Acquisitions Monthly articles from March 2004

Acquisitions Monthly archives from March 2004

UK mergers: back to shades of grey.(Insight)(Office of Fair Trading)
March 1, 2004... The British competition agency, the Office of Fair Trading (OFT) is back in the merger business. On February 19, to the great relief of the antitrust bar and the business community, the Court of Appeal (CA) overturned the December ruling of the...

Consolidate or perish: the slew of recent mergers in the food retail sector has put increased pressure on supplier margins. Ben Harding looks at consolidation prospects in a fractured market.(Focus on Food & drink)
March 1, 2004... The past year has seen the food retail sector in the UK consolidate on two fronts. First, the one-stop-shop environment has obviously been affected by Morrisons' bid for Safeway; and the ensuing flurry of competitive offers. At this level the...

Generating growth out of maturity: is consolidation the answer for the wine and spirits sector?(Focus on Food & drink)
March 1, 2004... While having classic defensive characteristics, the wine and spirits sector is clearly examining its options to enhance growth. With economic recovery coming through, the sector's organic growth of about 5% needs to be boosted if the stock...

Evolution of insurance within M&A: insurance is increasingly recognised as an important factor in M&A deals.(Sponsored Article)(Merger & Acquisition)
March 1, 2004... So, what is new? How often have we seen banner headlines proclaiming the birth of an extraordinary new product which will revolutionise our lives--whether this is the latest sports car, a labour saving device for the home of a new beauty...

Synopses of the largest global deals in February 2004.(Market intelligence)
March 1, 2004... US: Comcast Corp (CMC) said it planned to merge with Walt Disney Co (DIS) in an unsolicited, hostile stock-swap transaction valued at US$66.75bn, including the assumption of US$11.9bn in liabilities. CMC offered 0.78 Class A common shares per...

Big fall in private company share index: in the final quarter of 2003, the PCPI fell to 11.6, writes Peter Hemington of BDO Stog Howard.(Market intelligence)
March 1, 2004... According to Thomson Financial, the number of deals in 2003 increased by three per cent but total deal values fell by 10% to their lowest levels for eight years. The substantial drop in the PCPI reflects this trend as deal activity in the same...

Consolidation of UK power on the cards: six banks have launched a dramatic move to restructure the UK electricity sector, as the consolidating vehicle they formed last year made initial offers to the creditors of 15 financially distressed power stations.(Restructuring column)(CGE Power, Drax Power)
March 1, 2004... The six--The Royal Bank of Scotland, HBOS, Lloyds TSB, Abbey National, Bayerische Landesbank and Hypo-und-Vereinsbank--have the largest exposure to the sector, and they set up CGE Power to pool up to 12GW of troubled plants in the hope that...

Lexicon moves into utilities.(Institutions)(Lexicon Partners hires Read Gomm, Mark Connell, and Dominic Freely)
March 1, 2004... Lexicon Partners, the UK boutique, is broadening its sectoral coverage with the hiring of a high-profile utilities team from Citigroup Investment Banking. The firm, which had hitherto focused on financial institutions, is beginning to invite...

Compass adds to store experience.(Institutions)(John Wilford)
March 1, 2004... Compass Advisers is keeping up its reputation for hiring bankers of vast experience. The US boutique advisory firm, which has a 12-strong office in London, has taken on John Wilford, a former managing director at Lazard and more recently chief...

EU antitrust modernisation criticized: business remains to be convinced that the European commission can really make the new antitrust enforcement regime work.(Legal and Regulatory)
March 1, 2004... The new EU antitrust enforcement regulation, Regulation 1/2003, only ever provided the bare bones of the new antitrust regime. The European Commission, however, promised six new notices to put flesh on those bones. In October, it finally...

New Disney thriller: as acquisitions monthly goes to press, Walt Disney shareholders gather to render judgment on embattled chief executive and chairman Michael Eisner as it is reported that the board could strip him of the chairman role.(TMT sector report)
March 1, 2004... Walt Disney has hired Bear Stearns and Goldman Sachs as financial advisers to fight its corner against the hostile takeover bid from Comcast. Disney spurned the US$67bn offer last month, but at press time was yet to flesh out its full defence...

