Acquisitions Monthly articles from May 2002

Acquisitions Monthly archives from May 2002

Reducing EU regulatory burden. (Insight).(European Union's competition laws)(Brief Article)
May 1, 2002... The European Commission is running an important review of the impact of EU competition laws, which among other things is looking at their impact on buyouts. Current EU competition laws -- the EU Merger Regulation -- can oblige buyout...

Changes to environmental due diligence: "what is the current legislative and regulatory framework for environmental due diligence? Are there any forthcoming changes which will affect the completion of M&A deals in Europe?" (Viewpoints).
May 1, 2002... "The EU's enthusiasm for industry-specific environmental legislation makes it important for environmental due diligence to look at how future implementation of legislation will affect target companies. Integrated Pollution Prevention and...

Latham & Watkins continues Continental gallop; the US law firm has hired five new partners in Germany. (People moves).(Brief Article)
May 1, 2002... Latham & Watkins's galloping expansion in Continental Europe concentrated on Germany last month. The firm, which is branded Latham & Watkins Schon Nolte in Frankfurt and Hamburg, has hired from German firm Gessing five more partners, three of...

Synopses of the largest global deals in April 2002. (Market intelligence).(National Grid Group; Lattice Group PLC)(Statistical Data Included)
May 1, 2002... UK -- National Grid Group (NG) agreed to acquire Lattice Group in a stock-swap scheme of arrangement transaction valued at 6.48bn [pounds sterling] (US$9.37bn). Lattice shareholders will receive 0.375 shares in the new entity, National Grid...

Engineering sees highest premia; only 13 eligible deals were completed in the first quarter. (Bid premia).(Statistical Data Included)
May 1, 2002... As analysts and the industry watch for any signs of improvement, the quiet time continues. The average premia to target share prices one day and one month before the offer or bid talks were announced during the first quarter of 2002 were 39%...

UK antitrust reform: culture change; the enterprise bill now being debated in the British parliament is going to have a major impact on the regulation of mergers and acquisitions. (Legal and regulatory).
May 1, 2002... Some of the proposed reforms in the Enterprise Bill will be welcomed by business, notably the replacement of the public interest merger test with US style competition-based merger criteria. However, other changes, such as granting the victims...

Continental players converge on UK targets; the UK has been the main focus of M&A activity in the European electricity sector over the past six months and there are certain to be further developments before the end of the year.
May 1, 2002... The sector has already seen two strategic deals in 2002. The first was the 5.2bn [pounds sterling] (US$7.6bn) (including assumed debt) acquisition agreed on March 22 of Innogy, the UK's largest electricity supplier, by giant German utility RWE....

National champion looks overseas; the proposed 14.8bn [pounds sterling] merger between the companies that operate the UK's gas and electricity transmission systems will belatedly create a national British utility champion with the financial clout to pursue an aggressive overseas acquisitions policy. (Deal of the month).(National Grid Group and Lattice Group PLC)
May 1, 2002... The combination of National Grid Group and Lattice, the holding company for gas network operator Transco, announced on April 22 will create a company with annual revenues of 9bn [pounds sterling] and a gross operating profit of about 3bn...

Oil and gas dominates falling market; the reverberations of mega-mergers continue to affect the competitive environment in the oil and gas M&A market. (Utilities oil and gas sector report).(Statistical Data Included)
May 1, 2002... While mergers among the super-majors may have largely run their course, M&A activity in the oil and gas sector has remained buoyant over the past two years as the strategic implications of the new competitive environment continue to unravel....

Refinancings drive water M&A; the UK water industry has seen a remarkable revival of interest in acquisitions over the last six months on the back of long-term debt refinancings of companies in the capital markets. (Utilities water sector report).
May 1, 2002... The catalyst for the upsurge was the 2bn [pounds sterling] (US$2.9bn) securitisation in the first half of 2001 that enabled the non-profitmaking Glas Cymru to acquire Welsh Water from Western Power Distribution of the US. While the Glas...

Boutiques for sale: the sale of Putnam Lovell could be the first in a series of corporate finance boutique deals. (FIG sector report).
May 1, 2002... Serious questions are being asked, and in some cases answered decisively, about the future of the boutique. While the downturn has forced the bigger investment banks to cut large numbers of jobs, the strain on the smaller firms is manifesting...

