for $2.74 billion. The firm also announced a $5.3 billion deal that will take portfolio company Vertiv public.

Gores founded Platinum in 1995 and the firm manages about $19 billion across 40 companies. Platinum Equity was ranked among the top 10 performing PE firms in the world in 2018 according to a study by HEC Paris Business School and Dow Jones.

“Our investment brand is strong and getting stronger, and we have relationships today with some of the largest and most active institutional investors in the world,” says Platinum partner Mark Barnhill. “We have earned their trust through our performance and track record.”

In 2019, Platinum bought ship interior designer De Wave Group from Xenon Private equity.

Yum broadens menuThe KFC and Taco Bell owner buys fast-casual burger chain Habit Restaurants

Yum Brands Inc. (NYSE: YUM), the owner of the KFC, Pizza Hut and Taco Bell chains, is buying fast-casual restaurant brand the Habit Restaurants Inc. (Nasdaq: HABT) for $375 million. Habit is known for making burgers, grilled chicken and ahi tuna sandwiches that are chargrilled over an open flame. Habit operates about 300 restaurants in the U.S. and China.

“We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our existing brands and leverage our scale to unlock value from strategic acquisitions,” says Yum CEO David Gibbs. “The Habit Burger Grill is a fantastic addition to the Yum! family and has significant untapped growth potential in the U.S. and internationally.” One acquisition that Yum! made came in 2018 when Pizza Hut bought online restaurant ordering and delivery company QuikOrder.

“Over the past few years, we’ve focused on becom-ing a total access brand by growing our delivery business, expanding our online ordering and mobile channels and en-hancing the in-store experience by introducing drive-thrus, kiosks and technology-centric solutions for operations,” says Habit CEO Russell Bendel. “We’re proud these and other actions have made the Habit Burger Grill an attrac-tive candidate for a transaction of this kind.” BofA Securities and Mayer Brown are advising Yum. Piper Sandler Cos. and Ropes & Gray are advising Habit.

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New law drives M&AStartups take advantage of California Consumer Privacy Act

Businesses operating in California are required to be in compliance with a sweeping new privacy law, the California Consumer Privacy Act. They’ll have a few months to figure out the specifics, because the state’s attorney general is still working out the final rules and isn’t expected to start en-forcement until July. But the new requirements are already causing widespread anxiety among many businesses that handle consumer data.

A wave of startups, law firms and consultants are looking to take advantage of that anxiety—and to capture some of the $55 billion that companies are expected to spend on initial compliance with the law. Bart Willemsen, an analyst at Gartner who advises clients on compliance, has identified over 200 companies pitching products to help companies adhere to privacy rules. None of them actually offer a com-prehensive solution. “There’s no single silver bullet,” he said.

The CCPA mandates that businesses are able to tell customers what data they have gathered about them, and to stop selling that data upon request. That requires com-panies to be more conscious of what data they keep and where they keep it. Building those tools from scratch can be complicated and expensive.

The CCPA only applies to companies that generate more than $25 million in annual revenue, handle personal infor-mation of more than 50,000 people or devices, or earn more than half their revenue from selling personal information.

Diversified investmentsArizona’s State Retirement System moves money to direct lending

Arizona’s $41 billion State Retirement System is looking to dedicate one out of every six dollars it manages to direct lending, more than five times the industry average, in a move some see as a harbinger of what’s to come for the booming asset class.

Investors have plowed hundreds of billions of dollars into private-credit funds in recent years, lured by premiums that are more than five percentage points higher than competing public debt. Yet less than 3 percent of pension portfolios were dedicated to the sector as of December, according to London-based research firm Preqin. That may be about to change.

In a recent survey of firms managing nearly $400 billion in private-credit strategies, nearly 90 percent said they expect pension funds to up their allocations over the next three years. The Ohio Police & Fire Pension Fund said that it was cutting its high-yield exposure as it moves toward a 5 percent target for private debt. And in its most recent financial statement, the Teachers’ Retirement System of the State of Illinois said it “continues increasing exposures to private debt opportunities,” even as it retreats from fixed income broadly.

“We’ve been invested in private debt since early 2013,” said Al Alaimo, who oversees the Arizona fund’s credit investments and aims to boost direct lending, one of the most popular private-credit strategies.

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TheMiddleMarket.com12 Mergers & Acquisitions February 2020

Rise in fintech dealsVisa’s Plaid takeover signals wave of dealmaking

After 2019’s deluge of financial technology megadeals, investors wondered if the boom could continue into 2020. Visa Inc.’s (NYSE: V) $5.3 billion acquisition of startup Plaid Inc. offered an answer: Yes.

“Visa buying Plaid brings fintech from out in the wild to something more mainstream,” says Bain Capital Ventures’ Matt Harris. “It’s a ‘grow-ing up’ moment for all of us,” he said, adding that the startup will now be part of the “critical infrastructure underlying the financial services industry.”

Plaid’s rapid ascent—Square Inc. looked at buying it in 2018 for one-fifth of the eventual selling price, comes as large companies look to expand their offerings, and contend with fast-growing digital competition. In 2019, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion. Charles Schwab Corp. acquired TD Ameritrade Holding Corp. for $26 billion. And Fiserv Inc., Fidelity National Informa-tion Services Inc. and Global Pay-ments Inc. did a series of major deals in 2019 that remade the corporate landscape of payment processing.

Today there are nearly 60 financial technology startups valued at more than $1 billion, according to data from CB Insights, a research firm. Many are now acquisition targets, analysts say.

Bracing for a slowdownBanks are unveiling the biggest round of job cuts in four years

Banks around the world are unveiling the biggest round of job cuts in four years as they slash costs to weather a slow-ing economy and adapt to digital technology.

In 2019, more than 50 lenders have announced plans to cut a combined 77,780 jobs, the most since 91,448 in 2015, according to filings by the companies and labor unions. Banks in Europe, which face the added burden of nega-tive interest rates for years to come, account for almost 82 percent of the total.

The 2019 cuts bring the total for the last six years to more than 425,000. In fact, the actual amount is prob-ably higher because many banks eliminate staff without disclosing their plans. Morgan Stanley is the latest firm to make a year-end efficiency push, cutting about 1,500 jobs, according to Bloomberg News. CEO James Gorman has said the cuts account for about 2 percent of the bank’s workforce.

2019’s figures also underscore the weakness of European banks as the region’s export-oriented economy confronts international trade disputes while negative interest rates eat further into lending revenue. Unlike in the U.S., where government programs and rising rates helped lenders re-bound quickly after the financial crisis, banks in Europe are still struggling to regain their footing. Many are firing staff and selling businesses to shore up profitability. Germany’s biggest lender tops the list of planned job cuts.

Mid-market lending partnersAflac buys stake in Varagon, commits up to $3 billion

Aflac Global Investments, a subsidiary of insurer Aflac Inc. (NYSE: AFL) is forming a partnership with middle-market lender Varagon Capital Partners. Varagon is also extend-ing its partnership with American International Group. Aflac is committing up to $3 billion for Varagon to invest in mid-market loans, and is also buying the minority stake in Varagon held by former and current Oak Hill Capital partners and affiliates.

Aflac and AIG will own equal stakes in Varagon, and the deal does not reduce Varagon’s ownership. “Middle market credit is a strategically important asset class for Aflac and we are excited to partner with Varagon,” says Aflac global chief investment officer Eric Kirsch. Varagon made about $14.5 billion in financing commitments to around 180 com-panies, as of Dec. 31., 2019.

“These long-term commitments from two world-class insurers provide access to substantial capital, enhance Varagon’s capabilities to serve investors and borrowers, and accelerate the execution of our strategic growth ob-jectives,” says Varagon CEO Walter Owens.

Wells Fargo Securities and Davis Polk & Wardwell LLP are advising Varagon. Rothschild and Debevoise & Plimp-ton are advising Aflac. Cadwalader, Wickersham & Taft LLP is representing AIG.

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Rise in fintech dealsVisa’s Plaid takeover signals wave of dealmaking

After 2019’s deluge of financial technology megadeals, investors wondered if the boom could continue into 2020. Visa Inc.’s (NYSE: V) $5.3 billion acquisition of startup Plaid Inc. offered an answer: Yes.

“Visa buying Plaid brings fintech from out in the wild to something more mainstream,” says Bain Capital Ventures’ Matt Harris. “It’s a ‘grow-ing up’ moment for all of us,” he said, adding that the startup will now be part of the “critical infrastructure underlying the financial services industry.”

Plaid’s rapid ascent—Square Inc. looked at buying it in 2018 for one-fifth of the eventual selling price, comes as large companies look to expand their offerings, and contend with fast-growing digital competition. In 2019, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion. Charles Schwab Corp. acquired TD Ameritrade Holding Corp. for $26 billion. And Fiserv Inc., Fidelity National Informa-tion Services Inc. and Global Pay-ments Inc. did a series of major deals in 2019 that remade the corporate landscape of payment processing.

Today there are nearly 60 financial technology startups valued at more than $1 billion, according to data from CB Insights, a research firm. Many are now acquisition targets, analysts say.

Mid-market lending partnersAflac buys stake in Varagon, commits up to $3 billion

Aflac Global Investments, a subsidiary of insurer Aflac Inc. (NYSE: AFL) is forming a partnership with middle-market lender Varagon Capital Partners. Varagon is also extend-ing its partnership with American International Group. Aflac is committing up to $3 billion for Varagon to invest in mid-market loans, and is also buying the minority stake in Varagon held by former and current Oak Hill Capital partners and affiliates.

Aflac and AIG will own equal stakes in Varagon, and the deal does not reduce Varagon’s ownership. “Middle market credit is a strategically important asset class for Aflac and we are excited to partner with Varagon,” says Aflac global chief investment officer Eric Kirsch. Varagon made about $14.5 billion in financing commitments to around 180 com-panies, as of Dec. 31., 2019.

“These long-term commitments from two world-class insurers provide access to substantial capital, enhance Varagon’s capabilities to serve investors and borrowers, and accelerate the execution of our strategic growth ob-jectives,” says Varagon CEO Walter Owens.

Wells Fargo Securities and Davis Polk & Wardwell LLP are advising Varagon. Rothschild and Debevoise & Plimp-ton are advising Aflac. Cadwalader, Wickersham & Taft LLP is representing AIG.

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Top underwritersKKR muscled into the top 10 arrangers of new U.S. buyout loans in 2019

One of the titans of private equity is now also a top debt underwriter.

KKR & Co. muscled into the top 10 arrangers of new U.S. buyout loans last year, jumping ahead of rivals including Morgan Stanley, JPMorgan Chase & Co. and UBS Group AG, according to data compiled by Bloomberg.

Its rise in the lucrative business of arranging the debt is particularity stunning because it was so quick: Until 2017, the firm didn’t even make the cut into the top 20 underwriters for such deals.

KKR, often dismissed by bankers as winning work mostly on its own deals and not often in the lead role, KKR says more than half of the debt deals it manages are now done for third parties. Its rapid ascent is the latest example of how non-bank entities are transforming the lending business worldwide.

KKR is also expanding the business internationally and hoping to replicate its debt market success in equity un-derwriting. The firm’s ascent has come as other established players such as Jefferies Financial Group Inc. and Royal Bank of Canada (NYSE: RY) lost market share in new buyout lending in 2019, the data show.

Yet large investment banks such as Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan have a wider lead over KKR when looking at loans arranged for private equity firms more broadly.

Growing in the MidwestDrive Capital has backed agri tech company FarmLogs

Drive Capital has raised its third venture capital fund at $350 million and its first growth equity fund at $300 million. The two funds will invest mainly invest in startup companies in the Midwest. “We started Drive because we believe that the Midwest is now the best place in the world to build great technology companies,” the firm says in a release. Drive Capital is a venture capital firm that is led by Chris Olsen and Mark Kvamme. The two were previously with Sequoia Capital.

Some of Drive’s investments include farming technol-ogy company FarmLogs, Hologram, which makes software to connect devices and No Wait. The latter notifies diners via text of accurate restaurant wait times. VC firms have invested $136.5 billion in U.S. companies in 2019, surpassing the $130 billion-mark for the second consecutive year, ac-cording to the PitchBook-NVCA Venture Monitor.

In the fourth quarter, VC firms have invested $34.2 billion across 2,215 deals. One factor contributing to the increase in investments is that VC-backed companies are staying private longer.

2020 is off to a good start in closing private equity funds. Other recent fundraises include: Greenspring Associates raising $800 million for its fourth secondary fund and Plati-num Equity closing its fifth fund at $10 billion. M&A

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— Bloomberg News contributed to these reports.

014_MAJ0220 14 1/27/2020 5:00:12 PM

Mergers & Acquisitions covers all aspects of middle-market dealmaking Get access to exclusive news and analysis of deal sourcing, structures, restructuring, and exits. Professionals on all sides of the deal come here to exchange new ideas and develop winning strategies.

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Award Season

By Mary Kathleen Flynn

Mergers & Acquisitions advances the middle market with three special reports each year

Private Equity Perspective

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the Most Influential Women in Mid-Market M&A; the M&A Mid-Market Awards; and the Rising Stars of Private Equity. These proj-ects embody the mission of our recently relaunched and renamed parent company, Arizent, which is to advance the financial and professional service industries, includ-ing the middle market M&A community. (For more on Arizent, see Inside Word on page 2).

We encourage our audience to nominate candidates for all our special reports. Here’s an overview, including timelines. Note: There are no fees associated with any of them. Nominations are accepted only through

electronic forms on our website, themiddle-market.com.

We named the 2020 Most Influential Women in Mid-Market M&A last month in the January issue of the magazine. This marks the fifth year we have produced the list, which recognizes female leaders with significant influence inside their compa-nies and in the wider dealmaking world. It’s been gratifying to watch the project evolve over the years – and become more influential itself. This year, we received more nominations than ever before. As a result, we expanded the number honored to 42 in 2020, up from 36 in 2019. Many dealmak-ers are new to our list, including Rockwood Equity Partners’ Kate Faust, William Blair’s

Shay Brokemond and Avante Capital Partners’ Ivelisse Simon. We open up the nomination process in September.

