Monthly Archives: May 2019

GBfoods enters exclusive final negotiations with CVC Fund V to acquire Continental Foods

Continental Foods owns portfolio of iconic local consumer brands such as Liebig, Royco, D&L, Erasco and Blå Band.

GBfoods, a food company headquartered in Spain, announced today that it has entered into exclusive final negotiations with CVC Fund V following a firm offer made by GBfoods for the acquisition of the European group Continental Foods.

Continental Foods was established in 1933 as a division of the Campbell Soup Company and was acquired by CVC Fund V in 2013. With a turnover of around 400 million euros and a team of over 1,000 employees, it operates in five key European markets: Belgium, where also its HQ is located, France, Germany, Sweden and Finland. Continental Foods owns a portfolio of iconic local consumer brands such as Liebig, Royco, D&L, Erasco and Blå Band, among others, with a long heritage and brand awareness among consumers.

Commenting on the transaction, Ignasi Ricou, CEO of GBfoods, said: “GBfoods is delighted to have entered into exclusive final negotiations for the acquisition of Continental Foods. Continental Foods is a great group of very similar culture to GBfoods, complementary markets, local culinary brands, a long heritage and a great team.”

Steven Buyse, Partner at CVC Capital Partners, added: “We are proud of the transformation that the management team at Continental Foods has realised under CVC Fund V’s ownership. Continental Foods is a fantastic company and would be a great addition to GBfoods, who share the same passion for local brands.”

The GBFoods was advised by AZ Capital, PWC, and Clifford Chance. CVC Fund V was advised by UBS, ING and Cleary Gottlieb Steen & Hamilton LLP.

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Cinven raises €10 billion for the Seventh Cinven Fund

Cinven

International private equity firm Cinven announces the close of the Seventh Cinven Fund (‘the Fund’) at its hard cap of €10 billion (c. US$11 billion)

Key highlights:

  • The Fund reached its hard cap in less than four months and was oversubscribed; follows successful fundraise for the Sixth Cinven Fund, which reached its hard cap of €7 billion in four months in 2016;
  • Significant support from longstanding investors, with a very high re-up rate;
  • Diversified investor base comprised of more than 180 investors representing more than 30 countries globally;
  • Reflects Cinven’s strong fund performance, with c. €11 billion of realised value in the last three years; and
  • Consistent investment strategy focused on European buyouts and selective North American investments.

Throughout its c. 30 year track record, Cinven has focused on building world class companies using its European focus and sector expertise. Cinven targets companies in which it can drive strategic growth and operational improvement, both in Europe and globally. Its functional specialists – the global Portfolio and Capital Markets teams – work closely with Cinven’s Sector and Regional teams to implement Cinven’s value creation strategies, resulting in revenue and profit growth both organically and through buy and build.

Alexandra Hess, a Partner of Cinven and Head of Investor Relations, said:

“It is a significant milestone for Cinven to have successfully concluded another fundraise in record time. It is testament to our longstanding investment performance through economic cycles, the strength of the Cinven team and the longstanding relationship Cinven has with its investors.

“Importantly, the continued partnership with existing investors, coupled with the support of select new investors, demonstrates their confidence in the Fund’s investment strategy and expertise in our defined sectors. The Cinven team views its relationship with the investors in our Fund as a partnership, and we are grateful for their support in enabling us to complete the fundraise in less than four months.”

Stuart McAlpine, Managing Partner of Cinven, added:

“We have raised a Fund that is right-sized for the market opportunity, and, through Cinven’s Sector and Regional teams, we continue to identify attractive investment opportunities that we can target to define angles and strategies to step-change growth.

“Cinven has a first class track record in internationalising businesses and executing successful buy and build strategies; as well as in creating market leaders in domestic markets and working in close partnership with management teams. We continue to invest in our team of more than 170 people; this ensures that we continue to have the platform to deliver strong and sustainable growth to investors in our Fund and their beneficiaries, both today and in the future.” 

Cinven has one of the longest standing successful European buyout track records. The Fifth Cinven Fund, a 2012 vintage fund, has generated a net Distributed:Paid-In (‘DPI’) multiple of c. 1.4x and is one of the strongest funds of its peer group.  Of the 17 investments in the Fifth Cinven Fund, nine have been fully exited at an aggregate money multiple of c. 3.2x.  Its latest fund, the Sixth Cinven Fund, has committed to 15 companies headquartered in 11 different countries to date. The unrealised portfolio of the Sixth Cinven Fund generated double-digit EBITDA growth last year. In addition, over the two most recent Funds, Cinven has completed more than 200 add-on acquisitions through its portfolio companies, reflecting Cinven’s strong buy and build capabilities.

Since January 2017, Cinven has completed seven successful exits, including the sales of CeramTec, a global manufacturer of high performance ceramics (3.2x); Medpace, a global contract research organisation (3.5x); and Ufinet Group, a leading independent fibre network operator (6.0x).

To date, Cinven has raised Funds totalling c. €37 billion and has invested in c. 135 companies across Europe and in North America. It became independent from the British Coal pension scheme in 1995 and raised its first independent Fund in 1996.

