LONDON (Reuters) – Privately-owned German alumina products manufacturer Almatis has secured a standstill as negotiations to restructure the group’s debt continue, three sources with knowledge of the situation said on Thursday. The standstill period – under which creditors agree not to take action against the company – extends until the middle of August, according to […]
Selling a company for less than you bought it for is typically a sign defeat. But thanks to a lucrative sale-leaseback, that's not the case for Arcapita's sale of Church's Chicken to Friedman Fleischer & Lowe. The firm made 2x its money net of all carried interest and fees. News of the sale itself shouldn't be a surprise to peHUB readers, since we first reported it on June 8. However, we didn't have the exact math. So here's how Arcapita earned twice its investment: The firm purchased the southern food chain from parent company AFC Enterprises in 2003 for $390 million. Immediately the firm sold the company's real estate in a sale-leaseback transaction, making $162.5 million. That technically makes the "true price" $227.5 million. The firm put in $82 million in equity and Suntrust Robinson Humphrey provided $160 million of debt financing.
Ready Mix Inc. (AMEX: RMX), a Los Vegas-based concrete maker, said that it has retained Lincoln International to evaluate strategic alternatives, including a possible sale of the company. The company's current market cap is approximately $13.52 million.
Here’s a little timeline on Eddie Bauer, which filed for Chapter 11 bankruptcy protection a few hours ago: 2003: Eddie Bauer’s parent company, Spiegel Group, files for bankruptcy.
2005: Eddie Bauer becomes a publicly traded company.
May 2006: Eddie Bauer puts itself up for sale.
October 2006: Eddie Bauer is reported to receive a “below market” offer from Sun Capital and Golden Gate Capital, meaning the bid from the two firms was below its share price.
November 2006: The company’s shares are driven down on news of the bid; Sun and Golden Gate agree on a deal at the same price (but no longer a “take-under”) for $614 million.
February 2007: Eddie Bauer’s shareholders reject the agreed-upon deal. Sun Capital refuses to sweeten its offer.
June 2009: Eddie Bauer loses money for nine quarters in a row.
June 2009: Eddie Bauer files for bankruptcy. Again.* The company files with an agreement to sell to CCMP Capital Advisors for $202 million. Sun Capital and Golden Gate Capital have already done their diligence on Eddie Bauer. Could they plan a rival bid to CCMP?
ZM Capital got off to a false start last year, when its first deal as a solo shop -- a buyout of media services company Greenfield Online -- fell apart. But the firm, an investment subsidiary of ZelnickMedia, prevailed this week in its acquisition of Cannella Response Television, a Wisconsin-based broker of infomercial spots. ZM Capital brought in Palladium Equity Partners to share the equity load. The deal included no senior debt, but did have mezzanine notes and a small equity slice from VSS Structured Capital II (first investment from Veronis Suhler Stevenson’s second mezzanine fund). ZM Capital purchased the privately-owned company from its founder Frank Cannella, who is credited with being “The Father of the Infomercial Industry,” according to ZM Capital’s Andrew Vogel. Management, which includes Cannella and CEO Robert Medved, has retained a significant stake. Petsky Prunier advised the seller on the transaction. Pricing terms weren't disclosed.
The Private Equity Council has issued a statement in support of President Obama’s proposed plan for new financial regulation, which includes requiring private equity firms to register with the SEC. The advocacy group’s support backhandedly mentions such registration is unnecessary since “private equity firms do not create systemic risk,” but basically admits that all in […]
(Reuters) – Eddie Bauer Holdings Inc (EBHI.O) filed for Chapter 11 bankruptcy protection on Wednesday, sending its shares down 28.9 percent. The filing, made in U.S. Bankruptcy Court in Delaware, is the second bankruptcy for the company, which was started as a sport shop in 1920 in Seattle by its namesake. According to the court […]
NEW YORK (Reuters) – Eddie Bauer Holdings Inc (EBHI.O) is expected to file for Chapter 11 bankruptcy protection on Wednesday and announce a deal to be bought by CCMP Capital Advisors, according to The Wall Street Journal, which cited a person familiar with the situation. Another buyer can still top the CCMP deal in a […]
WestView Capital Partners has sponsored a recapitalization of Wavelink Corp., a Midvale, Utah-based provider of enterprise mobility software focused on automatic identification and data capture. No financial terms were disclosed.
Canal Partners has acquired a control stake in NETtime Solutions, a Scottsdale, Ariz.-based provider of an online time and attendance SaaS suite. No financial terms were disclosed.