CVC Capital Presents Best Offer to Take Control of Deoleo

Deoleo, Spain’s biggest olive oil producer, announced that the private equity firm CVC Capital Partners presented the best offer for a controlling stake in the Spanish firm.

The move puts at risk British-based CVC Capital Partners’ bid for the indebted Spanish firm, which sells one fifth of the world’s bottled olive oil and owns three of the top four brands, Spain’s Carbonell and Italy’s Bertolli and Carapelli.

Spain is by far the biggest world producer of olive oil, with the growing industry a major employer in the country’s impoverished south. The government has said that while it will not block foreign takeovers, it does not want to see the company broken up.

Deoleo said on Wednesday private equity firm CVC had made the highest offer for the company. CVC planned to maintain Deoleo’s brands and keep the company intact, a source close to the deal said.

Source: Reuters

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Deoleo, Spain, Olive Oil Producer, CVC, CVC Capital Partners, British Private Equity, UK Private Equity, UK, Italy, Carbonell, Bertolli, Carapelli.


Lloyd’s Insurer Brit Announces £960M IPO

Apollo Global Management and CVC Capital Partners have priced the sale of stock in Lloyd’s of London insurer Brit PLC with a market capitalization of £960 million.

The specialty insurer Brit said Friday that it had raised 240 million pounds, or about $400 million, as part of an initial public offering on the London Stock Exchange.

Brit is the latest private equity-owned company to float its shares in recent months amid buoyant stock markets eager for new listings.

The insurer, which is based in the Netherlands, priced its offering at 240 pence a share, giving it a market capitalization of £960 million. The company’s shares were trading up slightly at 240.25 pence early Friday.

Brit was taken private by Apollo Global Management and CVC Capital Partners in 2010.

“I am pleased that our offering has been well received by investors,” said Mark Cloutier, the chief executive of Brit. “Having transformed Brit into a successful global specialty insurer operating solely through Lloyd’s of London, we have built a strong foundation for future profitable growth and continued success.”

Source: New York Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Apollo Global Management, CVC Capital Partners, Lloyd’s, Brit PLC, Initial Public Offering, IPO, London Stock Exchange, Netherlands, Mark Cloutier, Lloyd’s of London.


Nordic Eyewear Retail Chain Bought by CVC Capital

Synsam Nordic, an optical retailer in the Nordic region, has been acquired by a private equity firm CVC Capital Partners from Alipes, the investment firm controlled by Sweden’s Kamprad family, terms of the deal were not disclosed.

The sale comes about seven years after Synsam was acquired by a group of former store owners and Alipes, an investment firm sponsored by Ikano and Inter Ikea. The Kamprad family controls the furniture retailer as well as Ikano and Inter Ikea.

Synsam was founded in 1968 when a group of independent opticians began operating under a common brand name. The company now has more than 420 stores and franchises in Sweden, Denmark and Norway, selling glasses and contact lenses and providing eye examinations.

“Synsam is our oldest portfolio company and we are proud of having worked together with former store owners and an excellent management team to develop it from a voluntary retail chain to the leading integrated optical retail chain in the Nordic,” said Gunnar Selving and Richard Silén, partners at Alipes.

Source: New York Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, European Private Equity, Synsam Nordic, Optical Retailer, Nordic Region, CVC Capital Partners, Sweden, Kamprad Family, Ikano, Inter Ikea, Denmark, Norway, Gunnar Selving, Richard Silén.


Symrise and Ajinomoto Both Submit Buyout Offers for French Food Ingredients Maker

French food ingredients maker Diana, received buyout bids from Symrise, a listed German aroma chemicals maker, and Ajinomoto, a Japanese producer of seasonings and curry sauces.

In moves highlighting the intense competition for deals in Europe the two groups have submitted bids valuing the Brittany-based company at more than €1.2bn including debt, people with knowledge of the talks said. They trumped Blackstone and BC Partners, which have not been retained by the seller, Ardian, for a second round of bidding in the next weeks. However, private equity groups CVC Capital Partners, Eurazeo and Pamplona remain in the race, they said.

The hard-fought auction underlines buyout investors’ struggle to compete for deals as prices rise and corporate buyers join the fray. Private equity groups have accumulated a record $1tn of cash from pension plans, insurers and sovereign wealth funds and are finding it hard to spend the money.

