Nov. 16, 2015, 8:02 AM
- Facility management group GCA Services provides janitors and cleaners to schools, airports, warehouses, power stations, rental car locations, and the like. The private equity arm of Goldman Sachs (NYSE:GS) and Thomas H. Lee will have an equal stake in a group buying GCA from Blackstone (NYSE:BX) for about $1B, reports Reuters.
- GCA gets most of its business from the education sector and could benefit as more school districts outsource facility management (currently less than 20% is outsourced).
- Blackstone acquired GCA from another P-E firm in 2012 for about $600M.
Sep. 28, 2015, 5:56 AM
- As leaked a couple of weeks back, Comcast's (NASDAQ:CMCSA) NBCUniversal agreed to the purchase of a majority stake in Universal Studios Japan from Goldman Sachs and other owners of the theme park.
- “We are excited to expand our global footprint with this wonderful theme park in Osaka,” said Comcast CEO Brian Roberts. “This investment represents a huge opportunity and commitment to creating value for our shareholders and continuing to grow internationally.”
- Goldman Sachs (NYSE:GS) currently has a majority stake in USJ, the owner/operator of Universal Studios Japan, with remaining shares held by Japanese P-E firms and a U.S. hedge fund. All will be selling more than half of their holdings to NBCUniversal.
- The deal is expected to close in November.
- Source: WSJ
- Previously: WSJ: NBCUniversal considering buying majority of Universal Studios Japan (Sept. 15)
May 26, 2015, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
May 15, 2015, 2:42 PM
- Any talks between Charter Communications (NASDAQ:CHTR) and Time Warner Cable (NYSE:TWC) about a merger may be up in the air, but bankers won't be the bottleneck, as they're ready to talk about $25B or even more to make it happen.
- Following previous reports that Charter could go for $25B-$30B in debt, the cableco is talking with the same four bankers that committed $24B to Charter's early-2014 bid: Bank of America Merrill Lynch (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB) and Goldman Sachs (NYSE:GS).
- As one banker noted, "it should be quick to move to next steps, as the banks know the company pretty well," and said the package should end up as two-thirds bonds.
- Aside from any regulatory issues, leverage seems to be foremost on the mind of dealmakers (and investors). Liberty Broadband's (NASDAQ:LBRDA) Greg Maffei has gone public with the notion that Liberty could raise capital through rights offerings or tap $700M in cash to help with funding while maintaining its 25% stake in Charter.
- Other banks could join in too, which could make such a deal one of the largest junk bonds ever. Time Warner's on the edge of junk status, rated BBB/Baa2 by S&P and Moody's.
Apr. 24, 2015, 9:15 AM
- Comcast (NASDAQ:CMCSA) is trading up 1.3% premarket, and Time Warner Cable (NYSE:TWC) is 0.8% higher as well, after confirmation that their $45B merger deal is dead.
- In statements by the Justice Dept. and FCC thanking each other for their cooperation, it's clear that FCC Chairman Tom Wheeler was against the deal, which would have made agency approval a very long shot.
- It's also clear why Wheeler was opposed: It's about broadband, not cable, and protecting the burgeoning streaming video market. "The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
- While Comcast doesn't pay a breakup fee with the deal's end, that doesn't mean everyone walks away cheaply: Advisers including bankers and lawyers will lose out on $380M in fees, chiefly Goldman Sachs (NYSE:GS), banker for Charter Communications (NASDAQ:CHTR). J.P. Morgan Chase (NYSE:JPM) will drop from second to third in the league tables. As a mitigating factor, more deals are likely on the way, though.
- Other sector players premarket: AT&T -0.3%; Verizon -0.2%.
Oct. 16, 2014, 3:41 PM
- Goldman Sachs (GS -2.6%) moved to get into the ETF business in late September, filing to launch a series of actively-managed ETFs, but that may not be fast enough, as Reuters reports the bank is in discussions to acquire IndexIQ.
- Should Goldman pull it off, it could be in the ETF business within months.
- IndexIQ at the moment offers ETFs in five sectors: Hedge fund replication, commodities, real estate, real return & inflation hedge, and international.
- On the company earnings call earlier today, Goldman CFO Harvey Schwarz spoke of the bank's willingness to make acquisitions if the deal was right.
Oct. 5, 2014, 4:56 PM
- Becton Dickinson (NYSE:BDX) will acquire CareFusion (NYSE:CFN) for $12.2B in cash and stock in a merger of medical-products makers.
- CareFusion shareholders will receive $49 in cash and 0.0777 BDX share for each CFN share, based on BDX’s Oct. 3 closing price.
- BDX expects the deal will add “double-digit” EPS accretion in its first full year.
