BC Partners to acquire Madison Logic from Clarion

BY Fraser Tennant

In a deal that underscores its deep expertise in technology enabled services and digital marketing, international investment company BC Partners is to acquire a majority stake in account-based marketing (ABM) platform Madison Logic from New York based private equity (PE) firm Clarion Capital Partners.

The terms of the deal have not been disclosed.

Established in 1986, BC Partners has played an active role for over three decades in developing the European buyout market. Since its foundation, BC Partners has completed over 124 PE investments in companies with a total enterprise value of over €160bn and is currently investing its eleventh PE buyout fund.

“Madison Logic embodies the key themes that we look for at BC Partners and within the technology sector,” said Raymond Svider, chairman of BC Partners. “It is an industry leader in a secularly growing market with multiple avenues for growth and a strong management team. The business is the ideal platform to invest in this attractive segment of the market.”

Moreover, BC Partners will support the ABM platform management team to continue to provide unsurpassed services, as well as accelerate its growth trajectory with access to additional capital to invest in the business and its technology to further drive organic and inorganic growth through increased technology platform functionality and service delivery. BC Partners will also expand capabilities in new industries, geographies and advertising mediums.

“Madison Logic has grown substantially and established its leadership position in the market,” said Tom O'Regan, chief executive of Madison Logic. “We are thrilled to now continue in the next stage of our very ambitious growth path, and confident that this will unlock significant new growth opportunities across the business.”

With the support of Clarion, Madison Logic has taken market share through rapid organic growth, driven by a highly targeted go-to-market strategy and investments in technology.

“The execution by the Madison Logic team has been nothing short of incredible as they have scaled the company to become a global leader in account based marketing," said David Ragins, a managing director at Clarion. “It has been a pleasure being part of such a great company and we wish the team continued success with their new partner.”

The transaction is subject to customary regulatory and antitrust approvals.

Mr Syider concluded: “Consistent with our ‘owner-operator’ mindset, we are excited to partner with Madison Logic to execute their strategy and support them in further developing their technology and services offerings.”

News: BC Partners to acquire account-based marketing firm Madison Logic

Space company Maxar acquired by Advent for $6.4bn

BY Fraser Tennant

In a transaction that takes the space technology company private, Maxar Technologies is to be acquired by global private equity (PE) firm Advent International for approximately $6.4bn.

Under the terms of the definitive agreement, which has been unanimously approved by Maxar’s board of directors, Maxar stockholders will receive $53 in cash for each share of common stock they own.

As a private company, Maxar will be able to accelerate investments in next-generation satellite technologies and data insights that are vital to the company’s government and commercial customers, as well as pursue select, strategic M&A to further enhance its portfolio of solutions.

“Advent has a proven record of strengthening its portfolio companies and a desire to support Maxar in advancing our long-term strategic objectives,” said Daniel Jablonsky, president and chief executive of Maxar. “As a private company, we will have enhanced flexibility and additional resources to build on our strong foundations, further scale operations and capture significant opportunities in a rapidly expanding market.”

Headquartered in the US, Advent has a demonstrable track record as a responsible owner of defence and security businesses. Following the close of the transaction, Maxar will remain a US-controlled and operated company.

“We have tremendous respect and admiration for Maxar, its industry-leading technology and the vital role it serves in supporting the national security of the US and its allies around the world,” said David Mussafer, chairman and managing partner of Advent. “We will prioritise Maxar’s commitment as a core provider to the US defence and intelligence communities, and allies, while providing Maxar with the financial and operational support necessary to apply its technology and team members even more fully to the missions and programmes of its government and commercial customers.”

The transaction is expected to close mid-2023, subject to customary closing conditions, including approval by Maxar stockholders and receipt of regulatory approvals.

Mr Jablonsky concluded: “This transaction is an exceptional outcome for stockholders and is a testament to the hard work and dedication of our team, the value Maxar has created and the reputation we have built in our industry.”

News: Advent to buy satellite operator Maxar Technologies for about $4 billion

L3Harris to acquire Aerojet Rocketdyne for $4.7bn

BY Richard Summerfield

L3Harris Technologies Inc. has agreed to acquire rocket engine manufacturer Aerojet Rocketdyne Holdings Inc. in a deal valued at around $4.7bn.

Under the terms of the deal, which is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions, L3Harris will pay $58 per share, in an all-cash transaction valued at $4.7bn, inclusive of net debt. L3Harris will use existing cash and issue new debt to fund the deal

The deal marks L3Harris’ second acquisition announcement of 2022 after previously agreeing to acquire Viasat’s tactical data links unit, which provides data and voice communications systems for military vehicles, aeroplanes and ships, for $1.96bn.

Lockheed Martin, the world’s largest defence contractor by revenue, tried to buy the Rocketdyne for $4.4bn before abandoning the bid after federal regulators sued in January to block it. The Federal Trade Commission (FTC) noted that Lockheed would use its ownership of Aerojet to damage other defence companies and would ultimately control multiple defence programmes critical to national security.

