Acquisitions Monthly articles from January 2007

Acquisitions Monthly archives from January 2007

Prospects slim of foreign bids for UK banks.(EDITORIAL)
January 1, 2007... Banking analysts are casting doubt on whether 2007 will see a raft of foreign bids for the UK banking sector, despite repeated speculation that overseas predators are on the verge of launching a number of mega-bids for some of Britain's...

Global M&A breaks 2000 record: European M&A volume surpasses US$1.7trn following year of mega-mergers.
January 1, 2007... Global announced merger and acquisition activity reached a record of US$3.8trn in 2006, an increase of 37.9% over 2005, surpassing the previous record of US$3.4trn set in 2000. The fourth quarter was the busiest in 2006, as deals announced in...

Statoil, a majority-owned unit of the Norwegian government, has agreed to merge with Norsk Hydro, an Oslo-based oil and gas exploration and production company, in a stock-swap transaction valued at NKr191.889bn (US$30.793bn.(NORWAY)
January 1, 2007... Statoil, a majority-owned unit of the Norwegian government, has agreed to merge with Norsk Hydro, an Oslo-based oil and gas exploration and production company, in a stock-swap transaction valued at NKr191.889bn (US$30.793bn. Statoil offered...

Express Scripts Inc (ES) said it planned to launch an unsolicited challenging takeover offer to acquire all the outstanding common stock of Caremark Rx Inc (CR), a provider of prescription benefit management services, therapeutic pharmaceutical services, and associated disease management programme services, in a stock-swap transaction valued at US$24.948bn.(US)
January 1, 2007... Express Scripts Inc (ES) said it planned to launch an unsolicited challenging takeover offer to acquire all the outstanding common stock of Caremark Rx Inc (CR), a provider of prescription benefit management services, therapeutic pharmaceutical...

Penn National Gaming Inc (PN) said it planned to launch an unsolicited challenging offer to acquire all the outstanding common stock of Harrah's Entertainment Inc (HE), an owner and operator of casinos and hotels, for US$87 in cash per share, or a total value of US$16.533bn.(US)
January 1, 2007... Penn National Gaming Inc (PN) said it planned to launch an unsolicited challenging offer to acquire all the outstanding common stock of Harrah's Entertainment Inc (HE), an owner and operator of casinos and hotels, for US$87 in cash per share,...

Bank of New York Co Inc (BN) has definitively agreed to merge with Mellon Financial Corp (MF) of Pittsburgh, Pennsylvania, a bank holding company, to form Bank of New York Mellon Corp (BM) in a stock-swap transaction valued at US$15.68bn.(US)
January 1, 2007... Bank of New York Co Inc (BN) has definitively agreed to merge with Mellon Financial Corp (MF) of Pittsburgh, Pennsylvania, a bank holding company, to form Bank of New York Mellon Corp (BM) in a stock-swap transaction valued at US$15.68bn. MF...

JTI (UK) Management Ltd (JM), a new company formed by Japan Tobacco Inc for the purpose of making an acquisition, has agreed to launch a tender offer to acquire the entire ordinary share capital of Gallaher Group PLC (GG).(UK)
January 1, 2007... JTI (UK) Management Ltd (J-M), a new company formed by Japan Tobacco Inc for the purpose of making an acquisition, has agreed to launch a tender offer to acquire the entire ordinary share capital of Gallaher Group PLC (GG), a Weybridge-based...

An investor group comprising Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Texas Pacific Group and Dane A Miller, one of Biomet's founders, has agreed to acquire all of the outstanding common stock of Biomet Inc.(US)
January 1, 2007... An investor group comprising Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Texas Pacific Group and Dane A Miller, one of Biomet's founders, has agreed to acquire all of the outstanding common stock of Biomet Inc, a...

Apollo Management LP, a unit of Apollo Advisors LP, has definitively agreed to acquire all the outstanding common stock of Realogy Corp (RC).(US)
January 1, 2007... US -- Apollo Management LP, a unit of Apollo Advisors LP, has definitively agreed to acquire all the outstanding common stock of Realogy Corp (RC), a real estate agency, for US$30 in cash per share, or a total value of US$9.367bn including the...

