Acquisitions Monthly articles from October 2002

Acquisitions Monthly archives from October 2002

M&A activity takes a global hit. (Insight).(merger and acquisition markets)
October 1, 2002... European merger and acquisition activity in the first three-quarters of 2002 showed a substantial drop to 6,593 deals with a value of US$337bn (366bn [euro]). This was down from 9,660 deals with a value US$432bn (469bn [euro]) during the...

M&A capital markets round-up: each month we will be reviewing current M&A activity in the capital markets and providing details and pricing of deals as they are financed.(leveraged buyout of Legrand S.A.)(Brief Article)
October 1, 2002... The second stage of underwriting on the backing of the Legrand buyout has received its first commitment. The first stage of underwriting was a success with 10 banks joining the facility as lead arrangers, with underwriting commitments of 250m...

Jefferson Smurfit.(buyout financing)(Brief Article)
October 1, 2002... The 3.675bn [euro] buyout financing for Jefferson Smurfit is in its second sub-underwriting phase. Banks are asked to sub-underwrite 75m [euro], with a target hold of 45m [euro] for an all-in upfront fee of 125bp. Total debt to EBIDTA is 4.6x,...

Telediffusion de France.(senior debt financing)(Brief Article)
October 1, 2002... The 1.34bn [euro] senior debt for Telediffusion de France is progressing smoothly, with mandated arrangers BNP Paribas and Citibank/SSSB still reporting very few declines to date. Lead arrangers sub-underwriting 100m [euro] will receive an...

Siemens.(sells seven businesses to Kohlberg, Kravis, Roberts and Company L.P.)(Brief Article)
October 1, 2002... KKR's 1.69bn [euro] buyout from Siemens of seven businesses with a combined turnover of 3.5bn [euro] is a complicated lending prospect. However, the financing has found support at this senior level, in particular from Landesbanks that have...

Haarmann & Reimer.(financing for buyout of company)(Brief Article)
October 1, 2002... The 880m [euro] senior debt facility Backing the buyout of Haarmann & Reimer, from German pharmaceutical giant Bayer, has launched to sub-underwriters, via mandated lead arrangers Commerzbank and JP Morgan. The facility comprises a 400m...

Elis.(buyout by Paribas Affaires Industrielles)(Brief Article)
October 1, 2002... Mandate lead arrangers CIBC World Markets and Credit Agricole Indosuez, have launched the second sub-underwriting stage of the 1.2bn [euro] senior and subordinated debt package for the secondary buyout of Elis by Paribas Affaires Industrielles...

Brake Brothers.(financing for acquisition by Clayton, Dubilier and Rice Inc.)(Brief Article)
October 1, 2002... The 295m [pounds sterling] (US$462m) loan backing the buyout of Brake Brothers by US firm Clayton, Dubilier & Rice, has attracted eight banks and several funds at the over-subscribed senior stage. The facility comprises a 70m [euro]...

BWG.(acquired by Electra Partners from Pernod Ricard)(Brief Article)
October 1, 2002... Mandated lead arrangers, Allied Irish Banks, CIBC World Markets and Bank of Ireland, have signed banks into the 272.5m [euro] senior debt financing, supporting Electra Partners' 220m [euro] acquisition of Irish food and wholesaling business BWG...

Cornhill Insurance.(management buyout by ASA Private Equity)(Brief Article)
October 1, 2002... HSBC CCF has been awarded the mandate to arrange all the senior debt financing to support the management buyout of Cornhill France by AXA Private Equity. The acquisition values the French subsidiary of Cornhill Insurance (UK) at between 30m...

Esselte.(JW Childs, leveraged finance package)(Brief Article)
October 1, 2002... Mandated lead arrangers UBS Warburg has extended the reply date for syndication of the US$435m equivalent leveraged finance package supporting the JW Childs-sponsored take private of Swedish office supplies manufacturer Esselte. Senior...

Fiat Teksid.(debt facility backing leveraged buyout of Fiat subsidiary)(Brief Article)
October 1, 2002... The senior debt facility, backing the 460m [euro] LBO of Fiat Teksid aluminium unit, by a consortium of private equity houses led by Questor Management, will total 170m [euro]. The leveraged loan should launch to market later this month, via...