Rising equity markets have lifted price expectations while deal-flow remains about half of what it was before the crisis. The competition has heightened because a lot of private equity groups are opting to float their portfolio companies rather than sell them because public market investors are ready to pay more, drying up a large source of potential deals for other buyout houses.

Source: Financial Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, French Food Ingredients Maker, Diana, Buyout Offer, Buyout Bids, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Symrise, Germany, Ajinomoto, Japan, Europe, Blackstone, BC Partners, Ardian, CVC Capital Partners, Eurazeo, Pamplona.


Brit Insurance Expects IPO Later this Year

Brit Insurance, the former FTSE 250-listed insurance group, announced its plans to return to the London market after just a three-year absence later this year, hoping investors will put a price tag of £1bn on the business.

Brit Insurance is the latest example of a company owned by private equity to announce a plan to publicly float stock in recent months.

The insurer, which is based in the Netherlands, was taken private by Apollo Global Management and CVC Capital Partners in 2010.

The company intends to offer at least 25 percent of its shares. The offering is expected to be completed by April.

Since going private, the company has sold several business lines, including its general insurance business in Britain in 2012.

It now focuses on specialty insurance and reinsurance for businesses, and it has a large presence in the Lloyd’s of London underwriting marketplace.

“We are very pleased to be bringing Brit to the market following a period of successful change for the business,” said Mark Cloutier, the company’s chief executive.

Source: New York Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Brit Insurance, FTSE 250-Listed, Insurance Group, London, London Market, Netherlands, Apollo Global Management, CVC Capital Partners, Lloyd’s, Mark Cloutier.


CVC Capital Lifts $3B for Its Fourth Asian Fund

CVC Capital Partners, a private equity firm with approximately US$46 billion in funds focused on management buyouts, has lifted $3 billion for its fourth Asian fund, according to people with knowledge of the matter.

CVC expects to wrap up its fundraising efforts within the first half of this year, nine months after the firm kicked off its fundraising effort, one of the people said. The money adds to a growing pile of cash as private-equity firms around the region continue to close new funds. KKR & Co. raised a $6 billion Asia-focused fund last year, the largest private-equity fund ever raised in the region. Local players are raising large funds, too: Hong Kong-based Affinity Equity Partners recently raised $3.8 billion for its fourth fund.

CVC’s latest fundraising effort was done at a swift pace, one of the people said. TPG, for example, has been raising a new Asia fund since the latter half of 2012 and the firm doesn’t expect to close its fund until the second quarter of this year, people familiar with that fundraising process have said. TPG’s fund looks like it will end up being $3.5 billion in size, which is $500 million shy of its original target.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, CVC Capital, CVC Capital Partners, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Asia, Asian Fund, KKR, KKR & Co., Hong Kong, Affinity Equity Partners.


CVC Capital Partners Closes Skrill Buyout

CVC Capital Partners has completed its acquisition of a controlling stake in Skrill Group, one of Europe’s leading online payments companies, from a consortium of investors led by Investcorp, which remains as a shareholder.

Founded in 2001 and with operations across Europe and in the US, Skrill is among the world’s largest providers of digital wallet technology, with 36 million account holders and revenues of over EUR220m in 2013.

Using Skrill, customers can make mobile and online payments conveniently and securely, without revealing personal financial data. It also provides a safe way to send and receive money instantly, online.

Skrill’s worldwide payment network offers businesses access to direct payment processing via 100 payment options in 200 countries and in over 40 currencies, through just one integration. Also part of Skrill Group is paysafecard, a prepaid payment card that can be bought from one of 450,000 sales outlets across Europe and used to make safe online payments, without a bank account or credit card, at 4,000 participating online outlets.

Source: PrivateEquityWire

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, CVC Capital, CVC Capital Partners, Skrill Group, Europe, Online Payment Company, Investcorp, US, Paysafecard.


CVC Capital is the Number One to Spend on Leveraged Buyout

Topping the American adversaries Apollo Global Management and Carlyle Group, a London-headquartered private equity firm with approximately US$46 billion in funds CVC Capital Partners, is the giant to spend on leveraged buyouts, as the industry prepares for an acceleration of deals in 2014.

The Luxembourg-headquartered fund manager, whose main office is in London, has an estimated $20bn of “dry powder” – unspent commitments from investors – according to data compiled by Preqin, the research company, in its annual report.

The sum includes €10.75bn raised last year for European and US deals, $2bn amassed for Asian investments and older commitments yet to be spent from the group’s previous flagship European fund, raised in 2008. Buyout houses have typically five to six years to invest cash that investors commit. If they fail to do so, they have to return it or seek an extension.

