Acquisitions Monthly articles from December 2005

Acquisitions Monthly archives from December 2005

Not so old and not so grey: the UK is proving to be one of the world's most attractive markets and must be allowed to remain so.(EDITORIAL)
December 1, 2005... It is fashionable to talk of new markets in greener lands, but few people involved in M&A will have taken their eyes off the UK this year. For all its extreme maturity as a market, the UK still remains arguably the most attractive and easy...

November snapshot: synopses of the largest global M&A deals announced last month.(MARKET INTELLIGENCE)
December 1, 2005... US Koch Forest Products Inc, a unit of Koch Industries Inc, launched a tender offer to acquire all the outstanding common stock of Georgia-Pacific Corp, a manufacturer and wholesaler of building materials, pulp and paper products, for US$48 in...

Editorial calendar for 2006.(Calendar)
December 1, 2005... Editorial Calendar for 2006 www.acquisitions-monthly.com In addition to the monthly sector focuses, there is regular coverage on TMT, FIG and Utilities. Other areas covered on a regular basis include Restructuring, Acquisition...

Acceleration pays off for Via: the sale of Via Net.Works shows how M&A can be both fast and effective, Neil Sen reports.(RESTRUCTURING COLUMN)
December 1, 2005... The recent sale of Netherlands-based Via Net.Works to Interoute of Luxembourg for US$18.1m might count as a relatively small deal, but it represented the end of a highly fraught restructuring. It is a transaction that illustrates that M&A can...

Rolling out growth: as the UK retail sector enters tough times, Roger Holmes of Change Capital Partners talks to Sandrine Bradley about the plans for its portfolio companies.(AM INTERVIEW)(Interview)
December 1, 2005... Despite the bleak expectations in the UK retail sector, Roger Holmes, the former CEO of Mark and Spencer, is upbeat following his first year in the land of private equity. Holmes joined retail specialist Change Capital Partners, set up by his...

Leisure weathers the consumer slowdown: while the UK public can forgo a new pair of boots or a handbag, it seems they are less willing to give up a quick pint or a flutter on the horses.(CONSUMER AND LEISURE)
December 1, 2005... The high street leisure sector appears to have weathered the slowdown in consumer spending rather better than retailers, and this has been reflected in the level of M&A activity this year. From restaurants to book makers, the leisure sector has...

Investing to impress: it has been a year of successful exits for Graphite Capital, with its retail and consumer team notching up impressive multiples. Rod Richards and Andy Gray discuss their consumer strategy.(CONSUMER AND LEISURE)
December 1, 2005... Walk through the city of London from Moorgate past the Bank of England and Mansion House, then stroll down to the Embankment past the Tower of London, cross the river to Borough Market and go on to the National Theatre and the Royal Festival...

Banking on success: the success of Jimmy Choo under the guiding hand of Phoenix Equity Partners has been well documented. But as we head into harder times, is the UK mid-market firm still as upbeat about its retail assets? David Burns talks to Sandrine Bradley.(CONSUMER AND LEISURE)
December 1, 2005... Jimmy Choo was a defining moment for the leisure and retail team at Phoenix Equity Partners and a classic example of private equity working the profitable but cyclical nature of the fashion retail sector. According to David Burns, a partner at...

Consumer-retail case studies: we posed the question: is the retail sector heading for a soft landing? We also asked practitioners for case studies of a recent deal origination, execution or restructuring in the consumer and retail sector.(VIEWPOINTS)
December 1, 2005... "The downturn in retail/consumer spending, which started over a year ago, but accelerated through this summer, has already started to have an impact on the level of M&A activity and valuations in what has until recently been one of the hottest...

Bill Harrison: in memoriam: we pay tribute to a personable and innovative corporate financier.(INSTITUTIONS)(Obituary)
December 1, 2005... It was with deep regret that we learnt of the death of Bill Harrison, one of the most distinguished investment bankers of the last 15 years and a good friend of Acquisitions Monthly. Harrison, who had been attached to ING at the time of his...

Richard Murley to join Rothschild.(INSTITUTIONS)
December 1, 2005... Richard Murley is to join Rothschild in early 2006 as a managing director, based in London, after finishing his secondment to the UK Takeover Panel since 2003 as Director General. Murley has previously held senior positions with Dresdner...

