Tag Archives: Private Equity

K.K.R. Sells Last of Alliance Boots Stake

The private equity firm Kohlberg Kravis Roberts & Company said on Wednesday that it had sold off its remaining stake in the British drugstore chain Alliance Boots.

The sale follows Monday’s vote by Walgreen & Company shareholders, who approved the acquisition of the 55 percent of Alliance Boots that Walgreen did not already own. The private equity’s firms shares were sold to the holding company that has now been formed, Walgreens Boots Alliance.

In 2007, Kohlberg Kravis, along with Stefano Pessina, who was Alliance Boots deputy chairman and its largest shareholder at the time, took the British company private in a $22 billion deal — Europe’s largest ever leveraged buyout.  The private equity firm invested $1.8 billion in Alliance Boots.

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Worldwide M&A activity reaches seven-year high

During the first few months of 2014, it quickly became apparent that major companies and corporations across the U.S. were interested in expanding their operations through aggressive mergers and acquisitions. We have reported extensively on many of the most noteworthy complex transactions to be undertaken within the nation, however, it seems that just as many landmark deals have been reached outside of the country, as well.

Global transactions total more than $1 trillion in Q2
In the latest bit of M&A news, the deal volume recorded during the second three-month period of this year has amounted to more than $1 trillion, according to Reuters. This figure marks the largest deal volume observed since the same time in 2007, and represents a significant improvement from the $680 million that changed hands during the first quarter of 2014.

“Companies have strategic imperatives to do deals, they have the cash to do deals, and they can borrow additional cash at record-low rates,” Frank Aquila, a mergers and acquisitions lawyer at Sullivan & Cromwell LLP, told the news source. “It really is a bit of a perfect storm when it comes to dealmaking.”

Multiple mega deals were completed during the second quarter, including agreements between Oracle and Micros Systems, Tyson Foods and Hillshire Brands as well as Sprint and T-Mobile.

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Good year for cross-border M&A in the Middle East

“The Middle East has seen a very robust year in terms of both inbound and outbound M&A activity,” said Tom Thraya, UAE Head of Corporate/M&A for Baker&McKenzie Habib Al Mulla.”The increasing trend looks set to continue in 2015, with stable markets such as the UAE and Saudi Arabia remaining attractive to international investors. Factors such as the UAE’s increasing importance as a business hub for the Middle East and Africa, and the opening up of Saudi Arabia’s stock exchange for foreign investors in 2015, are fueling optimism for a further acceleration of M&A activity in the region.”

Data from Thomson Reuters reveals that as of 14 December 2014, the total value of Middle Eastinbound M&A activity has already surpassed 2013, increasing by 53 percent to reach USD9.5 billion. In terms of deal value, inbound acquisitions were driven by the US (49.8 percent), followed by China (10.3 percent) and Switzerland (7.1 percent). The US had the most number of transactions with 43 deals, followed by India and China, both with 8 deals.

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Deal Professionals Predict Financial Services M&A Will Soar

Dealmakers polled in mid-November expect M&A to expand significantly in the financial services, insurance, and real estate (FIRE) sector over the coming year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP), a forward-looking sentiment indicator derived from monthly surveys of approximately 250 executives published in partnership with McGladrey LLP.

The 12-month score of 87.2 for FIRE was nearly 17.5 points higher than the comparable score for overall M&A. It was also the highest 12-month score of the six fast-growth industries measured by the MMP – ahead of health care; technology, media and telecommunications; manufacuring; consumer goods and retail; and energy. Short-term expectations for the sector were also high. The three-month composite score of 79.3 for FIRE beat the overall market score of 71.0 but was lower than the three-month score of 84.1 for health care.

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Caesars Entertainment And Caesars Acquisition Soar Amid Merger News

Shares of both companies soared in pre-market trading amid the news, with Caesars Acquisition Company up over 10 percent and Caesars Entertainment up over 26 percent.

According to the joint press release, “upon completion of the merger and the proposed restructuring of Caesars Entertainment Operating Company, Inc. (CEOC), the merged company will be well capitalized and positioned for sustainable long-term growth and value creation.”

The merger will also support the proposed restructuring of CEOC, a subsidiary of Caesars Entertainment, announced on Friday, to reduce debt and lower interest payments.

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Healthcare at heart of robust year in M&A

Market wisdom has it that most takeovers destroy value in the long-run. But the world’s largest companies seem to have had little time for history lessons in 2014. In all, there were 96 deals worth more than $5bn completed over the past 12 months. Together, their value was around $1.2tn, or 37 per cent of the overall volume of corporate transactions.

Dr. Keith A. Marcus draws Allergan Inc. Botox into a syringe before administering it to a patient at the offices of Marcus Facial Plastic Surgery in Redondo Beach, California, U.S., on Tuesday, April 22, 2014. Valeant Pharmaceuticals International Inc. offered to buy Allergan Inc., maker of the Botox wrinkle treatment, in a cash-and-stock deal valued at $45.7 billion in the latest step of the Canadian company's plan to become one of the world's largest drugmakers. Photographer: Patrick T. Fallon/Bloomberg *** Local Caption *** Keith A. Marcus

In what soon became the best year for dealmaking since the financial crisis — measured on a total volume of $3.34tn — the US led the way, spurred by favourable economic conditions and central bank monetary policy. But Europe and Asia finished the year strongly as well.

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Business-focused Polsinelli adds M&A attorney to Century City firm

Century City law firm Polsinelli is boosting it Mergers and Acquisition arm with hot shot attorney Marc Leh joining the local office to add weight to the expanding company.

A member of the California Bar since 1986, Leh earned his law degree from UCLA Gould School of Law in 1986, and his B.A. in Economics from the University of Colorado-Boulder in 1982.

For the past 25 years, Leh has been involved in more than 250 merger and acquisition (M&A) transactions ranging in size from $10 million to more than $1 billion, according to Polsinelli.

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