• Subscribe
  • Log In
  • Sign up for email updates
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Texas Lawbook

Free Speech, Due Process and Trial by Jury

  • Appellate
  • Bankruptcy
  • Commercial Litigation
  • Corp. Deal Tracker/M&A
  • GCs/Corp. Legal Depts.
  • Firm Management
  • White-Collar/Regulatory
  • Pro Bono/Public Service/D&I

CDT Roundup: 13 Deals, 9 Firms, 81 Lawyers, $14.8B

November 15, 2022 Claire Poole

The CDT Roundup has seen an increasing number of healthcare deals – note the top one below, VillageMD’s acquisition of Summit Health-CityMD for an eye-popping $8.9 billion (Dallas lawyers for Sheppard Mullin were part of VillageMD’s deal team). We have also witnessed Texas law firms recruiting attorneys with an expertise in the sector (see Greenberg Traurig’s recent hire).

It’s with good reason. There’s a lot of activity in the healthcare industry these days, what with our ever-aging population, the move online with everything from electronic charts to virtual visits (thanks Covid) and physician-led practices continuing to sell out to private equity firms.

In fact, healthcare services is the largest vertical within PE healthcare investing, accounting for roughly 10 percent of PE buyout and growth deals overall in 2022, according to a new report by PitchBook.

Indeed, U.S. PE deal activity in healthcare services has remained resilient so far this year. Estimated deal count through Q3 2022 – 725 transactions – already exceeds 2020’s full-year figure (721) as well as 2019’s, 2018’s and 2017’s.

In Texas there were 69 M&A healthcare-related transactions during those first three quarters.

However, the industry faces growing headwinds, PitchBook said. Staffing shortages are squeezing virtually every type of healthcare services organization, increasing costs and inhibiting growth.

“The financial strain is most acute for hospitals, which have significant fixed costs due to facility overhead, and which had little time to regroup financially after the worst of the pandemic abated,” the report said. “Also heavily affected are healthcare organizations that rely on low- or moderately skilled care providers and operate on lower per-visit margins, such as home care agencies, applied behavior analysis therapy clinics, and group homes for people with intellectual and developmental disabilities.”

Despite these challenges, many lower-middle-market platforms are still growing aggressively, and where multiples have relaxed, they have done so only slightly—to pre-pandemic levels, according to the report. And while reimbursement and staffing cost pressures have prompted buyers to more closely scrutinize quality of earnings and forward EBITDA projections, they have also continued to push independent practice sellers into the market. So look for more deals in this space.

Weekly Corporate Deal Tracker Roundup Stats

A compilation of weekly stats from The Lawbook's CDT Weekly Roundup
(Deal Values in Millions)

