There were only a handful of U.S. buyouts completed by the largest European buyout funds in 2010 and so far in 2011, but we thought it might be interesting to see who was active and who had money to invest.
peHUB takes a look at the most active European buyout funds investing in the United States in the last year, in order of largest fund size, based on data from Thomson Reuters. Interestingly, two Nordic investors feature in this top 10, both with a keen eye for international acquisitions for their Nordic portfolio companies. Nordic Capital currently ranks number two in this top ten and is currently investing its 4.3 billion euro ($5.9 billion) Nordic Capital VII fund. Fellow Nordic investor Altor Equity Partners features for its June 2011 investment in Orchid Orthopedic Solutions, a supplier of design, manufacturing, and supply chain services to orthopedic implant OEMs globally. It is currently investing from its 2 billion euro ($2.76 billion) Altor Fund III.
At the top of the list, however, is global buyout house Apax Partners, which boasts four completed deals in the United States in 2010/11 investing from two of its mega European buyout funds—the 4.31 billion euro ($5.96 billion) Apax Europe VI LP and the 11.2 billion euro ($15.5 billion) Apax Europe VII LP.
[slide title="Apax Partners"]
Description: Global buyout firm with European roots. Funds advised by Apax Partners typically invest in large companies with a value between 1 billion euros ($1.4 billion) and 5 billion euros ($6.9 billion). The funds invest in five sectors: financial & business services, healthcare, media, retail & consumer, tech & telecom.
Funds Investing: Apax Europe VI LP, 4.31 billion euros ($5.96 billion); Apax Europe VII LP, 11.2 billion euros ($15.5 billion).
Total Value of Deals (known/estimated): 549.36 million euros ($760.45 million)/ 605.14 million euros ($837.88 million).
Deal Information: Epicor Software Corp., provider of enterprise business software for the mid-market and divisions of Global 1000 companies (April 2011). Equity invested: 338.06 million euros ($467.97 million) from Apax Europe VII LP and 85.45 million euros ($118.29 million) from Apax Europe VI LP.
iGATE/Patni (January/May 2011). Apax funds invested up to $480 million in iGATE, an information technology company, and iGATE’s subsidiaries subsequently acquired a majority stake in Patni Computer Systems, a global provider of information technology services.
TriZetto Group, a supplier of software and related services to health plans and other health care payers (August 2010/February 2011). Value undisclosed.
Advantage Sales & Marketing, sales and marketing agency (November 2010). Value undisclosed.
[slide title="Nordic Capital"]
Description: Nordic buyout investor focused primarily on investments in large and medium-sized companies in the Nordic region and selected international investment opportunities.
Funds Investing: Nordic Capital VI, 1.9 billion euros ($2.6 billion); Nordic Capital VII, 4.3 billion euros ($5.9 billion).
Deal Information: Convatec, wound care and therapeutic products manufacturer (September 2011). Value undisclosed.
[slide title="Macquarie Capital Funds (Europe)"]
Description: European investment arm of Macquarie Capital Funds, a global investor and manager of infrastructure, real estate and other specialist businesses.
Funds Investing: Macquarie European Infrastructure Fund II, 4.6 billion euros ($6.4 billion).
Deal Information: Pre-Paid Legal Services Inc., a designer, underwriter and marketer of legal expense plans. Estimated equity value: 224.12 million euros ($309.8 million).
[slide title="Doughty Hanson & Co"]
Description: European buyout house acquiring majority stakes in market leading businesses with enterprise values in the range of 250 million euros ($344.6 million) to 1 billion euros ($1.4 billion).
Funds Investing: Doughty Hanson & Co V LP, 3 billion euros ($4.15 billion); Doughty Hanson Technology Ventures ($237 million).
Deal Information: MBA Polymers, a business specializing in separating and reselling high-value plastics from mixed electronics waste streams (October 2010). Value Undisclosed.
CloudFloor Corp., a provider of cloud services that manage and optimize enterprise cloud operations (December 2010). Value undisclosed.
[slide title="Altor Equity Partners"]
Description: A private equity firm focused on investing in and expanding medium sized companies anchored in the Nordic region.
Funds Investing: Altor Fund III, 2 billion euros ($2.76 billion).
Deal Information: Orchid Orthopedic Solutions, a supplier of design, manufacturing, and supply chain services to orthopedic implant OEMs globally (June 2011). Value undisclosed.
[slide title="Vision Capital"]
Description: A British firm that buys companies, mainly in whole portfolios, from organizations that wish to exit from their investments or divest subsidiaries for strategic reasons.
Funds Investing: Vision Capital Partners VII LP, 680 million euros ($940 million).
Deal Information: New Evolution Ventures, developer and operator of health and fitness brands (June 2011). Equity invested: 20.9 million euros ($28.9 million).
The Service Companies, hospitality outsourcing services (March 2011). Equity invested 10.3 million euros ($14.2 million).
Sweet Ovations, supplier of custom formulated food ingredients to North American food companies (September 2011). Value undisclosed.
[slide title="CBPE Capital"]
Description: British mid-market focused private equity firm committing to businesses that are UK-headquartered with scope to expand internationally with enterprise values of up to 200 million pounds ($316.2 million).
Funds Investing: Close Brothers Private Equity Fund VIII, 405 million pounds ($641 million).
Deal Information: AMF Bowling Worldwide Inc. (August 2010), chain of bowling centers. CBPE invested 20 million pounds ($31.7 million) in support of AMF Bowling’s acquisition of Hollywood Bowl.
[slide title="VENTIZZ Capital Partners"]
Description: A provider of growth capital and buyout financing for high tech companies in Western Europe with sales throughout the world.
Funds Investing: Ventizz Capital Fund IV LP, 450 million euros ($622 million).
Deal Information: 1366 Technologies Inc. (December 2010) The company eliminates the cost and production challenges that have hampered solar power’s ability to replace fossil fuels. Estimated equity value: 6.05 million euros ($8.35 million).
[slide title="Investindustrial Partners"]
Description: A buyout house focused on taking control positions in Southern European medium size companies that are leaders in their fields and with a goal of creating global businesses.
Funds Investing: Investindustrial LP, 323 million euros ($446.1 million).
Deal Information: PCCR USA Inc. (June 2011). Composites and coatings business. Deal value undisclosed.
[slide title="Ambienta SGR S.p.A."]
Description: An independent asset management company investing in unlisted companies in the environmental sector.
Funds Investing: Ambienta I Biomasse SRL, 217.5 million euros ($300 million).
Deal Information: MBA Polymers Inc., a producer of sustainably mined plastics from end-of-life durable goods. Equity invested: 10 million euros ($13.8 million).