Acquisitions Monthly articles from September 2006

Acquisitions Monthly archives from September 2006

Self-assessment deadline--September 30.(AWARDS NOMINATION PROCESS)
September 1, 2006... Acquisitions Monthly magazine encourages firms to make submissions for its awards for M&A and buyout work completed during 2006. The winners will be announced at the Acquisitions Monthly Awards Dinner on Tuesday January 23 2007 and choices...

August snapshot: synopses of the largest global deals announced last month.(MARKET INTELLIGENCE)
September 1, 2006... CANADA Cia Vale do Rio Doce launched a challenging tender offer to acquire all the outstanding common stock of Inco Ltd (IN), a nickel mining company, for C$86 (US$76.472) in cash per share, or a total value of C$19.508bn (US$17.347bn). The...

Corporate finance recruiting: "what are the main challenges you are currently facing in terms of finding the right corporate financiers/dealmakers for your clients?".(MARKET INTELLIGENCE)
September 1, 2006... "It's boom time again for the investment banking industry. We haven't seen a deal flow like this since the dotcom boom. Investment banks are hiring furiously to service this demand. This time, though, they are finding it harder to find the...

Mining, metals and China: Xstrata has just bought Falconbridge, sending it into the top tier of mining companies as nickel and copper prices soar. But how will metal prices pan out and where do mining deals fit into the commodity cycle?(SECTOR REPORTS: LEAD FEATURE)
September 1, 2006... Two non-ferrous metals-nickel and copper--figured the centre of the battle this year between Xstrata and Inco for control of Canadian miner Falconbridge, a company that was finally valued at C$24.1bn (US$21.2bn). The takeover contest kicked...

Big telco deals return: Serbia sells number two mobile player to Norwegians for 1.5bn [euro] while Portugal's richest man, backing 11.1 bn [euro] merger, must wait for competition approval.(SECTOR REPORTS: FOCUS ON TMT)
September 1, 2006... Demanding shareholders are forcing telecoms players to look abroad for acquisitions as their domestic markets mature, or for consolidation at home to extract cost-saving synergies and take out competitors in the process. Norwegian telecoms...

Its not all double Dutch for cable: private equity firms Warburg Pincus and Cinven plan a new 5.45bn [euro] cable company in the Netherlands to knock Liberty Global off the top spot.(SECTOR REPORTS: FOCUS ON TMT)(Company overview)
September 1, 2006... Cable companies are back in fashion again after the previous bankruptcies of NTL and Telewest. Warburg Pincus and Cinven, the US-European private equity duo, successfully outbid rivals BC Partners, Macquarie and Liberty Global at the beginning...

Only the best at the captain's table: August has been a hot month, with Unilever selling Birds Eye, United Biscuits going under the hammer and Northern Foods plodding along with its own self-imposed break-up.(BEHIND THE BUYOUTS: PRIVATE EQUITY COLUMN)
September 1, 2006... August is usually a time when M&A deal flows slow down. For the food sector, however, it has been a busy month. Two massive 1bn [pounds sterling] auctions handled by US investment bank Goldman Sachs should have completed. One auction involves...

Senior debt fees grow: as the scale (and riskiness) of acquisition finance grows, record fees are generated.(BEHIND THE BUYOUTS)
September 1, 2006... Acquisitions Monthly publishes fee estimates by Thomson Financial/Freeman & Co for senior debt arrangers for the year 2005 and for 2006 to-date. The searches were compiled using a standard syndicated loans search including leveraged buyouts and...

Retail M&A pauses for breath: competition is getting tougher for private equity firms. Where is the market going?(BEHIND THE BUYOUTS)
September 1, 2006... ILVA's rapid international expansion is just one of many examples where the knowledge brought in by a private equity fund has been crucial to expanding the retail business in a sustainable manner. Since private equity firm Advent...

TNT sells logistics unit to Apollo Management for US$1.9bn.(BEHIND THE BUYOUTS)
September 1, 2006... Dutch transport and distribution group TNT has agreed to sell its logistics division to US-based buyout firm Apollo Management. The total transaction value is 1.48bn [euro] (US$1.9bn) on a cash and debt free basis. TNT intends to return...

Philips deal attracts Bain and Apax.(BEHIND THE BUYOUTS)
September 1, 2006... Buyout firms Bain Capital and Apax Partners have joined the private equity consortium that has agreed to acquire an 80.1% stake in the semiconductor division of Philips Electronics. Philips announced on August 3 that it had signed an agreement...

