(Reuters) – Private equity firms, facing shrinking asset values and tough financing conditions, are trimming staff in mature markets, but are also looking to hire in growth areas so that they deliver the returns investors seek. Shrinking fund sizes, crisis in the euro zone and hopes for emerging markets growth are all redrawing the global […]
David Blechman has joined H.I.G. Capital as an MD in the LBO practice. Previously, he was an MD at Tower Three Partners and a Sun Capital Partners principal.
Many bubble-era LBOs have turned in poor performances, according to a report from Moody's Investors Service. Moody's looked at 40 LBOs from 2006 to early 2008, the go-go days for buyouts. While a majority of the companies have seen their financial leverage drop, earnings and revenue growth for most have been "significantly below" projections, Moody's said. Exits for the bubble group have also been rare. In fact, most are still owned by their PE owners, the report said. Seven have completed IPOs and only one target has been sold (that's Alltel. Verizon Wireless acquired Alltel in 2009; it had been owned by TPG and Goldman Sachs PE unit). Only five of the companies have paid “material dividends," while three companies--Chrysler, Aleris International and Station Casinos-- have filed for bankruptcy, Moody's said.
(Reuters) – U.S. banks will begin more aggressively buying one another in the coming year, Fifth Third Bancorp Chief Executive Kevin Kabat said at an industry conference on Wednesday. Kabat, speaking at the Goldman Sachs Financial Services Conference in New York, said smaller banks weakened by the 2008 global financial crisis and recession will be […]
Imagine trying to start a meeting with an executive of a company you might invest in. Then you hear the executive say, in effect, not so fast, he’s waiting for your male partner to arrive. That’s exactly what happened to Lauren Leichtman, co-founder and CEO of Levine Leichtman Capital Partners, the Beverly Hills, Calif.-based private […]
VeriClaim, a subsidiary of private equity-backed T&H Global Holdings, has acquired Cramer Johnson Wiggins & Associates Inc., a provider of administration services to the property and casualty insurance market. Terms of the deal were not released. T&H is majority owned by private equity investor Flexpoint Ford.
The Jordan Co. has completed its acquisition of Heritage Food Service Equipment Inc., a distributor of replacement parts for commercial kitchen equipment manufacturers. Terms of the deal were not released. Heritage is based in Fort Wayne, Indiana.
HealthpointCapital has acquired Blue Belt Technologies Inc., a maker of surgical instruments. Terms of the transaction were not disclosed. As part of the deal, HealthpointCapital also announced that Eric Timko joined the company as president and chief executive.
Struggling women’s clothing retailer Talbots Inc. has received an unsolicited letter from private equity firm Sycamore Partners, proposing a $212 million buyout of the company. The $3-a-share cash offer values the retailer at a 92% premium to the stock's Tuesday close of $1.56. As PEHub.com reported previously, Sycamore in August grabbed a 9.9% stake in Talbots, becoming the second biggest shareholders in Talbots, after OppenheimerFunds, which at the time held a 13.27% stake, according to Reuters. Talbots' stock has dropped 82 percent this year, Reuters reported Wednesday. Talbots in a written statement Tuesday said it was evaluating the buyout proposal.
U.S. private equity firm Lone Star is the preferred bidder for Lloyds Banking Group's 1 billion pounds ($1.6 billion) Project Royal portfolio of UK commercial property debt, Reuters wrote Wednesday. Lone Star's bid was backed by about 300 million pounds of senior debt from Royal Bank of Canada and Citigroup, Reuters reported.