Acquisitions Monthly articles from December 2002

Acquisitions Monthly archives from December 2002

Mirror, mirror on the wall who's the fairest of them all? Beauty parades of advisers are imprecise, but they are the only game in town. (Insight).(Editorial)
December 1, 2002... In the absence of a magic mirror to determine the best of breed among the private equity industry's myriad advisers, most practitioners turn to the age-old beauty parade. There is still nothing to beat the beauty parade when it comes to...

Acquisitions monthly awards 2002-shortlists. (Awards 2002).
December 1, 2002... Bank of the year: Citigroup/Salomon Smith Barney Credit Suisse First Boston Deutsche Bank ...

Permira achieves exit from DIY firm. (Deal of the month).(GUS acquires Homebase)
December 1, 2002... Retail group GUS is buying Homebase, the DIY chain, for about 900m [pounds sterling] (US$1.42bn). The deal is in line with both groups' strategies to expand in the market for furniture and home ware. Private equity group Permira bought...

Synopses of the largest global deals in November 2002. (Market intelligence).(includes, HSBC Holdings PLC agrees to acquire Household International Inc. stocks)
December 1, 2002... US -- HSBC Holdings PLC agreed to acquire all the outstanding common and preferred stock of Household International Inc, a provider of financial services, in a stock-swap transaction valued at US$15.294bn. HSBC offered a choice of 0.535 common...

The second sub-underwriting phase of the 3.675bn [euro] buyout financing for Jefferson Smurfit will close oversubscribed this month. (M&A capital markets round-up).(Brief Article)
December 1, 2002... The second sub-underwriting phase of the 3.675bn [euro] buyout financing for Jefferson Smurfit will close oversubscribed this month having drawn a strong response from both banks and institutional investors, through mandated lead arrangers...

BNP Paribas and Citibank/SSSB have launched general syndication of Telediffusion de France's 1.34bn [euro] senior debt. (M&A capital markets round-up).
December 1, 2002... BNP Paribas and Citibank/SSSB have launched general syndication of Telediffusion de France's 1.34bn [euro] senior debt. Lead managers are invited at 25m [euro] for 75bp upfront and managers are asked to commit 15m [euro] for a participation fee...

Mandated lead arrangers CIBC and Credit Agricole Indosuez have signed banks and institutions. (M&A capital markets round-up).(Brief Article)
December 1, 2002... Mandated lead arrangers CIBC and Credit Agricole Indosuez have signed banks and institutions from senior syndication into Elis's 910m [euro] senior secured facility. HVB, ING and Royal Bank of Scotland joined as arrangers ahead of launch....

The 1.225bn [euro] facility backing KKR's buyout of Demag Holdings from Siemens has been launched into general syndication. (M&A capital markets round-up).
December 1, 2002... The 1.225bn [euro] facility backing KKR's buyout of Demag Holdings from Siemens has been launched into general syndication, through mandated lead arrangers CIBC World Markets, HVB and JP Morgan. Less than 200m [euro] needs to be raised in...

Bank of Scotland has been mandated to arrange the debt financing. (M&A capital markets round-up).
December 1, 2002... Bank of Scotland has been mandated to arrange the debt financing to back the 67.5m [pounds sterling] secondary buyout of Edinburgh Woollen Mill. The bank's integrated finance group is also providing the equity backing to chief executive...

Mandated lead arranger Rabobank (bookrunner) and joint lead arranger Royal Bank of Scotland have launched syndication of the 114m [euro] senior debt financing. (M&A capital markets round-up).
December 1, 2002... Mandated lead arranger Rabobank (bookrunner) and joint lead arranger Royal Bank of Scotland have launched syndication of the 114m [euro] senior debt financing supporting Europastry's leveraged buyout of Spanish frozen dough producer Frida...

CDC IXIS and Credit Lyonnais have signed banks into the 55m [euro] leveraged financing supporting CDC Equity Capital's 100m [euro] acquisition of Europeenne de Stationnement. (M&A capital markets round-up).
December 1, 2002... CDC IXIS and Credit Lyonnais have signed banks into the 55m [euro] leveraged financing supporting CDC Equity Capital's 100m [euro] acquisition of Europeenne de Stationnement, France's second largest car park operator. The facility was...

