Acquisitions Monthly articles from July 2007

Acquisitions Monthly archives from July 2007

Private equity winning tax argument.(EDITORIAL)
July 1, 2007... The appearance of four representatives of the private equity industry before the Treasury Select Committee last month did not prove as disastrous for the buyout kings as had been predicted. It is said that to understand all is to forgive...

Happy couple.(EDITORIAL)
July 1, 2007... The merger of Saga and the AA might seem a strange coupling. On the one hand is a company known for selling financial products and holidays to the over-50s. On the other is a motoring services group whose yellow vans can normally be seen...

Global M&A on target for new record: ongoing mega-deal speculation, increased institutional liquidity and sector-wide consolidation stand to make the second half of 2007 highly charged.(HALF-YEAR REVIEW)
July 1, 2007... Last year's worldwide M&A volumes looked hard to beat at the end of 2006 but at the halfway stage, 2007 looks it could be well on its way to doing so. The figures speak for themselves; worldwide M&A volumes totalled US$2.33trn (1.75trn [euro])...

June snapshot: the largest European deal by value was Dutch chemical group Akzo Nobel's rejected US$14.2bn offer for UK rival ICI. The next biggest was the sale of Germany's Landesbank Berlin to German saving banks association DSGV. The US$7.1 bn deal means the target remains publicly owned. Synopses of the largest global deals announced last month follow.(MARKET INTELLIGENCE)
July 1, 2007... BERMUDA: BC Partners Ltd agreed to acquire a 76% interest in Intelsat Ltd (IL), a provider of satellite communications services, from Apax Partners Inc, Apollo Advisor LP, Madison Dearborn Partners LLC and Permira Advisors Ltd for US$16bn in a...

The sprawling money trees of debt: despite high yields and interest rate hikes, liquidity is still abundant for M&A.(ACQUISITION FINANCE)
July 1, 2007... They say money doesn't grow on trees. In the current climate, it seems to be the case that it does. The world is buzzing with liquidity, which is spurring on M&A activity in ever increasing volumes. Despite rising interest rates, there are no...

Money talks: the UK's asset-based lenders want private equity firms to embrace their funding. It will take time and effort.(ACQUISITION FINANCE: ASSET-BASED LENDING)
July 1, 2007... Envy may be an unpleasant emotion, but Europe's asset-based lenders could be forgiven for feeling a slight twinge when they consider their US peers. As its name suggests, asset-based lending (ABL) involves companies borrowing money secured...

Vivarte.(M&A capital markets review)
July 1, 2007... * Bookrunners Goldman Sachs and RBS have gone out to investors with a structural and pricing flex request on the 2.74bn [euro] LBO financing of French retailer Vivarte. Structural and price flexing has become unremarkable in the European...

ProSiebenSat.1 Media (P7S1).(M&A capital markets review)
July 1, 2007... * Bookrunners are out with a pricing flex across all hold-co tranches of the 7.9bn [euro] debt package backing the merger of ProSiebenSat.1 Media 1P7Sl1 and SBS. The total package includes the assumption of 3.3bn [euro] of debt at the hold-co...

Lafarge Roofing.(M&A capital markets review)
July 1, 2007... * Lafarge Roofing has completed the second reverse flex request on its oversubscribed 2.38bn [euro] LBO financing after almost no investors dropped out after the first flex request. Bookrunners across the whole facility are BNP Paribas and...

Saur.(M&A capital markets review)
July 1, 2007... * Bookrunner BNP Paribas is out to senior lenders with the 1.94bn [euro] debt package supporting the buyout of French water, energy and waste management company Saur. The business was sold by private equity group PAI to a consortium comprised...

Provimi.(M&A capital markets review)
July 1, 2007... * The 1.16bn [euro] financing backing Permira's secondary buyout of Provimi has closed through bookrunners ABN AMRO, Credit Suisse and JPMorgan. The facility has closed oversubscribed and the leads have reversed flexed the terms as a result....

JPMorgan, Lehman Brothers and Morgan Stanley as mandated lead arrangers are out with the 1.25bn [euro] debt package supporting Blackstone's secondary buyout of Kloeckner Pentaplast from Cinven.(M&A capital markets review)
July 1, 2007... * JPMorgan, Lehman Brothers and Morgan Stanley as mandated lead arrangers are out with the 1.25bn [euro] debt package supporting Blackstone's secondary buyout of Kloeckner Pentaplast from Cinven. Senior debt is split between a 65m [euro] seven...

