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Submit Your Q3 2014 Deals Now

ACG Philadelphia members with closed Q2 2014 deals can now respond to the DealWire survey anytime during the quarter. Click Here for the DealWire Survey

Please note that you can now re-enter the survey to update your responses up until about a week after the quarter closes exact date TBD.

You can also reply to the DealWire survey multiple times throughout the quarter, instead of waiting until the quarter closes. Describe one transaction per box, use as many or as few as you need.


Note:
only deals LED BY YOUR LOCAL OFFICE and CLOSED DURING April 1 - June 30, 2014 are eligible for submission.

Members on the Move - we'll include announcements relevant to the deal community such as new hires or promotions within your M&A group.
About DealWire
ACG Philadelphia's quarterly M&A report, captures deal and transactional activities from around the region based on ACG Philadelphia members' and other dealmakers (investment bankers, private equity professionals, professional service firms and corporate executives).

Click here for Historical Featured Deal Summaries

Questions about DealWire Philadelphia should be directed to Jen Simons at jsimons@acg.org.
 
 
  
 

 

      DealWire Philadelphia, Q2 2014                  Volume X, Issue II

2014 Nearing Recent Record Levels in Q2
- commentary by Mark McGuriman
CBIZ MHM, LLC & ACG Marketing Committee Member

  

Second Quarter Deal Volume Strong 
Flat v. Q1-2014 but Outpacing 2013


All trends are pointing to a record-setting M&A and transaction environment for 2014, despite the second quarter lagging slightly in both deal volume and value as compared to the robust first quarter of 2014.

An abundance of inexpensive capital, coupled with aggressive M&A growth strategies being employed by corporate buyers, are key factors driving a continued favorable market for sellers and, ultimately, an increase in deal activity.

From an industry standpoint, quarter-to-quarter, the region’s transaction activity has been dominated by the Info Tech and Financial sectors, two critical areas of the local economy.

The balance of 2014 shows promising signs for sustained deal activity, with buyers leveraging the abundance of available capital to provide sellers with compelling valuations and deal terms. 

 

Second Quarter Transaction Volume & Value


The second quarter ended June 30, 2014 (Q2-2014) shows a slight decline (2%) in deal volume from Q1-2014 with total transactions decreasing from 429 in Q1-2014 to a very robust 420 deals in Q2-2014. At 420 transactions, Q2-2014 significantly out-paced Q2-2013’s deal volume of 338 transactions by 24%.

Current volume of transactions has been at or near new highs for the last 4 quarters. Q2-2014 deal volume just missed the Q4-2013 26-quarter high of 440 transactions but was higher than Q3-2013’s 396 transactions, the prior high. At 420 deals, Q2-2014 volume was also higher than the prior highs of 353 in Q4-2012 and 314 in Q2-2008.

 


 

Scroll down to read more about our 28 member firms' Q2 2014 transactions as well as their new hires and promotions.

Source: S&P Capital IQ

Click Here to Read the Complete Q2 2014 Report including Regional Deal Activity and Industry Sector Analysis

AMETEK, Inc.  

Ametek, Inc. (Bill Eginton, Paul McLaughlin, Paty Laurent, Michael Russin and Joseph Toto) completed one acquisition in Q2. 
See list of deals

Ballard Spahr LLP 

Ballard Spahr LLP (Craig Circosta, Brian Doerner, Carl Fridy, Anuj Goswami, Amit Kakkar, Robert Krauss, Steven Miller and Matt Potalivo members) represented its clients on 12 completed transactions and hired an experienced corporate and securities attorney in Q2. 
See list of deals and new hires

Blank Rome LLP  

Blank Rome LLP (Steven Dubow, Andrew Hennessy, Mathew Rotenberg and Alex Tablin-Wolf members) served as legal advisor for its clients on 8 closed transactions in Q2. 
See list of deals

Boathouse Capital  

Boathouse Capital (Kurt Aplan, Bill Dyer, Steve Gord, Ken Jones, Chong Moua, Andrew Olsen and Colin Raws members) led one ESOP-backed acquisition in Q2. The firm also added a new employee and promoted another. 
See list of deals and new hires and promotions

Boenning & Scattergood, Inc. 