We will publish the 2019 M&A Mid-Market Awards in the April issue, and we opened up the nominations in January, with a Febru-ary 7 deadline. The awards honor leading dealmakers and deals that set the stan-dard for transactions in the middle market in the previ-ous year. We look for com-panies and individuals who overcame the challenges the year brought, embodied the trends of the period and took their businesses to the next level. We bestow awards in eight categories: Deal of the Year, Dealmaker of the Year, Private Equity Firm of the Year, Investment Bank of the Year, Private Equity Seller of the Year, Strategic Buyer of the Year, Law Firm of the Year, and Lender of the Year.

Also in April, we will open up the nomination process for the 2020 Rising Stars of Private Equity. The deadline for candidates will be in May. We look for individu-als who are full-time private equity investors and whose best days are yet to come. These are the folks you pre-dict will one day play a key leadership role at your PE firm – or will head up their own. They represent the future! M&A

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016_MAJ0220 16 1/27/2020 4:57:06 PM


The Buyside

Triage à la Amazon

By Demitri Diakantonis

The tech giant has revolutionized shopping, and now it’s looking to do the same in healthcare

Artificial intelli-gence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights.

Amazon.com Inc. (Nasdaq; AMZN)

is no exception. The tech conglomerate is using its recent deals for Health Naviga-tor and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emer-gency room. Health Navigator has joined Amazon Care, which is designed to serve as a medical benefit for employees and helps provide care virtually through a video visit, or home visits, if additional care is needed.

Shortly after Amazon announced its purchase of Health Navigator, the company launched Transcribe Medical, a medical tran-scription service that captures conversations between doctors and patients and turns them into digital formats for medical records.

PillPack is also growing within Amazon. The company, now called PillPack by Ama-zon Pharmacy, is working with Blue Cross Blue Shield of Massachusetts to launch a new pharmacy integration app that helps

members manage prescriptions by using Amazon’s own Internet pharmacy. BCBSMA is the first health plan provider to offer this type of integration with PillPack.

In other related deals MTBC, a developer of cloud-based software for healthcare and revenue cycle management tools, closed a deal for CareCloud in January 2020. Care-Cloud, founded in 2009, provides medical software to manage practices, electronic health records and patient experience. The company serves more than 7,000 health-care professionals.

“CareCloud’s cutting-edge cloud-based software, which, through its existing partner-ships, leverages Amazon and Google cloud platforms, brings to MTBC exciting new tech-nology integrations,” said A. Hadi Chaudhry,

president of MTBC, in a statement.

In 2018, Amazon’s Alexa Fund and the Google As-sistant Investment Pro-gram, announced that they invested in patient voice assistant Aiva, which specializes in hands-free communication between patients and caregivers. The Aiva system lets patients choose entertainment or educational information, or to set reminders.

The Alexa Fund in-vests up to $200 million in venture capital in voice technology companies. “We believe experiences designed around the human voice will fundamentally improve the way people use technology,” accord-ing to Amazon’s website. Google Assistant Invest-ment Program also backs early-stage voice assistance programs. M&A

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017_MAJ0220 17 1/27/2020 4:57:40 PM


Sector Spotlight: Manufacturing

A tight labor market, trade issues and the upcoming presidential election

are all presenting challenges for the manufacturing industry, but that may be

good news for M&A in the sector. One important area of investment is robotics.

By Danielle Fugazy

018_MAJ0220 18 1/27/2020 5:33:00 PM


Sector Spotlight: Manufacturing

A tight labor market, trade issues and the upcoming presidential election

are all presenting challenges for the manufacturing industry, but that may be

good news for M&A in the sector. One important area of investment is robotics.

Manufacturing in the U.S. has contracted to its lowest level in more than a decade. The Institute for Supply Management said that its manufacturing index fell in December 2019 to 47.2. That’s its lowest level since June 2009, when it hit 46.3. This, in addition to a tight labor market, China’s retaliatory tariffs and the upcoming presidential election, has made manufacturing a tricky sector to do business in these days.

Still, despite some of the headwinds facing the manufacturing industry, the M&A deal market remains active. Interest rates are low, and companies as well as investors have cash to invest. Additional factors come into play, including the need for consolidation and globalization in the manufacturing industry.

Robots are playing a role as well, and manufacturing automation has become ap-pealing.

“The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a partner with the Riverside Co. “Where economical, we are investing in increased automation to enable us to meet growing sales volume amidst this difficult hiring environment.”

The bottom line: The smartest investors are finding ways not only to invest in manufacturing companies, but to grow their investments as well.

“The manufacturing industry is changing so quickly, and on a global basis, that the sector presents an enormous investment opportunity,” says Michael Psaros, co-founder and managing partner of KPS Capital Partners, a manufacturing-focused private equity firm that recently raised $6 billion and $1 billion funds in four weeks. “Companies and entire industries are being transformed by technology and by globalization, We see value in manufacturing where others do not and we make these manufacturers better. It’s a great time to invest in the sector and we are excited about what’s to come.”

Mergers & Acquisitions explores five trends fueling manufacturing deals on the pages that follow.

By Danielle Fugazy

019_MAJ0220 19 1/27/2020 5:33:01 PM


Cover Story

Historic unemployment numbers have led to an extremely tight labor market. Manufacturers have turned to robots for help to meet demand.

At the beginning of 2020, filings for U.S. unemployment benefits fell to a four-week low—just one of the latest signs that the labor market remains robust. In fact, in 2017 and 2018 the U.S. consistently added more than 200,000 jobs each month. While this has been good news for most part, it has made it very tough for manufac-turers to find skilled labor.

In towns and cities where skilled manufacturing jobs are available, business owners are struggling to find qualified employees. Companies like Triumph Foods in St. Joseph, Missouri, have raised their starting pay and offered additional benefits to entice workers, but that hasn’t solved the problem.

To help deal with the labor short-age, some companies have turned to

robots. “We bring in robotics to help streamline processes and maybe take some of the more physically demand-ing roles,” said Chris Clark, communi-cations manager at Triumph Foods, in an interview with a local TV station. “We’ll automate and put robots in those roles, and then move people who are doing those jobs into other roles.”

According to the 2020 Manufac-turing Outlook: Signs of Optimism report by the National Association of Manufacturers, many companies hope that process-related improvements and new automation for distribution centers will drive efficiencies.

Boosting productivity“Automation to replace labor is a

priority,” said one survey respondent. Private equity firms see the labor

shortage as an opportunity to pur-chase companies that can help with production and push portfolio compa-

nies to become more productive and efficient.

“The tight labor market and in-creasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a Riverside partner. “Automation is an option. We have also worked closely with our portfolio companies to opti-mize the productivity and efficiency of our existing workforce and have estab-lished new incentives where necessary to increase throughput.”

Sun Capital Partners saw an op-portunity in this space and invested in Ames Drywall Finishing Tools and Services, which sells automatic tap-ing and finishing tools to the drywall industry.

Cost cutting“Ames reduces labor costs by 60

percent,” says Aaron Wolfe, a manag-ing director with Sun Capital. “With increasing labor costs and a scarcity of talent, the value in automating has become more appealing. Labor costs are up 15 percent to 20 percent. Be-fore, if you looked at purchasing ma-chines it was an expensive proposition. Today, we are at a tipping point with the higher cost of labor rather than equipment. Manufacturers can now justify investing in tools and machinery because they are seeing the economic return.”

Large global Fortune 500 manu-facturers are focusing on their core competencies and looking to divest non-core assets, resulting in acquisition opportunities for private equity firms.

Large manufacturers are continu-ously evaluating their lines of busi-nesses and in recent years have been selling non-core assets to focus on bottom-line growth and profitability. This trend has been a boon for private equity firms in the sector like KPS Capi-tal Partners.

“Very large global Fortune 500 corporates are focusing on their core competencies,” says Michael Psaros, KPS co-founder. “The public stock market and activists are really push-ing them to divest non-core business lines and they are listening.” Most of his firm’s investments have been complex carve-outs from corporate manufactur-ers executed on a global basis.

In 2019, KPS acquired Howden, a

Robots to the rescue? Corporate divestituresA tight labor market hampers manufacturing companies, but it also leads to dealmaking, especially in robotics.

As large industrial companies seek to shed assets they deem not core to their businesses, private equity firms snatch up the cast-offs.

“The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created.”

020_MAJ0220 20 1/27/2020 5:33:02 PM


nies to become more productive and efficient.

“The tight labor market and in-creasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created,” says Brad Roberts, a Riverside partner. “Automation is an option. We have also worked closely with our portfolio companies to opti-mize the productivity and efficiency of our existing workforce and have estab-lished new incentives where necessary to increase throughput.”

Sun Capital Partners saw an op-portunity in this space and invested in Ames Drywall Finishing Tools and Services, which sells automatic tap-ing and finishing tools to the drywall industry.

Cost cutting“Ames reduces labor costs by 60

percent,” says Aaron Wolfe, a manag-ing director with Sun Capital. “With increasing labor costs and a scarcity of talent, the value in automating has become more appealing. Labor costs are up 15 percent to 20 percent. Be-fore, if you looked at purchasing ma-chines it was an expensive proposition. Today, we are at a tipping point with the higher cost of labor rather than equipment. Manufacturers can now justify investing in tools and machinery because they are seeing the economic return.”

Large global Fortune 500 manu-facturers are focusing on their core competencies and looking to divest non-core assets, resulting in acquisition opportunities for private equity firms.

Large manufacturers are continu-ously evaluating their lines of busi-nesses and in recent years have been selling non-core assets to focus on bottom-line growth and profitability. This trend has been a boon for private equity firms in the sector like KPS Capi-tal Partners.

“Very large global Fortune 500 corporates are focusing on their core competencies,” says Michael Psaros, KPS co-founder. “The public stock market and activists are really push-ing them to divest non-core business lines and they are listening.” Most of his firm’s investments have been complex carve-outs from corporate manufactur-ers executed on a global basis.

In 2019, KPS acquired Howden, a

provider of industrial gas handling products and services, from Colfax Corp. (NYSE: CFX), a welding and valves manufacturer, for $1.8 billion, including $1.66 billion in cash consid-eration.

Take-private opportunitiesThe sale allowed Colfax to pay

down debt following its $3.15 billion acquisition in February 2019 of medical devices maker DJO Global Inc. from the Blackstone Group (NYSE: BX).

Additionally, through 12 acquisitions since 2017, KPS built DexKo –manufac-turer of axles and chassis for trailer and RV manufacturers– into a $1.6 billion revenue business.

“There were a lot of manufactur-ing companies taken public and their market capitalization is way too small to make them relevant. They make for good take-private opportunities,” says Psaros.

KPS portfolio company Autokiniton Global Group, a North American sup-plier of metal-formed components and complex assemblies to the automo-tive industry, acquired Tower Interna-tional in a public company take out in October 2019. The deal was valued at approximately $900 million.

Bristol-Myers Squibb (NYSE: BMY), Siemens AG, General Electric (NYSE: GE) and other manufacturers continu-ously look to shed non-core assets. In early 2020, Bristol-Myers Squibb divest-ed its manufacturing and packaging facility in Italy to Catalent Inc. (NYSE: CTLT) pharmaceuticals company. Also, pharmaceutical company Ferrer sold HealthTech BioActives S.L., an ingredi-ent manufacturer, to Riverside.

A 2018 Ernst & Young study, How Can Divesting Fuel Your Future Growth, noted that nearly nine out of 10 companies planned to divest assets in the next two years, up from roughly four out of 10 a year earlier. Corporate decision makers say shifts in global tax policy, new technologies and other industry trends amplify the need to sell non-core assets and reroute capital to other business areas. Almost three-quarters of the 900 senior corporate and 100 private-equity executives surveyed by E&Y for the report said changes in technology were driving their divestment plans. As companies revisit their business model, 74 percent of the executives say the changing technology landscape is directly influ-encing their divestment plans, up from 55 percent in 2017.

Corporate divestituresAs large industrial companies seek to shed assets they deem not core to their businesses, private equity firms snatch up the cast-offs.

“The tight labor market and increasing wages have led us to pursue a number of different initiatives at our companies to counteract the resulting pressures created.”

“Fortune 500 companiesare focusing on theircore competencies anddivesting non-corebusiness lines.”

021_MAJ0220_001 21 1/28/2020 10:06:32 AM


Cover Story

Retaining customers and growing the customer base is hard work today. Many manufacturers are finding that the best way to do that is to grow their product offering by moving into com-plimentary businesses.

“The driving force for M&A is size. There is a need to be bigger. This has been accelerated with the globalization of manufacturing,” says KPS’ Psaros.

In June 2019, KPS sold Chassis Brakes International Group to Hitachi Automotive Systems. The sale netted a six-times return for KPS. KPS created Chassis Brakes in 2012 to acquire the global automotive foundation brakes business of Robert Bosch GmbH in a corporate carve-out transaction.

“Chassis Brakes didn’t even have a single U.S. plant when we bought it,” says Psaros.

KPS transformed Chassis Brakes into an independent, global business. Chassis Brakes invested €230 million in

research and development and applied engineering, which resulted in commer-cializing three new products. Addition-ally, KPS constructed four new brake assembly facilities in Poland, China, India and Mexico; built four state-of-the-art engineering and R&D centers in Germany, India, the Netherlands and China; and expanded into the North American automotive market.

One Equity Partners has also ben-efited from making its manufacturing portfolio companies bigger. Gross mar-gins are better today than in the 1980s, but the question becomes how to sell more products, says Matt Hughes, a director at One Equity.