Monthly sector analysis: this sector analysis includes acquisitions and buyouts announced between 25 March and 23 April, 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. (Monthly sector analysis).(Statistical Data Included)
May 1, 2002... Seller - activity Bidder - activity Price ($M) Date 10: MINING 1031: Lead and zinc ores HZL(26%) (IN) - Zinc Sterlite Industries 90.88 04-Apr-02 mining company (AU) - Copper ...

Moving in the mid-markets (US$500m--US$30m).(Brief Article)(Statistical Data Included)
May 1, 2002... Overview This month we launch a new and regular UK regional section in the mid-markets. To kick off we take a look at The Midlands where Birmingham's physical facelift has coincided with an influx of corporate finance players into the area...

Midlands goes gourmet; in the first of a series of new UK regional focuses, acquisitions monthly looks at a UK deal that had taste buds stirring in the Midlands. (UK deal of the month).(Orient Express Hotels enters into joint venture with restaurateur Raymond Blanc)
May 1, 2002... The Midlands in the UK has seen a rise in gourmet activity in recent weeks involving the joint venture between award-winning chef Raymond Blanc and luxury train and hotel group Orient Express Hotels. The joint venture acquired the two...

Birmingham bucks the trend; expansion has been at the top of the agenda for Birmingham's corporate finance and private equity communities. (UK regional focus).
May 1, 2002... Birmingham is basking in a 3bn [pounds sterling] facelift. Gone are the concrete mazes, unfathomable oneway systems and menacing pedestrian subways. At last, the home of the industrial revolution is emerging as a stylish, business-friendly 21st...

Vendex becomes Benelux player; acquisitive Dutch retailer Koninklijke Vendex has upped the stakes and acquired Brico, Belgium's number one player. (European deal of the month).(Vendex acquires Brico; Brico's Spanish, French and Portuguese operations to be sold to Leroy Merlin)
May 1, 2002... The Netherlands' mid-market saw one of its most active retail public companies, Koninklijke Vendex, in a three-way deal involving Belgian company Brico and France's Leroy Merlin last month. The result of the deal has been the proposed...

France moves up a gear; French transactions show that deals are picking up across the channel in exactly the way commentators predicted. (Moving in the mid-markets).
May 1, 2002... Earlier this spring deal flow in France's mid-market looked sluggish, but Acquisitions Monthly reported that corporate financiers were sure things were about to pick up. April's tables bear out that optimism, with three of the top 10...

Global technology deals lead activity; technology dominated the mid-markets last month, with medical devices and computing deals leading the way. (Moving in the mid-markets).(Brief Article)
May 1, 2002... Technology dominated the mid-markets last month, with medical devices and computing deals leading the way. Canon Europa the Dutch based unit of Canon, which provides computer programming services, launched a tender offer to acquire the...

China on oil acquisition trail. (Moving in the mid-markets).(China National Petroleum Corp.; Mazoon Petrogas)(Brief Article)
May 1, 2002... China National Petroleum Corp (CNPC) has announced plans to enhance its commitment to investment on foreign soil after agreeing to acquire Oman-based Mazoon Petrogas from Mazoon Petrogas SAOC for US$50m. The transaction will be split into two...

Behind the buyouts.(CINVen purchases Vivendi Universal's healthcare and business publishing)(Brief Article)
May 1, 2002... Overview Buyouts ended on a high note in April, with Cinven stealing much of the limelight. After lengthy talks, the UK buyout house, alongside private investors Carlyle and Apax, finally agreed terms on the 1.2bn [euro] purchase of...

ABL becomes viable finance option; it may be a niche, but asset-based lending (ABL) is set to become a viable alternative finance solution in support of management buyout transactions. (Focus on asset based lending).
May 1, 2002... Once a relatively small part of the financing tool chest, asset-based lending is starting to become a big business in the UK buyout market. Companies are recognising the advantages over traditional banking options and in some cases managers are...

Consortium takes Vivendi arm; a consortium comprising Cinven, Carlyle and Apax has finally agreed terms with Vivendi Universal on the purchase of its healthcare and business publishing activities for 1.2bn [euro]. (Buyout of the month).(Brief Article)
May 1, 2002... In what must rank as one of the longest running and widely reported deals in European private equity history, a consortium comprising Cinven, Carlyle and Apax Partners finally agreed terms last month with Vivendi Universal on the purchase of...

