Acquisitions Monthly articles from March 2002

Acquisitions Monthly archives from March 2002

Who cares about ownership? Half the electricity industry in England and Wales looks set to be in the hands of French and German utilities before the end of the year. (Insight).(Innogy may be acquired by RWE)(Brief Article)(Statistical Data Included)
March 1, 2002... The confirmation last month that Innogy -- the UK's second largest energy supplier -- was in takeover discussions looks set to place about half the electricity industry in England and Wales in the hands of French and German utilities before the...

Scottish & Newcastle buys Hartwall: companies such as Scottish & Newcastle are making further moves to tap into Russia's high-growth market. (European deal of the month).(Brief Article)(Statistical Data Included)
March 1, 2002... The trend of major brewing businesses strengthening their presence in the emerging markets continued in February with Scottish & Newcastle's purchase of Hartwall. S&N, the UK's leading brewer, bought Finnish brewer and soft drinks maker...

Northrop goes hostile: TRW finds itself having to answer questions about its long-term future, Northrop has already put pressure on the company by launching a hostile bid but other bidders could yet come forward. (US deal of the month).(Northrop Grumman Corp. plans hostile takeover of TRW)(Brief Article)(Statistical Data Included)
March 1, 2002... Northrop Grumman Corp has its sights firmly fixed on TRW after firing off a hostile bid for the automobile parts and military defence components manufacturer. But it is by no means the only interested party. The deal is valued at US$6bn,...

Clearswift acquires content: the Indian government has dramatically accelerated the pace of privatisation ahead of the close of the financial year March 31. (Asian deals).(Statistical Data Included)
March 1, 2002... In 2001-02 the government has so far raised Rs56bn (US$1.2bn) from privatisation sales (including extraordinary dividends and company asset sales), of which over 86% was achieved in January and February this year. While receipts are still less...

Synopses of the largest global deals in February. (Market intelligent).(mergers and acquisitions)(Statistical Data Included)
March 1, 2002... US - Northrop Grumman (NG) made an unsolicited offer to acquire TRW, a manufacturer of advanced technology products, in a stock swap transaction valued at US$5.997bn. NG offered US$47 in common stock per TRW share. Upon completion, NG planned...

The cultural aspects of merger integration: in the first of a series of articles, we review the extent to which cultural issues are gaining wider acceptability as a necessary part of the integration process. (Cultural due diligence).
March 1, 2002... The study of cultural integration is fairly new and as only come about as a serious business technique because of the poor success record of so much M&A activity. According to Ian McGarth, managing director of strategic consultants Vector...

Will moves to reform EU merger regulations cramp future M&A activity?(European Union)
March 1, 2002... Will moves to reform EU merger regulations cramp future M&A activity? The European Commission's consultation paper on merger regulation includes a proposal to replace the collective dominance competition test with more straightforward...

Cartel immunity: Valentine's Day notice: the European commission has introduced a new procedure by which cartel members can obtain immunity from antitrust fines. This represents a shift toward the much more successful American procedures. (Legal and Regulatory).
March 1, 2002... The new cartel immunity notice came into force on February 14. While the Valentines Day Notice (VDN) will not lead to a flood of new applicants, it does represent a tightening of the noose for firms that participate in price-fixing and...

Rodamco sale delayed due to further court action. (Legal and Regulatory).(mismanagement charges)(Brief Article)(Statistical Data Included)
March 1, 2002... The sale of Rodamco's mall business and real estate assets to Westfield America Trust, Simon Property Group and the Rouse Company for US$5.334bn (5.97bn [euro]) has been put back on hold as further court action is taken against Rodamco (RNA)....

Forecasting the prospects for the media sector: "what factors are driving M&A in the media sector at the moment and are there key regulatory issues which are encouraging deal activity? Which areas of the media market are likely to see most M&A activity over the next 12 months?" (Viewpoints).
March 1, 2002... "In 2000-01 media stocks were destroyed by the tech plunge, high debt burdens and the advertising revenue collapse, resulting in very depressed valuations for companies depending on advertising revenue. Pay-TV companies such as BSkyB and...