“Today’s biggest challenge is at-tracting and retaining customers,” Hughes says. “M&A provides an avenue to combine and expand customer sets, and better utilize investments in selling, general and administrative expenses like R&D and robust distribution chan-

nels that improve the customer experi-ence and enables businesses to sell more of their products to their respec-tive customers.”

In 2017, One Equity invested in Anvil International, a manufacturer of piping components to the North American non-residential construction, mechani-cal, industrial, and oil and gas sectors. Five acquisitions and two years later, One Equity sold Anvil to Smith-Cooper International, a portfolio company of Tailwind, which was able to take advantage of Anvil’s footprint and offer the services to more people. One Equity nearly doubled the company’s Ebitda.

Hughes says One Equity supported Anvil’s growth by providing its newly acquired companies with access to An-vil’s distribution infrastructure and na-tionwide customer base. “Anvil’s growth was supported by growing customer demands resulting from labor savings that threaded and grooved products provided relative to historically welded joints. These products provided an alternative to high-cost and time-con-suming welded joints, allowing skilled welders to focus on more value-added projects.”

One Equity employed the same strategy with Merfish-United, a pipe distribution business. One Equity in-vested in the company in 2012 and then combined it with United Pipe & Supply in 2019. Merfish is now one of the larg-est buyers of standard pipes. “Because Merfish-United has achieved significant scale. it has been able to optimize its procurement and supply chain perfor-mance to deliver savings to customers who place orders in large and small quantities. Merfish-United’s market presence and high route density also means it can offer a diverse portfolio of products on a just-in-time basis, which means Merfish-United’s customers don’t have to carry excess inventory,” says Hughes.

There is widespread agreement the nation’s infrastructure needs signifi-cant improvements, but implement-ing those changes remains mired in political quagmires. Nevertheless, most people expect we’ll see a boom in infrastructure spending at some point in the not-too-distant future, and manufacturers will be in high demand. Additionally, robots could help rebuild roads, bridges and other structures efficiently and safely. Those assump-tions have led many private equity firms, including Blackstone, KKR and Brookfield Asset Management, to raise capital.

Latent demand“With infrastructure in general, you

see a latent demand,” says Riverside’s Roberts. “We need to improve our infrastructure, and there are dedicated dollars to do it. We are actively look-ing for opportunities in this space to

Bigger is better Bridges and tunnelsAs the manufacturing industry has become more global, companies have discovered the advantages of expanding and scaling.

Many private equity firms have raised capital to take advantage of what’s expect to be, eventually, a boom in infrastructure improvements.

022_MAJ0220 22 1/27/2020 5:33:04 PM


nels that improve the customer experi-ence and enables businesses to sell more of their products to their respec-tive customers.”

In 2017, One Equity invested in Anvil International, a manufacturer of piping components to the North American non-residential construction, mechani-cal, industrial, and oil and gas sectors. Five acquisitions and two years later, One Equity sold Anvil to Smith-Cooper International, a portfolio company of Tailwind, which was able to take advantage of Anvil’s footprint and offer the services to more people. One Equity nearly doubled the company’s Ebitda.

Hughes says One Equity supported Anvil’s growth by providing its newly acquired companies with access to An-vil’s distribution infrastructure and na-tionwide customer base. “Anvil’s growth was supported by growing customer demands resulting from labor savings that threaded and grooved products provided relative to historically welded joints. These products provided an alternative to high-cost and time-con-suming welded joints, allowing skilled welders to focus on more value-added projects.”

One Equity employed the same strategy with Merfish-United, a pipe distribution business. One Equity in-vested in the company in 2012 and then combined it with United Pipe & Supply in 2019. Merfish is now one of the larg-est buyers of standard pipes. “Because Merfish-United has achieved significant scale. it has been able to optimize its procurement and supply chain perfor-mance to deliver savings to customers who place orders in large and small quantities. Merfish-United’s market presence and high route density also means it can offer a diverse portfolio of products on a just-in-time basis, which means Merfish-United’s customers don’t have to carry excess inventory,” says Hughes.

There is widespread agreement the nation’s infrastructure needs signifi-cant improvements, but implement-ing those changes remains mired in political quagmires. Nevertheless, most people expect we’ll see a boom in infrastructure spending at some point in the not-too-distant future, and manufacturers will be in high demand. Additionally, robots could help rebuild roads, bridges and other structures efficiently and safely. Those assump-tions have led many private equity firms, including Blackstone, KKR and Brookfield Asset Management, to raise capital.

Latent demand“With infrastructure in general, you

see a latent demand,” says Riverside’s Roberts. “We need to improve our infrastructure, and there are dedicated dollars to do it. We are actively look-ing for opportunities in this space to

catch the upside.”The latest $1.4 trillion federal

spending bill is expected to set aside capital for repairs of bridges, rail-roads and urban rails. Investors want to be sure they get a piece of the pie.

“When you look at the big picture, infrastructure in the U.S. is in terrible condition. This has been for a long time and what’s finally changing is that you are seeing Congress put together spending bills to address the issues,” says Sun Capital’s Wolfe. “We have made an investment thesis around this, looking for any busi-nesses that benefit from infrastructure spending.”

At the end of 2018, Sun Capital invested in StonePoint Materials, which produces about 9 million tons of construction aggregate each year and offers asphalt production and paving services. In 2019, Sun Capital made add-on acquisitions in Road Builders

and Standard Gravel. “We will keep investing in quarries

because they will be in significant demand to repair our infrastructure,” says Wolfe.

Riverside also is gearing up for infrastructure spending. In 2019, Riverside’s portfolio company SureWerx, a provider of tools, equip-ment and safety products for work-ers across North America, made a strategic acquisition of ADA Solutions, which gives the company access to U.S. infrastructure customers. ADA designs, manufactures and distrib-utes detectable warning surface and way-finding solutions for the visually impaired required under the federal Americans with Disabilities Act and Architectural Barriers Act. ADA’s prod-ucts are used on curb ramps, public transit platforms, pedestrian refuge islands and pedestrian rail crossings, and demand is driven by both public infrastructure and private construction projects.

“We see a great opportunity to invest in and benefit from long-term demand in infrastructure,” Roberts says. “We’re constantly looking for new platform opportunities that can capitalize on this demand, while also positioning our existing portfolio companies to participate and benefit as well. The infrastructure channel has long been a target for SureWerx given its significant growth potential and this serves as a great entry point.”

Bridges and tunnelsMany private equity firms have raised capital to take advantage of what’s expect to be, eventually, a boom in infrastructure improvements.

“When you lookat the big picture,infrastructure inthe U.S. is interrible condition.This has been fora long time.”

023_MAJ0220 23 1/27/2020 5:33:05 PM


Cover Story

Real-time data has become more and more important for every industry. This goes for manufacturing as well. Real-time data opens up a host of opportunities for manufacturers to sell additional services to their customers.

Real-time data allows equipment manufacturers to give customers real-time information about the equip-ment’s performance, maintenance needs and life expectancy. That allows the manufacturers to better service their customers by predicting when a part needs to be replaced or routine maintenance is needed. This leads to more sales opportunities for the manufacturers and less downtime for customers.

“The need for real-time data is real and growing,” Wolfe says. “It used to be someone would take the data and interpret it and come up with useful information. Today, that information is available in real time and can identify things so manufacturers can adjust the

performance of the equipment without missing a beat.”

Past production data leads to outdated information while real-time data collection allows manufacturers to immediately find errors, handle quality control issues and avoid problems. Re-al-time data also allows manufacturers to engage customers by responding to requests immediately, and it eliminates guesswork.

Service timePrivate equity firms and strategic

acquirers are paying up for these types of companies. In 2018, Sun Capital sold Aclara Technologies to Hubbell for $1.1 billion. Aclara, a St. Louis-based company, supplies smart infrastructure solutions (SIS) to more than 800 water, gas and electric utili-ties globally.

“These types of devices can tell users when to do preventive mainte-nance on machines. They give notices

like: ‘You are approaching 3,000 hours and yields are declining; it’s time to change the machine or service it,’” says Wolfe.

Vendors in the global smart manufacturing market like Honeywell International Inc. (NYSE: HON), John-son Controls Inc. (NYSE: JCI), Siemens, ABB Ltd. (NYSE: ABB) and Emerson Electric Co. (NYSE: EMR) have com-pleted transactions in that help make manufacturing more efficient.

Smart warehousesIn 2019, Honeywell acquired the

Harsum, Germany-based Transnorm for $493 million. Transnorm was a ware-house automation business used in the parcel delivery, e-commerce fulfillment and airport industries.

At the time of the deal, John Wal-dron, president and CEO of Honeywell’s safety and productivity solutions busi-ness, said the deal’s “offering delivers higher throughput, greater flexibility and better visibility into real-time oper-ations to give our customers the ability to make better business decisions.”

In another recent deal, Siemens agreed to acquire Atlas 3D Inc., a Plymouth, Indiana-based developer of 3D-printing software.

Investors have become enam-ored with the increasingly popular subscription-based sales model, and recurring revenue plays have become gold for investors. As Wolfe says, “You are also seeing manufacturers lease the machines to the companies and then have service contracts. It’s a nice way to have continuous revenue.” M&A

Data in real timeThe trend leads to more sales opportunities for the manufacturers and less downtime for customers. “Manufacturers can

adjust the performanceof the equipmentwithout missing a beat.”

024_MAJ0220 24 1/27/2020 5:33:06 PM


If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome.

“Many companies will insulate themselves from this uncertainty by seeking to complete deals in the first half of 2020, before the Democratic National Conven-tion in July,” explains Andrew Jessen, head of M&A, William Blair. “The biggest source of uncertainty is driven by who will win the Democratic nomination. If a more moderate candidate wins the nomination, volatility headed into November’s election should be relatively muted. But if a more progressive candidate wins the nomination, investors and business owners will be monitoring the campaigns very closely to see how the Democratic and Republican candidates’ proposed policies could affect specific sectors.”

To find out more about what to expect in dealmaking, Mergers & Acquisitions asked eight bankers and other advisors for their outlook on M&A in 2020.

By Mary Kathleen Flynn

WHAT’S AHEAD FOR M&A IN 2020?We ask 8 advisors

Investment bankers from Harris Williams, Lincoln International, Piper Sandler, Stifel, William Blair and more share their forecasts for the new year, with some saying the biggest source of uncertainty for dealmakers is who will win the Democratic presidential nomination.

025_MAJ0220 25 1/27/2020 5:18:10 PM


Feature

What is your forecast for M&A in 2020?

Overall, middle market M&A activ-ity is down in 2019 (although we have picked up market share here at Stifel), and the outlook for 2020 is some-what unsettled at this time. On the one hand, there are several tailwinds supporting deal activity, including continued creative disruption in the technology sector, healthy corporate balance sheets, significant amounts of private equity dry powder, and historically low interest rates. On the other hand, uncertainty surrounding tariffs and trade, and the upcoming

Cole BaderHead of M&A Stifel


Despite volume of M&A transac-tions being down from 2018, I do con-sider 2019 to be a successful year and still at some of the highest levels from a historical perspective. I am also bullish on M&A activity throughout 2020. Historically, in an election year, M&A has been sluggish, given the market doesn’t like uncertainty – and there certainly is a lot of uncertainty coming into 2020. However, given digital transformation, activist activ-ity, availability of capital, low interest rates and the tremendous amount

of dry powder sitting in the alterna-tive investment asset class needing to be deployed, these factors should be driving M&A activity well into the foreseeable future. We continue to see strong M&A activity in the business services, healthcare and technology sectors.

How will the overall economy affect M&A?

As far as the economy goes, I am generally bullish heading into 2020, but there are always reasons to be cautious. I think the biggest risk to the economy comes from outside of the

Paul AversanoManaging Director, Alvarez & Marsal

U.S. and could relate to some unfore-seen foreign geopolitical event. The world is an increasingly global place, and the global economy is intercon-nected – so while I currently do not see anything on the horizon that could derail the U.S. economy, I think investors should not be complacent and be taking all steps necessary to recession-proof their investments – regardless of the sector. We are seeing continued issues in the retail and energy sectors, and sectors like automotive could be next. That being said, I am still bullish on M&A even in a down economy, as after a period of pause, both buyers and sellers will be forced to adjust their expectations to the new normal.

How will the presidential campaigns and the November election affect M&A?

We are not currently seeing any-thing outside of the normal, as far as investors looking to accelerate deal flow, and the pipeline of sell-side transactions appears to be relatively robust as far as new processes looking to kick off in the first quarter of 2020. Accordingly, there does not appear to be an election-year impact like we have seen in prior cycles. I believe investors are waiting (or hoping) for more volatility and the markets to come down, such that capital can be deployed and lower valuations. Sectors such as financial services and healthcare tend to be impacted greater by more or less regulation, so depending on the political party in office after the 2020 election, those sectors could be impacted.

“I think the biggest risk to the economy comes from outside of the U.S.”

026_MAJ0220 26 1/27/2020 5:18:13 PM


Feature


Overall, middle market M&A activ-ity is down in 2019 (although we have picked up market share here at Stifel), and the outlook for 2020 is some-what unsettled at this time. On the one hand, there are several tailwinds supporting deal activity, including continued creative disruption in the technology sector, healthy corporate balance sheets, significant amounts of private equity dry powder, and historically low interest rates. On the other hand, uncertainty surrounding tariffs and trade, and the upcoming

U.S. presidential election could deter M&A in certain sectors, depending on how things ultimately shake out. As well, cross-border activity (particularly Asia into the U.S.) is clearly challenged because of the political climate. No matter what happens, I would expect the largest concentration of deals to be (in order) in the technology, health-care and industrials sectors, just like this year.