Halfords.(financial backing for CVC Capital Partners' acquisition)(Brief Article)
October 1, 2002... The 305m [euro] senior secured facility Backing CVC Capital Partners' 427m [pounds sterling] acquisition of Halfords comprises a 95m [pounds sterling] seven-year term loan A at 225bp over Libor, a 62.5m [pounds sterling] eight-year term loan B...

Esporta Group.(Duke Street Capital acquires Invicta Leisure)(Brief Article)
October 1, 2002... Duke Street Capital has reached agreement with Invicta Leisure, the fitness clubs operator owned by RIT Capital Partners, Electra Partners and management, to acquire the company in a 140m [pounds sterling] secondary management buyout. The...

Lustucru.(Panzani's buyout of French pasta company)(Brief Article)
October 1, 2002... The 295m [euro] senior debt facility hacking Panzani's buyout of French pasta company Lustucru has launched to the market, via mandated lead arrangers Credit Lyonnais and Deutsche Bank (bookrunner). Panzani's acquisition is backed by equity...

Jessops.(ABN Amro Capital buying Jessops from Bridgepoint Capital)(Brief Article)
October 1, 2002... HSBC is mandated to arrange and underwrite the debt facility to support ABN AMRO Capital's secondary buyout of UK-based photographic retailer Jessops from Bridgepoint Capital. The debt facility will comprise a 57m [euro] senior piece and a 6m...

Synopses of the largest global deals in September 2002. (Market intelligence).
October 1, 2002... US -- RH Donnelley Corp definitively agreed to acquire Sprint Publishing & Advertising, a publisher and distributor of telephone directories, from Sprint Corp, for US$2.23bn in cash. Sprint announced that it was seeking a buyer for Sprint...

Successful in both bull and bear markets: Maurits Duynstee discusses how the chemical distribution business of Vopak was split-off into a newly-listed company called Univar. (Sponsored Article).
October 1, 2002... The Benelux equity capital markets and the M&A market have experienced a significant drop in activity, whereby not only the total transaction volume has declined, but also the average transaction size. There are no clear signs yet that the weak...

Roche and DSM mark major milestones: Heidi Dawley explains why DSM's acquisition of the vitamins and fine chemicals business of Roche is significant for both companies. (Deal of the month).
October 1, 2002... When Roche Holdings announced the sale of its vitamins and fine chemicals division to Dutch chemicals and life sciences group DSM for SFr3.31bn (2.25bn [euro]) on September 3, it ended months of speculation about the future of the division. ...

Why choose a boutique adviser? `What are your criteria when selecting a corporate finance adviser? You work closely with an independent corporate finance house--what made you decide to work with them, rather than using an investment bank or perhaps an accountancy firm?' (Corporate Viewpoints).
October 1, 2002... "Davies Laing & Dick was a third-generation family company, which had grown over 70 years to become a leading UK independent education group. By 2001, retirements were reducing shareholder executive control and the four shareholder groups...

Conflicting evidence on the health of the UK economy: Peter Hemington of BDO Stoy Hayward reviews the performance of the index which increased slightly to a price earnings multiple of 12.5 in the second quarter. (Market intelligence).
October 1, 2002... The Private Company Price Index increased slightly to a P/E multiple of 12.5 in the second quarter, from 12.1 at the beginning of 2002. The performance of the quoted sector remained stable, with a P/E multiple of 22.5. The second quarter...

Banks scurry around for deals: the M&A market looks set for a long period in the doldrums and banks will have to adapt. (Third quarter review).
October 1, 2002... The M&A market is well entrenched in the doldrums. There are pockets of resistance to this condition but they have dwindled and investment banks have been forced to adapt. "The downturn will last a lot longer than originally expected,"...

Keeper of 3i's treasure: Michael Queen set out almost two decades ago in private equity with the intention of staying for two years. However, he has remained dedicated to the cause and is now 3i's finance director and the new chairman of the BVCA. Here he talks to Natasha Berg about 3i's strategy, doing deals in technology, the BVCA and how to capitalise on a network of contacts. (AM interview).
October 1, 2002... Sitting in his Waterloo office in London, it is easy to see why Michael Queen is averse to speaking at large public conferences. The softly spoken and rather unassuming Yorkshireman has a very sincere, relaxed approach, which lends itself...

