Acquisitions Monthly articles from July 2006

Acquisitions Monthly archives from July 2006

The Mittals arrive.(EDITORIAL)
July 1, 2006... It cannot have been too difficult a decision, to keep the combined Arcelor/Mittal company headquartered in Luxembourg, in Arcelor's splendid HQ where footsteps ring down marble corridors. Maybe the building is a reminder of the lake palaces...

Steel deals to come.(EDITORIAL)
July 1, 2006... Joseph Kinsch, chairman of Arcelor, has never met Roman Abramovich and identifies the Russian with football, not steel However, the immediate question following Arcelor's agreed deal with Mittal Steel is exactly how the Russians will...

Netherlands powerhouse of booming region: the battle for VNU, Arcelor and Euronext gives rise to some general questions about the future of M&A activity in the Benelux region and beyond.(LEAD FEATURE: FOCUS ON BENELUX)
July 1, 2006... By June 2006, the aggregate value of announced foreign acquisitions of Benelux targets amounted to a record US$45.6bn. This was above the value of US$33.8bn recorded in the second half of 2005, which was itself higher than in any previous...

Third most active quarter: European announced M&A volume hits US$905.9bn, with UK, France and Spain the favoured targets. JPMorgan tops announced rankings, while Goldman Sachs maintains position in completions.
July 1, 2006... Global deal making continued to surge in the second quarter of 2006, with announced worldwide M&A volume reaching US$930.4bn during the past three months. The second quarter of 2006 ranked as the third most active quarter, with only the first...

Predictions of the next six months of M&A: we asked leading practitioners to look into their crystal balls and comment on the prospects for M&A for the rest of the year.
July 1, 2006... BANKS "I expect second-half activity to remain robust as many of the drivers of activity we have seen in the first half still exist, including interest rates that are relatively low on an historic basis and easy access to capital. Further,...

June snapshot: synopses of largest global deals announced last month.(MARKET INTELLIGENCE)
July 1, 2006... US Johnson & Johnson Inc (JJ) definitively agreed to acquire Pfizer Consumer Healthcare, a manufacturer and wholesaler of pharmaceutical products, from Pfizer Inc (PI), for US$16.6bn in cash. The transaction was subject to customary closing...

PCPI discount remains low: the narrowing of the multiples paid for private companies compared with their public peers is principally due to increased liquidity in the private company arena.(MARKET INTELLIGENCE)
July 1, 2006... The market for private company transactions remains stable and attractive for those contemplating deals. On the basis of transactions completed in the first three months of this year, price/earnings (P/E) ratios of the FT Non-Financials index...

Generali insures against cross-border invasion: Italy's Generali takes out Toro in 3.85bn [euro] (US$4.8bn) deal, leaving analysts wondering about strategic value.(SECTOR REPORTS: FOCUS ON FIG)
July 1, 2006... Assicurazioni Generali, Italy's Trieste-headquartered blue chip insurer with 24.2bn [euro] gross written premiums in 2005, announced on June 26 an agreement to acquire Turin-based insurer Toro Assicurazioni, in an all-cash deal that "completes...

Resolution stars in back office: closed life fund consolidation comes of age, in European insurance scene short of big-ticket business.(SECTOR REPORTS: FOCUS ON FIG)
July 1, 2006... Resolution, the fast-growing company that specialises in the back office business of running off UK closed insurance funds, has grabbed recent headlines for M&A in the insurance sector. Only three years after its launch in 2003, the company...

Merger mania constrained: regulatory action is threatening to arrest the latest wave of mergers among utilities, as the European Commission steps up its investigation into claims that several leading companies in the sector have indulged in anti-competitive practices.(SECTOR REPORTS: FOCUS ON UTILITIES)
July 1, 2006... While the European Commission launched its detailed antitrust investigation into the operation of the community's gas and electricity markets back in June 2005, it appeared to have raise the stakes in mid-May when officials raided offices of 20...

Leaks pour cold water on Thames deal: regulatory intervention threatens to inhibit the planned sale of Thames Water for the second time this year.(SECTOR REPORTS: FOCUS ON UTILITIES)
July 1, 2006... The UK water regulator warned in June that Thames Water faced a fine of more than 100m [pounds sterling] (US$180m) for repeated failures to meet its targets for reducing the large volumes of water it loses annually through leaking pipes. ...