Despite the market obsession with recession, we believe that economic

Cole BaderHead of M&A Stifel

growth is slowing but not stalling. With a series of interest rate cuts in 2019, the Federal Reserve has done its part to revive cyclical growth, which is a positive for M&A. While consumer spending remains healthy, unemploy-ment low and corporate profits solid, we are closely watching sentiment in the business community. We’d like companies to make greater capital investments and hopefully see a U.S. resolution to the trade war with China. Potential economic impacts from higher tariffs are hard to predict. Right now, if a downturn hits, I suspect a lot of management teams will proceed with deals – but with an ounce or two of caution.


There’s no doubt this election has the potential to cause immense disruption, particularly in certain industries that could be significantly impacted by a potential change of administration (banks and healthcare, for example). In those cases, there may be a push to get deals done earlier in the year before any votes are cast. I think we’ll have a bet-ter handle on how this all plays out once we know who the Democratic nominee is. Keep in mind, the stock market historically has performed well in presidential election years when a sitting president runs for re-election, and a strong stock market is another tailwind for increased M&A activity.

U.S. and could relate to some unfore-seen foreign geopolitical event. The world is an increasingly global place, and the global economy is intercon-nected – so while I currently do not see anything on the horizon that could derail the U.S. economy, I think investors should not be complacent and be taking all steps necessary to recession-proof their investments – regardless of the sector. We are seeing continued issues in the retail and energy sectors, and sectors like automotive could be next. That being said, I am still bullish on M&A even in a down economy, as after a period of pause, both buyers and sellers will be forced to adjust their expectations to the new normal.


We are not currently seeing any-thing outside of the normal, as far as investors looking to accelerate deal flow, and the pipeline of sell-side transactions appears to be relatively robust as far as new processes looking to kick off in the first quarter of 2020. Accordingly, there does not appear to be an election-year impact like we have seen in prior cycles. I believe investors are waiting (or hoping) for more volatility and the markets to come down, such that capital can be deployed and lower valuations. Sectors such as financial services and healthcare tend to be impacted greater by more or less regulation, so depending on the political party in office after the 2020 election, those sectors could be impacted.

“I think the biggest risk to the economy comes from outside of the U.S.”

“There’s no doubt this election has the potential to cause immense disruption.”

027_MAJ0220 27 1/27/2020 5:18:16 PM


Feature


It was a strong year in 2019 across multiple industries, despite the overall market being down from a near all-time high in 2018. From all indications, it appears that 2020 M&A transaction volume should be higher than 2019. This is due in part to the significant momentum gained in the second half of 2019 — the fourth quarter specifi-cally. Across the market, we continue to monitor three primary themes going into the new year: cyclicality, foreign trade risk and labor intensity. The most active sectors will continue to be those

J.R. DoolosDirector, M&A Group, KeyBanc Capital Markets


2019 is a deal value year on pace with 2018. Expectations are approxi-mately $2 trillion in deal activity, albeit a good portion of this volume showed up in mega deals in Pharma, Fin/Tech Services, Media and Banking. In Q3 alone approximately eight deals above $10 billion closed during the quarter, accounting for over one-third of total deal value. Globally, Cross Border M&A has slowed due to uncertainty in Trade. Caution is being taken by lenders financing LBOs, as Leveraged Loan Volume is down to its lowest point all

year in October 2019, and debt funded dividends from a syndicated lending perspective are also down year over year. Domestic M&A activity, albeit somewhat sector-specific is still active but off the pace in deal count vs deal value year over year.


Huntington’s guidance to our pri-vately held middle market clients and to our PE Platform Owners and Buyers is to always be recession cognizant and ready. While our global institution view is 25 percent risk of recession for

Karen DaviesPrivate Equity Managing Director, Huntington Bank

the next 6-12 months, specific sectors are already cycling - i.e. Transportation and some Manufacturing. There are still many unknowns. However, the Midwest Regional economic indicators where we serve our Middle Market clients are still showing signs of resilience, and the Public Large Corporates are showing signs of growth as evidenced in the S&P with continued optimism in growth for 2020. Our guidance to our clients is to always, not just in a recession, evalu-ate all forms of risk in your businesses: labor shortage and wage pressure impacts, supply chain/commodity and foreign currency risk due to trade wars, evaluation of cost structure for sensi-tization to a potential downturn. And for sellers, appropriately time your exit so you are not sitting on the sidelines riding out a cycle if your intent is to transfer wealth


This is somewhat of an unknown, if the coming election and the tone it will set for dealmaking will cause decelera-tion in M&A activity. Often uncertainty alone may cause sellers to idle until the playing field is clear- i.e. push deal flow from 2020 to 2021.

Certainly, change in U.S. Party could negatively affect Bank M&A, due to potential regulatory changes. The real unknowns and rationale for a global M&A 2020 slowdown are a combina-tion of three linked variables: global recession indicators including the U.S. indicators, trade wars and geopolitical changes.

Domestically, the U.S. could still out-perform global M&A in 2020 like it did in 2019. Anecdotally, Huntington’s PE dealmakers and Middle Market CEOs remain evenly split on outperform optimism versus neutral/slow down for 2020 M&A deal activity.

028_MAJ0220 28 1/27/2020 5:18:23 PM


Feature


It was a strong year in 2019 across multiple industries, despite the overall market being down from a near all-time high in 2018. From all indications, it appears that 2020 M&A transaction volume should be higher than 2019. This is due in part to the significant momentum gained in the second half of 2019 — the fourth quarter specifi-cally. Across the market, we continue to monitor three primary themes going into the new year: cyclicality, foreign trade risk and labor intensity. The most active sectors will continue to be those

with less cyclical exposure, limited risk of foreign trade disruption and less susceptibility to ongoing tightness in labor markets. In particular, there will continue to be strong M&A volume within the healthcare and real estate sectors, as well as service-based based companies across all sub-sectors.


Heading into 2020, the economy ap-pears to remain on track for continued growth and is supportive of a healthy M&A environment. Although we are not calling for a recession, we encourage

J.R. DoolosDirector, M&A Group, KeyBanc Capital Markets

clients to closely diligence and under-stand the risk factors for companies that operate in historically cyclical industries. No sector can be fully insu-lated from a potential recession; how-ever, companies with a highly variable cost structure serving non-discretionary markets are in position to best weather the impacts of a recession. Similar to 2019, extra attention is being given to manufacturing companies with poten-tial exposure to commodity pricing or with heavy reliance on foreign sourcing, which could be susceptible to increased costs driven by further tariff activity.


In the last two election cycles, there has been a marked decline in M&A activity versus the year prior, with a notable decrease in the months leading up to Election Day. Although we are not advising clients to make M&A decisions based solely on the potential uncertainty that is created during an election process, it has been a contributing factor in determining the appropriate timing to pursue a transaction. Given these dynamics, we are expecting a significant number of assets to come to market during the first half of 2020 and push towards a closing by late second or early third quarter to avoid potential uncertainty later in the year.

the next 6-12 months, specific sectors are already cycling - i.e. Transportation and some Manufacturing. There are still many unknowns. However, the Midwest Regional economic indicators where we serve our Middle Market clients are still showing signs of resilience, and the Public Large Corporates are showing signs of growth as evidenced in the S&P with continued optimism in growth for 2020. Our guidance to our clients is to always, not just in a recession, evalu-ate all forms of risk in your businesses: labor shortage and wage pressure impacts, supply chain/commodity and foreign currency risk due to trade wars, evaluation of cost structure for sensi-tization to a potential downturn. And for sellers, appropriately time your exit so you are not sitting on the sidelines riding out a cycle if your intent is to transfer wealth


This is somewhat of an unknown, if the coming election and the tone it will set for dealmaking will cause decelera-tion in M&A activity. Often uncertainty alone may cause sellers to idle until the playing field is clear- i.e. push deal flow from 2020 to 2021.

Certainly, change in U.S. Party could negatively affect Bank M&A, due to potential regulatory changes. The real unknowns and rationale for a global M&A 2020 slowdown are a combina-tion of three linked variables: global recession indicators including the U.S. indicators, trade wars and geopolitical changes.

Domestically, the U.S. could still out-perform global M&A in 2020 like it did in 2019. Anecdotally, Huntington’s PE dealmakers and Middle Market CEOs remain evenly split on outperform optimism versus neutral/slow down for 2020 M&A deal activity.

“The most active sectors will continue to be those with less cyclical exposure, limited risk of foreign trade disruption and less susceptibility to ongoing tightness in labor markets.”

029_MAJ0220 29 1/27/2020 5:18:25 PM


Feature


Harris Williams continues to see strong momentum across the firm’s 10 Industry Groups heading into 2020. While the late-stage nature of the cycle is top-of-mind for investors, we expect marquee assets with resilient business models to continue to com-mand premium prices. Near-record valuations for the most in-demand as-sets have led some buyers to explore sectors and businesses with some element of cyclicality, but with solid long-term potential. Some buyers are choosing to focus on smaller targets,

Derek LewisManaging Director, Harris Williams


M&A market fundamentals are solid. Volume and valuations remain elevated by historical standards, despite a decline in 2019 activity. Momentum is driven by strategic buy-ers seeking acquisition growth and by significant private equity fundraising. This supply-demand imbalance, com-bined with positive business perfor-mance and available lending, should translate into 2020 activity that resembles 2019’s. A continuing trend is the selectivity of buyers. Growing cyclical concerns in a high-valuation

environment are causing market bifurcation, with heightened inter-est in a smaller universe of quality companies. At William Blair, we have benefited from this trend because of our focus on high-quality, high-growth companies; our M&A volume and value both increased in 2019. Looking to 2020, we are optimistic about the M&A market based on a year-over-year uptick in pitch activity and an engaged pipeline. Growing apprehension about the economic cycle and uncertainly related to the presidential election, however, will be closely monitored headwinds.

Andrew JessenHead of M&A, William Blair


While valuations remain at elevated levels, buyers and lenders have become increasingly selective about the com-panies they pursue. This trend is driven by apprehension about the duration of the current cycle, rather than concern about economic fundamentals. Overall business performance remains posi-tive, and corporate executives are quite confident in their business outlooks — except for sectors directly affected by the ongoing tariff war with China. For most companies, the primary challenge is recruiting enough talent to support growth, given record-low unemploy-ment. Because of growing wariness of a recession, financial sponsors are orient-ing more toward economically resilient sectors. However, even in sectors that are considered cyclical, sponsors are conducting more sophisticated market diligence to identify companies that are more insulated from a recession as a result of macro demographic trends, high degrees of recurring revenue, proprietary and highly differentiated offerings, technology, or other charac-teristics of high-quality businesses.


We believe that uncertainty related to this election will affect the timing — and potentially overall volume — of deal activity in 2020. Many compa-nies will insulate themselves from this uncertainty by seeking to complete deals in the first half of 2020, before the Democratic National Convention in July. The biggest source of uncertainty is driven by who will win the Demo-cratic nomination. If a more moderate candidate wins the nomination, volatil-ity headed into November’s election should be relatively muted.

030_MAJ0220_001 30 1/27/2020 5:20:43 PM


Feature


Harris Williams continues to see strong momentum across the firm’s 10 Industry Groups heading into 2020. While the late-stage nature of the cycle is top-of-mind for investors, we expect marquee assets with resilient business models to continue to com-mand premium prices. Near-record valuations for the most in-demand as-sets have led some buyers to explore sectors and businesses with some element of cyclicality, but with solid long-term potential. Some buyers are choosing to focus on smaller targets,

also with a view toward long-term growth. The tremendous amount of capital strategic buyers have on their balance sheets combined with the amount of dry powder private equity groups have to invest will continue to drive deal flow.


Going into 2020, investors are cer-tainly aware of the late-stage nature of the cycle. That said, they continue to look for top-quality assets, just as they were a year ago, corporations are still looking to M&A to support or-

Derek LewisManaging Director, Harris Williams

ganic growth, and private equity firms have capital to put to work. While many buyers are modeling for a down cycle, companies that perform well in different economic cycles and that are managing their businesses for the long term continue to attract inves-tor attention. In today’s economic landscape, certain sectors within the economy are seeing stronger deal flow than others, but Harris Williams continues to see strong interest for quality assets.


With any election comes some level of uncertainty, but our advice to cli-ents about the timing of a transaction is company-specific rather than tied to an external event like an election. Certain trends such as tariffs caus-ing uncertainty for companies with international footprints are likely to be top of mind through the 2020 elec-tion. That said, the impacts to date on cross-border dealmaking have been relatively limited. Regardless of the outcome of the election, the M&A market will continue to evolve over time and have a positive impact on the economy.


While valuations remain at elevated levels, buyers and lenders have become increasingly selective about the com-panies they pursue. This trend is driven by apprehension about the duration of the current cycle, rather than concern about economic fundamentals. Overall business performance remains posi-tive, and corporate executives are quite confident in their business outlooks — except for sectors directly affected by the ongoing tariff war with China. For most companies, the primary challenge is recruiting enough talent to support growth, given record-low unemploy-ment. Because of growing wariness of a recession, financial sponsors are orient-ing more toward economically resilient sectors. However, even in sectors that are considered cyclical, sponsors are conducting more sophisticated market diligence to identify companies that are more insulated from a recession as a result of macro demographic trends, high degrees of recurring revenue, proprietary and highly differentiated offerings, technology, or other charac-teristics of high-quality businesses.


We believe that uncertainty related to this election will affect the timing — and potentially overall volume — of deal activity in 2020. Many compa-nies will insulate themselves from this uncertainty by seeking to complete deals in the first half of 2020, before the Democratic National Convention in July. The biggest source of uncertainty is driven by who will win the Demo-cratic nomination. If a more moderate candidate wins the nomination, volatil-ity headed into November’s election should be relatively muted.

“Near-record valuations for the most in-demand assets have led some buyers to explore sectors and businesses with some element of cyclicality, but with solid long-term potential.”