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Apax Funds, CPPIB and PSP Investments agree to sell Acelity and its KCI Subsidiaries to 3M for $6.725 Billion

Apax

KCI is a leading global medical technology company focused on advanced wound care and specialty surgical applications. 

SAN ANTONIO and NEW YORK, May 2, 2019: A consortium comprised of funds advised by Apax Partners (the “Apax Funds”), together with Canada Pension Plan Investment Board (“CPPIB”) and the Public Sector Pension Investment Board (“PSP Investments”), today announced that it has entered into a definitive agreement to sell Acelity, Inc. and its KCI subsidiaries worldwide to 3M for approximately $6.725 billion. KCI markets a broad range of negative pressure wound therapy, specialty surgical and advanced wound dressing products in approximately 90 countries.

Since 2011, Apax Partners, CPPIB and PSP Investments worked closely with Acelity/KCI’s senior leadership team to transform the business into a leading global company focused on advanced wound care and specialty surgical solutions. The company’s strategic M&A program included targeted acquisitions, such as Systagenix, in 2013, and Crawford Healthcare, in 2018, and disposals of non-core businesses, such as the LifeCell business unit, which was sold for $2.9 billion in 2017, and the Therapeutic Support Systems (TSS) unit, which was sold in 2012. The company also has undertaken a range of organic growth initiatives including investments in R&D, clinical studies, and the expansion of its sales force.

The product offering includes the KCI-branded negative pressure wound therapy, advanced wound dressings, and negative pressure surgical incision management systems. The company’s industry-leading brands include V.A.C.® Therapy, PREVENA™ Therapy and PROMOGRAN PRISMA™ Matrix, as well as the iOn Digital Health platforms. Upon completion of the transaction, KCI will become an integral part of 3M’s Medical Solutions business, which applies 3M’s science to deliver safe and effective solutions that improve clinical outcomes and healthcare economics.

“Today, KCI embarks upon a new era in its long history as a pioneer in healthcare,” said R. Andrew Eckert, CEO of Acelity. “The combination of KCI with 3M will accelerate the reach of a business that is a leader in innovation, customer experience and clinical and economic evidence. Backed by the resources and expertise of 3M,KCIwill be able to offer clinicians and patients even more compelling solutions designed to speed healing and improve outcomes. I would like to thank Apax, CPPIB and PSP Investments for their close partnership and strategic direction over the years shaping KCI into a premier global advanced wound care company.”

Steven Dyson, Chairman of the Board of Acelity and Partner at Apax Partners, said, “We are proud of our close work with management to successfully transform KCI through a range of growth initiatives, including an M&A program, that enhanced the Company’s strategic direction. We believe the business will have a great future with 3M. Lastly, we are grateful for the opportunity to have joined in this highly successful investment with CPPIB and PSP, two long-standing investors in the Apax Funds.”

“CPPIB is pleased to have supported KCI’s delivery of medical devices and products that benefit millions of patients around the world. During our investment, the company helped restore lives with the launch of innovative solutions and expansion into new geographies,” said Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB.

“We are proud to have supported KCI and its management team during its exciting transformation journey, in partnership with Apax and CPPIB,” said Simon Marc, Managing Director and Head of Private Equity, PSP Investments. “KCI has successfully invested into novel organic growth initiatives and we are confident about its continued growth prospects with 3M.”

The transaction will be effected through the sale of Acelity, Inc., a direct wholly-owned subsidiary of Acelity L.P. Inc., and is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.

JP Morgan and Goldman Sachs are acting as financial advisors to the consortium. Simpson Thacher & Bartlett LLP and Jackson Walker LLP are acting as legal advisors to the consortium.

About KCI, an Acelity Company
KCI, an Acelity Company, is a well trusted brand in advanced wound care. We are a leader in negative pressure wound therapy, providing solutions for both wound healing and surgical management. Our product offerings are available in more than 90 countries and deliver value through solutions that speed healing. KCI is a leader in quality, safety and customer experience and is committed to advancing the science of healing.  Headquartered in San Antonio, Texas, KCI employs approximately 4,500 people worldwide.

About Apax Partners
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over c.$50 billion. The Apax Funds invest in companies across four global sectors of Healthcare, Tech & Telco, Services, and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

In Healthcare, the Apax Funds have invested c.$8 billion of equity across medical devices, pharmaceuticals, healthcare services and healthcare IT. Within the medical devices sub-sector, the Apax Healthcare team has partnered with a variety of businesses such as Mӧlnlycke, Vyaire Medical, Candela and Healthium to create strategic leaders in their space.

About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2018, the CPP Fund totalled C$368.5 billion.For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn, Facebook or Twitter.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with C$158.9 billion of net assets as of September 30, 2018. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.