Mega-merger set for comeback: in both the US and Europe, media ownership laws are once again being relaxed, setting the stage for a frenzy of consolidation among the owners of television networks, cable companies, radio stations and Hollywood film studios. (Media sector report).
March 1, 2002... Media investment bankers on Wall Street began preparing themselves for a busy (and potentially lucrative) year on February 19 when a Washington DC appeals court told the Federal Communication Commission (FCC) to discard its outdated media...

Hedge funds break cover: the highly specialised area of hedge fund-of-funds management could be thrust into the M&A spotlight this year. (FIG sector report).(mergers and acquisitions)
March 1, 2002... An influx of serious money is pushing an arcane but profitable area of fund management into the M&A limelight. A number of hedge fund-of-funds businesses, in both Europe and the US, are being put up for sale and several mandates have...

Picking Enron's spoils: following the collapse of the us energy group, the sale of Enron assets continues to be one of the major drivers of acquisitions in the utilities sector. (Utilities sector report).(Illustration)(Statistical Data Included)
March 1, 2002... At the end of February, Centrica, the multi-utility and the UK's biggest electricity and gas supplier, agreed to buy NewPower Holdings, the US retailer of gas and electricity, in which Enron has a 43% stake. Centrica offered US$1.05 per share...

Transgas sets the pace in Eastern Europe: recent privatisation deals point to big changes in the oil and gas sector in Eastern Europe, while in Western Europe M&A activity has been fuelled by divestiture and integration. (Oil & gas sector report).(mergers and acquisitions)(Statistical Data Included)
March 1, 2002... A series of forthcoming privatisations in Eastern Europe this year is expected to completely change the outlook of the industry. "This is going to be an exciting year in South-Eastern Europe, with the privatisation of downstream activities...

Waiting for summer time: falls in passenger numbers and high-yield revenue mean merging to survive for the airline and cruise shipping sectors. (Transport sector report).(Illustration)(Statistical Data Included)
March 1, 2002... In the capital-intensive sectors that make up the transport industry a sizeable drop in passenger numbers -- not to mention a decline in high-yield revenue -- lands a serious blow. And for many companies the way to weather these bad times is to...

Monthly Sector Analysis: this sector analysis includes acquisitions and buyouts announced between 31 January 2002 and 25 February 2002. 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 identifying the industry sector in which the target company is principally engaged.
March 1, 2002... Seller - activity Bidder - activity Price ($M) 10: MINING 1094: Uranium-radium- vanadium ores Cameco (9.7%) (CA) - Gold, Investors - Investors 144.01 uranium mining exploration company ...

Moving in the mid-markets (US$500m--US$50m). (Overview).(mergers and acquisitions)(Brief Article)(Statistical Data Included)
March 1, 2002... Although a new report by Piper Jaffray (see opposite) predicted a gloomy future for smaller listed companies, a now familiar mantra, February did see a pick- up in global mid-market deals. In the UK the US was back on the radar screen with...

Small caps still underperforming: public-to-privates could be set to take off in the UK again, according to a new report released by Piper Jaffray this month. (Moving in the mid-markets).(Statistical Data Included)
March 1, 2002... The report, called M&A Insights, UK Orphan Companies, is the result of an analysis of every UK public company outside the FTSE 350 (and excluding investment trusts), and highlights little change in the harsh reality of the future of small-caps...

The UK heads across the Atlantic: US/UK activity picked up last month with Smith & Nephew leading the way with the acquisition of Oratec. (Moving in the mid-markets).(Oratec Interventions)(Brief Article)(Statistical Data Included)
March 1, 2002... The US was back on the scene taking prominence in last month's UK mid-market deals with a number of transactions in different sectors. Activity kicked off earlier in the month with the US$310.68m tender offer by UK company Smith & Nephew to...

Paris moves slowly in the springtime: things are pretty slack in the French mid-market at the moment. Cherry Canovan reviews the deals and talks to commentators who predict a return to form. (Moving in the mid-markets).
March 1, 2002... France's mid-caps have produced only two notable deals over the last few weeks -- Dassault Aviation's purchase of a stake in publisher Socpresse, and Swiss Life's acquisition of the French operations of Fortis. Dassault's bid for 30% of...

Mid-caps drive Australian market: mid-cap companies are striving for growth in the Australian wine and pharmaceuticals industries. (Moving in the mid-markets).
March 1, 2002... Mid-markets deals continue to dominate the M&A scene in Australia, with a series of significant match-ups altering the shape of two industries in particular. In both wine and pharmaceuticals, two deals are in progress that will consolidate top...

