PE Week Wire: Wed., Dec. 12, 2007

No column today, due to a dizzying array of deadlines and meetings. Be back at full attention tomorrow, just in time for the stretch drive before heading to Costa Rica for some R&R. If you need a fix, expect some peHUB posting later in the day.

Top Three

TA Associates has acquired a majority stake in 5.11 Tactical, a Modesto, Calif.–based manufacturer and distributor of apparel and accessories for the law enforcement market. The deal is valued at $200 million, with 5.11 Tactical management remaining in place.

Revance Therapeutics Inc., a Mountain View, Calif.-based drug company focused on the aesthetic medicine and personal wellness categories, has raised $43.2 million in Series C funding. Medicis Pharmaceutical Corp. (NYSE: MRX) led the deal with a $20 million infusion, in exchange for a 10% equity stake and an option to either acquire Revance or get an exclusive North American license for its topical botulinum toxin type A product. Other backers include Essex Woodlands Healthcare Ventures, Vivo Ventures, Technology Partners, Shepherd Ventures, and Palo Alto Investors. Leerink Swann LLC served as placement agent.

Vikram Pandit has been named CEO of Citigroup, following last month’s resignation of Chuck Prince.

VC Deals

REVA Medical Inc., a San Diego-based developer of bioresorbable stents to treat arterial disease, has raised $42 million in new private equity funding. Cerberus Capital Management and Brookside Capital co-led the round, and were joined by Pequot Capital Management, Medronic and return backers Domain Partners and Group Outcome LLC. Prior backer Boston Scientific will maintain its equity position, and also holds an exclusive option for global distribution of REVA’s resorbable coronary and peripheral stent products.

Sensor Dynamics AG, a Graz, Austria-based provider of micro and wireless sensor products for automotive and industry applications, has raised €25 million in new funding. The round included both Series B equity and structured leverage, but no breakdown was disclosed. Backers include Global Equity Partners, HTA III Venture Beteiligungs-Invest AG, Siemens Venture Capital, DEWB, PONTIS Venture Partners, FIDURA Private Equity Funds and IPOAustria.

Energy & Power Solutions Inc., a Costa Mesa, Calif.-based, has raised $20 million in Series A funding. Backers included NGEN and Robeco Group, while Windstone Capital Partners served as financial advisor.

Celeversafe Inc., a Chicago-based developer of dispersed storage appliances and software for deployment of dispersed storage networks, has raised around $5 million in Series C funding. Harrison Street Capital led the round, and was joined by Presidio Ventures and return backers New Enterprise Associates, Alsop Louie Partners and OCA Ventures. In other company news, Cleversafe announced that former Motorola CEO Christopher Galvin was joining its board of directors.

Buyout Deals

Cerberus reportedly has dropped out of the bidding from troubled UK bank Northern Rock. The news comes just one week after J.C. Flowers & Co. also bailed, leaving just two remaining consortia: One led by Virgin Group, and one led by former Abbey National CEO Luqman Arnold.

D.E. Shaw & Co. has led a buyout of Chapel Hill, N.C.-based insurance company James River Group (Nasdaq: JRVR), via a Bermuda-based holding company. The total deal was valued at $573 million, with James River stockholders receiving $34.50 per share in cash. Joining D.E. Shaw were Goldman Sachs, Sunlight Capital, a private equity affiliate of Elliott Associates and Lehman Brothers.

Segulah has agreed to acquire Nilssons Gott AB, a Swedish provider of natural snacks under the Exotic Snacks brand. No financial terms were disclosed.

The Wicks Group of Cos. has acquired The Gordian Group Inc., a provider of database management and procurement services for the repair and alternations segment of the construction sector. No financial terms were disclosed. Gordian previously had been owned by its employees through an ESOP. It was advised on the sale by Berkery, Noyes & Company.

PE-Backed IPOs

Cardtronics Inc., a Houston, Texas-based operator and distributor of ATM machines, raised $120 million in its IPO. The company priced 12 million shares at $10 per share, after originally having filed to price 16.67 million shares at between $14 and $16 per share. It began trading yesterday on the Nasdaq under ticker symbol CATM, and closed down at $9.80 per share. Deutsche Bank Securities, William Blair & Co. and Banc of America Securities served as co-lead underwriters. CardTronics previously filed for an IPO in 2004, but later withdrew the offering. Soon after, it raised $75 million in new funding from TA Associates, which was used for both working capital and to provide some liquidity to majority shareholder CapStreet Group LLC.

