Mergers & Acquisitions
January 24, 2023
Mearthane Recapitalization
Alantra advises Mearthane Products Corp. on a recapitalization by Compass Group Equity Partners
SECTORIndustrials
ServiceM&A
Dec 2022https://www.alantra.com/ib-transaction/mearthane-products-corporation-sell-side-advisory-compass-group-equity-partners/
Sell-side advisory
Boston – Alantra, a leading global investment bank and asset management firm, is pleased to announce that Mearthane Products Corporation (“MPC”), a leader in proprietary, branded urethane-based technology, has been recapitalized by Compass Group Equity Partners (“CGEP”). The deal closed on December 23, 2022, and financial terms were not disclosed.
Founded in North Providence, Rhode Island, in 1965, MPC is a leader in the development and manufacture of polyurethane elastomers with a specific focus on advanced thermoset products for use in high performance applications. With an emphasis on urethane technology, partnership, quality, and community, MPC produces high performance parts including belts, rollers, wheels, seals, and enclosures for diverse end markets such as medical & analytical testing, digital printing, vehicle platforms, and sports & recreation.
“We are very pleased with Alantra’s teamwork and guidance throughout this process,” said Kevin Redmond and Peter Kaczmarek, the shareholders of MPC. “Alantra was a committed advisor from start to finish, and clearly delivered on our objective of finding a partner for the next chapter of growth for MPC.”
Paul Colone, Managing Director & Partner with Alantra, said, “We are very pleased to deliver on the MPC shareholders’ objectives to form a new partnership to support their active pipeline of M&A and organic growth opportunities. We have a very active practice in Specialty Materials and MPC meets the definition in every respect due to their focus on developing technical solutions for high performance applications.”
Alantra Director Jon Tetirick continued, “MPC has found an excellent partner in CGEP and we look forward to following the new owners as they continue to execute on MPC’s M&A add-on strategy in what is sure to be an exciting and rewarding future ahead.”
MPC represents another strong credential supporting Alantra’s expertise with Specialty Materials and Industrials. In addition to Mr. Colone (Boston), and Mr. Tetirick (Boston), the Alantra team advising MPC included Sam Worley (Associate, Boston), and Alif Kanji (Analyst, Boston).
www.alantra.com/what-we-do/investment-banking/transactions/?sector=industrials
Read more here: https://www.cgep.com/news/2023/compass-group-announces-strategic-partnership-with-mearthane-products-corporation
January 12, 2023
Univar Discussions
Univar gains amid report about interest from PE firms Apollo, Platinum
Jan. 11, 2023 3:17 PM ETUnivar Solutions Inc. (UNVR)APO, BNTGFBy: Joshua Fineman, SA News Editor1 Comment
Univar Solutions Inc. (NYSE:UNVR) rose 3.4% amid a report that private equity firms including Apollo Global (APO) and Platinum Equity may be interested in a takeover of the US chemical distributor.
The PE firms are evaluating offers and potential buyers are holding discussions with Univar (UNVR) this month, according to traders, who cited a Bloomberg report. The talks are early and Univar hasn’t decided if it will sell itself.
The report comes after Brenntag (OTCPK:BNTGF) last Monday said it ended talks to acquire rival chemical distributor Univar (UNVR).
Univar indicated last Monday that it will continue talks relating to other indications of interest that have been received with respect to a potential transaction. Univar (UNVR) is said to have received takeover interest from multiple strategic buyers valuing the company at around $40/share, according to a Street Insider report at the time.
In late November activist Engine Capital, which disclosed it had a ~1% stake in Univar, said the company should start a competitive sales process that invites additional parties to bid for Univar besides Brenntag.
Engine Capital highlighted a letter it sent to Univar’s board in October and estimated that Univar (UNVR) may be worth $38-$44/share in a takeover.
