Archives for 2013

Berkery Noyes Publishes 2012 Media and Marketing M&A Report

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Berkery Noyes has published its full year 2012 mergers and acquisitions trend report for the Media and Marketing Industry. The report analyzes M&A activity in the Media and Marketing Industry during 2012 and compares it with data covering 2010 and 2011.  A link for a free copy of this report is available at the end of this article.

Berkery Noyes’ research showed that deal volume increased three percent on a year-to-year basis, from 1,570 transactions to 1,611 transactions, and rose 22 percent relative to 2010. Aggregate transaction value showed a gain of 17 percent, from $65.4 billion in 2011 to $76.2 billion in 2012. The median revenue multiple declined from 1.8x to 1.3x, while the median EBITDA multiple fell from 9.8x to 7.5x. Strategic acquirers represented 87 percent of the Media and Marketing Industry’s deal volume, which was the same percentage as in 2011.

Transaction volume specifically within the Exhibitions, Conferences, and Seminars segment increased 82 percent compared to 2011. The most active segment acquirer during the three years covered in the report was United Business Media Limited (UBM) with 27 transactions. In addition, financial sponsors accounted for 18 transactions in the segment in 2012, as opposed to eight transactions in 2011. This represented 22 percent of the segment’s 2012 volume, a slight uptick from 18 percent the prior year.

M&A activity in the Entertainment Content segment improved 18 percent from 2011 to 2012. This was driven in part by film studio related transactions, which increased 42 percent throughout the last twelve months. On a similar note, The Walt Disney Company’s acquisition of Lucasfilm for $4.1 billion in 2012 was the highest value Entertainment deal contained in the report.

The most active 2012 acquirer in the overall Media and Marketing Industry was WPP Group. WPP’s largest transaction was its announced acquisition of AKQA, a digital agency headquartered in San Francisco, for $540 million. Aside from this deal, most of its targets were either digital marketing startups or international companies.

The number of transactions within the Marketing segment, at 504, remained nearly constant from 2010 to 2011. The digital marketing subsector specifically increased 34 percent, from 172 to 230. As for the Internet Media segment, there were four deals that reached the $1 billion threshold in enterprise value, compared to just one in 2011. Therefore, although transaction volume in the segment was down 10 percent, the segment’s transaction value rose 81 percent.  One of the largest Internet Media transactions in 2012 was Permira’s acquisition of Ancestry.com, a portfolio company of Spectrum Equity, for $1.4 billion in the fourth quarter.

Deal volume in the Consumer Publishing segment rose 20 percent over the last twelve months. However, the segment’s value fell 38 percent, indicating a greater number of small and mid-sized acquisitions. M&A activity in the B2B segment increased four percent during the same timeframe, with a median revenue multiple of 2.0x and a median EBITDA multiple of 9.0x. This was well above the overall industry’s median enterprise value multiples for the year.

“The ongoing trend toward non-print based delivery has led to changing business models in some instances,” said Kathleen Thomas, Managing Director at Berkery Noyes. “This includes many along the spectrum from recurring revenue offerings to purely advertising based revenue ones. Nonetheless, strong original content is still king in the B2B marketplace, regardless of the delivery mechanism.”

A free copy of the Media and Marketing Industry M&A Report for Full Year 2012 is available by clicking HERE.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13

Leeds Equity Promotes Two

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Leeds Equity Partners, a New York-based private equity firm focused on the education, training and information industries, has promoted Christopher Mairs to Vice President and Kevin Malone to Senior Associate.

“We are delighted to announce these promotions.  Chris and Kevin have each done an outstanding job for the firm, and we are happy today to recognize those contributions,” said Jeffrey Leeds, co-founder of Leeds Equity.

Christopher Mairs joined Leeds Equity in 2008 as an investment professional.  Prior to joining, Mr. Mairs spent three years with Greenhill & Co. in both their London and New York offices.  He serves as a board member of Nobel Learning Communities and is closely involved with SeatonCorp.  Mr. Mairs graduated from the University of St. Andrews, Scotland, with a BSc in Mathematics.