Boenning & Scattergood, Inc. (Alex Bondroff, Charles Hull and Jim McCormick members) provided M&A advisory to a client on one closed transaction in Q2.  
See list of deals

CBIZ MHM, LLC 

CBIZ MHM, LLC (John Lenzi, Mark McGuriman, Sean O'Reilly, David Stagliano, Stefania Veneziale and Gregory Watts members) provided services for 3 closed M&A transactions in Q2. 
See list of deals

Cozen O'Connor 

Cozen O'Connor (Sandra Bloch, Larry Laubach, Anne Madonia and Michael Zanan members) served legal counsel on one completed transaction and hired a new attorney experienced in advising on private equity deals in Q2. 
See list of deals and new hires

Curtis Financial Group, LLC  

Curtis Financial Group, LLC (Jason Cunningham, Steve Economou, Ryan Hurst and Kevin Rudd members) provided M&A advisory to its clients on two completed transactions in Q2. 
See list of deals

Drinker Biddle & Reath LLP 

Drinker Biddle & Reath LLP (Elizabeth Babson, Joshua Bernstein, Stephen Burdumy, William Clark, David Denious, Neil Haimm, Laura Householder, Daniel Krane, Matthew Meyers, Lauren Platko, Douglas Raymond and John Talbot members) represented its clients on 21 closed transactions in Q2.  
See list of deals

Duane Morris LLP 

Duane Morris LLP (Peter Byrne, Heather Carmody, Maria Rose Granholm, Richard Jaffe, Darrick Mix, Kathleen Shay, Richard Silfen, Thomas Spencer, Barry Steinman and David Toner members) served as legal counsel to its clients on 13 closed transactions in Q2. 
See list of deals

Eureka Growth Capital 

Eureka Growth Capital (Thomas Calibeo, Jonathan Chou, Christopher Hanssens, Christian Miller, Lisa Millhauser, Tassie Oswald and Brendan Stancato members) closed one transaction and hired a new employee in Q2.  
See list of deals and new hires

Fairmount Partners 

Fairmount Partners (Charles Eckert, Bill Frame and Richard Wainwright members) provided M&A advisory for its clients on 3 closed deals in Q2.   The firm also hired an experienced middle-market investment banker. 
See list of deals and new hires

Falcon Capital Partners, LLC 

Falcon Capital Partners, LLC (Ted Stack member) provided M&A services on three completed transactions and hired three new employees in Q2.  
See list of deals and new hires

Fesnak, LLP 

Fesnak, LLP (Robert Fesnak, TJ Haas, Thomas Hamill, Lisa McLemore, Joseph Pellerite and Michael Verrill members) provided services to a PE firm on one completed transaction in Q2.  
See list of deals

Fox Rothschild LLP 

Fox Rothschild LLP (Terrence Kerwin and Sandra Romaszewski members provided legal services for a client's M&A transactionin Q2. 
See list of deals

Griffin Financial Group, LLC 

Griffin Financial Group, LLC (Glenn Bernabeo and John Lee members) provided investment banking expertise on 7 completed transactions in Q2.   
See list of deals

Janney Montgomery Scott LLC 

Janney Montgomery Scott LLC (Joseph Culley, Steven Higgins, Benjamin McKean, James McNaughton, Joseph Reichert and Brian Van Der Waag members) provided investment banking advisory for its clients on closed 26 transactions in Q2. 
See list of deals

LLR Partners  

LLR Partners (Christian Bullitt, Vignesh Chandramouli, Kristy DelMuto, Mitchell Hollin, Chris Mahatma, Todd Morrissey, Zachary Sigal and David Steines members) completed 2 deals in Q2. 
See list of deals

McCausland Keen & Buckman 

McCausland Keen & Buckman (Robert Mascioli member) provided legal counsel for its clients closing 5 transactions in Q2.   
See list of deals

Morgan, Lewis & Bockius LLP  

Morgan, Lewis & Bockius LLP (Tracy Dowling, David Gerson, Barbara Shander and Kevin Shmelzer members) represented its clients closing 12 transactions in Q2. 
See list of deals

NewSpring Capital  

NewSpring Capital (Gregory Barger, Michael DiPiano, Kara Herrick, Steven Hobman, Skip Maner, Brian Murphy, Andrew Panzo, Anne Vazquez and Adam Veverka members) completed one transaction and added a general partner in Q2. 
See list of deals and new hires

Pine Hill Group 

Pine Hill Group (Jerry Buckley, Michael Estadt, Chuck Jacobson, Stephen Nardi, Keith Ruck and Barry Smith members) provided due diligence services to its clients on 3 closed transactions in Q2. 
See list of deals

