Bain Capital's $3.5B SoftwareOne Buyout Shows Life

Bain Capital's $3.5B SoftwareOne Buyout Shows Life

Private equity news the week of January 8th, 2024.

Insights

Chart of the Week: One of the key trends for private equity operating partners in 2024 involves extending the strategic planning horizon for portfolio companies from 3-5 years to 5-7 years, reflecting longer holding periods. In 2023, the average private equity holding period surpassed seven years. This longer horizon for exits enables more sustained and deeper value creation strategies, moving beyond quick wins. (Read More)

More Insights

  • Private Equity Operating Trends Report 2024 (Read More)
  • Turnaround Case Study: Dell Technologies (Read More)
  • The 100 Largest Private Equity Buyouts of All-Time (Read More)
  • Private Equity Firms Are Increasing Exposure to These Industries (Read More)
  • AI in Private Equity Report 2023 (Read More)

Deal News

Bain Capital is reportedly still in talks with SoftwareOne about a potential buyout. Previous reports suggested that the enterprise software maker was planning to reject Bain’s $3.5 billion offer, but a new statement issued by the company on Monday clarified that discussions are still ongoing. (Source)

Meanwhile, Bain Capital is preparing to exit Centrient Pharmaceuticals for as much as $1.1 billion. The company manufactures antibiotics and anti-fungal medicine. Bain acquired the company, formerly known as DSM Sinochem Pharmaceuticals, for approximately $575 million. (Source)

PE-backed retailer KnitWell Group — which includes brands such as Ann Taylor, LOFT, and Talbots — has acquired Chico’s, White House Black Market, and Soma. The newly-combined portfolio of brands generates approximately $6 billion in annual sales. The deal was orchestrated by Sycamore Partners which owns KnitWell Group. (Source)

KKR-backed BrightSpring Health Services is reviving its IPO plans. The company provides medical services for patients requiring specialized or chronic care. It generated $6.5 billion of revenue in the nine months ending September 30th. KKR acquired BrightSpring for $1.3 billion in 2019. (Source)

Industry News

Goldman Sachs’ Co-head of M&A Stephan Feldgoise expects private equity deal-making to rebound in 2024. He points out that take-privates are actually at record levels, a signal that buyout activity could pick-up in other areas of the market as well. (Bloomberg)

Blackstone has raised $1.3 billion from a group of high net worth individuals for a new fund. It’s the largest fund Blackstone has raised solely from individual investors and marks the potential for private equity to tap retail investors. (Financial Times)

Bloomberg predicts that UK retailer Pets at Home Group and French transportation operator Getlink SE will be Europe’s top M&A targets in 2024. (Bloomberg)

Jonathan Maxwell, founder of Sustainable Development Capital, notes a significant push by private equity firms into industrial-scale energy efficiency across manufacturing, supply chain, and other sectors. (Bloomberg)

Institutional investors are hiring more data experts in 2024, according to a survey of CIOs. Abu Dhabi’s sovereign wealth fund and a Denmark pension fund are recruiting data scientists and using their own AI models to optimize portfolio allocations. (Top 1000 Funds)

Brynwood Partners has raised $750 million for a new fund that will target carve-outs in the food and beverage space. “We don’t want distressed businesses. We want businesses that have been under-managed,” says the firm’s CEO Hendrik Hartong III. (Just Food)

KKR Co-founder Henry Kravis gave an interview with Goldman Sachs about his career and thoughts on the market. When asked what the single greatest lesson is that he’s learned from private equity investing through several market cycles: “Any fool can make an investment. That's easy. Just pay enough. The harder part is what do you do to create value? And that's our focus, like a laser.” Kravis also said that if he was 32 years-old again (the age when he co-founded KKR), he would acquire a small company and build it up rather than start a fund, because there are “too many” funds today. (Goldman Sachs)

Operating News

Beth Clymer has been named President of Finance, Strategy, & Administration for apparel brand Canada Goose (backed by Bain Capital). Previously, she was CFO for Jobcase and an Operating Partner at Bain Capital. (Fashion United)

Michael Lang has been named Executive Chairman of Vice Media (backed by Fortress Investment Group). Previously, he was CEO of Miramax and an Operating Partner at Fortress. (Deadline)

Chris Mele from Software Pricing Partners says PE-owned software companies often miss the mark pricing SaaS solutions. He suggests financial sponsors work with portfolio companies to treat pricing as a process rather than a one-time event. (Forbes)

PE-backed CEO Joel Thiesen outlines crucial questions that executives of portfolio companies should ask their financial sponsors upon acquisition by private equity. (Chief Executive)

Scott Engler, who runs a training program for PE-backed executives, says CFOs will be under pressure this year to help financial sponsors realize a path to exiting portfolio companies. (LinkedIn)

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