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Today, Jacuzzi Brands, Inc. (NYSE: JJZ) closed its deal to be bought-out by Apollo Management for roughly $1.25 billion. Yes, by the end of trading, the company will no longer trade on the New York Stock Exchange.

True, the company has a set of strong brands (like Zurn and Sundance Spas). Yet, the housing slump has taken its toll. What's more, the volatility in commodity prices has not helped.

As a private company, Jacuzzi will be able to make some changes, such as reducing overhead and even outsourcing manufacturing.

The company has been trying to sell itself since late 2004. But, there was not much interest -- all in all, Apollo's valuation of 9.6X EBITDA does seem fair.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Jacuzzi Brands: cheap, but fair private equity valuation originally appeared on BloggingStocks on Wed, 07 Feb 2007 15:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Apollo ManagementApolloManagementjacuzziJacuzzi BrandsJacuzziBrandsjjzprivate equityPrivateEquityspassundancesundance spasSundanceSpasvaluationzurnWed, 07 Feb 2007 15:57:00 EST<![CDATA[Jacuzzi: Private equity jumps in hot tub for $990 million]]>http://www.bloggingstocks.com/2006/10/11/jacuzzi-private-equity-jumps-in-hot-tub-for-990-million/http://www.bloggingstocks.com/2006/10/11/jacuzzi-private-equity-jumps-in-hot-tub-for-990-million/http://www.bloggingstocks.com/2006/10/11/jacuzzi-private-equity-jumps-in-hot-tub-for-990-million/#commentsFiled under: ,

jacuzzi

Over the past few years, the stock price of Jacuzzi (NYSE: JJZ) has been stuck in a trading range of about $8 to $10. It has certainly been frustrating and, as a result, the company decided to go private - with the help of the private equity firm, Apollo Management LP.

The offer is for $12.50. Actually, this is still below Jacuzzi's 52-week high of $12.56. The total value of the deal comes to about $990 million -- which is actually a fairly small deal compared to recent blockbusters, such as HCA and Freescale.

Jacuzzi has been undergoing a restructuring, which is starting to show results. This should set the stage for a strong 2007.

Also, another big attraction is the company's brand. Actually, it was the Jacuzzi brothers who started the company in the early 1990s. And, over the years, the company has been able to acquire over 200 patents on its innovations.

In other words, there is stability with Jacuzzi, which is key with private equity. Basically, this looks like a pretty easy deal to get done.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Jacuzzi: Private equity jumps in hot tub for $990 million originally appeared on BloggingStocks on Wed, 11 Oct 2006 22:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Apollo GroupApolloGroupGoing PrivateGoingPrivateJacuzziWed, 11 Oct 2006 22:44:00 EST