- BDX has $9.1B in fully committed bridge funding from Goldman (NYSE:GS).
- The price represents a 26% premium to CFN’s Oct. 3 closing price of $46.17.
- BDX CEO Vincent Forlenza: “BD’s acquisition of CareFusion allows us to align our highly complementary technologies and products to address unmet needs in the growing $20 billion global medication management industry, which leverages BD’s world-wide infrastructure. It accelerates BD’s transition from a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety.”
Jul. 22, 2014, 7:35 AM| Jul. 22, 2014, 7:35 AM
Apr. 1, 2014, 1:59 PM
Feb. 15, 2014, 12:13 PM
- Tyson Foods (TSN) made an offer for Michael Foods, according to Bloomberg.
- The prepared foods business is owned by the P-E arm of Goldman Sachs (GS).
- Inside sources think more bids in the neighborhood of $2B could come in from food companies and other P-E firms.
- Michael Foods sells products under a number of brands that would be a good fit for Tyson - including Simply Potatoes, Papetti’s Easy Eggs, and Crystal Farms cheese.
Feb. 12, 2014, 4:50 AM
- Goldman Sachs (GS) and Deutsche Bank (DB) are looking to exit an area of operations that not that many people know they're involved in: trading supplies of raw uranium, which is also known as yellow cake.
- Between them, the companies have built up stockpiles of low-grade uranium larger than those held by Iran.
- However, with scrutiny of banks' physical-commodities trading increasing and uranium demand low following the Fukushima disaster, the firms are looking to sell their uranium trading desks.
- Australian bank Macquarie (MCQEF) is reportedly interested in Goldman's operations, which are called NUFCOR.
Nov. 27, 2013, 7:32 AM
- Danaher (DHR) and Blackstone (BX) have reportedly joined together to bid for the water-treatment unit of chemicals manufacturer Ashland (ASH) in a deal that could exceed $1.5B.
- Other suitors vying for the business include Apollo (APO) and Goldman Sachs' (GS) private-equity arm.
- The move for the Ashland ops is the second deal that Danaher and Blackstone are working on, with the companies also looking to acquire J&J's clinical diagnostics unit, which could attract $4B.
Aug. 25, 2013, 2:45 AM
- BATS Global Markets (BATS) is reportedly in advanced negotiations to merge with Direct Edge Holdings in an all-stock deal that would create the second-largest exchange operator in the U.S. in terms of shares traded, putting it behind the NYSE (NYX) but ahead of Nasdaq (NDAQ).
- BATS CEO Joseph Ratterman is expected to become the head of the new firm, while Direct Edge boss William O'Brien would become president. The companies plan to continue operating all four of their U.S. stock-exchange platforms after the merger.
- Both firms are profitable, with BATS earning EBITDA of $101M in 2012.
- Direct Edge's owners include KCG Holdings (KCG), Goldman Sachs (GS), Citadel and the International Securities Exchange. Those of BATS include KCG also, as well as Bank of America (BAC), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JPMorgan (JPM) and Morgan Stanley (MS).
Aug. 21, 2013, 2:47 AM
- Lloyds (LYG) has agreed to sell German life insurer unit Heidelberger Leben for £250M to a joint venture of private equity group Cinven and Hannover Re.
- The U.K. bank expects the sale to lead to a loss on disposal of around £330M, but combined with other divestments, should strengthen the group's common equity tier 1 capital by around £400M.
- The deal is part of Lloyds' strategy of "rationalizing its international presence." (PR)
- Separately, Lloyds has also agreed to sell a portfolio of leveraged loans to Goldman Sachs (GS) unit ELQ Investors II for at least £254M. The portfolio mainly comprises U.K.-based assets in a range of sectors, including manufacturing and retail. (PR)
Jul. 16, 2013, 7:00 AM
The $4.7B buyer of Smithfield Foods (SFD) - Shuanghui International - plans a Hong Kong IPO after closing the purchase, reports Reuters, with sources saying Hong Kong would place a higher valuation on the company than exchanges elsewhere. The move would provide an exit route for Shuanghui's P-E investors, including Goldman Sachs (GS).| Jul. 16, 2013, 7:00 AM
Jun. 3, 2013, 5:31 AM
The General Motors Building in Manhattan has become the most valuable office property in America after the families of Chinese property developer Zhang Xin and Brazil's Safra banking empire acquired a 40% in the 50-story skyscraper for $1.4B. The sellers were a group of Persian Gulf interests, some of whom are represented by a Goldman Sachs (GS) fund. The other 60% is being retained by Boston Properties (BXP). Reports of the deal, which values the GM Building at $3.4B, follow news that Carlyle is selling a 27-story Manhattan building for $1.3B.| Jun. 3, 2013, 5:31 AM