PE Week Wire — Friday, May 28


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Ripplewood Holdings LLC and Activated Holdings LLC have acquired a majority position in Shaklee Corp. from Yamanouchi Pharmaceutical Co. Ltd. The deal is worth an estimated $310 million, with Ripplewood and Activated owning a combined 81% of Shaklee equity, while the remaining 19% will continue to be traded on the Jasdaq. Roger Barnett, managing partner of Activated Holdings, will relocate to San Francisco and become Shaklee’s new chairman and CEO. Shaklee is a provider of nutritional, personal care, air and water filtration and biodegradable household products. www.shaklee.com

 

Electronic Data Systems Corp. (NYSE: EDS) has completed its $2.05 billion cash sale of UGS PLM Solutions, a product lifecycle management subsidiary. The buyer is a private equity group that includes equal partners Bain Capital, Silver Lake Partners and Warburg Pincus. UGS has approximately 42,000 clients, 2003 revenue of $897 million and 2003 net income of $104 million. EDS originally announced plans to divest UGS – via either a sale or IPO – last October. www.ugsplm.com

 

WebSideStory Inc., a San Diego-based provider of on-demand Web analytics services, has re-filed to raise $57.5 million via an IPO of common stock on the Nasdaq under proposed ticker symbol WSSI. The company originally filed for a $57.5 million IPO in April 2000, but pulled the offering six months later due to poor market conditions. WebSideStory has raised over $40 million in VC funding since its 1996 inception, with significant shareholders including Summit Partners and TA Associates. www.websidestory.com

 

NuBridges LLC, an Atlanta-based provider of a digital information exchange, has raised $5.5 million in new VC funding. UPS Strategic Enterprise Fund and MCI participated on the deal. In related news, NuBridges acquired MCI’s EDI*Net business. No deal terms of the acquisition were disclosed.

TC3, a Costa Mesa, Calif.-based provider of one-stop solutions for medical claim payers and administrators, has raised $2.25 million in Series B funding from Ticonderoga Capital. The deal held a first close last September, and a final close this month.

 

Vorwerk & Co. KG has completed its acquisition of Luxembourg-based cosmetics company Jafra SA, which was 84% owned by buyout firm Clayton, Dubilier & Rice. No financial terms were disclosed on the deal. In conjunction with the acquisition closing, Jafra withdrew registration papers for a $100 million IPO. www.jafra.com

 

West Coast Capital has sponsored a management buyout of USC, a UK-based retailer of branded clothes and footwear. The deal provides an exit for company founders Angus Morrison and David Douglas, plus private equity firm Bridgepoint. Bank of Scotland provided debt for the deal, although no financial terms were disclosed.

 

North Castle Partners and Golden Gate Capital have completed their $650 million recapitalization of Leiner Health Products Inc., a Carson, Calif.-based maker of vitamins and other nutritional supplements. The deal included a joint equity commitment of approximately $265 million, with Leiner management also retaining a significant ownership stake. UBS Securities, Credit Suisse First Boston and Morgan Stanley provided a $240 million senior credit facility, and underwrote a $150 million high-yield debt offering. Prior to the deal, North Castle served as Leiner’s majority shareholder with an 80% ownership position. www.leiner.com

 

RF Micro Devices Inc. (Nasdaq: RFMD) has completed its $10.8 million acquisition of Silicon Wave Inc., a San Diego-based provider of Bluetooth solutions for wireless personal area networks. No deal terms were disclosed. Silicon Wave had raised over $130 million in total VC funding since its 1997 inception, including a $52 million fourth-round deal in mid-2000 at a post-money valuation of approximately $450 million. Company investors included 3Com Ventures, Ampersand Ventures, Comdisco Ventures, Intel Capital, J&W Seligman & Co., JPMorgan Partners, Mitsubishi Corp., Nexus Group, STAR Ventures, Sands Brothers & Co., Sevin Rosen Funds, Signal Lake Management and Velocity Capital Management. www.siliconwave.com

 

Gary Stevens will join Landmark Partners as a partner in the firm’s real estate investment management division, effective June 1. He has spent the past seven years with The Carlyle Group. www.landmarkpartners.com

 

Travis Milks has joined Stonehenge Capital LLC as a senior associate, and will be responsible for the underwriting and execution of equity and mezzanine investments. He most recently served as an associate in the I-banking group of Morgan Keegan & Co.

 

Stormy Byorum, CEO and managing partner of Cori Investment Advisors, has been named to the board of Northwest Natural Gas Co. (NYSE: NWN).

