KEMET Corp., a Greenville, S.C.-based maker of electronic components like capacitors, has obtained at $52.5 million credit facility from an affiliate of Platinum Equity. The deal is designed to help KEMET fund a tender offer for a buyback of $175 million of outstanding convertible senior notes.
As the weather (slowly) warms 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, many others) are either formally considering "strategic alternatives," reported to be on the block, or rumored to be in sale talks. I can't be comprehensive, but I can try. Here is last week's list; send any additions my way. Madison Square Garden: The arena's parent company, Cablevision, may spin off the unit as a result of shareholder pressure. Read more... Exxon: The company may sell 800 Australian fuel outlets as part of a strategy shift away from fuel retailing, according to reports. Patriot Capital: The BDC is exploring strategic alternatives because one of its credit facilities was terminated after its collateral declined in value.
TOKYO (Reuters) – Shinsei Bank (8303.T) and Aozora Bank (8304.T) could announce their plan to merge as early as Wednesday, sources said, a deal that would bring together two money-losing lenders and create Japan’s sixth-largest bank. The banks, which have already been discussing the merger, will begin to survey each other’s assets and work out […]
(Reuters) – Executives at Citigroup Inc’s (C.N) Primerica Financial Services unit are looking to sell the division’s marketing arm, Bloomberg said, citing four people familiar with the matter. Private-equity firms including J.C. Flowers & Co, Blackstone Group (BX.N), and TPG Inc have been approached by the executives to gauge their interest in the division, the […]
TORONTO (Reuters) – Sumner Redstone’s National Amusements has received a first round of bids for its U.S. and U.K. theater chains, with bidders offering enough to help the company pay off its debt obligations due in 2009, sources familiar with the matter said. At least 10 parties have bid in each auction, the sources said, […]
Any private equity investor facing cash constraints would have read this story from Reuters in complete horror. The article, from this morning, proudly declares that private equity is getting ready for its comeback. The so-called "haves" of the buyout world--the funds that raised money before raising money became impossible--are gearing up to put all that sidelined capital to work.
"There are plenty of private equity firms with significant funds available to invest and a growing impatience to invest them," said Michael Berry, head of debt advisory firm Versatus.
Once those firms start putting money to work, as we're already starting to see with deals like KKR's buyout of Oriental Brewery and CVC Capital's deal for iShares, industry pros expect there to be a period where investors shell out millions of dollars to fund capital calls but receive no distributions from exits.
Fifty-six percent of mid-market private equity investors, bankers and lawyers expect deal-making to improve in the second half of 2009, according to survey results being released tomorrow by the Association for Corporate Growth (ACG) and Thomson Reuters (publisher of peHUB). Thirty-four percent of respondants said that they expect deal-making to remain at current levels, while the remaning 10% said that things would get even slower. Thirty-three percent of respondants blamed the "credit crunch" for current deal woes, although that was down from 43% last December. Rising from 22% to 27% was seller expecations, while "weak economy" edged up from 16% to 17 percent. Overall, 88% of respondants said that the current M&A environment is fair or poor, which was the most negative view expressed in the bi-annual survey's five-year history. Get full results after the jump...
NEW YORK (Reuters) – Sony Music Entertainment (6758.T) is suing smaller rival EMI Music and one of its executives after he allegedly broke his promise to join Sony on a new $3 million contract. The suit alleges that Ron Werre used his deal with Sony as leverage in negotiating a promotion at EMI. Sony charged […]
TORONTO (Reuters) – DHS Systems, a manufacturer of high-tech shelter systems serving the military, is up for sale in an auction that drew final bids ranging from $200 million to $400 million on Friday, sources familiar with the matter said. Only two bidders made it to the final round for DHS Systems, which is owned […]
NEW YORK (Reuters) – Direct Edge, an electronic stock trading platform, may go public as soon as 12 to 18 months from now, and expects to boost revenue and cut costs once U.S. regulators award it exchange status, Chief Executive William O’Brien said on Monday. Speaking at the Reuters Exchanges and Trading Summit, O’Brien said […]