PE-Backed Companies Continue to Attract Strategics
May 10, 2012
Insight Equity has completed its $360 million sale of Walker Group Holdings to Wabash National (NYSE: WNC). Walker manufactures stainless steel and aluminum liquid transportation systems and stationary engineered products for a variety of industries, such as the chemical, food and beverage, aviation and energy industries. Insight acquired the company in October 2006.
Sales to strategic acquirers (corporate acquisitions) continue to be a popular exit strategy for private equity investors, with PE firms having sold 81 companies to strategics so far this year, according to the PitchBook Platform. Although the median size of this year's corporate acquisitions ($179 million) is lower than last year's ($250 million), 2012 is on track to match last year's solid final count of 214 completed corporate acquisitions. The B2B industry has accounted for 32% of this year's activity, making it the most popular industry for corporate acquisitions. Tied for second place are Healthcare and IT.