Asia is back in the reckoning: Citigroup and Standard Chartered are prompting others to think about Asian deals.(FIG sector report)
March 1, 2004... Citigroup's US$2.7bn acquisition of KorAm bank in South Korea highlights the return of South-East Asia to the M&A radar screen for US and European banks. Meanwhile, the death of Standard Chartered's biggest shareholder opens up the possibility...

Privatisations to reshape French utilities: the impending part-privatisation of France's state-owned gas and electricity companies should spur some long-awaited corporate restructuring in the country's utilities sector over the next 12-18 months.(Utilities sector report)
March 1, 2004... The French industry ministry said at the end of last year that Electricite de France (EdF) and Gaz de France (GdF) would be converted into limited companies subject to "ordinary rules", with the obvious target of effecting the changes by July...

BP may sell off petrochemicals business.(Utilities sector report)(Brief Article)
March 1, 2004... BP chief executive Lord Browne has suggested that Britain's largest company could sell off significant parts of its petrochemicals operation--which turns over more than US$16bn a year--in the near future. The company's official line is...

Total bid talk surrounds BG Group.(Utilities sector report)
March 1, 2004... TotalFinaElf emerged as a potential bidder for BG Group last month, sending the shares in the former international arm of British Gas to an 18-month high. The French oil giant replaced Shell as the leading contender to acquire BG, after...

Opportunities perceived in Germany: the German market seems at long last to be focus of attention among mid-market investment groups and private equity houses.(Moving in the mid-markets: (US$500m-US$30m))
March 1, 2004... International investment group Investcorp is expecting to make a number of acquisitions in the German market this year. Christopher O'Brien, a member of Investcorp's management committee, says he expects an above average amount of future...

Media sector goes back to growth: media M&A is forecast to grow by more than 3bn [pounds sterling] this year thanks to restructured balance sheets and recovering advertising expenditure.(Sector watch)
March 1, 2004... After several years of torpor, M&A is picking up across the European media sector. "There is much to be positive about," according to Olivier Wolf, a corporate finance partner at PricewaterhouseCoopers. He says that 2003 saw the beginning of...

Doing the due diligence: could you supply a case study of a deal that you have worked on recently in which financial due diligence played a major role or altered the course of the transactions?(Viewpoints)
March 1, 2004... "Due diligence is most effective in mid-market transactions which are characterised by cash sensitive vendors, incomplete financial information and tight reporting timetables. All too often, the aspect of a deal which is least understood...

Private equity groups trade assets: accelerated IPOs are also back in the picture.(Private equity overview)
March 1, 2004... Reports of bulging deal pipelines and increased confidence in the private equity industry do not appear to have translated into new deals last month. The expected slew of large fundraisings has also yet to materialise formally as groups jockey...

Baxi debt includes mezzanine notes.(Behind the buyouts)
March 1, 2004... The 530m [pounds sterling] of debt backing BC Partner's 622.5m [pounds sterling] secondary buyout of Baxi Group has been launched. Royal Bank of Scotland is sole mandated lead arranger and the debt is split between 480m [pounds sterling] in...

Private equity keeps Manchester afloat: Manchester, once the industrial powerhouse of the North of England, now has a new role --the corporate finance center of the region.(Regional focus)
March 1, 2004... While a broad range of corporate finance professionals are represented in the city, one aspect stands out --private equity. In recent slow times for M&A in general, its concentration of private equity players has allowed Manchester to keep...

HgCapital continues German buying spree.(Behind the buyouts)
March 1, 2004... The Frankfurt team at HgCapital has been busy of late, with the 115m [euro] buyout of Hirschmann Electronics from Rheinmetall representing the latest in a run of German deals for the private equity house over the past year. Stuttgart-based...

Flurry of activity in the French market.(Behind the buyouts)(Le Moniteur )(Loxam )
March 1, 2004... Le Moniteur was one of the first off the block. The 100-year old publishing company, which serves the local authority through titles such as Le Moniteur des Travaux Publics and La Gazette des Communes, was put to auction by a consortium...

Burndene in 102m [pounds sterling] buyout.(Behind the buyouts)(Scaid Investments acquires Burndene)(Brief Article)
March 1, 2004... Burndene, a UK manufacturer of mobile homes and caravans, has been acquired by Scaid Investments, a newco created by management and Uberior Investments, for 102.7m [pounds sterling]. Uberior Investments is the equity holding arm of Bank of...