Private equity dry powder is piling up again after four years of decline following the financial crisis, when cash-constrained investors reduced new commitments. Preqin estimates the total cash available for leveraged buyouts globally surged to nearly $400bn last year, from $354bn in 2012, even though dealmakers found it hard to unearth bargains as stock markets reached all-time highs. After adding in other types of funds, targeting real estate, credit, infrastructure and venture capital, “dry powder” stands at a record $1.07tn.

Source: Financial Times

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Apollo Global Management, Carlyle Group, American Private Equity, London Private Equity, UK Private Equity, CVC Capital Partners, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Luxembourg, Preqin, Europe, Asia, Asian Investments, European Fund.


CVC Capital Backs China Education Company EIC Group with $200M

Actis Capital LLP, a private equity firm focused on investments in emerging markets, has sold $200 million shares in China education company EIC Group to its private equity rival CVC Capital Partners, two sources told Reuters.

The deal will give CVC Capital a substantial stake and a greater level of management control over EIC than Actis had, the sources said, without disclosing the exact stake CVC would own.

EIC, which specialises in providing coaching services to students in China seeking an overseas education, becomes the latest in a series of China buyouts where business owners have sold their shares to give more control to incoming investors.

The trend is fuelled by lengthy waits to get to a public listing in China, where the securities regulator has lifted a freeze on IPOs this month after a 15-month hiatus.

Actis and EIC did not respond to request for comments. CVC declined to comment. Sources declined to be named as the deal was not public.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Actis Capital LLP, Actis, China Education Company, EIC Group, CVC, CVC Capital Partners, China Buyout, China, IPOs.


CVC Capital Sells Minority Stake in Danish Matas

Matas, a Denmark-based beauty retailer, announced that CVC Capital Partners, a private equity firm with nearly $46 billion in funds focused on management buyouts, has sold 19.4 percent stake in the company.

CVC paid 5.2 billion crowns for a 66 percent stake in Matas in 2007. On Friday it sold 7,918,186 shares at 150 crowns per share, up 30 percent from the price when Matas was listed on the Copenhagen Stock Exchange in June.

Carnegie, Morgan Stanley and Nordea acted as joint bookrunners on Friday’s transaction.

By 0818 GMT, shares in the company were up 3.3 percent at 155.50 crowns, against a 0.2 percent rise for the Danish benchmark index.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Matas, Denmark, Beauty Retailer, CVC, CVC Capital Partners, Copenhagen Stock Exchange, Carnegie, Morgan Stanley, Nordea.


Travelex Stake Up for Sale

One of Europe’s biggest private equity firms Apax, announced it has been approached over a potential sale of the foreign exchange business Travelex, in a deal that could fetch as much as £1 billion.

Apax Partners, the London-based buyout house, had hired JPMorgan, Goldman Sachs and Rothschild to prepare for an exit, which would probably take the form of an initial public offering, two people with knowledge of the decision said.

The UK-based company was estimated to be valued at about £1bn including debt, they said.

Buoyed by rising equity markets, private equity fund managers have been screening their portfolios to see which companies they could list to return cash to their investors, as they seek to catch up with years of relatively weak distributions following the financial crisis.

The London Stock Exchange experienced a flurry of flotations last year, including theme park operator Merlin Entertainments, backed by Blackstone and CVC Capital Partners, and Terra Firma’s wind farm operator Infinis. The same trend has been observed in the US, where Blackstone listed hotel group Hilton, as well as in continental Europe, where Carlyle and Eurazeo floated Moncler, the Italian luxury ski jacket designer at the end of last year.

Source: Financial Times

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Europe Private Equity, Apax, Apax Partners, Foreign Exchange Business, Travelex, London, JPMorgan, Goldman Sachs, Rothschild, Initial Public Offering, IPO, UK, London Stock Exchange, Merlin Entertainments, Blackstone, CVC Capital Partners, Terra Firma, Infinis, US, Hilton, Carlyle, Eurazeo, Moncler.


CVC Capital Raises $2 Billion for Asia Fund

CVC Capital Partners, a private equity firm with approximately US$46 billion in funds, had a first close for its fourth Asian fund, lifting the amount of $2 billion from investors for what should eventually end up being a $3.5 billion fund.