Week EndingDeal CountAmountFirmsLawyersM&A CountM&A Value $MCapM CountCapM Value $M
March 18, 20237$14,048.86695$13,3452$703.8
March 11, 202321$11,5761616516$8,1315$3,445
March 4, 202320$9,6681122816$8,2094$1,459
February 25, 202313$5,3351313012$4,2351$1,200
February 18, 202314$5,743.7131588$898.76$4,845
February 11, 202316$12,0881213712$9,9654$2,123
February 4, 202317$8,0661514013$5,6144$2,452
January 28, 20237$2,1807755$1,692.752$488
January 21, 202317$5,7681617412$1,9185$3,850
January 14, 202311$2, 800101028$4213$2,400
January 7, 202318$8,2961116714$6,4613$1,835
December 31, 202214$2,732119912$2,0922$640
December 1714$7,9191311512$7,4191$500
December 10, 202214$10,093128811$7,0933$3,000
December 3, 202226$12,800.91117220$4,1416$8,659.9
November 26, 20228$2,266.7853$765$2,190.7
November 19, 202221$2,8861521219$2,5502$336
November 12, 202213$15,093.79819$14,2004$893.7
November 5, 20222519,337.21650922$8,267.23$11,070
October 29, 202215$7,805.3911614$7,180.31$625
October 22, 202220$8,193.51325313$5,4427$2,751.5
October 15, 20229$3,046.191397$2,588.32$457.8
October 8, 202219$2,011.81211416$833.83$1,178
October 1, 202223$5,532.91615618$4,952.35$580.6
September 24, 202218$5,1941421615$4,0503$1,144
September 17, 202221$8,352.31232015$4,759.66$3,592.7
September 10, 202215$19,853.51012613$19,403.62$450
September 3, 20229$2,3129629$2,31200
August 27, 202216$30,891.71013515$30,666.41227.7
August 20, 202212$1,977815299253$1,052
August 13, 202218$8,004.71124211$2,844.77$5,160
August 6, 202224$7,948.91224017$3,5777$4,371.9
July 30, 20228$6,9419787$6,8391$102
July 23, 202211$801119210$80110
July 16, 202214$3,6501012214$3,65000
July 9, 202210$3,557.77689$3,557.710
July 2, 202218$8,609.41315215$2,754.43$5,855
June 25, 202215$6,142131469$2,0176$4,125
June 18, 202217$11,890.11422815$11,4102479.7
June 11, 202217$7,6001212310$2,3007$5,300
June 4, 202212$2,937101279$6923$2,245
May 28, 20229$3,197.611869$3,197.600
May 21, 202214$7,284.51218511$6,6093$675.5
May 14, 202211$306.698010$306.61$225
May 7, 202216$10,451.751210812$1,8274$8,624.75
April 30, 202216$2,296.51615712$895.54$1,401
April 23, 202210$2,24111588$16412$600
April 16, 202211$6,64371568$2,3593$4,284
April 9, 202217$4,4291418411$1,6906$2,739
April 2, 202213$1,75588410$1,1453$610
March 26, 202211$3,2058656$2005$3,005
March 19, 202213$2,239.17910613$2,239.1700
March 12, 202218$12,0161123915$11,9652$51.35
March 5, 202217$6,7861313713$5,1614$1,625
February 26, 202212$5,09581499$4,437.53$658
February 19, 202217$22,2291717414$21,3543$875
February 12, 202212$2,344.710738$641.74$1,703
February 5, 202211$2,50389911$2,50300
January 29, 202211$3,8721210112$3,87200
January 22, 202213$5,143.5109912$4,842.51$301
January 15, 202212$7,60591559$6,4803$1,025
January 8, 202213$8,256.21110213$8,256.200
January 1, 20229$1,273.86509$1,273.800
December 25, 202121$4,734.751117616$3,4105$1,324.75
December 18, 202126$7,325.21519318$3,640.28$3,685.2
December 11, 202116$5,0171010913$1,4173$3,600
December 4, 202114$2,3108868$2,3106$1,882.05
November 27, 20219$3.460.1101016$1,7583$1,702.6
November 20, 202120$22,7921515712$18,864.58$3,928
November 13, 202121$26,7291217813$11,8228$14,907
November 6, 202112$8,3031315710$6,6823$1,621
October 30, 202121$10,3681521815$9,24.46$1,103.
October 23, 202121$18.783.11522211$12,31410$6,468.6
October 16, 202115$3,8681111815$2,2932$1,575
October 9, 202120$8,6101617516$7,7954$815
October 2, 202114$6,2501113710$5,2004$1,050
September 25, 202111$11,4609937$10,2004$1,250
September 18, 202111$16,6038998$15,0843$1,519
September 11, 202117$10,6531110313$8,5034$2,150
September 4, 202113$7,222108911$6,7152$507
August 28, 202112$76396311$6631$100
August 21, 202112$29,65977911$29,5791$80
August 14, 202122$17,8451119912$12,80510$5,04
August 7, 202117$13,6701213915$11,7662$1,904
July 31, 202121$8,1601113410$3,57410$4,586
July 24,202121$6,3671113915$3,7126$2,655
July 17, 202114$4,0091112412$2,0152$1,994
July 10, 202116$3,9971314311$1,5974$2,4
July 3, 202124$7,492139416$3,7698$3,722
June 26, 202110$4,9957858$3,8472$1,148
June 19, 202128$16,83082289$1,86119$14,968
