Blackstone, in a venture with Centerbridge Partners and Paulson & Co, has bought $300 million of junior debt in 14 hotels currently owned by Columbia Sussex Group, Kentucky businessman Bill Yung III's hotel group, according to a report in the Wall Street Journal. Columbia Sussex had bought the hotels from Blackstone for $1.4 billion in 2006. Blackstone Group has not yet commented on the deal. Earlier this week, Blackstone, Centerbridge, and Paulson purchased hotel group Extended Stay Inc in a deal worth $3.925 billion.
ARC Capital Holdings Limited has sold its entire stake in Shanghai Jiadeli Supermarket to Shanghai Haihang Jiale Enterprise Management Co. Ltd in a deal with RMB1.1 billion (equivalent to US$164.8 million). The supermarket group is the third largest in Shanghai. ARC invested $89.1 million between January 2007 and August 2008. This is ARC’s first control investment to go full-cycle, from acquisition to sale.
Lockheed Martin is to sell its Enterprise Integration Group unit to the Veritas Capital Fund IV $815 million, according to Veritas Capital. Lockheed had been in talks with a number of private equity firms to sell EIG, which advises government agencies on military platforms. Lockheed sold the unit to avoid any conflict of interest that might be created by advising government agencies on defense and also receiving major defense contracts. According to Lockheed, EIG has earnings of $65 million before interest, taxes, depreciation and amortization.
(Reuters) – Private equity firm Nordic Capital raised its bid for Swedish engineer Munters (MTRS.ST: Quote, Profile, Research, Stock Buzz) to 5.7 billion Swedish crowns ($859 million), retaking the lead in a bid battle investors were betting has not yet ended. Munters shares were up 2.6 percent to 78.75 crowns at 1140 GMT on Wednesday, […]
As it discusses selling 25 percent of its stake in Korea Exchange Bank, Texas-based private equity firm Lone Star is also getting read to sell German Bank IKB, with the deal expected to be completed in the first quarter of 2011 according to Reuters. IKB was the first German victim of the U.S. subprime mortgage crisis and Lone Star bought 91.5 percent of the bank’s shares after it was bailed out by Germany. No price has yet been announced.
Cinven, a private equity firm based in London, is close to selling its stake in Jost, a German truck and trailer parts maker, to creditors. According to Reuters, an earnings slump prompted Jost’s management, its private equity backers, and holders of just under 400 million euros ($554 million) of loans to enter into a debt-for-equity swap. The arrangement could drop Cinven’s stake in Jost from 73 percent to 65 percent, while management, which holds the other 27 percent, would lose 7 percent.
Cortec Group, a New York-based PE firm, has bought a majority interest in Franklin Energy Services through its Cortec Group Fund IV. The deal was struck in partnership with Franklin management. Franklin was founded in 1994, and works on energy efficiency programs for utilities and government agencies. The details of the deal were not disclosed.
Shamrock Capital Growth Fund II, a California-based, media-focussed private equity firm, has invested significant growth capital in INgrooves, a digital media company in San Francisco. Shamrock now joins Universal Music Group as a minority shareholder in the company. INgrooves will use the money to expand into “ancillary media verticals” such as eBooks. The financial details were not disclosed.
NEP Broadcasting, which is backed by American Securities, has agreed to buy Sweetwater and American Hi Definition. Financial terms were not announced. The companies will become part of NEP's entertainment division. Van Nuys, Calif.-based American Hi Definition is a provider of theater-scale digital projection rentals and sales. Sweetwater is a digital rental company. New York-based American Securities is a PE firm.
Piper Jaffray said late Tuesday that it planned to spin off its private capital business, which will be renamed North Sky Capital, on Dec.1. The fund-of-funds business will transition to key principals, the statement said. Scott Barrington, a Piper Jaffray MD, will lead the new entity. North Sky will manage the funds raised by Piper Jaffray Private Capital, or about $700 million in committed capital. Minneapolis-based Piper Jaffray is an investment bank.