Private-equity firms typically raise money in stages, also known as “closes” on a fund. CVC expects to wrap up fundraising early next year, with the aim of bringing in $3.3 billion from investors and the rest from internal contributions, the people said. The fundraising—which comes as private-equity firms have raised billions for Asia investments, most of it unspent—is the latest success for CVC in the Asian-Pacific region after a high-profile loss in Australia last year.

CVC doesn’t have a foothold in India or Australia anymore and has instead focused on investing in Southeast Asia and Greater China, people familiar with the company say.

CVC successfully exited Indonesian retailer Matahari Department Store at a multiple of around 27 times this year’s expected earnings, and raised around $1.3 billion earlier this year. The firm has made investments this year in the Philippines, where it bought outsourcing firm SPi Global Holdings Inc. for around $300 million, and Malaysia, where it took private fast-food operators QSR Brands and KFC Holdings in January with Employees Provident Fund Board and Johor Corp.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, CVC, CVC Capital Partners, Asian Fund, Asia Investments, Asian-Pacific Region, Australia, Southeast Asia, Greater China, Matahari Department Store, Philippines, SPi Global Holdings Inc., Malaysia, QSR Brands, KFC Holdings, Johor Corp.


Buyout Firm CVC Exits Pilot Travel Centers

CVC Capital Partners, a London-based leveraged buyout firm, told investors that is planning to sell its stake in Pilot Travel Centers to the American gas station operator’s majority owner.

CVC, Europe’s largest leveraged-buyout firm, may sell its remaining 20 percent stake in Pilot in two stages in January 2015 and June 2017 to the Haslam family’s Pilot Corp. (7846), according to a filing to investors seen by Bloomberg News. Jimmy Haslam, who as well as owning the Cleveland Browns is Pilot Travel’s chief executive officer, didn’t immediately return a telephone call to his office seeking comment.

The private-equity firm expects the stakes will be valued at about seven times Pilot Travel’s average earnings over the previous two years, said two people with knowledge of the matter, who asked not to be identified because the information isn’t public. Based on the gas stations’ current performance, the value of CVC’s holding would be more than $2 billion, one of the people said.

Source: Bloomberg News

 

Tags: Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Private Equity, Private Equity Firm, Private Equity Fund, London Private Equity, London Buyout Firm, CVC, CVC Capital Partners, Pilot Travel Centers, American Gas Station, US Gas Station, Europe, Europe Buyout Firm, Pilot Corp., Jimmy Haslam, Cleveland Browns.


Ireland’s National Pension Reserve Fund Seek Buyer for Private Equity Portfolio

Ireland’s National Pension Reserve Fund (NPRF), a public pension fund established by the Republic of Ireland, is looking for a buyer for its private equity investments, according to report.

The stake sale, which includes interests in funds managed by TPG Capital, CVC Capital Partners and Providence Equity Partners, among others, is expected to wrap up by year end, said the people, who added that there is a chance it could spill into 2014. The sale doesn’t include positions in Irish-focused funds.

Swiss bank UBS is managing the sale, said the people, who added initial bids for the assets were due this week.

A spokesman for the pension system declined to comment on the deal but did say any secondary market sales undertaken by NPRF “would be subject to an acceptable price being achieved”.

The portfolio’s size and the pension fund’s desire for a single buyer would likely preclude all but the largest secondary buyers from bidding. Firms that could potentially be interested in the portfolio include Axa spinout Ardian, AlpInvest Partners, Coller Capital and Lexington Partners, said the people.

One person familiar with the matter said Pantheon also expressed interest in the assets, while two others said the sale attracted the interest of at least one sovereign wealth fund.

Source: Financial News

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, National Pension Reserve Fund, NPRF, Ireland, Republic of Ireland, TPG Capital, CVC Capital Partners, Providence Equity Partners, Swiss Bank, UBS, Axa, Ardian, AlpInvest Partners, Coller Capital, Lexington Partners, Pantheon.


CVC Capital Sells Remaining Stakes in bpost

One of the world’s leading private equity and investment advisory firms CVC Capital Partners has departed Belgium’s incumbent and leading postal operator bpost with the sale of 19.7 percent stake in postal group for a total cash consideration of €580 million ($798.74 million).

CVC sold 39.33 million shares at 14.75 euros a piece, slightly below the price of 15.24 euros the shares traded at when they were suspended on Tuesday.