June 12, 202126$27,2381520919$25,6027$1,636
June 5, 202115$15,5391310013$14,7092$600
May 29, 202135$20,2791114528$18,647$1,639
May 22, 202124$53,2081417417$51,0477$2,161
May 15, 202118$10,6201322011$5,8707$4,809
May 8, 202117$10,4001115615$8,3862$2,500
May 1, 202121$7,2001611512$3,8089$3,392
April 24, 20218$20,2009318$20,20000
April 17, 202114$6,270810211$4,01803$2,260
April 10, 202115$8,9401312914$7,9901$950
April 3, 202118$19,5131015112$16,9236$2,590
March 27, 202127$13,9421524414$4,30013$9,633.5
March 20, 202111$2,04641023$2708$1,776
March 13, 202115$3,27091096$5389$2,732
March 6, 202124$13,6171019613$10,39511$3,222
February 27, 202119$8,1051213915$4,9704$3,135
February 20, 20219$8,82091538$8,5201$300
February 13, 202112$4,852.678172,7665$2,086.6
February 6, 202118$9,7521315314$5,2224$4,530
January 30, 202118$9,449918215$8753.83$695.3
January 23, 202114$8,15081186$4,0008$4,150
January 16, 202117$6,7831313811$2,4006$4,382.9
January 9, 202122$6,8291413518$3,139.34$3,690
January 2, 20217$1,4667607$1,46600
December 26, 202018$15,9001216316$5,3001$600
December 19, 202018$9,7691411014$8,4264$1,343
December 12, 202010$7,20091009$3,3251$3,830
December 5, 202015$4,26191229$2,7806$1,481
November 28, 202019$7,7581011013$4,0036$3,755
November 14, 202014$864.11415712$289.12$575
November 7, 202013$6,33291299$2,483.54$3,849
October 31, 202010$3,995.881036$3,231.14$754.7
October 24, 20206$18,1006585$17,7091$350
October 17, 20208$351.95558$351.900
October 10, 20207$5,2293504$7353$4,494
October 3, 202014$21,42891739$17,5355$3,893
September 26, 202010$12,7708935$10,3005$2,470
September 19, 202014$8,36591016$1,0208$7,345
September 12, 20206$4,4068593$1,2703$3,136
September 5, 202011$5,19181179$4,0612$1,130
August 29, 202011$2,5319945$1,1306$1,401
August 22, 202018$6,574121407$1,93011$4,644
August 15, 202013$4,99110977$1,2166$3,775
August 8, 202012$32,092111129$30,4573$1,635
August 1, 20207$5,2878765$3,6872$1,600
July 25, 20209$18,7516677$18,4032$348
July 18, 20206$1,982.55504$1,407.52$575
July 11, 202011$565.1127510$65.11$500
July 4, 202010$8,8898989$8,7881$100.3
June 27, 20208$6,87410505$4,972.53$2,081.5
June 20, 202012$4,44491157$2,8295$1,615
June 13, 20206$3,5824372$3504$3,232
June 6, 202011$3,213.78657$4704$2,743.7
May 30, 20208$7,3357486$4,6392$2,697
May 23, 20204$432.44343$432.410
May 16, 20206$3106345$31010
May 9, 202018$5,6301612414$3,1804$2,450
May 2, 20201510,40010908$1,9007$,8,500
April 25, 20208$3,4009365$1,0003$2,450
April 18, 202019$9,50014928$185.711$9,360
April 11, 202012$6,0009405$1907$5,800
April 4, 202014$8,200116810$2,2004$6,000
March 28, 202016$6,500139610$3,7006$2,800
March 21, 202011$11,9107337$2,2504$9,960
March 14, 20207809.86346684.81125
March 7, 202016$2,500157013$6693$1,400
February 29, 202013$15,2601312811$11,7602$3,500
February 22, 202012$3,700109210$2,5602$1,130
February 15, 202016$1,250108412$354$1,222
February 8, 202018$6,0801412314$2,5954$3,485
February 1, 202021$20,9001210114$17,8607$3,060
January 25, 202013$7,430136212$6,4301$1,000
January 18, 202023$9,5801512019$6,5804$3,000
January 11, 202021$14,2001819916$1,0205$13,200
January 4, 202022$6,4001111916$3,2046$3,245
December 28, 201922$7,1501917518$6,8004$327.4
December 14, 201924$36,3002316719$9,5005$26,800
December 7, 201911$10,40011557$1,0824$9,370
November 30. 201914$2,4501212612$1,7602$692.5
November 23, 201916$1,995104111$6155$1,380
November 16, 201915$3,8201313511$2,5004$1,271
November 9, 201925$12,9001718223$12,2002$575
November 2, 201910$2,470126192,4503$22
October 26, 201912$5,560147011$3,8601$1,700
October 19, 20198$6,60081388$6,60000
October 12, 201919$4,300145516$3,8003$500
October 5, 201918$14,5001916615$11,1003$3,400
September 28, 201919$8,1001813218$7,5601$550
September 21, 201914$6,300166611$2,1603$4,170
September 14, 201915$23,800125611$21,2504$2,570
September 7, 201917$3,500159814$1,9003$1,600
August 31, 20195$8,7006505$8,70000
August 24, 201916$10,000148215$4,2501$5,750
August 16, 201910$1,6805527$6503$950
August 9, 201917$17,700156814$3,9003$13,800
August 2, 201913$5,7601210813$5,760NANA
July 27, 201911$7,30013768$6,5703$730
