BI Inc., which is backed by AEA Investors, has agreed to merge with The GEO Group in a deal valued at $415 million. BI, of Boulder, Colo., provides supervision technologies and community-based cognitive behavioral reentry programs for adult and juvenile offenders. GEO Group also supplies correctional, detention, and residential treatment services to federal, state, and local government agencies globally. AEA is a PE firm. News of the deal was disclosed by Harris Williams, which provided financial advice to BI.
Leading Ridge Capital Partners said Tuesday that it has recapped The Supply Source. Financial terms weren't announced. Jacksonville, Fla.-based Supply Source distributes packaging and shipping products, labels, and janitorial supplies. Leading Ridge, of Rockville, Md., is a PE firm.
Catalyst Investors said Tuesday that it has invested $10 million in Barrett Xplore, which provides 4G wireless and satellite broadband services to rural Canada. Catalyst, of New York, is a PE firm.
Christmas came early for Cerberus, the once mighty PE firm that has gotten nailed by some bad bets. Today, Cerberus agreed to sell Chrysler Financial for $6.3 billion to Toronto Dominion Bank. The deal is short of the $7.4 billion Cerberus invested in Chrysler back in 2007. The deal will help burnish Cerberus's series of auto-related investments, Dealbook says. Also, Cerberus is retaining about $1 billion in assets.
Centre Partners Management has sold Quickie Manufacturing Corp. to Jarden Corp. Financial terms were not disclosed. Cinnamsinson, N.J.-based Quickie provides housecleaning tools like brooms, mops and dustpans. Centre Partners, with offices in New York and Los Angeles, is a PE firm. Sawaya Segalas & Co. advised Quickie in the sale.
The Illinois-based private equity firm’s Knape & Vogt, a maker and distributor of functional hardware, storage components and ergonomic products will integrate the Illinois-based John Sterling Corp. into its existing platform. For Wind Point, 2010 has been a busy year of completing add-on deals for existing assets and platforms, including its Ryt-Way Industries and Hearthside Food Solutions.
Private equity deals rebounded with a bang in 2010. In fact, for the first time since 2007, buyout transactions globally are expected to hit more than $200 billion, according to Preqin. So far there have been 2,028 PE deals this year, valued at $196.7 billion as of Dec. 20. This compares to last year when 1,530 deals raised $87.6 billion for all of 2009. This year's totals also beat out 2008's when there were 2,117 PE transactions, valued at $180.2 billion, according to Preqin data.
Buyout shop TPG Capital will pay roughly $505 million for a portfolio of U.S. retail and mixed-use assets currently owned by ProLogis. The properties include Los Angeles Union Station, four shopping centers, two office buildings and two residential development joint ventures, among others. The assets were acquired when ProLogis merged with Catellus Development Corp. in 2005. Private equity firm TPG Capital has more than $48 billion under management.
Limited partners are again prying open their checkbooks, but they are looking to take capital to middle market funds in greater numbers these days, according to an annual Probitas Partners survey conducted across a group of 183 institutional LPs. More respondents said next year they are likely to back middle market buyout funds ranging in size from $500 million to $2.5 billion and small market funds of up to $500 million (46% and 37%, respectively) than institutional LPs that were looking to invest with $2.5 billion to $5 billion funds and mega-LBO firms pushing funds of $5 billion and up (a paltry nine and five percent, respectively).
Gloucester Engineering said Monday that it plans to emerge from Chapter 11 bankruptcy protection on Dec. 31, the day its plan of reorganization becomes effective. Blue Wolf Capital Partners, a New York PE firm, will now become Gloucester Engineering's majority shareholder. Gloucester Engineering, of Gloucester, Mass., provides equipment for the plastics extrusion and converting industry.