VCs get into support services; Ted Wilson investigates the attractions of the support services sector to the private equity markets. (Sector watch: support services).(venture capitalists)
May 1, 2002... A simple coincidence in April has highlighted one of the most attractive sectors to venture capitalists, support services. In a relatively quiet month for buy-out activity, one of the largest deals -- the UK assets of bankrupt consultancy...

Cinven on track in big league: Cinven is set to snap up billions of dollars in assets this year following the raising of its new buyout fund. (Fund of the month).(Brief Article)
May 1, 2002... Despite last year's difficult fund-raising environment, the UK-based private equity house has, in record time, raised 4.3bn [euro] (US$3.8bn), significantly exceeding its 3.5bn [euro] target total. The fund brings Cinven's total funds under...

Warburg Pincus rounds off tenth fund; April proves a hotbed for US fundraising activity, with the closing of Warburg Pincus' latest fund at US45.3bn. (Behind the buyouts).(Brief Article)
May 1, 2002... Warburg Pincus, the US private equity giant, which has traditionally operated discreetly in the European market, has added a further US$5.3bn to its already deep coffers with the final closing of Warburg Pincus Private Equity VIII. The vehicle...

Perfectis targets middle market with debut fund; with E80m (US$71m) in its debut fund Perfectis I, French firm Perfectis private equity is well placed to take advantage of France's growing middle market buyout segment. (Behind the buyouts).(Brief Article)
May 1, 2002... "Family succession, company restructuring and consolidation are all factors behind the current deal flow in the mid-market," says Jean-Marie Lavirotte, Perfectis's director and founder. "Compared with only 10 years ago, when it was very hard to...

Cine-UK. (Behind the buyouts).(Brief Article)
May 1, 2002... The announced disposal of Cine-UK by the current owners, the private equity houses Botts & Co and RIT Capital Partners, together with JP Morgan Partners, is likely to start a wave of consolidation in the cinema industry. One industry specialist...

PE player Botts aims to raise 325m [euro]; Botts has launched a new fund and has so far raised 100m [euro]. (Behind the buyouts).(Brief Article)
May 1, 2002... UK mid-market private equity specialist Botts & Co has announced the launch, and cornerstone closing, of a new fund, Botts Capital Partners Fund 2. At present, the vehicle has received commitments totalling 100m [euro] (US$90m) from a group of...

Diamond deal. (Exits in brief).(Candover sells Diamant Boart to Electrolux)(Brief Article)
May 1, 2002... Candover has announced the sale of Diamant Boart, a Belgium-based manufacturer of diamond-edged tools, to Electrolux for 185m [euro] (US$167m). The UK-based buyout house initially acquired the company from Sidanko, a subsidiary of Union Miniere...

Eurogestion. (Exits in brief).(sold to International Service System A-S)(Brief Article)
May 1, 2002... After bulking it up with an impressive run of add-on acquisitions, Bridgepoint Capital is celebrating the sale of Eurogestion to Danish support services group ISS for 155m [euro] (US$140m). The sale also represents a successful exit for fellow...

HMV. (Exits in brief).(Advent International )(Brief Article)
May 1, 2002... Advent International will exit from music retailer HMV Group, which will offer shares to institutional investors until May 8 and make its debut on the London Stock Exchange on May 15. HMV was initially formed in 1998 as a joint venture between...

Detica. (Exits in brief).(Candover Investments)(Brief Article)
May 1, 2002... Candover is looking to exit partly from IT consultancy Detica, in the first flotation of a technology company since the giddy days of 2000. The company, founded 31 years ago and formerly known as The Smith Group, has announced its...

Dealerships head up activity; consolidation among the fragmented UK motor vehicle dealership community is on the cards, as the laws restricting competition are about to be lifted. (Automotive feature).(Statistical Data Included)
May 1, 2002... With the impending reversal of the motor industry's block exemption which will allow other products to be sold outside a specialist dealer network, consolidation within the retail face of the automotive industry is set to become the focus of...

Few delights in Turkey; opportunities in the vibrant country should not be ignored, but M&A remains a difficult enterprise in Turkey Neil Sen reports from Istanbul. (Turkey report).(Statistical Data Included)
May 1, 2002... Mergers and acquisitions have always been notoriously difficult in Turkey and the financial crisis of last year set the market back further. The M&A market, especially for advisers, is extremely small by Western European standards and is...

Banks cry out for partners; the Turkish government is urging banks to merge, and the banks are beginning to respond willingly. (Turkey report).(Brief Article)
May 1, 2002... No sector in Turkey is keener to attract foreign investors than the capital-hungry banks. Some 20 banks went bankrupt during the financial crisis last year and now a round of mergers has been officially sanctioned: the government has asked the...