031_MAJ0220 31 1/27/2020 5:18:33 PM


Feature


We are finishing another record year of closings at Lincoln and also have record levels of backlog looking into 2020. With the prolonged period of economic expansion, beyond the timing most expected, we have started seeing private equity firms think about selling high-performing companies with shorter-than-expect-ed hold periods. We think this bodes well for both the quality and quantity of deal flow going into 2020.

On the flip side, indications from several private equity firms suggest

Christopher StradlingManaging Director, Lincoln International


2019 has been a successful year for M&A activity in North America, not a record but a general continuation of the strong market. The drivers of recent years remain: Companies are contend-ing with persistent low organic growth rates and constant technological evolution that is challenging traditional business models and often lowering the barriers to entry. PEs and VCs are investing in those technology trends. Valuations remain strong as strate-gic buyers leverage healthy balance sheets; debt is available and relatively

cheap, and financial sponsors continue to raise record levels of funds.

Technological change cuts across every industry sector and continues to be a consistent theme driving the M&A market. M&A has become a strategic necessity in corporate boardrooms giv-en the rapid creation of new companies that threaten incumbent businesses. Across industries, companies are pursu-ing M&A to augment and to acceler-ate the development of new product/service capabilities, delivery models, people and geographic expansion.

These trends favor inorganic strategies rather than internal initia-

Peter LombardManaging Director, Piper Sandler & Co.

tives (R&D and otherwise), as not just capability but speed to capability gains urgency. These trends will continue to motivate M&A among strategic buyers and private equity investors.


We have all learned to live with a lot more economic and (geo) political uncertainty than anyone would have expected just a couple of years ago. The strength of the U.S. economy, low inflation, tax reform, favorable debt and overall capital markets have enabled M&A participants to largely shrug off the noise and push forward, and valuations continue to be histori-cally high if not at peak levels. While the U.S. domestic economy has flashed warning signs, it’s hard to predict a downturn given its resilience to a lot of stress.

For high growth technology com-panies, the path to profitability, and understanding the levers to drive profitability, have been key focus areas. Lenders while aggressive have been disciplined, and buyers in our sectors are generally investing in growth and capitalizing companies more conserva-tively to accommodate growth.

Sectors most sensitive to consumer discretionary spending would feel the most immediate impact from reces-sion-which suggests everything from cars to clothes to the latest smart-phones to leisure travel is vulnerable.

How will the the November election affect M&A?

Historically, M&A markets have tended to slow in the months leading up to a presidential election (with the recent exception of 2016). That sug-gests a good start to the year, consis-tent with current conditions, and some urgency to complete deals comfortably in advance of the election.

032_MAJ0220 32 1/27/2020 5:18:37 PM


Feature


We are finishing another record year of closings at Lincoln and also have record levels of backlog looking into 2020. With the prolonged period of economic expansion, beyond the timing most expected, we have started seeing private equity firms think about selling high-performing companies with shorter-than-expect-ed hold periods. We think this bodes well for both the quality and quantity of deal flow going into 2020.

On the flip side, indications from several private equity firms suggest

there has been a slowing level of deal flow in Q4 2019, but based on our backlog, I believe this is merely a calm before a flurry of new deal op-portunities to come to market in early 2020.

We recently surveyed more than 160 private equity investors and over 60% said that they expect deal flow to be either flat or up in 2020.

If this prediction plays out, 2020 will be another great year for M&A. Add to that the fact that nearly 80% said that their number one objective in 2020 is deploying capital and it’s hard not to be optimistic.

Christopher StradlingManaging Director, Lincoln International


We enter the new year with contin-ued strength in the economy overall, but with some areas of strength and weakness that investors should con-sider carefully.

Companies that sell well on the e-commerce channel are likely to continue their expansion even in the face of an economic slowdown, un-less the products they sell are highly discretionary and cyclical in nature. Brick and Mortar-only platforms will continue to have challenges.


Investors like predictability and certainty when making a deal. This is particularly important for the first year of an investment, when debt levels and integration risks are at their highest levels. The polarization of presidential politics in recent elec-tion cycles have not contributed to the feeling of stability. As the election draws nearer and the differences in leading candidates becomes more apparent, dealmaking could be af-fected.

All that said, at the end of the elec-tion period, it feels likely that the U.S. will end up with either the same presi-dent (a known quantity at this point), or a new president that is promising more stability, improved international relations (i.e tariffs) and some form of economic stimulus.

In either outcome, I believe the presidential election, while certain to be entertaining, will have less impact on the overall dealmaking market than many predict. The strength of the overall economy and consumer confidence will be the primary drivers of the market. M&A

tives (R&D and otherwise), as not just capability but speed to capability gains urgency. These trends will continue to motivate M&A among strategic buyers and private equity investors.


We have all learned to live with a lot more economic and (geo) political uncertainty than anyone would have expected just a couple of years ago. The strength of the U.S. economy, low inflation, tax reform, favorable debt and overall capital markets have enabled M&A participants to largely shrug off the noise and push forward, and valuations continue to be histori-cally high if not at peak levels. While the U.S. domestic economy has flashed warning signs, it’s hard to predict a downturn given its resilience to a lot of stress.

For high growth technology com-panies, the path to profitability, and understanding the levers to drive profitability, have been key focus areas. Lenders while aggressive have been disciplined, and buyers in our sectors are generally investing in growth and capitalizing companies more conserva-tively to accommodate growth.

Sectors most sensitive to consumer discretionary spending would feel the most immediate impact from reces-sion-which suggests everything from cars to clothes to the latest smart-phones to leisure travel is vulnerable.

How will the the November election affect M&A?

Historically, M&A markets have tended to slow in the months leading up to a presidential election (with the recent exception of 2016). That sug-gests a good start to the year, consis-tent with current conditions, and some urgency to complete deals comfortably in advance of the election.

033_MAJ0220 33 1/27/2020 5:18:39 PM


Key Middle-Market M&A Deals Completed in 2019

02/01/19 3M Co MModal IP-Technology Business Business Services 1000.012/02/19 Apple Inc Intel-Smartphone modem bus. Communications Equipment 1000.005/31/19 CCMP Capital Advisors LP BGIS Business Services 1000.002/04/19 Cleco Corporate Hldg LLC NRG South Central Gen LLC Electric, Gas, and Water Distribution 1000.005/30/19 Genstar Capital LLC Prometheus Grp Entrps LLC Prepackaged Software 1000.006/03/19 MBK Partners Management Godiva Chocolatier Inc-Asia Food and Kindred Products 1000.007/16/19 Nextera Energy Transmission Trans Bay Cable LLC Electric, Gas, and Water Distribution 1000.011/07/19 Simply Good Foods Co Quest Nutrition LLC Food and Kindred Products 1000.007/01/19 Victory Capital Holdings Inc USAA Asset Management Co Investment & Commodity Firms,Dealers,Exchanges 1000.010/04/19 CVMC REIT II Inc CVMC REIT Inc Investment & Commodity Firms,Dealers,Exchanges 999.602/24/19 Daikin Europe NV AHT Cooling Systems GmbH Machinery 999.107/31/19 ICG Strategic Eq Advisors LLC Standard Chartered- PE Busines Investment & Commodity Firms,Dealers,Exchanges 994.108/05/19 Marks & Spencer Group PLC Ocado Group PLC-Online Grocery Miscellaneous Retail Trade 993.807/16/19 Wieland-Werke AG Global Brass & Copper Holdings Metal and Metal Products 989.405/08/19 Wanda Cinema Line Co Ltd Wanda Media Co Ltd Motion Picture Production and Distribution 984.3N/A Agapier Investments Ltd Millennium & Copthorne Hotels Hotels and Casinos 984.001/31/19 Omv Exploration & Production Seb Upstream Sdn Bhd Investment & Commodity Firms,Dealers,Exchanges 979.708/30/19 Oaktree Capital Management LP SDIN Residencial SL Real Estate; Mortgage Bankers and Brokers 979.601/17/19 Investor Group VTTI BV Wholesale Trade-Nondurable Goods 975.004/24/19 Government of India Allahabad Bank Ltd Commercial Banks, Bank Holding Companies 971.307/03/19 Investor Group Unibail-Rodamco-Wfield Real Estate; Mortgage Bankers and Brokers 966.801/01/19 Veritex Holdings Inc Green Bancorp Inc Commercial Banks, Bank Holding Companies 965.512/10/19 China Mengniu Dairy Co Ltd Bellamys Australia Ltd Food and Kindred Products 958.009/17/19 Henan Yicheng New Energy Co Kaifeng Carbon Co Ltd China Electronic and Electrical Equipment 955.610/04/19 OneSavings Bank PLC Charter Court Finl Svcs Grp Real Estate; Mortgage Bankers and Brokers 952.101/10/19 Valero Energy Corp Valero Energy Partners LP Oil and Gas; Petroleum Refining 950.411/25/19 Alkermes PLC Rodin Therapeutics Inc Business Services 950.006/03/19 One Madison Corp Ranpak Corp Paper and Allied Products 950.001/01/19 Thoma Bravo LLC Veracode Inc Prepackaged Software 950.012/18/19 America Movil Sab De Cv Nextel Telecomunicacoes Ltda Telecommunications 948.503/18/19 Haymaker Acquisition Corp OneSpaWorld (Bahamas) Ltd Personal Services 948.001/04/19 CVC Capital Partners VII LP Convergeone Holdings Inc Prepackaged Software 946.712/13/19 Delo-Tsentr OOO TransContainer PJSC Transportation and Shipping (except air) 942.501/15/19 Solution King Invests Ltd NEVS Transportation Equipment 930.003/30/19 Investor Group Star Health & Allied Insurance Insurance 927.510/31/19 AMETEK Inc Gatan Inc Measuring, Medical, Photo Equipment; Clocks 925.001/01/19 Drax Smart Generation Holdco Scottish Power Generation Ltd Electric, Gas, and Water Distribution 923.107/17/19 Walnut Bidco Plc Oriflame Holding AG Soaps, Cosmetics, and Personal-Care Products 921.807/29/19 Investor Group Australis Seafoods SA Food and Kindred Products 921.607/26/19 Tokai Carbon Co Ltd COBEX Holdco GmbH Electronic and Electrical Equipment 921.212/20/19 Eaton Corp PLC Souriau SAS Electronic and Electrical Equipment 920.002/12/19 BPCE SA Natixis SA-Specialized Fin Bus Credit Institutions 918.112/19/19 Ascott Residence Trust Ascendas Hospitality Trust Investment & Commodity Firms,Dealers,Exchanges 917.501/31/19 Pt Semen Indonesia Industri Holcim Indonesia Tbk PT Stone, Clay, Glass, and Concrete Products 917.003/21/19 Gold Cheers Corp Ltd Kuwait Energy Plc Oil and Gas; Petroleum Refining 915.0

Date Acquirer Target Target Industry Value ($mil)

12/17/19 DRA Advisors LLC SSEP-Industrial Property Real Estate; Mortgage Bankers and Brokers 908.511/12/19 Swedish Orphan Biovitrum AB Dova Pharmaceuticals Inc Drugs 902.705/01/19 Church & Dwight Co Inc Ideavillage Prod-FLAWLESS Miscellaneous Manufacturing 900.003/31/19 Loccitane Intl Sa Elemis Ltd Soaps, Cosmetics, and Personal-Care Products 900.011/04/19 Symrise AG Intl Dehydrated Foods Inc Food and Kindred Products 900.012/24/19 OpenText Corp Carbonite Inc Business Services 896.003/27/19 Times Hldg II Ltd Hong Kong Intl Constr Invest Construction Firms 894.610/31/19 Nidec Corp OMRON Automotive Electronics Metal and Metal Products 892.610/25/19 Nanometrics Inc Rudolph Technologies Inc Measuring, Medical, Photo Equipment; Clocks 892.208/01/19 Fujifilm Diosynth Biotech Biogen (Denmark) New Mnfg ApS Drugs 890.007/02/19 NGL Energy Partners LP Mesquite Disposals Unltd LLC Sanitary Services 890.008/05/19 Aliansce Sonae Shopping Center Aliansce Shopping Centers Sa Real Estate; Mortgage Bankers and Brokers 884.209/30/19 AXA Real Estate Invest Mgrs SA NorthStar Realty Europe Corp Investment & Commodity Firms,Dealers,Exchanges 877.011/04/19 Industrial Buildings Corp Ltd Jerusalem Economy Ltd Real Estate; Mortgage Bankers and Brokers 876.101/22/19 Samarinda Investments SL Laureate-Universities Educational Services 871.202/25/19 KKR & Co Inc SemCAMS ULC-Asts Oil and Gas; Petroleum Refining 870.806/06/19 NWH Australia AssetCo Pty Ltd Healthscope Ltd-Hosp Ppty Health Services 869.508/01/19 11411802 Canada Inc Safecharge Intl Group Ltd Business Services 869.503/22/19 Ara Korea Global Private Real Seoul Sq Real Estate; Mortgage Bankers and Brokers 869.301/01/19 Nippon Steel & Sumitomo Metal Nisshin Steel Co Ltd Metal and Metal Products 867.105/31/19 Groupe Lactalis SA Aspen Pharmacare-Nutritionals Food and Kindred Products 863.412/13/19 Impala Platinum Holdings Ltd North American Palladium Ltd Mining 861.906/06/19 Medical Properties Trust Inc Healthscope Ltd-Hosp Ppty(11) Health Services 859.006/07/19 Tungsten Bidco Ltd Nightstar Therapeutics PLC Drugs 858.803/18/19 Konnectivity Pte Ltd M1 Ltd Telecommunications 856.311/29/19 Hydra RL Bidco Pty Ltd Aveo Group Ltd Real Estate; Mortgage Bankers and Brokers 855.607/17/19 Alberta Investment Management TC Energy-N Courier Pipeline Electric, Gas, and Water Distribution 855.601/01/19 Cadence Bancorp State Bank Financial Corp Commercial Banks, Bank Holding Companies 855.109/03/19 HGV Hamburger Gesellschaft Vattenfall Waerme Hamburg GmbH Electric, Gas, and Water Distribution 850.309/16/19 Deutsche Boerse AG Axioma Inc Prepackaged Software 850.001/29/19 MGM Resorts International Empire City Casino Amusement and Recreation Services 850.002/11/19 WeWork Property Advisors LLC Hudsons Bay Co-Lord & Taylor Retail Trade-General Merchandise and Apparel 850.001/17/19 Agrosuper SA Empresas AquaChile SA Food and Kindred Products 847.911/06/19 Shiseido Americas Corp Drunk Elephant Holdings LLC Soaps, Cosmetics, and Personal-Care Products 845.007/01/19 Liberty House Ltd Arcelormittal Piombino SpA Metal and Metal Products 841.206/04/19 Broadview Industries BV Formica Corp Rubber and Miscellaneous Plastic Products 840.005/01/19 Morgan Stanley Solium Capital Inc Prepackaged Software 839.409/27/19 Noverco Inc Valener Inc Electric, Gas, and Water Distribution 837.708/30/19 AMF Pensionsforsakring AB Bergvik Skog Ost AB Agriculture, Forestry, and Fishing 836.404/01/19 CenterState Bank Corp National Commerce Corp Commercial Banks, Bank Holding Companies 834.803/01/19 Cimarex Energy Co Resolute Energy Corp Oil and Gas; Petroleum Refining 832.010/09/19 SJW Group Connecticut Water Service Inc Electric, Gas, and Water Distribution 830.306/06/19 Resurgent Power Ventures Pte Prayagraj Power Generation Co Electric, Gas, and Water Distribution 826.311/01/19 Albemarle Corp Mineral Resources Ltd-Wodgina Mining 820.005/17/19 Eurobank Ergasias SA Grivalia Properties REIC Real Estate; Mortgage Bankers and Brokers 815.911/04/19 Investor Group Digital Realty-Turn-Key Flex Real Estate; Mortgage Bankers and Brokers 811.009/10/19 DISH Network Corp Echostar-BSS Business Radio and Television Broadcasting Stations 810.407/01/19 Pfizer Inc Therachon AG (Now 4j8824) Drugs 810.008/16/19 Newcrest Mining Ltd Red Chris Dvlp Co Ltd-Red Mining 806.509/17/19 Sonic Financial Corp Speedway Motorsports Inc Amusement and Recreation Services 806.0


