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Patient Square unveils $4.1bn take-private deal; Bain Capital, Leeds Equity leverage seismic shift in education

Good morning, PE Hubsters! Rafael Canton here with the US edition of the Wire from the New York newsroom.

First, after a slowdown, dealmaking in the education sector has picked up, especially in categories such as edtech. Let’s look back at private equity investing in the education sector in 2024.

Then, we will look at a deal announced yesterday. Apollo Global Management-backed Novolex and Pactive Evergreen have agreed to combine, creating a US-based manufacturer of food, beverage and specialty packaging products in what is a $6.7 billion deal.

Finally, we have a deal from this morning. Patient Square Capital has agreed to acquire dental and animal health distributor Patterson Companies, in a $4.1 billion take-private deal.

Deal education

Let’s dig into private equity dealmaking in education. The sector experienced a slowdown but as PE Hub’s Iris Dorbian noted, there’s been a recent upswing in PE deals. Let’s take a look at where that rebound is taking place. Iris highlighted trends from this year in education deals.

Premium subscribers to the Wire can read more about the trends in PE dealmaking in education.

Packaging industry evolution

Apollo Global Management-backed Novolex and Pactive Evergreen have agreed to combine, creating a US-based manufacturer of food, beverage and specialty packaging products.

Subscribe to the premium version of the Wire to learn more about this deal.

Major distribution

Patient Square Capital has agreed to acquire Patterson Companies, a St. Paul, Minnesota-based dental and animal health distributor, in a $4.1 billion take-private deal.

Premium subscribers to the Wire can learn more about the deal from this morning.

Cheers,

Rafael

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Also of note (may require subscriptions)

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Vestar Capital Partners has decided to push off raising a new fund to focus on its existing portfolio and work to deliver liquidity to LPs in older funds, sources with knowledge of the firm said. (Buyouts)

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AlpInvest Partners has led a single-asset transaction involving a global speciality pharmaceutical group in the latest example of a healthcare-focused continuation fund. The Carlyle unit was the lead investor in a €600 million process involving Essential Pharma, according to details shared with Secondaries Investor.

Green hydrogen remains supported by UK and European policies, but the development of a market has been slower than anticipated and FIDs are being paused or pushed. Nevertheless, many investors persist. (Infrastructure Investor)

Nature markets hold their breath as Trump waits in the wings: Biodiversity was a prominent topic at the 15th annual Responsible Investor USA Conference in New York, where uncertainties surrounding the incoming Trump administration clouded the outlook. (Agri Investor)

An AI-enhanced data collection method from CBRE Investment Management has found that real estate secondaries volume last year was significantly larger than previously thought. (Secondaries Investor)

Because of a “staggering” level of commitment to business development companies and to both private and public REITs, Stanger, an investment banking firm headquartered in Shrewsbury, New Jersey, boosted its estimate of the total fundraising expected in alternative investments for 2024. (Private Debt Investor)

Stonepeak has completed fundraising for its debut real estate fund, Stonepeak Real Estate Partners, raising a total of $764 million, PERE has learned.

The investment committee of the City of Austin Employees’ Retirement System has recommended the board approve a 10 percent allocation to private debt. The committee indicated it could be looking to expand its presence in the asset class in years to come. (Private Debt Investor)

They said it

“Novolex and Pactiv Evergreen serve attractive end markets, and both companies have made tremendous progress in recent years to enhance their operations and strengthen their focus on product innovation and sustainability leadership.”

— Rob Seminara and Peter Sinensky, partners at Apollo on the firm’s portfolio company Novolex merging with Pactive Evergreen