Turkven pioneers Turkish private equity: an affiliate of Advent International is set to inject some much needed private equity money into cash-hungry Turkey. (Turkey report).(Turk Venture Partners)(Brief Article)
May 1, 2002... Turkey is not a country of obvious attractions r private equity firms. Buyouts in the Western European sense are unknown and the country's financial instability makes it a relatively risky place to invest. Nonetheless, there are some strong...

M&A deal data. (Benelux, France, Germany).(table)(Statistical Data Included)
May 1, 2002... M&A deal data Benelux Target Bidder Alcatel Microelectronics STMicroelectronics (FR)- (BE) - Semiconductor Manufacture semiconductors components Sales ($): n/a Net Profits ...

Country codes.
May 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 ...

Volatility puts due diligence centre stage; as acquirers and lenders show greater caution financial due diligence advisers are often taking a more sceptical view of forecasts for energy savings and future trading trends. (Financial due diligence).
May 1, 2002... Volatile capital markets and a tightening debt market are making a big impact on how and when financial due diligence (FDD) is done in M&A deals. Advisory firms are increasingly being brought in at an earlier stage, as deals take longer to...

A question of supply and demand: as the effects of September 11 and Enron play themselves out, the M&A insurance market finds the supply and demand tide is on the turn. (Risk/insurance).
May 1, 2002... Supply was beginning to outstrip demand in the M&A insurance arena last year. Competition between carriers was growing fierce, demonstrated by the decreasing levels of premiums. But the long-term effects of September 11, and the equally...

Environmental issues come centre stage; the phenomenal growth in environmental due diligence (EDD) of the past five years is showing no signs of slackening. (Environmental due diligence).
May 1, 2002... Last year's downturn affected heavy industry, typically home to some of the nastier environmental liabilities, more lightly than the newer telecoms, media, and technology sectors. And while it is these older industries fuelling much of the...

Two become one: merger culture: cultural issues gain wider acceptability as a necessary part of the integration process. (Cultural due diligence).
May 1, 2002... During the acrimonious merger between British Airways and British Caledonian, managers from the companies involved were invited to a five-day residential course in an attempt to improve relations. It soon became clear that the mutual...

Adecco, five steps to becoming the world's largest recruitment company; the Pentagon method is a means of accessing quickly what the potential effects of synergies and cost savings will have on the valuation of the target company. (Case study).(Brief Article)
May 1, 2002... Formed in 1996 by the merger of Adia of Switzerland and Ecco of France, Adecco is currently the world's leading staffing service company with close to 5,500 offices in 58 countries. It has achieved this feat in a relatively short space of...

A neat fit: acquiring? Ignoring national and corporate cultures can seriously damage your company's operational health. (Cultural due diligence).(Statistical Data Included)
May 1, 2002... Despite wavering global economic growth, mergers and acquisitions still figure high on the strategic priority list of most ambitious companies. It's a sound way to expand and a comfortingly familiar one to many large organisations, even though...

M&A: a programme of protection: Chris Townsend discusses the benefits of utilising insurance capital in transactions and the role of warranty and indemnity insurance -- looking particularly at its use in the private equity market. (Sponsored Article).
May 1, 2002... The use of insurance capital in M&A deals has increased over the past few years. In fact, it has proved the saving grace of many a transaction -- providing deal-enhancing, prospective and retrospective insurance programmes. It can remove...

Avoiding culture shock: Claude S Lineberry and Ian McGrath discuss the often over-looked area of cultural due diligence. (Sponsored Article).(Statistical Data Included)
May 1, 2002... The cultural due diligence (CDD) process is a systemic, systematic and research-based methodology for significantly increasing the odds of success of mergers, acquisitions and alliances. It is an until-recently overlooked parallel process to...

AIG Europe's M&A team. (Sponsorship statement).(American International Group)(Brief Article)
May 1, 2002... AIG Europe created its M&A team in 2000 -- the first of its kind to be established by a European Insurance provider. Based in London, at the heart of the European M&A market, the team has the industry specific knowledge to handle the risk...

Vector. (Sponsorship statement).
May 1, 2002... Vector is a group of international consulting firms that has been helping organisations identify and resolve their priority business issues for the last 16 years. Vector Group, Vector Europe Business Consultants and Vector Data Services...