Acquisitions Monthly articles from May 2006

Acquisitions Monthly archives from May 2006

Deals create value; the latest research shows that some companies are learning from the mistakes of previous waves of M&A.(EDITORIAL)
May 1, 2006... The City columnist's cant that acquisitions destroy shareholder value has been challenged in two studies of global M&A. A joint report by Cass Business School and consultants Towers Perrin concludes that companies that were involved in...

An investor group including Goldman Sachs said it planned to launch a hostile tender offer to acquire the entire ordinary share capital of BAA, a UK-based owner and operator of airports and airfields, for 870p (US$15.25) in cash per share, or a total value of 9.398bn [pounds sterling] (US$16.47bn).(UK)
May 1, 2006... UK: An investor group including Goldman Sachs said it planned to launch a hostile tender offer to acquire the entire ordinary share capital of BAA, a UK-based owner and operator of airports and airfields, for 870p (US$15.25) in cash per share,...

Alcatel SA agreed to merge with Lucent Technologies Inc.(US)
May 1, 2006... US: Alcatel SA agreed to merge with Lucent Technologies Inc, a manufacturer, designer, and developer of telecommunications equipment, products, and software, in a merger of equals transaction valued at US$13.59bn.

An investor group comprising Cerberus Capital Management, Citigroup and Aozora Bank agreed to acquire a 51% interest in General Motors Acceptance Corp, a provider of financial services, from General Motors Corp for US$7.853bn in cash.(US)
May 1, 2006... US: An investor group comprising Cerberus Capital Management, Citigroup and Aozora Bank agreed to acquire a 51% interest in General Motors Acceptance Corp, a provider of financial services, from General Motors Corp for US$7.853bn in cash. The...

An investor group led by Resource Management Service LLC, agreed to acquire 3.8m acres of forestlands located in the Southern US and 440,000 acres of forestlands located in Michigan from International Paper.(US)
May 1, 2006... US: An investor group led by Resource Management Service LLC, agreed to acquire 3.8m acres of forestlands located in the Southern US and 440,000 acres of forestlands located in Michigan from International Paper, a manufacturer and wholesaler of...

PSA, a wholly-owned unit of Singapore state-owned Temasek Holdings (Pte) Ltd, agreed to acquire a 20% stake in Hutchison Port Holdings Ltd, agreed to acquire a 20% stake in Hutchison Port Holdings Ltd, a ports owner and operator, and a majority-owned unit of the Hutchison Whampoa Ltd (HW) Hutchison International Terminals (HI) subsidiary, from HI.(Hong Kong)
May 1, 2006... HONG KONG: PSA, a wholly-owned unit of Singapore state-owned Temasek Holdings (Pte) Ltd, agreed to acquire a 20% stake in Hutchison Port Holdings Ltd, a ports owner and operator, and a majority-owned unit of the Hutchison Whampoa Ltd (HW)...

Indap, a company newly formed by EQT Partners (51%) and Investor AB (49%) for the purpose of making an acquisition, said it planned to launch a tender offer to acquire the entire ordinary share capital of Gambro, a Stockholm-based provider of renal care services, for SKr111 (US$14.328) in cash per A and B ordinary share, or a total value of SKr38.257bn (US$4.938bn), in a leveraged buyout.(Sweden)
May 1, 2006... SWEDEN: Indap, a company newly formed by EQT Partners (51%) and Investor AB (49%) for the purpose of making an acquisition, said it planned to launch a tender offer to acquire the entire ordinary share capital of Gambro, a Stockholm-based...

An investor group including Macquarie Bank and EQT Partners agreed to acquire Selective Service Partner, a provider of catering services, from Compass Group PLC, for SKr24.53bn (US$3.174bn).(Sweden)
May 1, 2006... SWEDEN: An investor group including Macquarie Bank and EQT Partners agreed to acquire Selective Service Partner, a provider of catering services, from Compass Group PLC, for SKr24.53bn (US$3.174bn). The transaction was to include Compass's...

JPMorgan Chase agreed to acquire the consumer, small business and middle-market banking businesses of Bank of New York for US$3bn.(US)
May 1, 2006... US: JPMorgan Chase agreed to acquire the consumer, small business and middle-market banking businesses of Bank of New York for US$3bn. The consideration was to consist of US$150m in cash as an equalisation payment; JPM's corporate trust...

Announced deals worldwide: target macro industry transaction volume year-to-date.
May 1, 2006... ANNOUNCED DEALS WORLDWIDE: TARGET MACRO INDUSTRY TRANSACTION VOLUME YEAR-TO-DATE Telecommunications--US$212,647m 19.4% Energy & power--US$207,366.7m 18.9% Financials--US$127,569m 11.6% ...

