PE HUB Wire Highlights, 11.19.18

Zayo Group gets interest from group including Blackstone, Stonepeak; Salveo Capital invests in Harborside; Can GE shed enough assets to survive?

Morning, Hubsters. How is everyone? My goal this Thanksgiving week is to not end up the night before Turkey Day in the supermarket, standing in line for hours for that tiny container of allspice that I forgot. Not this year.

The most interesting news this morning is about 
GE. The industrial conglomerate is struggling under its massive $115 billion debt load, the Financial Times is reporting. CEO Larry Culp has vowed to bring that under control and has put the “For Sale” sign on parts of GE. The conglomerate sold part of its stake in Baker Hughes, which raised about $4 billion. On Friday, TIAA Bank acquired a $1.5 billion portfolio of healthcare equipment leases and loans from GE Capital’s healthcare equipment finance business.

Private equity is now circling GE, several news reports said. This includes 
Blackstone,Apollo and Brookfield Asset Management. The Financial Times estimates that GE can sell off $40 billion in asset. This may include its remaining stake in Baker Hughes, which has a market value of about $13 billion. Or its aviation leasing business GECAS. GE could also offload just under 50 percent of its healthcare and life sciences division, which sold separately, may bring in about $4 billion, the story said.

So, I ask you, Hubsters, what else can GE do to deal with its huge debt? What will be left and can it survive? Should it survive? What are the most interesting parts of GE for private equity? Email me your thoughts at 
lbeltran@buyoutsinsider.com

It’s merger Monday. The big deal this morning is 
Zayo Group, which operates an almost 130,000 mile fiber network across North America and Europe, has attracted take-private interest from a group including Blackstone and Stonepeak PartnersCheck out our brief here.

Salveo Capital has invested in Harborside, which sells concentrates, edibles and other cannabis products. See my brief here.

We also have an article from Salveo’s 
Jeff Howard and Michael Gruber on marijuana’s green valleys. Read the story here.

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