Who's next in Madrid? As bank of Scotland takes a strategic; bet on the Spanish debt market, Natasha Berg investigates which buyout house is next to hit the southern shores. (Institutions).
October 1, 2002... So Bank of Scotland (BoS) is taking a strategic bet on the Spanish buyout market. September saw the official opening of the bank's new corporate banking offices in Madrid as part of its continued expansion in Continental Europe. The Madrid...

Barrett steps up to be chairman. (Institutions).
October 1, 2002... Stephen Barrett has stepped up to the position of international chairman of KPMG Corporate Finance at a difficult time but he is undaunted. The KPMG group announced in July that it would make redundancies to cut costs and nearly 10% of its...

Rothschild shows no fear of the future; Meyrick Cox opts for the Rothschild approach to investment banking. (Institutions).
October 1, 2002... Meyrick Cox has joined a select band of managing directors who have chosen to leave Goldman Sachs. After nine years with the US investment bank Cox has joined Rothschild as head of the industrials team. Rothschild has not been afraid of...

Playing the independent card; independent corporate finance houses say they are more than holding their own in the M&A market. (Institutions).
October 1, 2002... Independent corporate finance houses and boutiques are seeking to exploit the turmoil in the large investment banks and they say they are making important headway. Although the vast majority remain focused on small mid-market activity,...

Defining an independent advisory firm: what constitutes an independent corporate finance firm? (Institutions).
October 1, 2002... For the purposes of the Acquisitions Monthly/Thomson Financial league tables independent corporate finance houses can only include firms that exclusively do corporate finance work and are not majority owned by businesses involved in...

Revolution in EU merger control? Philip Lowe, the new head of the DG competition, has indicated he may be prepared to be much more radical than his predecessor. (Legal and Regulatory).
October 1, 2002... Is revolution about to engulf EU merger control? So far the European Commission has appeared to be anything but radical in its approach to reform of the EU merger control regime. It is true that the Commission's Green Paper on merger reform...

Corporate governance impact on M&A: as the Sarbanes-Oxley proposals are enacted on both sides of the Atlantic, Ben Harding assesses the possible impact on the M&A process. (Legal and Regulatory).
October 1, 2002... Enron and the US Congressional elections have boosted corporate governance on the agenda on both sides of the Atlantic. The resulting legislation, the Sarbanes-Oxley Act, could have far reaching implications for the whole M&A market. ...

Is consolidation on the horizon? With a difficult fundraising environment and a raft of non-profit making companies is it time for the biotech sector to start consolidating itself?
October 1, 2002... A year ago biotech was seen as the hot ticket in the race for sector popularity. Now the picture is somewhat different. Fundraising has abated, as in other sectors, and this raft of predominantly nonprofit making companies have encountered a...

Wonderful World of Disney no more: the advertising recession has created some obvious takeover targets in the media sector. (TMT sector report).
October 1, 2002... The mega-media merger, a breed of deal that seemed to have all but died out after the disastrous combination of AOL and Time Warner at the climax of the dotcom boom, looked set to make a comeback in September. Analysts say the brutal...

Lazard and Intesa link up: Lazard and intesaboci, the largest bank in Italy, have announced a strategic alliance that has important implications for their future investment banking activity in Italy. (FIG sector report).
October 1, 2002... It is all very well to be the country's biggest banking group, as IntesaBci is in Italy. But its ambitions stretch beyond branch networks, consumer finance, loans to small firms and the run-of-the-mill daily dealings of retail banking....

British Energy: from bust to boom? The UK's principal nuclear generator, British Energy, seems certain to be the focus of acquisition interest. (Utilities sector report).
October 1, 2002... The UK Government announced on September 27 that it would provide a 650m [pounds sterling] (US$1,020bn) loan to keep British Energy afloat for the next two months. It is not that a direct bid for the company is expected to materialise, at least...

Monthly sector analysis: this sector analysis includes acquisitions and buyouts announced between 1 September and 24 September, 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).
October 1, 2002... Monthly Sector Analysis Seller--activity Bidder--activity Price Date (US$m) 01: AGRICULTURE, FORESTRY, AND FISHING 0175: Deciduous tree fruits Dole...

Moving in the mid-markets (US$500m-US$50m) overview.
October 1, 2002... Overview The healthcare and pharmaceutical industry proved busy mid market sectors in September. Intercare Group of the UK kicked off activity with the US$54.6m acquisition of LCO Sante, a manufacturer of biological and hormone products....