EMI raises Warner bid to US 4.6bn: regulators' concerns about concentrated market power are now less of an issue because of the changes technology has made to the industry.(SECTOR REPORTS: FOCUS ON TMT)
July 1, 2006... EMI has raised its offer for Warner Music Group to US$4.6bn and rejected a counterbid from the US company, intensifying a six-year struggle to create the world's second-largest record label. Turning down a 320p per share offer from Warner,...

Linklaters elects David Cheyne senior partner: one of Europe's leading M&A lawyers takes the helm at city law firm.(INSTITUTIONS)
July 1, 2006... David Cheyne has been elected as Linklaters' new senior partner, with effect from October 1, for a five-year term. Cheyne is acknowledged as one of Europe's leading M&A lawyers and was global head of the firm's corporate department from 2000 to...

Prominent restructuring lawyer to join Freshfields.(INSTITUTIONS)
July 1, 2006... Restructuring lawyer Nick Segal is to join international law firm Freshfields Bruckhaus Deringer as a partner in its global restructuring and insolvency (R&I) group in mid-August, based in London. Konstantin Mettenheimer, co-senior partner,...

Sutton becomes UK head at PwC: PricewaterhouseCoopers appoints consumer sector chief to head UK business.(INSTITUTIONS)
July 1, 2006... Pricewaterhouse Coopers has appointed Neil Sutton as the new UK head of corporate finance. Sutton, who has been a partner at PwC since 1993, will head up the UK business from July 1. Sutton has most recently led the firm's consumer sector...

De Kerdaniel appointed MD of CDC in Paris.(INSTITUTIONS)
July 1, 2006... CVC Capital Partners has appointed Domnin de Kerdaniel as managing director and Nicolas Moute as a director in the Paris office. De Kerdaniel joins CVC from the 3i LBO team in Paris, where he has worked on public and private investment...

Redmayne seconded to Pensions Regulator.(INSTITUTIONS)
July 1, 2006... Close Brothers has seconded one of its senior professionals to the Pensions Regulator. Darren Redmayne has been seconded to the regulator in a move that reflects Close Brothers' continued commitment to advising companies and pension trustees on...

Anthony Salz joins Rothschild: Rothschild is strengthening its management team with the appointment of Anthony Salz as an executive vice-chairman.(INSTITUTIONS)
July 1, 2006... Salz retired as joint senior partner of Freshfields Bruckhaus Deringer in March 2006 after 30 years with the firm and is currently vice-chairman of the board of governors of the BBC; he is standing down from this role at the end of 2006. He is...

Public and private markets converging: historically, the differences between private and public equity were sharply drawn, but the use of private equity techniques by some public market investors and the rise of secondary and tertiary buyouts are increasing trends.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)(Company overview)
July 1, 2006... The clear distinctions between the private and public equity markets, while still frequently in place, are in some cases beginning to blur and to be replaced by greater convergence. There are several illustrations of this blurring and...

Going public: calls for transparency and the launch of the EVCA's new reporting guidelines dominated the recent EVCA Symposium in Monaco.(BEHIND THE BUYOUTS)
July 1, 2006... There were plenty of private equity players getting hot under the collar at the recent EVCA Symposium in Monaco, but the perspiration was not caused by the unrelenting Riviera sunshine. It seems that the private equity community is feeling...

KKR continues Siemens exit strategy.(BEHIND THE BUYOUTS)
July 1, 2006... US-based buyout firm Kohlberg Kravis Roberts has continued its preparations to exit all seven businesses acquired from Siemens by putting Demag Cranes up for flotation and planning to sell Mannesmann Plastics Machinery to private equity peer...

Cinven and Altice agree UPC France deal.(BEHIND THE BUYOUTS)
July 1, 2006... US media investor Liberty Global has reached a definitive agreement to sell French cable business UPC France to private equity investor Cinven and partner Altice for 1.25bn [euro] (US$1.6bn). The agreement follows a deal struck in March...

CVC and Nomura agree MBO of Skylark.(BEHIND THE BUYOUTS)
July 1, 2006... CVC Asia Pacific, the regional buyout arm of private equity firm CVC Capital Partners, and Japan-based bank Nomura have agreed management buyout of Tokyo-listed restaurant operator Skylark on an enterprise value of more than US$3bn. SNC...