 

Alnylam Pharmaceuticals Inc., a Cambridge, Mass. drug company specializing in RNA interference, will begin trading on the Nasdaq under ticker symbol ALNY. The company priced five million shares at $6 per share (below its $10-$12 offering price range), for a total IPO take of $30 million. The company had raised over $50 million in VC funding, with significant shareholders including Polaris Venture Partners, Abingworth Management, Cardinal Partners, Atlas Venture and ARCH Venture Partners. www.alnylam.com

 

Standard Parking Corp., a Chicago-based provider of parking facilities in airports and urban locations, will begin trading on the Nasdaq under ticker symbol STAN. The company priced 4.5 million shares of common stock at $11.50 per share (below its $14-$16 offering range), for a total IPO take of $51.75 million. The company has not received significant investment from private equity firms. www.standardparking.com

Kindercare Learning Centers Inc., a Portland, Ore.-based provider of early childhood care and educational services, has set its proposed ticker symbol to KLC. The company filed last month to raise $625 million via an IPO of income deposit securities (IDS). Kindercare is majority-owned by Kohlberg Kravis Roberts & Co., and also lists Oaktree Capital Management (an affiliate of TCW Group) as a significant shareholder. www.kindercare.com

 

News From Thursday 5/27

 

Acadia Pharmaceuticals Inc., a San Diego-based drug company, will begin trading on the Nasdaq under ticker symbol ACAD. The company priced five million shares of common stock a $7 per share (below its original offering price range of $13-$15), for a total IPO take of $35 million. The company has raised over $75 million of VC funding since its 1993 inception, with significant shareholders including Oxford Bioscience Partners, OrbiMed Advisors, Federated Kaufman Fund, ABN AMRO Ventures and Hambrecht & Quist Capital Management. www.acadia-pharm.com

 

Critical Therapeutics Inc., a Cambridge, Mass.-based drug company developing therapeutics to regulate the inflammatory responses associates with asthma and other diseases, will begin trading on the Nasdaq under ticker symbol CRTX. The company priced six million shares of common stock at $7 per share (below its original offering price range of $11-$13), for a total IPO take of $42 million. The company had raised $76.46 million in total VC funding since its 2001 inception, with significant shareholders including MPM Capital, HealthCare Ventures, MedImmune Ventures, Johnson & Johnson Development Corp., Advanced Technology Ventures and Oxford Bioscience Partners. www.criticaltherapeutics.com

Bret Pearlman plans to leave his senior managing director post with The Blackstone Group, according to today’s Wall Street Journal. He will become a partner with Elevation Partners, a private equity firm created earlier this year by Roger McNamee, founder of Integral Capital Partners and Silver Lake Capital, and former Electronic Arts Inc. president John Riccitiello. The article also cites sources that say that Elevation Partners is seeking to raise upwards of $1 billion for its inaugural fund. www.blackstone.com

 

INEA Corp., a Toronto-based provider of financial services corporate performance management solutions, has raised $7.5 million in Series B funding. New investor EdgeStone Capital Partners was joined by return backers Apax Partners and RBC Technology Ventures on the deal. Additionally, Kevin Talbot of RBC will join the INEA board of directors. www.ineacorp.com

 

Golden Gate Technology Inc., a San Jose, Calif.-based provider of electronics design software, has raised $9 million in Series A funding from Lightspeed Venture Partners and Horizon Ventures. As part of the transaction, Carl Showalter of Lightspeed and John Hall of Horizon Ventures have joined the Golden Gate board of directors. www.ggtcorp.com

 

Cradle Technologies Inc., a Mountain View, Calif.-based fables semiconductor company, has raised $12 million in new VC funding. Investor Growth Capital led the deal with a $7 million investment, and was joined by return backers Charter Venture Capital, East Gate Capital Management, Prodea, NeoCarta Ventures and Smart Technology Ventures. The company now has raised over $70 million in VC funding since its 1998 inception. www.cradle.com

Psytechnics Ltd., an Ipswich, UK-based provider of voice and video quality measurement solutions for the telecom industry, has raised $11.6 million in third-round funding. New investors GIMV and NIF Ventures were joined by return backers 3i Group and New Venture Partners. The company has raised a total of $21.2 million in VC funding since its inception. www.psytechnics.com

 

Providence Equity Partners has agreed to sell Language Line Services Inc. to ABRY Partners for approximately $720 million, according to multiple press reporters. Language Lines is a Monterey, Calif.-based provider of over-the-phone language interpretation and document translation services. Providence structured a buyout of the company from AT&T in March 1999. www.languageline.com

 