Announced deals worldwide: target region transaction volume year-to-date.(April snapshot)
May 1, 2006... ANNOUNCED DEALS WORLDWIDE: TARGET REGION TRANSACTION VOLUME YEAR-TO-DATE Europe--US$462,889.2m 42.2% Americas--US$458,219m 10.7% Asia-Padfic--US$117,783.3m 3.8% Japan--US$41,542.7m ...

Growing pains: across Europe the relationship between public and private markets is becoming increasingly fraught as buyout houses target bigger prey.(BEHIND THE BUYOUTS: PRIVATE EQUITY OVERVIEW)
May 1, 2006... Across Europe the relationship between public and private markets is becoming increasingly fraught as buyout houses target bigger prey. The shockwaves caused by the collision are also being felt in government, where regulators are scratching...

Corporates join the club: private equity firms are set to team up with strategic buyers in Europe as the US shows the way.(BEHIND THE BUYOUTS)
May 1, 2006... Club deals are all the rage on both sides of the Atlantic, but there is one d of consortium deal that has yet establish itself in Western Europe. Partnerships between corporates and private equity firms are becoming increasingly common in the...

The reign of the borrower: the borrower remains king in this liquid and overcrowded debt market, with private equity funds increasingly dictating lender terms.(BEHIND THE BUYOUTS)
May 1, 2006... As the European debt market evolves and liquidity stands its ground the appearance of more fluid and complex structures continues to be the norm. According to Close Brothers' debt advisory group, European market loan volumes for UK...

Utilities appear on private equity radar; energy and water companies--particularly the latter--have begun to attract much more interest from financial investors, and this year could see the involvement of private equity firms and others reach unprecedented levels.(BEHIND THE BUYOUTS)
May 1, 2006... In a recent critique of M&A activity among Europe's utilities, French bank BNP Paribas noted that "aggressive LBO equity is currently around every corner" and that any companies in the sector that disillusioned their shareholders-with...

Blackstone buys US$3.3bn stake in DT; Blackstone has agreed to buy Deutsche Telekom shares worth 2.68bn [euro] (US$3.3bn) from Germany, its first stake in a government-controlled company.(BEHIND THE BUYOUTS)
May 1, 2006... Blackstone will buy 191.7m shares, or 4.5% of Deutsche Telekom, for 14 [euro] each from KfW Group, Ger bank. The agreement comes less than a year after German politicians including Labour Minister Franz Muentefering likened the rising...

Standing at a cross-roads: the consolidation of the private equity industry carries its own risks, Arthur Levitt warns.(BEHIND THE BUYOUTS)
May 1, 2006... The private equity industry will continue to consolidate with the growing domination of a handful of global mega buyout funds. By the end of the decade, 10 funds will dominate the global private equity scene and we will see larger deals...

UK reaches new peak; last year was record-breaking in many of the world's major buyout markets, both for the value of capital invested and also the amount of new capital raised by buyout funds.(BEHIND THE BUYOUTS)
May 1, 2006... The UK saw a new peak in total value for the market principally driven by the record number of buyouts over 100m [pounds sterling], in addition to a record amount of capital raised by UK based buyout funds. The year also produced new highs for...

France has an annee formidable; deal value almost doubled to 20.5bn [euro], outstripping the previous record set in 2002 by a third. Buyout numbers also increased sharply, up 40% on the 2004 figure at 220 and also a new record.(BEHIND THE BUYOUTS)
May 1, 2006... France regained its position as the largest market in Continental Europe as the German market returned to 2003 levels following the high of 2004. Indeed, the value of activity in France in 2005 was the highest ever total in Continental Europe....

Germany pauses for breath; after an exceptionally strong year in 2004, when the German market became Europe's largest by value, activity slowed last year.(BEHIND THE BUYOUTS)
May 1, 2006... German buyouts ended 2005 behind France in both the value and number of deals completed. The German buyout market surged in 2000 to reach a record 15.1bn [euro] before halving to 7.5bn [euro] in 2001. Subsequently, the market saw consecutive...

Italy sees return of the mega deal; the buyout market in Italy recovered in 2005 with value surging nearly six-fold from its 2004 level to place Italy in second position in terms of value in Continental Europe for the first time.(BEHIND THE BUYOUTS)
May 1, 2006... Value surged nearly six-fold from its 2004 level to place Italy in second position in terms of value in Continental Europe for the first time. The 17.5bn [euro] value followed a mere 3bn [euro] in 2004 and reinforced the peaks and troughs so...

