Bain Capital posts
FeedPosted Jan 27th 2011 9:00AM by Paul Foster (RSS feed)
Filed under: PepsiCo (PEP), Private Equity, Sara Lee Corp (SLE), Options
Sara Lee (SLE) has rejected an offer from a group of private-equity firms that includes Bain Capital, Apollo Management and TPG Capital, the New York Post reports. Overall option implied volatility of 20 is below its 26-week average of 24, according to Track Data, suggesting decreasing price movement.
PepsiCo (PEP) is expected to report Q4 EPS on February 10. Overall option implied volatility of 17 is near its 26-week average, according to Track Data, suggesting nondirectional near-term price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jan 24th 2011 11:30AM by Tom Taulli (RSS feed)
Filed under: Private Equity, Sara Lee Corp (SLE), Blackstone Group L.P (BX)
As the economy rebounds and credit markets warm up again, it looks like private equity firms are going back to work -- on big deals. According to Bloomberg.com, Apollo Global Management is prepared to offer $12 billion for Sara Lee (SLE). The transaction would also include investor C. Dean Metropoulos -- who bought Pabst Brewing in 2010 -- as well as Bain Capital and TPG.
It looks like this is a viable offer even though a strategic buyer is interested (which often can justify a higher valuation). This is JBS SA, a beef processor based in Brazil. An acquisition would certainly have lots of synergy, creating a vertical operation. Interestingly enough, JBS may seek the help of the Blackstone Group (BX).
Continue reading Buyout Interest Heats Up for Sara Lee
Posted Oct 11th 2010 11:30AM by Mark Fightmaster (RSS feed)
Filed under: Deals, Private Equity
Early Monday morning, trading was halted on Gymboree (GYMB) after an announcement that Bain Capital Partners would acquire the children's clothing company. Reportedly, the definitive agreement calls for Bain to pay $65.40 per share for Gymboree, or $1.8 billion.
According to the terms of the agreement, Gymboree stockholders will receive $65.40 cash for each outstanding share of Gymboree common stock owned. This price is a 57.4% premium to Gymboree's share price on September 30, 2010 -- the date that takeover rumors began. And the $65.40 is a 23.5% premium over Friday's closing price of $52.95.
Continue reading Bain Capital to Acquire Gymboree
Posted Jul 2nd 2010 5:30PM by Wade Hansen (RSS feed)
Filed under: Private Equity, Best Buy (BBY), RadioShack Corp (RSH)

You may be interested in buying an HDMI cable or a cell phone from RadioShack (
RSH), but it looks like a few private equity companies and one competitor may be interested in buying the entire company. According to dealReporter, RadioShack had set a July 1 deadline for non-binding indications of interest from any company that was looking at buying the company.
Analysts are speculating that the same private equity companies that were mentioned in a June 1
New York Post article -- Blackstone Group, Kohlberg Kravis Roberts, Bain Capital and TPG -- might still be interested in the consumer electronic retailer. That same article also mentioned that Best Buy Co., Inc. (
BBY) may be interested in clearing the competitive landscape by acquiring RadioShack.
Continue reading Radio Shack: Takeover or Acquisition Target
Posted May 30th 2010 11:00AM by Gary Sattler (RSS feed)
Filed under: Products and Services, KKR Financial (KFN), Initial Public Offerings

On Friday, Toys 'R' Us
filed documents with the Securities and Exchange Commission to go public in the New York Stock Exchange under the ticker symbol "TOYS." The IPO could raise
as much as $800 million. Toys 'R' Us was purchased by Kohlberg Kravis Roberts (
KFN), Bain Capital, and Vornado Realty Trust (
VNO), for a price of $6.6 billion in 2005. Now, the consortium would like to realize some profit from that transaction.
Since the company was purchased, Toys 'R' Us
has pursued a buying spree to improve its market position and enlarge its footprint. The company purchased FAO Schwarz in 2009, and has also bought a smattering of e-commerce websites in efforts to enlarge its market reach. Unfortunately, this strategy has left the company with an extremely unwieldy debt load. Indications are that a portion of the proceeds from the sale of stock shall be used to reduce the company's debt portfolio.Continue reading Have the Nerve for a Toys 'R' Us IPO?
