KKR, Carlyle expect strong returns on Bountiful’s sale, Apollo forks out $5bn for Verizon Media, OEP carves out equipment and fleet services business

KKR and Carlyle are poised for strong returns on Bountiful and Apollo swallows Yahoo and AOL.

Happy Tuesday!

Long-hold payoffs: After helping transform Bountiful into a brand-oriented business, Carlyle Group is poised to walk away with 2.5x its money following over a decade long hold in the vitamin-maker, PE Hub has learned.

Majority investor KKR, which will retain an interest in the business, is set to make north of 3x its investment, a source said. KKR acquired a nearly two-third stake in the business from Carlyle in 2017.

The $5.75 billion sale to Nestlé concludes a dual-track process involving dialogue with strategic buyers as Bountiful simultaneously prepared to go public. Although the firms started down the IPO path last year, “as those discussions started becoming more detailed, Nestlé approached them in April,” said the source. KKR and Carlyle did not engage with PE buyers, the source said.

For Carlyle, Bountiful was not intended to be such a long-hold, having bought the company then known as NBTY through a $3.8 billion take-private transaction in 2010. But patience ultimately paid off, with Bountiful evolving into the largest pure-play nutrition company in North America, producing a strong outcome for both Carlyle and KKR.

Check out the full report for more behind the deal details.

Apollo’s media bet: Following speculations, Apollo Global Management announced the acquisition of Verizon Media for $5 billion. The deal includes host of brands like online news sites Yahoo, AOL, Tech Crunch and others, marking a big bet on the digital media industry.
Apollo will own a 90 percent stake in the busines while Verizon will retain a 10 percent interest in Yahoo, which continues to be led by CEO Guru Gowrappan.

“What made Apollo’s offer so appealing, is that it includes leveraging the entire Verizon Media ecosystem of adtech, affiliate relationships, data, insights, targeting and reach,” Hans Vestberg, Chairman and CEO of Verizon mentioned in a note to employees.
The deal structure includes $4.25 billion in cash, along with preferred interests of $750 million.

Goldman Sachs served as lead financial advisor to Verizon on the transaction while Evercore also served as financial advisor to Verizon.

Apollo’s Verizon bet was unveiled just ahead of its Q1 report this morning, which reported a $678.9 million profit as its private equity portfolio appreciated by 22 percent.

The firm outpaced rivals like Blackstone Group, which reported a 15.3 percent climb in the latest period.

Read PE Hub’s brief on the deal.

Industrial carve-out stream: One Equity Partners announced the acquisition of the North American operations of AMECO, buying the equipment and fleet services business for $73 million. The unit will be carved-out from NYSE listed Fluor Corporation, which provides scaffolding tools and a complete construction site solution.

Flour first announced plans to divest AMECO in 2019, selling off individual pieces of the business since that time. It most recently shed AMECO’s Caribbean business through a sale to Stewart’s Automotive Group in Jamaica.

OEP has expertise in corporate carve-outs of industrial companies. It acquired ORS Medco, a wholesaler of maintenance and repair focused industrial aftermarket products, from Essendant in October 2019; and Walterscheid Powertrain Group, an aftermarket parts provider for powertrain applications, from GKN in June 2019.

That’s it for me! As always, feel free to hit me up with comments, questions, tips or your feedback at karishma.v@peimedia.com