MesseTurm's high-flying deal: the sale of a sky-scraping office building in Frankfurt is symptomatic of a new German interest in real estate investment. (Moving in the mid-markets).
March 1, 2002... One of the most high profile -- in all senses of the word -- deals of the month has been an investor group's acquisition of Frankfurt's MesseTurm building, one of the highest in Europe, with tenants including, among others, Goldman Sachs. ...

Behind the buyouts. (Overview).
March 1, 2002... February proved to be a surprisingly dull month for the buyout sector, giving little hope that more deals could be on their way. Of the three European buyouts announced with a value above US$50m, KPMG corporate finance was behind two as it...

Gearing up for the next telecoms challenge: the business environment for European telecommunications is changing at a remarkable rate. As the evolution continues, private equity players are destined to play an even bigger part in the financing. (Private equity column).
March 1, 2002... The dynamics of telecoms investment have changed dramatically in the last couple of years. "Two years ago private equity players could not compete on later-stage deals because even fairly young companies had access to ample liquidity on the...

Sand Aire sells Bradwell. (Exits).(Brief Article)
March 1, 2002... Sand Aire Private Equity has sold its 40% stake in Bradwell Aggregates, a ready-mixed concrete and aggregates business, in a trade sale to Aggregate Industries for an undisclosed amount. The return on the investment was reported to be...

Bridgepoint exits Eurocom. (Exits).(Brief Article)
March 1, 2002... European buyout house Bridgepoint has made a second sale to Finland Post, with the exit of Eurocom Depora, for an undisclosed sum. Bridgepoint, which acquired the company in October 1998 following a E17m (US$14.6m) management buyout from...

Storm goes into receivership. (Exits).(Brief Article)
March 1, 2002... Optical switches service provider Storm has gone into receivership and KPMG corporate recovery has been appointed as administrator. Backed by Soros Private Equity, Storm's management completed a US$50m management buyout of the firm in...

Pipeline Constructors exited. (Exits).(Pipeline Constructors Group)(Brief Article)
March 1, 2002... Private equity houses 3i and ISIS Capital, formerly Friends Ivory and SIME, have sold their stake in Pipeline Constructors Group, a provider of utilities services. Pipeline is being sold to Morgan Sindall for a total of 16.5m [pounds...

Gresham Trust sells Hampden stake. (Exits).(Brief Article)
March 1, 2002... Private equity house Gresham Trust has sold its stake in branded retailer packaging manufacturer John Hampden Press in a secondary buyout transaction. Gresham Trust financed the original management buyout, valued at 2.7m [pounds sterling]...

Graphite in noodles sale. (Exits).(Brief Article)
March 1, 2002... Graphite Capital is said to be exiting noodle bar chain Wagamama after five years. The business is expected to be lined up for a 50m [pounds sterling] sale. Interested parties are thought to include fast food giant, McDonalds and City...

Alfa Laval to go public. (Exits).(Brief Article)
March 1, 2002... Industri Kapital is said to have plans to go public with its recently acquired stake of Alfa Laval. The venture capital firm acquired its 62.2% stake in the company from Tetra in August 2000. The IPO would be dependent on market...

PRICOA grows with the market: PRICOA capital, one of the earliest players in European mezzanine, is looking to the long-term. (Behind the buyouts).
March 1, 2002... PRICOA Capital has been busily demonstrating that, notwithstanding a thin buyout market, mezzanine finance is increasingly popular. It is a firm which has adapted and developed with the growing market. The firm has just revealed its...

Candover acquires Swissport: more aviation buyouts could be on the way, following the recent acquisition of Swissport. (Buyout of the month).
March 1, 2002... UK-based venture capitalist Candover has completed the management buyout of Swissport, the airport ground handling business of Swissair, in a deal that is set to give a major boost to the anguishing aviation industry. Having entered into...

Smooth progress for Dignity: HSBC private equity's middle market buyout defies the market. (Behind the buyouts).(Brief Article)
March 1, 2002... The HSBC Private Equity-backed 220m [pounds sterling] buyout of Dignity Caring Funeral Services looks, on the face of it, merely a solid middle-market deal. "This is right in the middle of our target area as far as size is concerned," says...

