Sun Capital seeks $2.2B for buyouts
July 23, 2018
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Sun Capital Partners has set a $2.2 billion target for its seventh flagship private equity vehicle, according to an SEC filing. The fund is the first for the Florida-based firm in four years, following a Fund VI that closed on $2.1 billion in 2014—well below a reported $3 billion target. Back in 2007, meanwhile, Sun Capital closed its fifth fund on $6 billion, a figure that was later reportedly reduced to accommodate LPs.
Sun Capital invests mainly in consumer and industrial businesses, with a focus on sectors such as restaurants, retail, packaging and building products. The firm's current restaurant holdings include Boston Market, Johnny Rockets and Friendly's, while its retail portfolio includes British businesses Bonmarché and American Golf.
The firm has executed several major exits in the manufacturing sector during recent months. Last winter brought the separate sales of Robertshaw Controls, Albéa and Aclara Technologies for a combined enterprise value of $3.5 billion, per media reports, with Robertshaw and Aclara representing exits from the firm's Fund VI. This spring, Sun Capital sold insulation manufacturer Demilec for $350 million and agreed to offload packaging provider Coveris Americas for $1.32 billion.
Meanwhile, a deal with a retail business—convenience store operator GPM Investments—has turned decidedly sour. In May, according to Law360, GPM filed a suit against Sun Capital in federal court alleging the firm had perpetrated a RICO scheme by taking money out of GPM and other portfolio companies in order to avoid paying $60 million in pension liabilities.
Related read: PE grapples with the decline of brick-and-mortar retail
Sun Capital invests mainly in consumer and industrial businesses, with a focus on sectors such as restaurants, retail, packaging and building products. The firm's current restaurant holdings include Boston Market, Johnny Rockets and Friendly's, while its retail portfolio includes British businesses Bonmarché and American Golf.
The firm has executed several major exits in the manufacturing sector during recent months. Last winter brought the separate sales of Robertshaw Controls, Albéa and Aclara Technologies for a combined enterprise value of $3.5 billion, per media reports, with Robertshaw and Aclara representing exits from the firm's Fund VI. This spring, Sun Capital sold insulation manufacturer Demilec for $350 million and agreed to offload packaging provider Coveris Americas for $1.32 billion.
Meanwhile, a deal with a retail business—convenience store operator GPM Investments—has turned decidedly sour. In May, according to Law360, GPM filed a suit against Sun Capital in federal court alleging the firm had perpetrated a RICO scheme by taking money out of GPM and other portfolio companies in order to avoid paying $60 million in pension liabilities.
Related read: PE grapples with the decline of brick-and-mortar retail
*This story has been updated to provide additional information.
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