News and Analysis

The Jordan Company, through its Resolute Fund II, L.P., said Monday that it would buy Pro Mach Inc. from Odyssey Investment Partners. Financial terms of the deal were not released. Pro Mach provides packaging machinery products and services to multinational clients in the food, beverage, household goods and pharmaceutical industries. Barclays Capital is arranging debt financing for the transaction, and Mayer Brown is legal advisor to The Jordan Company. Barclays Capital is acting as financial advisor to Pro Mach and Latham & Watkins is acting as legal advisor.
(Reuters) – Private equity funds are shrinking as investors become choosier and funds that have fallen behind in performance could drop off the radar when they return to the market, executives and investors said at a major conference this week. Data from London-based private equity research firm Preqin in April showed that $46.1 billion was […]
Roark Capital is paying about $130 million in cash to buy roast beef sandwich chain Arby's Restaurant Group Inc., Reuters reported. Current owners Wendy's/Arby's Group Inc. will retain 18.5% ownership of Arby's valued at about $30 million, the company said in a statement. Atlanta-based buyout shop Roark will assume about $190 million in Arby’s debt.
Auto and mortgage lender Ally Financial, which is majority-owned by the U.S. government, has delayed its $6 billion initial public offering due to bad market conditions, Reuters reported. In addition to the Treasury, buyout shop Cerberus Capital Management owns a 9% stake. Citi, Goldman Sachs, JPMorgan, Morgan Stanley, Barclays Capital and Deutsche Bank Securities are the underwriters for the offering.
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Permira has bought a 61% stake in drip irrigation company Netafim Ltd., Reuters reported. The firm bought the stake from Kibbutz Yiftah, Kibbutz Magal, Tene Investments and Markstone Capital. The deal valued Netafim at $900 million, Reuters said, citing a report in the Globes news website.
The Carlyle Group is closing in on a 25% stake in Indonesian consumer firm GarudaFood, Reuters said. The $200 million stake will mark the firms first direct investment in Indonesia. GarudaFood sells instant food, peanuts and other snacks globally. The proposed deal values the company at about $800 million, Reuters said.
Lately, new investors have been popping up from coast to coast in professional sports teams deals. As entrepreneurs’ companies and PE and VC portfolios rebound, some of the boldface names in charge of them are loosening purse strings to make the mega-ego purchases of professional ballclubs. That means that, possibly, PE pros Josh Harris and Steve Pagliuca could find themselves in a dispute not over how the carry is split in a club deal, but over who carried the ball the previous night in the Celts-76ers game. Although these investors are savvy when it comes to LBOs, IPOs and dividend recaps, things haven’t always panned out the way they’ve wanted on the diamond/gridiron/hardwood/ice....
Internet companies are pushing smaller portions of their equity onto public markets at a volatile time and still seeing stock values increase almost instantaneously. For now, the practice is helping tack bigger price tags onto VCs’ assets, but if and when a major market disruption occurs, these newly-listed darlings may later see secondary offering attempts flounder. Low-float IPOs are all the rage right now....
The results of this week's poll were surprising (to me). Yesterday, I asked you whether PE execs are overpaid. This was in response to reports that PE firms are raiding investment banks for relatively inexperienced analysts. I also mentioned the Blackstone Group, where named executives get a $350,000 base annual salary plus a possible chunk of the carry.
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