Spain becomes key area of investment; with a record total of 88.7bn [euro] in European buyout activity last year, the Spanish buyout market rose to its second consecutive record value.(BEHIND THE BUYOUTS)
May 1, 2006... After reaching 2.3bn [euro] in 2004 the market took off last year with a fourfold increase to end 2005 at 9.3bn [euro]. This made Spain fifth largest Continental market by value, with only France, Italy, Germany and the Netherlands having...

Buyout market in Benelux flourishes; the Benelux region constituted 15% by volume and 16% by value of the European market as a whole.(BEHIND THE BUYOUTS)
May 1, 2006... The number of buyouts in the Benelux region has been increasing steadily since the early 1990s, and 2005 was no exception with 107 deals completed. The total value of the market shot up to reach 14.3bn [euro], a new record for the region and...

HgCapital builds firepower; Hg Capital's new hires and new business services sector team reflects growing confidence.(INSTITUTIONS)
May 1, 2006... Hg Capital is set to expand following the successful close of a 950m [pounds sterling] fund. It is hiring five new associates and is starting a new business services sector team as it seeks to raise its game. Robin Lincoln, the new head of...

Banks set to make more hires; research shows that M&A is driving recruitment.(INSTITUTIONS)
May 1, 2006... The buoyant state of big-cap M&A is fuelling a recruitment drive by investment banks across Europe, according to a survey by IntraLinks and Financial News. Meanwhile, there is growing evidence that London is experiencing its liveliest financial...

Actis hires Microsoft man; emerging markets specialist will step up technology investment.(INSTITUTIONS)
May 1, 2006... Actis, the emerging markets private equity firm, is stepping up its activity in the technology sector with the hiring of Rajiv Kaul, the former head of Microsoft in India. Actis said Kaul would lead the firm's efforts in the sector and...

West becomes Lyceum; West Private Equity is cutting itself free from WestLB and raising fresh funds.(INSTITUTIONS)
May 1, 2006... West Private Equity (WPE) is set to complete its move towards independence from WestLB and will be adopting the name Lyceum Capital. The firm has also appointed David Harland, who has been working with WPE since 2001, as operations director....

3i's Nolan to take responsibility for UK buyouts; Ian Nolan, a managing director in 3i's European buyouts arm, will take over responsibilities for UK buyouts.(INSTITUTIONS)
May 1, 2006... Private equity firm 3i has appointed European buyouts managing director Ian Nolan to oversee its UK buyout operations. Nolan will take over from Nick Badman, managing director in the UK buyouts team, who has been with 3i for the past 17 years...

Viewpoints on restructuring: do you expect restructuring specialists to be significantly busier by the beginning of 2007? Which sectors will be hit hardest when problems do emerge on a large scale?".(INSTITUTIONS)
May 1, 2006... "Changing economic conditions combined with the likelihood of some eventual tightening in liquidity, particularly for lower credit quality borrowers, certainly points to a medium-term increase in restructuring deal flow. Simply put, we do not...

Skandia shake-down: Old Mutual's purchase of Swedish insurance rival reflects new deal realities.(FIG SECTOR REPORT)
May 1, 2006... Fittingly for one of the five largest-ever cross-border insurance takeovers, the decision by Old Mutual to make an offer for Swedish rival Skandia was taken in a three-way conversation across three continents. Jim Sutcliffe, chief executive...

Generically speaking: the Advent-backed growth of Terapia into Romania's number one generics company has been a shot in the arm for the country's pharmaceuticals market.(MOVING IN THE MID-MARKETS)
May 1, 2006... Terapia, Bucharest's first private public-to-private, is now Romania's number one domestic generics player, highlighting the fact that Central and Eastern Europe has now become somewhat of a hub for the pharmaceutical sector. Last month,...

Deal-makers decide whether to run for cover; new insurance products to cover risks on deals involving private equity houses have been marketed in recent years, but what are the pros and cons of such policies and are they actually being taken up?(MOVING IN THE MID-MARKETS)
May 1, 2006... When NBGI Private Equity acquired insulation manufacturer Superglass last August in a 40m [pounds sterling] (US$70m) deal, insurance cover on the warranties and indemnities offered by the vendor helped to smooth the process. "The vendor...

Buyouts boom in Spain; private equity investment in Spain has continued to be strong in the early months of 2006, but what is the outlook for the rest of the year and are there any obstacles to the maturing of the Spanish market?(REGIONAL REPORT: FOCUS ON SPAIN)
May 1, 2006... From a relatively sleepy buyouts market a few years ago Spain has taken off in the last 12 to 18 months, mainly thanks to several large deals. These include the 4.3bn [euro] acquisition of travel reservations company Amadeus, the 2.4bn [euro]...