Bonuses on the increase: bonuses are rising but there could be huge differences among individuals.
December 1, 2005... The most successful investment bankers in the City of London will see significant bonus increases in the new year, but there will be considerable variations and generalised forecasts are proving difficult to make. Search firm Armstrong...

Nomura raises its game.
December 1, 2005... The Japanese bank is hiring and raising its sights in M&A, says new co-head of European investment banking, according to the division's co-head Christian Thun-Hohenstein. He points to a belief that the Japanese economy is improving, a...

Scottish Power independent--for now: Scottish Power rejected E.ON's 11.3bn [pounds sterling] takeover bid on November 18, but the company will probably struggle to preserve its independent status beyond twelve months.(SECTOR REPORTS: FOCUS ON UTILITIES)
December 1, 2005... While financial are split over whether the giant German utility will come back with a hostile bid for Scottish Power--it made a point of not completely closing that door when it announced it had ended talks on an agreed offer--few believe the...

Hedge funds shut out Drax bidders.(SECTOR REPORTS: FOCUS ON UTILITIES)
December 1, 2005... It was the widespread trading in Drax Power's debt after it was restructured nearly two years ago that doomed efforts to acquire the company ahead its planned flotation in mid-December. Andrew Cavenagh reports The last of the three bidding...

RWE sheds water to focus on energy: Giant German utility RWE will look to raise more than 15bn [euro] from the sale of its water businesses in the UK and North America as it switches the prime focus of its activities to the European energy business.(SECTOR REPORTS: FOCUS ON UTILITIES)
December 1, 2005... The water industry had been the move for several months, so the company's announcement on November 4 came as little surprise. Harry Roels, RWE's chief executive officer, said the company believed it was now a "favourable" time to sell the water...

Swiss government to sell 16% Swisscom stake: the Swiss government, owner of two-thirds of Swisscom, plans to sell a stake worth about SFr4.2bn (US$3.2bn) and prepare to change the law so it can dispose of the rest of the former telephone monopoly.(SECTOR REPORTS: FOCUS ON TMT)
December 1, 2005... The Swiss government aims its stake to 50% plus one vote, the minimum the state currently must hold, Finance Minister Hans Rudolf Merz said last month. New legislation clearing the way for a complete sale will take at least two years, the...

WPP won't bid for advertising buyer Aegis.(SECTOR REPORTS: FOCUS ON TMT)
December 1, 2005... WPP Group, the world's second-largest advertising company, has abandoned its pursuit of Aegis Group after the UK media buyer rejected a takeover offer of less than 1.56bn [euro] (US$27bn). The bid from WPP and Hellman & Friedman was "at a...

Swiss Re climbs to reinsurance pinnacle: GE Insurance Solutions acquisitions makes Swiss Re the world's largest reinsurnace company, overtaking Munich Re.(SECTOR REPORTS: FOCUS ON FIG)
December 1, 2005... In a US$6.8bn deal that is set to turn Swiss Re into the world's largest reinsurance company, the Zurich-headquartered reinsurance company announced on November 18 that it was buying Kansas-based General Electric Insurance Solutions from...

Can EU extend merger one-stop rule? Dealmakers have been regularly calling for the EU's one-stop shop merger control regime to be extended.(LEGAL & REGULATORY)
December 1, 2005... Executives and their advisers are continually frustrated in executing major cross-border deals that fall short of the EU's merger jurisdiction. No matter how great the impact a deal has on the operation of the single market, if it falls...

The fall of retail: (US$500M-US$30M): is this Christmas to be the one when everything falls apart for the UK retail sector?(MOVING IN THE MID-MARKETS)
December 1, 2005... I an Armitage, chief executive of the HgCapital says "There are some deals that are in trouble now but we would expect to see the real problems begin in the first six months of next year. If you were the bank, you would let the business trade...

Journey North East: it has been another steady year of M&A for the North East, although, according to some advisers, the traditional mid-market deal flow was weaker than usual and was replaced by a larger number of smaller deals and some bigger-ticket transactions.(FOCUS ON THE NORTH EAST)
December 1, 2005... Acquisition interest in the North East-based car dealership Reg Vardy could push M&A levels in the region to record levels for 2005. By late November, a bid from rival dealership Pendragon valued the company at 420m [pounds sterling] and, if it...