Top 10 global deals announced in December 2006.(MARKET INTELLIGENCE)
January 1, 2007... TOP 10 GLOBAL DEALS ANNOUNCED IN DECEMBER 2006 Date ann Target Target advisers 18/12/06 Norsk Hydro ASA (NO) Goldman Sachs, Lehman Brothers 18/12/06...

Happy medium: big isn't always best when it comes to deals--smaller transactions could yield better results when handled efficiently.(MARKET INTELLIGENCE)
January 1, 2007... Dealmakers have heard it all before--M&A destroys shareholder value. The maxim has been trotted out so many times that it is no longer surprising when experts claim most transactions fail to deliver the expected synergies or boost value for...

Editorial calendar for 2007.(MARKET INTELLIGENCE)(Calendar)
January 1, 2007... Editorial Calendar for 2007 www.agm-e.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 finance, Asset based...

The icemen cometh: how Iceland's investors are turning pipedreams into overseas reality.(FOCUS ON ICELAND)(Cover story)
January 1, 2007... Over a coffee, an international financial sponsor posed the question: "Where do they get their money from?" He was talking about Iceland--a country of 300,000 people with an average age of 34, a financial elite of at least 10 and a lot of the...

Insurers jockey to buy out pensions: pension problems have crippled M&A deals and hang like lead weights around many takeover target companies. Insurers, banks and dedicated start-ups are seizing the opportunity to create solutions.(FOCUS ON INSURANCE)
January 1, 2007... British Airways took off in the new year with a share price rise of 13p to 540.5p at the close of London Stock Market trading on January 2. The modest rise was attributed to the prospect of airline consolidation, as well as lower oil prices....

National power to reign in Spain: Spain will remain the focus of corporate activity among European energy utilities in the first half of 2007, as the two companies that dominate the country's power sector attempt to complete strategic takeovers that could finally pave the way for further meaningful consolidation in the industry.(SECTOR REPORTS: FOCUS ON UTILITIES)
January 1, 2007... The final month of 2006 witnessed important developments in the prospective acquisitions involving Endesa and Iberdrola, which command over 70% of Spain's power generation and distribution markets between them. Perhaps the most significant...

Saban group triples its money on ProSiebenSat.1 Media: Saban Capital benefits from sale of ProSiebenSat.1 stake but analysts are divided over the outlook for P7S1.(SECTOR REPORTS: TMT SECTOR REPORT)
January 1, 2007... Funds led by Saban Capital Group agreed to sell a 50.5% stake in the German broadcasting group ProSiebenSat.1 Media (PVS1) for 3.1bn [euro], valuing the company at 5.9bn [euro] (US$7.8bn). Holding company German Media Partners (GMP) agreed...

Addleshaw Goddard bolsters private equity team: Andrew Carpenter joins law firm as head of private equity practice.(INSTITUTIONS)
January 1, 2007... Andrew Carpenter is to be tasked with developing law firm Addleshaw Goddard's private equity work--he specialises in acting for institutional investors but also has experience of investee companies and management teams. The firm wants to boost...

Blackstone poaches Gudgeon: leading restructuring adviser leaves Close Brothers Corporate Finance for advisory arm of US private equity firm.(INSTITUTIONS)
January 1, 2007... Martin Gudgeon, one of London's foremost restructuring figures, has quit the chief executive role at Close Brothers Corporate Finance that he was appointed to just four months ago. He has defected to US private equity giant Blackstone to launch...

Trade buyers better placed to acquire: private equity buyers could face increased competition from corporate purchasers over the coming year, according to a new study by KPMG Corporate Finance.(PRIVATE EQUITY COLUMN)
January 1, 2007... A study by KPMG Corporate Finance has found that companies in the FTSE 350 Index, representing the had an average lower cost of capital than private equity houses that concentrate on deals of the same size, above 500m [pounds sterling]...