Fisher Scientific acquires Oxoid.(Behind the buyouts)(Brief Article)
March 1, 2004... US company Fisher Scientific International has acquired Oxoid, a UK manufacturer of microbiology products, from PPM Ventures for 177.5m [pounds sterling]. Fisher's initial approach coincided with preparations for the realisation of PPM's...

Debenhams.(M&A capital markets round-up)(Bank of Scotland, CSFB(bookrunner),JP Morgan, Lehman Brothers and Morgan Stanley(bookrunner) involved)(Brief Article)
March 1, 2004... * The 696m [pounds sterling] of senior debt backing the 1.72bn [pounds sterling] take-private of Debenhams by special purpose vehicle Baroness Retail was launched to sub-underwriters through mandated lead arrangers Bank of Scotland, CSFB...

VWR.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * US private equity house Clayton Dubilier & Rice (CD&R) has reportedly bought out lab equipment distributor VWR for US$1.65bn from German drug company Merck. Citigroup and Deutsche Bank are mandated to arrange the supporting debt and as...

Brenntag.(M&A capital markets round-up)(mandated lead arrangers are ABN AMRO, Citigroup(bookrunner), HVB Group and SG(bookrunner))(Brief Article)
March 1, 2004... * The 1.267bn [euro] senior debt supporting Bain Capital's buyout of chemical logistics company Brenntag should close fully subscribed, despite some resistance from the market. Mandated lead arrangers ABN AMRO, Citigroup (bookrunner), Dresdner...

Inmarsat.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Banks and funds have signed into general syndication Inmarsat's US$975m of senior debt, through mandated lead arranger Barclays, CSFB and RBS. Joining are AIB, Natexis Banques Populaires, Scotia Bank and SMBC. These banks joined on...

Vivarte.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * PAI Partners has beaten rivals CVC and Galleries Lafayette in the circa 1bn [euro] auction of French retailer Vivarte and was granted exclusivity on January 26. PAI's offer values the company at 1.24bn [euro]. Majority shareholders in...

New Look.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * CSFB, HVB Group and HSBC are underwriting 385m [pounds sterling] of senior debt and a 100m [pounds sterling] mezzanine loan to back the 699m [pounds sterling] take-private of UK retailer New Look by the company's founder, Tom Singh, and...

Clondalkin.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * The 460m [euro] of senior debt for Clondalkin launched through mandated lead arrangers Barclays, Deutsche Bank and Lehman Brothers is split into a 160m [euro] seven-year term loan A at 225bp over Euribor, an eight-year 80m [euro] term loan B...

GrandVision.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * ABN AMRO and Credit Lyonnais have been mandated to arrange the financing for investment group HAL's take-private of French optician group GrandVision, which also owns Vision Express in the UK. The duo have put in place a bridge financing to...

Global Garden Products.(M&A capital markets round-up)(UBS Capital's Global Garden Products is being purchased by ABN AMRO Capital s)(Brief Article)
March 1, 2004... * Banks have signed into the sub-underwriting phase of Global Garden Products' 565m [euro] LBO loan, through mandated lead arrangers CIBC World Markets and Royal Bank of Scotland. AIB, Bank of Scotland, BNL, Bank of Ireland, CAI, Mizuho...

Hilding Anders.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Syndication of the 386m [euro] debt backing Investcorp's LBO of Hilding Anders is progressing well with no declines and a large early commitment from a Scandinavian bank creating momentum, through mandated lead arrangers Citigroup and CSFB....

Sirona Dental Systems.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * The 330m [euro] debt backing EQT's 417.5m [euro] secondary buyout of German dental equipment manufacturer Sirona Dental Systems has been launched to one-step syndication through mandated lead arrangers JP Morgan and RBS. The debt is...

Saft.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * CSFB will hold off launching French battery maker Saft's 270m [euro] of senior debt until the start of March. BNP Paribas and Mizuho Corporate Bank have already committed as joint lead arrangers, sub-underwriting 75m [euro] apiece. The...