Sector watch: publishing: trade and financial buyers are battling for trade publishing assets. (Moving in the mid-markets).
October 1, 2002... Trade buyers Taylor & Francis and John Wiley are in the bidding for Kluwer Academic Publishing alongside two of the UK's largest buyout firms, Candover and Cinven. Both the US publisher John Wiley and its UK competitor Taylor & Francis can see...

Sector diversity a crucial factor in South-West: this month we look at the South-West region, in particular the Bristol area--where sector diversity has proved a stabilising factor. (Moving in the mid-markets).
October 1, 2002... The South-West of England provides a far different M&A and private equity landscape in comparison to the South-East. Here, there is a move away from the arguably narrow and immature high tech boom-and-bust situation found in the Thames Valley,...

Holmes Place recommends Cannons offer. (Moving in the mid-markets).
October 1, 2002... The board of Holmes Place has thrown its weight behind a 205m [pounds sterling] (US$320m) offer from its privately-owned competitor Cannons. Holmes Place, a UK-based and listed health and fitness club operator, had already announced that...

Hammerson set to take Grantchester. (Moving in the mid-markets).
October 1, 2002... The UK property group Hammerson look set to acquire Grantchester Holdings after launching a 192m [pounds sterling] ($300m) offer for the company. The price on the table is some 14% higher than that offered by the management buyout vehicle...

Hot off the press: newspapers were not just writing about France's mid-market deals this summer--they were the story themselves. (Country focus: France).
October 1, 2002... The French media saw a shake-up in late August when Vivendi Universal announced that it planned to sell its consumer press division to the Socpresse group. Socpresse is part of the Hersant family's media group and owner of French daily...

Behind the buyouts: overview.
October 1, 2002... Overview September saw ABN AMRO acquiring photographic retailer Jessops for US$182m, in a successful deal that also !aid bare the market's unhealthy features. Surprise came not only in the way of the exit, a trade sale, but in that anyone...

Jessops shows market limitations; Goldman Sachs's involvement in a middle-market secondary buyout shows how options are restricted in the present market. (Deal of the month).
October 1, 2002... Bridgepoint Capital's 116m [pounds sterling] (US$182m) sale of photographic retailer Jessops to ABN AMRO Capital last month was a successful exit but it also laid bare the market's unhealthy features. Bridgepoint had hoped to float the...

Carlyle chosen by MoD for QinetiQ: the UK Ministry of Defence has chosen us buyout firm Carlyle as its preferred strategic investor for its QinetiQ research organization. (Behind the buyouts).
October 1, 2002... The Ministry of Defence (MOD) has announced that it has chosen US buyout specialist Carlyle Group as the preferred bidder for a stake in QinetiQ, the scientific research organisation spun off from the MoD in July 2001. Neither the MoD nor...

PEs take another stake in yellow pages. (Behind the buyouts).
October 1, 2002... Not to be outdone by its illustrious top-table competitors--Apax, Hicks Muse, TH Lee, Welsh Anderson Stowe and Carlyle--Kohlberg Kravis Roberts has acquired its own chunk of the global telephone directories business. A consortium...

French perfume retailer Nocibe sold. (Behind the buyouts).
October 1, 2002... Bridgepoint Capital has reached agreement with Netherlands-based retailer Kruidvat to acquire Nocibe, the company's French perfume retail division. European private equity house Bridgepoint is backing company founder Daniel Vercamer as...

Advent buys Rhein Chemie from Bayer. (Behind the buyouts).
October 1, 2002... Subject to final approvals, all Advent International-backed newco has acquired the Rhein Chemie group of companies from Bayer AG, Europe's second largest pharmaceuticals group. According to Dr John Walker, European chairman of Advent...

Bain Capital acquires Jack Wolfskin. (Behind the buyouts).
October 1, 2002... In a deal valued at 64m [euro], private equity group Bain Capital has acquired German-based outdoor equipment manufacturer Jack Wolfskin. The deal is the first buyout in Germany for Bain, which recently opened an office in Munich and is in...

Gresham goes it alone: one of the most successful UK private equity houses specialising in the middle market is spinning out to become an independent company. (Behind the buyouts).
October 1, 2002... In a deal that is seen as mutually beneficial to both groups, Gresham, the UK-based mid-market private equity house, is spinning out of the Zurich Financial Services Group to become an independent company. By structuring a limited partnership...

