Madison Dearborn to Buy Schrader Unit from Tomkins for $505 Mln

Tomkins, which is backed by Onex Corp. and Canada Pension Plan Investment Board, has agreed to sell its Schrader division to Madison Dearborn Partners. The sale price is $505 million cash, plus a small minority equity interest in the parent of the purchasing company. The deal is expected to close in the second quarter. Schrader […]

DuPont Unit Deal Could Fetch $4B

Some big name PE firms are lining up for chemical maker Dupont’s car paints business auction–but will is financing too tight to keep any single LBO shop from making a $4 billion deal?

Small Conn. Shop Generates Large Return

Hamilton Robinson Capital Partners LLC generated a healthy return in its sale of Davis-Standard, a company that makes machines that make plastic packaging, to ONCAP, a company owned by the publicly traded Canadian investment firm Onex Corp., sister magazine Buyouts reported earlier today. The Stamford, Conn.-based buyout firm sold the company to ONCAP for $189 […]

Onex, Caisse Team Up For AXA PE While Carlyle Walks Away

Just a short update on the auction of AXA PE.

Onex Corp. is teaming up with Caisse de Depot et Placement du Quebec, the Canadian pension plan, to make a bid for AXA PE, two sources say. KKR is still interested while several sources confirm that BlackRock has dropped out.

peHUB, earlier this month, reported that BlackRock was no longer involved in the auction.

Pricing for AXA PE is aggressive and has caused some “natural players” to bow out, one banker says. The Carlyle Group, which agreed to buy a 60% stake in AlpInvest Partners earlier this year, was expected to vie for AXA PE.

ONCAP Wraps $800M Fund

Onex Corp’s ONCAP raised a third fund, the TSX-listed investment firm, closed its third fund with $800 million Canadian committed. The fund will consist of $520 million in outside capital and $280 million that is being contributed from Onex. In June, ONCAP III completed its first transaction with the acquisition of Hopkins Manufacturing Corporation.

Onex Boosts JELD-WEN Investment to $864 Mln

Onex Corp. said Monday that it will invest $864 million into JELD-WEN. This is up from the previously announced $675 million it had planned to invest in the Oregon-based door maker. The investment from Onex will be made in two tranches and include $675 million in convertible preferred stock as well as $189 million in a convertible note. Onex’s share of the investment will be about $295 million. The deal was originally announced in May.

Sterling Group To Buy Stackpole for $285 Mln

Tomkins, the UK manufacturing firm, is selling Stackpole International after eight years.

The Sterling Group, a Houston PE firm, is the buyer.

Tomkins acquired Stackpole in 2003 for C$331 million (now valued at US$349 million), according to reports. Toronto-based Stackpole makes automotive powertrain systems and components.

Now here’s where things get confusing. Last year, Onex Corp. and the Canada Pension Plan Investment Board bought Tompkins for US$4.5 billion. Onex and the CPP Investment Board formed Pinafore to buy Tomkins.

Friend Skoler Sells Hopkins Manufacturing to ONCAP

ONCAP Management Partners, the middle market PE platform of Onex Corp., has acquired Hopkins Manufacturing Corp. Financial terms weren’t announced. The seller was Friend Skoler & Co., a PE firm based in Saddle Brook, N.J. Hopkins Manufacturing makes branded automotive aftermarket products. Bram Hall, Will Cooper, Matt Salisbury and Ches Riley of BlackArch Partners advised on the sale of the company.

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A Reborn HCI Equity Puts Pay-To-Play Past To Rest

Long before the pay-to-play scandals in present-day New York and New Mexico came a whopper of one more than a decade ago in the state of Connecticut.

Today a firm that took a glancing blow from that scandal is emerging with a new name, HCI Equity Partners; a fresh $200 million fund; and a strategy of buying and selling small but growing industrial products and services companies generating $20 million to $200 million in annual revenue.

The firm has also scored some recent exits. HCI Equity was expecting today to close the sale of its stake in Mistras Group Inc., whose products are used to test the integrity of tanks, pipes, valves and other industrial products. In March the firm sold its stake in Progressive Waste Solutions, which provides waste disposal services to both commercial and residential customers. Both companies are traded on the New York Stock Exchange.

A quick history lesson to demonstrate the challenges the firm overcame: In 1999 the disgraced ex-treasurer of Connecticut, Paul Silvester, pleaded guilty to racketeering charges for accepting payments—or directing payments to others—in return for making state pension-fund commitments to several investment firms. (Sound familiar?)

