Acquisitions Monthly articles from February 2007

Acquisitions Monthly archives from February 2007

Crunch point: some of Europe's longest running takeover battles, totalling more than 120bn [euro], have seen recent breakthroughs or are nearing crunch points.(EDITORIAL)
February 1, 2007... E.ON, the Duesseldorf-headquartered energy company fighting to acquire Madrid's Endesa since February 2006, when it first announced its surprise 29.1bn [euro] cash offer, is looking forward to finally putting its offer forward to shareholders....

January snapshot: synopses of largest global deals announced last month.(MARKET INTELLIGENCE)
February 1, 2007... US--An investor group comprising Vornado Realty Trust (VR), Starwood Capital Group Global LLC (SC), and Walton Street Capital LLC (WS), said it planned to launch a challenging offer to acquire all the outstanding common stock of Equity Office...

Fall in average premia from previous quarter: fourth-quarter average premia to the target share price one day and one month before the offer or bid talks were announced were 33% and 37% respectively, a fall from the 43% averages seen in the previous quarter.(MARKET INTELLIGENCE)
February 1, 2007... The final quarter of 2006 produced the highest quarterly volume of eligible UK public offers of the year. Twenty-three offers were completed between October and December compared with 21 in the third quarter and 16 during the same quarter in...

GE launches corporate team: new division will focus on backing buyout and refinancing opportunities.(INSTITUTIONS)
February 1, 2007... GE Commercial Finance has launched a corporate team to focus on asset-based and cashflow deals worth up to 200m [pounds sterling]. Tim Hawkins, commercial director of GE's Business Finance unit, told Acquisitions Monthly that the 15-strong...

Panmure Gordon spins off Loudwater: former Citigroup equities man raises US$147m for late-stage investment vehicle, backed by HBOS chairman Lord Stevenson.(INSTITUTIONS)
February 1, 2007... Two market veterans at mid-cap broker Panmure Gordon have raised 75m [pounds sterling] (US$147m) for a vehicle to invest in "companies seeking a flotation or trade sale within a short-term time horizon". Richard Wyatt, who was head of...

German M&A continues to boom: the future outlook for Germany's M&A professionals continues to be promising as Germany's economic indicators are bullish.(FOCUS ON GERMANY)(Cover story)
February 1, 2007... The German economy is experiencing a very strong economic boom not seen since 1990. Besides record export growth, domestic economic activity is also on the rise. The Ifo Business Climate Index for German industry and trade shows that...

German LBOs break all records.(FOCUS ON GERMANY)
February 1, 2007... The second half of 2006 saw buyouts of German companies reach a staggering US$34.6bn, the highest ever recorded for such a period and taking the total of private equity transactions in Germany to about US$43.3bn. This is not surprising...

Loan bonanza boosts German: syndicated loans fuelling German deals have surged to giddy heights.(FOCUS ON GERMANY)
February 1, 2007... German M&A has been supported by an unprecedented level of syndicated loans, catapulting the country to the position of close runner up in the European league table. Almost US$296bn of syndicated loans were signed in 2006, compared to the UK's...

The sting in the tail: as companies have struggled to meet their obligations to occupational pension schemes, so pension funds are playing an increasing role in vetting all types of acquisition activity.(LEGAL & REGULATORY)
February 1, 2007... In 1960 British men reaching the retirement age of 65 could expect to live for another 14 years. Now new male pensioners stand to enjoy an average 23 years of retirement, an increase of 64N. Funding this extended span has created headaches...

Put off by pension deficits? We asked a selection of private equity firms and advisers how they would react to the prospect of acquiring a company with a significant pension deficit.(LEGAL & REGULATORY)
February 1, 2007... "It was only a few years ago that pension deficits were causing potential deals to collapse. In some cases, deficits were even seen as a poison pill that would avert unwarranted approaches. One of the highest profile illustrations of how...

Canadian-backed deals mount up: Canada's pension funds are an expanding force in global M&A.(LEGAL & REGULATORY)
February 1, 2007... Canada can boast of one of the best provided-for countries in its old age. Its plump, but constrained pension funds have been all over global M&A deals in the past year, heading away from their home turf and seeking out non-Canadian assets. ...

Aerospace and airline deals fly in: the UK aerospace market has seen further consolidation in January with the sell-off of Smiths Aerospace, while the Italians are trying to get out of Alitalia.(SECTOR REPORTS: FOCUS ON AEROSPACE)(Industry overview)(Company overview)
February 1, 2007... This year is shaping up to be an exciting one for aerospace. The Chinese are blowing up satellites in space, Boeing is whipping Airbus in the war of the wide-bodied aircraft, while the Italians are hoping they can offload loss-making national...

MAN and Scania end truck dual: German and Swedish truck makers seek "friendly combination", but only after a twisting and turning takeover battle.(SECTOR REPORTS: FOCUS ON AUTOMOBILES)
February 1, 2007... A truck deal has driven all other automotive deals off the front pages in Europe over the past quarter: the hostile takeover attempt by Munich-headquartered, truck, commercial vehicle and transport-related engineering company MAN Group of...

