Carlyle's failure to sell Arinc means that inflated multiples in the defense sector won't float right now. Carlyle, the politically connected PE firm, has pulled the plug on its sale of Arinc after six months on the block. Carlyle wanted more than $1 billion for Arinc but got bids that were lower. Arinc designs systems that help airline pilots communicate with the ground. Carlyle is now going to pursue an IPO of Arinc that may launch next year, according to our compadres at Reuters. The failed process means that the "natural buyers of this property aren't going to overpay for assets," says Tess Oxenstierna, head of the aerospace and defense group at Bank Street.
(Reuters) - British defense group BAE Systems (BAES.L) has hired advisors to sell some of its U.S. component manufacturing businesses as it looks to shift its focus to support and maintenance operations.
Permira has bought Asia Broadcast Satellite Ltd.'s holding company from Citigroup Inc.'s Citi Venture Capital International and private equity firm ADM Capital, the Wall Street Journal reported. The report valued the transaction at more than $200 million. ABS hosts more than 175 TV channels in the Asia-Pacific region. The company supplies bandwidth connectivity to broadcasting and telecom customers, serving over 80 customers in around 30 countries.
(Reuters) - Remington Arms Co, the gunmaker owned by Cerberus Capital Management LP, said on Friday its Chief Executive Theodore Torbeck has resigned. The news comes as Remington Arms, and its parent company Freedom Group Inc, prepare for an initial public offering. The group filed for a $200 million IPO in October 2009 [ID:nBNG401740]. Torbeck joined the company in early 2008 and became chief executive in March 2009. His resignation is effective September 24, the company said.
(Reuters) – Private equity firm Carlyle Group [CYL.UL] has scrapped plans to sell Arinc Inc after failing to find a buyer for the defense and aviation company in the past six months, several people familiar with the matter said. Carlyle, which hired Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) to advise it on the […]
Bridge Capital Holdings, which owns Bridge Bank, has arranged a $15 million funding round for RPO Inc. Bridge Bank teamed with Trinity Capital Investments to provide the financing. RPO has received prior investments from BASF Venture Capital, GE Commercial Finance and Neo Technology Ventures. RPO, of San Jose, plans to use the financing to build a high-volume manufacturing facility in the Bay Area to produce optical waveguides on flexible plastic substrates.
(Reuters) - Internet domain name registry GoDaddy.com has put itself up for sale, the Wall Street Journal reported on Friday. The privately held company could fetch more than $1 billion in an auction, the report said, citing people familiar with the matter. GoDaddy has hired investment bank Qatalyst Partners, the Journal reported. Private equity firms are expected to bid.
(Reuters) - British mobile phone retailer Phones4U could be put up for sale by its U.S. private equity owner Providence Equity, the Sunday Times newspaper reported, citing a source close to the company. "There have been several unsolicited approaches and Providence is considering these," the source told the newspaper. "Discussion are at an early stage." Analysts estimate the business, which has 476 stores, to be worth between 700 million pounds and 800 million pounds ($1.1-1.2 billion), The Sunday Times said. Neither Phones4U nor Providence Equity were available to comment.
A report from Jefferies & Co. today said that more PE deals in the information technology sector could be coming, with Computer Sciences Corp. as the best play. Joseph Vafi, a Jefferies & Co. analyst, also named CACI International, ICF International and WNS Holdings as the best candidates with IRRs near or in excess of 20%, according to a Sept. 10 research note. IT companies have emerged as favorites with PE firms. They typically have significant recurring revenue, long-tailed backlogs and relatively straightforward business models, Vafi said. Bank debt has also become easier to get.
Vestar Capital Partners V LP’s affiliates (Mountain Acquisition Corp. and Mountain Merger Sub Corp.) and Health Grades Inc. agreed to extend the offer period for proposed $8.20 a share tender offer for all Health Grades’ shares. The offer’s new deadline is September 16 at 9 AM, New York City time.