Lower Middle Market Weekly Outlook

Although 2014 has been a year of huge transactions, there was just enough time to squeeze in one more deal — the largest takeover of the year. It was announced yesterday that PetSmart has agreed to sell itself to BC Partners for $8.7 billion. Although JPMorgan advised on the PetSmart deal, 2014 has seen a rising prominence of smaller boutique banks in some of the largest transactions.

In other news, New York Times’ Dealbook hosted their annual conference. The event gathered top leaders of the  private equity and banking industry in a conversation around regulatory and monetary policy, economic outlook for 2015, and the robust deal environment. Key topics included the energy sector, the significance of activist investors, and how Jessica Alba started a $1 billion business.

Transactions:

• Strategic Value Partners closes $1.3 billion distressed fund
• White Deer Energy makes majority investment in Flogistix
• Danaher Corporation completes acquisition of Nobel Biocare
• Littlejohn & Co. buys PSC Industrial Holdings Corp.
• Thomas H. Lee Partners in talks to acquire Curo Health
• Cyprium sells stake in Honsador to Grey Mountain Partners
• Altamont Capital Partners invests in Fox Head
• Palladium makes a “significant” investment in Raben Tire
• GTCR nears deal for Fairway Outdoor Advertising
• Argosy joins forces with Ranger Aerospace and Azalea Capital in new investment platform
• Intervale Capital invests in FlexEnergy
• Murata completes acquisition of Peregrine Semiconductor
• CapX Partners offers mezz loan to GRO-WELL
• Riverside sells DISA Global Solutions

Events:

• On Wednesday: Outbound BD: 4 Key Areas for Efficient Business Development

Opinions:

• LPs still plan to raise PE target allocations
• Boutique investment banks gain prestige
• Jeb Bush has a Mitt Romney problem
• Hot M&A market may create more buying opportunities for PE firms
• Lessons for private equity learned from last merger frenzy
• Private equity change favors strongest firms
• Fears private equity is ‘top of cycle’
• Stephen Schwarzman sees opportunities in energy
• Will 2015 be the year of the co-investment?
• Private equity firms unveil plans to sell shares in public companies
• For tech IPOs, 2014 hasn’t been as big a year as it looks
• The mergers and acquisitions cycle: Buy. Divide. Conquer.
• Too many going after a few big PE deals in Africa
• Merger momentum to continue in 2015
• Energy sector volatility affects middle market M&A
• Michael Dell says more public to private equity buyouts coming
• Distressed debt opportunities expect to rise
• A brake on reincorporating abroad via mergers
• A sign of economic confidence? M&A activity in 2014

This week in history… Ivan Boesky was found guilty of insider trading (1987).