DC Advisory brings you an update on UK mid-market activity for Q3 2018.
Key highlights from the period include:
- Q3 2018 has seen a significant increase in the appetite for transactions, with the total number of mid-market buy-out deals in Q3 2018 up 53% compared to Q3 2017. Transaction numbers this quarter have surpassed the impressive levels of Q2 2018, now being the highest observed per quarter since Q2 2010
- For now, it seems like the uncertainty surrounding the UK’s post-Brexit position has not led to a slowdown in the number and aggregate value of deals announced. However, with only 6 months to go until the 29 March 2019 deadline, buyers are increasingly asking for some protection against a no deal Brexit
- An increasingly obvious trend is that mid-market private equity firms, such as Bridgepoint, Francisco Partners, Silver Lake and Vista, divest stakes to outside parties in order to support expansion into new markets and products
- The trend above, combined with high levels of dry powder in private equity, supports the findings that Primary and Secondary buyouts make up nearly 90% of all deals this quarter
- Trade exits experienced a sharp decline in Q3 2018, falling to almost a quarter of their Q2 2018 level, although this was admittedly an unusually high basis for comparison
- It is clear that the TMT and Services sectors have had an extraordinary year, with 2018YTD deal numbers surpassing FY2017 levels in both sectors already after Q3 2018
- In contrast, Leisure, Retail & Consumer, Industrial Products & Services, and Healthcare are all roughly in line with previous years
Q3 total UK mid-market buyout activity
2015 – 2018 total UK mid-market buyout deals by sector
2015 – 2018 total UK mid-market deals by source and exit
Who’s been fundraising?
July
Apiary Capital Partners held a final close of Apiary Capital Fund, at £200m
ECI Partners held a final close of ECI 11, at £700m
Graphite Capital Management held a final close of Graphite Capital Partners IX, at £470m
NorthEdge Capital held a final close of NorthEdge Capital SME Fund I, at £120m
Weinberg Capital Partners held a final close of Weinberg Capital Partners III, at €295m
August
Steadfast Capital held a first close of Steadfast Capital IV, at €248m
Silverfleet Capital held a first close of Silverfleet Capital Small Business Fund I, at €110m
Inverleith held a final close of Inverleith I, at £60m
Corpfin Capital held a final close of Corpfin Capital V, at €275m
Mid Europe Partners held a first close of Mid Europe Fund Investments, at $29m
CapVis Equity Partners held a final close of CapVis Equity V, at €1,200m
Five Arrows Principal Investments held a final close of Five Arrows Capital Partners, at $655m
See our latest M&A and debt advisory transactions >
Recent transactions by sector
Healthcare
4Ways
ECI acquired 4Ways, the teleradiology reporting company, from Synova, for an undisclosed consideration
AJM Mobility
WestBridge Capital acquired AJM Mobility, the provider of mobility and equipment solutions, for an undisclosed consideration
Aquilant
H2 Equity Partners acquired Aquilant, the distributor of specialist medical, pharmaceutical and scientific products and services, from UDG Healthcare. UDG Healthcare was advised by DC Advisory, read more >
CRF Health
Genstar Capital acquired CRF Health, the provider of eCOA and eConsent solutions for the life sciences industry, from Vitruvian, for an undisclosed consideration
Origin Animal
August Equity’s portfolio company VetPartners acquired Origin Animal, the provider of veterinary services, for a consideration of £55m
Prime Health Diagnostics
Apposite Capital acquired Prime Health Diagnostics, the provider of healthcare, health and fitness services, for an undisclosed consideration
VetPartners
BC Partners acquired VetPartners, the provider of veterinary services, from August Equity and Ares Management, for a consideration of £700m
Industrial Products and Services
Afon Tinplate
Chamonix Private Equity’s portfolio company Tinmasters acquired Afon Tinplate, the tinplate processing company, for an undisclosed consideration
Amazon Filters
BGF acquired a significant stake in Amazon Filters, the filtration equipment manufacturer, for an undisclosed consideration
Apogee
Equistone sold its portfolio company Apogee, the office printing equipment supplier and servicing company, to HP, for £380m
BOFA International
LDC sold its portfolio company BOFA International, the manufacturer of fume extraction and filtration systems, to Donaldson Company, for an estimated consideration of £79m
LDC sold its portfolio company ByBox, the company engaged in logistics distribution services, to Francisco Partners, for an undisclosed consideration
Collingwood Lighting
Baird Capital Partners acquired a majority stake in Collingwood Lighting, the manufacturer of LED lighting, for an undisclosed consideration. Baird Capital Partners was advised by DC Advisory, read more >
Caledonia Investments acquired Cooke Optics, the manufacturer of premium-end cinematography lenses, from Growth Capital Partners, for an enterprise value of £97m
Elite Electronic Systems