Provident Financial to sell insurance business: UK lender Provident Financial could host a competitive auction after putting its insurance arm up for sale.(SECTOR REPORTS: FOCUS ON FIG)
February 1, 2007... These are busy times for UK sub-prime lender Provident Financial and its advisers. In March, the company will announce further details of the demerger it has been planning since mid-2006, under which it is expected to spin off its international...

EU to spur a change of direction: despite concerns that the unprecedented level of M&A activity among European utilities in 2006 threatens to overvalue companies in the sector--and damage their credit quality--most industry analysts are looking for more strategic cross-border corporate moves this year.(SECTOR REPORTS: FOCUS ON UTILITIES)
February 1, 2007... While the volume of business will be pushed to match that of the last 12 months--when European transactions accounted for 58% of almost US$300bn of deals worldwide-industry watchers believe opportunities for further big acquisitions will arise...

Phenomenal growth fuelling Polish deals: (US$30m-US$500m): a rapidly expanding economy, fuelled by foreign investment attracted to low labour costs, makes this a good time to sell and buy businesses in Poland.(MOVING IN THE MID-MARKETS)
February 1, 2007... Rapid growth across the Polish economy has seen a surge in the number of mid-market deals announced during the first weeks of 2007. So far, five transactions of less than US$500m have taken place worth US$1.06bn, according to data from Thomson...

Warsaw stock market chief planning link-ups.(MOVING IN THE MID MARKETS)
February 1, 2007... Warsaw Stock Exchange president and chief executive Ludwik Sobolewski said he favours consolidation in Central and Eastern Europe stock markets, through takeovers and co-operation. In an interview at the World Economic Forum, Sobolewski...

Good deal: UK private equity houses are betting on some of the best transactions in the North West, but local players too are ready for action.(MOVING IN THE MID-MARKETS: UK REGIONAL REPORT)
February 1, 2007... Dealmakers should hope that Salford-based hotel booking business LateRooms continues to thrive under the new ownership of First Choice Holidays. LateRooms, which sells hotel rooms at a discount online, could be a useful website for private...

Manchester's advisory community takes AIM.(MOVING IN THE MID-MARKETS)
February 1, 2007... Several business advisers in Manchester have carved an enviable niche through their work on London's AIM market. According to Daniel Hall, a partner at law firm Eversheds, this is hardly surprising given the costs of using a local adviser...

Public defenders: FTSE 350 companies could generate almost 200bn [pounds sterling] in surplus cash by 2008. This gives them just two years to work out how best to use the funds to stave off private equity buyouts.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
February 1, 2007... The success of Britain's largest listed companies will generate up to 198bn [pounds sterling] in surplus cash during the next two years--but the FTSE 350 companies have to think now about how they deploy those funds if they want to remain on...

Great expectations: private equity investors expect impressive returns heading into 2007--but the market could be approaching a plateau.(BEHIND THE BUYOUTS)
February 1, 2007... There are more happy times ahead for the global private equity industry if a new survey of limited partners from around the world is believed. Coller Capital's study of 145 limited partners (LPs) suggests that return expectations have...

Candover acquires Parques Reunidos: Spanish theme park operator sold by Advent International.(BEHIND THE BUYOUTS)
February 1, 2007... Spanish theme park operator sold by Advent International Private equity group Candover has confirmed that it has agreed to buy European theme park operator Parques Reunidos from fellow private equity investor Advent International. No price...

Whitbread sells TGI Friday's: British Land, Carlson Restaurants and ABN AMRO Capital buy UK restaurant chain for US$138m.(BEHIND THE BUYOUTS)
February 1, 2007... Leisure group Whitbread has sold its TGI Friday's restaurant chain for 70.4m [pounds sterling] (US$138m) as part of the strategic review of its restaurants business announced last year. The property interests in 15 of the chain's 45 UK...

Private equity refuse to give up on waste; CVC and KKR's acquisition of Van Gansewinkel Groep and its planned merger with AVR is latest move in active European waste sector.(BEHIND THE BUYOUTS)
February 1, 2007... A private equity consortium comprising European buyout firm CVC Capital Partners and US private equity house Kohlberg Kravis Roberts have agreed to acquire all of the outstanding share capital of the Van Gansewinkel Groep, a European waste...

Thames Water.(M&A capital markets review)
February 1, 2007... The 4bn [pounds sterling] loan supporting Macquarie's acquisition of Thames Water will not proceed to a general syndication after a successful senior left the package oversubscribed. Bookrunners are Barclays, Dresdner Kleinwort, HSBC and RBC....

PagesJaunes.(M&A capital markets review)
February 1, 2007... Mandated lead arrangers on PagesJaunes's 3.6bn [euro] debt package have cause for confidence after more than 200 investors attended the bank meetings in London and Paris. The deal is expected to blow out with commitments from institutions...

