Jan. 31, 2014, 8:41 AM
- Bank of Montreal (BMO) isn't the only North American fund manager looking to boost its presence in Europe, and there are a number in P-E - Blackstone (BX) and KKR immediately come to mind - looking to get into fund management.
- Ray Soudah - chief of an M&A consultancy - thinks there's a good chance BMO will have to boost its £700M offer.
- F&C is a fat target after a couple of years of shareholder activism and management turnover - not a good thing for an asset manager, but also not damaging the brand name of a company whose history traces back to 1868.
- Previous coverage
Jan. 31, 2014, 8:18 AM
Jan. 31, 2014, 8:07 AM
Jan. 31, 2014, 12:05 AM
Jan. 30, 2014, 5:30 PM
Jan. 27, 2014, 8:07 AM
- Confirming Friday's rumor, KKR agrees to buy a majority stake in insurance claims servicer Sedgwick for about $2.4B. Sedgwick handles over 2.1M claims annually and has fiduciary responsibility for more than $11B in claim payments.
- Sedgwick is currently owned by Stone Point Capital, Hellman & Friedman and company management.
- The deal is expected to close in Q1.
- Press release
Jan. 24, 2014, 5:55 PM
- KKR reportedly is close to acquiring Sedgwick Claims Management Services for more than $2B, and a deal could be announced as soon as next week.
- If completed, the deal would mark KKR's second claims-services investment in recent months after paying $1.1B for auto and property claims software group Mitchell International.
Jan. 24, 2014, 10:40 AM
- A manager of bad debts, Huarong is expected to get plenty of business as waves of loans turn sour in China. The largest of the country's four bad loan managers, the company oversees assets of about $66B.
- The stock offering - previously reported as a stake of 15-20% - will allow Huarong to acquire more bad loans and forfeited assets. The profit comes as the company repackages the loans/assets and moves them to other buyers.
- Among a large number of those trying to get a piece are KKR, BlackRock (BLK), and Blackstone (BX), reports Reuters. First-round offers are due by mid-February.
Jan. 22, 2014, 9:38 AM
- RWE's (RWEOY) Dea oil and gas production and exploration unit has attracted at least three initial bids valuing the business at up to €5B ($6.8B) including debt, WSJ reports.
- But the German utility likely would generate much less cash than that from a deal because the overall valuation includes pension liabilities and debt of more than €700M.
- The highest valuation, at ~€5B, comes from Russian billionaire Mikhail Fridman through his energy investment vehicle L1 Energy; lower bids reportedly have come from Wintershall, the oil and gas exploration unit of German chemicals giant BASF (BASFY), and a consortium of KKR and Kuwait Petroleum Corp.
Jan. 20, 2014, 2:30 AM
- Anheuser-Busch InBev NV (BUD) has agreed to repurchase South Korea's Oriental Brewery from KKR (KKR) and Affinity Equity Partners for $5.8B including debt.
- AB InBev sold Oriental to KKR in 2009 for $1.8B in an effort to reduce debt following InBev NV's $52B acquisition of Anheuser-Busch. As part of the deal, AB InBev had the right to buy back the operations within five years.
- AB InBev will finance the transaction with internal resources, but will also receive $320M in cash when the deal is completed.
- The acquisition heralds further consolidation in the alcoholic-beverages industry, coming just a week after Japan's Suntory Holdings said it had agreed to buy Beam for $13.6B. (PR)
Jan. 17, 2014, 8:04 AM
- KKR and Permira Advisers sold a 16.6% stake (36.3M shares) of ProSiebenSat for roughly $1.7B, completing their exit from the German broadcaster.
- The two had bad timing initially - taking over the company at the height of the buyout boom in 2007. The stock cratered shortly after, but has been a 5-bagger since the P-E firms in 2009 brought in a new management team headed by Thomas Ebeling (from Novartis).
Jan. 16, 2014, 9:33 AM
- KKR Financial (KFN) - soon to likely be merged into KKR - agrees to invest more than $100M into the helicopter leasing subsidiary of Lease Corporation International. LCI will use the money to significantly grow its fleet.
- In the airplane leasing business since 2004, LCI entered the helicopter sector in 2012.
- Press release
Jan. 9, 2014, 4:31 PM
- KKR says it will open its first Canadian office next month in Calgary, the capital of Canada's oil patch, as it seeks to tap into growing demand for private-equity financing in the region and expand its presence in the global energy industry.
- KKR Director Brandon Freiman, who will relocate from the NYC headquarters to start up the new office, is eyeing investment of $500M to "several billion dollars" over the next five years in upstream oil and gas production, midstream pipelines and related infrastructure as well as energy services businesses.
- The planned investments will include providing financing instead of outright takeovers, KKR says.
- Canadian energy names on the radar: SU, IMO, BTE, SOQ, ERF, CVE, COSWF, AAV, BXE, CNQ.
Jan. 8, 2014, 7:33 AM| Jan. 8, 2014, 7:33 AM | Comment!
Jan. 1, 2014, 8:30 AM
- With $585B of "dry powder" money to put to use in North America, private-equity firms are increasingly looking to take minority stakes in companies and partner with them rather than buy them outright.
- Carlyle (CG) and Blackstone (BX) are among those taking such an approach, with the latter this week agreeing to purchase a 13% stake in Crocs for $200M.
- The logic of the strategy is that full deals are expensive, competition for minority stakes is less, the transactions can be custom-made, and they often don't involve auctions.
- However, the story of Hicks, Muse, Tate & Furst should serve as a bit of a warning - one of the biggest P-E firms of the 1990s spent too much on telecom investments that didn't pay off, leading to its closure.
- Other P-E firms include KKR (KKR), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global (APO).
Dec. 31, 2013, 4:49 AM
- Private-equity firms are set to return over $120B to their investors for this year, surpassing the 2012 record of $115B, Cambridge Associates estimates.
- The P-E sector has been assisted by low interest rates, which have helped P-E backed companies to sell $66.2B worth of debt in 2013 to fund dividends to their owners, up from $64.2B a year earlier.
- The Fed's easy money policies and subsequent stock boom have also been a factor, with a record 94 companies with P-E investors bringing in $33.3B in IPOs.
- The high payouts have helped buyout funds raise $143.5B in 2013, the most since 2008.
- Blackstone (BX) and KKR (KKR) are among those to have benefited, while others include Carlyle (CG), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global (APO).
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