Lonsdale Capital Partners acquired a majority stake in Elite Electronic Systems, the provider of electronic manufacturing services, for an undisclosed consideration
Havelock Europa
RCapital Partners acquired Havelock Europa, the designer and manufacturer of educational, healthcare and laboratory interiors and commercial interiors, for an undisclosed consideration
Knorr-Bremse Rail Services UK
Mutares acquired Knorr-Bremse Rail Services UK, the manufacturer of braking systems and the supplier of addition sub-systems for rail and commercial vehicles, for an undisclosed consideration
Menzies Distribution
Endless acquired Menzies Distribution, the provider of marketing, logistics and delivery solutions, from John Menzies, for £75m
Monks & Crane Industrial Group
Gil Investments acquired Monks & Crane Industrial Group, the manufacturer and supplier of maintenance products, hand and power tools, safety equipment and protective clothing, from Adolf Wurth, for an undisclosed consideration
Nylacast
Equistone acquired Nylacast, the designer and manufacturer of precision-engineered polymer solutions, from Caird Capital, for an undisclosed consideration. Equistone was advised by DC Advisory, read more >
Orbis Protect
NorthEdge Capital acquired Orbis Protect, the provider of cleaning solutions, from Sullivan Street Partners, for a consideration of £14m
Pyroguard
ESO Capital Partners acquired Pyroguard, the manufacturer of fire-rated glazing, from Dunedin and NVM Private Equity, for an undisclosed consideration
Rembrand Timber
Cairngorm Capital Partners acquired Rembrand Timber, the importer, manufacturer and distributor of timber, for an undisclosed consideration
Thornhill Heat Exchangers
RCapital Partners acquired Thornhill Heat Exchangers, the manufacturer and supplier of plate heat exchanger spares, in a management buy-out insolvency transaction, for an undisclosed consideration
UAP
Maven Capital acquired UAP, the supplier and distributor of door and window hardware, for a consideration of £20m
UK Business of CPI Card Group
Sea Equity acquired the UK Business of CPI Card Group, the provider of printing, personalisation and fulfilment services to the commercial, loyalty and gift card markets, for an undisclosed consideration
WPI
Three Hills Capital Partners and CorpAcq acquired WPI, the provider of civil engineering, surfacing, construction and remediation services, for an undisclosed consideration
Leisure, Retail & Consumer
Piper Private Equity sold its portfolio company Be At One, the owner and operator of cocktails bars, to Stonegate Pub Company, for a consideration of £50m
Bonhams 1793
Epiris acquired Bonhams 1793, the UK-based auction company, for an undisclosed consideration
Casual Dining Group
Pemberton Capital, along with KKR and Apollo, acquired a significant stake in Casual Dining Group, the owner and operator of a chain of casual dining restaurants, for a consideration of £150m
Cut4Cloth
True Capital acquired a majority stake in Cut4Cloth, the designer, manufacturer and seller of sustainably-sourced organic cotton apparel and accessories, for an undisclosed consideration
Great Rail Journeys
Duke Street acquired Great Rail Journeys, the provider of escorted rail holidays, from ECI Partners, for a consideration of £100m
Iconic London
BlueGem Capital acquired a majority stake in Iconic London, the company engaged in manufacturing and distribution beauty products, for an undisclosed consideration
Ideal Shopping Direct
Aurelius acquired Ideal Shopping Direct, the multi-channel home shopping retailer, from Blackstone, for an undisclosed consideration. Aurelius was advised by DC Advisory, read more >
Martin Audio
LDC acquired Martin Audio, the company manufacturing audio equipment and loudspeakers, from Loud Audio, for an undisclosed consideration
Meadow Foods
Exponent Private Equity acquired a 35% stake in Meadow Foods, the producer and supplier of milk and dairy ingredients, from Paine Schwartz Partners, for an undisclosed consideration
Neilson Active Holidays
LDC acquired Neilson Active Holidays, the holidays and tour operator, from Risk Capital Partners, for an undisclosed consideration. DC Advisory provided M&A and financing advice to LDC, read more >
On The Go Tours
Alcuin acquired On The Go Tours, the global escorted tour operator, for an undisclosed consideration
Primrose
Rockpool Investments acquired Primrose, the online-only garden products retailer, from Business Growth Fund in a management buy-out transaction, for an undisclosed consideration
Produce Investments
Promethean Investments acquired Produce Investments, the company engaged in growing, sourcing, packing, and marketing fresh potatoes, for an estimated consideration of £83m
The Appointment Group
Apiary acquired a majority stake in The Appointment Group, a company engaged in providing travel and event management services, for a consideration of £18m
Services
Bain Capital acquired Benefex, the owner of the employee experience platform OneHub, from BGF, for an undisclosed consideration
Canotec
Lyceum Capital Partners acquired Canotec, the company specialising in office printing and document imaging systems, for an undisclosed consideration