034_MAJ0220 34 1/27/2020 4:52:07 PM



02/01/19 3M Co MModal IP-Technology Business Business Services 1000.012/02/19 Apple Inc Intel-Smartphone modem bus. Communications Equipment 1000.005/31/19 CCMP Capital Advisors LP BGIS Business Services 1000.002/04/19 Cleco Corporate Hldg LLC NRG South Central Gen LLC Electric, Gas, and Water Distribution 1000.005/30/19 Genstar Capital LLC Prometheus Grp Entrps LLC Prepackaged Software 1000.006/03/19 MBK Partners Management Godiva Chocolatier Inc-Asia Food and Kindred Products 1000.007/16/19 Nextera Energy Transmission Trans Bay Cable LLC Electric, Gas, and Water Distribution 1000.011/07/19 Simply Good Foods Co Quest Nutrition LLC Food and Kindred Products 1000.007/01/19 Victory Capital Holdings Inc USAA Asset Management Co Investment & Commodity Firms,Dealers,Exchanges 1000.010/04/19 CVMC REIT II Inc CVMC REIT Inc Investment & Commodity Firms,Dealers,Exchanges 999.602/24/19 Daikin Europe NV AHT Cooling Systems GmbH Machinery 999.107/31/19 ICG Strategic Eq Advisors LLC Standard Chartered- PE Busines Investment & Commodity Firms,Dealers,Exchanges 994.108/05/19 Marks & Spencer Group PLC Ocado Group PLC-Online Grocery Miscellaneous Retail Trade 993.807/16/19 Wieland-Werke AG Global Brass & Copper Holdings Metal and Metal Products 989.405/08/19 Wanda Cinema Line Co Ltd Wanda Media Co Ltd Motion Picture Production and Distribution 984.3N/A Agapier Investments Ltd Millennium & Copthorne Hotels Hotels and Casinos 984.001/31/19 Omv Exploration & Production Seb Upstream Sdn Bhd Investment & Commodity Firms,Dealers,Exchanges 979.708/30/19 Oaktree Capital Management LP SDIN Residencial SL Real Estate; Mortgage Bankers and Brokers 979.601/17/19 Investor Group VTTI BV Wholesale Trade-Nondurable Goods 975.004/24/19 Government of India Allahabad Bank Ltd Commercial Banks, Bank Holding Companies 971.307/03/19 Investor Group Unibail-Rodamco-Wfield Real Estate; Mortgage Bankers and Brokers 966.801/01/19 Veritex Holdings Inc Green Bancorp Inc Commercial Banks, Bank Holding Companies 965.512/10/19 China Mengniu Dairy Co Ltd Bellamys Australia Ltd Food and Kindred Products 958.009/17/19 Henan Yicheng New Energy Co Kaifeng Carbon Co Ltd China Electronic and Electrical Equipment 955.610/04/19 OneSavings Bank PLC Charter Court Finl Svcs Grp Real Estate; Mortgage Bankers and Brokers 952.101/10/19 Valero Energy Corp Valero Energy Partners LP Oil and Gas; Petroleum Refining 950.411/25/19 Alkermes PLC Rodin Therapeutics Inc Business Services 950.006/03/19 One Madison Corp Ranpak Corp Paper and Allied Products 950.001/01/19 Thoma Bravo LLC Veracode Inc Prepackaged Software 950.012/18/19 America Movil Sab De Cv Nextel Telecomunicacoes Ltda Telecommunications 948.503/18/19 Haymaker Acquisition Corp OneSpaWorld (Bahamas) Ltd Personal Services 948.001/04/19 CVC Capital Partners VII LP Convergeone Holdings Inc Prepackaged Software 946.712/13/19 Delo-Tsentr OOO TransContainer PJSC Transportation and Shipping (except air) 942.501/15/19 Solution King Invests Ltd NEVS Transportation Equipment 930.003/30/19 Investor Group Star Health & Allied Insurance Insurance 927.510/31/19 AMETEK Inc Gatan Inc Measuring, Medical, Photo Equipment; Clocks 925.001/01/19 Drax Smart Generation Holdco Scottish Power Generation Ltd Electric, Gas, and Water Distribution 923.107/17/19 Walnut Bidco Plc Oriflame Holding AG Soaps, Cosmetics, and Personal-Care Products 921.807/29/19 Investor Group Australis Seafoods SA Food and Kindred Products 921.607/26/19 Tokai Carbon Co Ltd COBEX Holdco GmbH Electronic and Electrical Equipment 921.212/20/19 Eaton Corp PLC Souriau SAS Electronic and Electrical Equipment 920.002/12/19 BPCE SA Natixis SA-Specialized Fin Bus Credit Institutions 918.112/19/19 Ascott Residence Trust Ascendas Hospitality Trust Investment & Commodity Firms,Dealers,Exchanges 917.501/31/19 Pt Semen Indonesia Industri Holcim Indonesia Tbk PT Stone, Clay, Glass, and Concrete Products 917.003/21/19 Gold Cheers Corp Ltd Kuwait Energy Plc Oil and Gas; Petroleum Refining 915.0


12/17/19 DRA Advisors LLC SSEP-Industrial Property Real Estate; Mortgage Bankers and Brokers 908.511/12/19 Swedish Orphan Biovitrum AB Dova Pharmaceuticals Inc Drugs 902.705/01/19 Church & Dwight Co Inc Ideavillage Prod-FLAWLESS Miscellaneous Manufacturing 900.003/31/19 Loccitane Intl Sa Elemis Ltd Soaps, Cosmetics, and Personal-Care Products 900.011/04/19 Symrise AG Intl Dehydrated Foods Inc Food and Kindred Products 900.012/24/19 OpenText Corp Carbonite Inc Business Services 896.003/27/19 Times Hldg II Ltd Hong Kong Intl Constr Invest Construction Firms 894.610/31/19 Nidec Corp OMRON Automotive Electronics Metal and Metal Products 892.610/25/19 Nanometrics Inc Rudolph Technologies Inc Measuring, Medical, Photo Equipment; Clocks 892.208/01/19 Fujifilm Diosynth Biotech Biogen (Denmark) New Mnfg ApS Drugs 890.007/02/19 NGL Energy Partners LP Mesquite Disposals Unltd LLC Sanitary Services 890.008/05/19 Aliansce Sonae Shopping Center Aliansce Shopping Centers Sa Real Estate; Mortgage Bankers and Brokers 884.209/30/19 AXA Real Estate Invest Mgrs SA NorthStar Realty Europe Corp Investment & Commodity Firms,Dealers,Exchanges 877.011/04/19 Industrial Buildings Corp Ltd Jerusalem Economy Ltd Real Estate; Mortgage Bankers and Brokers 876.101/22/19 Samarinda Investments SL Laureate-Universities Educational Services 871.202/25/19 KKR & Co Inc SemCAMS ULC-Asts Oil and Gas; Petroleum Refining 870.806/06/19 NWH Australia AssetCo Pty Ltd Healthscope Ltd-Hosp Ppty Health Services 869.508/01/19 11411802 Canada Inc Safecharge Intl Group Ltd Business Services 869.503/22/19 Ara Korea Global Private Real Seoul Sq Real Estate; Mortgage Bankers and Brokers 869.301/01/19 Nippon Steel & Sumitomo Metal Nisshin Steel Co Ltd Metal and Metal Products 867.105/31/19 Groupe Lactalis SA Aspen Pharmacare-Nutritionals Food and Kindred Products 863.412/13/19 Impala Platinum Holdings Ltd North American Palladium Ltd Mining 861.906/06/19 Medical Properties Trust Inc Healthscope Ltd-Hosp Ppty(11) Health Services 859.006/07/19 Tungsten Bidco Ltd Nightstar Therapeutics PLC Drugs 858.803/18/19 Konnectivity Pte Ltd M1 Ltd Telecommunications 856.311/29/19 Hydra RL Bidco Pty Ltd Aveo Group Ltd Real Estate; Mortgage Bankers and Brokers 855.607/17/19 Alberta Investment Management TC Energy-N Courier Pipeline Electric, Gas, and Water Distribution 855.601/01/19 Cadence Bancorp State Bank Financial Corp Commercial Banks, Bank Holding Companies 855.109/03/19 HGV Hamburger Gesellschaft Vattenfall Waerme Hamburg GmbH Electric, Gas, and Water Distribution 850.309/16/19 Deutsche Boerse AG Axioma Inc Prepackaged Software 850.001/29/19 MGM Resorts International Empire City Casino Amusement and Recreation Services 850.002/11/19 WeWork Property Advisors LLC Hudsons Bay Co-Lord & Taylor Retail Trade-General Merchandise and Apparel 850.001/17/19 Agrosuper SA Empresas AquaChile SA Food and Kindred Products 847.911/06/19 Shiseido Americas Corp Drunk Elephant Holdings LLC Soaps, Cosmetics, and Personal-Care Products 845.007/01/19 Liberty House Ltd Arcelormittal Piombino SpA Metal and Metal Products 841.206/04/19 Broadview Industries BV Formica Corp Rubber and Miscellaneous Plastic Products 840.005/01/19 Morgan Stanley Solium Capital Inc Prepackaged Software 839.409/27/19 Noverco Inc Valener Inc Electric, Gas, and Water Distribution 837.708/30/19 AMF Pensionsforsakring AB Bergvik Skog Ost AB Agriculture, Forestry, and Fishing 836.404/01/19 CenterState Bank Corp National Commerce Corp Commercial Banks, Bank Holding Companies 834.803/01/19 Cimarex Energy Co Resolute Energy Corp Oil and Gas; Petroleum Refining 832.010/09/19 SJW Group Connecticut Water Service Inc Electric, Gas, and Water Distribution 830.306/06/19 Resurgent Power Ventures Pte Prayagraj Power Generation Co Electric, Gas, and Water Distribution 826.311/01/19 Albemarle Corp Mineral Resources Ltd-Wodgina Mining 820.005/17/19 Eurobank Ergasias SA Grivalia Properties REIC Real Estate; Mortgage Bankers and Brokers 815.911/04/19 Investor Group Digital Realty-Turn-Key Flex Real Estate; Mortgage Bankers and Brokers 811.009/10/19 DISH Network Corp Echostar-BSS Business Radio and Television Broadcasting Stations 810.407/01/19 Pfizer Inc Therachon AG (Now 4j8824) Drugs 810.008/16/19 Newcrest Mining Ltd Red Chris Dvlp Co Ltd-Red Mining 806.509/17/19 Sonic Financial Corp Speedway Motorsports Inc Amusement and Recreation Services 806.0


