Vestar, Swander Pace make consumer bets, Carlyle preps sale of Net Motion Software

Carlyle preps a sale of Net Motion Software and Vestar Capital invests in Dr. Praeger’s Sensible Foods.

Happy Thursday!

Now that we have a new government, I’m thinking about some of the ways the new administration, and a Democrat-controlled Congress, will impact the M&A environment.

One issue that appears to be creeping back into discussion is the threat of rising inflation, a concern being trumpeted lately in the Financial Times. Today the FT explores how a sudden rush of demand by consumers after vaccinations fully reopen economies could outstrip supply, driving up pricing even as unemployment stays high — resulting in the dreaded stagflation.

What would this mean for deal pricing, and how would private equity address this market? Would this also hammer away at exit calculations — which have already gone through reassessment as hold periods at the very least become extended.

Is this on your radar? Let me know what you think at cwitkowsky@buyoutsinsider.com.

Software: Carlyle Group preps a sale of Net Motion Software, which provides network security, writes our tech guru Milana Vinn today. Net Motion says that it is addressing the transition of workers into remote environments. The company generates around $60 million in revenue, $50 million of which is recurring, Milana writes.

Carlyle invested in Net Motion Software in 2016, acquiring the company from Clearlake Capital. Carlyle invested through its Europe Technology Partners III, a 657 million euros fund, and US Equity Opportunity Fund II, a $2.4 billion pool.

Healthy: Vestar Capital invested in Dr. Praeger’s Sensible Foods, which specializes in plant-based frozen and refrigerated foods. The business, formed in 1994 by two heart surgeons, offers vegan, vegetarian, gluten free, soy free, Kosher and non-GMO foods.

Dr. Praeger’s is led by second generation family members Larry Praeger, CEO, and Adam Somberg, president, who will continue in their current roles and remain significant investors in the business.

Vestar has a history of investing in the better-for-you food segment. Its current food investments include Simple Mills, cracker, cookie and baking mix brand in the natural and organic channel; Roland Foods, an importer and supplier of specialty foods; Nonni’s, which makes artisanal cookies and baked goods; and Presence Marketing, a sales broker dedicated to representing natural and organic food, beverage and personal care products. Read more here.

Note to Readers: It’s that time of year … for the 21st time, the editors of PE Hub and Buyouts honor exceptional buyouts with our Deal of the Year Awards.

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Go here for more information and to read about rules and methodology. Also check out past winners. Last year, New Mountain took the crown with its exit of Equian.

If you have additional questions, email Private Equity Editor Chris Witkowsky at cwitkowsky@buyoutsinsider.com.