KION.(M&A capital markets review)
February 1, 2007... The 3.3bn [euro] of debt backing the buyout of KION, the materials handling unit of German industrial gases giant Linde, has launched to general syndication. The deal is the largest buyout of a German company. Barclays, Credit Suisse, Goldman...

General Healthcare Group.(M&A capital markets review)
February 1, 2007... Pricing on the opco debt portion of the 1.815bn [pounds sterling] debt backing the tertiary buyout of General Healthcare Group has been flexed down after the deal closed more than two times oversubscribed, via bookrunner Barclays. Pricing on...

United Biscuits.(M&A capital markets review)
February 1, 2007... The 1.45bn [pounds sterling] loan backing Blackstone and PAI's secondary buyout of United Biscuits has been subject to an aggressive reverse flex after raising a huge oversubscription, via bookrunners Barclays, Goldman Sachs and JPMorgan. All...

H. Starck.(M&A capital markets review)
February 1, 2007... Bookrunners Dresdner Kleinwort and Mizuho Corporate Bank and mandated lead arranger Commerzbank will launch the 960m [pounds sterling] debt supporting the buyout of H. Starck in the New Year. Advent and Carlyle are buying the group from Bayer...

TNT Logistics.(M&A capital markets review)
February 1, 2007... TNT Logistics has wrapped up its 805m [euro] credit facility via leads Credit Suisse, Bear Sterns, ABN AMRO and Goldman Sachs. The financing consists of a 150m [euro] six-year revolver, a 155m [euro] seven-year senior secured synthetic letter...

Azelis.(M&A capital markets review)
February 1, 2007... Dresdner Kleinwort has been mandated to arrange the 315m [euro] debt package supporting 3i's tertiary buyout of Azelis, a European chemical distribution group. Prior to launch, Mizuho Corporate Bank has joined as an mandated lead arranger for...

3i has acquired Azelis from Electra, which bought out the company from Permira back in 2003.(M&A capital markets review)
February 1, 2007... 3i has acquired Azelis from Electra, which bought out the company from Permira back in 2003. Since its formation from a combination between Groupe Arnaud in France and Novorchem Distribuzione in Italy, the company has steadily expanded through...

Basler.(M&A capital markets review)
February 1, 2007... Bookrunner Dresdner Kleinwort has allocated the 215m [euro] debt package baking Triton's buyout of Basler, the Goldback headquartered women's clothing label. The package was a success in syndication resulting in a downward flex of the A and...

Dockwise.(M&A capital markets review)
February 1, 2007... Lehman Brothers and HVB share the mandate to bookrun a circa US$750m loan in connection with 3i's purchase of heavy transport shipping operator Dockwise. Fortis Bank is mandated lead arranger. The deal will comprise senior, second lien and...

Gerflor.(M&A capital markets review)
February 1, 2007... Bookrunner BNP Paribas has closed the 280m [euro] debt package backing AXA Private Equity's secondary buyout of French floor-covering company Gerflor and flexed pricing on the B, C and mezzanine tranches down 25bp after an oversubscription....

Grandi Navi Veloci.(M&A capital markets review)
February 1, 2007... Bookrunners Banca Intesa and Mediobanca have closed the 555m [euro] secured debt facilities financing Investitori Associati's acquisition of Italian cruise and ferry operator Grandi Navi Veloci. Gruppo Capitalia and UniCredit joined as mandate...

Oxo Group.(M&A capital markets review)
February 1, 2007... Commerzbank and UBS have bagged the mandate to bookrun the circa 500m [euro] debt package backing Advent International's buyout of the Oxo Group, the German chemical products and derivatives business of US chemicals group Celanese Corporation....

Regency Entertainment.(M&A capital markets review)
February 1, 2007... Bookrunner Deutsche Bank has closed the 680m [euro] debt package supporting BC Partners' buyout of Regency Entertainment. The facility is understood to be substantially oversubscribed and will allocate over the next week or so. The deal is...

Telepizza.(M&A capital markets review)
February 1, 2007... ING and RBS as mandated lead arrangers have closed the 726m [euro] debt backing Permira's LBO of Telepizza, a Spanish home delivery and take-away fast food company. Following a positive response in syndication the leads have reduced the margins...

Tragus.(M&A capital markets review)
February 1, 2007... Barclays has been mandated to arrange the 225m [pounds sterling] loan backing Blackstone's secondary buyout of UK restaurant operator Tragus from LGV. The financing which will launch next week, comprises a 70m [pounds sterling] eight-year term...

The party continues: the India story continued to attract investors from overseas as well as from within the country in 2006. James Winterbotham and Sridar Swamy of India Advisory Partners write.(COUNTRY REPORT: FOCUES ON INDIA)
February 1, 2007... Corporate finance saw 697 deals worth Rs865bn (US$19bn), a rise of 18% p in deal value over 2005. The average deal size in 2006 was about Rs1,241m (US$28m). While there was a slowdown in deal activity in the second half, the year ended...

M&A deal data.(Company overview)
February 1, 2007... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 16 December 2006 and 15 January 2007. Benelux Target Bidder AZL NV (NE)--Provide ING Grope...