JLL Partners has extended its unsolicted offer to Patheon Inc., a Canadian pharmaceutical company, for the price of $2 per share. The offer, which has been recommended against by the company’s independent committee, has been extended to June 1. Press release: JLL Partners Inc. and its affiliate, JLL Patheon Holdings, LLC (collectively, “JLL”), announced today […]
Veronic Suhler Stevenson, a New York buyout fund, has with its portfolio company Access Intelligence, purchased a minority stake in RETECH, a exhibition and conference event. Deal terms were not disclosed. Press release: The American Council of Renewable Energy (ACORE) announced today it has selected leading b-to-b information provider, Access Intelligence, to purchase a minority […]
(Reuters) – American International Group Inc (AIG.N) is in exclusive talks with a bidding group including Franklin Resources Inc (BEN.N) and Crestview Partners LP for its asset management business, sources familiar with the matter said on Wednesday. The asset management business being sold rests within AIG Investments. If a deal is reached, Franklin, which manages […]
Speaking of dividend recaps. PNC Equity Partners has taken a recap on portfolio company Griffith Energy to the tune of 1.5x its investment, according to a source familiar with the situation. Manufacturers and Traders Trust Company led the arrangement of the senior debt facility. JPMorgan, HSBC and TriState Capital Bank also participated. The deal leaves the company with slightly debt than before, very roughly in the range of a 2x debt to Ebitda ratio. PNC purchased Griffith Energy, a New York-based propane and heating oil distributor, five years ago. Between then and now the firm has worked to upgrade IT infrastructure, integrate several tuck-in acquisitions, and change the pay structure for drivers and consolidate the company’s field office locations.
It always looks bad when a buyout-backed company collapses under its debt load. It looks even worse when that buyout firm has already made a profit on the company. That's what happened today with structured settlement company J.G. Wentworth, which filed for Chapter 11 this morning. Private equity firm JLL Partners bought the company in 2005. Since then, it's profited handsomely on the investment. From Buyouts:
The shop has taken out 2x its initial investment through two recapitalizations, and over the summer it sold $145 million worth of equity on a private exchange run by Bear Stearns. The private placement paid off J.G. Wentworth's second-lien debt and valued JLL Partners's remaining equity position at $450 million, generating a 6.1x return on its original $125 million investment, Rodriguez said.
Guest Appearance: THL Partners' Scott Sperling wrote an op-ed in today's Wall Street Journal. He argues that Obama's approach to the auto industry is not anti-capitalist. (WSJ) Open Mouth, Insert Foot: J.C. Flowers' "Impolitic Words" may haunt private equity's bids for banks. (Dealbook) Ideal Employer Is No Employer? Universum's annual college grad survey has some interesting things to say about the attitude of recent grads--Less than 60% of undergraduates have bothered to look for employment. (BusinessWeek) Real Estate: Dick Fuld is looking to earn 50% on the sale of his co-op. (Business Insider)
Thoma Bravo’s deal to purchase Entrust Inc. has been called into question, as the firm received disclosed in an SEC filing that it received three higher indications of interest doing its “go-shop” period. The company’s board recommends Thoma Bravo’s offer but it continues discussions with the three parties. Company Web site
Vista Equity Partners has increased its offer for SumTotal Systems for a second time to $4.85 per share in cash, or $4.95 per share depending on developments in the company’s breakup fee with Accel-KKR. The bid tops rival bidder Accel-KKR’s sweetened offer for the company from yesterday of $4.80 per share. The company yesterday announced […]
Elixir Pharmaceuticals, a developer of metabolic disease drugs, has completed a $12 million equity financing led by MPM Capital, via MPM Bio IV NVS Strategic Fund. Additional investors in the round include ARCH Venture Partners, Oxford Bioscience Partners, the Omega Fund and Physic Ventures. Further, Elixir announced an option agreement with Novartis giving the pharmaceuticals […]
(Reuters) – Private equity investor RHJ will make an offer for General Motors’ German carmaker Opel, a source with direct knowledge of the matter said on Wednesday. The source said the offer would give General Motors a substantial stake in the business. Fiat and Magna International are also expected to make bids for Opel, which […]