“We’ve heard the DoD leadership loud and clear: they want high-quality, innovative and cost-effective solutions to meet both current and emerging threats, and they’re relying upon a strong, competitive industrial base to deliver those solutions,” said Christopher E. Kubasik, chief executive and chair of L3Harris. “With this acquisition, we will use the combined talents of more than 50,000 employees to drive continuous process improvement, enhance business operations and elevate the performance of this crucial national asset.”

“This agreement will accelerate innovation for national security propulsion solutions while providing a premium cash value for our shareholders and tremendous benefits for our employees, customers, partners and the communities in which we operate,” said Eileen P. Drake, chief executive and president of Aerojet Rocketdyne. “Joining L3Harris is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution. As part of L3Harris, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration. This is an exciting new chapter for Aerojet Rocketdyne and our over 5,200 dedicated team members, providing them with additional opportunities, and we look forward to working closely with L3Harris to complete this transaction.”

Aerojet Rocketdyne currently generates around $2.3bn in annual revenue. The company’s employees operate out of advanced manufacturing facilities across the US. L3Harris has more than $17bn in annual revenue and customers in more than 100 countries.

News: Defense firm L3Harris to buy Aerojet for $4.7 bln with eye on missile demand

FedNat files for Chapter 11 bankruptcy protection

BY Fraser Tennant

Three months after the liquidation of FedNat Insurance Company, regional insurance holding company FedNat and certain of its wholly-owned subsidiaries have filed for Chapter 11 bankruptcy.

The Florida-based FedNat filed for bankruptcy after an increase in severe weather events in the state weighed on its balance sheet. In 2021, catastrophe losses cost FedNat $800m on a gross basis, although reinsurance and other recoveries reduced that loss to $86m, according to bankruptcy court papers.

Listing $33.8m of assets and $171m of debts in its petition in the United States Bankruptcy Court for the Southern District of Florida, FedNat’s bankruptcy filing underscores Florida’s deepening home insurance crisis, where average premiums are nearly triple the national average.

As an industry, the Florida property insurance industry lost over $1.6bn in 2020 and over $1.5bn in 2021, thanks to losses from catastrophes, higher reinsurance costs and litigation abuse. In addition, at least five other Florida insurers have been put into receivership by the state’s regulator in 2022.

As part of the Chapter 11 process, the company has stated that it will evaluate all strategic alternatives to maximise value for stakeholders, whether that be a reorganisation of its business or a sale of its assets.

FedNat has approximately $6.5m of cash on hand, which will provide liquidity to support day to day operations during the Chapter 11 process, enabling the company to operate business uninterrupted, including the timely payment of employee wages and benefits and continued servicing of customers.

Additionally, the company will file customary “First Day” motions to allow it to maintain operations in the ordinary course. The company intends to pay its employees in the usual manner and continue their primary benefits and certain customer programmes without disruption.

FedNat expects to receive court approval for all these routine requests.

To manage the restructuring process, FedNat has engaged GGG Partners, LLC as financial advisers and Nelson Mullins Riley & Scarborough LLP as legal advisers.

FedNat is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through its subsidiaries, equity investments and contractual relationships with independent agents and general agents.

News: Three Months After Liquidation, FedNat Holding Co. Files Chapter 11 Bankruptcy

Weber taken private in $3.7bn deal

BY Richard Summerfield

Grill manufacturer Weber Inc. has agreed to be taken private by BDT Capital Partners in a $3.7bn deal.

BDT, Weber’s controlling shareholder with a 48.2 percent stake in the company, has agreed to buy all of the outstanding shares in Weber that it does not already own for $8.05 per share. The purchase price represents a 60 percent premium to Weber’s closing price on 24 October, the last trading day before BDT submitted its takeover offer.

Upon completion of the transaction, Weber will become a privately held company majority owned by investment funds managed by BDT. The deal is expected to close in the first half of 2023, subject to customary closing conditions. The transaction has been approved by the written consent of the holders of the requisite number of shares of common stock of Weber, such that no additional stockholder approval is required.

In connection with the transaction, BDT managed investment funds will provide Weber with an additional unsecured loan facility in the aggregate principal amount of $350m. Weber intends to use the loan to repay existing debt and fund working capital for the 2023 outdoor cooking season. The previous $60m loan agreement that Weber entered into with BDT managed investment funds on 8 November 2022, will remain outstanding, the companies confirmed in a statement.

“We appreciate the Special Committee’s comprehensive evaluation of BDT’s offer and are confident that this transaction provides immediate and fair value to Weber minority shareholders,” said Alan Matula, interim chief executive of Weber. “For over a decade, BDT has been a longstanding strategic partner for Weber. With their continued support, our global team will move forward in executing our long-term strategy with consumers and customers as our top priorities. And we’ll continue to sharpen our focus on doing what we do best: delivering the outdoor cooking industry's most innovative, best-performing, highest-quality products and engaging millions worldwide who love to gather together and cook outside.”

“Weber is the #1 brand and global category leader in outdoor cooking, and it has demonstrated a relentless commitment to quality and innovation over its 70-year history,” said Kelly Rainko, a partner at BDT and non-executive chair of the board of Weber. “We look forward to continuing our partnership with the company and the founding Stephen family in its next chapter.”

News: Grill maker Weber to go private with BDT Capital in $3.7 bln deal