M&A Deal Summary

Apax and British Columbia Investment Management Acquire Authority Brands

On September 24, 2018, private equity firm Apax and asset manager British Columbia Investment Management acquired franchising company Authority Brands from PNC Riverarch Capital and Audax Private Debt

Acquisition Highlights
  • This is Apax’s 2nd and British Columbia Investment Management’s 1st transaction in the Franchising sector.
  • This is Apax’s 79th and British Columbia Investment Management’s 3rd transaction in the United States.
  • This is Apax’s 1st and British Columbia Investment Management’s 1st transaction in Maryland.

M&A Deal Summary

Date 2018-09-24
Target Authority Brands
Sector Franchising
Buyer(s) Apax
British Columbia Investment Management
Sellers(s) PNC Riverarch Capital
Audax Private Debt
Deal Type Secondary Buyout

Target

Authority Brands

Columbia, Maryland, United States
Authority Brands is a parent company of two home service franchisors, The Cleaning Authority and Homewatch CareGivers. Together, these brands provide recurring home services through more than 300 franchise locations in the U.S., Canada, and Latin America. Authority Brands was formed in 2017 and is based in Columbia, Maryland.

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Buyer(S) 2

Buyer

Apax

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1981
PE ASSETS 77.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Apax Partners is a mega-sized private equity investment group, operating across the United States, Europe, Israel and Asia. Broad industry sectors of interest include tech & telecom, media, retail & consumer, healthcare, financial services, and business services. Apax will consider both minority and majority investment positions and prefers companies with strong market positions and growth potential. The Firm generally pursues platform acquisitions valued from $1 to $5 billion. Apax Partners was formed in 1981 and is based in London.


DEAL STATS #
Overall 206 of 261
Sector (Franchising) 2 of 2
Type (Secondary Buyout) 42 of 66
State (Maryland) 1 of 1
Country (United States) 79 of 104
Year (2018) 11 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-09-11 Paycor

Cincinnati, Ohio, United States

Paycor delivers modern, intuitive recruiting, HR, and payroll solutions. The company partners with businesses to optimize the management of their most valuable assets. Paycor’s personalized support and user-friendly technology ensure that key business processes, including recruiting, onboarding, reporting, timekeeping, compliance, and payroll, run smoothly. Paycor’s people operations solutions are recommended by today’s most innovative brokers, bankers, and CPAs. Paycor was formed in 1990 and is based in Cincinnati, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-16 Fractal Analytics

Mumbai, India

Fractal Analytics is a provider of advanced analytics services and helps companies across the globe enhance profitability with the help of scientific decision-making. Fractal has deployed analytics to drive significant value for many Fortune 1000 companies in the areas of customer acquisition, retention, value enhancement, risk management, and marketing optimization. Fractal Analytics was founded in 2000 and is based in Mumbai, India.

Buy -
Buyer
DESCRIPTION

British Columbia Investment Management Corp. (BCI) is large asset manager focused on providing investment management services to British Columbia’s public sector. The Firm looks to invest in a range of asset categories and will consider opportunities globally. BCI's private equity practice was established in 1995 and seeks leverage buyout and growth equity opportunities that include market leading companies with tangible downside protection. Portfolio companies have a sustainable competitive advantage, offer value-added products and services, and are led by talented management teams. British Columbia Investment Management Corp. is headquartered in Victoria, British Columbia.


DEAL STATS #
Overall 8 of 19
Sector (Franchising) 1 of 1
Type (Secondary Buyout) 4 of 9
State (Maryland) 1 of 1
Country (United States) 3 of 7
Year (2018) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-06-07 GCT Global Container Terminals

Vancouver, British Columbia, Canada

GCT Global Container Terminals operates four container terminals strategically located in the Ports of Vancouver, New York and New Jersey. GCT Global Container Terminals is based in Vancouver, British Columbia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-05 BMS Group

London, United Kingdom

BMS Group is an independent and employee-owned, specialist (re)insurance broking group which provides clients with local service and global solutions. BMS Group was founded in 1980 and is based in London, United Kingdom.

Buy -

Seller(S) 2

SELLER

PNC Riverarch Capital

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2011
PE ASSETS 250M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

PNC Riverarch Capital is a middle-market private equity group that invests in privately-held companies headquartered throughout North America. The Group looks to commit $10 to $50 million to help fund recapitalizations, leveraged and management buyouts, corporate divestitures and growth financings. Target sectors include business and industrial services, specialized manufacturing, and value-added distribution. PNC Riverarch was formed in 2011 and is an affiliate of PNC Financial Services Group.


DEAL STATS #
Overall 8 of 18
Sector (Franchising) 1 of 1
Type (Secondary Buyout) 6 of 12
State (Maryland) 1 of 1
Country (United States) 8 of 16
Year (2018) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-30 Precision Aviation Group

Atlanta, Georgia, United States

Precision Aviation Group is a provider of products and value-added services to the worldwide aerospace and defense industry. With nine locations and more than 260,000-square-feet of sales and service facilities in the United States, Canada, Australia, Brazil, and Singapore, PAG uses its distinct business units and customer-focused business model to serve aviation customers through two business functions – Aviation Supply Chain, and its Inventory Supported Maintenance, Repair and Overhaul services. Precision Aviation Group is headquartered in Atlanta, Georgia.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-10-10 Sola Salon Studios

Lakewood, Colorado, United States

Sola Salon Studios provides a unique service to entrepreneurs, giving stylists and beauty professionals high-end, fully-equipped salon studios to start their own businesses without the administrative burden and risk associated with opening a retail storefront. Sola Salon Studios was established in 2004 and is based in Lakewood, Colorado.

Buy -
SELLER

Audax Private Debt

New York, New York, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 5.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Mezzanine is the mezzanine finance arm of the Audax Group. The Firm focuses on investing in both private and public, US-based middle market companies with a strong history of cash flows and consistent revenue growth. Audax will consider subordinated mezzanine debt commitments, second lien or junior secured debt, preferred stock and common stock. The Firm seeks to invest in companies valued between $10 and $60 million. Types of transaction include MBOs, LBOs, growth capital financings, acquisition financings, and recapitalizations.


DEAL STATS #
Overall 42 of 51
Sector (Franchising) 2 of 2
Type (Secondary Buyout) 18 of 24
State (Maryland) 3 of 3
Country (United States) 42 of 51
Year (2018) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-07 Alegeus

Waltham, Massachusetts, United States

Alegeus is a provider of benefits administration software, debit cards, and transaction processing solutions for consumer directed healthcare accounts, including flexible spending accounts, health reimbursement arrangements, and health savings accounts. Alegeus was formed in 2012 and is based in Waltham, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-27 CPS

Dublin, Ohio, United States

CPS is a provider of outsourced pharmacy services to hospitals and integrated health systems. CPS offers a suite of services, information technology and data informatics, including pharmacy management, technology-based tools and data analytics. CPS was founded in 1971 and is based in Dublin, Ohio.

Sell -