On borrowed dimes: the US still leads the way when it comes to asset-based lending. But European countries could do worse than look to the UK's mid-market when using it to back deals.(BEHIND THE BUYOUTS)
January 1, 2007... Geoffrey the Giraffe owes a lot to asset-based lending. In 2004, US retail chain Toys R Us--of which Geoffrey is the much-loved mascot--faced falling sales and increased competition. It closed stores, toyed with the idea of selling part of the...

Viewpoints on debt.(BEHIND THE BUYOUTS)
January 1, 2007... Do you predict that the pace of the LBO market will slow down over the next year, increase or stay the same? What are the reasons behind your answer? What kind of debt are you mostly syndicating? What percentage would be senior, second lien,...

Husqvarna to acquire GARDENA: Industri Kapital doubles its money as it exits German garden tool maker in US$963m deal.(BEHIND THE BUYOUTS)
January 1, 2007... Husqvarna, a Swedish manufacturer of gardening equipment, has agreed to acquire German gardening tool company GARDENA from Industri Kapital for 730m [euro] (US$963m), four years after the private equity house bought the company for 296.4m...

SMIF sold to Land Securities: infrastructure fund sold by STAR Capital Partners to FTSE 100 property group for US$1.82bn.(BEHIND THE BUYOUTS)
January 1, 2007... Listed real estate manager Land Securities has expanded its presence in the hot infrastructure area through the purchase of the Secondary Market Infrastructure Fund (SMIF) for an enterprise value of 927m [pounds sterling] (US$1.82bn). Equity...

PPM Capital recruited for orizon buyout: Private equity arm of Prudential purchases German temp recruitment agency for US$233m.(BEHIND THE BUYOUTS)
January 1, 2007... PPM Capital, the private equity arm of financial services group Prudential, has acquired German temp recruitment agency orizon and announced that portfolio company European Dental Partners has bought German dental laboratory InteraDent...

FedEx buys ANC: global delivery group acquires UK operation from LDC and management.(BEHIND THE BUYOUT)
January 1, 2007... Leading US logistics company FedEx has bought smaller UK group ANC for an estimated 120m [pounds sterling] (US$234m). ANC was established 25 years ago and received 37.3m [pounds sterling] funding from a variety of sources this February. ...

Biomet bought out for US$10.9bn.(BEHIND THE BUYOUT)
January 1, 2007... Medical device maker acquired by Blackstone, Goldman Sachs, KKR and TPG Biomet, the US maker of musculo-skeletal medical devices, has been sold to a private equity consortium comprising Blackstone Group, Goldman Sachs Capital Partners,...

Cerberus knock-out bid for Bawag.(BEHIND THE BUYOUT)
January 1, 2007... Cerberus consortium will pay US$4.2bn and promises only to dispose of non-banking units The auction of troubled Austrian financial services group Bawag has beaten all expectations. A steering committee headed by the Austrian Trade Union...

Blackstone tucks into UK restaurant chain: US private equity firm buys owner of Cafe Rouge and Bella Italia for US$522m.(BEHIND THE BUYOUTS)
January 1, 2007... Tragus, a UK restaurant chain operator, has been sold to US private equity firm Blackstone Group in a 267m [pounds sterling] (US$522m) tertiary buyout. Legal & General Ventures (LGV), the buyout arm of the UK insurer, sold Tragus, which...

Doughty Hanson buys bus operator Avanza: private equity bidder beats competition for its first Spanish buyout.(BEHIND THE BUYOUTS)
January 1, 2007... Private equity bidder Doughty Hanson has won the auction to buy family-owned Spanish bus operator Avanza, which has a 4% share of the Spanish market and is thought to be worth about 600m [euro] (US$790m). Madrid-based Avanza is Spain's...