Private Capital Research LLC 

Private Capital Research LLC (Graeme Frazier and Joseph Morris members) completed one transaction in Q2. 
See list of deals

Spring Capital Partners  

Spring Capital Partners (Michael Donoghue and Brian McDaid members) closed one transaction in Q2. 
See list of deals

SSG Capital Advisors, LLC  

SSG Capital Advisors, LLC (Mark Chesen, Michael Goodman, Michael Gorman, Matthew Karlson, Terry Kohler and J. Scott Victor members) acted as investment banker on closed 2 transactions in Q2. 
See list of deals

Stifel 

Stifel (Lauren Harrington, John Honovich, Robert Kent, David Lazar and Bharat Ramprasad members) provided investment banking services to its clients on 8 completed transactions in Q2. 
See list of deals

Stradley Ronon  

Stradley Ronon (Michael Bonner, Christopher Rosenbleeth and Todd Vanett members) served as legal counsel to its clients on 3 completed transactions in Q2. 
See list of deals

Triumph Group, Inc. 

Triumph Group, Inc. (Timothy Wilkin member) closed one deal in Q2. 
See list of deals
  
Q2 2014 Featured Deal

For a listing of all historical featured deals please go to the LIBRARY tab.

Showcasing ACG Member Deals
 




 

Featured Deal:

Ametek Acquisition of Zygo Corporation


 

Based on a discussion with: Kevin Coleman, Vice President of Investor Relations at Ametek. The interview was led by Kristy DelMuto of LLR Partners and the ACG marketing committee.

Synopsis

In June 2014, AMETEK, Inc. (NYSE: AME) announced the closing of the acquisition of Zygo Corporation (NASDAQ: ZIGO) for $19.25 per share in cash per fully diluted common share, or approximately $280 million net of cash acquired. The completion of the transaction follows approval from Zygo shareholders and the receipt of all regulatory approvals.

AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with 2013 sales of $3.6 billion. Zygo joins AMETEK’s Ultra Precision Technologies Division within its Electronic Instruments Group. Zygo provides optical metrology solutions, high precision optics and optical assemblies for use in a wide range of scientific, industrial and medical applications. For the calendar year ended December 31, 2013, Zygo had sales of approximately $162 million.

A Perfect Fit
The Zygo acquisition highlights several components of AMETEK’s corporate growth plan, which consists of four main strategies: Operational Excellence, Strategic Acquisitions, Global & Market Expansion and New Products. In the last 12 months alone, AMETEK has made five new acquisitions, acquiring in excess of $425 million in annual revenue. As part of this acquisition strategy, AMETEK aims to complement the organic growth of its niche, differentiated businesses by making a number of small to mid-sized acquisitions that enhance product offerings in core markets, as well as accelerate expansion into adjacent markets.
 
With the integration of Zygo’s "non-contact" metrology solutions, which use laser-based technology to collect highly precise measurements without touching an object, AMETEK now offers customers a full range of metrology solutions. AMETEK’s existing offering uses "contact" technology, i.e. an object must be touched to obtain a measurement. Both solutions are used in high end applications from optical devices to telecommunications to semiconductors.
 
"Zygo is very close to the core of what we do in metrology but also expands the market opportunities for us with customers who require the use of non-contact technology for their application," said Kevin Coleman, Vice President of Investor Relations at AMETEK. "It was a very standard transaction for us, with all the hallmarks of a typical AMETEK acquisition. Moving forward, we’ll look to drive value for Zygo by leveraging our global manufacturing and material sourcing capabilities as well as our global sales and distribution network."

Zygo will retain its brands and manufacturing presence in Middlefield, CT, but can now leverage AMETEK’s global infrastructure, capitalizing on capabilities such as a global sales function, robust distribution channels and streamlined sourcing of raw materials.

Patience is a Virtue
AMETEK had followed Zygo for many years. With its formal acquisition strategy dating back to the late 90s, AMETEK had explored possible synergies with Zygo in the past, but it wasn’t until recently that Zygo’s Board decided to look at strategic alternatives to growth. Knowing AMETEK was an interested and logical buyer; the process was already in motion. Kevin’s advice? Have patience when it comes to acquisitions. Despite knowing and expressing interest over a long period, the time wasn’t right for Zygo until now. Take a long term view and stay true to your objectives and strategy until it’s the right time for all parties.
 
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