Incisive Media.(M&A capital markets review)
July 1, 2007... * Incisive Media's 222.3m [pounds sterling] LBO loan has flexed down through bookrunner RBS. Post flex, the debt is now split between a 72.4m [pounds sterling] eight-year term loan B paying 237.5bp over Libor, down from 250bp; a 72.4m [pounds...

Bulgarian Telecommunications Company (BTC).(M&A capital markets review)
July 1, 2007... * Bulgarian Telecommunications Company (BTC) has mandated RBS on the loan of around E1bn that will back the buy-out of 65% of BTC by AIG Global Investment Group. The sale of the stake in BTC, which is the former state-owned monopoly telecom...

Diana Ingredients.(M&A capital markets review)
July 1, 2007... * The loan backing the tertiary buy-out of Diana Ingredients by Axa Private Equity has been mandated to BNP Paribas and RBS. Axa is paying 710m [euro] to buy Diana Ingredients, which is a French food products maker from Cognetas, which acquired...

Ceva Sante Animale.(M&A capital markets review)
July 1, 2007... * Natixis, which is arranging and fully underwriting an 433m [euro] debt package backing the secondary buyout of Ceva Sante Animale, has been joined by Barclays as MIA and bookrunner on the senior tranche. The facility includes 368m [euro] of...

Day International.(M&A capital markets review)
July 1, 2007... * Printing system business Flint Group has wrapped up its US$560m and 33m [euro] add-on to fund its acquisition of Day International, via mandated lead arranger JPMorgan. CVC is the sponsor. The add-on involves a new US$560m eight-year term...

Canal Digitaal.(M&A capital markets review)
July 1, 2007... * Canal Digitaal is to see a flex on its 250m [euro] loan, mandated to Rabobank and RBS. Following the 12.5bp flex on the term loan B, the debt will comprise a 100m [euro] seven-year term loan A at 187.5bp over Euribor and a E150m eight-year...

Euro-Druckservice (EDS).(M&A capital markets review)
July 1, 2007... * Dresdner Kleinwort is out with the 150m [euro] senior and mezzanine debt package supporting the buyout of Euro-Druckservice (EDS). 3i is supporting the deal. Debt is split between a 15m [euro] seven-year term loan A paying 212.5bp over Libor,...

Fat Face.(M&A capital markets review)
July 1, 2007... * BNP Paribas has launched syndication of a 210m [pounds sterling] facility backing Bridgepoint's 360m [pounds sterling] buyout of UK fashion retailer Fat Face. Banks are invited to join on a single 15m [pounds sterling] ticket paying 75bp. The...

Taking politics out of Italian M&A: the UniCredit-Capitalia merger has been held up as an example of market forces, not politics, but how far does Italy's market culture reach?(REGIONAL REPORT ON ITALY)(Cover story)
July 1, 2007... A modern financial system does not tolerate the mixing of politics and financing. So spoke Mario Draghi, Governor of the Bank of Italy, in his concluding remarks to the central bank's ordinary meeting of shareholders in Rome at the end of May...

Booming Italy: the Italian private equity scene may still lag behind its European cousins, but increased interest from the big buyout firms and a wealth of opportunities in the mid-market stands it in good stead.(LEAD FEATURE: REGIONAL REPORT ON ITALY)
July 1, 2007... Research indicates substantial employment, revenue and Ebitda growth at private equity buyout-backed Italian companies, with a number of pan-European buyout groups having set up shop in the country in the past few years. Despite this, the...

Uranium is hot property: the price of uranium has rocketed over the last year on expectations of a substantial revival of nuclear power on both sides of the Atlantic. Companies that are mining--or planning to mine--the commodity increasingly are of interest to investors.(SECTOR REPORTS: FOCUS ON NATURAL RESOURCES)
July 1, 2007... The trebling of the spot price of uranium to US$140 a pound over the last 12 months--and it was languishing at just US$10 four years ago--has already led to a surge of takeovers in the sector, particularly among the middle-ranking companies....

Oil and gas consolidation almost run its course: the era for creating ever bigger super-major oil and gas companies may have reached its peak for the time being. But among the second tier players there are still opportunities for mergers and acquisition activity. Justin Pugsley reports from The Hague.(SECTOR REPORTS: FOCUS ON NATURAL RESOURCES)
July 1, 2007... Consolidation among the largest players in the oil and gas sector has quite possibly reached its zenith, despite frequent speculation to the contrary. Even though there is a dearth of obvious candidates, analysts reckon there are a few...

Borsa Italiana picks London: the Italian stock exchange faced little choice but to merge--although it held off long enough.(SECTOR REPORTS: FOCUS ON FIG)
July 1, 2007... The Anglo-Italian merger etween the London tuck Exchange and its aller, Continental counrpart Bursa Italiana, which promises to create a combined stock e xchange with a market value of 3.9bn [pounds sterling] (5.8bn [euro]), was unveiled on...