LBO France acquires Consolis.(BEHIND THE BUYOUTS)
January 1, 2007... Industri Kapital exits Belgian concrete business Private equity house LBO France has bought Belgian prefabricated concrete specialist Consolis from Industri Kapital for an undisclosed sum. Consolis has sales of 1.2bn [euro] (US$1.5bn)...

Pearson sells Government Solutions: UK publishing group divests US outsourcing business and will make acquisitions with proceeds.(BEHIND THE BUYOUTS)
January 1, 2007... London-listed publisher Pearson has sold its government services business to US private equity firm Veritas Capital for an initial US$560m in cash. The price represents 12.2 times the operating profits of US$46m that Government Solutions...

Abertis buys into Eutelsat for US$1.42bn: Spain's Abertis acquires 32% stake in European satellite operator.(BEHIND THE BUYOUTS)
January 1, 2007... Abertis, the Spanish airports to motorways company, said it had bought a 32% stake in Eutelsat, the world's third largest satellite player, for 1.07bn [euro] (US$1.42bn). At 15.5 [euro] per share, Abertis Telecom has agreed to buy out...

Apax buys into Nordic garden centres: Swedish private equity firm sells Plantasjen to Apax Partners after tripling sales in five years.(BEHIND THE BUYOUTS)
January 1, 2007... Nordic buyout house EQT has sold its investment in Plantasjen, a garden chain centre with 72 stores across Norway, Sweden and Finland. Global private equity firm Apax Partners was the buyer. Transaction terms were not disclosed. Apax...

First Choice buys online hotel specialist.(BEHIND THE BUYOUTS)
January 1, 2007... First Choice Holidays has bought online hotels specialist LateRooms from UK mid-market private equity firm ECI Partners in a transaction valued at 108m [pounds sterling] (US$213m). The sale represents a money multiple of more than nine...

3i, buys into Dockwise.(BEHIND THE BUYOUTS)
January 1, 2007... Dockwise Transport, a Dutch heavy transportation company, has been bought out from offshore services company Heerema Group and Norwegian maritime business Wilh Wilhemsen by London-listed private equity house 3i. 3i acquired Dockwise, which...

Top 10 European target buyside financial sponser deals 1995-2006 YTD: excl. airport dev acq of BAA.(BEHIND THE BUYOUTS)
January 1, 2007... TOP 10 EUROPEAN TARGET BUYSIDE FINANCIAL SPONSER DEALS 1995-2006 YTD Excl. airport dev acq of BAA Rank value Date effective/ (US$m) Rank date unconditional Target name Status 11,286.81 16/01/06 ...

European private equity house ranking 2006: excl. airport dev acq of BAA.(BEHIND THE BUYOUTS)
January 1, 2007... EUROPEAN PRIVATE EQUITY HOUSE RANKING 2006 Excl. Airport dev acq of BAA Acquiror/investor name Rank value (US$m) Rank No of deals Kohlberg Kravis Roberts & Co 27,548.9 1 5 AlpInvest Partners NV...

UK private equity house ranking 2006: excl. airport dev acq of BAA.(BEHIND THE BUYOUTS)
January 1, 2007... UK PRIVATE EQUITY HOUSE RANKING 2006 Excl. Airport dev acq of BAA Acquiror/investor name Rank value (US$m) Rank No of deals 3i Group PLC 12,494.1 1 4 Colonial First State Global...

Ireland's property players find new opportunities in M&A: M&A activity in Ireland grew by 26% in 2006, Eircom was bought yet again and Michael O'Leary had his wings clipped trying to takeover Aer Lingus.(COUNTRY REPORT: FOCUS ON IRELAND)
January 1, 2007... Continued growth in the value of the Irish M&A market saw a close to record value of deals announced in 2006. Transactions with an aggregate value of close to US$19bn had been announced by the end of December, about 26% higher than the...

M&A Deal data: this country analysis included acquisitions and buyouts announced between 20 November 2006 and 15 December 2006.
January 1, 2007... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 20 November 2006 and 15 December 2006. Benelux Target Bidder Koninklijke Wessanen NV JP...

