Blackstone reaps $3.8 billion on the Orangina deal

Posted Sep 23rd 2009 11:20AM by Tom Taulli
Filed under: Private Equity, Blackstone Group L.P (BX)

The past two years have been terrible for private equity firms. But, now we're seeing signs of life.

If fact, this week there was a liquidity event. That is, the Blackstone Group (NYSE: BX) and Lion Capital have received a binding offer to sell Orangina Schweppes to Suntory (a major Japanese drinks company). It appears that the price tag comes to $3.82 billion.

Back in the mid 1930s, Orangina got its start from a Spanish pharmacist, Dr. Trigo. He created a new drink from orange juice and pulp. It was a big hit. Now, Orangina is the number two player in the still soft drinks market in Europe, behind Coca-Cola (NYSE: KO). Last year, the company posted revenues of about $1.5 billion.

In 2006 -- at the height of the private equity boom -- Blackstone and Lion Capital purchased Orangina for $2.24 billion. The company was spun-off from Cadbury PLC.

And, given the large amount of debt in the transaction, Blackstone and Lion stand to realize a nice profit.

Early in Wednesday's trading, Blackstone's shares rose 1% to $14.85.

Tom Taulli is the author of various books, including The Complete M&A Handbook.

Tags: Blackstone, BX, Coca-Cola, inthenews, KO, Lion Capital, Orangina, private equity, Suntory