Farol Asset Management Mergers and Acquisitions Summary

Private Equity Profile

Farol Asset Management’s most common sectors for investment are aerospace (15%) and apparel/textiles (15%). The Firm’s most common investment types include buyout (lbo, mbo, mbi) (43%) and secondary buyout (29%). In total, Farol Asset Management has invested in 5 US states and 2 different countries. Its largest (disclosed) acquisition occurred in 2015 when it acquired Digital River for $840M.

In the last 3 years, Farol Asset Management has exited 3 companies. The Firm’s most common exit type is trade sale (50%). Farol Asset Management’s largest (disclosed) exit occurred in 2019 when it sold AIM Aerospace for $510M.

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M&A Summary

  • M&A Total Activity11
    • M&A Buy Activity7
    • M&A Sell Activity4
  • Total Sectors Invested 7
  • Total Countries Invested 2
  • M&A Buy/Sell Connections 5
  • M&A Advisors 1

Farol Asset Management LP

,
www.farolam.com
robazeke@farol-group.com

Farol Asset Management is a private equity firm that looks to match institutional investors with direct investment opportunities. The Firm seeks to commit $5 to $30 million per transaction to support a variety of transaction situations and typically works with opportunities brought to it by private equity firms, fund-less sponsors, entrepreneurs and operating executives. Farol Asset Management was formed in 2011 and is headquartered in New York City.


Investment Criteria

Sectors of Interest: Aerospace, Automotive, Building Materials, Business Services, Chemicals, Communications, Consumer Products, Consumer Services, Defense, Digital Media, Distribution, E-Commerce, Education, Energy Services and Equipment, Financial Services, Franchising, Healthcare Services, Information Technology, Insurance, Internet Software and Services, Media, Medical Products, Metals/Mining, Packaging, Retail, Semiconductors, Software, Transportation

Target Transaction Types: Buyout (LBO, MBO, MBI), Consolidation, Growth Capital, Recapitalization, Special Situations/Distressed

Geographic Preferences: East US, Midwest US, South US, West US, Canada

Transaction Criteria Min Max
Target Revenue - -
Target EBITDA - -
Investment Size 5 30
Enterprise Value - -
values in millions of USD

M&A Summary

Buy vs Sell

Year ≤ '15 '16 '17 '18 '19 '20 T
Buy (0.2/yr) # 6 1 - - - - 7
vol $840M $220M $1.1B
Sell (0.6/yr) # 1 - - 2 1 - 4
vol $510M $510M
  11

Most Recent M&A

Company Date Value Type
AIM Aerospace, Inc. 2019-06-17 510M USD Add-on Acquisition
Renton, Washington · www.aimseattle.com
Airxcel, Inc. 2018-03-14 - Secondary Buyout
Wichita, Kansas · www.airxcel.com
Delphon Industries LLC 2018-01-11 - Secondary Buyout
Hayward, California · www.delphon.com
AIM Aerospace, Inc. 2016-02-03 220M USD Buyout (LBO, MBO, MBI)
Renton, Washington · www.aimseattle.com
Cushnie et Ochs 2015-11-23 - Buyout (LBO, MBO, MBI)
New York, New York · www.cushnieetochs.com
iBwave Solutions, Inc. 2015-04-02 - Add-on Acquisition
Montreal, Quebec · www.ibwave.com
Digital River, Inc. 2015-02-13 840M USD Going Private
Eden Praire, Minnesota · www.digitalriver.com
Airxcel, Inc. 2014-11-21 - Secondary Buyout
Wichita, Kansas · www.airxcel.com
24 Hour Fitness Worldwide, Inc. 2014-03-30 - Secondary Buyout
Carlsbad, California · www.24hourfitness.com
Delphon Industries LLC 2014-03-19 - Recapitalization
Hayward, California · www.delphon.com
View All >>

Portfolio M&A

Company Acquired Add-On/Sale Date #
Digital River, Inc. 2015-02-13 Digital River World Payments AB 2017-07-17 3
Eden Praire, Minnesota · www.digitalriver.com Stockholm, Sweden · www.drwp.io
Digital River, Inc. 2015-02-13 BlueHornet Networks, Inc. 2015-12-08 2
Eden Praire, Minnesota · www.digitalriver.com San Diego, California · www.bluehornet.com
Digital River, Inc. 2015-02-13 Beanstream Internet Commerce, Inc. 2015-09-17 1
Eden Praire, Minnesota · www.digitalriver.com Victoria, British Columbia · www.beanstream.com
24 Hour Fitness Worldwide, Inc. 2014-03-30 Bally Total Fitness - 32 fitness clubs 2014-12-19 1
Carlsbad, California · www.24hourfitness.com , United States

M&A by Sector

Sector Current # Value All-time # Value
Internet Software and Services 1 (33%) 840M (100%) 1 (14%) 840M (79%)
Aerospace - - 1 (14%) 220M (21%)
Apparel/Textiles 1 (33%) - 1 (14%) -
Consumer Services 1 (33%) - 1 (14%) -
Manufacturing - - 1 (14%) -
Packaging - - 1 (14%) -
Software - - 1 (14%) -
Total 3 $840M 7 $1.1B

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 3 (100%) 840M (100%) 6 (86%) 1.1B (100%)
  California 1 (33%) - 2 (29%) -
  Minnesota 1 (33%) 840M (100%) 1 (14%) 840M (79%)
  New York 1 (33%) - 1 (14%) -
  Washington - - 1 (14%) 220M (21%)
  Kansas - - 1 (14%) -
Canada - - 1 (14%) -
  Quebec - - 1 (14%) -
Total 3 $840M 7 $1.1B

Acquisitions by Deal Type

Type Current # Value All-time # Value
Buyout (LBO, MBO, MBI) 1 (33%) - 3 (43%) 220M (21%)
Secondary Buyout 1 (33%) - 2 (29%) -
Going Private 1 (33%) 840M (100%) 1 (14%) 840M (79%)
Recapitalization - - 1 (14%) -
Total 3 $840M 7 $1.1B

Exits by Deal Type

Type Total # Value
Trade Sale - Public Company 2 (50%) 510M (100%)
Secondary Sale 2 (50%) -
Total 4 $510M

Top M&A Advisors

Legal Deals
Milbank, Tweed, Hadley & McCloy LLP
 1

Deal Values

buy # Total
$100M to $1B 2 $1.1B
TOTAL $1.1B
Largest Digital River, Inc.
$840M (2015-02-13)
sell # Total
$100M to $1B 1 $510M
TOTAL $510M
Largest AIM Aerospace, Inc.
$510M (2019-06-17)

M&A Connections

Deals %
Acquired from
PE Firm(s)
100%
4 100%
Exited to
PE Firm(s)
50%
2 50%
Strategic(s)
50%
2 50%

Investor Summary

Size

Middle-Market

Established

2011

Specialist/Generalist

Generalist

Leadership

Robert Azeke

Founder

Douglas Kelly

Partner

Mergr

Product

Company

Legal