Google keen to spend: a new wave of web companies are changing hands at eye-watering multiples and large corporate acquirers are looking towards Europe.(SECTOR REPORTS: FOCUS ON TMT)
July 1, 2007... Major global internet companies are prepared to make selective purchases of fledgling web businesses and are willing to spend substantial sums over US$1bn for Miler applications. "We have the choice of whether to 'buy' or 'build'. We aim...

Healthy competition: rival suitors and the challenges of overhauling the National Health Service's IT system turned the sale of iSoft into a software soap opera.(SECTOR REPORTS: FOCUS ON TMT)
July 1, 2007... On June 18, Australian healthcare software developer IBA Health finally received the green light for its 132m [pounds sterling] (US$264m) takeover of UK rival iSoft--eight months after the I target company announced a strategic review of its...

Pension picture becomes clearer: Alliance Boots last month became the first FTSE 100 company to be bought by private equity. The takeover unwittingly unveiled the influence of pension funds in deals.(LEGAL & REGULATORY)
July 1, 2007... Pensions used to be the last thing bankers had to consider when advising on acquisitions. However, as the current M&A cycle has started to crescendo, so advisers have had to contend with the torturous problems schemes throw up. This state...

AIM attracts bigger deals: the London Stock Exchange's alternative market has brushed aside criticism and is seeing a wave of larger deals.(MOVING IN THE MID-MARKETS: SPECIAL REPORT ON AIM)
July 1, 2007... The London Stock Exchange have mixed feelings about its wildly popular Alternative Investment Market. AIM's lighter regulation may have attracted a flood of companies to float over the past few years. But this looseness has also provoked...

AIM overseas companies prepared for M&A: the most spectacular success for AIM in the past 12 months has been its attraction to overseas companies. Will listings lead to M&A activity in the future?(MOVING IN THE MID-MARKETS: AIM REPORT)
July 1, 2007... The Alternative Investment (AIM) has carved out a niche as the most popular listing place for high growth companies worldwide. Last year saw 519 companies join AIM, where they raised 8.9bn [pounds sterling] (US$17.8bn). In the first six months...

AIM natural resources companies: born to be bought: AIM hosts a plethora of natural resource companies pursuing a wide variety of projects across the globe. However, the market place is beginning to look over-crowded and analysts expect more consolidation.(MOVING IN THE MID-MARKETS: AIM REPORT)
July 1, 2007... Few places epitomise the current commodities boom more than the Australian city of Perth. Its bars are literally humming with the talk of oilmen wheeling and dealing. Promising prospects are traded, seed finance is raised and mergers are born...

How does your garden centre grow? Tesco's planned purchase of AIM-listed Dobbies Garden Centres would take the supermarket giant into new territories if all goes well.(MOVING IN THE MID-MARKETS: AIM REPORT)
July 1, 2007... When Dobbies Garden Centres told the stock market in late May that it had been approached by a potential acquirer, most commentators expected the AIM-listed garden centre chain to be bought by a private equity firm. It would not have been...

Regulating AIM: we asked law firms, accountants and financiers: "How well regulated is AIM and does this assist or complicate M&A on the market?".(MOVING IN THE MID-MARKETS: AIM REPORT)(Company overview)
July 1, 2007... "AIM, with its light regulatory approach, is generally a well-regulated market. The principles-based approach to regulation adopted by the London Stock Exchange (LSE) has worked well. The LSE has also been very proactive at clarifying...

Private equity and EU antitrust.(MOVING IN THE MID-MARKETS)
July 1, 2007... Acquisitions Monthly is looking for firms interested in sponsoring a special report on this topic. Please contact Henry Gibbon or Stephen Howard to discuss the synopsis and contents of this planned 2007 supplement In the US the Federal...

Wendel looks abroad for acquisitions: after spending five years reinventing itself as a private equity house, Wendel is better equipped than most of its rivals to overcome recent criticisms of the European buyout industry.(INSTITUTIONS)(Interview)
July 1, 2007... Jean-Bernard Lafonta has been chief executive of Wendel since June 2002--the first from outside the Wendel family in its 300-year history. Lafonta became chairman of the executive board in June 2005 and the transformation of Wendel from being a...

Jefferies adds LongAcre: media boutique LongAcre's decision to sell to Jefferies indicates prosperous times for specialist advisers.(INSTITUTIONS)(Company overview)
July 1, 2007... US mid-tier investment bank Jefferies' purchase of LongAcre Partners for about 40m [pounds sterling] (US$79m) removes another successful boutique from the London advisory market. Last October saw Collins Stewart purchase Hawkpoint for an...