MasterCard Advisors LLC, an affiliate of MasterCard International Inc., has acquired Watch Hill Partners, a Providence, R.I.–based provider of customer relationship management solutions. Watch Hill had received VC funding from Ascent Venture Partners. No deal terms were disclosed. www.whpi.com

 

Jan Barker, a principal with MedVenture Associates, has been appointed chairwoman of MedVenture portfolio company Sleep Solutions Inc. www.sleep-solutions.com

  

Shopping.com Inc., a New York-based provider of online shopping services, has set its IPO offering price to $14-$16 per share, and its number of offered shares to over 7.89 million. The company has raised over $75 million in VC funding from significant shareholders like Benchmark Capital, August Capital, Israel Seed Partners and Bain Capital.

 

Republic Airways Holdings Inc., an Indianapolis-based regional airline carrier, will begin trading on the Nasdaq under ticker symbol RJET. The company priced five million shares of common stock at $13 per share (middle of its original $12-$14 offering price range), for a total IPO take of $65 million. The company listed turnaround firm Wexford Management as a significant shareholder.

DisplayTech Inc., a Longmont, Colo.-based provider of micro-displays for digital still cameras and video camcorders, has filed to raise $57.5 million via an IPO of common stock on the Nasdaq under proposed ticker symbol LCOS. The company lists Fleming US Discovery Partners as a significant shareholder. www.displaytech.com

 

The Blackstone Group has closed its fifth real estate investment fund at $2.05 billion. The New York-based firm said it had targeted just $1.5 billion, which was the size of Blackstone Real Estate Partners III (closed in 1999), while Blackstone Real Estate Partners International raised €800 million in 2002. www.blackstone.com

 

News From Wednesday 5/26

 

News From Wednesday 5/26

 

Altus Pharmaceuticals Inc., a Cambridge, Mass.-based drug company focused on gastrointestinal and metabolic diseases, has raised $51 million in Series C funding. Warburg Pincus led the deal, and was joined by return backers U.S. Venture Partners, Nomura Phase4 Ventures, BankInvest, CMEA Ventures and Clariden Bank. The company (f.k.a. Altus Biologics) has secured over $100 million in total VC funding since its 1993 inception, including a $50.8 million Series B deal in late 2001 at a post-money valuation of approximately $76 million. www.altus.com

Terra Firma has agreed to acquire the UK landfill and related power operations of Shanks Group PLC for a total cash consideration of approximately $412.2 million. Lazard & Co. advised Shanks Group on the deal, while Citigroup Global Markets and Gleacher Shacklock advised Terra Firma. www.shanks.co.uk

CSFB Strategic Partners plans to raise its third secondaries market fund later this year, according to The Deal. The firm closed on its $1.9 billion second fund last year, which was exclusively dedicated to the buyouts and mezzanine market. The new effort, however, will be marketed in Q4 with a target capitalization of $1.85 billion, which includes $1.5 billion for buyouts and mezzanine holdings, $200 million for real estate and $150 million for venture capital.

 

Paisley Consulting, a Kokato, Minn.-based provider of business accountability software, has raised $10 million in Series A funding from Insight Venture Partners. This is the company’s first institutional round of funding since its 1995 inception. www.paisleyconsulting.com

Plexxikon Inc., a Berkley, Calif.-based drug company, has raised $15 million in new Series B funding, increasing the round total to $46 million (the original close was two years ago). New investors Yamanouchi Ventures Corp. and NIF Ventures joined return backers Advanced Technology Ventures, A.M. Pappas & Associates, Alta Partners, CW Ventures, GIMV and Walden International. www.plexxikon.com

E-Security Inc., a Vienna, Va.-based provider of security management software, has raised $5 million in third-round funding. Return backers included Fidelity Ventures, FTVentures, Advanced Technology Ventures, Updata Partners and Knickerbocker. www.esecurityinc.com

MessageOne Inc., an Austin, Texas-based provider of business continuity, crisis communication and disaster recovery solutions, has raised $11.25 million in Series C-1 funding. New investor QuestMark Partners led the deal, and was joined by return backers RRE Ventures, Impact Venture Partners and StarVest Partners. www.messageone.com

ManageStar Inc., a Walnut Creek, Calif.-based provider of service delivery management solutions, has raised $12 million in new VC funding. New investor Canaan Partners led the deal, and was joined by return backers Foundation Capital, Dominion Ventures and Charter Venture Capital. The company now has raised over $35 million in total VC funding since its 1999 inception. www.managestar.com

Swissray International Inc., an Elizabeth, N.J. -based provider of radiography technology, has raised $12.5 million in new VC funding. New investor 3i Group joined return backers Audax Group and Commonwealth Capital Ventures on the deal. www.swissray.com

Cellectricon AB, a Gothenburg, Sweden-based provider of cell-based technologies and tools for drug companies, has raised SEK 53 million (approx. $7.05 million) in Series B funding. Investors included InnovationsCapital, Investor Growth Capital and Karolinska Investment Fund.