Posted Mar 1st 2010 3:10PM by Tom Johansmeyer (RSS feed)
Filed under: Private Equity, KKR Financial (KFN), Blackstone Group L.P (BX)

If you're looking to buy into an upswing post-recession, it doesn't look like the private equity market will be on your list. Valuations didn't fall as much as you might think, meaning that
the bargains you usually find during a downturn just aren't showing up this time.
In the
leveraged buyout market, prices were around 25% higher, on average, than they were in 2001, when the dotcom economy fell apart, according to Standard & Poor's Leveraged Commentary & Data. And transactions closed in the past three months have hit heir highest levels since the
private equity market peaked in 2007.
Says Christopher O'Brien, president for U.S. and Europe of Investcorp Bank BSC, another "golden era" isn't coming.
He tells Bloomberg News, "There's a lot of pressure to put investors' money to work now, and valuations are still high. It's a seller's market."
Continue reading No Bargains in Private Equity, Unlike 2001
Posted Nov 30th 2009 9:20AM by Beth Gaston Moon (RSS feed)
Filed under: Deals, Rumors

First brewed in 1873, Beck's beer is crisp, fresh, and "full of character." It's also still part of the growing AB InBev family. Anheuser-Busch InBev, which is of course the Belgian-based parent of Anheuser-Busch (
BUD), has
abandoned plans to sell the German beer brand to Bain Capital.
According to a German magazine, citing financial sources, this was really an eleventh-hour decision, as the contracts were already drawn up and Bain had secured $2.54 billion in financing.
Continue reading AB InBev hangs on to Beck's brand
Posted Aug 22nd 2009 2:20PM by Trey Thoelcke (RSS feed)
Filed under: Wal-Mart (WMT), Starbucks (SBUX), Private Equity, Target Corp. (TGT), Initial Public Offerings
In the wake of last week's public offering of Dollar General, more IPOs are expected to be coming down the pipeline as private equity firms seek a monetary return on investments made during the boom years. Speculation is that Toys "R" Us and Dunkin' Donuts could be next.
Toys "R" Us Inc. is owned by Bain Capital, KKR, and Vornado Realty Trust (NYSE: VNO). The world's leading dedicated toy and baby products retailer was a public company from 1978 until its acquisition by the private equity consortium in July 2005 for $6.6 billion. It has more than 1,500 stores in 33 countries, and its businesses include Babies "R" Us, eToys.com, and FAO Schwarz, the latter two acquired earlier this year. Main competitors include privately owned KB Toys, as well as big-box retailers Target Corp. (NYSE: TGT) and Wal-Mart Stores Inc. (NYSE: WMT).
Continue reading Toys 'R' Us and Dunkin' Donuts in line for IPOs?
Posted Jul 19th 2008 4:40PM by Tom Taulli (RSS feed)
Filed under: General Electric (GE), Private Equity, Blackstone Group L.P (BX)
The Blackstone Group LP's (NYSE: BX) $930 million purchase of GSO Capital Partners early this year didn't get much fanfare. But so far, it looks like a stellar deal.
Simply put, GSO is a hedge fund that's focused on distressed debt. Of course, with the slowing economy, GSO is in a prime spot to capitalize on some nice opportunities.
But there is more. Basically, GSO has become a key source of buyout financing (this is according to Bloomberg.com).
For example, when the Weather Channel was up for sale, it was tough to get financing for the deal. So why not GSO?
It worked. In the end, Blackstone and Bain Capital teamed up with General Electric (NYSE: GE) to pull off the acquisition. As for GSO, it provided higher-risk mezzanine debt financing.
Of course there are issues. After all, Blackstone has a conflict. But at the same time, the financial markets are mired in a credit crunch. So, if there are essentially no alternatives, GSO is probably going to provide the best offer.
More importantly, Blackstone realizes that there are some juicy opportunities right now. Thus, by having the GSO advantage, Blackstone certainly is positioned nicely.
Tom Taulli is the author of various books, including The Complete M&A Handbook
and The Edgar Online Guide to Decoding Financial Statements
. He also operates MergerBook.com.
Posted Jul 7th 2008 10:50AM by Laurie Pasternack (RSS feed)
Filed under: Newspapers, Magazines, General Electric (GE), Citigroup Inc. (C), Goldman Sachs Group (GS), Electronic Arts (ERTS), Blackstone Group L.P (BX)
MAJOR PAPERS:
- The Financial Times reported that Bain Capital, The Blackstone Group LP (NYSE: BX) and General Electric Company's (NYSE: GE) NBC universal will acquire The Weather Channel properties from Landmark Communications for approximately $3.2B in a leveraged buy-out. The Weather Channel will be run separately.