035_MAJ0220 35 1/27/2020 4:52:08 PM



07/02/19 Larsen & Toubro Ltd Mindtree Ltd Business Services 729.608/01/19 Quaker Chemical Corp Houghton International Inc Chemicals and Allied Products 726.505/02/19 Capital Power Corp Goreway Power Stn Hldg Inc Oil and Gas; Petroleum Refining 726.211/07/19 MI Windows & Doors Inc Milgard Manufacturing Inc Rubber and Miscellaneous Plastic Products 725.011/07/19 Mi Windows & Doors LLC Masco Corp-Milgard Windows Metal and Metal Products 725.011/25/19 ContourGlobal Terra 3 SARL Cogen Altamira,Cogen Limpia Electric, Gas, and Water Distribution 724.208/14/19 DWS Group GmbH & Co KGaA Vita Grp Ltd-Vita Students Real Estate; Mortgage Bankers and Brokers 723.512/20/19 Callon Petroleum Co Carrizo Oil & Gas Inc Oil and Gas; Petroleum Refining 722.411/25/19 ContourGlobal PLC Alpek Sab de CV-CHP Plants(2) Electric, Gas, and Water Distribution 722.212/11/19 Paramount Group Inc Market Center,San Francisco,CA Real Estate; Mortgage Bankers and Brokers 722.012/13/19 Investor Group Allied Universal Sec Svcs LLC Business Services 721.012/19/19 Jiangsu Sopo Chemical Co Ltd Jiangsu Sopo (Grp) Co-Asts Chemicals and Allied Products 720.711/20/19 AVIC SUNDA Holding Co Ltd China Merchants Ppty Mgmt Co Real Estate; Mortgage Bankers and Brokers 720.503/14/19 KKCG AS SAZKA Group AS Amusement and Recreation Services 715.304/30/19 Reverence Capital Partners LLC Blackboard Inc-Blackboard Tran Prepackaged Software 715.004/22/19 J&J CIC Corp Investment & Commodity Firms,Dealers,Exchanges 711.312/24/19 LG Uplus Corp CJ Hello Co Ltd Radio and Television Broadcasting Stations 711.201/15/19 Fortis Healthcare Ltd Fortis Health Mgmt Hospia Health Services 710.701/17/19 Broad Street Principal Invest Unico Invest Grp LLC-27-Bldg Real Estate; Mortgage Bankers and Brokers 710.0

11/01/19 Masn Invest Mgmt Co Ltd E-Mart Inc-13 Stores Retail Trade-General Merchandise and Apparel 804.810/11/19 HGGC LLC Monotype Imaging Holdings Inc Business Services 800.411/21/19 Investcorp Bank BSC U IND & LGX Portfolio Real Estate; Mortgage Bankers and Brokers 800.001/01/19 Alps Electric Co Ltd Alpine Electronics Inc Electronic and Electrical Equipment 795.407/04/19 Euronext NV Oslo Bors VPS Holding ASA Investment & Commodity Firms,Dealers,Exchanges 790.312/12/19 Brilliant Lights Invest Pte Blue Light Hk Trading Co Ltd Electronic and Electrical Equipment 787.312/31/19 Oriental Bank,San Juan,PR Bk Of Nova Scotia-Puerto Rico Investment & Commodity Firms,Dealers,Exchanges 781.812/10/19 Adler Real Estate AG ADO Group Ltd Real Estate; Mortgage Bankers and Brokers 780.505/31/19 CGN Energy Intl Hldg Co Ltd Enel Green Power-Assets(3) Electric, Gas, and Water Distribution 780.309/20/19 Investor Group JACK Cincinnati Casino Amusement and Recreation Services 780.012/16/19 EF Solare Italia SpA Renovalia Energy SA Electric, Gas, and Water Distribution 778.308/01/19 MEIF 6 Fibre Ltd KCOM Group PLC Telecommunications 776.807/26/19 Investor Group Icade SA-Crystal Park Real Estate; Mortgage Bankers and Brokers 775.211/06/19 ANSYS Inc Livermore Software Tech Corp Prepackaged Software 775.010/02/19 Cantel Medical Corp Hu-Friedy Mfg Co LLC Measuring, Medical, Photo Equipment; Clocks 775.005/08/19 CIE Automotive SA Inteva Roof Sys Transportation Equipment 775.010/28/19 SK Capital Partners LP PolyOne Corp-Performance Prod Chemicals and Allied Products 775.001/16/19 Investor Group Property Exchange Australia Business Services 774.212/18/19 American Tower Corp ENTEL-Towers Telecommunications 772.005/30/19 Overseas Chinese Town Entrps Shenzhen Guangming Grp Co Ltd Food and Kindred Products 767.312/01/19 Valley National Bancorp,NJ Oritani Financial Corp Commercial Banks, Bank Holding Companies 765.105/27/19 Xiake Color Spinning Co Ltd GCL Intelligent Energy Co Ltd Electric, Gas, and Water Distribution 763.210/31/19 Tianjin Guoxing Capital Mgmt Tianjin Water Grp Co Ltd Electric, Gas, and Water Distribution 761.511/01/19 People’s United Financial Inc United Financial Bancorp Inc Commercial Banks, Bank Holding Companies 757.804/16/19 Investor Group Fortis Inc-Waneta Expansion Electric, Gas, and Water Distribution 756.604/01/19 Bank of Baroda Ltd Vijaya Bank Commercial Banks, Bank Holding Companies 753.412/02/19 Intact Financial Corp Guarantee Co North America Insurance 750.905/09/19 ACI Worldwide Inc Speedpay Inc Business Services 750.003/01/19 CACI International Inc LGS Innovations LLC Business Services 750.001/28/19 Fuji Oil Holdings Inc Blommer Chocolate Co Food and Kindred Products 750.007/17/19 Goldman Sachs Group Inc United Capital Finl Partners Investment & Commodity Firms,Dealers,Exchanges 750.001/31/19 Hackman Capital Partners LLC CBS-TV City Ppty & Sound Stage Real Estate; Mortgage Bankers and Brokers 750.007/02/19 Perrigo Co PLC Ranir LLC Soaps, Cosmetics, and Personal-Care Products 750.011/28/19 Saracen Mineral Holdings Ltd Barrick (Australia Pac) Pty Mining 750.007/01/19 Ameris Bancorp Fidelity Southern Corp Commercial Banks, Bank Holding Companies 743.011/05/19 Marvell Technology Group Ltd Avera Semiconductor LLC Electronic and Electrical Equipment 740.003/26/19 Pontegadea Inmobiliaria SL USAA RE Co-Troy Block Office Real Estate; Mortgage Bankers and Brokers 740.009/19/19 TEGNA Inc Nexstar Media-TV Stations(11) Radio and Television Broadcasting Stations 740.003/18/19 Williams Partners LP Utica East Ohio Midstream LLC Oil and Gas; Petroleum Refining 740.008/30/19 Booyoung Housing Co Ltd KEB Hana Bk-Md Corp Building Commercial Banks, Bank Holding Companies 739.605/22/19 2U Inc Trilogy Education Services Inc Business Services 738.407/26/19 Thai Insurance PCL Southeast Group Co Ltd Insurance 737.711/04/19 HF Foods Group Inc B&R Global Holdings Inc Wholesale Trade-Nondurable Goods 737.410/09/19 Beijing Yu Cheng Ppty Ltd Beijing Pangu Shi Invest-Asts Real Estate; Mortgage Bankers and Brokers 735.809/04/19 Broadstone Net Lease Inc U Ind & Ofc/Flex Ast(23) Real Estate; Mortgage Bankers and Brokers 735.710/31/19 Omega Healthcare Investors Inc FC Encore LP-Healthcare Health Services 735.012/17/19 Investor Group Snowtown 2 Wind Farm Hldg Pty Electric, Gas, and Water Distribution 734.912/03/19 Telco Solutions & Invests LLC Preludium BV Telecommunications 734.001/07/19 Haier Europe Appl Hldg Bv Candy SpA Electronic and Electrical Equipment 732.111/04/19 Best of Nature Bidco BV Koninklijke Wessanen NV Food and Kindred Products 730.7

Date Acquirer Target Target Industry Value ($mil)Date Acquirer Target Target Industry Value ($mil)

®

036_MAJ0220 36 1/27/2020 4:52:10 PM



07/02/19 Larsen & Toubro Ltd Mindtree Ltd Business Services 729.608/01/19 Quaker Chemical Corp Houghton International Inc Chemicals and Allied Products 726.505/02/19 Capital Power Corp Goreway Power Stn Hldg Inc Oil and Gas; Petroleum Refining 726.211/07/19 MI Windows & Doors Inc Milgard Manufacturing Inc Rubber and Miscellaneous Plastic Products 725.011/07/19 Mi Windows & Doors LLC Masco Corp-Milgard Windows Metal and Metal Products 725.011/25/19 ContourGlobal Terra 3 SARL Cogen Altamira,Cogen Limpia Electric, Gas, and Water Distribution 724.208/14/19 DWS Group GmbH & Co KGaA Vita Grp Ltd-Vita Students Real Estate; Mortgage Bankers and Brokers 723.512/20/19 Callon Petroleum Co Carrizo Oil & Gas Inc Oil and Gas; Petroleum Refining 722.411/25/19 ContourGlobal PLC Alpek Sab de CV-CHP Plants(2) Electric, Gas, and Water Distribution 722.212/11/19 Paramount Group Inc Market Center,San Francisco,CA Real Estate; Mortgage Bankers and Brokers 722.012/13/19 Investor Group Allied Universal Sec Svcs LLC Business Services 721.012/19/19 Jiangsu Sopo Chemical Co Ltd Jiangsu Sopo (Grp) Co-Asts Chemicals and Allied Products 720.711/20/19 AVIC SUNDA Holding Co Ltd China Merchants Ppty Mgmt Co Real Estate; Mortgage Bankers and Brokers 720.503/14/19 KKCG AS SAZKA Group AS Amusement and Recreation Services 715.304/30/19 Reverence Capital Partners LLC Blackboard Inc-Blackboard Tran Prepackaged Software 715.004/22/19 J&J CIC Corp Investment & Commodity Firms,Dealers,Exchanges 711.312/24/19 LG Uplus Corp CJ Hello Co Ltd Radio and Television Broadcasting Stations 711.201/15/19 Fortis Healthcare Ltd Fortis Health Mgmt Hospia Health Services 710.701/17/19 Broad Street Principal Invest Unico Invest Grp LLC-27-Bldg Real Estate; Mortgage Bankers and Brokers 710.0

11/01/19 Masn Invest Mgmt Co Ltd E-Mart Inc-13 Stores Retail Trade-General Merchandise and Apparel 804.810/11/19 HGGC LLC Monotype Imaging Holdings Inc Business Services 800.411/21/19 Investcorp Bank BSC U IND & LGX Portfolio Real Estate; Mortgage Bankers and Brokers 800.001/01/19 Alps Electric Co Ltd Alpine Electronics Inc Electronic and Electrical Equipment 795.407/04/19 Euronext NV Oslo Bors VPS Holding ASA Investment & Commodity Firms,Dealers,Exchanges 790.312/12/19 Brilliant Lights Invest Pte Blue Light Hk Trading Co Ltd Electronic and Electrical Equipment 787.312/31/19 Oriental Bank,San Juan,PR Bk Of Nova Scotia-Puerto Rico Investment & Commodity Firms,Dealers,Exchanges 781.812/10/19 Adler Real Estate AG ADO Group Ltd Real Estate; Mortgage Bankers and Brokers 780.505/31/19 CGN Energy Intl Hldg Co Ltd Enel Green Power-Assets(3) Electric, Gas, and Water Distribution 780.309/20/19 Investor Group JACK Cincinnati Casino Amusement and Recreation Services 780.012/16/19 EF Solare Italia SpA Renovalia Energy SA Electric, Gas, and Water Distribution 778.308/01/19 MEIF 6 Fibre Ltd KCOM Group PLC Telecommunications 776.807/26/19 Investor Group Icade SA-Crystal Park Real Estate; Mortgage Bankers and Brokers 775.211/06/19 ANSYS Inc Livermore Software Tech Corp Prepackaged Software 775.010/02/19 Cantel Medical Corp Hu-Friedy Mfg Co LLC Measuring, Medical, Photo Equipment; Clocks 775.005/08/19 CIE Automotive SA Inteva Roof Sys Transportation Equipment 775.010/28/19 SK Capital Partners LP PolyOne Corp-Performance Prod Chemicals and Allied Products 775.001/16/19 Investor Group Property Exchange Australia Business Services 774.212/18/19 American Tower Corp ENTEL-Towers Telecommunications 772.005/30/19 Overseas Chinese Town Entrps Shenzhen Guangming Grp Co Ltd Food and Kindred Products 767.312/01/19 Valley National Bancorp,NJ Oritani Financial Corp Commercial Banks, Bank Holding Companies 765.105/27/19 Xiake Color Spinning Co Ltd GCL Intelligent Energy Co Ltd Electric, Gas, and Water Distribution 763.210/31/19 Tianjin Guoxing Capital Mgmt Tianjin Water Grp Co Ltd Electric, Gas, and Water Distribution 761.511/01/19 People’s United Financial Inc United Financial Bancorp Inc Commercial Banks, Bank Holding Companies 757.804/16/19 Investor Group Fortis Inc-Waneta Expansion Electric, Gas, and Water Distribution 756.604/01/19 Bank of Baroda Ltd Vijaya Bank Commercial Banks, Bank Holding Companies 753.412/02/19 Intact Financial Corp Guarantee Co North America Insurance 750.905/09/19 ACI Worldwide Inc Speedpay Inc Business Services 750.003/01/19 CACI International Inc LGS Innovations LLC Business Services 750.001/28/19 Fuji Oil Holdings Inc Blommer Chocolate Co Food and Kindred Products 750.007/17/19 Goldman Sachs Group Inc United Capital Finl Partners Investment & Commodity Firms,Dealers,Exchanges 750.001/31/19 Hackman Capital Partners LLC CBS-TV City Ppty & Sound Stage Real Estate; Mortgage Bankers and Brokers 750.007/02/19 Perrigo Co PLC Ranir LLC Soaps, Cosmetics, and Personal-Care Products 750.011/28/19 Saracen Mineral Holdings Ltd Barrick (Australia Pac) Pty Mining 750.007/01/19 Ameris Bancorp Fidelity Southern Corp Commercial Banks, Bank Holding Companies 743.011/05/19 Marvell Technology Group Ltd Avera Semiconductor LLC Electronic and Electrical Equipment 740.003/26/19 Pontegadea Inmobiliaria SL USAA RE Co-Troy Block Office Real Estate; Mortgage Bankers and Brokers 740.009/19/19 TEGNA Inc Nexstar Media-TV Stations(11) Radio and Television Broadcasting Stations 740.003/18/19 Williams Partners LP Utica East Ohio Midstream LLC Oil and Gas; Petroleum Refining 740.008/30/19 Booyoung Housing Co Ltd KEB Hana Bk-Md Corp Building Commercial Banks, Bank Holding Companies 739.605/22/19 2U Inc Trilogy Education Services Inc Business Services 738.407/26/19 Thai Insurance PCL Southeast Group Co Ltd Insurance 737.711/04/19 HF Foods Group Inc B&R Global Holdings Inc Wholesale Trade-Nondurable Goods 737.410/09/19 Beijing Yu Cheng Ppty Ltd Beijing Pangu Shi Invest-Asts Real Estate; Mortgage Bankers and Brokers 735.809/04/19 Broadstone Net Lease Inc U Ind & Ofc/Flex Ast(23) Real Estate; Mortgage Bankers and Brokers 735.710/31/19 Omega Healthcare Investors Inc FC Encore LP-Healthcare Health Services 735.012/17/19 Investor Group Snowtown 2 Wind Farm Hldg Pty Electric, Gas, and Water Distribution 734.912/03/19 Telco Solutions & Invests LLC Preludium BV Telecommunications 734.001/07/19 Haier Europe Appl Hldg Bv Candy SpA Electronic and Electrical Equipment 732.111/04/19 Best of Nature Bidco BV Koninklijke Wessanen NV Food and Kindred Products 730.7