Travelodge sold to DIC for US$1.2bn.(BEHIND THE BUYOUTS)
September 1, 2006... Dubai International Capital (DIC) has signed an agreement to buy UK budget hotel operator Travelodge from private equity firm Permira, in a deal worth about 650m [pounds sterling] (US$1.2bn). Permira-advised funds backed the buyout of...

Permira backs ALL3MEDIA MBO.(BEHIND THE BUYOUTS)
September 1, 2006... Permira has acquired ALL3MEDIA, an independent media production company, through a secondary buyout from Bridgepoint for an enterprise value of 320m [pounds sterling] (US$597m). This is a reported 5.5x return and a higher than expected...

Sweden the king of private equity: the Scandinavian private equity market offers potential for expansion, with regional investment houses at the forefront of activity.(MOVING IN THE MID-MARKETS: US$500M-US$30M)
September 1, 2006... Sweden is now second only to the UK for private equity investment in Europe when investment is calculated as a percentage of GDP, according to the European Venture Capital Association (EVCA). Almost 0.6% of Sweden's GDP goes into private...

From luxury to budget: the hotel sector is riding high on the wave of sale/leaseback and sale/manage back deals as property investors flock to acquire assets in this sector. But have valuations reached a peak and are we near a downturn in the hotel cycle?(MOVING IN THE MID-MARKETS)
September 1, 2006... The hotel sector is primed for Low interest rates and a high GDP in the UK means hotel businesses are currently in the strong part of their cycle. At the same time, institutions are upping their allocations to property assets. These two...

Medical devices M&A market booming: private equity is increasingly interested in the medical devices sector competing with established corporate investors.(MOVING IN THE MID-MARKETS)
September 1, 2006... The medical devices M&A market has been growing steadily over the last few years. Historically, corporates have established themselves as the main players in the market but recently private equity and venture capital firms have become more...

VNU.(M&A capital markets round-up)
September 1, 2006... The debt package backing the 8.7bn [euro] take private of Dutch media company VNU is progressing well in syndication through mandated lead arrangers ABN AMRO, Citigroup, Deutsche Bank, JP Morgan, ING and Lehman Brothers. Citigroup is leading...

Five banks are lined up to arrange a debt package totaling just under 4bn [euro] to back the LBO of the combined Dutch cable assets of Casema, Multikabel and Essent Kabelcom.(M&A capital markets round-up)
September 1, 2006... Five banks are lined up to arrange a debt package totaling just under 4bn [euro] to back the LBO of the combined Dutch cable assets of Casema, Multikabel and Essent Kabelcom. ABN AMRO, Credit Suisse, Goldman Sachs, ING and Morgan Stanley...

Brenntag.(M&A capital markets round-up)
September 1, 2006... Brenntag has already secured enough approvals on its 2.448bn [euro] amendment and 355.2m [euro] add-on facility to push the deal through. The deal is in the market via leads Deutsche Bank, Goldman Sachs and Morgan Stanley as mandated lead...

Phones 4U.(M&A capital markets round-up)
September 1, 2006... Barclays and ING have won the mandate to arrange the 600m [pounds sterling] financing backing the buyout of Phones 4U by sponsor Providence Equity Partners. Syndication of the 600m [pounds sterling] MBO will be launched in September. Private...

Avio.(M&A capital markets round-up)
September 1, 2006... Cinven has mandated Banca Intesa, Citigroup, JPMorgan, Lehman Brothers, RBS and Unicredito to arrange the debt backing its buyout of Avio. Carlyle and Finmeccanica are selling their respective 70% and 30% stakes in the Italian aerospace group...

AMEC SPIE.(M&A capital markets round-up)
September 1, 2006... Senior syndication of the 960m [euro] loan backing PAI Partners' LBO of engineering group AMEC SPIE has wrapped up, via co-ordinating bookrunner SG and bookrunner BNP Paribas. ABN AMRO, ING and Natexis Banques Populaires joined as joint lead...

All3Media.(M&A capital markets round-up)
September 1, 2006... Permira has bought a majority stake in independent UK production company All3Media from Bridgepoint, which backed an MBO of the company in 2003. Permira's purchase values the company, which produces Richard and July and Holyoaks, at 212m...

Carlson Wagonlit.(M&A capital markets round-up)
September 1, 2006... Carlson Wagonlit has closed its 1.195bn [euro] LBO loan, via mandated lead arrangers JPMorgan, Lehman Brothers and Morgan Stanley. Debt comprises a 250m [euro] seven-year revolver at 225bp over Euribor, a 600m [euro] eight-year term loan B at...