Kevin Malone has been with the firm for two years, joining Leeds Equity as an Associate.  Prior to Leeds Equity, Mr. Malone spent two years with Harris Williams & Co. in their Richmond, VA office.  Mr. Malone graduated from the Olin Business School at Washington University with a BS in Business Administration.

Leeds Equity Partners manages the largest private equity fund in the United States focused on investments in the education, training and business services industries. Founded in 1993, the firm has raised and managed over $1 billion of committed capital and invested in more than 20 companies.  The Board of Advisors of Leeds Equity Partners includes, among others: Chairman General Colin Powell, former Secretary of State, National Security Advisor, and Chairman of the Joint Chiefs of Staff; Dr. Barry Munitz, former Chancellor of the California State University school system and CEO of the J. Paul Getty Trust; Thomas (“Mack”) McLarty III, President of McLarty Associates and former White House Chief of Staff under President William Clinton; Dr. Rod Paige, former Secretary of Education under President George Bush; Richard Riley, former Secretary of Education under President William Clinton and two-term Governor of South Carolina; Tim Fitzpatrick, the former CEO of Sallie Mae Corporation; and Timothy Shriver, Chairman of the Board of the Special Olympics.  Leeds Equity Partners is headquartered in New York (www.leedsequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13

Monroe Capital Backs Latest Webster Acquisition

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Monroe Capital has provided a $46.5 million unitranche credit facility to support the recapitalization of Conisus by Webster Capital.

Conisus provides scientific-oriented promotional marketing and education services to biopharmaceutical companies to assist in the promotion and education of oncology drugs and therapies. The company is based in Atlanta (www.conisus.com).

Monroe Capital is a specialty finance company providing senior and junior debt to middle-market companies. The firm specializes in originating, structuring and providing one-stop financings. Investment types include senior and junior secured debt as well as bridge loans, acquisition facilities, mezzanine or last-out secured loans and equity co-investments. Monroe Capital is based in Chicago (www.monroecap.com).

Webster Capital invests in branded consumer, business- to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values less than $100 million. The firm is currently investing Webster Capital II, a $205 million fund which closed in 2007.  Webster was founded in 2003 and is based in Waltham, MA (www.webstercapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13

Lincoln International Promotes Three to Managing Director

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Investment bank Lincoln International has promoted Jeffrey Corum, Saurin Mehta, and Lucien Webb to Managing Directors of the firm.  These promotions further expand the firm’s capabilities across several key industry groups.  “We are very pleased to announce these promotions because each is a highly effective senior banker and each brings a specific industry expertise to our clients.  This combination of process excellence and industry expertise produces superior service and outcomes for our clients,” said Jim Lawson, Chairman of Lincoln International.

Jeffrey Corum leads Lincoln International’s efforts in the Building and Infrastructure Group in North America.  Mr. Corum joined Lincoln International in 2006 and has over 15 years of experience in middle market mergers and acquisitions.  During his tenure in investment banking, he has worked on sell-side and buy-side transactions, including multiple cross-border transactions.  In addition, Mr. Corum has expertise working on distressed transactions within the sector either through an insolvency process or in out-of-court proceedings. Mr. Corum received his BA from the University of Illinois and his MBA from the University of Chicago Booth School of Business.

Saurin Mehta started his career at Lincoln International as the firm’s fourth analyst in 2000. Mr. Mehta is a senior officer in the firm’s Business Services Group with sector expertise in environmental services and energy services and will lead these practice groups for the firm going forward.  He has advised on sell-side and buy-side transactions for private equity, Fortune 500, and private company clients. Mr. Mehta received his BA from the University of Illinois and his MBA from Harvard Business School.