July 20, 201913$11,8001312511$5,3002$6,500
July 13, 201910$7757468$542.52$233
July 6, 20197$2,5009857$2,50000
June 29, 201923$8,2901515417$2,3006$5,970
June 22, 201917$10,7001013914$7,7003$3,000
June 15, 201911$13,5001416011$13,500NANA
June 8, 201913$2,870175511$1,5702$1,300
June 1, 201910$4,46011608$4,1402$315
May 25, 201917$4,360147914$3,7003$612
May 18, 201922$9,0001715016$3,4006$5,600
May 11, 201918$19,8001717715$18,3003$1,500
May 4, 201910$7,0756328$6,9002$175
April 27, 201915$3,2001411714$3,1601$40
April 20, 201913$13,50010909$12,2004$1,300
April 13, 201916$38,900149114$37,8002$1,100
April 6, 201912$6,870119410$6,7302$50
March 30, 201915$6,470128410$7,91.55$5,677
March 23, 201918$6,450149114$5,0424$1,408
March 16, 201914$10,1801211511$8,8003$1,300
March 9, 20199$1,8006498$1,3001$500
March 2, 201920$3,0331610714$1,8176$1,262
February 23, 201912$2,0408699$614.63$1,430
February 16, 201916$9,970187716$9,97000
February 9, 201914$6,4001011014$6,40000
February 2, 201918$6,740159916$5,7202$950
January 26, 201913$2,770116711$918.952$1,850
January 19, 201915$3,819167612$2,5943$1,225
January 12, 201918$7,283149215$1,6833$5,600
January 5, 201910$529125010$52900
December 22, 201817$2,570138714$9413$1,629
December 15, 201810$2,8608268$2642$2,600
December 8, 201815$1,819166512$5523$1,267
December 1, 201812$7,50010909$1,2003$6,200
November 28, 201815$4,5001110714$4,0001$500
November 19, 201818$6,137139813$2,1425$3,995
November 14, 201818$9,2001315215$8,5003$694
November 6, 201816$17,3001618314$16,3612$950
October 29, 201814$14,4001812717$13,8001$600
October 24, 201813$6,1401312611$5,1222$1,018
October 17, 201818$18,3901512514$12,2924$6,098
October 10, 201829$3,1491810420$1,6479$819
October 2, 201818$9,300116714$7,3004$2,000
September 25, 201813$7,000117510$6,0003$995
September 18, 20189$3,5707449$3,57000
September 11, 201813$5,9001013213$5,90000
September 7, 201814$5,000158611$4,0003$1,000
August 29, 201815$20,700147913$4,7002$16,000
August 20, 201810$12,40011538$11,3803$1,057
August 14, 201812$19,900121329$18,8893$1,011
August 7, 201816$68,6001110613$67,2593$1,340
July 31, 201815$15,100159511$13,0604$2,060
July 23, 201813$2,130156010$1,8043$1,100
July 17, 201814$5,37017989$4,3105$1,100
July 9, 201816$11,200157410$11,0806$862
July 3, 201813$7,00078112$6,3301$750
June 25, 201815$8,80013979$4,9706$3,930
June 18, 201813$14,20014807$2216$14,290
June 11, 201812$6,3008968$5,9104$803
June 6, 201813$14,50010888$14,1545$579
May 31, 201811$4,89010638$3,2403$1,790
May 22, 201815$20,40011639$19,8086$885
May 15, 201815$4,7001510610$3,9005$643
May 9, 201811$1,40013889$1,3002$560
May 1, 20188$14,2507887$13,4001$450
April 24, 201812$5,30066111$4,4701$800
April 17, 20189$1,80010447$2,3302$1,434
April 11, 201811$2,5008326$1,6905$809
April 3, 201815$13,400111219$12,0206$1,090
March 28, 201810$4,00010927$3,8703$215
March 19, 201817$5,800135110$5907$5,165
March 12, 201815$3,130114311$2,3604$788
March 6, 201819$5,4001311610$1,5309$4,860
February 27, 201820$6,600136914$5,5306$1,030
February 19, 201815$5,5001411110$3,9906$1,980
February 12, 201823$10,9001715712$7,11011$3,840
February 5, 201816$8,600131007$1,3309$7,800
January 30, 201811$12,60011685$7,3006$4,982
January 24, 201819$9,400151295$2,01014$7,337
January 18, 201810$6,2808492$2,1008$4,188
January 9, 201812$16,50012929$15,8903$475
January 3, 201810$2,5009478$2,3502$150
December 27, 201715$9,000151139$7,5686$1,784
December 18, 201715$13,800161649$13,0107$1,118
December 11, 201714$9,7001012612$2,9404$8,500
December 4, 20176$1,8006315$1,5101$300
November 28, 20177$3,8508764$3,2603$285
November 16, 201710$2,70010486$1,8404$856
November 8, 201715$2,380179110$1,8605$516
November 1, 201712$4,70017949$3,4004$1,300
October 23, 201715$10,500106710$9,7804$1,530
October 18, 20176$2,000373$2253$1,820
October 10, 201712$6,5701009$3,8803$3,360
October 2, 20178$3,10011193$1,6305$1,750
September 25, 20178$4,8808795$2,6605$2,070
September 18, 20179$4,7703$3006$4,470
September 12, 201711$4,4308$2,0303$2,400
September 1, 20174$1,3103$3171$1,000
August 23, 201711$13,64098$11,8403$1,800

