Acquisitions Monthly articles from July 2002

Acquisitions Monthly archives from July 2002

Second quarter shows steady improvement. (Insight).(merger and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Merger activity advanced modestly in the second quarter of 2002 compared with the first quarter, but compared with a year ago M&A remained less than robust. According to statistics released by Acquisitions Monthly's parent Thomson...

Synopses of the largest deals in June 2002. (Market intelligence).
July 1, 2002... UK: Network Rail, a government-owned not-for-profit vehicle, agreed to acquire Railtrack PLC, the listed company that owns and operates the UK's railway network infrastructure, from Railtrack Group PLC for 500m [pounds sterling] (US$754m), plus...

Looking to the future: "at this half-way point in the year, what are your predictions for the M&A market for the rest of 2002? What are the main drivers influencing the sale or purchase of companies over the next six months?" (Viewpoints).
July 1, 2002... "At the start of 2002 there was a general belief, or perhaps it was just hopeless optimism, that the recovery would be well under way by the middle of this year and that the economic outlook would be much clearer. In fact, now the outlook is if...

Companies taking a cautious approach; in the first quarter of 2002, the private company price index remained stable at a P/E multiple of 12.2. (Private Company Price Index).(Brief Article)
July 1, 2002... Private company owners looking to sell their business will be considering what this means for them and whether now is the right time to start the sale process. The decisionmaking process may not be helped by continuing uncertainty in world...

Second-quarter revival disappoints: the middle market is no longer a safe refuge as deals fall in number and value. (Half year review).
July 1, 2002... The second quarter brought some relief for the European M&A industry, but not quite as much as was hoped for. Big strategic questions will have to be asked by both bulge-bracket bankers and middle- market specialists alike. "I thought...

Houlihan launches own business in Europe; Houlihan Lokey has hired a prominent utilities banker to run its European business, and is now competing with Close Brothers. (People moves).
July 1, 2002... US corporate finance firm Houlihan Lokey Howard & Zukin is exploiting the growing market for restructuring advisory work by establishing a new London office. Led by managing director John Reynolds, the former co-head of energy investment...

Draper finishes the job. (Institutions).
July 1, 2002... Nick Draper, chairman of European M&A at JP Morgan, has stepped down from his position and moved into a nonexecutive role. He said he wanted a change after he had helped to manage the job of integrating the operations of JP Morgan and Chase...

Escapees join McQueen: ex-HSBC bankers have been joined by Hawkpoint's Clive Baker to set up a boutique specialising in the consumer sector. (People moves).
July 1, 2002... The resilience of the European consumer, leisure and retail sectors has encouraged the creation of a specialist boutique led by a core of ex-HSBC corporate financiers. Luke Withnell, previously a managing director in HSBC's consumer team, Jim...

HSBC finds the money for Bentley. (Institutions).
July 1, 2002... HSBC's embattled investment banking arm has shown recently that is not entirely bereft of money with which to recruit professionals, even if its ability to retain them is in doubt. The corporate finance arm has hired Mark Bentley, the former...

SG reorganises as Brisby retires. (Institutions).
July 1, 2002... Following the revived trend towards focusing on client relationships in investment banking, Societe Generale's corporate and investment banking division--SG--last week announced two structural changes. The bank has created a commercial...

KPMG creates new private equity group. (Institutions).
July 1, 2002... KPMG has created a private equity group with the objective of integrating the professional services required by private equity houses in one team that sits together. The group draws together private equity practitioners from across the firm and...

Airtours: the Commission demolished; the ruling of the EU Court of First Instance (CFI) in Airtours/first choice is stunning. The CFI does not just strike down the European Commission's decision prohibiting the Airtours merger, it takes it apart. (Legal & regulatory).
July 1, 2002... The Commission's decision relied on an expansive interpretation of the EU merger law doctrine of collective dominance and evidence set out in the decision that the British foreign holiday package (FHP) market would tend toward collective...

A hungry market: large-scale deals are not off the agenda for Europe's largest food players this year. Natasha Berg reports on a sector that has suffered less than most from the downturn. (Food sector focus).(Statistical Data Included)
July 1, 2002... While global economic uncertainty has meant a quiet year for most corporate finance professionals, those bankers specialising in M&A in the European food sector are still enjoying a relatively high level of activity. Unusually in this market,...

