Posted on: December 7, 2011 by Luisa Beltran
Many bubble-era LBOs have turned in poor performances, according to a report from Moody’s Investors Service.
Moody’s looked at 40 LBOs from 2006 to early 2008, the go-go days for buyouts. While a majority of the companies have seen their financial leverage drop, earnings and revenue growth for most have been “significantly below” projections, Moody’s said.
Exits for the bubble group have also been rare. In fact, most are still owned by their PE owners, the report said. Seven have completed IPOs and only one target has been sold (that’s Alltel. Verizon Wireless acquired Alltel in 2009; it had been owned by TPG and Goldman Sachs PE unit). Only five of the companies have paid “material dividends,” while three companies–Chrysler, Aleris International and Station Casinos– have filed for bankruptcy, Moody’s said.
Tags: Bain, Dollar General, HCA, KKR
Posted on: June 2, 2011 by Jonathan Marino
PE’s Jake & Elwood: What won’t the Gores boys try and buy into?
Drill, Baby! OPEC says greater oil output needed
Dollar General: Shares take a slide, but 247wallst.com argues for why investors (and, PE buyers) want to take a second look at the discount champ
Thank Goodness! Shares get a boost before jobs data
Tags: Dollar General, Gores Group
Posted on: August 31, 2010 by Eamon Beltran
(Reuters) – Dollar General Corp (DG.N) posted a higher-than-expected quarterly profit as it attracted bargain-seeking consumers who spent more per visit, and the discount retailer raised its profit outlook. In a statement, Chief Executive Rick Dreiling said Dollar General’s sales momentum continued to build as the quarter progressed and said he was “encouraged” with the [...]
Tags: Dollar General, KKR
Posted on: April 15, 2010 by PEHub Administrator
NEW YORK (Reuters) – Dollar General Corp (DG.N) on Wednesday priced 26 million shares at $27 each in a secondary public offering that allowed certain shareholders to sell their stock, the company said in a statement. Private equity firm Kohlberg Kravis Roberts & Co owned 88 percent of Dollar General’s shares following the company’s public [...]
Tags: Dollar General
Posted on: December 10, 2009 by PEHub Administrator
NEW YORK (Reuters) – Discounter Dollar General Corp’s (DG.N) reported a quarterly profit on Thursday as the retailer benefited from higher customer traffic from bargain-seeking shoppers, sending shares up in premarket trading. Dollar General, which prices most its merchandise for below $10, said profit in its fiscal third quarter ended Oct. 30 was $75.6 million, [...]
Tags: Dollar General, KKR
Posted on: November 17, 2009 by Dan Primack

Back in August, there was lots of talk about whether or not the public markets would accept a highly-leveraged IPO candidate like Avago Technologies. We then heard it again last week as Dollar General prepped its own offering.
Avago did better than Dollar General in terms of its actual IPO pricing, but both companies have traded higher in the aftermarket. So have other leveraged companies like Vitamin Shoppe, Talecris Biotherapeutics and STR Holdings. Overall, PE-backed companies with hefty leverage closed trading yesterday up 6.65% from where their IPOs priced. The only two exceptions this year are RailAmerica (which has tanked) and Emdeon (which is down just a fraction of a percent).
It’s certainly reasonable to argue that many of these companies would trade even higher were they to have lighter balance sheets, but not that high leverage leads to doomed public offerings. This was the topic of my weekly video segment with Reuters, which you can watch after the jump…
Tags: Avago Technologies, Dollar General
Posted on: November 12, 2009 by PEHub Administrator
NEW YORK (Reuters) – Discount retailer Dollar General Corp (DG.N) priced shares in its initial public offering at $21 each, at the low end of expectations, in the latest effort by a private equity firm to unload a portfolio company in a market that has become unreceptive to such deals. Dollar General, which is almost [...]
Tags: Dollar General, KKR
Posted on: November 7, 2009 by PEHub Administrator
NEW YORK (Reuters) – Dollar General (DG.N) is set to go public next week, but the discount retailer could see mixed results in its closely watched initial public offering as its private equity backers have valued the company richly. The $750 million offering of the retailer controlled by private equity firm Kohlberg Kravis Roberts & [...]
Tags: Dollar General, KKR
Posted on: October 31, 2009 by PEHub Administrator
NEW YORK (Reuters) – Kohlberg Kravis Roberts & Co’s discount retailer Dollar General Corp (DG.N) set the terms of its initial public offering on Friday, in a sign that the $750 million offering could price by mid-November. In an updated prospectus filed on Friday with U.S. Securities and Exchange Commission, Dollar General said it planned [...]
Tags: Dollar General, KKR