SPACs gain traction: although they are still in their infancy, the latest quoted investment vehicles could provide some genuine competition to the dominance of the private equity limited partnership. The so-called SPAC structure is a concept that never enjoyed much success in the US, where it originated, but the modified European variant is taking off.(PRIVATE EQUITY COLUMN)
December 1, 2005... When there is a glut of liquidity in the market, people will inevitably find new ways of attracting it, and the latest structure to emerge is a highly sector-focused, cash-listed shell that has evolved, not surprisingly, from a US idea. ...

Cadbury Schweppes toasts drinks exit.(BEHIND THE BUYOUTS)
December 1, 2005... Blackstone Group and Lion Capital have agreed to buy UK-based confectioner Cadbury Schweppes' European drinks business for 1.27bn [pounds sterling] (US$2.19bn/1.85bn [euro]), or more than 20% above the next nearest offer and initial...

KKR buys Selenia for US$1bn.(BEHIND THE BUYOUTS)
December 1, 2005... Private equity firm Kohlberg Kravis Roberts (KKR) has agreed to pay more than 835m [euro] (US$1bn) for majority control of FL Selenia, an Italian automotive lubricants manufacturer, in a tertiary buyout from Vestar Capital Partners. The deal is...

Fundraising 2006, a clearer picture emerges.(BEHIND THE BUYOUTS)
December 1, 2005... Although recent figures show that there has been a record US$66bn raised for European private equity in 2005--early indications suggest that 2006 will certainly not be quiet, with limited partners saying that top quartile funds are likely to...

Double acquisition for Bridgepoint.(BEHIND THE BUYOUTS)(Company Profile)
December 1, 2005... Bridgepoint has acquired the third largest casino operator in France in a deal that valued the company at 450m [euro]. The firm has bought Moliflor Loisirs from Legal & General Ventures, Royal Bank Equity Finance and the management team of the...

M&A capital markets roundup: Acquisitions Monthly reviews the financing of the leading M&A transactions during November providing details and pricing on deals.(ACQUISITION FINANCE)
December 1, 2005... * The loan backing gaming group Gala's takeover of bookmaker and gaming group Coral Eurobet has been launched with a record 460m [pounds sterling] mezzanine tranche and a huge institutional carve-out, through mandated lead arrangers and...

The Nordic region--January 2006.(ACQUISITION FINANCE)
December 1, 2005... www.acquisitions-monthly.com The year 2005 has been an exceptional one for private equity in the Nordic region, with several major buyouts pushing deal value up to levels seen in core European markets such as Germany and France. This...

M&A deal data.
December 1, 2005... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 19 October and 18 November. Benelux Target Bidder Sara Lee Corp-Lassie Rice SOS Cuetara SA...

Aquisitions monthly awards 2006: 19th January 2006, The Hilton London.
December 1, 2005... I am delighted to invite you to the 2006 Acquisitions Monthly Annual Awards Dinner. The Acquisitions Monthly Annual Awards are the most coveted in the M&A industry, and the annual gala dinner is acknowledged as the corporate finance event to...

An energetic and competitive market: the mid-markets this year have seen a noticeable uplift, with some hot spots throwing up a number of new market dynamics.(OVERVIEW)
December 1, 2005... "M&A is back," says Richard Grainger, chief executive at Close Brothers Corporate Finance. "There are a lot of people with a lot of money and it is a very competitive market." In many parts of Europe this year the mid-markets are back in...

The UK mid-market group--UBS investment bank.(SPONSORED PROFILE)
December 1, 2005... UBS's mid-market clients receive a tailor-made service from an integrated team, combining local expertise with global reach. With UBS, clients have the full strength and depth of our market-leading capabilities in investment banking corporate...

Private equity, a key driver in mid-market M&A growth: Adrian Haxby, managing director at UBS, reviews some of the trends that have emerged in 2005 and, in particular, looks at the implications of the continuing growth of private equity involvement in UK mid-cap M&A.(SPONSORED ARTICLE)
December 1, 2005... This year has been another bumper one for M&A activity in the UK mid-cap arena. The drivers have been many and varied, including--strong equity markets, good levels of corporate profitability and cash flow, increased corporate confidence, and...

