Oak Hill Capital Partners has agreed to make a $125 million preferred equity investment in Duane Reade Holdings Inc., a drug store chain that Oak Hill bought for $700 million in 2004.
Thoma Bravo has increased its buyout offer for Entrust (Nasdaq: ENTU), from $1.85 per share to $2 per share. The move increases the deal’s size from $114 million to $124 million, and Thoma Bravo would receive a $2 million termination fee if Entrust shareholders reject the offer. Entrust is a Dallas–based company that secures digital identities and information for consumers.
FRANKFURT (Reuters) – Struggling German chipmaker Infineon (IFXGn.DE), working to ease its financing needs, plans to raise 725 million euros ($1.0 billion) in a capital increase with the backing of U.S. investor Apollo. Infineon plans to launch a rights issue of up to 337 million shares with a subscription price of 2.15 euros, the company […]
LONDON (Reuters) – UK-based private equity group Silverfleet Capital has begun exclusive talks to buy German sausage casing maker Kalle Nalo from rival group Montagu Private Equity, the Financial Times newspaper reported on Friday in an unsourced story. Citing people “familiar with the situation” the paper said Silverfleet Capital, the former buy-out arm of Prudential, […]
DETROIT/NEW YORK (Reuters) – At least six potential suitors including TRW Automotive Holdings (TRW.N) have considered bidding for Delphi Corp, a day before a deadline for offers on the assets of the bankrupt auto parts maker, sources briefed on the matter said on Thursday. Auto parts maker Federal-Mogul Corp (FDML.O), hedge fund Elliott Management and […]
Now that the weather has finally warmed up, plenty of M&A bankers are hoping the market for deals will as well. We’ve noticed a few more targets coming to market in recent weeks and have compiled a list of some of those we’ve come across. Our sources are various news reports and the Buyouts “Seeking Buyers” list. The following companies (among many others) are either formally considering “strategic alternatives,” reported to be on the block or are rumored to be in sales talks. For prior lists, see below, and send any additions my way. Neo Material Technologies Inc., backed by Pala Investments AG, is believed to be an acquisition target, according to Dow Jones. Smith & Hawken, the luxury garden supply retailer owned by Scotts Miracle-Gro, will liquidate its assets. Noveko International Inc, a Canadian medical equipment maker, said it is considering all possible options for its Bolduc Leroux Inc unit.
The Treasury Department yesterday named nine managers for the PPIP, which is designed to help banks escape the toxic messes of their own making. It also said "over 100 unique applications... were received." It almost sounds like PPIP was so popular that Treasury had to beat off hopeful participants with a stick. To know for sure, though, it would be helpful to have a list of the rejected applicants. After all, what if most of them were crackpot lounge singers who don't know CDS from CPR? Unfortunately, Treasury is refusing to give out the list. A Department spokesman simply said "no," when I asked earlier this morning, without providing an official reason. We could speculate that Treasury doesn't want to cause reputational damage to the losers, but the government hasn't objected to identifying losing bidders for failed banks. So that couldn't/shouldn't be it.
Generation Growth Capital has helped sponsor a carveout of Quality Assembly & Logistics LLC from DeCrane Aerospace Inc. No financial terms were disclosed. Quality Assembly is a Peshtigo, Wisc.-based maker of assembler of electro-mechanical components for use in medical equipment and fire suppression devices.
Marlin Equity Partners has acquired Servigistics, an Atlanta-based provider of strategic service management software. No financial terms were disclosed. Servigistics had raised over $38 million in VC funding, from firms like Bain Capital Ventures, Symphony Technology Group and SSM Ventures. www.marlinequity.com
M&A may be ice cold in most sectors, but it's at least lukewarm in the world of middle market technology. Take for example, the recent heated auction for SumTotal Systems. There's also the go-shop struggle for Greenfield Online, and Symphony Technology Group's purchase of MSC Software. My eyes happen to be on Thoma Bravo's bid for Entrust, the fate of which will be decided by vote on Friday. Not because of Entrust's technology, per se, but because of the sale process' inherent conflicts of interest. The publicly-traded digital security business company received three bids during the go-shop period for its agreed-upon sale to Thoma Bravo. Notably, Thoma Bravo's already-sweetened bid for $1.85 per share is below a previously rejected $3 per share offer from an unnamed strategic. For unknown reasons, the board deemed those three go-shop bids inferior. Thomas Kirchner at Seeking Alpha suspects that that curious decision has everything to do with management. See, the deal was structured as what I've heard some analysts call a "BIMBO": Buy-In-Management Buyout.