GI partners toasts punch deal.(BEHIND THE BUYOUTS)
July 1, 2006... GI Partners, a US-based buyout firm, has maintained its interest in the drinks industry after agreeing its largest-ever deal in Europe through the offer of 571m [pounds sterling] (US$1.05bn) for 290 managed pubs owned by Punch Taverns. ...

Stone Point Capital buys AXA RE.(BEHIND THE BUYOUTS)
July 1, 2006... Paris Re Holdings, a bid-vehicle sponsored by a consortium of international investors led by US-fund manager Stone Point Capital, has signed a definitive agreement to acquire AXA RE, the reinsurance subsidiary of France's AXA group. The...

A private affair: privatisations and the return of the trade buyer are characterising the mid-markets in the Benelux region in 2006, with the sweet spot being deals in the sub-100m [euro] range.(MOVING IN THE MID-MARKETS: (US$500M-US$30M))
July 1, 2006... Have the mid-markets in the Benelux region been overshadowed by the high-profile activity at the upper end of the market? It appears not. According to players, activity has remained consistent in the mid-markets over the past three years and...

Making a difference: below a set of case studies of recent deals that demonstrates the importance and effectiveness of financial due diligence.(MOVING IN THE MID-MARKETS)
July 1, 2006... Polypipe "An intensely competitive M&A climate has created a sellers' market in which vendors' advisers are glorying by imposing ever more bruising auction processes and pressured timetables. In this environment, it is increasingly...

Tommy Hilfiger.(M&A capital markets review)
July 1, 2006... Tommy Hilfiger is in the market with its 1.115bn [pounds sterling] loan backing its LBO by Apax Partners. Bookrunners are Credit Suisse and Citigroup, with Fortis Bank as mandated lead arranger. The loan is structured as a 190m [euro]...

Carlson Wagonlit.(M&A capital markets review)
July 1, 2006... Carlson Wagonlit is out to market with its 1.195bn [euro] LBO loan, via mandated lead arrangers JPMorgan, Lehman Brothers and Morgan Stanley. One Capital is the sponsor. Debt comprises a 250m [euro] seven-year revolver at 225bp over Euribor, a...

Center Parcs.(M&A capital markets review)
July 1, 2006... Leisure park operator Center Parcs has launched a 240m [pounds sterling] debt package backing Blackstone's buyout of the company through Barclays. Senior debt comprises a 25m [pounds sterling] seven-year A loan at 225bp, a 57.5m [pounds...

Com Hem.(M&A capital markets review)
July 1, 2006... The debt package backing Providence and Carlyle's secondary LBO of Swedish TV operator Com Hem and its subsequent acquisition of UPC Sweden has closed significantly oversubscribed, through Goldman Sachs (bookrunner), Nordea (bookrunner) and SEB...

Eircom.(M&A capital markets review)
July 1, 2006... Mandated lead arrangers Barclays, Credit Suisse, DresdnerKW and JPMorgan are preparing to launch the debt backing Babcock & Brown Capital's circa 2.41bn [euro] bid for Irish telecommunications company Eircom. Babcock & Brown Capital, which owns...

EurotaxGlass International.(M&A capital markets review)
July 1, 2006... EurotaxGlass International has launched a 355m [euro] debt package backing Candover's 480m [euro] secondary buyout of the company. Bank of Scotland is bookrunner. The 257.5m [euro] senior debt comprises a 57.5m [euro] seven-year term loan A at...

Grupo Levantina.(M&A capital markets review)
July 1, 2006... Grupo Levantina has launched a 358m [euro] all-senior debt package in support of its buyout by Impala Capital Partners and Charterhouse Capital Partners through mandated lead arranger and bookrunner BNP Paribas. Debt comprises a 88m [euro]...

Kabel Baden-Wuerttemberg.(M&A capital markets review)
July 1, 2006... Kabel Baden-Wuerttemberg has launched its 1.27bn [euro] loan via bookrunners Morgan Stanley and RBS. The loan is structured as a 110m [euro] seven-year term loan A at 225bp over Euribor, a 270m [euro] eight-year term loan B at 250bp, a 270m...

Wendel Investissement.(M&A capital markets review)
July 1, 2006... Pricing on the 1.945bn [euro] debt package backing Wendel Investissement's buyout of French specialty building materials group Materis has been reverse flexed, through mandated lead arranger BNP Paribas. LBO France is selling the company. The...

