HONG KONG (Reuters) – Private equity firm Crescent Point, founded by former Morgan Stanley (MS.N) bankers, is looking to sell its controlling stake in Masterskill, Malaysia’s largest nursing training school, sources said, in a deal that could fetch more than $200 million. The plan came after Masterskill Sdn Bhd shelved its plans for an initial […]
LONDON (Reuters) – Indebted insurer Pearl Group said it plans to raise 500 million pounds ($734 million) in new equity but warned debt holders they should not assume the funds will be used to restart deferred payments. Pearl, owned by entrepreneur Hugh Osmond’s Sun Capital and private equity firm TDR Capital, said on Thursday it […]
NEW YORK (Reuters) – Three bidders remain for General Motors Corp’s (GM.N) Hummer brand, two sources with knowledge of the matter said, adding that current offers range from $100 million to $200 million in cash, in addition to other commitments. None of the bidders are automakers. One bidder is from the United States and the […]
Hertz Equipment Rental Corp., a subsidiary of Hertz Global Holdings (NYSE: HTZ), has acquired Rent One, a provider of power to event and media companies in Spain. No financial terms were disclosed, except that Rent One had 2008 revenue of $2.9 million. Hertz shareholders include The Carlyle Group and Clayton, Dubilier & Rice.
Resilience Capital Partners has acquired shares representing more than a 5% stake in EDAC Technologies Corp. (Nasdaq: EDAC), a Farmington, Conn.-based maker of jet engine components, tools, fixtures, injection molds and spindles. Resilience said that it may choose to increase its stake, but did not mention any takeover attempts.
Today Water Street Healthcare Partners announced it hired Hank Struik as a senior executive advisor. Struik is the former president of Cardinal Health, an $11.5 billion pharmaceuticals and medical products company. Struik joins the Chicago-based firm six months after it closed its second fund with $650 million in commitments. Very little has been deployed to date, and Struik has come on board with a pretty straightforward mission: ‘Here’s $100 million from our fund, now find us a medical products deal.’ I spoke with him briefly this afternoon on globalizing medical products, why the industry is not recession-proof, and what buying opportunities he sees.
Earlier this month, we reported that Levine Leichtman Capital Partners had sued Apollo Management, in relation to the collapse of retailer Linens ‘n Things. Our post focused on the suit's primary allegations, so we glossed over a tidbit about how Linens was obligated to pay Apollo millions in fees. From the complaint:
Upon consummation of the Acquisition, the Company entered into a management services agreement with control person defendants Apollo Management V, an NRDC affiliate (NRDC Linens B LLC) and Silver Point. Under the agreement, the Sponsors agreed to provide to the Company certain investment banking, management, consulting, financial planning and real estate advisory services on an ongoing basis for a fee of $2 million per year. Under this agreement, Apollo Management V also agreed to provide to the Company certain financial advisory and investment banking services from time to time in connection with major financial transactions that may be undertaken by it or its subsidiaries in exchange for fees customary for such services purportedly after taking into account Apollo Management V’s expertise and relationships within the business and financial community. In addition, the Company paid a transaction fee of $15 million in the aggregate (plus reimbursement of expenses) to the Sponsors for financial advisory services rendered in connection with the Acquisition.
Apollo and its co-investors bought Linens 'n Things in late 2005, which means that they owned the company for just over three years. That would work out to $6 million in management fees, plus another $15 million for the transaction fee. So Apollo bled its own portfolio company for at least $21 million, plus whatever Linens might have paid Apollo for "financial advisory and investment banking services... in connection with major financial transactions."
Pegasus Capital Advisors has acquired a majority stake in Spirit Music Group, a New York–based music publisher with a catalog of more than 15,000 songs. No financial terms were disclosed.
(Reuters) – Chrysler is working around the clock to complete an alliance with Italy’s Fiat SpA (FIA.MI) that would also result in a new board for the U.S. automaker, Vice Chairman Jim Press said on Wednesday. Chrysler, about 80 percent controlled by Cerberus Capital Management CBS.UL, was given until the end of April by the […]
BDCs (business development companies) need money. SPACs (special purpose acquisition vehicles) have money they need to deploy. BDC, meet SPAC. It sounds like alphabet soup, but several SPACs and BDCs are discussing transactions, according to Michael Tew of research firm SPAC Partners. And it does seem to make sense. BDCs, which provide financing to middle and lower middle market companies, use their balance sheets to maintain strict leverage ratios, which means that they really could use some liquidity. Moreover, BDC share prices have plummeted in recent months, at the very time when their product is in high demand. Enter the SPACs. They have money. According to Tew, there are around 40 SPACs with about $9 billion in equity that have yet to announce a deal. Since many of them will meet their "invest or fold" deadlines within the next 12 months, they’re scrambling to find suitable targets and fighting for the same deals.