Transaction Case Studies

Sixense sells part of its stake in MVI Health to JV partner expand

TRANSACTION HIGHLIGHTS

  • On September 4, 2018, Penumbra Inc. ("Penumbra") announced the acquisition of a controlling stake in MVI Health, Inc. (“MVI Health”)
  • Penumbra increased its ownership from 50% to 90% of the equity of MVI Health for $20M in cash consideration
  • MVI Health, formed in May 2017, is a joint venture between Penumbra and Sixense Enterprises, Inc. ("Sixense")

SIXENSE OVERVIEW

  • Sixense, based in Los Gatos, CA, is a leading provider of enterprise VR/AR solutions
  • Sixense's technology enables immersive, full- presence VR/AR experiences across a range of applications, such as video games, healthcare et al

MVI HEALTH OVERVIEW

  • MVI Health, based in Alameda, CA, is a developer of VR technology for healthcare
  • It combines immersive VR computing with development of medical products

Home Chef is acquired by Kroger for $700M expand

TRANSACTION HIGHLIGHTS

  • On May 23, 2018, The Kroger Co. ("Kroger") signed a definitive agreement to acquire Relish Labs LLC ("Home Chef") in a deal valued at up to $700M
  • Kroger will make Home Chef meal kits available to Kroger shoppers, both in stores and online
  • Will introduce Kroger’s 60M shoppers to Home Chef, enhance Kroger’s ship- to-home and subscription capabilities and contribute to Restock Kroger
  • Upfront cash consideration of $200M and future earnout payments of up to $500M over five years are contingent on achieving certain milestones, including in-store and online meal kit sales
  • Home Chef will operate as a subsidiary of Kroger and assume responsibility for Kroger's meal solutions portfolio

HOME CHEF OVERVIEW

  • Home Chef is one of the largest meal kit delivery companies in the U.S., with over 3 million meals delivered each month
  • Founded in 2013, Home Chef offers fresh, pre- portioned ingredients and easy to follow recipes delivered weekly and is designed for anyone to be able to cook and everyone to enjoy
  • The Chicago-based company delivers nationwide from its distribution centers in the Chicago, Atlanta, and Los Angeles areas

HZO raises $52M equity investmentexpand

TRANSACTION HIGHLIGHTS

  • $52M Series D equity investment to fund continued strong growth
  • Significant contribution from existing & new investors
  • Post-money valuation of more than 15x LTM revenue
  • $20M participation from new investors Panorama Point Partners ("PPP") & family behind Bauer Media Group
  • Stephen George (Founder & Managing Partner) of PPP to join HZO Inc.'s (“HZO") board
  • Result of tightly-controlled, competitive process including leading financial & strategic investors globally

HZO OVERVIEW

  • HZO, headquartered in Draper, Utah, is the market leader & pioneer in developing thin film protective coating for electronic circuitry & devices
  • HZO combines expertise in materials science, vacuum deposition, laser technology, equipment and automation to provide an end-to-end solution against exposure to damaging environments
  • The company owns a global patent portfolio spanning chemistry, equipment, processes, and ecosystem

Kabbage raises a $250M equity investment from SoftBank expand

TRANSACTION HIGHLIGHTS

  • The current SoftBank transaction provides Kabbage Inc. ("Kabbage") with funding to continue its strong growth & market share gains in the US, as well as further international expansion efforts
  • SoftBank previously led Kabbage's Series D preferred stock funding via its affiliate SoftBank Capital
  • SoftBank's $250m investment in Kabbage was the culmination of a tightly-controlled and competitive process, including other leading financial and strategic investors.
  • Andrew Kass of BlackWatch Advisors advised Kabbage in the Series D funding round at his prior firm

KABBAGE OVERVIEW

  • Kabbage, headquartered in Atlanta, has pioneered a financial services data and technology platform to provide automated funding to small businesses in minutes
  • Kabbage leverages data generated through business activity such as accounting data, online sales, shipping and dozens of other sources to understand performance and deliver fast, flexible funding in real time
  • Kabbage has provided powering automated lending for three of the world’s top 50 global banks

BlackWatch Managing Director & CEO Andrew Kass also serves as a Managing Director, Operating Partner and registered representative of Global Leisure Partners LLC ("GLP"), a licensed broker-dealer registered with the Securities and Exchange Commission and a FINRA/SIPC member firm. All broker-dealer activities are conducted by Andrew in association with GLP.