Madison Dearborn Makes Nearly 2x Their Money on BWAY

It only took two years for Madison Dearborn Partners to nearly double its money on BWAY Parent Co.

Platinum Equity said earlier this week that it agreed to buy BWAY for $1.24 billion. Atlanta-based BWAY makes paint and aerosol cans as well as steel open and tight-headed pails. The sale is expected to close in fourth quarter.

Chicago-based Madison Dearborn acquired BWAY in June 2010 in a deal valued at $915 million. Madison Dearborn, and certain members of management, invested about $294 million equity, according to SEC filings.

The company, just months after its sale to MDP, issued $150 million in PIK Toggle notes and used the proceeds to pay a dividend of $138.4 million to shareholders, regulatory filings say.

The Deal says that MDP received another $400 million in cash from the transaction.

It’s unclear how much in debt BWAY has right now. The company produced about $1 billion in sales for the year ended Sept. 30. Long-term debt was  $683.8 million, SEC filings say.

With the BWAY sale, Madison Dearborn will make about 2x its investment, peHUB has learned.

BWAY is the latest exit for MDP. In August, MDP completed its sale of Bolthouse Farms to Campbell Soup for about $1.55 billion. Madison Dearborn, in February, also agreed to sell TransUnion, which it owned with the Pritzker family, to Advent and GS Capital. The deal was valued at $3 billion.

Photo courtesy of Shutterstock

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1 Comment

  • Funny that we celebrate this ‘flip’ when this rag spends NO time talking about the thousands of other companies with no exits in sight. Amazing that most PE Firms have made so many acquisitions leveraging HUGE loans from commercial banks, loans that have almost no chance of ever being paid back.

    TPG has over 125 companies in its “parking lot”, Carlyle has more. Companies bought with loans, ‘investors’ who paid themselves off immediately.

    How about an article on the future for all the other companies that will never find homes?

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