Further details have emerged on the senior debt financing supporting the 123m [euro] LBO of top Spanish toy manufacturer Famosa by private equity sponsor Inveralia. (M&A capital markets round-up).
December 1, 2002... Further details have emerged on the senior debt financing supporting the 123m [euro] LBO of top Spanish toy manufacturer Famosa. Rabobank was initially mandated to bridge the 96m [euro] senior debt, which was then discreetly launched in a...

The deal pricing and structure of Iberdrola's 1.5bn [euro] syndicated funding has been announced, through mandated lead arrangers. (M&A capital markets round-up).
December 1, 2002... The deal pricing and structure of Iberdrola's 1.5bn [euro] syndicated funding has been announced, through mandated lead arrangers ABN AMRO Bank (joint books), Banesto, BBVA (joint books), Credit Agricole Indosuez (documentation agent), Dresdner...

Credit Lyonnais and Deutsche Bank (bookrunner) are mandated lead arrangers of the 295m [euro] senior debt facility backing Panzani's buyout of French pasta company Lustucru. (M&A capital markets round-up).
December 1, 2002... Credit Lyonnais and Deutsche Bank (bookrunner) are mandated lead arrangers of the 295m [euro] senior debt facility backing Panzani's buyout of French pasta company Lustucru. Private equity sponsors Paribas Affaires Industrielles, Fonds...

Mandated lead arranger BNP Paribas has launched general syndication of the 145m [euro] senior debt financing supporting the MBO of French luxury perfume and beauty retailer Nocibe. (M&A capital markets round-up).
December 1, 2002... Mandated lead arranger BNP Paribas has launched general syndication of the 145m [euro] senior debt financing supporting the MBO of French luxury perfume and beauty retailer Nocibe. Kruidvat has agreed to sell the business to Bridgepoint Capital...

Senior syndication of the 600m [euro] senior loan for the buyout of animal nutrition specialist Provimi has attracted a 100% hit rate, with all six invited banks joining the deal, according to mandated lead arranger CIBC World Markets. (M&A capital markets round-up).
December 1, 2002... Senior syndication of the 600m [euro] senior loan for the buyout of animal nutrition specialist Provimi has attracted a 100% hit rate, with all six invited banks joining the deal, according to mandated lead arranger CIBC World Markets. Banks...

3i and UK-based STAR Capital Partners have reached an agreement with SAirGroup for the 425m [euro] buyout of SR Technics. (M&A capital markets round-up).
December 1, 2002... 3i and UK-based STAR Capital Partners have reached an agreement with SAirGroup for the 425m [euro] buyout of SR Technics. The deal will be supported with senior debt provided by mandated lead arrangers Bank of Scotland (bookrunner) and Royal...

The 346m [euro] facility backing the 460m [euro] LBO of Fiat's Teksid aluminium unit by a consortium of private equity houses led by Questor Management. (M&A capital markets round-up).
December 1, 2002... The 346m [euro] facility backing the 460m [euro] LBO of Fiat's Teksid aluminium unit by a consortium of private equity houses led by Questor Management has been launched to the market, through sole mandated lead arranger and bookrunner JP...

Royal Bank of Scotland is mandated to provide a leveraged financing package to support the LBO of German fish food company Tetra. (M&A capital markets round-up).
December 1, 2002... Royal Bank of Scotland is mandated to provide a leveraged financing package to support the LBO of German fish food company Tetra. European private equity sponsor Triton announced earlier this month that it had reached agreement with Pfizer to...

The 191.7m [euro] facility supporting Bain Capital's buyout of polypropylene maker Trespaphan from German chemical company Celanese AG has been launched to the market. (M&A capital markets round-up).
December 1, 2002... The 191.7m [euro] facility supporting Bain Capital's buyout of polypropylene maker Trespaphan from German chemical company Celanese AG has been launched to the market, through mandated lead arrangers Bear Stearns and JP Morgan. The...

Allegiances shift fast in restructuring: close brothers has poached Hawkpoint's us restructuring ally, Chanin capital partners, but Hawkpoint is showing it is still serious about restructuring. (Restructuring column).
December 1, 2002... To prove a point, no doubt, Hawkpoint itself announced the hire of Andrew Speirs from Close's erstwhile ally Houlihan Lokey Howard & Zukin, where the banker spent a few months during the summer. Close, whose chief executive Richard Grainger is...

