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Top 10 posts: private equity

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peHUB First Read

Today’s peHUB First Read is a good one: explaining why NYC is tops for VC on the East Coast (hint: it takes a feminine touch), Leonard Green packing on the bucks, and why nobody wants to be a journalist.

New York City Pensions Commit $880 Million to Four Funds

The New York City Bureau of Asset Management, which manages $115 billion in assets from the city’s five municipal pension funds, committed an impressive $880 million to four private equity funds, according to recent investment reports and a spokesman at the city comptroller’s office.

The largest of the four commitments was $300 million to Leonard Green & Partners‘ Green Equity Investors VI LP, a private equity fund with a $5 billion target. The Los Angeles-based consumer retail specialist is known for making investments in such high profile companies as Neiman Marcus, J. Crew, Whole Foods, Rite-Aid, Sports Authority, Petco and BJ’s Wholesale.

The fund has been on a fundraising tear…


Smith Replaces Webb as CEO of Jo-Ann Stores

Jo-Ann Stores said Monday that Travis Smith was promoted to CEO effective immediately. Smith is replacing Darrell Webb, who became interim CEO of Sports Authority today after David Campisi resigned. Webb will retain his position as chairman of Jo-Ann’s board. Jo-Ann and Sports Authority are both owned by Leonard Green & Partners.

Do Go-Shops Produce Higher Offers? Well…

Many M&A deals include a go-shop but do such provisions actually work?

I put this question to John Pollack and David Rosewater, M&A partners with Schulte Roth & Zabel. Pollack and Rosewater recently conducted a review of 25 mergers this year involving private equity and public companies. The deals had a minimum of $500 million in enterprise value.

Pollack and Rosewater found that about half of the deals surveyed, or 14, included a “go-shop.” J. Crew’s $3 billion sale to TPG Capital and Leonard Green had a go-shop, as well as Jo-Ann Stores’ $1.6 billion sale to Leonard Green.

Leonard Green, CVC to Submit Bid for BJ’s Wholesale

(Reuters) – Private equity firm Leonard Green & Partners said it has teamed up with CVC Capital Partners to submit a proposal to buy BJ’s Wholesale Club Inc, the third-largest U.S. wholesale club retailer. Leonard Green and its affiliates, which also reported a 9.3 percent stake in the retailer in a regulatory filing, however, did […]

Leonard Green, CVC May Move on BJ’s Club

Buyout shops Leonard Green and CVC Capital Partners may make a move for wholesale retailer BJ’s Wholesale Club Inc., Reuters reported, citing the New York Post. The deal could be valued at roughly $2.8 billion, the Post reported, adding that rival suitors Apollo Global Management and Bain Capital had pulled out of the race.

Reuters: BJ’s, Leonard Green Enter Confidentiality Pact

CHICAGO, March 22 (Reuters) – Leonard Green & Partners is evaluating whether to buy BJ’s Wholesale Club Inc and has entered into a confidentiality agreement with the retailer, pushing its shares up 2.6 percent in early Tuesday trading. In February, BJ’s Wholesale said that its board had decided to explore a sale and other alternatives, […]

Shareholders Approve J. Crew Sale to TPG, Leonard Green

It’s official.

Shareholders of J. Crew Group have approved the roughly $3 billion sale of the company to TPG Capital and Leonard Green. Roughly 41.1 million holders of J. Crew common stock voted for the deal, while about 13.3 million holders voted against it, a statement said.

The PE firms are paying $43 a share cash for J. Crew, which sells preppy sweaters and pants through 250 retail stores and online. The sale is expected to be completed “on or around” March 7.

On Tuesday, shares of J. Crew rose by 44 cents to $43.56 in afternoon trading.


Oak Hill To Make Back 40% of Dave & Buster’s Investment in Nine Months–UPDATED

The dividend train just keeps on rolling.

Earlier this week, Dave & Buster’s announced it planned to sell some senior notes and use the $100 million in proceeds to pay a dividend to its sponsor Oak Hill Capital Partners. The payout comes less than a year after Oak Hill acquired Dave & Buster’s from Wellspring Capital Management. The deal was valued at $570 million.

At first glance, the $100 million may not seem very spectacular. In fact, it looks kind of puny. But consider this. Oak Hill put in about $300 million equity to acquire Dave & Buster’s last year, a PE source says. This means, they’ve already made back one-third of their investment. And Oak Hill has only owned the company for about nine months.

J. Crew Go-Shop Draws Suitors Sears, Urban Outfitters and PE

Go shops don’t usually produce a higher offer but don’t tell that to J. Crew.

Today, Sears Holding and Urban Outfitters are studying J. Crew’s books and are weighing making bids, Bloomberg News is reporting. Two PE firms are apparently also interested, the story says.

However, no one has apparently made an offer for the preppy retailer. It’s also not clear which buyout shops are interested in J. Crew.

Leonard Green Buys Into Fiesta Palms

Leonard Green & Partners has acquired a $125 million piece of Fiesta Palms’ $380 million revolving credit line, according to FT Debtwire. The deal is in anticipation of a restructuring at Fiesta Palms, the parent company of the Palms Resort & Casino.

Leonard Green Buying Prospect Medical

Leonard Green & Partners has agreed to acquire Prospect Medical Holdings Inc. (Nasdaq: PZZ), operator of five community-based hospitals in the greater Los Angeles area. The deal is valued at approximately $363 million, including the assumption of approximately $158 million in debt. Prospect stockholders will receive $8.50 per share.

Leonard Green Puts Leslie’s Poolmart On The Block

NEW YORK (Reuters) – Swimming-pool supplies company Leslie’s Poolmart Inc is being marketed for sale and a number of private equity firms are considering buying it, two sources familiar with the situation said on Tuesday. Los Angeles-based private equity firm Leonard Green & Partners is a majority owner of Leslie’s, according to a Moody’s Investors […]

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