The firm had already disposed of a large stake in the Belgian postal service in June, when it conducted an initial public offering on the Brussels exchange at 14.50 euros per share.

The Belgian state continues to be the majority owner of the group, holding a stake of 50.01 percent.

Nomura International and UBS Ltd were the joint bookrunners and KBC Securities the lead manager of the deal.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, World’s Leading Private Equity, Investment Advisory Firm, CVC, CVC Capital Partners, Belgium, Leading Postal Operator, bpost, Postal Group, Initial Public Offering, IPO, Brussels, Nomura International, UBS Ltd., KBC Securities.


KKR, Bain Bid for $1.6B Tyco’s South Korea Unit

Private equity firms such as KKR & Co LP and Bain Capital are among suitors which have placed initial bids for Tyco International Inc’s South Korean security systems unit.

Billion-dollar buyouts are rare in Asia, but security companies, when they come up for sale, tend to attract much interest from private equity firms as they are valued for their stable revenues.

A sale of ADT Caps, would follow Bain’s $3.4 billion purchase of European security firm Securitas Direct in 2011 and Blackstone Group’s (BX.N) acquisition of U.S. firm Vivint Inc for more than $2 billion last year.

Other bidders for ADT Caps include CVC Capital Partners CVC.UL as well as Hong Kong-based Affinity Equity Partners and South Korea’s MBK Partners, the sources said, declining to be identified as the process is confidential.

KKR, Bain, CVC and MBK declined to comment. Tyco and Affinity did not respond to emails seeking comment.

Morgan Stanley (MS.N) is advising Tyco on the sale, the sources said. Morgan Stanley declined to comment.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, KKR, KKR & Co LP, Bain Capital, Tyco International Inc, South Korean Security Systems Unit, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, ADT Caps, European Security Firm, Securitas Direct, Blackstone Group, Vivint Inc, CVC Capital Partners, Hong Kong, MBK Partners, Morgan Stanley.


Chris Bown Private Equity House CVC

Chris Bown, Freshfields Bruckhaus Deringer partner, is leaving the magic circle firm to join CVC Capital Partners, one of the world’s leading private equity and investment advisory firms.

Bown, who will retire from the firm at the end of the financial year, will join CVC as a senior adviser on 1 May in a part-time role working with the deal teams and with CVC’s existing legal function.

CVC’s legal team is headed by managing director Richard Perris, who joined the private equity house in 2005 from Clifford Chance.

Bown told The Lawyer: “I’ve had a really rewarding experience at Freshfields both personally and professionally, and I’m proud that I’ve contributed to the creation of a private equity group that’s now leading the field – it’s got an enviable client base and a long bench of top quality lawyers.

“It’s the right time for me to take on a new challenge and I can’t think of a better one than to be joining one of the most respected and successful players in the private equity industry.”

Bown is the third Freshfields heavyweight to leave the firm for a client role in a matter of months.

Source: The Lawyer

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Chris Bown, Freshfields Bruckhaus Deringer, CVC Capital Partners, Richard Perris, Clifford Chance.


Security Systems Tyco Intl Negotiates Korea’s Unit

Tyco International Ltd., a Swiss security systems company incorporated, has approached private equity firms offering to sell its Korean security unit Caps Co., people familiar with knowledge of the matter told WSJ.

Tyco disseminated an information memorandum only to a small number of private-equity firms as it seeks to proceed with the sale quietly, two of the people said.

Morgan Stanley, Tyco’s adviser for the potential deal, approached Seoul-based private equity MBK Partners, The Carlyle Group and CVC Capital Partners, the people said. MBK named Goldman Sachs as its adviser, one of the people said. Neither Carlyle nor CVC are known to have sought advisers.

While the value of the deal is unclear, one possible gauge would be to compare Caps’ valuation to that of domestic rival S-1 Corp., which is trading at 9 to 9.5 times earnings before interest, tax, depreciation and amortization, according to an investment banker in Seoul.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Tyco, Tyco International Ltd., Swiss, Security Systems Company, Korean Security Unit, Caps Co., Morgan Stanley, Seoul, Seoul Private Equity, MBK Partners, The Carlyle Group, CVC Capital Partners, Goldman Sachs.


South Beauty Offloads its Stake

China restaurant chain South Beauty Investment Co Ltd is planning to sell majority stake for about $300 million to one of the world’s leading private equity and investment advisory firms CVC Capital Partners.