Sand Aire keeps it in the family. (Behind the buyouts).(Brief Article)
March 1, 2002... David Williams, managing director of Sand Aire Private Equity, argues that something important has been missing from the range of options open to the main shareholders in a privately-owned or family business who want to reap the rewards of...

Branson sells Virgin Active stake. (Behind the buyouts).(Sir Richard Branson)(Brief Article)(Statistical Data Included)
March 1, 2002... Sir Richard Branson has sold a majority stake in his chain of health clubs, Virgin Active, in a deal that will further the company's strategy to spread investment risk. The 55% majority stake will be sold to UK private equity house...

Clearswift acquires content. (Behind the buyouts).(Brief Article)(Statistical Data Included)
March 1, 2002... In a rather unusual new development, a group of venture investors not usually associated with acquisitions have clubbed together to help buy Content Technologies from Baltimore in a deal worth 22m [pounds sterling] (US$31m). The consortium has...

UK buyout market falls: after seven years of value growth, 2001 saw the first fall in the total value of the buyout market since 1993. The winter 2001-02 quarterly review from CMBOR examines current developments in the UK buyout market. (Behind the buyouts).(Statistical Data Included)
March 1, 2002... For the first time in seven years, the total value of UK buyouts has shown a year-on-year fall. According to the winter 2001-02 quarterly review from the Centre for Management Buyout Research (CMBOR), released at the beginning of February, the...

CapMan raises US$146m. (Funds).(CapMan capital Management Oy)(Brief Article)
March 1, 2002... Finnish venture capital firm CapMan has raised US$146m for the close of its seventh fund, CapMan Equity VII. The final size of the fund will be determined by the end of June. About two-thirds of the fund will be invested in medium-sized...

Hutton Collins fund launched. (Funds).(Brief Article)
March 1, 2002... Former Morgan Grenfell Private Equity boss Graham Hutton is teaming up with Mathew Collins of Merrill Lynch to form Hutton Collins, a mezzanine and specialist finance fund. The fund aims to raise around US$500m. Collins, who has resigned...

Binnie plans new fund. (Funds).(Steward Binnie)(Brief Article)
March 1, 2002... Steward Binnie, former head of Schroder Finance Partners, has announced plans to launch a new independent fund, ForTrust 1, which will primarily focus on Spain. ForTrust will target enabling technologies in the financial services,...

Rothschild looks for growth in Germany: Rothschild is building a business in Germany that will be able to cope with levels of deal flow so far only seen in the UK. (People moves).(Bank investment plans)(Brief Article)
March 1, 2002... Rothschild left no-one in doubt out the seriousness of its ambitions in Germany when it announced the hiring of two senior bulge-bracket bankers in Germany last month. Andreas Dombret, formerly of JP Morgan, and Andreas Raffel, previously...

Worthington joins Andersen. (Institutions).(Tony Worthington; Andersen Corporate Finance)(Brief Article)(Statistical Data Included)
March 1, 2002... Tony Worthington, the former head of telecoms corporate finance at ABN AMRO, starts work this month as head of the media team at Andersen Corporate Finance. This is an interesting move for a young, ambitious banker whose principal focus...

Accountants under close scrutiny: with the collapse of us energy firm Enron dominating the headlines, the big five accountancy firms need to ask themselves just how many hats they can wear. (Accountancy feature).(Statistical Data Included)
March 1, 2002... Fees from corporate finance practices are swelling the Big Five firms' profits. At Deloitte & Touche, financial advisory services, which include corporate finance, reorganisation and forensic services, grew at a healthy rate of 11% last year,...

M&A deal data.(mergers and acquisitions)(Statistical Data Included)
March 1, 2002... Benelux Target Bidder Cedel International (LX) - Deutsche Boerse (GM) - Stock Securities clearing services exchange holding company Sales ($): n/a Net Profits ($): n/a...

Country codes.
March 1, 2002... AA Albania AB Aruba AD Andorra AF Afghanistan Al Abu Dhabi AJ Ajman AL Algeria AM Armenia AN Angola AQ Antigua AR Argentina AS Austria AU ...

