American Securities buys SimonMed, Crestview backs AutoLenders, Carlyle, H&F make billions off of PPD

American Securities is buying SimonMe and Crestview Partners has acquired a majority stake in AutoLenders.

Happy Monday!

You heard it here first: American Securities is taking a piece of the radiology market, while Crestview Partners has made a sizable bet in the auto-dealership universe. Elsewhere, we’ve got more on Hellman & Friedman and Carlyle’s sale of PPD, which generated billions of dollars in profits for both private equity firms.

Here’s the deal: American Securities is buying SimonMed in a deal valuing the founder-run radiology and imaging company at around $600 million, according to people familiar with the pending transaction. The company hit the auction block in January via Jefferies. Read more here.

As SimonMed locks down a buyer, another radiology platform that came to market around that time has yet to trade hands. That is, Columbus, Ohio-headquartered LucidHealth, a portfolio company of Denver’s Excellere Partners. The business is in the market via William Blair, as PE Hub previously reported.

Here any recent updates on the latter? Hit me up.

Perseverance: Crestview Partners has acquired a majority stake in AutoLenders, an omni-channel buyer and seller of used vehicles aiming to drive growth through its dealership showrooms.

Crestview explored buying the company in 2018 but AutoLenders CEO Mike Wimmer wasn’t ready to sell just yet, the firm’s Dan Kilpatrick told PE Hub.
Interestingly, the dealership model isn’t new to the New York PE firm.

AutoLenders aligns with the investment strategy Crestview pursued at another portfolio company called Camping World Holdings, a multi-store RV retailer and dealership. “We’ve seen how powerful and accretive it is to grow dealerships with Camping World,” Kilpatrick told PE Hub.

Read Karishma’s story for more detail.

Billions: There’s a long history behind a nearly $21 billion deal that took place last week, readers. Of course, I’m talking about Thermo Fisher’s acquisition of PPD, the contract research organization helping pharma and biotech firms worldwide bring a massive number of innovative drugs to market.

Hellman & Friedman and Carlyle first took PPD private in 2011, re-invested in 2017 through newer funds, and ultimately, took the company public in 2020. With last week’s sale to Thermo, the firms are finally nearing the end of a what has been a long, and very successful investment.

H&F will produce a 5.5x blended multiple of its full investment of $1.7 billion, generating a nearly $8 billion profit on PPD, whereas Carlyle will score a more than 3x return, having invested $2 billion combined, sources with knowledge of the transaction told PE Hub.

While the decade-long investors opted to reinvest through a cross-fund strategy in this case, the long-term mindset aligns with a broader trend of GPs increasingly looking to extend holds of prized assets through a variety of strategies.

Read more on PE Hub.

That’s all for today! As always, don’t hesitate to hit me up with feedback, tips or anything else at springle@buyoutsinsider.com.