Private equity posts
FeedPosted Feb 23rd 2011 11:00AM by Tom Taulli (RSS feed)
Filed under: Earnings Reports, Private Equity
Only a year ago, the belief was that the private equity world was doomed. But as is common in the financial markets, this was big exaggeration. If anything, private equity firms have shown that they can adapt quite well.
Just look at KKR (KKR). In its latest quarter, the company posted a profit of $180.6 million or $0.86 per share. The consensus estimate was for $0.42 per share.
But private equity firms like to point to another metric: economic net income, which focuses on fees and gains from investments. This came to $714.6 million in the quarter. Yes, the private equity game can be wildly profitable.
Continue reading KKR Gets Its Groove Back
Posted Feb 7th 2011 10:00AM by Tom Taulli (RSS feed)
Filed under: Deals, Private Equity
Betting on the outcome of a buyout is no easy feat. Will there be a heated auction? Or will the bidders have doubts and want price concessions?
The result is often much volatility. Just look at Beckman Coulter (BEC), a top medical diagnostic instruments company. In early December, the company put itself up for sale and the stock price surged to $72. Since then, the shares have traded in band of $71 to $75.
Continue reading Danaher Shells Out $6.8 Billion for Beckman Coulter
Posted Jan 3rd 2011 11:20AM by Tom Taulli (RSS feed)
Filed under: Deals, Private Equity, Blackstone Group L.P (BX), Initial Public Offerings
Since early September, shares of the major private equity firms Blackstone Group (BX) and KKR & Co. (KKR) have seen strong gains. Of course, part of the reason has been the bull move. But at the same time, the prospects for private equity are looking brighter. In fact, the upcoming year is shaping up to be strong for public offerings.
According to a report from Bloomberg.com, it looks like private-equity backed deals will account for roughly half the volume. And they will generally be massive transactions. Some that are on deck include HCA Holdings, Nielsen Holdings and Kinder Morgan.
Continue reading Blackstone, KKR Get Ready for Mega IPOs
Posted Dec 10th 2010 2:15PM by Tom Taulli (RSS feed)
Filed under: Private Equity
Beckman Coulter (BEC), a top medical diagnostic instruments company, has been public over 20 years. But it looks like its days of independence may soon be over. According to a report in the Wall Street Journal, Beckman is in the process of selling itself. So far in today's trading, the shares are up 27% to $72.57, with the market cap at about $5 billion.
Beckman's products span many categories like biomedical testing and lab automation. The installed base is roughly 200,000. In fact, a large portion of the revenues come from recurring sources (such as refilling supplies for the machines). In other words, Beckman has sturdy cash flow stream.
Continue reading Is Beckman Coulter Buyout Bait?
Posted Nov 23rd 2010 11:00AM by Mark Fightmaster (RSS feed)
Filed under: Rumors, Private Equity
J. Crew Group (JCG) was nearly 17% higher Tuesday morning thanks to rumors of a potential buyout.
The Wall Street Journal (subscription required) reported that a pair of private equity firms are closing in on a deal to purchase J. Crew for $43.50 per share cash, or $3 billion. One of the potential new owners is TPG Capital, a former owner of the company. TPG would hold a 75% stake in the company, with LA-based Leonard Green & Partners owning the remaining 25%. TPG previously owned an 88% stake in JCG in 1997.
Continue reading J. Crew Rallies on Buyout Rumors
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 Sep 1st 2010 11:20AM by Tom Taulli (RSS feed)
Filed under: Private Equity, Burger King Hldgs (BKC)
Back in 2002, Burger King (BKC) went private in a $1.5 billion deal (at the time, the food chain was owned by Diageo PLC). Then in 2006, the company came back to the public markets, providing a nice return for the private equity sponsors, which included TPG Capital, Goldman Sachs Capital Partners and Bain Capital.
OK, so how about going private again? Actually, this is the latest rumor making the rounds. Although, it sounds like the negotiations are in the early stages.
Continue reading Burger King Looking for a Buyout?
Posted Jul 15th 2010 9:30AM by Nikhil Hutheesing (RSS feed)
Filed under: Hilary On Stocks, Bargain Stocks, Chasing Value™, Stocks to Buy, Best Stocks for 2010

There are many financial industry stocks that some investors think could be good plays for a rebounding market, such as JPMorgan Chase & Co. (
JPM), Goldman Sachs Group, Inc. (
GS) and Morgan Stanley (
MS).
But Hilary Kramer,
editor of GameChangerStocks.com, says that if you can only buy one stock in this sector, it should be in shares of private equity firm Fortress Investment Group (
FIG).
Continue reading One Stock to Play the Financial Industry's Comeback
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 Jun 1st 2010 12:00PM by Mark Fightmaster (RSS feed)
Filed under: Rumors, Private Equity, Best Buy (BBY), RadioShack Corp (RSH)
Several takeover rumors cropped up this morning. One of those is that RadioShack (RSH) is in the sights of many possible suitors. Those suitors include Blackstone Group (BX), Kohlberg Kravis Roberts, Bain Capital, TPG, and potentially Best Buy (BBY).
These rumors had the shares trading higher this morning, which is really a continuation of RSH's longer-term trend. Since March 2009, RSH has trekked steadily higher, overtaking the 10-month moving average in the process. That said, the stock is stuck just below the $23 level.
Continue reading Is RadioShack Ready for a Takeover?
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