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Acelity Media Contacts:

Cheston Turbyfill,
VP, Corporate Communications Acelity
cheston.turbyfill@acelity.com
+1 312-952-0837

Acelity Investor Contacts:

David Clair, CFA,
Westwicke Partners
investors@acelity.com
+1-646-277-1266

Apax Partners: 

Global Media: Andrew Kenny, Apax | +44 20 7 872 6371 | andrew.kenny@apax.com
USA Media: Todd Fogarty, Kekst | +1 212-521 4854 | todd.fogarty@kekst.com
UK Media: Matthew Goodman, Greenbrook | +44 20 7952 2000 | apax@greenbrookpr.com

CPPIB:

Darryl Konynenbelt
Phone: +1 416-972-8389
Email: dkonynenbelt@cppib.com

PSP Investments:

Verena Garofalo
Phone: +1 (514) 218-3795
Email: media@investpsp.com

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Acelity

Leading provider of therapies and products for the advanced wound care, tissue regeneration and therapeutic support system markets

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Platinum Equity Completes Acquisition of Livingston International

Platinum

(Los Angeles, May 2, 2019) – Platinum Equity today announced it has completed the acquisition of North American customs brokerage and trade services firm Livingston International.

Headquartered in Toronto, Ontario, with U.S. headquarters in Chicago, Il, Livingston International is the largest pure-play customs brokerage in North America and boasts the widest presence along America’s northern border. It is also the third-largest customs entry filer in the United States. The company serves as a trusted adviser to more than 30,000 businesses globally, facilitating the completion and transmission of customs documentation and ensuring goods are cleared through international borders seamlessly and expediently.

Livingston is also a leading provider of global trade management services, including trade consulting and customs compliance, helping businesses optimize their use of free trade agreements, mitigate compliance risk and recover duties where possible.

Platinum Equity is a global private equity firm with approximately $13 billion of assets under management and a highly specialized focus on business operations.

“Livingston has served as a critical partner to businesses around the world as they react and adapt to changes in the global trade environment,” said Dan McHugh, Chief Executive Officer, Livingston International. “We are excited about the possibilities that lie ahead and look forward to benefiting from Platinum’s dedicated resources and counsel as we continue to focus on providing best-in-class brokerage, freight forwarding and trade management solutions.”

In addition to its role as a trusted customs broker and adviser, Livingston offers international freight forwarding solutions with special emphasis on North American transportation and global air and sea freight capabilities. Its freight solutions also include value-added services, such as warehousing, barge services and project cargo.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years Platinum Equity has completed more than 250 acquisitions.

About Livingston International 
Livingston International focuses on customs brokerage and trade compliance, offering international trade consulting, global trade management and freight forwarding. It provides clarity in a world of trade complexity, so businesses can grow further, faster and smarter. Livingston employs approximately 3,200 associates at more than 100 key border points, sea ports, airports and other strategic locations across North America, Europe and Asia. Visit us at www.livingstonintl.com, and on Twitter, LinkedIn and Facebook.

Media Contacts

Dan Whelan
Platinum Equity
310-282-9202
dwhelan@platinumequity.com

Dan Ovsey
Director, Public Relations & Marketing Communications
Livingston International
1-800-387-7582 / ext. 13088
dovsey@livingstonintl.com

Investor Relations
and Media Contacts:

Mark Barnhill
Partner
+1 310.228.9514 E-mail Mark

Dan Whelan
Principal
+1 310.282.9202 E-mail Dan

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Oakley Capital agrees to invest in spanish digital insurance brokers

oakleycapital

Oakley Capital (“Oakley”), a leading Western Europe-focused private equity firm, has agreed to form a joint venture with Admiral Group plc (“Admiral”) to acquire two of Spain’s most well-regarded digital brokers for insurance and other financial products, Rastreator Comparador Correduría de Seguros S.L. (“Rastreator”) Asesor Seguros Online S.L. and Asesor Consumer Services S.L. (together “Acierto.com”). Completion of the transaction is subject to merger control clearance by the EU Commission as well as the approval of the Directorate-General for Insurance and Pension Funds in Spain.

Rastreator, a digital insurance broker, was founded in 2009 and allows users to buy insurance, financial products, travel, offers, telephone services, energy, finance and cars by comparing quotations. The business is currently 75% owned by Admiral, a British insurance company specialising in the direct sale of car insurance, and 25% by Mapfre, a Spanish multinational company dedicated to the insurance and reinsurance sectors.  In 2018, Rastreator generated revenues of €29 million.

Founded in 2007, Acierto.com is a digital insurance broker which enables consumers to compare prices from over 30 car, motorcycle, health, life and home insurance companies. Currently, Acierto.com is majority-owned by its two founders, Carlos and Mario Brüggemann, who will retain a stake in the combined group following the transaction.  In 2018, Acierto generated revenues of €13 million.

This transaction continues Oakley’s successful track record of investing in digital platforms across Europe. Having previously invested in Verivox, Germany’s leading energy price comparison website, and Facile, the price comparison market leader in Italy, Oakley has considerable expertise in the price comparison market.  The Spanish market is at an early stage in its development, and therefore presents a similar growth opportunity to that experienced by Verivox and Facile as the market develops.

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