Centre Parks.(M&A capital markets round-up)
September 1, 2006... Pricing on leisure park operator Centre Parks' 240m [pounds sterling] debt package backing Blackstone's buyout of the company has been flexed down and the structure tweaked after a heavy oversubscription, via mandated lead arranger Barclays....

Wendel Investissement.(M&A capital markets round-up)
September 1, 2006... Deutsch Connectors' US$800m facility backing the buyout by Wendel Investissement has been seen closing significantly oversubscribed, through joint bookrunners JPMorgan and Royal Bank of Scotland. GE Commercial Finance joined as a...

Eircom.(M&A capital markets round-up)
September 1, 2006... Lenders have accepted the pricing and structural flex to the 3.65bn [euro] loan package backing Babcock & Brown's led buyout of Eircom. Mandated lead arrangers and bookrunners Barclays, Credit Suisse, Deutsche Bank, Dresdner Kleinwort and...

Groupe Elior.(M&A capital markets round-up)
September 1, 2006... French catering company Groupe Elior has proposed a downward flex to its 1.97bn [euro] take-private loan following a large oversubscription in general syndication. Bookrunners are Calyon, Merrill Lynch and Morgan Stanley. The change will see...

Iberostar.(M&A capital markets round-up)
September 1, 2006... * The B tranche on the 630m [euro] debt package backing the buyout of Iberostar's travel business by Carlyle has been flexed down by an eighth. The deal has now been freed to trade by joint bookrunners Goldman Sachs and SG, with Caja Madrid as...

Kabel Baden-Wuerttemberg.(M&A capital markets round-up)
September 1, 2006... * Kabel Baden-Wuerttemberg (KBW) has launched general syndication of its 1.27 bn [euro] loan via bookrunners Morgan Stanley and RBS. The loan supports KBW's secondary LBO by sponsor EQT. Blackstone is the vendor. The loan is structured as a...

Limoni.(M&A capital markets round-up)
September 1, 2006... * Limoni, the Italian perfumes and cosmetic retailer, has closed the 295.1m [euro] debt package backing its Bridgepoint backed buyout. Mandated lead arrangers and bookrunners are Banca Intesa, BNP Paribas and ING. The facility has scored an...

MAN Roland Druckmaschinen.(M&A capital markets round-up)
September 1, 2006... * MAN Roland Druckmaschinen has launched senior syndication a 830m [euro] debt package backing Allianz Capital Partners part acquisition of the company through sole bookrunner and MLA HVB. Allianz Capital Partners will own 65% of the company,...

Materis.(M&A capital markets round-up)
September 1, 2006... * The retail phase of the 1.9447[euro]bn debt package backing Wendel Investissements buyout of French speciality building materials group Materis has closed oversubscribed, through mandated lead arranger BNP Paribas. LBO France is selling the...

McCarthy & Stone.(M&A capital markets round-up)
September 1, 2006... * Permira and Barclays Capital have mandated Barclays and RBS to arrange the debt supporting its 1.028[euro]bn takeover of UK retirement home builder, McCarthy& Stone. The offer comes after a fierce bidding war, which saw a rival bidding group...

Groupe Moniteur.(M&A capital markets round-up)
September 1, 2006... * Pricing on Groupe Moniteur's 337m [euro] debt package backing its acquisition by Bridgepoint has been reverse flexed. Calyon and RBS are mandated lead arrangers and bookrunners on the senior debt, and on the mezzanine level with ICG. Pricing...

PagesJaunes.(M&A capital markets round-up)
September 1, 2006... * Six banks have been mandated to bookrun the debt backing KKR's LBO of PagesJaunes, which could see around 5[euro]bn of debt come to market around early October time. The six are Bank of America, Calyon, Deutsche Bank, Goldman Sachs, JPMorgan...

Tommy Hilfiger.(M&A capital markets round-up)
September 1, 2006... * Tommy Hilfiger has closed syndication of its 1.115[euro]bn loan backing its LBO by Apax Partners. Bookrunners are Credit Suisse and Citigroup, with Fortis Bank as mandated lead arranger. The deal closed successfully on every tranche although...

Visma.(M&A capital markets round-up)
September 1, 2006... * Norwegian business software firm Visma has closed syndication of the debt package backing its Nkr4.3bn (540m [euro]) buyout by Engel, HgCapital's bid vehicle, through sole bookrunner Citigroup. The facility comprises a Nkr420m A loan, a...