Feeding frenzy: it has been another active year for deals in the mid-market across Europe but there are signs that the current cycle is maturing.(OVERVIEW)
January 1, 2007... Over the past year the FTSE 100 Index of leading UK companies has risen by 14% but the FTSE 250, representing mid-cap businesses worth between 300m [pounds sterling] and 3bn [pounds sterling], has soared by 30% as a swathe of such companies...

Building relationships: as the bulge bracket scene comes under tougher scrutiny, the upper mid-market private equity houses are keen to emphasise their traditional mid-market roots.(PRIVATE EQUITY)
January 1, 2007... Private equity has come under increasing public scrutiny lately. Most of this attention has focused on larger deals but its effect has also been felt in the mid-market, particularly at the upper end. The mid-market is, of course, a loosely...

Making deals work: private equity firms doing deals of less than 250m [pounds sterling] have to be prepared to manage their investments actively if they want to make above average returns.(PRIVATE EQUITY)
January 1, 2007... The boom that private equity has witnessed in the past two years has put an increasing focus on two themes: large buyouts and the steadily returning technology venture capital space. But outside the media glare, the lower mid-market, generally...

M&A activity in the TMT sector--the 'perfect storm'? Robin Jowitt, M&A partner in the Technology, Communications & Entertainment practice at Ernst & Young looks at M&A activity in telecoms, media and technology sector--a market that is currently delivering many exciting deal opportunities.(SPONSORED ARTICLE: ERNST & YOUNG)
January 1, 2007... A 'perfect storm' is defined as a situation where, by the confluence of specific events, what might have been a minor issue is magnified. In such a situation, if one element were to be removed from the mix, the whole matter would collapse;...

Picking the right fight: tenacious trade buyers continue to make their presence felt in the mid-market. But companies with private equity backing as well as overseas competitors are proving a force to be reckoned with.(TRADE BUYERS)
January 1, 2007... Have no illusions; even the most determined corporate dealmaker relies on a little serendipity as well as strategy when it comes to finding targets. Just ask Martin St Quinton, chief executive of acquisitive voice and data consultancy Azzurri...

Selling risk in the mid-market: Martin Mendelssohn and Thomas Meyding review some recent trends in legal practice which have seen sellers passing risk to purchasers in the mid-market.(SPONSORED ARTICLE: CMS)
January 1, 2007... The last 18 months have seen the consolidation of various seller friendly legal practices in the mid-market. This article considers the application of some of those practices in Europe, particularly in its two biggest M&A markets, UK and...

Boutiques branching out: a flurry of independent corporate finance houses have started trading this year after seeing the success of several sector-focused boutiques advising ever larger clients.(FINANCIAL BOUTIQUES)
January 1, 2007... This year's buoyant M&A market has encouraged a number of boutiques--or "independent corporate finance houses"--to enter the flay. Veteran banker Joseph Perella launched Perella Weinberg Partners in June with offices in New York and London, and...

Increased specialisation among advisers: league tables from Thomson Financial for January 1 to December 8 2006 show a shrinking of the mid-market advisory sector with fewer participants and an increased sector focus.(FINANCIAL ADVISORY)
January 1, 2007... When asked to defend themselves against boutiques, investment banks and the large accountancy firms nearly always point towards large global networks. How can a small group of people with one office in the West End compete with that? they ask....

Mid-market class acts: while many top-tier players in our legal league tables have handled transactions of a higher value, we concentrate on the middle market.(LEGAL ADVISORY)
January 1, 2007... DLA Piper remains a serious player in mid-market M&A, consistently ranking among the top players by volume in domestic deals. Among the firm's deals, highlights include advising Duke Street and Englefield Capital on the take-private of Cox...

Ernst & Young.(SPONSORED PROFILE)
January 1, 2007... Ernst & Young has a dedicated and integrated mid-market corporate finance team, supported by industry sector expertise, and the strength and depth of a national and international network. The firm is committed to delivering maximum value...