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).
Dec. 26, 2013, 4:48 AM
- Sources say "the time has passed" that plaintiffs would have settled for $1B
- The suit alleges private-equity firms, including KKR (KKR), Bain Capital, Silver Lake Partners, Blackstone Group (BX), Carlyle Group (CG), TPG Capital, and Goldman Sachs Capital Partners (GS) agreed from 2004 through 2008 not to jump each others' signed deals.
- The PE firms have tried 10 times since the 2007 case was filed to get it tossed. Settlement talks could begin in earnest in coming months after a Nov. 3, 2014, trial date was set during a court hearing last week, sources say.
- The value of the eight buyouts in question is $170B
Dec. 24, 2013, 2:45 AM
- KKR (KKR) has raised $1.5B for its first property fund, which will invest most of its money in North America but also up to 25% in Europe.
- The establishment of KKR Real Estate Partners Americas comes two years after the private-equity firm formed a property unit in 2011, since when it has completed 14 deals. It also adds to the trend of P-E companies increasing their focus on real estate.
- "We have a very deep and robust pipeline of opportunities," said KKR's Ralph Rosenberg, although he warned that "it's harder to find things today than a year ago."
Dec. 17, 2013, 12:45 PM
Dec. 17, 2013, 9:11 AM
Dec. 17, 2013, 7:52 AM| Dec. 17, 2013, 7:52 AM | 6 Comments
Dec. 16, 2013, 5:42 PM
Dec. 16, 2013, 5:03 PM
- The stock-for-stock acquisition in which KFN shareholders will receive 0.51 common units of KKR for each share of KFN they own values the company at $2.6B or $12.79 per share, based on today's KKR close of $25.08.
- KKR's book value is expected to growth to $9.3B from $7.2B, and book value per adjusted unit will grow to $11.34 from $10.07. The transaction is expected to be accretive to both the size of KKR's distribution per unit as well as the predictable and recurring component of future distributions. Integration risk is minimal as KFN's assets are already managed by KKR.
- The deal is currently a 35% premium to today's close for KFN and amounts to 1.15x book value.
- The boards of both companies have approved the merger.
- KFN +31%, KKR +1.7% AH
- Press release
Dec. 9, 2013, 4:15 AM
- Tyco International (TYC) has reportedly attracted initial bids from KKR (KKR) and Bain Capital for ADT Caps, its South Korean security systems unit, which is valued at around $1.6B.
- Other suitors for ADT Caps include CVC Capital Partners, Hong Kong-based Affinity Equity Partners and South Korea's MBK Partners.
- The $1.6B valuation is based on an EBITDA multiple of 10, above the 8X that other deals in the sector attracted.
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