Heinz spin-off creates uncertainty. (Deal of the month).(Brief Article)(Statistical Data Included)
July 1, 2002... Food experts are divided on whether the spin-off of US-based food producer Heinz's slower growing businesses will pave the way for a second round of deals in the US food industry. Heinz said at the beginning of June it would spin off...

Caveat emptor is bitter TMT cry; these days, buying an American TMT Company is about as reassuring as buying a rolex from a man in Times Square wearing a long overcoat. (TMT sector report).(technology, media, telecommunications)(Statistical Data Included)
July 1, 2002... When the Byzantine counting techniques of American TMT companies start making headlines in British tabloids, something is very badly wrong. In fact, it is hard to think of a financial event that could have done more damage to M&A activity...

Nordic financial institutions keep trying; Nordea has succeeded in selling its general insurance business but other Nordic deals are proving difficult to wrap up. (FIG sector report).(Statistical Data Included)
July 1, 2002... The Nordic region is straining to produce large, strategic M&A deals in an effort to create regional leaders. Tryg i Danmark's 760m [euro] acquisition of the general insurance business of Nordea looked like the area's second biggest financial...

EdF rounds off UK splurge with Seeboard purchase; the French-owned London electricity won the battle for Seeboard on June 18 in a move that has probably brought the curtain down on large-scale mergers and acquisitions in the UK Electricity sector for the time being. (Utilities sector report).(Statistical Data Included)
July 1, 2002... The 1.39bn [pounds sterling] (US$2.13 bn) acquisition (including the assumption of 721.8m [pounds sterling] of debt) has certainly marked the end of Electricite de France's shopping spree in the UK power market. Vincent de Rivaz, the...

Monthly sector analysis.
July 1, 2002... THIS SECTOR ANALYSIS INCLUDES ACQUISITIONS AND BUYOUTS ANNOUNCED DURING JUNE. UK PUBLIC OFFERS COMPLETED BETWEEN THESE DATES ARE INCLUDED, WHEREAS NEW AND PENDING OFFERS ARE EXCLUDED. THE TRANSACTIONS ARE CLASSIFIED ACCORDING TO THE US SIC CODE...

Moving in the mid-markets (US$500m-US$30m).(Statistical Data Included)
July 1, 2002... Overview This month the focus is once more on the North West, and more specifically the City of Manchester. The take-private of Kunick was a bonus for the dwindling hopes of PTP supporters, while in general players feel that activity is...

Kunick bets on public-to-private deal; an unexpected share structure provided complexities during the take-private of a leisure group. (UK deal of the month).(Brief Article)(Statistical Data Included)
July 1, 2002... Gambling is a stock-in-trade of Kunick, the fruit machines and leisure management group. But continuing to operate as a public company has proved a wager too far, and now the independent directors have recommended a bid to take the company...

Turning the corner: Manchester's corporate finance players report that although transactions are taking their time to complete, things are on the up. (Moving in the mid-markets).
July 1, 2002... With the Commonwealth ames dominating the city this summer, sprinting is the order of the day for the people of Manchester. But rather than racing for the finish, the pace of M&A activity seems to be somewhat more leisurely, according to some...

Much needed shake-up in German construction; the acquisition of Rheinhold & Mahla by Bilfinger & Berger provides further evidence that German construction companies need to diversify in order to prevent them going down the same route as bankrupt grint Phillip Holzmann. (European deal of the month).(Brief Article)(Statistical Data Included)
July 1, 2002... The construction market The German construction industry is in a forlorn state. It has endured seven years of negative growth and in March 2002 the second largest, and most well known, company, Philipp Holzmann, filed for insolvency at a...

Basle II leads way for German mid-markets; Basle II looks set to spur on M&A in the German Mittelstand as banks draw back on their credit lending. (Moving in the mid-markets).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... According to corporate financiers in Germany, the main catalyst for change among small to mid-sized companies in the medium term will be the introduction of Basle II. Under the new Basle II ratings banks will be under pressure to reduce...

Business services remain healthy; in a shrinking M&A market the business services sector remained a strong contender in the UK mid-markets last month. (Sector focus).(Brief Article)
July 1, 2002... The business services sector has proved its resilience in the last couple of months with a continuing stream of transactions in the UK. First on the list is Babcock International Group's acquisition of Service Group International (SGI),...