Clear Insurance Management (Clear Group)
ECI acquired a stake in Clear Insurance Management (Clear Group), the insurance broker, for an undisclosed consideration
Cognita Schools
KKR and EMK sold its portfolio company Cognita Schools, the owner and operator of private schools, to Jacobs Holding, for an estimated consideration of $2bn
EMR Search & Selection
IPE Capital acquired EMR Search & Selection, the recruitment company, from FiveTen Group, for an undisclosed consideration
Estio Training
Palatine acquired Estio Training, a provider of IT, digital and technology apprenticeships, for an undisclosed consideration
Love Energy
LDC acquired Love Energy, the energy price comparison specialist, from NVM Private Equity, for an estimated consideration of £25m
M Three Corporate Consulting
ECI Partners acquired a 60% stake in M Three Corporate Consulting, the company engaged in providing technology consultancy to global banks and enterprises, for an undisclosed consideration
MeteoGroup
TBG acquired MeteoGroup, the provider of weather forecast services, from General Atlantic, for an undisclosed consideration
Mode Print Solutions
Connection Capital acquired Mode Print Solutions, the provider of managed print services to SMEs, for an estimated consideration of £21m
Nexus Vehicle Management
Phoenix Equity Partners acquired Nexus Vehicle Management, the B2B broker of rental vehicles, from Bowmark Capital, for a consideration of £142m
Parking Eye
Macquarie and MML acquired ParkingEye, the provider of automatic number plate recognition enabled car park management, from Capita, for a consideration of £235m
Protocol
Compass Partners International acquired Protocol and a 20% stake each in Rodenstock and Infinitas Learning Netherlands from Bridgepoint, for an undisclosed consideration
Stagecoach Theatre Arts
Encore Capital sold its portfolio company Stagecoach Theatre Arts, the company providing children’s education through the performing arts, to Trafalgar Entertainment Group, for an undisclosed consideration
Travel & General Insurance Services
Mobeus Equity Partners acquired Travel & General Insurance Services, the provider of financial protection insurance for the travel industry, for an undisclosed consideration
Westleton Drake
HgCapital’s portfolio company CogitalGroup acquired Westleton Drake, the tax advisory firm specialised in assisting Americans living abroad, for an undisclosed consideration
TMT
Arkessa
ECI Partners acquired Arkessa, the Internet-of-Things managed services provider, for an undisclosed consideration
BidX1 Auction
Pollen Street Capital acquired a stake in BidX1 Auction, the digital property company which provides an auction platform, for an undisclosed consideration
Equistone’s portfolio company Inspired Thinking Group acquired Connect Advertising & Marketing, the tech-driven marketing agency, for an undisclosed consideration
Dennis Publishing
Exponent Private Equity acquired Dennis Publishing, the publisher of ‘The Week’ and other current affairs, auto, and tech magazine titles, for an undisclosed consideration. DC Advisory advised Dennis Publishing.
FC Business Intelligence
LDC acquired FC Business Intelligence, the provider of business intelligence, sponsor conferences and events, for an undisclosed consideration
Genius Sports
Apax Partners acquired Genius Sports, the sports data technology provider, from Three Hills Capital Partners, for an undisclosed consideration
Globe Business Media
Levine Leichtman Capital Partners’ portfolio company Law Business Research acquired Globe Business Media, the provider of business intelligence for the legal and intellectual property markets, for an undisclosed consideration
Healthcircle Advertising
LDC’s portfolio company Fishawack acquired Healthcircle Advertising, the strategic brand communications agency, for an undisclosed consideration
Lissted
Primary Capital Partners’ portfolio company Maru Group acquired Lissted, the social listening software, for an undisclosed consideration
Majenta PLM
Business Growth Fund’s portfolio company Cutting Edge Solutions acquired Majenta PLM, the company engaged in providing Siemens’ PLM software solutions and services, for an undisclosed consideration
Outdoor Plus
Inflexion sold its portfolio company Outdoor Plus, the provider of high-profile, digital advertising sites, to Global Radio UK, for an undisclosed consideration
PCTI Solutions
Vista Equity Partners’ portfolio company Advanced Computer Software Group acquired PCTI Solutions, the electronic document management, workflow and information sharing platform provider, for an undisclosed consideration
Primesight
GMT Communcations sold its portfolio company Primesight, the outdoor advertising company, to Global Radio UK, for an undisclosed consideration
Roadworks Information
Bridgepoint Growth Fund acquired a stake in Roadworks Information, the publisher of roadworks database for England and Wales, for an undisclosed consideration
Solar Communications
Beech Tree Private Equity’s portfolio company Wavenet acquired Solar Communications, the business communications solution provider, for an undisclosed consideration
