HCA, the hospital operator with a massive debt load, is expected to price its IPO tonight (they’re offering 124 million shares at $27 to $30 each) and begin trading tomorrow. The $4.06 billion deal is expected to be the largest private equity backed offering EVER.
In honor of this colossal event, peHUB.com has a slideshow of the top 10 largest U.S. PE-backed IPOs. The data is supplied by Thomson Reuters.
[slide title=”No. 10: Dex Media”]
Carlyle and Welsh Carson acquired Dex Media in 2002 from Qwest Communications for $7.1 billion. Dex went public in 2004, raising roughly $1.01 billion). R.H. Donnelley ended up buying Dex Media for $4.2 billion a year later.
[slide title=”No. 9: Talecris Biotherapeutics”]
Talecris, which makes protein therapies, filed for a $1 billion IPO in 2007 which never got off the ground. In September 2009, Talecris refiled for a $800 million IPO and the biotech did go public later that month, raising $1.06 billion. Cerberus and Ampersand, Talecris’s largest investors at the time, sold 15.8 million shares in the deal. Grifols last year offered to buy Talecris for about $4 billion but the deal has been delayed and is now expected to close in June. Cerberus and Ampersand own about 49%, according to SEC filings.
[slide title=”No. 8: Hyatt Hotels Corp”]
Hyatt Hotels Corp. successfully navigated one of the worst hospitality environments in November 2009 to go public, raising $1.09 billion. The hotel company was controlled by Chicago’s Pritzker Family.
[slide title=”No. 7: Och-Ziff Capital Management”]
Och-Ziff, the hedge fund and PE manager, went public in November 2007, raising $1.15 billion. Shares are since down nearly have from its $32 IPO price. On Wednesday, the stock was up by a dime to $16.20 a share.
[slide title=”No. 6: Hertz Global”]
In December 2005, a trio of PE firms —Clayton, Dubilier & Rice, Carlyle Group, and Merrill Lynch Global Private Equity– bought Hertz Corp. for $15 billion from Ford Motor. The PE firms reportedly invested only $2.3 billion equity. Seven months later Hertz filed to go public and the IPO was launched in November of 2006, raising $1.32 billion. The owners, at the time of the IPO, had already received a $1 billion dividend.
[slide title=”No. 5: Huntsman Corp.”]
Huntsman went public in February 2005, raising $1.59 billion. At the time, the chemicals company was owned by the Huntsman family and MatlinPatterson. With the IPO, the investors sold small stakes in the company (they owned 63.2% after the deal). The big win apparently came two years later when Leon Black’s Apollo Management agreed to buy Huntsman for $10.6 billion. But that unraveled when the buyers backed out of the deal.
In 2005, Onex Corp., the Canadian PE firm, acquired the aircraft component factory business of Boeing Corp. to form Spirit AeroSystems. Onex reportedly invested $375 million. In November 2006, Spirit AeroSystems went public, raising $1.65 billion.
[slide title=”No. 3: Nielsen Holding”]
Six PE firms, including the Blackstone Group, Hellman & Friedman, Carlyle, KKR and Thomas H. Lee Partners, acquired Nielsen Holdings for $9.7 billion in 2006. The TV ratings and consumer research company went public this past January, raising $1.89 billion. The PE firms did not sell shares in the IPO and owned a majority of Nielsen after the IPO, a January SEC filing says.
[slide title=”No. 2: Kinder Morgan”]
Goldman Sachs, Highstar Capital LP, Carlyle and Riverstone Holdings took Kinder Morgan private in 2007 via a $22 billion LBO. The pipeline company went public in February, raising $3.29 billion.
[slide title=”No. 1: HCA”]
Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity (now BAML Capital Partners), and affiliates of HCA founder Dr. Thomas Frist acquired HCA in November 2006 for about $33 billion. The buyers invested $5.3 billion equity in the deal. If HCA prices at the mid point, $28.50 a share, the IPO will weigh in at $4.06 billion. More importantly, Bain, KKR and BAML stand to triple their money (they’ve already scored $4.35 billion in dividends).