Bunzl exits paper; one of the paper industry's oldest merchants has exited the paper sector with a sale to an Australian counterpart. (Moving in the mid-markets).(Brief Article)(Statistical Data Included)
July 1, 2002... One of the UK's oldest paper merchants exited the market last month with the sale of Bunzl's fine paper distribution arm to PaperlinX of Australia. The company is selling Bunzl Fine Paper to PaperlinX for US$211m. The acquisition consists of...

Consolidation starts for biotechs: the latest deal between Genset and Serono could be the beginning of a wave of consolidation to grip the biotech sector. (Moving in the mid-markets).(Brief Article)
July 1, 2002... In the biotech sector consolidation took hold in June with the acquisition of French genomics pioneer Genset, by Europe's biggest biotech Serono for 138.25m [euro] (US$135.82m). This follows the deal in May between Switzerland's Berna...

Behind the buyouts.(Brief Article)(Statistical Data Included)
July 1, 2002... Overview Leading the buyout news in June was the biggest ever take-private in Irish history, the US$3.5bn PTP of Jefferson Smurfit by Madison Dearborn Partners. In fact, in a month that saw the stock market plunge, private equity was...

Madison agrees terms with Jefferson Smurfit; Jefferson Smurfit agrees to IBO. (Buyout of the month).(Madison Dearborn Partners Inc. acquires Jefferson Smurfit Group PLC; institutional buyout)(Brief Article)
July 1, 2002... US-based buyout house Madison Dearborn Partners has agreed terms with Ireland-based paper and packaging company Jefferson Smurfit in a transaction that values the company at US$3.5bn (3.7bn [euro]). The deal, which will net chief executive...

Reforming private equity fund structures: as Continental European institutions increase their allocations to private equity, the task of creating efficient fund structures is becoming vastly more complicated. Ben Harding discusses with Jonathan Blake, chairman of the EVCA's Tax & Legal Committee and partner at SJ Berwin, how to increase transparency and consistency. (Private equity column).(European Venture Capital Association)(Brief Article)
July 1, 2002... In the last couple of years an important shift has emerged in the way the European private equity industry is funded. Domestic European institutions, especially on the Continent, have gradually been increasing their allocations to the asset...

Mezzanine competition grows; there is more mezzanine debt around but fewer deals. This can only lead to more aggressive pricing. (Behind the buyouts).(Brief Article)
July 1, 2002... Mezzanine debt in 2002 so far has lost none of its impetus as a product. Subordinate debt came into its own last year, providing an alternative to the struggling high-yield market, and has continued to attract investors and users alike....

Tussle continues for Esporta; as Duke Street capital's hostile bid for fitness club operator Esporta reaches the final furlong, Ben Harding speaks to both sides in this increasingly acrimonious war of words. (Behind the buyouts).(Brief Article)
July 1, 2002... Duke Street Capital's hostile bid for fitness clubs operator Esporta has reached a stalemate as the war of words between the two parties continues to rage. Both sides have solidified their opinion on the 80p per share offer, with Duke...

Legrand sale looks probable; US buyout house Kohlberg Kravis Roberts (KKR) is confident that its planned acquisition of French group Legrand will go ahead. (Behind the buyouts).(Brief Article)(Statistical Data Included)
July 1, 2002... US buyout house Kohlberg Kravis Roberts (KKR) is confident that its planned acquisition of French electrical equipment maker Legrand will go ahead, following its recently signed exclusivity agreement with the firm. Sources close to the KKR...

Ethel Austin in US$82.6m IBO deal. (Behind the buyouts).(institutional buyout)(Brief Article)(Statistical Data Included)
July 1, 2002... Lloyds TSB Development Capital, the private equity arm of Lloyds TSB, has led the US$82.6m institutional buyout of Ethel Austin, a discount retailing store business. LDC has provided 11m [pounds sterling] of equity to the deal. Barclays...