KeyEye Communications Inc., a Sacramento, Calif.-based chip design company, has raised $15 million in second-round VC funding. Menlo Ventures led the deal, and was joined by return backers American River Ventures and Blueprint Ventures. www.keyeye.net

 

Alpine Equity Partners has sold thoroughbred horse racing publication Daily Racing Form to The Wicks Group of Companies LLC. No deal terms were disclosed. www.wicksgroup.com

The European Union Commission has approved The Carlyle Group‘s acquisition of Saprogal SA, a Spain-based provider of animal feed. Financial details of the deal have not been disclosed.

 

 

Edward Chapman has joined SM&A as senior vice president of client development. He most recently served as general manager of sales and marketing for Boeing Ventures, the VC arm of The Boeing Co. www.smawins.com

Javier Bañón has been named managing director and co-head of European merchant banking with Lehman Brothers. He most recently served as a managing director with DB Capital Partners, where he oversaw private equity investments in Latin America. www.lehman.com

Mark Burgess has been named global co-head of equities for Credit Suisse Asset Management. He previously has served in CIO positions for both American Express Asset Management International and Colonial First State Investments. www.csam.com

 

Alliance Laundry Holdings Inc., a Ripon, Wis.-based provider of commercial laundry equipment, has set its IPO price range to $14-$16 per income deposit security (IDS). The company was acquired in 1998 by Bain Capital and Bruckmann, Rosser, Sherrill & Co. — both of which are listed as significant shareholders on the IPO registration filing. www.comlaundry.com

 

Concurrent Pharmaceuticals Inc., a Fort Washington, Pa.-based drug company, has agreed to acquire certain rights to Allergan Inc.‘s (NYSE: AGN) pre-clinical programs and research portfolio in retinoid and rexinoid nuclear receptor compounds. As part of the transaction, Allergan will receive equity in Concurrent. www.concurrentpharma.com

 

    News from Tuesday 5/25

 

RAG Coal International AG has agreed to sell RAG American Coal Holding Inc. for approximately $1 billion, to an investment consortium consisting of First Reserve Corp., The Blackstone Group and American Metals & Coal International Inc. First Reserve and Blackstone will split voting rights on the new company, while AMCI will take a non-voting minority position. RAG American Coal is the fourth-largest coal producer in the U.S., based on tonnage, but was sold as part of RAG International’s disclosed efforts to both reduce debt and to sell off foreign mining operations. The transaction is expected to close during the third quarter. www.rag-coalinter.de/index.shtml

Evalve Inc., a Redwood City, Calif.-based provider of medical devices for the endovascular repair of cardiac valves, has raised $35 million in Series C funding. Guidant Corp. (NYSE: GDT) led the deal, and was joined by return backers New Enterprise Associates, Delphi Ventures, St. Paul Venture Capital, Three Arch Partners, Cutlass Capital and ABS Ventures. Guidant’s investment includes an immediate $15 million infusion, plus additional investments totaling $15 million based on Evalve achieving certain milestones. The company now has raised over $57 million in total VC funding since its 1997 inception, including a $15.9 million Series B deal in 2001 at a post-money valuation of approximately $36 million. www.evalveinc.com

The Carlyle Group has agreed to sell Charlotte, N.C.-based container shipping company Horizon Lines LLC to Castle Harlan for approximately $650 million. Carlyle first acquired Horizon Lines (f.k.a. CSX Lines) from CSX Corp. in a February 2003 recap valued at $300 million ($240 million in cash, $60 million in securities). Goldman, Sachs & Co. and Latham & Watkins LLP advised Carlyle on the transaction. www.horizon-lines.com

 

GI Dynamics Inc., a Newton, Mass.-based medical device company focused on obesity, has raised $12 million in Series B funding. Cutlass Capital led the deal, and was joined by return backers Advanced Technology Ventures, Angel Healthcare Investors, Catalyst Health & Technology Partners, Domain Associates, Polaris Venture Partners and Seedling Enterprises. As part of the transaction, Jonathan Osgood of Cutlass Capital will join the GI Dynamics board of directors. www.gidynamics.com