Accantia.(M&A capital markets round-up)( Accantia )(Brief Article)
March 1, 2004... * The 161m [pounds sterling] debt backing Duke Street Capital's buyout of Accantia has been launched through mandated lead arranger Bank of Scotland. The debt facility is split into a 63m [pounds sterling] seven-year term loan A at 225bp over...

OGF.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * The 300m [euro] financing backing Vestar Capital Partners' buyout of French funeral services group OGF from Service Corporation International is quietly out to a select group of sub-underwriters through mandated lead arranger Lehman Brothers....

Groupe Loxam.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Groupe Loxam has been launched to general syndication through mandated lead arranger Natexis Banques Populaires. The debt comprises a 80m [euro] 6-1/2-year amortising term loan A at 200bp over Euribor, a 40m [euro] 7-1/2-year bullet term...

IMO Car Wash.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * The 280m [pounds sterling] debt facility supporting JP Morgan Partners' secondary buyout of IMO Car Wash has been launched through mandated lead arranger Bank of Scotland. The facility is split into a 85m [pounds sterling] seven-year term...

Almatis.(M&A capital markets round-up)(Rhone Capital)(Brief Article)
March 1, 2004... * The US$267.5m of debt backing Rhone Capital's buyout of Almatis has been launched to sub-underwriters and funds, through mandated lead arrangers ING and Scotia Capital. The facility is split between US$237m in senior debt and US$33.5m in...

Vaasan & Vaasan.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * CIBC has underwritten 205m [euro] of senior and subordinated debt to back CapVest Equity's secondary buyout of Vaasan & Vaasan from EQT. The 160m [euro] senior debt is split into a 85m [euro] seven-year term loan A at 225bp over Euribor, a...

Aliplast.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Banks invited to join the 111.1m [euro] of senior debt backing Electra Partners' buyout of Dutch aluminium window and door company Aliplast, which is being underwritten by RBS, are invited to a bank meeting in Belgium on March 2. Because...

Oasis Stores.(M&A capital markets round-up)(acquisitions)(Brief Article)
March 1, 2004... * The 86m [pounds sterling] senior debt supporting Baugur Group's 152m [pounds sterling] acquisition of Oasis Stores has been signed through mandated lead arrangers Bank of Scotland and Kaupthing Bank. Bank of Scotland and Kaupthing Bank...

Parques Reunidos.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Banks have been invited to join the 127m [euro] senior debt backing the LBO of Parques Reunidos in general syndication. RBS is arranging the debt. Senior debt is split into a 37m [euro] seven-year term loan A priced at 225bp over...

Blagden Packaging Group.(M&A capital markets round-up)(Blagden Packaging B.V.)
March 1, 2004... * Steel drum maker Blagden Packaging Group's 100m [euro] LBO debt will close oversubscribed early next week, through mandated lead arranger Bank of Scotland. Alchemy Partners is buying out the company for about 150m [euro]. Banks are...

Simon Storage.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Simon Storage's 61m [pounds sterling] senior debt and working capital financing has been signed, with Lloyds TSB joining mandated lead arrangers Bank of Scotland and RBS to form a three-bank club. The financing forms part of a 98m [pounds...

Medica.(M&A capital markets round-up)(Brief Article)
March 1, 2004... * Two of the three banks invited into the 130.2m [euro] of senior debt backing Bridgepoint's buyout of Medica have committed, subject to documentation, through mandated lead arranger Royal Bank of Scotland. The third bank's reply is...

Merlin Entertainment.(M&A capital markets round-up)(Hermes Private Equity)(Brief Article)
March 1, 2004... * HVB has solely arranged the 50.5m [pounds sterling] of senior and subordinated debt backing Hermes Private Equity's secondary buyout of Merlin Entertainment, the attractions operator. Debt is split into a 10m [pounds sterling] mezzanine loan...

M&A deal data.(Illustration)
March 1, 2004... M&A deal data Benelux Target Bidder Benelux Immo Loi (BE) 87.3% - Cofinimmo SA (BE) - Real estate Real estate agency agency Sales ($): n/a Net Profits ($): Sales ($):...