January 10, 2023
Mattress Firm Pulls IPO
Mattress Firm pulls IPO plans amid recessionary fears
Jan. 10, 2023 4:20 PM ETSteinhoff International Holdings N.V. (STHHF)WMT, AMZN, TPX, SNBR, SSB, W, PRPL, MFRMBy: Val Kennedy, SA News Editor
Mattress Firm (MFRM) has pulled plans for an initial public offering as retailers brace for a possible recession later this year.
The mattress retailer first filed for the IPO in January 2022, indicating it was looking to raise $100M, a number that was likely a placeholder and subject to change. Shares were expected to trade on NYSE under the symbol MFRM.
The IPO would have marked a return to the public markets for Mattress Firm, which was taken private by Steinhoff International (OTC:STHHF) in 2016 for $3.8B. The retailer ended up filing for bankruptcy in 2018, but emerged a month later. It shuttered around 700 stores as part of its reorganization.
As of the end of September 2021, Mattress Firm still had 2,353 retail stores, according to its IPO filing. The company also sells mattresses and bedding through its e-commerce sites mattressfirm.com and sleep.com. In addition to reselling brands made by mattress makers such as Tempur Sealy (TPX) and Serta Simmons (SSB), Mattress Firm also sells products under its private labels, Tulo and Sleepy’s.
Mattress Firm has been facing increased competition from mattress sellers Casper, Purple (PRPL) and Sleep Number (SNBR), along with online furniture retailers such as Wayfair (W), Amazon (AMZN) and Walmart (WMT). Mattress maker and retailer Casper was taken private by Durational Capital in January of last year.
On Tuesday, Wedbush said that it sees Mattress Firm as an acquisition candidate in the wake of the IPO withdrawal, with Tempur Sealy as a possible bidder.
January 10, 2023
Sheela Foam Acquisition
India’s Sheela Foam to buy rival mattress maker Kurlon for $241 mln- ET Now
BENGALURU, Dec 28 (Reuters) – Indian mattress maker Sheela Foam Ltd (SHEF.NS) will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources.
Should the deal go through, Sheela Foam could command a market share of 35-40%, Moneycontrol had reported last month, quoting a person familiar with the planned deal.
Sheela Foam and Kurlon did not immediately respond to Reuters’ requests for comment.
Sheela Foam, which sells the “Sleepwell” brand of mattresses, is the only listed mattress maker in the country.
The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India’s modern mattresses sector at 175 billion rupees.
Sheela Foam shares rose as much as 5% to 1,338 rupees following the report.
News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the Moneycontrol report added.
It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.
Kurlon’s annual consolidated net profit has declined from 760.9 million rupees in fiscal year 2020 to 179.7 million rupees in fiscal year 2022.
Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across India.
($1 = 82.8880 Indian rupees)
January 10, 2023
Sheela Foam Acquisition
India’s Sheela Foam to buy rival mattress maker Kurlon for $241 mln- ET Now
BENGALURU, Dec 28 (Reuters) – Indian mattress maker Sheela Foam Ltd (SHEF.NS) will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources.
Should the deal go through, Sheela Foam could command a market share of 35-40%, Moneycontrol had reported last month, quoting a person familiar with the planned deal.
Sheela Foam and Kurlon did not immediately respond to Reuters’ requests for comment.
Sheela Foam, which sells the “Sleepwell” brand of mattresses, is the only listed mattress maker in the country.
The Ghaziabad-based company has a 25% market share in the sector, according to a note by ICICI Securities. The brokerage pegs India’s modern mattresses sector at 175 billion rupees.
Sheela Foam shares rose as much as 5% to 1,338 rupees following the report.
News of the potential acquisition comes as Kurlon Chairman and Managing Director Sudhakar Pai is looking to hand over the reins, the Moneycontrol report added.
It also comes at a time when other industry players like Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to multiple media reports.
Kurlon’s annual consolidated net profit has declined from 760.9 million rupees in fiscal year 2020 to 179.7 million rupees in fiscal year 2022.
Started in 1962 as Karnataka Coir Products Ltd, Kurlon currently has nine plants and 72 branch and stock points across India.
($1 = 82.8880 Indian rupees)
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