AVR.
May 1, 2006... The 975m [euro] loan backing the LBO of Dutch waste management company has signed, through mandated lead arrangers ABN AMRO, BNP Paribas, CIBC and Lehman Brothers. Banks joined on 70bp for 30m [euro] and 60bp for 20m [euro]. The syndicate...

Findus.
May 1, 2006... Pricing on the B, C and second lien tranches of the circa 550m [euro] secondary buyout of Swedish frozen food group Findus have been flexed down after an oversubscription, via mandated lead arrangers and bookrunners Barclays and Merrill Lynch....

Autodistribution.
May 1, 2006... The 530m [euro] debt package backing Investcorp's secondary buyout of Autodis, the holding company for French automotive parts distributor Autodistribution, is proceeding well, through bookrunner Citigroup. Goldman Sachs and its minority...

Camaieu.
May 1, 2006... French fashion retailer Camaieu has launched a 368m [euro] all-senior secured debt facility backing its LBO by AXA Private Equity through mandated lead arrangers and bookrunners Calyon and RBS. BNP Paribas has also joined as a mandated lead...

Cegelec.
May 1, 2006... Cegelec has launched the debt package backing LBO France's secondary buyout to general syndication. Mandated lead arrangers and bookrunners are Calyon and RBS. CIS, GE Commercial Finance, HVB and SG joined as sub-underwriters on tickets of 75m...

Groupe Elior.
May 1, 2006... French catering company Groupe Elior has mandated Merrill Lynch and Morgan Stanley to arrange the debt backing its 1.7bn [euro] take-private by Bercy Investissement, a vehicle owned by Robert Zolade, Elior's co-founder and chief executive, and...

IMO CarWash Group.
May 1, 2006... The debt package backing Carlyle Group's acquisition of IMO CarWash Group is oversubscribed on both the senior and mezzanine tranches. Bank of Scotland is mandated lead arranger. As a result of the oversubscription, pricing has been flexed...

JVH Gaming.
May 1, 2006... Bank of Ireland and CIBC World Markets are bookrunners and mandated lead arrangers on a LBO for JVH Gaming, a Dutch gambling company. The sponsor is Benelux company Waterland. The 173m [euro] senior debt comprises term loans A, B and C each...

Loxam.
May 1, 2006... The facility backing the MBO of Loxam, the French plant hire business, is oversubscribed ahead of close, via mandated lead arranger Natexis Banques Populaire. HSBC and SG joined as joint lead arrangers. The 440m [euro] senior debt comprises...

LuK Fahrzeughydraulik.
May 1, 2006... Pricing has been flexed down 25bp on LuK Fahrzeughydraulik's oversubscribed 200m [euro] debt backing Electra Partners' secondary LBO of the company, via mandated lead arranger HVB. Dresdner KW joined as mandated lead arranger. The 55m...

MTU Friedrichshafen.
May 1, 2006... The 70m [euro] second lien tranche on the 1.17bn [euro] debt backing EQT's buyout of MTU Friedrichshafen has been scrapped and the amount added equally to the B and C tranches after a heavy oversubscription, via mandated lead arrangers and...

Nocibe.
May 1, 2006... The 500m [euro] facility backing Charterhouse's LBO of Nocibe the French perfume group has closed heavily oversubscribed, through mandated lead arrangers Bank of Scotland, BNP Paribas, Calyon and Fortis Bank. Given the level of...

Sauer.
May 1, 2006... Mandated lead arranger SG has wrapped up the 157m [euro] debt package backing Pamplona Capital's buyout of German auto parts maker Sauer. Senior debt is split between a 42m [euro] seven-year term loan paying 225bp over Euribor, 35m [euro]...

Seves.
May 1, 2006... Private equity groups Ergon, Vestar and Athena have mandated BNP Paribas, Banca Intesa and ING to arrange the debt backing the buyout of Seves, an Italian glass company. The consortium has agreed to acquire Ergon from a group that includes...

UPC Sverige.
May 1, 2006... Goldman Sachs has been mandated to arrange the debt supporting Carlyle and Providence Equity's SKr3.269bn (US$427m) purchase of Liberty Global's regional cable company, UPC Sverige. Carlyle and Providence plan to merge the cable business...

Warner Howard.
May 1, 2006... PHS Group's 695m [pounds sterling] loan supporting its acquisition of Warner Howard is preparing to launch to general syndication, via mandated lead arranger and bookrunner Bank of Scotland. Joint lead arrangers are Lloyds TSB and Mizuho...

M&A deal data.
May 1, 2006... This country analysis included acquisitions and buyouts announced between March 18 2006 and April 18 2006. Benelux Target Bidder Brainpower NV (NT)--Develop Bloomberg LP (US)--Provide...