Lucien Webb is active as a senior officer in the firm’s Business Services Group and co-leads the Packaging industry group in North America with over 10 years of experience in middle market mergers and acquisitions.  He has worked on transactions for private equity groups, public corporations, and private companies in his five years at Lincoln.  Mr. Webb received his BS from Lafayette College and his MBA from the Kellogg School of Management at Northwestern University.

“With these promotions, our industry focused Managing Director team in the US is expanded by almost 15%,” said Robert Barr, CEO of Lincoln International North America.  “These promotions are a major step in the continued growth of Lincoln International.”

Lincoln International specializes in merger and acquisition advisory services, debt advisory services, private capital raising and restructuring advice on mid-market transactions. Lincoln International also provides fairness opinions, valuations and pension advisory services on a wide range of transaction sizes. With thirteen offices in the Americas, Asia and Europe, Lincoln International has strong local knowledge and contacts in key global economies. The firm provides clients with senior-level attention, in-depth industry expertise and integrated resources. Lincoln International is based in Chicago (www.lincolninternational.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Thomas Smith Now Executive Managing Director at Mason Wells

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Mason Wells has announced that effective immediately Thomas Smith will assume the role of executive managing director.  Mr. Smith replaces John Byrnes, who has held the position since the inception of the firm in 1998.  These changes are part of a management succession plan that has been evolving over the last few years and will continue as current portfolio investments are liquidated and new investment funds are formed.

As executive managing director, Mr. Smith will be responsible for day-to-day investment activities of the funds under management by Mason Wells, including the management of new investment activities and the oversight of portfolio development efforts.

Mr. Byrnes will continue as executive chairman of the board and president of the firm, where he will focus on long-term strategy and personnel development.  He will continue to serve on the investment committee and actively manage several of the portfolio investments now held by the funds, but will no longer be initiating new investments on behalf of the firm.

Mason Wells makes investments in Midwest-based companies with $25 million to $300 million in revenues and EBITDAs of at least $5 million.  Sectors of interest include consumer packaged goods, packaging materials & converting, engineered products & services and outsourced business services.  The firm was founded in 1982 and is based in Milwaukee (www.masonwells.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13

Monomoy Announces New Hire and Promotion of Four Team Members

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Monomoy Capital Partners, a New York private equity fund focused on value investing and business improvement, has hired Kareem Aktar as a new Vice President and has promoted four of its existing team members.

Prior to joining Monomoy Capital Partners, Mr. Aktar was a Vice President at H.I.G. Capital Management where he focused on transactions in the industrial and business services sectors.  He has also worked as a private equity professional at Corinthian Capital Group, focusing on similar industries. He received his MBA from Harvard Business School and graduated from MIT with an MA and BS in Electrical Engineering and Computer Science.

Monomoy has also promoted John Stewart to Managing Director.  Mr. Stewart, a former senior executive at Toyota Motor Manufacturing, runs Monomoy’s operations group which is responsible for implementing value improvement programs throughout the Monomoy portfolio. Mr. Stewart has been an operating professional with Monomoy for six years.

In addition, Monomoy has promoted three team members effective January 1, 2013. Jaime McKenzie and Lee Mlotek have been promoted to Vice President, and Eric Ceresnie has been promoted to Senior Associate. These three will continue their work reviewing potential acquisitions and leading transactions at Monomoy.

“We are thrilled with the continued development and growth of the Monomoy team,” said Monomoy partner Justin Hillenbrand. “We believe we have assembled the right mix of talented transaction and operating professionals to invest on behalf of our limited partners and to create substantial value in our portfolio companies.”

Monomoy Capital Partners has $700 million in assets under management and makes control investments in middle market businesses in the manufacturing, distribution, consumer product and foodservice industries. Monomoy is currently investing out of its second fund, Monomoy Capital Partners II, L.P., a $420 million vehicle that closed in January of 2011.  Over the past five years, Monomoy has closed over 40 middle market acquisitions, and its companies currently produce over $1.1 billion in combined sales and employ more than 4,500 people.  The firm is headquartered in New York (www.mcpfunds.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13