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OEP talks WW Williams sale that reportedly made 5x return; TMB’s Gary Hoover discusses how tariffs can affect PE

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

Tariffs imposed on China by the US take effect today while China has introduced its own set of restrictions. Tariffs on Mexico and Canada were postponed by 30 days. We are waiting to see how this situation affects dealmakers, private equity firms and their portfolio companies. I will have insights from consulting firm TBM on this subject at the end of the newsletter.

But let’s open the newsletter with a look at how One Equity Partners reportedly made 5x in returns on the sale of a company that provides parts and service for on-highway and off-highway diesel engines, transmissions and transportation refrigeration for medium and heavy-duty trucks. The company benefited from the broader demand for trucks to move cargo in the US. We have the details below from Jamie Koven, a partner at OEP.

Truck business

Trucks are a mainstay of the supply chain in the US, moving almost two-thirds of cargo in the country. One Equity Partners (OEP) reportedly made 5x in returns when it sold WW Williams, a Columbus, Ohio-based provider of mechanical repair services and products, to Brightstar Capital Partners, according to a source familiar with the deal.

Premium subscribers can read the whole story here.

Tariffs

The new US administration’s tariffs on China came into effect today, with levies on Canada and Mexico postponed for 30 days. Gary Hoover, vice president, global private equity practice at TBM, shared his insights on the possible effect of tariffs on dealmaking in the Q&A below.

Upgrade to the premium version of the Wire to read the whole Q&A.

That’s it for me today. As always, I’d love to hear from you at [email protected].

Craig McGlashan will bring you tomorrow’s Europe Wire, while Rafael Canton will bring you the US edition.

Cheers,

Obey

Read the full Wire commentary on PE Hub ...

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Deals

They said it

“The number of miles driven determine the amount of maintenance that was required on vehicles within the on-highway segment of the business. WW Williams saw stable demand even though new trucks weren’t necessarily available to deliver to customers. Old trucks were used even more often, and they require even more significant maintenance.”

— Jamie Koven, a partner at OEP, following his firm’s recent exit in WW Williams.

Today's letter was prepared by Obey Martin Manayiti

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