Good morning Eurohubsters, Craig McGlashan here with Tuesday’s Dealflow.
Today we talk to Thoma Bravo about its recent investment in European healthcare analytics provider LOGEX – the first by the private equity firm’s new London team. Elsewhere, we have an update on Apollo’s pursuit of engineering firm John Wood Group, add-ons by portfolio companies belonging to PAI Partners and Astorg, and an exit by Mutares.
Opening deal. We recently reported that Thoma Bravo’s new London-based European team had made its first investment, taking a majority stake in healthcare analytics provider LOGEX.
I spoke to Thoma Bravo vice president David Tse about the deal and Thoma Bravo’s plans for the company, including how he believes the firm can expand in the fragmented European market.
“LOGEX’s mission – to bring clarity to healthcare data and transform that data into actionable insights – is applicable and workable across geographies,” said Tse. “However, factors like delivery model, reimbursement structures and technical interoperability make the European market uniquely fragmented. This represents a challenge but also an opportunity.
“We believe that European expansion could create significant opportunities to improve interoperability across health systems, ultimately leading to better outcomes.”
We also touched on how having a dedicated European office helped drive the deal through. Check out the full interview for more on that.
And speaking of European expansion, Golub Capital Partners has added to its London-based team. Check out the details here.
Undervalued. The board of John Wood Group, a multinational engineering and consulting business headquartered in Aberdeen, Scotland, has rebuffed another offer from Apollo Global Management as undervaluing the firm.
Apollo made an offer of 237p per share on Monday, but this morning the board said it was “minded to reject” the offer. Under UK rules, Apollo must make a firm offer or announce that it won’t make an offer by 5pm on 22 March, 2023.
John Wood had already turned down three offers from Apollo, the most recent of which was on 26 January for 230p per share, valuing the company at around £1.6 billion ($1.9 billion; €1.8 billion).
Apollo declined to comment when approached by PE Hub Europe at the time. But a source close to the discussions told us then that the 230p offer was a “pretty big premium”. Check out our full coverage on that here.
John Wood has a big presence in offshore oil and gas, but companies like it could have an advantage in the move to renewable energy, as their expertise, and assets like boats and bases, will be needed to service offshore wind farms, another source told me.
Facility management. Apleona, backed by PAI Partners, announced a merger agreement with Gegenbauer Group, a facility management provider.
Gegenbauer is headquartered in Berlin, Germany, and has 18,000 employees. The firm reports average sales of €900 million annually.
The transaction is expected to be completed by the summer of 2023, subject to regulatory nods.
Tasty deal. Solina, a France-based portfolio company of Astorg Partners, has acquired WT Lynch Foods, a manufacturer of customised savoury and sweet culinary products for foodservice and industrial markets.
Lynch Foods is based in Ontario, Canada. The firm recorded C$95 million ($70 million; €65 million) in annual sales.
For more on food industry deals, check out this recent round-up by PE Hub Europe’s Irien Joseph, which includes deals from Apax, Triton Pacific, Advent International and more.
Exit. Finally, Mutares has sold its portfolio company Lacroix + Kress to Superior Essex Global.
Lacroix + Kress is an oxygen-free copper drawing manufacturer in Europe and employs around 250 people. The firm is based in Bramsche, Germany.
That’s it from me. Nina Lindholm will be with you tomorrow as I have a roundtable to attend, and then I’ll be back with you on Thursday and Friday.