Date Acquirer Target Target Industry Value ($mil)Date Acquirer Target Target Industry Value ($mil)

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037_MAJ0220 37 1/27/2020 4:52:11 PM



10/08/19 Ningbo Jifeng Auto Parts Co Ningbo Jiye Investment Co Ltd Investment & Commodity Firms,Dealers,Exchanges 709.505/31/19 BillerudKorsnas AB Bergvik Skog Ost AB Agriculture, Forestry, and Fishing 706.012/12/19 Guangxi Fortune Tech Co Ltd Beijing InMyShow Tech Co Ltd Business Services 700.705/01/19 INEOS Enterprises Ltd Tronox Ltd-North American Bus Chemicals and Allied Products 700.008/26/19 Littlejohn & Co LLC Kaman Industrial Tech Corp Machinery 700.001/16/19 Prime Communications LP Gamestop-Spring Mobile Bus Wholesale Trade-Durable Goods 700.012/02/19 Syncsort Inc Pitney Bowes Inc-Software Prepackaged Software 700.004/01/19 The Toro Co The Charles Machine Works Inc Machinery 700.004/01/19 Independent Bank Corp Blue Hills Bancorp Inc Commercial Banks, Bank Holding Companies 696.002/21/19 AF AB Poyry Oyj Business Services 695.210/03/19 Norges Bk RE Mgmt Grpama Assurs-Office Bldg Real Estate; Mortgage Bankers and Brokers 693.103/31/19 TCL Industrial Hldg Huizhou Kuyu Network Tech Co Business Services 692.512/27/19 Petronas Petroleo Brasil Ltda Petrobras-Tartaruga & Module Oil and Gas; Petroleum Refining 691.903/08/19 Stanley Black & Decker Inc Intl Equip Solutions LLC- Wholesale Trade-Durable Goods 690.002/28/19 Equital Ltd JOEL Oil and Gas; Petroleum Refining 687.402/25/19 Warburg Pincus LLC Leumi Card Ltd Credit Institutions 685.101/22/19 ORIX Corp Daikyo Inc Real Estate; Mortgage Bankers and Brokers 684.403/08/19 Wolfcrest Ltd Pioneer Corp Electronic and Electrical Equipment 683.508/07/19 Chapters Holdco Inc Barnes & Noble Inc Miscellaneous Retail Trade 683.007/31/19 Rumo Malha Central SA ANTT-Railroad Concession Transportation and Shipping (except air) 681.008/01/19 Wirepath Home Systems LLC Control4 Corp Electronic and Electrical Equipment 680.204/01/19 Nisshin Seifun Group Inc Allied Pinnacle Pty Ltd Food and Kindred Products 678.806/03/19 Enbw Energie SA Valeco-SPE SA Electric, Gas, and Water Distribution 678.406/01/19 Samsung Electronics Co Ltd Samsung Electro-Mechanics-PLP Electronic and Electrical Equipment 677.512/02/19 Piolin BidCo SAU Parques Reunidos Servicios Amusement and Recreation Services 676.901/22/19 KAZ Minerals PLC GDK Baimskaia OOO Mining 676.403/01/19 Nordea AB Gjensidige Bank ASA Investment & Commodity Firms,Dealers,Exchanges 675.507/01/19 Edwards Vacuum Llc Brooks Automation-cryogenics Machinery 675.009/30/19 First State Investments Ltd Koninklijke Vopak-Terminals(3) Transportation and Shipping (except air) 673.207/02/19 SCG Packaging PCL (Was 78279t) Fajar Surya Wisesa Tbk PT Paper and Allied Products 672.012/23/19 Cellnex Telecom SA Iliad-Mobile Telecom Infrastru Telecommunications 671.807/01/19 Nidec Corp Whirlpool-Embraco Compressor Machinery 671.805/09/19 F5 Networks Inc NGINX Inc Prepackaged Software 670.007/03/19 Morningstar Inc DBRS Ltd Investment & Commodity Firms,Dealers,Exchanges 669.001/02/19 Athora Holding Ltd Generali Belgium SA Insurance 668.010/02/19 PureTech Health plc Ariya Therapeutics Inc Business Services 667.002/26/19 TLP Fin Hldg LLC TransMontaigne Partners LP Oil and Gas; Petroleum Refining 665.412/26/19 Astellas Pharma Inc Xyphos Biosciences Inc Business Services 665.012/13/19 Winterthur Schweizerische AXA Tianping P&C Ins Co Ltd Insurance 662.109/30/19 Autokiniton Global Grp Lp Tower International Inc Transportation Equipment 661.704/01/19 Kongsberg Gruppen ASA Rolls-Royce-Marine Bus Electronic and Electrical Equipment 661.308/14/19 Tiger Acquisitions Uk Ltd Tarsus Group PLC Printing, Publishing, and Allied Services 661.104/17/19 Smith & Nephew PLC Osiris Therapeutics Inc Drugs 660.602/06/19 Cisco Systems Inc Luxtera Inc Electronic and Electrical Equipment 660.012/03/19 Meridiam SAS Autopista del Sol CESA Construction Firms 659.106/13/19 Andromeda Investissement April International SA Insurance 658.1


Editor’s note: To measure activity in the middle market, Mergers & Acquisitions looks at transactions that fulfill several requirements: Deals must have a value of roughly $1 billion or less; they must be completed (not just announced) within the timeframe designated; the coverage is global. Excluded from our charts are: recapitalizations; self-tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed buyers or sellers. Our data provider is Refinitiv, which updates its databases continuously. We use the data available at press time. The data for this story was collected on Jan. 16, 2020.Source: Refinitiv

038_MAJ0220 38 1/27/2020 4:52:12 PM


People Moves

New hires and promotionsBy Demitri Diakantonis

Harsh Agarwal was hired by PE firm Clayton, Dubilier & Rice as a principal. Argawal was previously with EQT Partners.

Sasank Aleti was promoted to partner at PE firm LLR Partners. He focuses on healthcare investments.

Kathleen Auda has joined middle-market lender Great Rock Capital as chief risk officer. Auda was most recently with GE Capital.

Ken Biele has been hired as CEO at Orix Capital Partners-backed Hoffman Southwest. The latter is a provider of water flow, inspection, repair and cleaning services. Biele previously served as CEO of Advanced Micro Instruments.

Stuart Blythe has joined law firm Baker Botts to focus on M&A in technology, media and telecom. Blythe was previously general counsel at Verizon Communications Inc. (NYSE: VZ).

Leah Boyd has been promoted to partner at Toronto-based secondaries PE firm Whitehorse Liquidity Partners. Boyd joined the firm in 2019 as general counsel. Chris Considine has been named CEO at Lincolnshire Management-backed True Sports. Considine most recently founded manage-ment consulting firm Onward Advisory.

Craig Culbertson has joined law firm Blank Rome as a partner. He was previously with McGuireWoods, and focuses on M&A in the energy and financial services sectors.

Glenn Cummins was hired by PE firm Blue Wolf Capital Partners as chief operating officer. He was previously with Star America Infrastructure Partners.

John Czapla has been named chair at valuation firm Valuation Research Corp. He succeeds Neil Kelly who will continue to serve as vice chair. Czapla joined VRC in 1999.

Raj Dalal has been promoted to principal at middle-market investment firm Compass Diversified Holdings (NYSE: CODI). Dalal joined the firm in 2012 as an associate.

Demetrios Dounis has been promoted to partner and head of business development at middle-market investment firm Compass Diversified Holdings (NYSE: CODI).

Joe Ehrlich has been hired by insurance broker Beecher Carlson Insur-ance Services as national practice leader for private equity, family office and M&A. Ehrlich previously focused on a similar role at the Owens Group.

Ben Fogle has joined private equity firm MidWest Growth Partners as a partner and

investment committee mem-ber. He most recently was a managing director of capital markets for Farm Credit Services of America.

Eugene Goldenberg has joined healthcare-focused investment bank Edgemont Partners as a managing di-rector. He was most recently with Cain Brothers.

Steven Harris has been pro-moted from senior vice presi-dent to managing director at healthcare-focused invest-ment bank Bailey Southwell. He joined the firm in 2017.

Jeff Hawn was hired by private equity firm Clayton Dubilier & Rice as a partner. Hawn is the former CEO of Quest Software.

Anthony Kay has joined law firm Orrick as a part-ner where he is focusing on leveraged finance. He was previously with Latham & Watkins.

Kevin Kemmerer has been named executive chair-man at Clearlake-backed software company Symplr. Kemmerer was most recently with iPipeline.

Parthiv Rishi

Kathleen Auda

039_MAJ0220_001 39 1/28/2020 10:10:17 AM


Marc Kenny has joined law firm Squire Patton Boggs as a partner where he is focusing on private equity and M&A.

J.D. Kuhn has been hired as chief finan-cial officer at Enlightenment Capital-backed EverWatch. Kuhn was most recently with Salient CRGT.

Peter Leav has been named CEO at TPG and Thoma Bravo-backed cyberse-curity company McAfee. Leav was most recently the CEO of BMC software.

Michael Levenberg was promoted to partner at PE firm LLR Partners. He fo-cuses on security and technology-orient-ed companies in the industrials sector.

Ethan Liebermann has been promoted to managing director at PE firm TA Associates. Mergers & Acquisitions named Liebermann a Rising Star of Private Equity in 2018.

Mike Lindemann was promoted to co-head of North American M&A at in-vestment bank Baird. Lindemann joined Baird in 2003.

Kevin Masse has been promoted to man-aging director at PE firm TA Associates. He joined TA in 2013 and continues to serve as the firm’s chief portfolio officer.

Marye Moran has been promoted to vice president at middle-market investment bank Carl Marks Advisors. She joined the firm in 2015 and focuses on the construction, education, healthcare and retail sectors.

Trevor Myers has been named CEO at Turnspire Capital-backed MPI Holdings. Myers is the former CEO of Cloyes Gear.

Todd Noffke was hired by investment bank Baird as co-head of North Ameri-can M&A. Noffke was previously with

financial services firm Credit Suisse.

William Perlstein has joined FTI Consult-ing Inc. (NYSE: FCN) as a senior manag-ing director and vice chair, client services. He was most recently with BNY Mellon.

Lance Phillips was hired by law firm Eversheds Sutherland as a partner where he is focusing on M&A. Phillips was most recently with Skadden, Arps, Slate, Meagher & Flom LLP.

Ian Read, a former Pfizer (NYSE: PFE) CEO, was hired by the Carlyle Group (Nasdaq: CG) as an operating executive in the firm’s healthcare group. Read will help Carlyle find healthcare investments.

Christopher Reenock was hired by middle-market investment bank Carter Morse & Goodrich as a director. He was previously with Sonen-shine Partners.

Parthiv Rishi has joined law firm Sidley Austin where he is focusing on private equity and M&A. Rishi was most recently with Linklaters.

Mike Rotondo has been named CEO at NRD Capital-backed Altitude Trampo-line Park. Rotondo is the former CEO of Edible Arrangements.

Mark Satran has joined aerospace and defense-focused private equity firm AE Industrial Partners as a senior managing director. He was previously with Alterna Capital Partners.

Jim Schaper has been named CEO at

Clearlake-backed-software company Ivanti. Schaper currently serves as Ivanti’s chairperson.

Johanna Schmidtke was promoted from principal to managing director at

private equity firm Ara Partners. Schmidtke joined the firm in 2018.

Kevin Smithen has been promoted to managing director, global head of strategy and capital formation, at investment firm Colony Capital Inc. (NYSE: CLNY).

Joe Todd was hired by in-vestment bank Evercore as a senior managing director. Todd previously focused on M&A at Gold-man Sachs (NYSE: GS).

Michele Trogni has joined holding company

Eldridge Industries as an operating part-ner. Prior to Eldridge, Trogni co-founded Authentum Partners.

Ted Tutun has joined investment bank Stifel Financial Corp.’s (NYSE: SF) finan-cial sponsors group. Tutun was previ-ously with Cowen and Jefferies.

Henry Ventura was hired by investment bank Prairie Capital Advisors as a director. He was most recently with Ernst & Young.

Eric Warren was hired by consulting firm Mercer, a subsidiary of Marsh & McLen-nan (NYSE: MMC) as a partner, M&A transaction services, U.S. and Canada.

Andrew Witt has been promoted to chief operating officer of global credit at investment firm Colony Capital Inc. (NYSE: CLNY). M&A

People Moves

Mike Rotondo

Johanna Schmidtke

040_MAJ0220_001 40 1/28/2020 10:10:23 AM

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