Onex Corp. To Invest $675M In US-based Door Maker – Reuters

Onex Corp. plans to invest $675 million in JELD-WEN Holdings Inc., Reuters reported. It intends to pay $475 million to acquire a 39 percent stake in the Oregon-based door maker.Onex Corp. of Canada plans to invest $200 million through a convertible note that can be redeemed within 18 months.

TMS Sells Fewer Shares Than Expected

TMS International Corp., which is majority owned by buyout shop Onex Corp., sold fewer shares than expected at a price below the proposed range in its IPO, Reuters reported. The company sold 11.2 million shares for $13 each, raising $145.6 million in the offering, Reuters reported. TMS and a group of its stakeholders had planned to sell 6.25 million shares each for $15 to $17 each.

PE-Backed IPO Pipeline: More On The Way

The great start of the current year should bode well for other firms looking to the IPO market to exit some investments. At least eight portfolio companies have registered or are expected to file their plans to go public with the Securities and Exchange Commission so far this year.

None have the scale of either HCA Holdings Inc. or Kinder Morgan, but two are expected to submit plans seeking to raise around $1 billion each. One of these is Allison Transmission Inc., which is backed by Carlyle Group and Onex Corp. Indianapolis-based Allison Transmission is looking to go public in the third quarter. The maker of automatic transmissions for school buses and other vehicles hired Bank of America Merrill Lynch, Citi, Credit Suisse, Morgan Stanley and JPMorgan & Co. to serve as underwriters.

The other portfolio that could seek $1 billion through an IPO is DLJ South American Partners LP’s Arcos Dorados SA, which owns and operates McDonald’s fast food chain restaurants in Argentina.

The following chart lists some of the portfolio companies considering an IPO:

HCA Doesn’t Look So Bad. Here’s The Top 10 PE-backed IPOs

HCA, the hospital operator with a massive debt load, is expected to price its IPO tonight (they’re offering 124 million shares at $27 to $30 each) and begin trading tomorrow. The $4.06 billion deal is expected to be the largest private equity backed offering EVER.

In honor of this colossal event, peHUB.com has a slideshow of the top 10 largest U.S. PE-backed IPOs. The data is supplied by Thomson Reuters.

Onex In Talks to Sell Husky Injection Molding Systems

Canadian private equity firm Onex Corp. is in talks with other buyout shops to sell portfolio company Husky Injection Molding Systems for as much as $2 billion, Reuters reported. Apollo Global Management and the Carlyle Group are among the firms expressing interest in Husky, Reuters said.

Onex Portfolio Company Buys Quantum Medical

Carestream Health, an Onex Partners’s portfolio company, confirmed Tuesday that it has bought Quantum Medical Imaging.

Financial terms of the deal, which closed Friday, were not announced. The seller was Riverside Partners.

News of the Quantum Medical sale was reported by peHUB last week. The transaction did not result from an auction process. Carestream and Quantum have known each other for years, a source says.

Rescare Agrees To $390 Million Onex Takeover

(Reuters) — ResCare Inc said it agreed to be acquired by Canadian private equity firm Onex Corp in a cash deal that values the U.S. provider of home care to the elderly and disabled at $390 million, after Onex sweetened its initial bid by 65 cents a share.

The $13.25 a share deal price represents a premium of 6 percent to ResCare’s Friday close and a 30 percent premium to its closing on Aug. 13, the last trading day before Onex first offered to buy the company.

The deal permits ResCare, which also offers education, vocational training and job placement opportunities for all age groups, to solicit superior proposals from third parties during a 40-day “go shop” period ending Oct. 16.

M&A Disrupts Summers for PE Execs and Bankers

It’s the Friday before the Labor Day weekend and I’m amazed at how many PE execs are answering their phones.

One buyout exec, who hasn’t answered my calls or messages for nearly a month, finally phoned. The exec said they were busy working on a deal that they hoped to finish by Labor Day. Another PE source called today to talk about a transaction that was finally closing (an exit!).

Bankers weren’t much different. One source said they took a vacation last week (to Jamaica) and was working this week. And another, who is also laboring on a deal, planned to stay in town and deal with Earl (which at this point has turned out to be a whole lot of nothing). “I’m weathering the hurricane here in New York,” the banker said.

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