HSBC fights back: HSBC's corporate finance division hires two senior UK coverage bankers. (Institutions).
December 1, 2002... HSBC's corporate finance and advisory department has made important moves to flu in some obvious gaps. It has hired former Lazard managing director Charles Packshaw and Charles Ashton from JP Morgan. The new bankers, who join soon after...

Hirst joins Stainforth to open a new Durlacher chapter. (Institution).
December 1, 2002... UK investment bank Durlacher has hired Simon Hirst as head of corporate finance, a move that signals a growing interest in M&A. Hirst had been joint global head of M&A at Commerzbank Securities for 18 months before leaving at the beginning of...

Bridgepoint celebrates ten years in Spain. (Institutions).
December 1, 2002... Juan Lopez-Quesada and Jose Maria Maldonado both joined Bridgepoint Capital as joint managing directors of the private equity house's Spanish operation in 1992. Both Lopez-Quesada and Maldonado had previously worked for Bankers Trust and Bank...

Invensys heats targets: in-house team at the UK engineering firm helps to raise 1.8bn [pounds sterling] from disposals, an aggressive approach to the sales process has paid off. (Institutions).
December 1, 2002... UK engineering group Invensys has defied the sluggish M&A market, at least partly thanks to its in-house acquisitions and divestitures unit. The company is on course to beat its targets for a disposal programme that was announced in February...

Hamilton Lane moves to London. (Institutions).
December 1, 2002... One of the largest global private equity players, the fund-of-fund group Hamilton Lane is opening its first European office in London. The venture is being championed by Wayne Harber--previously Harber was head of Hamilton Lane's international...

The importance of the SME: investment bankers are failing small and medium sized businesses, says HSBC bank chief executive Bill Dalton. (AM Interview).
December 1, 2002... HSBC's new-look investment banking operations are now part of a broader corporate, investment banking and markets division. This in turn sits within HSBC Bank, of which Bill Dalton is chief executive. The alignment of investment banking...

More pressure on due diligence: accountants must shine the spotlight on financial grey areas and buyers are looking at cultural issues that can hinder integration. (Legal and Regulatory).
December 1, 2002... Today's volatile economic and capital markets climate means that buyers are increasingly focused on getting value from the due diligence process. As well as ensuring that the numbers stack up and that, as far as can be ascertained, there...

Environment matters: as recent corporate cases show, the environmental legacy of acquisition can have devastating effect on the bottom line. Ben Harding assesses the growing scope of environmental due diligence. (Legal and Regulatory).
December 1, 2002... Greater awareness of environmental issues and calls for more transparency in the post-Enron business climate are combining with a web of well organised and connected lobbying groups to make companies more accountable for the effects they have...

New regulations for EU antitrust law: the new regulations cut red tape and free the commission to deal with the most important cross-border antitrust gases, the old notification and exemption regime is abolished. (Legal and Regulatory).
December 1, 2002... The new foundation regulation for EU antitrust law, enacted by the EU Council on November 26, certainly appears radical. However, on close examination that appearance is deceptive. For example, the notification regime is not now of great...

Davis returns from the wilderness: billionaire's offer for Vivendi has not been taken seriously, but Marvin Davis should not be dismissed: his record shows he is capable of pulling off big deals, Chris Ayres reports on developments from Los Angeles. (TMT sector report).
December 1, 2002... Marvin Davis is an oddity on Wall Street: a multibillionaire financier as famous for his near-misses as his successes. After amassing a fortune estimated at US$4.6bn through oil and real estate deals, he made failed bids for four airlines,...

OTE takes control of RomTelecom. (TMT sector report).
December 1, 2002... The biggest deal of the month in the telecoms sector took place in South-Eastern Europe on November 12 when Hellenic Communication Organisation of Greece took control of Romania's RomTelecom in a complex US$274m transaction. The deal,...