Table criteria -- March 2002.
March 1, 2002... TABLE CRITERIA -- MARCH 2002 PAGE NO TITLE TABLE CRITERIA p22 TECHNOLOGY HIGHTECH DEALS ANNOUNCED Date Announced: 1/2/02 to FEBRUARY 2002, EUROPEAN 25/2/02; Deal Type:...

A colourful market: France should see some spectacular deals this year but not many big fees. (Overview).(French mergers and acquisition industry analysis)
March 1, 2002... The colourful, often controversial, and occasionally dazzling French M&A market is sure to yield some spectacular deals before the year is out. Like the rest of Europe, however, the French have had to endure a sluggish start to 2002, something...

L'exception francaise: French investment banking culture is still more urbane than that anywhere else but it is becoming more aggressive. (Investment banking).(french banking industry)
March 1, 2002... The coarse-grained, hard-pitching investment banker in London or New York views his smooth Paris colleague with some envy. The Frenchman is seen as a shameless bon vivant, picking up mandates that fall elegantly into his manicured hands over...

Private equity at the crossroads: the French private equity market is faltering despite strong underlying drivers. (Private equity).
March 1, 2002... As with most of Europe, the private equity market in France, slumped in 2001 after record-breaking years in 1999 and 2000. Although fewer deals were completed, the decline in the amount of capital invested can largely be accounted for by the...

Auld alliance works for RBS: the royal bank of Scotland has quickly established itself as a fixture in the French buyouts market. (Buyouts).(Royal Bank of Scotland opens french office)(Brief Article)
March 1, 2002... Royal Bank of Scotland (RBS) only opened for business in France in 1998 but already it probably has to be regarded as the leading player in the French leveraged finance market. The feat is a remarkable testimony to RBS's commitment to a market...

Anglo firms dominate changing scene: M&A growth in France has attracted the large international law firms, which now dominate much of the market. Meanwhile, a package of new regulations covering mergers has both good and bad news for potential acquirers. (Legal and regulatory).
March 1, 2002... The growth of corporate and private equity-based M&A in France has encouraged UK and US-based firms to expand their Paris practices in the past two years, with most local firms forced on to the back foot when it comes to winning M&A business....

A trio of transactions: A trio of transactions in the distribution sector demonstrate the ability of Credit Agricole Indosuez to provide both senior and mezzanine debt in a tailor-made approach to financing. (Sponsored Article).(Statistical Data Included)
March 1, 2002... Over the last 12 months, the acquisition finance market in Europe, as elsewhere, has presented a number of challenges as volatility in global equity markets undermined traditional valuation benchmarks. Those deals which completed in the French...

Pushing ahead in the baby market: Mathieu Guillemin looks at the buyout of Ampafrance - the leading French manufacturer of baby products, such as pushchairs and car seats. (Sponsored Article).
March 1, 2002... In June 2001, HSBC Private Equity led the management buyout of Ampafrance - is the leading French manufacturer of baby products such as pushchairs, car seats, equipment and baby furniture as well as baby bottles. It has three major brands: Bebe...

Environmental audits in France: John Butlin and Robert Shofstall predict that the requirement for due diligence audits in France will grow rapidly over the next decade. (Sponsored Article).
March 1, 2002... Due diligence audits in France have changed over the past 15 years. In the mid-1980s, due diligence on an acquisition or disposal was, dare it be said, almost an optional extra. Nowadays, any but the smallest acquisition is accompanied by an...

Credit Agricole Indosuez. (Sponsorship statement).(company management data)(Brief Article)
March 1, 2002... Credit Agricole Indosuez (CAI) is the investment arm of Credit Agricole, the leading French bank by the size of assets. CAI harnesses the group's competence in arranging and financing leveraged deals. The group is one of the top arrangers...

HSBC Private Equity. (Sponsorship statement).(company service and management data)(Brief Article)
March 1, 2002... Two thousand and one was a terminal year for HSBC Private Equity in France. Despite the global recognition of the HSBC name, signifying membership of one of the largest banking and financial service organisations in the world, and the fact...

URS. (Sponsorship statement).(Brief Article)
March 1, 2002... URS is the world's largest environmental and engineering consultancy, with 16,000 professionals located in more than 300 offices in 38 countries. The firm is listed on the New York Stock Exchange with annual revenues over $2.3bn in 2001. URS...