Weekly Digest March 16

Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary

Clearlake Capital Group to acquire Intertape Polymer Group

Clearlake Capital Group, L.P. ("Clearlake"), a private equity firm, announced the acquisition of Intertape Polymer Group ("IPG") (TSX: ITP), a leader in the development, manufacturing, and sale of a variety of paper and film-based pressure-sensitive and water-activated tapes, stretch and shrink films, protective packaging, woven and non-woven products and packaging machinery for industrial and retail use, for $2.6 billion.

"We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems. Clearlake provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability, and market expansion…We have built a scaled business serving a diverse set of growing end markets, and have seen particularly strong growth in our large e-commerce segment. Clearlake's investment reflects its confidence in our people, processes, and strategy, and this transaction will advance our vision of becoming a global leader in packaging and protective solutions. We believe this all-cash transaction represents an attractive return and provides certainty for our shareholder base." - Greg Yull, President and CEO at IPG.

AZZ to acquire Precoat Metals from Sequa Corporation

AZZ, Inc. (NYSE: AZZ), a provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and highly engineered services for maintaining and building critical infrastructure, announced the acquisition of Sequa's Precoat Metals business division ("Precoat"), for $1.28 billion.

"We are pleased to acquire North America's largest independent provider of metal coil coatings and related services. Through this acquisition, AZZ significantly broadens our metal coatings offering, creating unrivaled scale and breadth of solutions in both the prepainted and post-fabrication coatings markets. We believe the coil coating market will provide sustainable future growth for AZZ, and we intend to provide Precoat with the financial resources to expand and further invest in commercial and operational excellence. This acquisition is consistent with our previously communicated strategy prioritizing North American coatings targets with strong strategic fit that are accretive within the first year of operation, and it is a testament to our commitment to drive profitable growth. This acquisition represents a continued transition of AZZ from a diverse holding company to a focused provider of coating and galvanizing services for critical applications. We welcome Precoat's talented employees and management team to AZZ and look forward to a seamless integration with uninterrupted industry-leading service to their customers." – Tom Ferguson, CEO at AZZ

Vectrus and Vertex Company merge

Vectrus, Inc. (NYSE: VEC), a provider of base operations support, supply chain, and logistics in the A&D industry, announce a merger with The Vertex Company, an engineering services company. The combined company will offer significantly expanded technology and service capabilities, delivering a comprehensive suite of integrated solutions and critical service offerings to support national security readiness and modernization initiatives worldwide. As U.S. and allied government clients move toward a converged environment, the combined company will be well-positioned to meet the mission-essential requirements of its clients while delivering cost savings, increased security and resiliency, and more strategic use of resources.

"The combination of Vectrus and Vertex will create a stronger, more diversified company and one of the leading providers of critical mission solutions and support to defense clients globally…This highly strategic transaction builds on both companies' accomplishments over the last several years and significantly accelerates our ability to deliver converged solutions while providing enhanced value for our shareholders and other stakeholders." - Chuck Prow, CEO at Vectrus.

"Vertex and Vectrus share mission-oriented foundations and cultural alignment. By joining forces with Vectrus, we will be better positioned to help the Department of Defense and government agencies achieve their objectives, and in the process, create a stronger organization with greater career development and advancement opportunities for our employees. On behalf of the Vertex team, we remain dedicated to our client's missions, and we are very pleased to enter this new phase of growth as a combined company." - Ed Boyington, President and CEO at Vertex

Carlyle to acquire Dainese Group

Carlyle (NASDAQ: C.G.), a global investment firm, announced the acquisition of Dainese Group, a designer and manufacturer of protective equipment for motorcycling and dynamic sports, from Investcorp and Lino Dainese for €630 million.
"In Carlyle, I am delighted that we have found a partner that understands and appreciates the core values and vision for growth of the Group. With their track record and expertise in this sector, I am confident that we have found the ideal partner to help achieve our ambitious goals for growth and further internationalization." - Massimiliano Caraffa, Managing Director leading Consumer & Retail at the Carlyle Europe Partners advisory team

TransDigm to acquire DART Aerospace from Greenbriar Equity Group

TransDigm Group Incorporated (NYSE: TDG), a designer, producer, and supplier of highly engineered aircraft components for use on commercial and military aircrafts, announced the acquisition of Dart Aerospace, a provider of highly engineered, unique helicopter mission equipment solutions that predominantly service civilian aircrafts and portfolio company of Greenbriar Equity Group, L.P. and First Aviation Services Inc. for approximately $360 million.

"We are excited about the acquisition of DART Aerospace. DART is an industry leader in helicopter mission equipment, and its unique helicopter solutions fit well with our proprietary and aftermarket-focused value generation strategy. The company has established positions on a diverse range of new and existing rotary-wing platforms, strong aftermarket content and an outstanding reputation with its customers. As with all TransDigm acquisitions, we expect the DART acquisition to create equity value in-line with our long-term private equity-like return objectives." – Kevin Stein, TransDigm's President and CEO.

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