#4. Aleris International TPG purchased the Beachwood, Ohio—based company in 2006 for $3.3 billion. The firm invested $849 million in equity from TPG Partners V LP. What Went Wrong? The company’s capital structure had very few covenants and a covenant-free revolver. But a sudden and dramatic drop in aluminum prices hurt the automotive and industrial […]
#5. Masonite International KKR purchased the Canadian door maker in 2005 for $2.5 billion. The firm invested $551.5 million in equity from KKR Millennium Fund. What Went Wrong? The slide in housing and construction hurt the company’s ability to service payments on its TK million in debt. The deal had covenants and a relatively standard […]
#6. Reader’s Digest Association A consortium led by Ripplewood Holdings purchased the Pleasantville, N.Y.-based periodical publisher in 2007 for $2.4 billion. The firm invested at least $375 million in equity to the deal from Ripplewood Partners II LP. What Went Wrong? The company saw readership of its namesake publication decline by half as the demand […]
#7. Freedom Communications Inc. Blackstone Group and Providence Equity Partners purchased the Irvine, Calif.-based newspaper company in 2004 in a deal that valued the company at $1.7 billion. We included this deal even though it is a minority investment because of the size of the company and firms’ equity checks, which were as large as […]
#8. Cooper-Standard Holdings Inc. Cypress Group and GS Capital Partners acquired the Novi, Mich.-based auto parts supplier company in 2004 for $1.165 billion. The firms contributed $318 million of equity from GS Capital Partners IV LP and an undisclosed Cypress Group fund. What Went Wrong? Thanks to a nationwide slowdown in the demand for automotives, […]
#10. Bi-Lo/Bruno’s Supermarkets Lone Star Funds purchased the grocery companies in 2004 for $660 million. The firm contributed an undisclosed amount of equity from Lone Star Fund V LP. What Went Wrong? After purchasing the two companies from Ahold, Lone Star separated them. Bruno’s, which had already been through the bankruptcy courts back in 2000, […]
#9. MagnaChip Semiconductor Court Square Capital Partners and Francisco Partners acquired the Sunnyvale, Calif.-based electronics parts maker in 2004 for $828.2 million. Equity contributions and funds were not disclosed. What Went Wrong? The company managed to acquire $1 billion in debt just as demand for consumer electronics products declined in the recession. The company’s management […]
Here are some potential target ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts “Seeking Buyers” list. For prior lists, see below, and send any additions my way. Astrotech Corp, which owns and operates spacecraft pre-launch facilities, said it is exploring strategic alternatives, including a possible sale, sending its shares up as much as 75 percent. (Reuters) Publicly traded Baxter International Inc. is seen by some as a likely acquisition target, especially after Abbott Laboratories and Johnson & Johnson boosted their vaccines pipelines. (Dealscape, Barrons, ONN.tv) Fitness machine maker Nautilus is selling its commercial business unit. (AP)
True Temper Sports Inc., a Memphis, Tenn.-based maker of golf shafts and other sports equipment, has agreed to a debt restructuring with its lenders. The deal would include a prepackaged bankruptcy filing and around $70 million in new equity funding. The company did not identify the equity investors, nor mention if they include current owner Gilbert Global Equity Partners.
Panolam Industries, a Shelton, Conn.-based decorative laminate company, said that it has reached a debt restructuring agreement with lenders led by Apollo Capital Management. The deal would include a prepackaged debt-for-equity swap. Genstar Capital and Sterling Group bought Panolam for $345 million in 2005.