Payless ShoeSource, which filed for bankruptcy protection last month, is investigating whether its private equity owners have contributed to the company’s financial demise, CFO is reporting. Golden Gate Capital and Blum Capital Partners acquired Payless in 2012. Since the acquisition, the PE firms have received more than $350 million in debt-funded dividends from Payless, the story said. Payless filed Chapter 11 on April 4 with $838 million of debt. Payless creditors’ committee said the dividends paid to the PE firms was funded by the same secured debt that drove the debtor’s bankruptcy filing, CFO said.
BV Investment Partners said May 25 that it agreed to sell TriCore Solutions to Rackspace. Financial terms weren’t announced. Tricore, of Norwell, Massachusetts, provides enterprise applications, focused predominantly on enterprise resource planning, business intelligence and analytics, and data warehousing and integration. William Blair served as financial advisor to BV.
Swander Pace Capital said May 24 that it sold Kicking Horse Coffee Ltd to Luigi Lavazza SpA. The transaction was valued at C$215 million ($160 million). Kicking Horse is an organic and fair trade coffee roaster. Elana Rosenfeld, who founded the Invermere, British Columbia-based organic coffee brand in 1996, will retain 20 percent, Reuters reported.
Rentalutions said May 25 that it closed a $2 million funding round led by Cultivation Capital. Other investors in the round include M25 Group and Sandalphon Capital. Rentalutions, of Chicago, is an online platform that aims to streamline the rental process for landlords and tenants.
J.C. Flowers & Co said May 25 that it has closed its buy of UK General Insurance Group Ltd. The deal was announced March 6. UK General, of Leeds, United Kingdom, provides a range personal lines of insurance products.
Rackspace said May 24 that it named Joe Eazor its new CEO effective June 12th. Most recently, Eazor was CEO of EarthLink. Jeff Cotten, who has served as Rackspace’s interim CEO, will continue as president. Rackspace is a portfolio company of Apollo Global Management.
American Eagle Outfitters is working with Cerberus Capital Management on a bid for Abercrombie & Fitch, the Wall Street Journal reported. Other buyout shops and clothing retailer Express Inc are still involved in the process, the WSJ said. The news caused Abercrombie’s shares to surge Wednesday.
HGGC said May 24 that it has closed its buy of AIMC LLC and will merge it with portfolio company Integrity Marketing Group LLC. Financial terms weren’t announced. AIMC, of Atlanta, is a national developer and distributor of Medicare supplement products.
SoftBank Group Corp has amassed a $4 billion stake in Nvidia Corp, Bloomberg is reporting. SoftBank disclosed it owned an unspecified amount of Nvidia stock. A holding of 4.9 percent, just under the amount that would require a regulatory disclosure in the U.S., would be worth about $4 billion, The story said. Nvidia, of Santa Clara, California, is a graphics chipmaker.
Silver Lake has agreed to invest $400 million in Unity Technologies, Bloomberg reported. The deal values Unity, a gaming software maker, at $2.6 billion. Roughly half of the money will allow Unit employees and shareholders to cash out, the story said.
Quiqup said May 24 that it raised a 20 million pound ($22.4 million) series B round led by JOBI Capital. Transmed and existing Quiqup investors also participated. Quiqup, of London, provides on-demand logistics services to consumers and retailers.
Sheridan Capital Partners said May 24 that it invested in Dermatologists of Central States (DOCS). Financial terms weren’t announced. Dermatologists of Central States, of Dayton, Ohio, is a dermatology practice management company. UPDATE: Twin Brook Capital Partners is providing $60 million in debt financing for the transaction, according to a tombstone of the deal. McGuireWoods LLP served as legal counsel to Sheridan Capital Partners. Leerink Partners served as financial advisor to DOCS.
FIS said May 23 that it has agreed to sell a majority stake, 60 percent, of Capco to Clayton, Dubilier & Rice for $477 million. FIS will retain 40 percent. Capco provides business, digital and technology consulting services for the financial services industry. Russ Fradin, the former CEO of SunGard and current CD&R operating partner, will serve as chairman of Capco. Lance Levy will continue as Capco CEO. Barclays, Credit Suisse, BMO Capital Markets, HSBC Securities (USA) INC and HSBC Bank USA, National Association, and Natixis are providing financing.
Funko LLC, which is backed by ACON Investments LLC, has agreed to buy Loungefly. Financial terms weren’t announced. Loungefly designs and sells handbags and fashion accessories under licensed brands that include Disney, Marvel, Star Wars, Sanrio, and Pokémon. Hogan Lovells US LLP is serving as legal counsel to Funko. Intrepid Investment Bankers LLC provided financial advice to Loungefly, while Greenberg Glusker Fields Claman & Machtinger LLP acted as legal counsel.
TP Therapeutics Inc has raised $45 million in a Series C financing round co-led by Lilly Asia Ventures (LAV), OrbiMed Advisors LLC and S.R. One Ltd. The round was joined by existing investors Cormorant Asset Management and SV Tech Ventures. TP Therapeutics, of San Diego, is a clinical-stage biopharmaceutical company focused on addressing oncology drug resistance.
CIVC Partners has closed its fifth fund with $400 million in capital commitments. CIVC Partners Fund V had a cover of $375 million and a hard cap of $400 million. CIVC Partners Fund V will invest in buyout and growth equity investments, predominantly within the business services and financial services sectors, in the lower middle market. Atlantic-Pacific Capital Inc served as placement agent.
StaffConnect Group said May 23 that it has secured over $1 million in seed financing from Finance South East and a strategic list of angel investors. StaffConnect, of London and San Francisco, provides a mobile employee engagement platform.
Long Game has raised $4 million in seed funding from Collaborative Fund and Thrive Capital, among others. Long Game, of San Francisco, is a personal finance app that encourages users to save money while winning prizes.