A deal to buy South Beauty, which sells mainly Sichuan cuisine, would be the latest private equity acquisition of a restaurant chain in China, as choppy public markets in Hong Kong and tighter credit conditions push company owners to exit through M&A deals.

Under the deal being discussed, CVC is buying 69 percent of South Beauty, while the restaurant chain’s founder, Zhang Lan will own a 31 percent stake, Basis Point reported citing sources on Tuesday.

CVC has hired Bank of America Corp as an advisor, and the bank is arranging loan financing of $140 million to back the acquisition of Beijing-headquartered South Beauty, Basis Point reported.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, CVC, CVC Capital Partners, China Restaurant, China Restaurant Chain, South Beauty Investment Co Ltd, South Beauty, Sichuan Cuisine, China, Asia, Hong Kong, Zhang Lan, Basis Point, Bank of America Corp, Beijing.


Foreign Private Equity to Acquire Majority Stake in China’s South Beauty

One of the world’s leading private equity firm with approximately $46 billion in funds CVC Capital Partners is in advanced talks to purchase majority stake in high-end China restaurant chain South Beauty Investment Co Ltd for around $300 million, sources told Reuters.

South Beauty, which operates high-end restaurants that cater to China’s business and political elite, had previously hired banks for a Hong Kong IPO worth as much as $200 million that had been planned for this year.

A successful deal would also be the latest in a string of stake acquisitions in Chinese restaurant chains by foreign private equity.

Owners of China’s small and medium sized companies prefer to exit their investments through IPOs, which tend to generate higher returns.

But stricter regulations for offerings in China, a choppy public market in Hong Kong and tighter credit conditions are helping private equity firms, which are unable to exit minority stakes through public listings, convince owners to give up control, sources have said.

Under the deal being discussed, CVC is buying 69 percent of South Beauty while the restaurant chain’s founder Zhang Lan will own a 31 percent stake, Basis Point, a Thomson Reuters publication, reported on Tuesday. Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, London Private Equity, UK Private Equity, British Private Equity, CVC, CVC Capital Partners, China Restaurant Chain, South Beauty Investment Co Ltd, Foreign Private Equity, Hong Kong IPO, IPO, Medium Sized Companies, Small Sized Companies, Hong Kong, Zhang Lan, Basis Point, Thomson Reuters, Reuters.


Terra Firma Launching £1B Infinis IPO

In a comeback signal to prospective new investors an English financier and investor Guy Hands launched a £1bn float of Infinis, a British wind power company.

Infinis, owned by Mr Hands’ Terra Firma private equity firm, is the latest private equity-backed company seeking to tap markets inflated by last week’s agreement on the US debt ceiling.

Private equity groups in Europe are accelerating plans to list their portfolio companies and return cash to their investors on deals done before the financial crisis. They are hoping to replicate the stellar offerings of London estate agent Foxtons, owned by BC Partners, and Royal Mail, which were both strongly oversubscribed.

Merlin Entertainment, the UK-based theme park operator backed by Blackstone and CVC Capital Partners, also announced its intention to float on Monday.

The company is expected to achieve a minimum free float of 30 per cent following the flotation.

Infinis owns a portfolio of 147 power generating plants distributed across the UK, including gas generators, an onshore wind business and a hydro operation. The group has approximately 360 employees. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Guy Hands, Terra Firma, London, Foxtons, BC Partners, Royal Mail, Merlin Entertainment, Blackstone, CVC Capital Partners, UK, England.


Alfred Gusenbauer Raises Cudos Capital

Ex-Austrian chancellor who spoke out against European buyout firm CVC Capital Partners’ proposed takeover of a local steel producer during his time in office Alfred Gusenbauer is successfully launching his own private equity fund, according to two people familiar with the matter.

Vienna-based Cudos Capital, which Gusenbauer co-founded two years ago, has reached a first closing for its first institutional fund, according to a person familiar with the situation.

The fund hopes to attract total commitments of €150 million to invest in mid-market buyouts, restructurings and growth equity deals in the surrounding region, another person added.

Gusenbauer, who led the Social Democratic Party of Austria until August 2008 and served as Chancellor between January 2007 and December 2008, waded into the battle over private equity ownership of large public companies in March 2007, when he was quoted as saying it would be a “catastrophe” if CVC Capital Partners acquired Austrian steelmaker Böhler-Uddeholm. The bid ultimately failed. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Austrian Chancellor, CVC Capital Partners, European Buyout, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Alfred Gusenbauer, Vienna, Cudos Capital, Social Democratic Party of Austria, Böhler-Uddeholm.