Restructuring ripple: Tony Bugg, newly appointed head of restructuring and insolvency at law firm Linklaters, reviews the state of the market.(INSTITUTIONS)
July 1, 2007... The recent trouble at Bear Stearns' two hedge funds, which have suffered large losses arising out of their structured credit investments in the US sub-prime mortgage market, is what Tony Bugg calls a "bump in the night." It frightens...

JPMorgan makes Goldman hire: Mariafrancesca Carli joins European financial sponsors group at leading US house.(INSTITUTIONS)
July 1, 2007... JPMorgan has hired Mariafrancesca Carli as a managing director in its European financial sponsors group responsible for client coverage of infrastructure-related companies. The infrastructure sector is estimated to be a US$50bn-$60bn a year...

Fighting private equity: round one to the Treasury Select Committee, round two to the private equity industry, and round three yet to be fought. As the debate rages, Sandrine Bradley discusses the success of such a public and confrontational approach to private equity.(PRIVATE EQUITY COLUMN)
July 1, 2007... Last month saw the shock resignation of Peter Linthwaite, chief executive of the British Venture Capital Association (BVCA), amid fierce criticism that he had failed adequately to represent the industry in a heated debate with the UK Treasury...

Optimising private equity deals: a fairly new technique for financing receivables could give private equity groups in the know an edge when bidding for working capital intensive companies.(BEHIND THE BUYOUTS)
July 1, 2007... A relatively quick and easy way for a private equity group to squeeze some extra cash from the company it has bought would be to sweat its suppliers a little harder than the previous owners. Typically, this might involve stretching credit...

Bounty hunter: Sir Tom Hunter has gone from selling trainers from a stall in the streets of Ayrshire to facing off against Tesco in the fight for garden centre Dobbies. Robert Venes profiles philanthropic the Scottish billionaire.(BEHIND THE BUYOUTS)
July 1, 2007... As private equity's profile increases, so does that of its major players. Steven Schwarzman, Nick Ferguson and Damon Buffini have all enjoyed--or rather, not --recent press and political interest. None of them, however, are synonymous with...

Cerberus eyes Jaguar.(BEHIND THE BUYOUTS)
July 1, 2007... Cerberus--which bought number three US car maker Chrysler in May for US$7.4bn (5.5bn [euro])--is thought to have held recent talks with Ford over buying its luxury car brands Jaguar and Land Rover. So far, those talks have been...

KKR resolves boots' pension issue.(BEHIND THE BUYOUTS)
July 1, 2007... US private equity group KKR and Stefano Pessina, the executive chairman of Alliance Boots, have overcome a major hurdle in their 11.1bn [pounds sterling] (US$22bn) purchase of the international health and beauty group. They have reached an...

CVC close to Altadis deal.(BEHIND THE BUYOUTS)
July 1, 2007... Private equity firm CVC is in negotiations with banks to provide the financing it requires to lead the buyout of Spanish cigarette company Altadis. CVC has been interested in submitting a formal offer for the group since UK cigarette maker...

Duke Street agrees Oasis deal.(BEHIND THE BUYOUTS)
July 1, 2007... Private equity house Duke Street Capital has agreed to a recommended 76.9m [pounds sterling] takeover of Oasis Healthcare, an AIM-listed UK dentistry chain--but the deal has already been threatened by interest from rival chain Associated Dental...

European Capital buys Hillarys.(BEHIND THE BUYOUTS)
July 1, 2007... Buyout house European Capital has backed the 337m [euro] tertiary buyout of UK window blinds manufacturer Hillarys Blinds from Change Capital Partners. This is trebling its initial investment in the Nottingham firm. This is the first exit...

Cinven buys Bupa hospitals.(BEHIND THE BUYOUTS)
July 1, 2007... Cinven has extended its reach in the healthcare sector with the purchase of the hospital portfolio of UK private medical services group Bupa for a total consideration of 1.44bn [pounds sterling] (2.1 bn [euro]). Last November, Cinven...

League tables.
July 1, 2007... LEAGUE TABLES ANY EUROPEAN INVOLVEMENT ANNOUNCE FINANCIAL ADVISERS (AD21) 01/01/2007 - 30/6/2007 Rank value No. of ...

M&A deal data: this country analysis included acquisitions and buyouts announced between 17 May 2007 and 17 June 2007.
July 1, 2007... Benelux Target Bidder AXA SA-Dutch Insurance Operations SNS Reaal Group NV(NE)--Bank (NE)--Provide insurance services Sales ($): n/a Sales ($): 6,623.30m Net Profits ($):...