VanceInfo Technologies Inc., a Beijing-based provider of offshore software development, raised $64.26 million through its IPO. The company priced 7.65 million American depository shares at $8.50 per share ($7.50-$9.50 range), and will trade on the NYSE under ticker symbol VIT. Citi and Merrill Lynch served as co-lead underwriters. VanceInfo had raised around $32 million in VC funding from firms like DCM, Sequoia Capital and an investment fund affiliated with the Chinese Academy of Sciences.

Digital Domain Inc., a Venice, Calif.-based visual effects and animation company, has filed for a $100 million IPO. It plans to trade on the Nasdaq under ticker symbol DTWO, with Thomas Weisel Partners and CIBC World Markets serving as co-lead underwriters. Shareholders include Falcon Mezzanine Partners and GunnAllen Venture Partners.

PE Exits

Evraz Group SA (LSE: EVR) has agreed to acquire Claymont Steel Holdings Inc. (Nasdaq: PLTE) for $564.8 million. Claymont shareholders will receive $23.50 per share in cash. This includes H.I.G. Capital, which owns approximately 42.6% of Claymont shares. It said that it will vote in favor of the tender offer.

Hammond, Kennedy, Whitney & Co. has completed its sale of Maxon Corp. to Honeywell International Inc. (NYSE: HKW). No financial terms were disclosed. Maxon is a Muncie, Ind.-based manufacturer of industrial combustion controls, including a range of combustion burners, gas valves and engineered systems. Harris Williams & Co. advised Maxon on the transaction.

KKR has agreed to sell Argillon Group, a German maker of catalysts and advanced ceramic materials, to Johnson Matthey PLC (LSE: JMAT) for €214 million.

Montagu Private Equity has agreed to sell VetXX, a UK-based provider of companion animal veterinary products, to Dechra Pharmaceuticals (LSE: DPH). No financial terms were disclosed. VetXX employes more than 750 people, with £253.8 million in sales during its most recent fiscal year. It was acquired by Montagu in 2005.

nCipher PLC (LSE: NCH) has acquired the IP and assets of NeoScale Systems Inc., a Milpitas, Calif.-based provider of appliance-based encryption products, for approximately $1.95 million in cash. NeoScale had raised just over $60 million in VC funding since 2000, from firms like Bay Partners, Lightspeed Venture Partners, Sevin Rosen Funds and Advanced Technology Ventures.

PCN Financial Services Group has completed its acquisition of Albridge Solutions Inc., a Lawrenceville, N.J.-based provider of portfolio accounting and enterprise wealth management services. No financial terms were disclosed. Albridge Solutions had raised $23 million in VC funding between 2000 and 2003, from firms like Boston Ventures, Charterhouse Group International, Desai Capital Management, Axiom Venture Partners, Hudson Venture Partners, ING Aetna Financial and Allianz Private Equity Partners.

PE-Backed M&A

National Interest Security Co., a Fairfax, Va.-based provider of IT, management and consulting service to the U.S. intelligence community, has acquired Information Manufacturing Corp., a provider of information services to the U.S. intelligence and defense markets. No financial terms were disclosed. NISC is controlled by DC Capital Partners.

USI Holdings Corp., a Briarcliff Manor, N.Y.–based distributor of insurance and financial services to businesses, has acquired BenefitPort, an Englewood, N.J.-based employee benefit general agent. No financial terms were disclosed, except that the deal is expected to add $6 million in annual revenue to USI. USI is owned by Goldman Sachs Capital Partners.

Wood Structures, an acquisition platform sponsored by Roark Capital Partners, has acquired the Assonet, Mass.-based building products distribution center of the Weyerhaeuser Co. No financial terms were disclosed.

Human Resources

Andy Shinn and Aaron Sack have joined Morgan Stanley Private Equity as executive directors. Shinn previously was with The Carlyle Group, where he led the acquisition of Home Depot Supply. Sack had spent the past two years with Apollo Advisors, before which he was with Goldman Sachs’ principal investment department.

Dick Williams has joined Accel Partners as a CEO-in-residence. He previously worked with Accel as chairman or CEO of three portfolio companies, including Illustra Information Technologies (acquired by Informix in 1996), Quokka Sports (IPO in 1999) and Wily Technology (acquired by Computer Associates last year).

In Memoriam

Michael Connelly, a senior advisor to The Carlyle Group, passed away on Sunday at the age of 55. Calling hours will be today at the Leo P. Gallagher & Son funeral home in Greenwich, Connecticut. In lieu of flowers, donations may be made in Mr. Connelly’s name to Save the Children, 54 Wilton Road, Westport, CT 06880;