Private Equity Firm CVC Turns Evolution into Progression

One of the world’s leading private equity and investment advisory firms CVC Capital Partners (CVC) has gone from strength to strength in the wake of Chairman Michael Smith’s exit.

When Michael Smith, the chairman of London-based private equity group CVC Capital Partners, stepped down last fall, he managed to do something simple that many financial firms have failed to do in the past: He successfully navigated his succession.

Succession has been a problematic issue at other financial firms, and private equity firms are no different. There is constant speculation about who will eventually take over at Blackstone from Steve Schwarzman and Hamilton James, and Apax Partners chief executive Martin Halusa is staying on past the firm’s normal retirement age of 60 to see the latest fund through its investment phase. Meanwhile, at Charterhouse Capital Partners, a tussle for leadership among senior partners saw a favourite for the top post rejected and another leave the firm. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Private Equity Firm, London Private Equity Group, World’s Leading Private Equity Firm, CVC, CVC Capital Partners, CVC, Michael Smith, Blackstone, The Blackstone Group L.P., Steve Schwarzman, Hamilton James, Apax Partners, Martin Halusa, Charterhouse Capital Partners.


Bahrain Investcorp to Sell Skrill Group to CVC Capital for €600M

Bahrain-based leading provider and manager of alternative investment products Investcorp announced that it had decided to sell British online payments services firm Skrill Group to one of the world’s leading private equity and investment advisory firms CVC Capital Partners for a total cash consideration of €600 million ($800 million).

As part of the deal, Investcorp will keep a “substantial” minority position in the company and retain a seat on Skrill’s board, the company said in an emailed statement. It did not elaborate on the size of the stake.

Investcorp Technology Partners, the private equity firm’s technology arm, bought Skrill, or Moneybookers as it was formerly called, for 105 million euros in March 2007, according to Thomson Reuters LPC data.

At the time of the acquisition, Skrill generated revenues of 7.8 million euros and earnings before interest, taxes, depreciation and amortisation of 3.7 million euros. It now employs about 700 people and in 2012, generated over 200 million euros in revenues and 50 million euros in EBITDA, Investcorp said. Source

 

Tags: Private Equity, Private Equity firm, Private Equity fund, Private Equity fund, Private Equity Company, Private Equity management, Bahrain Private Equity, Bahrain, Kingdom of Bahrain, Investcorp, British, Britain, UK, Skrill Group, CVC Capital Partners, Investcorp Technology Partners, Moneybookers, Thomson Reuters LPC.


Advent International Sells Domestic & General to a Private Equity Competitor CVC for $1.2B

A leading global private equity firm Advent International Corp. has agreed to sell Domestic & General to its competitor Europe’s largest private equity firm CVC Capital Partners for a total cash consideration of £750 million ($1.2 billion).

Domestic & General’s management will retain a stake in the business, London-based CVC and Boston-based Advent said in e-mailed statements today, without disclosing a purchase price.

CVC is paying 750 million pounds ($1.2 billion) for Domestic & General, according to two people with knowledge of the transaction, who asked not to be identified because the information is private. Advent initially sought as much as 1 billion pounds for the Bedworth, England-based company, three people with knowledge of the matter said last month, and was considering paying itself a special dividend if talks with CVC and other potential buyers collapsed.

Advent paid 524 million pounds in 2007 for 101-year-old Domestic & General, which works with appliance makers and sellers to provide extended warranties and is expanding outside the U.K. Earnings before interest, taxes, depreciation, and amortization doubled to 83 million pounds in fiscal 2013 from 41 million pounds in fiscal 2008, and the company’s sales are 600 million pounds a year, Advent said.

“We are very pleased to be investing to acquire D&G alongside management,” Pev Hooper and Peter Rutland, a partner and senior managing director at CVC respectively, said in the firm’s statement. “We look forward to working with them and using CVC’s international resources to help take D&G to the next stage of its development.” Source

 

Tags: Private Equity, Private Equity firm, Private Equity fund, Private Equity Company, European Private Equity, Global Private Equity firm, Advent International Corp., Domestic & General, D&G, CVC Capital Partners, London, UK, London CVC, Boston, Massachusetts, MA, CVC, Bedworth, England, Pev Hooper, Peter Rutland.