M&A/FUNDINGS

VillageMD acquires Summit Health-CityMD for $8.9B

Deal Description: VillageMD announced Nov. 7 it agreed to acquire Warburg Pincus-backed Summit Health-CityMD, a provider of primary, specialty and urgent care. The transaction is valued at around $8.9 billion with investments from Walgreens Boots Alliance Inc. and an affiliate of Evernorth, a unit of Cigna Corp. Walgreens will invest $3.5 billion through an even mix of debt and equity to support the acquisition. Cigna will be a minority owner in VillageMD. VillageMD and Summit Health-CityMD aim to create a multi-payor platform to deliver quality, affordable care for all patients. The combined company leverages VillageMD’s expertise in value-based care to support and accelerate the transition to more risk-based care and Summit Health-CityMD’s expertise delivering multispecialty, connected care. It also enhances Walgreen’s portfolio of integrated healthcare offerings. the two said. Summit Health-CityMD has a footprint in the northeast U.S. and Oregon. VillageMD and Summit Health will have more than 680 provider locations in 26 markets.

Expected Closing: Q1 2023

VillageMD’s Outside Counsel: Sheppard Mullin led by healthcare industry team leader Eric Klein in Century City, Calif., but including partner Phil Kim and associate Mackenzie Wortley in Dallas

Chart Industries buys Howden for $4.4B

Deal Description: U.S. manufacturer Chart Industries Inc. announced Wednesday it agreed to buy UK-based industrial equipment maker Howden from private equity firm KPS Capital Partners for $4.4 billion in cash and newly created preferred stock, doubling its revenue and earnings. Winston advised Chart. For more info, click here.

Align Capital closes oversubscribed Fund III at $620M

Deal Description: Cleveland- and Dallas-based Align Capital Partners announced Nov. 1 the closing of its third private equity investment fund, Align Capital Partners Fund III. ACP began fundraising in September 2022 with an initial target of $550 million of limited partner commitments. With the support of existing investors and a personal commitment from the firm’s team, ACP III had its first and final close on Oct. 28 at $620 million. With the ACP III closing, ACP has raised $1.4 billion since its founding in 2016. ACP has invested in 18 platform companies, completed 60 add-on acquisitions and exited six investments. ACP said it has helped increase its portfolio companies’ revenue through organic growth initiatives and by closing an average of three add-ons per platform. It added it takes a disciplined, growth-focused approach toward investing in lower-middle market companies with up to $15 million of EBITDA. ACP’s inaugural $325 million fund closed in September 2016, followed by $450 million Fund II in February 2020.

Placement Agent: Capstone Partners

ACP III’s Outside Counsel: Kirkland & Ellis

Bakkt buys Apex Crypto for $200M

Deal Description: On Nov. 3, digital asset platform Bakkt Holdings Inc. announced the acquisition of Apex Crypto from Apex Fintech Solutions Inc. in a move that will bolster Bakkt’s cryptocurrency product offering and expand its footprint into new client verticals. Bakkt’s digital asset platform unlocks crypto and helps create connected experiences for its clients. The acquisition will expand the company’s crypto client base and give Bakkt access to financial institutions, fintechs, merchants and loyalty programs. The Apex Crypto platform has relationships with 30 fintech firms and 200 clients. The platform facilitates crypto investing for 30 tokens. The maximum purchase price of Apex Crypto will be $200 million with Bakkt initially paying $55 million in cash at the closing of the deal and up to $45 million in Bakkt stock tied to financial performance in the fourth quarter of 2022. Bakkt could pay an additional $100 million in Bakkt stock and seller notes, which will be determined by the financial performance of the target through 2025.