Monthly sector analysis.
March 1, 2004... THIS SECTOR ANALYSIS INCLUDES ACQUISITIONS AND BUYOUTS ANNOUNCED BETWEEN 26 JANUARY AND 26 FEBRUARY. PUBLIC OFFERS COMPLETED BETWEEN THESE DATES ARE INCLUDED, WHEREAS NEW AND PENDING OFFERS ARE EXCLUDED. THE TRANSACTIONS ARE CLASSIFIED...

SG Leveraged Finance in France: with one of the most experienced teams in the French market, SG's client driven approach is in "full swing".(Sponsored Profile)
March 1, 2004... Rene de Laigue, Global Head of SG Corporate & Investment Banking (SGCIB)'s Leveraged Finance activity, and Patrick Sandray, Head of Leveraged Finance for France, together with their dynamic Paris team, have succeeded in paving the way for an...

Motagu Private Equity.(Sponsored Profile)(Company Profile)
March 1, 2004... * Founded in 1968, Montagu Private Equity is an independent and long established fund management company * Mid-market European private equity investor, Montagu manages some 3bn [euro] on behalf of the HSBC group and various other...

RBS Leveraged Finance France.(Sponsored Profile)(The Royal Bank of Scotland)
March 1, 2004... The Royal Bank of Scotland's Leveraged Finance business has had a presence in the French marketplace since 1998, during which time the team in Paris have established themselves as one of the leading providers of senior and mezzanine debt for...

The Alcan-Pechiney effect: the impact of last year's hostile bid is helping to lift the whole M&A market and is giving a healthy boost to investment banks.(Hostile bids in France)
March 1, 2004... Opinions vary on the exact significance of Alcan's successful E4bn bid for French steel company Pechiney last year, but most M&A professionals are agreed that the government's decision not to intervene has given the impression that plenty of...

Actaris: a compelling story: over time, Montagu gained a thorough understanding of both the sector and the management, which allowed it to get comfortable with Actaris.(Sponsored Article)
March 1, 2004... In August 2003, Montagu Private Equity led and arranged the secondary management buyout of Actaris. Previously known as Schlumberger-RMS, Actaris is the world leading producer of metering systems used to quantify utility flows. Through a...

A year of transition: the excitement is palpable now but 2004 will probably not see a dramatic recovery in the market.(M&A in France)
March 1, 2004... The mergers and acquisitions market would be a great deal duller without France. Nothing attracts more attention than a good corporate scrap and, as a glance at the list of the biggest hostile bids in Europe reveals (see below), French bidders...

Competition fuels greater sophistication in Leveraged Finance: high investor liquidity is the main factor affecting the French leveraged finance market, comments Pascal Werner, Head of Leveraged Finance for The Royal Bank of Scotland in France.(Sponsored Article)
March 1, 2004... Like most European countries, France is currently enjoying huge investor liquidity across all asset classes including equity, subordinated debt and senior debt. Low default rates on leveraged loans mean that more and more banks now see...

The return of trade buyers: trade buyers and IPOs provide options in an exit market that has been dominated by secondary buyouts, but growing competition could raise prices.(Buyouts in France)
March 1, 2004... After topping the European pile in 2002, last year was a steady it unspectacular one for French buyouts. The mid-market held up well, but the headline deals fell away, causing a significant drop in value. According to figures from the Centre...

Each to his own: the traditional demarcation lines between local firms and Anglo-Saxon giants are blurring and the playing field is levelling out.(Law firms in France)
March 1, 2004... Compared to Anglo-Saxon firms, the size of French practices may appear modest. Where French firms have chosen expansion, this has often been done in order to acquire an international dimension as in the case of Gide Loyrette Nouel, for example....

Integrating hedging in sponsors' investment strategy: SGCIB's European Leveraged Finance Team promotes upstream cooperation to enhance sponsors' expected return.(Sponsored article: SG Corporate and Investment Banking)
March 1, 2004... A deceptive illusion Since October 2000, 3m Euribor has reduced from a high 5.14% down to a low 2.07%, one of the lowest levels ever recorded. This historical swing down has benefited all LBO transactions completed in the past four to five...

M&A deal data.(Deals in France)(Illustration)
March 1, 2004... M&A deal data Target Bidder AES Laboratoire Groupe (FR) - ABN-AMRO Holding NV (NE) - Manufacture bacteria/ testing Investment holding company instruments Sales ($): Net profits...