RBS provides Priory financing. (Behind the buyouts).(Royal Bank of Scotland PLC funds Doughty Hanson acquisition of Priory Healthcare)(Brief Article)
July 1, 2002... Royal Bank of Scotland (RBS) is providing the debt financing to support the leveraged buyout of Priory Healthcare Group from Westminster Healthcare by Doughty Hanson for 288m [pounds sterling] (US$425m) RBS has confirmed that the 255m...

Shareholders challenge FCX buyout. (Behind the buyouts).(FCX International)(Brief Article)(Statistical Data Included)
July 1, 2002... Management buyouts took an unfamiliar turn in June when an institutional shareholder attempted to block a management buyout bid for specialist engineer FCX that it considered too cheap. As Acquisitions Monthly went to press, the management...

CDR makes biggest single investment; Clayton Dubilier & Rice sees opportunity for further growth in Europe. (Behind the buyouts).
July 1, 2002... Clayton Dubilier & Rice (CDR), the US private equity firm, made its biggest ever single investment in a stand-alone company when it backed last month's 434m [pounds sterling] (670m [euro]) public-to-private buyout of UK food wholesaler Brake...

EVCA managing for sustained growth; reorganization and stabilisation of private equity portfolios has seen valuations decrease from formerly excessive levels. (Behind the buyouts).(European Venture Capital Association)
July 1, 2002... Two years ago, when the European Venture Capital Association's symposium met in Paris, the market looked overheated and the conference was entitled "Is the souffle about to fall?"--in a warning to that effect. Last year in Rome, with...

What fundraising crisis? Candover doubles fund size to 2.7bn [euro]; while the big names in US buyouts falter, the established European private equity houses are continuing to sign off record fundraising efforts. Ben Harding speaks to Candover's Colin Buffin about the attractions of the European market. (Behind the buyouts).(Candover Investments PLC)
July 1, 2002... Candover's raising of a 2.7bn [euro] fund represents a further sign of institutional confidence in the European MBO market. Although raising private equity funds has been very tough over the past year, several high-profile closures point to an...

C&C confirms IPO. (Exits).(Brief Article)(Statistical Data Included)
July 1, 2002... Drinks and snacks group C&C, owned by BC Partners, has announced that it is to float on the Dublin and London stock exchanges on July 10. The IPO will be the largest public flotation in Ireland since Eircom in 1998. The company said it...

Laurel to float. (Exits).(Brief Article)(Statistical Data Included)
July 1, 2002... Morgan Grenfell Private Equity (MGPE) is reported to be lining up its pub group, Laurel, for a stock-market flotation next year. The IPO would be in place of a securitisation, which was rumoured as an alternative exit option for the group. ...

Ratos sells Esselte holding. (Exits).(Brief Article)(Statistical Data Included)
July 1, 2002... Ratos, the listed private equity firm, has completed the sale of its 17% stake in Swedish supplier of office equipment Esselte to JW Childs of the US. The SKr520m (US$56m) sale increases Ratos's shareholders' equity by SKr140m. JW Childs...

CVC set for Laminex exit. (Exits).(CVC Partners; Laminex Group)(Brief Article)(Statistical Data Included)
July 1, 2002... Meanwhile, CVC Partners is pressing ahead with plans for a US$450m flotation of its Australian laminates and wood business, Laminex Group, in July. The IPO would be the second largest this year in Australia, behind the listing of Macquarie...

Schroders secures 242m [euro]. (Funds).(Brief Article)(Statistical Data Included)
July 1, 2002... Schroders has announced the final closing of Schroder Private Equity Fund Of Funds, a Dublin-listed vehicle targeted at both high net worth individuals and larger institutional clients. The vehicle is structured with three different classes of...

Debut CE mezz fund. (Funds).(Central and Eastern European; Mezzanine Management)(Brief Article)(Statistical Data Included)
July 1, 2002... UK-based independent private equity house Mezzanine Management has successfully secured a first closing on its debut Central and Eastern European fund. The fund, Accession Mezzanine Capital (AMC), is the first mezzanine vehicle to focus...

Shrinking Atlas. (Funds).(Atlas Venture)(Brief Article)
July 1, 2002... Global VC firm Atlas Venture is thought to have reacted to the lack of positive deal opportunities by returning capital from its latest fund to its shareholders. The fund, which closed in April 2002 on 1bn [euro], is believed to have been cut...