Expected Closing: H1 2023

Bakkt’s Outside Counsel: Wilson Sonsini Goodrich & Rosati led in part by partner Matt Lyons in Austin and including Austin March, Vickie Wang, Adam Enochs and Michael O’Brien

Infinitum Electric attracts another $30M from investors including Riverstone

Deal Description: Infinitum, the Austin creator of an sustainable motor, announced Nov. 8 an $30 million in additional growth capital from Riverstone Holdings Latin America, Alliance Resource Partners, Caterpillar Venture Capital and Cottonwood Technology Fund. The funds will be used to expedite commercial and industrial motor production by expanding and fully automating assembly at the company’s 65,000-square-foot facility in Mexico to meet an increase in demand. While the lifetime of traditional motors is typically 10 to 20 years, Infinitum said it goes beyond, delivering motors with increased efficiency and life expectancy. Infinitum motors are modular by design, making them easier to service, and allowing the housing, rotors, and stators to be reused multiple times. Electric motors consume more than half of the world’s electricity, with the general industry segment consuming 38 percent, and Infinitum claims its motor is 50 percent smaller and lighter, uses 66 percent less copper and no iron and consumes 10 percent less energy.

Riverstone’s Outside Counsel: Vinson & Elkins led by counsel Abby Branigan in Dallas and partner Dan Komarek and associate Elisie Lee in New York. Other team members included Jason McIntosh in Houston and Adi Louzon in New York.

Infinitum’s Outside Counsel: Wilson Sonsini including partner Brian Dillavou and associates Kimball Smith and Vickie Wang

Keurig Dr Pepper invests $50M in Non-Alcoholic Beer Athletic Brewing

Deal Description: Keurig Dr Pepper Inc. announced Nov. 9 it had taken a minority stake in Athletic Brewing Co., a non-alcoholic craft beer maker. The $50 million investment provides KDP with an equity stake comparable to other lead investors, including TRB Advisors and Alliance Consumer Growth. KDP will have a seat on the company’s board. Athletic Brewing was founded in 2017 by Bill Shufelt and John Walker and is a top-20 U.S. craft brewer, according to Nielsen. In 2022, Athletic Brewing was ranked as the 26th fastest-growing private company in America by Inc. Magazine and was also named to Time Magazine’s “100 Most Influential Companies” list. Non-alcoholic beer in the U.S. grew almost 20 percent in retail dollars over the past year, with the craft segment, where Athletic Brewing holds a 55 percent market share, far outpacing that. Athletic Brewing has more than 40 brews. Non-alcoholic beer accounts for 85 percent of sales in the fast-growing category of non-alcoholic beer, wine and spirits.

KDP’s In-House Counsel: Chief Legal Officer Anthony Shoemaker, Assistant General Counsel Mark Jackson and Corporate Counsel Jamie Frieson

KDP’s Outside Counsel: Skadden including M&A partners Maxim Mayer-Cesiano and Sean Doyle and associates Daniel Luks and Parker Kolodka, all of New York

Cobepa closes purchase of Ned Stevens

Deal Description: Cobepa announced Nov. 2 the acquisition of Ned Stevens from Avalt, a Boston-based family office. Terms weren’t disclosed, but Golub Capital and Audax Private Debt provided deal financing of $280 million. Golub Capital and Audax Private Debt. The private investment company completed the acquisition in partnership with Ned Stevens’ management team and the Jordan Co. but Avalt will remain a minority investor. Founded in 1965 and based in Fairfield, N.J., Ned Stevens is a provider of exterior residential services. The company, led by CEO Rob Rapuano, operates in 15 states across the country, primarily providing gutter cleaning as well as dryer vent cleaning, power washing and window cleaning. Ned Stevens serves more than 140,000 customers. The new investment by Cobepa will provide Ned Stevens with resources to continue its rapid growth. Cobepa has offices in New York, Brussels, and Munich.

