Investcorp, Clearlake, Atlantic Street back car parts; Amazon said to bid for Signify Health

Amazon is reportedly bidding for New Mountain-backed Signify Health.

Good morning, Hubsters. Happy Monday. MK Flynn here with today’s Wire.

Last week, Firmament’s Parris Boyd predicted that strategic buyers would play a bigger role as a buyer of healthcare companies.

Boyd cited Amazon’s July announcement that it is buying One Medical for $3.9 billion as a harbinger of more deals to come.

Well, this morning, it seems Amazon is among the bidders for home-health services provider Signify Health, reports the Wall Street Journal, citing people familiar with the matter. CVS Health and UnitedHealth Group are also reportedly interested.

Signify is reportedly for sale in an auction that may value the company at more than $8 billion. The company raised $564 million went public in 2021.

New York private equity firm New Mountain Capital formed Signify by combining CenseoHealth and Advance Health back in 2017. New Mountain remains an investor in the company today.

For ongoing coverage of private equity-backed healthcare deals, see the healthcare landing page of PE Hub.

And reach out to reporter Aaron Weitzman with healthcare deal news, tips and insights at aaron.w@peimedia.com

Road worthy. As anyone who’s tried to buy a new car this year knows, parts are in short supply. Parts for older cars are in high demand, and private equity firms are investing heavily in the auto aftermarket, as PE Hub reporter Obey Martin Manayiti writes.

Investcorp, Clearlake and Atlantic Street are among the PE firms snatching up car parts makers.

“The supply chain disruption did have one positive effect as a demand driver,” Steve Miller, Investcorp’s managing director told PE Hub in an email exchange. “It has limited the number of new trucks/cars that could be produced, which means the average car or truck on the road has gotten a bit older. Older trucks and cars are more likely to need aftermarket parts, so that benefits the industry as a whole.”

Earlier in August, Investcorp merged S&S Truck Parts with Midwest Truck & Auto Parts.

Investcorp has a long and successful track record in the space, having exited previous portfolio companies Arrowhead Engineered Products, FleetPride and American Tire Distributors.

Moving forward, we expect to see many more deals for third-party car parts. As Investcorp’s Miller said, the sector is “large and fragmented with predictable, steady growth.”

He concluded: “There is a very large installed base of cars and heavy-duty trucks on the road and over time they need replacement parts due to the wear and tear of usage,” Miller said. “This creates a higher degree of resiliency across market cycles, as demand is predominantly driven by auto and truck sales over many previous years.”

You can read the whole story here. You can reach Obey at obey.m@peimedia.com.

London calling. Last month, we launched PE Hub Europe to bring the deal expertise PE Hub has developed in North America to private equity investments in Europe. Register for the site and sign up for the daily Dealflow newsletter, written by editor Craig McGlashan.

One story featured today is reporter Nina Lindholm’s interview with Avent Bezuidenhoudt, head of investment and director of Earth Capital.

The London PE firm plans to improve the biomass-fuelled energy plants in its newly established bioenergy platform with additional investment and is eyeing opportunistic new assets.

In mid-August, Earth Capital announced the launch of its UK-based bioenergy platform, Sustainable Energy Holdings Limited, the result of a merger of four of its portfolio companies: Eccleshall Biomass (based in Eccleshall), Limelight Energy (based in County Durham) and two firms based on the Isle of Wight, Black Dog Biogas and Bright Light Energy. All four firms are low-carbon bioenergy generation assets.

“Perhaps biomass isn’t quite as glamorous as the wind farms and the solar farms, but it has to form part of a bigger strategy,” said Bezuidenhoudt.

For more on the firm’s strategy, read the full story here. You can reach Nina at nina.l@peimedia.com.

That’s all for now. I’ll be back with the Wire, and Craig will be back with the Dealflow tomorrow.

Cheers,

MK