- A top Goldman Sachs Group Inc (NYSE: GS) trader is defecting to GLG Partners Inc (NYSE: GLG), the UK's second-largest hedge fund. Goldman's Driss Ben-Brahim, a partner in the firm and the head of its emerging market trading business, will take over GLG's $1.2B emerging markets special situations fund, the Financial Times reported.
OTHER PAPERS:
WEB SITES:
Posted Jun 20th 2008 3:31PM by Tom Taulli (RSS feed)
Filed under: Private Equity, Japan
The Japanese market for buyouts is certainly alluring (basically, there is lots of opportunity to cut costs). But, it has been tough for US private equity firms to break in.
But, today there was a success: D&M Holdings Inc. agreed to a $470 tender offer from Bain Capital Partners LLC. This is according to a report in the Wall Street Journal (subscription required).
D&M sells premium and super premium audio and video products, with brands like Denon and Snell. The company got its start in 1910 and has since engaged in a variety of acquisitions, such as for McIntosh Laboratory, Allen&Heath Holdings and Boston Acoustics.
D&M does have an attractive long-term potential. After all, with the surge in wealth in Asian countries, there is likely to be strong demand for D&M products. And, with the financial backing of Bain, there are likely to be more acquisitions to enhance the D&M platform.
Tom Taulli is the author of various books, including The Complete M&A Handbook
and The Edgar Online Guide to Decoding Financial Statements
. He also operates MergerBook.com.
Posted Apr 24th 2008 7:50AM by Laurie Pasternack (RSS feed)
Filed under: Newspapers, Magazines, Citigroup Inc. (C),
MAJOR PAPERS:
- Wendy's International Inc (NYSE: WEN), struggling since the 2002 death of founder Dave Thomas, and pressed by investor Nelson Peltz to improve results, will today announce a deal with Peltz, the Wall Street Journal reported.
- The Wall Street Journal also reported that the House Financial Services Committee voted to approve $15B in loans and grants so that local governments can buy foreclosed homes throughout the U.S. Committee chairman Barney Frank said the bill will avoid abuse, including requiring that purchased homes be a minimum 60 days into the process.
- Adding to evidence of a rally in corporate credit markets, the Financial Times reported that Deutsche Bank AG (NYSE: DB) is preparing another big sell-off of its leveraged loans in Europe.
OTHER PAPERS:
- Several e-mails that have been obtained by the New York Post sent between Wall Street banks may prove a serious setback in the fight over the takeover Clear Channel Communications Inc (NYSE: CCU). The e-mails reportedly show the banks, led by Citigroup Incorporated (NYSE: C) and Deutsche Bank, looking to get out of financing the buyout by Bain Capital and THL Partners by offering terms "they know the [firms] won't be able to accept."
Posted Mar 6th 2008 5:07PM by Jonathan Berr (RSS feed)
Filed under: Deals, Television, General Electric (GE), Time Warner (TWX), Private Equity, CBS Corp 'B' (CBS), Comcast Cl'A' (CMCSA)
Whomever buys The Weather Channel will probably see nothing but blue skies.ss
According to
The New York Times' DealBook,
The Walt Disney Company (NYSE:
DIS),
CBS Corp. (NYSE:
CBS),
General Electric Company (NYSE:
GE)'s NBC,
Time Warner Inc. (NYSE:
TWX),
Comcast Corp. (NASDAQ:
CMCSA) and
Liberty Media Inc. (NASDAQ:
LINTA) are all vying to buy the Weather Channel from closely held Landmark Communication.
"Also, a handful of private equity firms, including
Bain Capital,
Providence Equity Partners and Madison Dearborn
have reportedly indicated an interest, though they are unlikely to be serious bidders because of the tight credit markets," according to the paper.
Landmark reportedly is expecting to get $5 billion for the property though bidders tell the Times that $4 billion is a more realistic figure. I would venture that the company will get the higher figure because properties like this don't often come on the market.
Not only is the cable channel one of the most lucrative, its Web site is wildly popular as well. Unlike CNN, people don't just tune in when there is big news. Energy traders hang onto the channel's every word when they make bets on the hugely volatile commodities for oil, natural gas and electricity. People also rely on the company's forecasts to plan their lives. Moreover, The Weather Channel is in a good position to benefit from the public's growing interest in global warming.
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