Cobepa’s Outside Counsel: White & Case led by M&A partners Thierry Bosly (Brussels), Luke Laumann (New York) and Morgan Hollins (Houston) and including, from Texas, associate Yasin Khan (Houston)

Cobepa’s Financial Advisor: Jefferies

Ned Stevens’ Financial Advisor: Harris Williams (Brent Spiller, Zach Ledwith, Christian Brumbaugh and Ricko Eriksson) with support from Solomon Partners

Elevance Health to acquire BioPlus

Deal Description: Publicly traded Elevance Health announced Nov. 9 that it agreed with CarepathRx, a portfolio company of Nautic Partners, to acquire BioPlus. Terms weren’t disclosed. BioPlus provides a range of specialty pharmacy services for patients living with complex and chronic conditions, such as cancer, multiple sclerosis, hepatitis C, autoimmune diseases and rheumatology. The acquisition will help Elevance meet the specialty drug needs of its clients and customers with a whole-health approach, supported by integrated programs across Elevance and Carelon, Elevance’s healthcare services brand. Elevance said it look to build out BioPlus’ Centers of Excellence, which address therapeutic areas such as oncology and MS. After the acquisition closes, the pharmacy will operate as part of IngenioRx, Elevance’s pharmacy benefit manager within Carelon. BioPlus is not expected to have a material impact on earnings per share in 2023.

Expected Closing: H1 2023 

Elevance’s Outside Counsel: White & Case led by partners Michael Deyong and Daniel Dufner in New York but including associates Nate Bascom, Helen Xiang and Anil Tanyildiz in Houston

Alberta Investment Management expands ownership in Howard Energy

Deal Description: Alberta Investment Management Corp. announced Nov. 8 that it acquired Astatine Investment Partners’ stake in Howard Energy Partners. As a result, AIMCo holds a total ownership stake of 87 percent in HEP. Astatine was formerly called Alinda Capital Partners. HEP is a diversified energy platform business with midstream and downstream assets in the U.S., where long-term, fixed-fee contracts make up the majority of revenues. AIMCo acquired an initial 28 percent stake in HEP on behalf of certain clients in early 2017. Since that time, the investment has performed well and continues to align strongly with AIMCo Infrastructure’s energy transition strategies. HEP management and other minority investors will continue to hold a 13 percent ownership interest in the company.

AIMCo’s Outside Counsel: Kirkland & Ellis led by corporate partners Adam Larson and Cy Jones and associates Fernanda Langa and Jessica Stenglein and tax partner Mark Dundon

CAPITAL MARKETS/FINANCINGS

Accident Fund Insurance offers $350M in notes

Deal Description: Shearman & Sterling said Nov. 11 it advised Accident Fund Insurance Co. of America, a stock property and casualty insurance company, in connection with its $350 million offering of 8.500 percent surplus notes due 2032. J.P. Morgan was the sole book-running manager and initial purchaser. The net proceeds increased AFICA’s cash balance, which is intended to be used to finance a portion of the consideration payable in connection with AFICA’s acquisition of AmeriTrust Group Inc. and some of its holding companies and units from Miracle Nova (UK) Ltd. and its parent Fosun International Ltd., among other things. Shearman & Sterling also represented AFICA in connection with the AmeriTrust acquisition.

From Sherman: The team was led by Harald Halbhuber in New York but included Bill Nelson in Houston

Sunnova Energy issues $235.7M securitization

Deal Description: Sunnova Energy International Inc., a U.S. residential solar and energy storage service provider, announced the closing of its eighth solar loan securitization and its fourteenth residential solar securitization. The securitization includes $103.4 million in AA- sf/AA- rated 5.30 percent notes, $80.6 million in Asf/A- rated 5.60 percent notes and $51.7 million in BBB-sf/BBB- rated 6 percent notes with an anticipated repayment date of Nov. 22, 2027, and a final maturity of Nov. 22, 2049. The notes are backed by a portfolio of 8,870 solar rooftop systems distributed across more than 21 states and territories.

Sunnova’s Outside Counsel: Baker Botts including, from Houston, Travis Wofford, Thomas Blackwell and Luis Pacheco Garcia on corporate/finance in Houston; Michael Bresson on tax; Gail Stewart and Gabriela Alvarez on ERISA; and Danny David on advisory

EnerVest sells $183M in shares of Magnolia Oil & Gas

Deal Description: Magnolia Oil & Gas Corp. announced Nov. 3 it closed the previously announced underwritten block trade of 7.5 million shares of the company’s Class A common stock by affiliates of EnerVest Ltd., resulting in gross proceeds of $183 million. Magnolia didn’t sell any shares in the offering and didn’t receive any proceeds from the sale by the selling stockholders. In connection with the offering, the company intends to purchase from the selling stockholders 2 million shares of its Class B common stock at the same price, or $48.8 million. Following the closing of the offering and Class B common stock purchase, the selling stockholders will own nearly 8.3 million Class A and 21.8 million Class B shares of the company, or around 14 percent of the outstanding shares of the company.