GI targets mid-market. (Funds).(GermanIncubator Ventures)(Brief Article)
July 1, 2002... GermanIncubator (GI) Ventures, has accompanied a change in strategic direction with a fresh recruitment drive. The Munich-based early-stage investor is expanding into the buyout arena with the launch of a new 100m [euro] target fund. The...

A bumper half year for India: the slowdown seen in 2001 is now history as the first half of 2002 saw a significant pick up in M&A activity in India. (India).(Statistical Data Included)
July 1, 2002... For the first six months of 2002 India Advisory Partners has tracked a total of 433 deals with a value of Rs362bn (US$7.4bn) compared with a similar number of deals valued at Rs302bn for the whole of 2001. While the merger of Reliance...

Benelux. (M&A deal data).(Brief Article)(Statistical Data Included)
July 1, 2002... Benelux Target Bidder Hollandsche Beton Groep Koninklijke BAM Groep (NE) - Construct (NE) - Highway, street, residential buildings paving construction Sales ($): Net Profits Sales...

France. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... France Target Bidder Banque Directe (BNP AXA (FR) - Insurance company Paribas SA) (FR) - Bank (foreign) Sales ($): n/a Net Profits Sales ($): ($): n/a 76,277.10m ...

Germany. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Germany Target Bidder Hamburgische Electricitats - Sweden (SW) Werke (VattenFall/Sweden) - Electric utility; holding company (GM) 25.1% - Electric and gas utility Sales ($): Net Profits...

Italy. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Italy Target Bidder Freedomland Internet Interactive Group Television Network ITN (IT) - Investment company (IT) - Internet TV services Sales ($): n/a Net Profits Sales ($): n/a ...

Nordic. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Nordic Target Bidder Dandy (DN) - Manufacture Cadbury Schweppes (UK) - Produce chewing gum confectionery products Sales ($): n/a Net Profits Sales ($): ($):...

Spain. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Spain Target Bidder Eresmas.com (Retevision SA) France Telecom (FR) - Internet Service (SP) - internet search Provider {ISP} engine services Sales ($): n/a Net Profits Sales ($): ...

Switzerland. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Switzerland Target Bidder RMF Investment Group (SZ) - Man Group (UK) - Fund management & Investment company brokerage services Sales ($): n/a Net Profits Sales ($): 491.60m ...

New bids for UK public companies. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... New Bids for UK Public Companies Definitions: ECM Adviser: The name of the firm providing equity capital markets advice. EPS(p):Earnings per share, in pence, as reported by the company at the accounting year end. ...

Pending bids for UK public companies. (M&A deal data).(mergers and acquisitions)(Brief Article)
July 1, 2002... Pending Bids for UK Public Companies Target Brake Brothers - Wholesale frozen foods Financial Adviser: Credit Suisse First Boston Int/Deloitte & Touche Corp Finance ECM Adviser: Target Lawyer: Simmons &...

Completed bids for UK public companies. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Completed Bids for UK Public Companies Target Enterprise Oil - Oil and gas exploration, production Financial Adviser: Rothschild/Morgan Stanley ECM Adviser: Cazenove/Hoare Govett Target Lawyer: ...

Latin America. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... Latin America Target Bidder Jefferson Smurfit Group (IR) - Madison Dearborn Partners (US) - Manufacture paper, paperboard Investment company Sales ($): Net Profits Sales ($): n/a...

Domestic North American acquisitions. (M&A deal data).
July 1, 2002... Domestic North American Acquisitions Target Bidder AmeriChoice Corp (US) - UnitedHealth Group (US) - Own, Provide health care operate HMO information services Sales ($): n/a Net...

European acquisitions in Asia. (M&A deal data).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
July 1, 2002... European Acquisitions in Asia Target Bidder AUSDOC Group (AU) - Provide ABN-AMRO Holding (NE) - Venture document exchange services capital firm Sales ($): Net Profits ...

Minority stakes. (M&A deal data).(Illustration)
July 1, 2002... Minority stakes This section lists international acquisistions of minority stakes in companies with value of US$50m or more, possibly with a view to obtaining control. Situations concerned with acquisistion of significant stakes are...

Country codes. (M&A deal data).(mergers and acquisitions; acronyms)(Brief Article)
July 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 Austria AU ...