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Stellex, Balmoral said to be circling Baker Hughes’ digital tools products; 3G Capital to take Skechers private for $9bn

Good morning, Hubsters. Senior reporter Michael Schoeck here with the US edition of the Wire from the New York newsroom.

Many dealmakers are hoping the tariff situation wil stabilize and activity will pick up as the year progresses. Today, we’re seeing signs of life. We’ve got an action-packed Wire with two original stories and one large take-private deal.

First up today is a scoop on Baker Hughes involving a potential divestment of three digital products used in oil and gas and industrials markets.

And next up is a Dealmakers to Watch series profile by Rafael Canton on former Utah Jazz owner Dave Checketts’ new investment firm formed with the Cynosure Group’s Spencer P Eccles.

Wrapping up we’ll look at 3G Capital’s latest foray taking popular shoe brand Skechers private for $9 billion.

Bidders emerge

Baker Hughes is understood to be in an advanced discussions for the sale of its Druck, Panametrics and Reuter-Stokes industrial equipment groups, sources familiar with the matter told PE Hub.

Sign up for the premium version of the Wire for more from the story, including bidders and valuation color.

Checketts’ new game

When Dave Checketts and the Cynosure Group formed a joint venture private equity sports fund in April, it seemed like a partnership that was destined to happen. The fund is named Cynosure | Checketts Sports Capital and is looking to raise at least $1.2 billion.

PE Hub reporter Rafael Canton spoke with Checketts and Spencer P Eccles of Cynosure to go over the investors’ history, current gameplan and strategy.

Readers of the premium version of the Wire can access more details on the JV, as well as Checketts’ background turning around the Utah Jazz.

This article is part of an ongoing series of profiles launched by PE Hub called Dealmakers to Watch. The series features private equity professionals as they pivot to new challenges, such as moving to a different firm, launching a new firm, getting promoted to partner, launching an investment strategy, closing a significant deal or some other new endeavor. If you’d like to see a dealmaker profiled, reach out to PE Hub editor-in-chief Mary Kathleen (MK) Flynn at [email protected].

Grab your Keds

Private equity firms continue to invest in recognizable consumer brands and apparel. On Monday afternoon popular sneaker and footwear brand Skechers USA announced a take-private agreement to be acquired by 3G Capital in a deal valued at $9 billion. 

For more details from the deal as well as additional PE Hub consumer, apparel and retail content, upgrade to the premium version of the Wire.

That’s a wrap for me. Keep an eye out for the Europe edition of the Wire tomorrow from Craig McGlashan, and the US edition from Rafael Canton.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

The software sector might be a ray of light for private equity dealmakers amid the uncertainty and volatility caused by the US administration’s imposition of trade tariffs, which have so far focused mainly on goods rather than services. But even within the tech sector, there are likely to be winners and losers. There are also signs that though valuations have so far been unaffected, deal momentum has taken a hit, said Sascha Pfeiffer, managing director and global head of technology at investment bank Houlihan Lokey. (PE Hub)

Mark Carney's, background, before becoming Canada's new prime minister, may raise private equity’s expectations, but ‘the world is a different place than it was last December,’ CVCA’s Kim Furlong tells Buyouts and Private Funds CFO in an exclusive interview.

Arizona Public Safety Personnel Retirement System has tweaked its private equity allocation to “get ahead” of potential liquidity challenges, as market volatility continues to persist. (Buyouts)

Since 1976, South Yorkshire Pensions Authority's farmland portfolio has grown from 400 acres to 21,000 acres and become the seed assets of a strategic natural capital investment program. George Graham, a director at SYPA and a key architect of the portfolio’s evolution, speaks with Agri Investor about how the authority is managing this transformation, why it partnered with Royal London Asset Management in March 2024 and how farmland, climate opportunities and renewables now sit at the heart of the pension’s net-zero action plan. (Agri Investor)

There is no consensus among asset owners as to whether the pushback against DE&I in the US will have an impact in Europe, according to research from Brackendale Consulting. (New Private Markets)

Deals

They said it

“I was looking all over town to find anybody with any money to put in, recapitalize the team and pay off the debt, and I couldn’t find anyone. I tried a number of groups and finally ended up with a small car dealer.”

— Dave Checketts, managing partner, Checketts Partners Investment,  on raising money for the Utah Jazz back in the 1980s.

Today's letter was prepared by Michael Schoeck

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