3i sells Sintax stake. (Exits in brief).
October 1, 2002... Pan-European venture capitalist 3i has sold its stake in Sintax Logistica, the Spanish vehicle transport company. Spanish construction group Dragados has acquired 70% of the company and plans to buy the remaining 30% within three years....

Barclays loses Momentum. (Exits in brief).
October 1, 2002... Barclays Private Equity has sold its stake in Momentum Financial Services, the independent financial adviser, to Aegon as part of the latter's strategy of building up its distribution activities in the UK. Momentum was formed in 2000 through...

Dagard in secondary buyout. (Exits in brief).
October 1, 2002... The acquisition of Dagard by a bank-backed consortium of private investors has provided Apax Partners with an exit from the manufacturer of insulated enclosures for cold and clean rooms. The acquisition is being financed by the private...

NBGI backs Mountain Warehouse. (Exits in brief).
October 1, 2002... NBGI Private Equity has backed the secondary buyout of Mountain Warehouse, the UK's leading value retailer of outdoor clothing and equipment. The deal involves 21 Invest selling its interest and Mark Neale, the managing director, rolling over...

Granville sees healthy returns. (Exits in brief).
October 1, 2002... UK private equity house, Granville Baird Capital, expects to see a return on its money of 4.6 times following the sale of Ukpractice.net for an undisclosed sum. Ukpractice.net, the secure internet medical community portal, has been...

Financial sponsors keep France alive: private equity players are now a real force in French M&A. (France).
October 1, 2002... Financial sponsors have become almost a life support mechanism for the French market. In an otherwise extremely difficult year for anyone involved in French M&A, 2002 could well be remembered as the year that private equity became a real force...

M&A deal data. (Benelux, France, Germany).
October 1, 2002... M&A deal data Benelux Target Ballast HAM Baggeren BV (NE) 33.0% --Provide construction & dredging services Sales ($): n/a Net Profits ($): n/a Bidder Hollandsche Beton Groep NV (NE)...

Country codes.
October 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 ...

Optimism centres on the future activity: the last six months saw a resilient period for the Netherlands with private equity shoring up activity. Its Belgium neighbour proved less successful in the M&A arena, but optimism remains that transactions will take off.
October 1, 2002... On the surface the market in The Benelux has remained relatively robust this year with M&A activity only down a couple of per cent in the first half, from 40bn [euro] in the same period last year, to 38bn [euro] this year. However, the...

Management buyouts lead the way: in contrast to Belgium where there is little life in the private equity market to date, the MBO market in the Netherlands is leading the way in M&A activity. (Benelux M&A and private equity).
October 1, 2002... Both the Netherlands and Belgium are relatively new to the private equity scene, compared with the UK; the immaturity of the markets is reflected in the reluctance of local family-owned businesses to sell out to financial buyers. Private...

Green holds on to street-cred; Natasha Berg examines why Phillip Green's recent takeover of Arcadia says more about him than about the UK's consolidating retail sector. (Deal of the month).
October 1, 2002... Retail analysts everywhere are holding off on predictions about whether British retailing impresario Phillip Greens takeover of Arcadia will be another step in the increasing consolidation in the retail sector. According to many, the deal tells...

ABN AMRO integrated solution. (Sponsorship statement).
October 1, 2002... Corporate finance forms an integral part of the broad-based relationships that ABN AMRO develops with its clients, providing them with strategic financial advice related to mergers and acquisitions, divestments, flotations, secondary placings,...

The recap as an exit alternative: expect to see the recapitalisation growing in the Benelux region as a an attractive alternative exit route. (Sponsored Article).
October 1, 2002... The private equity landscape in the Benelux has changed over the past decade. Originally, the market was dominated by captives such as ABN AMRO, Parcom, and Parnib, regional players like BOM, GIMV, GOM and LIOF and some family-owned funds...

NIB Capital Bank. (Sponsorship statement).
October 1, 2002... NIB Capital Bank belongs a financial group that consists of NIB Capital Bank, NIB Capital Private Equity and NIBC Petercam Derivatives (a 50% joint venture). The shareholders of this group are ABP (Europe's largest and the world's second...