Results of our weekly poll were relatively close. Last week, we asked you if President Obama would succeed in getting legislation signed to raise the carried interest tax this year. Increasing the tax up to 35% (from 15%) is one of several measures the White House is considering as it seeks to raise the debt ceiling. A majority, or 57%, said the President wouldn’t succeed in getting a bill signed. But nearly 43% believe the White House will get legislation signed. Currently, hedge fund and PE managers pay a 15% capital gains tax rate on performance fee income. What does this mean? Not all that much. President Obama talked about raising the carried interest tax last year and nothing happened. That might change this year. Debt talks resumed today at the White House. Republicans don’t want to raise taxes for anyone while Democrats believe some revenue raisers are essential.
Moelis Capital Partners, the PE arm of Moelis & Co., said Monday that it has acquired CyberCore Technologies. Financial terms weren't announced. Roark Capital was the seller. Elkridge, Md.-based CyberCore provides IT services to the federal government and intelligence community. FBR & Co. acted as financial advisor to MCP. SunTrust Robinson Humphrey, RBS Citizens and Bank of America provided senior debt financing and Hancock Capital Partners Investment Management provided the mezzanine financing.
Private equity firm Ratos’ portfolio company Arcus-Gruppen will buy a 51% stake in Norwegian wine wholesaler Excellars. The purchase price is roughly $11.7 million, the firm said Monday. Arcus-Gruppen is one of the largest wine suppliers in the Nordic region. The deal is expected to close in September.
Dunkin’ Brands Group Inc., the private equity owned parent of brands Dunkin' Donuts and Baskin Robbins, is planning to sell about 22.3 million shares in its initial public offering, at an expected range of $16-$18 per share. The IPO values the company at as much as $2.3 billion, Reuters reported. Dunkin’ was taken private in 2005 by private equity firms Bain Capital, Carlyle Group and Thomas H. Lee Partners in a $2.4 billion deal.
Local.com is paying up to $32 million for online daily deals company Screamin' Media Group, the company announced Monday. Local.com is paying $12.5 million in cash, stock and debt, with an additional $20 million in payments possible if certain milestones are met in the next two years. Formed early last year, Screaming Media’s site – screamingdailydeals.com – operates in about 14 markes, including Los Angeles.
Nestle has offered to buy 60% of Chinese candy maker Hsu Fu Chi International for about $1.7 billion, Reuters reported. Hsu Fu Chi is roughly 55% owned by the Hsu family and 15% held by Baring Private Equity. According to Reuters, the Hsu family would sell a 16.48% stake to Nestle. Nestle will also buy 43.52% from shareholders such as Baring Private Equity and asset manager Arisaig and together with the Hsu family will seek to delist the firm, Reuters said.
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Entrepreneur Guy Hands is planning a 4 billion pound ($6.4 billion) bid for Royal Bank of Scotland’s aircraft financing division: RBS Aviation Capital, Reuters reported, citing a story in the Sunday Times. The report said that Hands wanted to combine RBS Aviation with Awas, a plane-leasing firm owned by his fund Terra Firma.
Buyout shop Doughty Hanson is interested in buying Synovate, the market research unit of British marketing company Aegis, Reuters reported, citing a story in the Sunday Telegraph. Wyvern Partners is acting as financial advisor to the firm, Reuters said. Aegis had said last week that it was in talks with French group Ipsos about a sale. The Telegraph reported that Aegis was close to selling Synovate to Ipsos for about 520 million pounds ($835 million).
Luggage maker Samsonite upped its Hong Kong initial public offering by $46 million to nearly $1.3 billion, after underwriters exercised an option to sell additional shares, Reuters reported. Private equity backer CVC Capital Partners sold an additional 15.63 million shares, reducing its stake in Samsonite to 28.7 percent from 29.8 percent, Reuters said. Samsonite and its backers, including firm CVC, raised $1.25 billion with the offering last month.