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FinanceTerm Sheet

Term Sheet — Friday, August 29

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
Down Arrow Button Icon
August 29, 2014, 10:07 AM ET

Random Ramblings

Some of get-away day notes…

• Shopping cart: Yesterday we noted how a mystery private equity firm was helping to finance the Market Basket transaction, in which Arthur T. Demoulas is buying the 51% stake he didn’t already own from estranged cousin Arthur S. Demoulas. Later, we reported on the website that the firm was Blackstone Group, which also had been an advisor on the deal (Blackstone’s advisory group also once worked on the SuperValu sale to Albertsons/Cerberus).

For more on the situation – which will become a business school case study staple – you can go here for video of my head talking on local television.

• Best week ever: Seed-stage venture firm Floodgate has closed its fifth fund with nearly $76 million in capital commitments, which is its third straight fund at the same size. Actually, just about everything is the same – LPs, investment strategy, GPs (Mike Maples and Ann Miura-Ko), etc. Pretty big week for Floodgate, given that it also was an early backer in Twitch (back when it was still known as Justin.tv).

• Quick switch: Eric Darwin has joined LinkedIn as a director of corporate development and M&A. This comes just seven months after he left a corp dev job with Salesforce to join DFJ Growth as an investment professional.

• Update: We recently mentioned that the three apparent finalists for the U.S. CTO job were individuals who "most recently were in the operating space (current or former at Google, LinkedIn and Twitter). One of those folks, however, did do a brief quasi-VC role a couple years back.”

Bloomberg yesterday broke news that one of the three is current Google exec Megan Smith (which was the Googler I was thinking of, but hadn’t been able to second-source). Then we reported that the Twitter reference is to Alex Macgillivray, Twitter’s former general counsel and also an ex-Google exec. We’ll keep the third one blind over the weekend, but will give one more hint – it’s a man, and his most recent job was with a company that was acquired within the past 16 months. That’s four clues, which I think should be enough.

• Getting to it: Yes, I'm aware that the CEO of a large PE-backed company was filmed kicking a cowering puppy in an elevator (yes, it's exactly as bad as it sounds). My colleague Daniel Roberts wrote about it here. I'm also aware that there are many who feel he should lose his job, or at least receive harsher punishment than being put on corporate "probation" (as if there is really any chance of him kicking a puppy on camera again). Let's discuss next week but, as always, I'm interested in your thoughts in the interim...

• Calendar: The Carlyle Group is expected to be in a Boston courthouse next week, arguing that plaintiffs in the giant bid-rigging case do not deserve "class" status. If Carlyle wins, then its potential liabilities -- or amount it would take to settle -- goes down dramatically. If it loses, then it's theoretically on the hook for upwards of $36 billion (yes, worst-case scenario). Worth noting that all of Carlyle's co-defendants settled already, which suggests they didn't have much hope for winning this procedural battle.

• Have a great long weekend. See you back here on Tuesday.

THE BIG DEAL

• JustFab Inc., an El Segundo, Calif.-based fashion e-commerce subscription company, has raised $85 million in Series D funding at a valuation north of $1 billion, as first reported by PandoDaily. Passport Special Opportunity Fund led the round, and was joined by return backers like Matrix Partners and Technology Crossover Ventures. www.justfab.com

VENTURE CAPITAL DEALS

• Ifttt Inc., a San Francisco-based application that creates connections between other web apps, has raised $30 million in Series B funding. Norwest Venture Partners led the round, and was joined by return backer Andreessen Horowitz. Dow Jones puts the valuation at north of $200 million. www.ifttt.com

• Attero, an India-based electronic asset management company, has raised $15 million in Series C funding led by Forum Synergies (India). Existing shareholders include Draper Fisher Jurvetson, Granite Hill India Opportunity Ventures and Kalaari Capital. www.forumsynergies.com

• Enevo, a Finland-based developer of a sensor-based waste collection system, has raised $8 million in new VC funding. Backers include Earlybird, Lifeline Ventures, Finnish Industry Investment, Draper Associates and Risto Siilasmaa, among others. www.enevo.com

• Green & Grow Inc., an Austin, Texas-based developer of biologically-derived agricultural products, has raised $6 million in Series B funding led by Otter Capital. www.greenandgrow.com

• Mizzen+Main, a Dallas-based shirtmaker and haberdasher, has raised $1.2 million in Series A funding. David Schottenstein (founder of Astor & Black) led the round, and was joined by VegasTechFund and several undisclosed hedge funds and individual angels. www.MizzenandMain.com  

• Nexenta Inc., a Santa Clara, Calif.-based provider of data storage software, has raised an undisclosed amount of VC funding from Dell Ventures. The company last year raised $24 million in Series D funding from Four Rivers Group, Menlo Ventures, TransLink Capital, Javelin Ventures, Sierra Ventures, Razor’s Edge and West Summit Capital. www.nexenta.com

PRIVATE EQUITY DEALS

• 3i Group has agreed to acquire A&A Manufacturing, a UK–based maker of protective covers and related equipment, from Audax Group. The deal gives A&A an enterprise value of $202.5 million, with 3i investing $110 million. www.aaman.com

• The Riverside Company has acquired Uinta Brewing Co., a Salt Lake City–based craft brewer. No financial terms were disclosed. www.uintabrewing.com

IPOs

• Great Western Bank, a Sioux Falls, S.D.-based community bank, has filed for a $100 million IPO. It plans to trade on the NYSE under ticker symbol GWB, with Deutsche Bank Securities and BofA Merrill Lynch serving as lead underwriters. www.greatwesternbank.com

EXITS

• 3D Systems (NYSE: DDD) has acquired Simbionix, a Cleveland-based provider of 3D virtual reality surgical simulation and training solutions, for $120 million in cash. Simbionix had raised more than $10 million in VC funding from such firms as Early Stage Partners and River Cities Capital Funds. www.3dsystems.com

• Covidien PLC (NYSE: COV) has acquired Sapheon Inc., a Morrisville, N.C.–based developer of venous disease treatments. No financial terms were disclosed. Sellers include Main Line Equity Partners. www.sapheoninc.com

• Friedman Fleischer & Lowe has hired Bank of America and Harris Williams & Co. to find a buyer for Transtar Industries Inc., a Walton Hills, Ohio –based distributor of replacement car parts, according to Reuters. The deal could be valued at upwards of $1 billion (including debt). Read more. 

• Harvest Partners has hired Harris Williams & Co. to explore strategic options, including a sale for Packer Sanitation Services Inc., a Kieler, Wisc.-based provider of cleaning and night sanitation services to the food industry, according to peHUB. Read more. 

OTHER DEALS

• Johnson & Johnson (NYSE: JNJ) is seeking a buyer for Cordis, a medical device unit whose products include stents and catheters, according to the WSJ. The deal could be valued at between $1.5 billion and $2 billion. Read more. 

FIRMS & FUNDS

• Tenaya Capital, a bi-coastal venture capital firm, is raising up to $450 million for its latest fund, according to a regulatory filing. It currently is investing out of a $372 million fund raised in 2011. www.tenayacapital.com

MOVING IN, UP, ON & OUT

• Patrick Boyce has left Dallas-based Highland Capital Management, the $18.7 billion investment firm where he led private equity investing, according to Bloomberg. Boyce reportedly “is relocating to Hawaii with his family,” but will continue as a board member with select HCM portfolio companies. Read more. 

• Bethany Woods has joined St. Louis-based private equity firm Harbour Group as director of corporate development. She previously spent four years as a VP of private equity funds-of-funds at Northern Trust. www.harbourgroup.com

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By Dan Primack
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