Private equity firms are increasingly focused on add-on acquisitions, as we previously reported.
These investments play a crucial role in fueling growth to existing platform investments and employing a valuation multiple arbitrage strategy.
Analyzing add-on acquisitions data from our M&A Research Database at the 4-digit NAICS code level, we pinpointed the top 10 industries currently attracting the most interest from private equity firms.
|
Rank |
NAICS Code |
Industry |
|
1 |
5112 |
Software |
|
2 |
5416 |
Management, Scientific, and Technical Consulting Services |
|
3 |
5413 |
Architectural, Engineering, & Related Services |
|
4 |
3254 |
Pharmaceutical and Medicine Manufacturing |
|
5 |
5239 |
Financial Investment Activities |
|
6 |
4246 |
Chemicals and Allied Products |
|
7 |
3334 |
HVAC and Commercial Refrigeration Equipment Manufacturing |
|
8 |
5417 |
Scientific Research & Development |
|
9 |
3313 |
Alumina and Aluminum Production and Processing |
|
10 |
4532 |
Office Supplies, Stationery, and Gift Stores |
HgCapital's portfolio company Ncontracts (Brentwood, TN) acquired Venminder (Elizabethtown, KY) as an add-on investment.
Venminder is a provider of a unified Software-as-a-Service (SaaS) platform for third-party risk management.
Mountaingate Capital‘s portfolio company Bold Orange (Minneapolis, MN) acquired Journey 121 (Minneapolis, MN) as an add-on investment.
Journey 121 is a software as a service (SaaS) technology platform focused on supporting multi-location brands to deliver turnkey, personalized marketing programs.
Brightstar Capital Partners‘s portfolio company Astrion (Huntsville, AL) acquired Axient (Huntsville, AL) as an add-on investment.
Axient is a provider of highly technical engineering and management support services.
MVP Capital Partners‘s portfolio company ANI Pharmaceuticals (Baudette, MN) acquired Alimera Sciences (Atlanta, GA) as an add-on investment.
Alimera Sciences is a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic Pharmaceuticals.
Summit Partners's portfolio company Earned Wealth (New York, NY) acquired Thomas Doll (Walnut Creek, CA) as an add-on investment.
Thomas Doll provides physicians and dentists with full-circle financial care, including wealth management, retirement planning, tax planning and consulting services, including payroll expertise, practice creation, succession consulting, and personal consulting.
Sterling Group‘s portfolio company White Cap (Norcross, GA) acquired Dayton Superior (Miamisburg, OH) as an add-on investment.
Dayton is a provider of highly engineered accessories, chemicals and forming solutions within the concrete construction industry.
Kian Capital Partners‘s portfolio company Team Air Distributing (Nashville, TN) acquired Best Choice Supply (Lexington, KY) as an add-on investment.
Best Choice Supply is a HVAC wholesale distributor.
LongueVue Capital‘s portfolio company Pinnacle Clinical Research (San Antonio, TX) acquired Dallas Research Institute (Dallas, TX) as an add-on investment.
Dallas Research Institute is focused on executing complex metabolic clinical trials in underserved communities supporting underrepresented patient populations.
American Securities‘s portfolio company Vibrantz Technologies (Houston, TX) acquired Micro Abrasives Corporation (Westfield, MA) as an add-on investment.
Micro Abrasives is a manufacturer of specialty alumina.
JAL Equity‘s portfolio company Marketing.com (Plantation, FL) acquired American Stationery (Peru, IN) as an add-on investment.
American Stationery offers personalized stationery, personalized address labels and printed products.