Tealeaf Technology Inc., a San Francisco-based provider of analytics software, has raised $8 million in Series D funding. New investor SAP (NYSE: SAP) joined return backers Matrix Partners, Bay Partners and Foundation Capital. www.tealeaf.com

Epiance Corp., a Herndon, Va.-based provider of business process improvement software, has raised $7.5 million in Series B funding. Norwest Venture Partners led the deal, and was joined by Outlook Ventures. The company also announced that it will move its headquarters to Milipitas, Calif. early next month. www.epiance.com

GroundWork Open Source Solutions Inc., an Oakland-based provider of open source IT management solutions, has received $3 million in Series A funding from Canaan Partners. www.itgroundwork.com

Plextronics Inc., a Pittsburgh-based company that commercializes inherently conductive polymers, has raised $3.4 million in new VC funding. Smithfield Trust Co. led the deal, and was joined by Innovation Works, the Pennsylvania Department of Community and Economic Development (DCED) and new and returning angel investors. The company has raised $4.6 million in total VC funding since its July 2002 inception. www.plextronics.com 

KRG Capital Partners has sold portfolio company Scivex Inc. to IDEX Corp. (NYSE: IEX). No deal terms were disclosed. Scivex is an Oak Harbor, Wash.-based provider of fluidic solutions for the life sciences market. www.scivex.com

The Blackstone Group is in advanced talks to acquire New Skies Satellites NV (NYSE: NSK) for approximately $800 million, according to Reuters. The news comes just one day after fellow satellite company Intelsat Ltd. pulled its IPO registration papers, and said that it would instead explore strategic alternatives.

Financial News is reporting that One Equity Partners is considering a sale of portfolio company Moneyline Telerate to Reuters PLC.

Kohlberg Kravis Roberts & Co. has dropped out of the bidding for troubled publishing house Hollinger International, according to various press reports.

 

Dave & Buster’s Inc. (NYSE: DAB) has agreed to acquire — out of bankruptcy — the operating assets of the majority of Jillian’s Holdings Inc.‘s largest restaurant and entertainment complexes. The deal is valued a approximately $27 million in cash, with Dave & Buster’s making up to another $8 million available for capital improvements at the Jillian’s locations. Jillian’s is a Louisville, Ky.-based portfolio company of J.W. Childs Associates.

VeriSign Inc. (Nasdaq: VRSN) has agreed to acquire Jamba! AG for approximately $273 million in cash and VeriSign stock. Jamba is a Berlin, Germany-based provider of wireless content services in Europe, and had received private equity backing from Summit Partners. www.jamba.de

David L. Babson & Co., a member company of MassMutual Financial Group, has completed its previously announced acquisition of Duke Street Capital Debt Management Ltd., a UK-based subsidiary of Duke Street Capital. No deal terms were disclosed. www.dukestreetcapital.com

 

Nicholas Hofgren has joined The Brunswick Group as a managing director. He most recently served as a senior advisor at a privately-held commodities trading business n the Caspian region, and before that was a director for Europe, the Middle East and Africa with J.P. Morgan Chase Private Funds Group.

Eugene McQuade, president of Bank of America (NYSE: BAC) unexpectedly announced his resignation, effective June 30.

 

PowerDsine Inc., an Israel-based provider of software-controlled power solutions for communications networks, has filed to raise $82.8 million via an IPO on the Nasdaq under proposed ticker symbol PDSN. The company has raised over $60 million in total VC funding since its 1994 inception, from significant shareholders like General Atlantic Partners, ABS Ventures, Jerusalem Venture Partners, The Challenge Fund and Vertex Venture Capital. www.powerdsine.com

 

Digirad Corp., a San Diego-based provider of solid-state medical imaging products and services, has set its IPO offering price range to $12 to $14 per share, and set its number of offered shares to 5.5 million. The company has raised approximately $75 million in total VC funding since its 1997 inception, with significant shareholders including Sanderling Ventures, Vector Fund Management, Merrill Lynch Ventures, Kingsbury Capital and Sorrento Associates. www.digirad.com

 

    News from Monday 5/24

The Carlyle Group has agreed to acquire Verizon Hawaii from Verizon Communications (NYSE: VZ) for $1.65 billion. The deal includes Verizon’s Hawaii-based local telephone operations, plus its print directory, long distance and Internet service provider assets, which reported combined 2003 sales of $610 million. Verizon was advised on the transaction by The Blackstone Group. www.verizon.com

Lucent Technologies (NYSE: LU) has agreed to acquire Telica Inc., a Malborough Mass.-based provider of voice-over-Internet protocol (VoIP) communications systems. The transaction includes $295 million in stock and options (92.7