Rohatyn breathes life into FIG: Felix Rohatyn has devised the biggest fig deal of the year involving a European acquirer, but it has been a poor year for the sector overall, HSBC is one of the few acquisitive banks in the world. (FIG sector report).
December 1, 2002... It is a grim irony for underemployed young FIG bankers sitting in Europe that arguably the most creative banker in European financial institutions M&A so far this year is neither a FIG specialist nor based in Europe. He is also old enough to...

British Energy forced into US fire sale. (Utilities sector report).
December 1, 2002... British Energy will have to complete arrangements to sell its North American interests within the first half of next year as a condition for the government's continued support for the company's financial restructuring. Patricia Hewitt, the...

Eni stakes out ground for 2007. (Utilities sector report).
December 1, 2002... Giant Italian energy group Eni made a strategic move ahead of the introduction of deregulated gas and electricity markets across Europe on November 25 when it announced a 2.5bn [euro] bid to take over Italgas. The 13 [euro] a share offer...

Monthly sector analysis.
December 1, 2002... Monthly sector analysis THIS SECTOR ANALYSIS INCLUDES ACQUISITIONS AND BUYOUTS ANNOUNCED BETWEEN NOVEMBER 1 AND NOVEMBER 25, UK PUBLIC OFFERS COMPLETED BETWEEN THESE DATES ARE INCLUDED, WHEREAS NEW AND PENDING OFFERS ARE EXCLUDED, THE...

Sector watch: drinking, eating and shopping remain popular: as consumer spending continues at a steady pace the retail and food & drink sectors remain fairly buoyant with healthy interest continuing from trade and private equity players. (Moving in the mid-markets).
December 1, 2002... Moving in the mid-markets (US$500m-US$30m) Overview Mid-market activity in November had a very global feel, with deals having a strong German element in Europe. Ukraine, and further afield Russia, the US and Canada also saw...

Revised offer on the table for Baird: the agreed sale of Lowe Alpine to asolo brings a new offer for William Baird from ladies retailer Jacques Vert. (Moving in the mid-markets).
December 1, 2002... As Acquisitions Monthly went to press William Baird, the Glasgow womenswear manufacturer, had received a revised offer from London-based ladies retailer Jacques Vert. The revised offer values the business at 17.8m [pounds sterling]...

Boutique league tables: below we republish and correct the corporate finance boutique league tables based on performance between 1 July 2001-30 June 2002. We also provide tables for 2002 up to November 30. (Moving in the mid-markets).
December 1, 2002... BOUTIQUES JULY 2001-JUNE 30 2002: VALUE OF DEALS Firm No. of Value (US$m) deals (inc net debt of ...

Large buyouts continued to dominate investment: some 6.3bn [euro] was invested in 1,055 companies during the third quarter, fundraising demonstrated more positive figures than the second quarter at 3.5bn [euro]. (Behind the buyouts).
December 1, 2002... Overview BC Partners of the UK is planning to acquire a 91% interest in Hirslanden Holding, an operator of 12 hospitals, for SFr930m (US$624.87m). An investor group, comprising 3i Group and Veronis Sulher Stevenson, agreed to acquire...

Buyout of the month: bound to Boston: the only two private equity players left at the table to buy Houghton Mifflin were based in Boston, like the publisher itself, both Bain capital and Thomas H Lee are in acquisitive phases. (Behind the buyouts).
December 1, 2002... Only two private equity firms, Bain Capital and Thomas H Lee, remained on the other side of the table when Vivendi Universal finally agreed to sell its US publishing business Houghton Mifflin for 1.7bn [euro] (US$1.72bn). Apax Partners and...

BC Partners buys into Swiss healthcare: UK-based private equity group buys Switzerland's largest private healthcare group for 675M [euro]. (Behind the buyouts).
December 1, 2002... BC Partners has established newco Hirslanden Healthcare to facilitate the acquisition of Hirslanden Group from UBS, which has owned the group since 1990. With 12 acute care clinics across the country, Hirslanden is the largest private hospital...

Manchester market shows a few signs of life: Amin Amiri's A2e picks up two deals. (Behind the buyouts).
December 1, 2002... Amin Amiri's unusual one-man Manchester-based boutique a2e has just completed two more buyouts. His involvement in them, he says, owes much to the reluctance of venture capitalists to get involved in small deals. Amiri's firm advises on smaller...