CVC Capital Partners Agrees to Acquire Domestic & General for $1.2 Billion

One of the world’s leading private equity and investment advisory firms CVC Capital Partners, has agreed to acquire for a total cash consideration of $1.2 billion an extended warranty company Domestic & General from the American global private equity firm Advent International.

The terms of the deal were not disclosed, but CVC Capital is understood to have paid around £750 million ($1.2 billion), according to a person with direct knowledge of the matter.

The deal is the latest sale of a company by one private equity firm to another, as other potential options like initial public offerings and disposals to corporate buyers remain difficult because of the financial crisis.

So far this year, European acquisitions by private equity buyers represent 59 percent, or $26 billion, of the total combined value of deals done by private equity sellers, according to the data provider Preqin.

CVC Capital will acquire Domestic and General, which Advent bought for £524 million in 2007 at the beginning of the financial crisis.

Domestic and General has been expanding internationally into Continental Europe, Australia and New Zealand; about a quarter of its annual revenue of £600 million comes from its operations outside of Britain. Source

 

Tags: Private Equity, Private Equity firm, Private Equity fund, Private Equity Company, Investment Advisory Firm, CVC Capital, CVC Capital Partners, Extended Warranty Company, Domestic and General, Advent International, European Private Equity, European Private Equity buyers, Private Equity sellers, European Private Equity sellers, Preqin, Continental Europe, Australia, New Zealand.


Private Equity to Buy Campbell Soup

One of the world’s leading private equity and investment advisory firms CVC Capital Partners is planning to buy some of the Campbell Soup Company’s actions in Europe.

Under the terms of the deal, CVC would acquire a number of brands in France, Germany, Sweden and Belgium, as well as four factories in Europe, according to a company statement. Campbell Soup would retain its businesses in Britain and Denmark.

The terms of the deal were not disclosed, though Campbell Soup said the combined revenue from the European businesses being sold was $530 million for the 12 months ended April 30.

Campbell Soup said it expected the deal to be completed by the first quarter of 2014.

The sale of some of its European operations comes after a number of acquisitions by Campbell Soup, as it looks for new markets.

Last year, Campbell Soup bought Bolthouse Farms from the private equity firm Madison Dearborn Partners for $1.55 billion in Campbell’s largest deal to date.

Allen & Overy advised Campbell Soup on the deal, while Leopold Capital Partners, Barclays, Cleary Gottlieb Steen & Hamilton and Ernst & Young advised CVC Capital Partners. Source

 

Tags: Private Equity, Private Equity Company, Private Equity firm, Private Equity fund, Private Equity investment, Europe, Europe Private Equity, Campbell Soup, CVC Capital Partners, France, Germany, Sweden, Belgium, Britain, UK, Denmark, European Business, Bolthouse Farms, Madison Dearborn Partners, Allen & Overy, Leopold Capital Partners, Barclays, Cleary Gottlieb Steen & Hamilton, Ernst & Young.


Meiji Yasuda Outperform Private Equity Companies in the Race to Hold Shares of Thai Life Insurance

Meiji Yasuda Life Insurance Co. has announced that it has agreed to buy a 15% stake in Thai Life Insurance Co. The publication came within the company’s efforts to step up their position in Southeast Asia.

The announcement confirms that Meiji Yasuda had beaten private equity firms such as KKR & Co., CVC Capital Partners, and Carlyle Group LP in the bid to own the 15% stake in Thai Life.

Meiji Yasuda also beaten Sumitomo Life Insurance Co to enter final discussions in the bid for Thai Life’s shares.

Media reports in June said that Meiji Yasuda would probably have pay approximately US$700 million for the 15% share. The official terms and financial specifics of the transaction, however, were not disclosed.

Meiji Yasuda’s acquisition is the fourth financial institution buyout by a Japanese firm in Southeast Asia this year. The year-to-date total value of all Japanese mergers and acquisitions deals in the region have now risen to around US$6.6 billion.

Thai Life confirmed that they were advised by Barclays on the deal. J.P. Morgan, on the otherhand, advised Meiji during the transaction. Source

 

Tags: Private Equity, Private Equity company, Private Equity Fund, Meiji Yasuda Life Insurance Co., Shares, Shareholders, Southeast Asia, KKR & Co., CVC Capital Partners, Carlyle Group LP, Stake, Thai Life, Sumitomo Life Insurance Co, Buyout, Leveraged Buyout, Japanese firm, Barclays, J.P. Morgan.


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