Will it stay or will it go: middle-sized deals are entering a new era of financial sophistication in this liquid private equity-led market. Will the market remain as bullish or will banks pull back on their lending in 2006.(FINANCING)
December 1, 2005... Debt has been abundant in the mid-markets. Organised auctions underpinned by staple financing have led to high pricing and fantastic multiples. In general, good mid-market businesses are being sold for at least 6.5-7.0x Ebitda. The LBOs of...

Fundraising boom.(FINANCING)
December 1, 2005... It took some time for institutional investors to recover from their hangovers after the bursting of the dotcom bubble--but this year, they have demonstrated an unprecedented appetite for private equity. In 2005 alone, more than 50bn [euro]...

Moving on up: as private equity funds continue to migrate up towards the top end of the mid-markets, is there value at the low end which is now being over-looked?(PRIVATE EQUITY)
December 1, 2005... The mid-markets are now seen as a more perfect and sophisticated arena for private equity--especially in the UK. Experienced advisers and the proliferation of organised, efficient auction processes have created an attractive and for some a...

RSM EquiCo.(SPONSORED PROFILE)
December 1, 2005... RSM EquiCo (www.rsmequico. com) is a global provider of investment banking services to companies with annual revenues of up to US$500m. As specialists in advising on mergers and acquisitions and providing access to capital markets, it plays a...

Mission: global growth: 'buying America' is the latest strategy to secure a piece of the world's largest pot--the nearly half-trillion dollar US defence budget.(SPONSORED ARTICLE: RSM EQUICO)(Company Profile)
December 1, 2005... In an effort to secure long-term revenue growth, major European firms are continuing to pursue a market-penetration strategy--buying smaller, innovative US aerospace and defence firms to gain access to lucrative Pentagon contracts. So far, this...

Shelling out on acquisitions: AIM has grown rapidly over the last couple of years and now has ambitions to be the main secondary market in Europe. But what does the private equity community think? Is it a viable exit option? And will the new cash shells being floated be a valuable source of acquisition activity?(AIM)
December 1, 2005... The Alternative Investment Market (AIM) has big plans. It wants to be the world's most successful market for smaller growing businesses. It is now in the process of energetically seeking the support and commitment of the investment community in...

The big four lose comfort zone: the corporate finance arms of the Big Four accountancy firms will have to demonstrate more entrepreneurial zeal.(FINANCIAL ADVISORY)
December 1, 2005... Acountancy is enjoying the limelight as never before. Recent financial scandals, in the eyes of today's fresh graduates at least, have given the profession an edgy glamour that belies its traditionally and image. Yet, as many will ruefully...

Lawyers fight for mid-market deals: firms are using different strategies to succeed in the increasingly competitive market for legal services to the mid-market.(LEGAL ADVISORY)
December 1, 2005... The past year will be remembered by the UK's legal community covering the mid-market for a wave of major mergers (DLA Piper Rudnick Gray Cary, Kirkpatrick & Lockhart Nicholson Graham, and Pinsent Masons); profit hikes among the more dynamic of...

Optimistic predictions: a survey undertaken by Acquisitions Monthly in conjunction with M&A International, a network of advisory firms, reveals an optimistic view of the mid-market.(MID-MARKET SURVEY)
December 1, 2005... A new research report, The European Mid-Market M&A Survey produced by Thomson Financial and M&A International, reveals that mid-market M&A activity is expected to boom in the last quarter of the year. The report surveys the views of...

Speed-dating hots up at mid-market forum in Hamburg.(MID-MARKET SURVEY)
December 1, 2005... Amid the Hanseatic splendour of the Atlantic Hotel in Hamburg near the banks of the River Elbe, attendance at the fifth Mid-Market Forum cemented the importance of the event for mid-market professionals. The Forum, jointly organised by...

Mid-market survey.
December 1, 2005... Mid-Market survey 2. How do you define 'the mid-market'? US$10-150m 24.8% US$10-250m 51.1% ...