Nutrition & Sante.(M&A capital markets review)
July 1, 2006... The 157.5m [euro] debt package backing ABN AMRO Capital France's LBO of Swiss pharmaceuticals and healthcare group Nutrition & Sante has closed heavily oversubscribed through mandated lead arranger and bookrunner Natexis Banques Populaires....

Paroc.(M&A capital markets review)
July 1, 2006... Arcapita has mandated ING to support its buyout of Paroc, the Finnish-based manufacturer of stone wool insulation, from Banc of America Equity Partners. Debt is expected to be in the region of 550m [euro]. Banc of America Equity Partners bought...

Select Service Partner.(M&A capital markets review)
July 1, 2006... Dresdner Bank, Mizuho Corporate Bank and Morgan Stanley have launched to sub-underwriters the 930m [pounds sterling] loan that supports EQT's LBO of the contract cleaning elements of Select Service Partner. The loan comprises a 90m [pounds...

Visma.(M&A capital markets review)
July 1, 2006... Norwegian business software firm Visma is out with a circa 500m [euro] debt package backing its Nkr4.3bn (540m [euro]) buyout by Engel, HgCapital's bid vehicle, through sole bookrunner Citigroup. HgCapital trumped software provider Sage Group's...

VNU.(M&A capital markets review)
July 1, 2006... ABN AMRO, Citigroup, Deutsche Bank, ING, JPMorgan and Lehman Brothers as mandated lead arrangers are preparing to launch the debt package backing the circa 8.7bn [euro] take private of Dutch media company VNU. Valcon Acquisition is the sponsor,...

Warner Howard.(M&A capital markets review)
July 1, 2006... The reverse flex on pricing on PHS Group's 720m [pounds sterling] loan supporting its acquisition of Warner Howard has been approved and the deal has been allocated and signed, via bookrunner Bank of Scotland. joint lead arrangers are Lloyds...

General Healthcare Group (GHG).(M&A capital markets review)
July 1, 2006... Netcare Healthcare has launched its 225m [pounds sterling] loan supporting its equity contribution to the buyout of General Healthcare Group (GHG). Mandated lead arrangers are Barclays and DresdnerKW. The facility is split between a 125m...

Groupe Moniteur.(M&A capital markets review)
July 1, 2006... Groupe Moniteur has launched a 337m [euro] debt package backing its acquisition by Bridgepoint. Calyon and RBS are mandated lead arrangers and bookrunners on the senior debt, and on the mezzanine level with ICG. The 267m [euro] of senior debt...

Azzuri Communications.(M&A capital markets review)
July 1, 2006... Bank of Scotland and Barclays Bank have been mandated as joint bookrunners and mandated lead arrangers to arrange the debt package backing the secondary buyout of Azzuri Communications from 3i by the company's senior management and PPM Capital,...

Chorion.(M&A capital markets review)
July 1, 2006... Chorion has launched a 78.5m [pounds sterling] debt package backing its de-listing by private equity firm 3i, through sole bookrunner GE Commercial Finance. The senior debt comprises a 13m [pounds sterling] seven-year term loan A at 225bp, a...

Seves.(M&A capital markets review)
July 1, 2006... Italian glass company Seves' 305m [euro] LBO loan has closed oversubscribed, through mandated lead arrangers BNP Paribas, Banca Intesa and ING. The transaction backs the buyout of Seres by private equity groups Athena, Ergon and Vestar. The...

M+WZander Holding.(M&A capital markets review)
July 1, 2006... M+WZander Holding is in the market with a 310m [euro] loan to back its Springwater Capital's buyout of the company, via mandated lead arranger LBBW. The 280m [euro] of senior debt comprises senior and revolving elements of seven, eight and nine...

Hellerman Tyton.(M&A capital markets review)
July 1, 2006... Pricing has been flexed down on the B and C loan and the mezzanine facility of Hellerman Tyton's 210m [pounds sterling] oversubscribed debt package backing its buyout by Doughty Hanson, through sole bookrunner RBS. Post-flex senior debt...

M&A deal data.
July 1, 2006... M&A DEAL DATA This country analysis included acquisitions and buyouts announced between 16 May 2006 and 19 June 2006. Benelux Target Bidder ABN-AMRO Holdings NV--Securities UBS AG (SZ)--Bank;...