Book-Running Manager: J.P. Morgan

J.P. Morgan’s Outside Counsel: Baker Botts including Doug Getten, Clint Rancher, Garrett Hughey, Parker Hinman, Chandler Block and Sarah Dyer in Houston; Jon Lobb in Houston (tax); Jason Loden in Dallas (employee benefits); and Luke Burns (global projects) and Scott Janoe (environmental) in Houston

Magnolia’a Outside Counsel: Kirkland & Ellis led by capital markets partners Matt Pacey, Michael Rigdon and Billy Vranish and associates Kristin Kluding, Robbie Dillard and Savannah Soto; and tax partners David Wheat and Ryan Phelps

Alto Ingredients inks $125M term loan facility from Orion Infrastructure Capital 

Deal Description: Alto Ingredients Inc., a producer and distributor of specialty alcohols and essential ingredients, announced Nov. 7 that it entered into a $125 million senior secured term loan facility with funds managed by Orion Infrastructure Capital. The term loan allows for periodic draws up to $100 million, with an additional $25 million available if the company satisfies conditions. The loan matures in six years and isn’t subject to scheduled amortization payments. The loan has a fixed annual interest rate of 10 percent with an original issue discount of 1.5 percent. In connection with the term loan, Alto will issue up to 1.6 million shares of common stock to OIC recently worth $6.64 million. Guggenheim Securities was placement agent and lead arranger and RBC Capital Markets was arranger for the senior secured term loan facility.

OIC’s Outside Counsel: Kirkland & Ellis led by debt finance partners Kelann Stirling, Mary Kogut, Erik Hepler and Leila Ravi and associates Paul Roberts and Rafa Breves de Toledo; corporate partners Jhett Nelson, Shubi Arora and Patrick Moneypenny and associate Robbie Dillard; capital markets partners Julian Seiguer and Noah Allen; and tax partners Mark Dundon and Courtney Loyack.

UPDATE

On Nov. 10 Katten reported six deals that the firm handled earlier this year led by its Dallas partners. Victor Zanetti advised on four transactions, all for undisclosed terms: Keeco on its merger with Centre Lane Partners-backed Hollander Sleep Products in September (supported by a $250 million senior secured ABL revolver facility by BMO); Trinity Hunt Partners-backed Improving Partners on its Oct. 4 acquisition of Bit Quill Technologies Inc.; Trinity Hunt’s Argano Holdings on its Oct. 7 acquisition of ITK Solutions Group; and Trinity Hunt’s Aperture on its Oct. 5 pickup of CAC Forensics. Mark Solomon led one – counseling Little Renegades on its Sept. 7 sale of all of its assets to Little Otter Inc. for an undisclosed sum – and Wade Glover worked on the other, advising Nazara Technologies FZ on its Aug. 29 acquisition of Wildworks Inc. for $10.4 million.

Claire Poole

Claire Poole is a senior writer at The Texas Lawbook, where she covers corporate transactions.

View Claire’s articles

Email Claire

©2023 The Texas Lawbook.

Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.

If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.

Primary Sidebar

Recent Stories

  • Texas Justices Mull TCPA’s Reach in Winstead Malpractice Suit
  • San Antonio City Attorney Andrew Segovia Aims to be ‘Client-Driven’
  • Austin Startup Battles Toy Giant Hasbro Over Water Guns
  • OAG Says Whistleblowers Knew $3.3M Settlement OK Could Take Years
  • CDT Roundup: 7 Deals, 7 Firms, 78 Lawyers, $14B

Footer

Who We Are

  • About Us
  • Our Team
  • Contact Us
  • Submit a News Tip

Stay Connected

  • Sign up for email updates
  • Article Submission Guidelines
  • Premium Subscriber Editorial Calendar

Our Partners

  • Houston Chronicle
  • Dallas Business Journal
The Texas Lawbook logo

P.O. Box 543455
Grand Prairie, TX 75054

214.232.6783

© Copyright 2023 The Texas Lawbook
The content on this website is protected under federal Copyright laws. Any use without the consent of The Texas Lawbook is prohibited.