M&A deal data: this country analysis included acquisitions and buyouts announced between July 19 2006 and August 15 2006.
September 1, 2006... Benelux Target Bidder Bouwfonds Property Finance BV (NE) SNS Reaal Groep NV (NE)--Bank --Property financing services Sales ($): n/a Sales ($): 5,373.50m Net Profits ($): n/a...

Germany expects M&A slowdown after record first half: despite expecting fewer blockbusters, the deal pipeline is looking healthy, driven by deals valued at 1bn [euro] to 5bn [euro].(OVERVIEW)
September 1, 2006... In the first half of 2006, announced M&A transactions involving German companies reached a record value of almost US$176bn, according to data by Thomson Financial, generating a higher aggregate deal value than all of 2005 and any half year...

Germany--profile of Bank of Ireland's Acquisition Finance team: Bank of Ireland's Acquisition Finance unit was established in 1996 and has dedicated equity sponsor coverage teams in Dublin, London, Paris, Frankfurt and Greenwich Connecticut.(SPONSORED PROFILE)
September 1, 2006... The global team, which comprises 72 professionals, is a leading arranger and underwriter of mid-cap European and US sponsor-backed leveraged finance transactions and is wholly committed to building quality, long-term relationships by delivering...

A fertile source of business opportunities: the leveraged finance market in Germany has grown dramatically in recent years and further steady growth is likely, writes Maurice FitzGerald Director, Bank of Ireland's Acquisition Finance team, Germany.(SPONSORED ARTICLE: BANK OF IRELAND)
September 1, 2006... Until the mid-1990s corporate Germany had been relatively slow to embrace the concept of leveraged buyouts compared with other major European markets such as the UK and France, where the private equity driven LBO model and the use of leveraged...

Deutsche Telekom deal opens the door: Blackstone's stake in Deutsche Telekom may lead to more public minority investments by private equity investors.(PRIVATE EQUITY)
September 1, 2006... Backstone's acquisition of a 4.5% stake in state-owned Deutsche Telekom in April 2006 marked a turning point for the German private equity market. It has been taken as a sign that Germany is ready to start living with the so-called locusts,...

PPM Capital.(SPONSORED PROFILE)(Company overview)
September 1, 2006... PPM Capital is a leading provider of private equity finance. It has been investing in businesses for nearly 20 years and during that time has built up a wealth of experience in buying, backing and growing businesses. With a focus on mid-market...

Creating value: with purchase price multiples at an all-time high in Germany, private equity firms need to work harder than ever to employ strategies that ensure sufficient value creation and maintain returns. Dr Sebastian Kern and Guido May of PPM Capital Munich look at Germany's challenging mid-market.(SPONSORED ARTICLE: PPM CAPITAL)
September 1, 2006... Competition among private equity firms for buyout opportunities in Germany has never been stronger. The number of buyout houses active in the country has risen in the last few years and following Europe's recent private equity fundraising...

Ever-larger LBOs stealing the show: Mittelstand companies have been neglected as ever-larger LBOs have been stealing the show, but there are indications that family-owned companies will provide a vast number of LBO opportunities in the years to come.(LEVERAGED BUYOUTS)
September 1, 2006... In the first half of 2006, Thomson Financial recorded 59 leveraged buyouts involving German targets, with a total transaction value of about US$4.1bn. The true figure is likely to be considerably higher because a number of transactions with an...

Societe Generale Corporate & Investment Banking, Germany.(SPONSORED PROFILE: SOCIETE GENERALE)
September 1, 2006... When in October 2002 Societe Generale Corporate & Investment Banking's (SGCIB) Rene de Laigue, global head of lever-aged finance and acquisition finance, inflated a leveraged finance presence in Germany, this was seen as a logical step in...

Goodbye to traditional LBO structures? Claus Peter, Managing Director Leveraged Finance Group, Frankfurt, and Thomas Racky, Managing Director Financial Sponsor Coverage, Frankfurt, look at the changing face of LBO structures in Germany.(SPONSORED ARTICLE: SOCIETE GENERALE CORPORATE & INVESTMENT BANKING)
September 1, 2006... Stretched corporate valuations, highly competitive M&A auctions, high leverages and returning trade buyers--these are the characteristics financial sponsors currently face in the German private equity market. There is a growing imbalance...

German success stories: to show how the sector has developed over recent years, we present case studies of successful private equity deals in Germany--discussing how the deals came about, what made them work and how successful exits were achieved.(CASE STUDIES)
September 1, 2006... "Peine Group is a leading producer of menswear in the mid-market segment and exports to most European countries. Its brands include Mario Barutti, Masterhand, Pierre Laffitte and San Siro. The company is located in Wilhelmshaven and is...