3i completes further foray into directories: private equity provider teams up to buy KPN directories business. (Behind the buyouts).
December 1, 2002... 3i has teamed up with US media specialist Veronis Suhler Stevenson to buy TeleMedia, KPN's telephone directories business, for 500m [euro]. Equity is equally split between the two private equity groups, with management taking a 10% stake. A...

3i consortium acquires SR Technics. (Behind the buyouts).
December 1, 2002... In the largest management buyout in the transport and logistics sector this year, a 3i-led consortium has acquired the maintenance and support business of grounded flag carrier Swissair. David Osborne, a director at the private equity...

From MBI to MBO for Edinburgh clothing retailer: the Edinburgh Woollen mill (EWM) has undergone a secondary buyout from Rutland fund management. (Behind the buyouts).
December 1, 2002... The Edinburgh Woollen Mill (EWM) has undergone a secondary buyout from Rutland Fund Management for 67.5m [pounds sterling] (US$ 105.23m). The management team was led by chief executive Philip Day and advised by corporate finance house Smith &...

Advent acquires MACH mobile business. (Behind the buyouts).
December 1, 2002... private equity firm Advent International has led a 100m [euro] buyout at Multinational Automated Clearing House (MACH), a Luxembourg-based mobile and roaming clearing house and subsidiary of Millicom International Cellular. John Bernstein...

Securitization: an alternative exit? How are the banks that no longer want to be in private equity going to achieve an exit? (Private equity column).
December 1, 2002... After Abbey National Treasury Services downsized its investment team and found itself with more than 1bn [pounds sterling] of private equity commitments on its books, only about half of which were drawn down, rumours began to fly about what in...

HarbourVest closes fund for non-US investors. (Fund of the month).
December 1, 2002... HarbourVest Partners, one of the world's largest fund-of-fund players, has rounded off a diversified vehicle for investment in non-US private equity-related securities. The final closing of HarbourVest International Private Equity Partners IV...

JP Morgan claims `largest fund' crown. (Funds).
December 1, 2002... JP Morgan Partners, the private equity arm of the investment bank, has held a final closing on JP Morgan Partners Global 2001 LP fund at US$7.7bn, making it the largest ever private equity vehicle. The vehicle, which takes over the mantle...

Sunrise launch. (Funds).
December 1, 2002... US turnround specialist Sunrise Capital Partners has launched its second fund with a target of between US$400m and US$600m. Sunrise Capital Partners II is being marketed to institutions in both the US and Europe and has just established a...

Paul Capital. (Funds).
December 1, 2002... Secondaries specialist Paul Capital is in the process of raising a US$750m fund dedicated to investments in intellectual property in the pharmaceutical sector. Of interest are investment opportunities in therapeutics, devices, platform...

Danske Private Equity. (Funds).
December 1, 2002... Danske Private Equity has raised 482m [euro] for its second fund-of-funds and is in talks with another investor to add a further 40m [euro] to the pot before final closing. Like its predecessor, which raised 555m [euro] in 2000, Danske Private...

Enterprise & CSFB exit in Poland. (Exits).
December 1, 2002... In a rare example of a private equity exit through the stock markets of Central and Eastern Europe, Enterprise Investors and CSFB Central European Merchant Partners have sold their remaining interest in Polish aluminium producer Grupa Kety on...

Welzorg changes hands. (Exits).
December 1, 2002... Sweden-based private equity firm Industri Kapital has acquired Welzorg, a Dutch manufacturer and distributor of mobility aids, in a tertiary buyout that provides an exit for UBS Capital. Amsterdam-based Welzorg is a major supplier of...

Homebase-Permira. (Exits).
December 1, 2002... Permira has sold DIY chain Homebase to GUS for about 900m. Please see Deal of the month on page 6.

M&A deal data. (Benelux, France, Germany).
December 1, 2002... M&A deal data Benelux Target Multinational Automated Clearing House (Millicom Int Cellular) (LX)--Provide telephone communication services Sales ($): n/a Net Profits ($): n/a Bidder Investor...

Country codes.
December 1, 2002... Country codes AA Albania AB Aruba AD Andorra AF Afghanistan AI Abu Dhabi AJ Ajman AL Algeria AM Armenia AN Angola AQ Antigua AR Argentina AS ...