Slideshow: 10 Largest Pending Q2 LBOs

Buyouts recently wrapped its Q2 quarterly deal wrap-up, and the consensus, to put it bluntly, was ugly.

Though our data was cut off at June 15, the results showed U.S.-based PE firms had closed 38 percent less control-stake deals in Q2 than in Q1, according to Thomson Reuters. This suggests many firms have spent much of the first half of the year closing out deals they couldn’t get across the finish line in 2010 and replenishing their pipeline, all the while facing stiff competition from strategic buyers and other PE firms. Deal volume is still well below pre-financial crisis levels, too: U.S.-based sponsor deal activity for the first half of the year is down about 73 percent from the first half of 2005, according to our data. For details, see our upcoming issue, to be published July 4.

In the meantime, let’s take a look forward at the ten largest pending deals U.S.-based sponsors struck in Q2. Notable notes: The largest pending deal is smaller than the largest deal closed in Q2–CD&R’s $2.9 billion buyout of Emergency Medical Services Corp.–and far short of the KKR-led $5.3 billion buyout of Del Monte, the largest deal of Q1. Also, KKR has three deals pending in the top 10. Finally, seven of the ten largest targets are based outside of the U.S.


[slide title=”No. 10: HarvourVest Partners LLC Offers To Buy Absolute Private Equity AG”]

In April, HarbourVest offered to buy the Zurich-based funds of funds investment firm for $751.8 million.

[slide title=”No. 9: KKR Agrees To Buy German Telecom Co”]

In May, KKR agreed to buy Versatel AG, a Berlin-based telecom and IT services company, for $885 million.

[slide title=”No. 8: Blackstone Offers To Buy Spotless Group Ltd.“]

In May, Blackstone proposed to take the Aussie provider of cleaning, laundry and other services for around $887 million. The company’s board, however, rejected the offer.

[slide title=”No. 7: First Reserve Agrees To Buy METALLUM”]

In April, Energy specialist First Reserve agreed to buy this Swiss provider of raw materials recycler for $958.6 million.

[slide title=”No. 6: Cerberus To Buy 64 Hotels”]

Cerberus Capital Management in May teamed up with Chatham Lodging Trust to buy 64 hotels of Innkeepers USA Trust, a Palm Beach-based real estate investment trust, for $1.125 billion.

[slide title=”No. 5: Rhone To Carve Out Carbon Biz From German Power Plant Operator”]

Rhone Capital in April agreed to buy the carbon black business of Evonik Industries AG, a German owner/operator of power plants, for around $1.29 billion.

[slide title=”No. 4: Providence Agrees To Take SRA Private”]

In April, Providence agreed to take SRA International, a provider of computer programming and consulting services, private for $1.687 billion.

[slide title=”No. 3: KKR Offers To Offers To Buy Taiwanese Chip Maker”]

In April, KKR offered to buy Yageo Corp., a Taiwan-based maker of components used in computers, mobile phones, cars and other applications, for $1.69 billion.

[slide title=”No. 2: Berkshire, OMERS, Partner On Husky”]

In May, Berkshire Partners LLC and OMERS Private Equity Inc. agreed to buy Husky Injection Molding Systems Ltd., an Ontario-based manufacturer of injection molding equipment for the plastics industry, for $2.1 billion.

[slide title=”No. 1 KKR Agrees To Buy Capsugel”]

In April, KKR agreed to buy the manufacturer and wholesaler of drugs from Pfizer Inc. for $2.375 billion.