Smart Business Magazine, February 2014
20 Smart Business Cleveland February 2014 Blockbuster acquisitions help boost aggregate deal values Great expectations were met with frustration in 2013 as the anticipated rebound in the M A market never quite materialized despite pent up demand and abundant capital stores A recap of the year showed transaction activity in the broader market dipped nearly 16 percent year over year however with blockbuster acquisitions of headline names like Heinz Dell Sprint Vodafone Omnicom and Life Technologies megadeals helped contribute to a 5 percent increase in aggregate deal value Overall private equity deal flow declined by 14 percent to 2124 transactions in 2013 Despite a soft deal market capital invested rose to 426 billion its highest point since 2007 due in part to several multi billion buyout transactions including headline take privates of Dell and Heinz Add on activity was robust accounting for 53 percent of transaction activity surpassing buyout activity for the first time ever Competition for deals continued unabated throughout the year pushing up deal multiples Acquisition financing multiples eclipsed record highs observed in the 2007 peak and a sellers market drove up valuation multiples to best previous records with financial buyers bidding at comparable levels to strategics Andrew K Petryk is managing director and principal of Brown Gibbons Lang Co LLC an investment bank serving the middle market Contact him at 216 920 6613 or apetryk@ bglco com BY ANDREW K PETRYK WANT MORE For more information about the Association for Corporate Growth please visit www acg org cleveland SELECTED MERGERS ACQUISITIONS Local companies in bold Source S P Capital IQ PitchBook Mergermarket and BGL Research Closed Target Buyers Investors Seller Dec 30 Deimling Forbes Associates Inc HW Co Dec 20 Mace CSSS Inc Security Partners LLC Mace Security International Inc Dec 19 MP Assets Corp and Separatorenerzeugung Trent Capital Partners Seven Polypore International Inc Holding GmbH Mile Capital Partners Br atenahl Capital Partners Dec 19 Airborne Systems Ltd TransDigm Group Inc Metalmark Capital LLC Dec 19 Burke Associates LLC Ryan LLC Dec 18 Flatrolled Steel Inc Majestic Steel USA Inc Dec 18 Paradigm Packaging Inc Scandia Plastics Inc Linsalata Capital Partners PNC Erieview Capital Dec 17 DPA Microphones A S The Riverside Co Dec 17 Girkin Development LLC TravelCenters of America LLC Dec 16 Precision Gear Holdings LLC Rexnord Corp OEP Precision Holdings LLC Dec 13 Evans Insurance Agency Inc Dawson Insurance Inc Dec 13 Village Plastics Inc 3D Systems Corp Dec 11 Tristar Midatlantic Imaging Inc Alpha Imaging LLC Dec 11 Avtron Holdings LLC CapitalWorks LLC Morgenthaler Dec 10 HYTEC Gerätebau GmbH KEYMILE International GmbH The Riv erside Co Dec 10 Bethel Towers Limited Dividend Housing Assoc Millennia Housing Development Ltd Real Estate Associates Ltd Dec 10 East End Welding LLC Connell Limited Partnership Dec 9 RX 21 LLC Giant Eagle Inc Dec 5 Bombardier Aerospace Corp Directional Aviation Capital Bombardier Aerospace Inc Dec 5 Consolidation Coal Co Murray Energy Corp CONSOL Energy Inc Dec 4 LS Kunststofftechnologie GmbH Saint Gobain Performance Plastics Corp Dec 3 CPS Color Group Oy Colorants Business Chromaflo Technologies LLC CPS Color Group OyDec 3 Dec 3 Union Station Agency Inc Howard Hanna Real Estate Services Inc Dec 2 Network Polymers Inc A Schulman Inc Dec 2 Paragrid Inc Evolve IP LLC Dec 23 The Giving Tree Inc Firelands Regional Medical Center Dec 23 Arena Italia S p A Capvis Equity Partners AG The Riverside Co Dec 19 Excalibur Broadcasting LLC KFQX of Grand Junction Mission Broadcasting Inc Excalibur Broadcasting LLC Dec 18 IMG Worldwide Inc Silver Lake William Morris Endeavor Forstmann Little Co Ent ertainment LLC Mubadala Development Co Announced Target Buyers Investors Seller BUSINESS PULSE TRACKING ECONOMIC AND BUSINESS ACTIVITY DEAL OF THE MONTH Paradigm Packaging changed private equity hands with its acquisition by Scandia Plastics backed by Newtown Square Pa based Graham Partners Cleveland based Linsalata Capital Partners acquired Paradigm in 2000 in a corporate divestiture Headquartered in Saddle Brook N J Paradigm Packaging manufactures rigid plastic containers closures and container systems The purchase represents an add on for Scandia acquired by Graham in 2012 furthering its larger acquisition growth strategy to build a national platform in blow molding Scandia designs and manufactures blow molded bottles containers and light industrial parts
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