Private Equity

Tata’s new backseat drivers charge electric course

14 Oct 2021

The Indian carmaker added $4 bln in market cap after buyout firm TPG and others backed its battery-powered passenger-vehicle unit at a $9 bln valuation. Extra funding is welcome in the capital-intensive business. It should help Jaguar’s owner race ahead in a fast-growing market.

Private equity’s German bank raid targets IT jewel

14 Oct 2021

Advent, Centerbridge and TowerBrook have bid 1.7 bln euros for Wiesbaden-based Aareal. Despite its dismal profitability, the target’s appeal lies in its fast-growing digital real estate unit. That could on its own cover the cost of the deal, making the humdrum bank a freebie.

Blackstone music deal hits right digital note

12 Oct 2021

The private equity firm is already moving into TV and films. Now it is investing $1 bln with specialist Hipgnosis to buy rights from artists like Shakira. Streaming is growing, and an expanding market – think TikTok – helps too. It's an upbeat addition to Blackstone's playlist.

KKR puts Blackstone in governance minority of one

11 Oct 2021

Henry Kravis and George Roberts are stepping aside as CEOs of their $56 bln buyout firm and giving up their supervoting shares, albeit slowly. That leaves their rival Steve Schwarzman as a private-equity outlier. While Blackstone’s high returns continue, he can afford to be.

Capital Calls: Pet retail scrap, Chubb, Czech IPO

8 Oct 2021

Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.

Morrisons losers will check out UK’s Sainsbury’s

2 Oct 2021

CD&R won an auction for Britain’s fourth biggest supermarket with a 7 billion pound bid, edging out a consortium led by SoftBank’s Fortress by just 1 pence per share. The winner could be overpaying, making rival grocer Sainsbury’s look more attractive as a fallback option.

Capital Calls: U.S. debt, Hollywood, Blue Prism

28 Sep 2021

Concise views on global finance: Republicans have blocked additional federal borrowing, bringing a default closer; talent agencies CAA, ICM, and Endeavor take different strategic directions; private equity group Vista seems to be getting UK software group Blue Prism cheaply.

EQT $3.9 bln pet bid typifies PE growth obsession

27 Sep 2021

The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.

Capital Calls: OCC, China crypto ban

23 Sep 2021

Concise views on global finance: Biden’s pick for the U.S. bank regulator would be a square peg in a round hole; Beijing regulators declared all cryptocurrency activity to be illegal underlining the cons and a pro of the digital assets.

Dutch lingerie sale looks surprisingly chaste

24 Sep 2021

Sexy-underwear seller Hunkemoller is on the block after a post-pandemic rebound. Owner Carlyle’s digital push is helping it win market share. Yet investors seem more excited by trendy sportswear than saucy lingerie. Capping the price at 1 bln euros looks suitably modest.

Buyout sweeteners are symptom of limp boards

14 Sep 2021

Hellman & Friedman offered 18% more for Zooplus a month after the German retailer backed a $3.5 bln takeover. Blackstone and CD&R also paid more for listed targets than initially intended. Recommending a bid can flush out rival suitors. But boards should be negotiating harder.

Capital Calls: Fake crypto news summons regulation

13 Sep 2021

Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.

Brad Pitt watchmaker warrants celebrity valuation

10 Sep 2021

Breitling, the Swiss maker of aviator timepieces touted by the actor and Charlize Theron, nearly doubled sales on CVC’s four-year watch. Now the buyout firm may flog a 20% chunk. The luxury label merits a $3 bln-plus price tag although buyers will want a minority-stake discount.

Morrisons has a nuclear way to keep suitors honest

9 Sep 2021

The battle for the UK grocery chain looks set to end in an auction. The big danger is that Fortress or CD&R bid too much and then break pledges in areas like employee rights. The board has a way to make these promises legally binding, but the risk is both bidders walk away.

UK’s Smiths faces tough physio after M&A surgery

8 Sep 2021

The $8 bln engineer is flogging its health unit to ICU Medical for $2.4 bln, three years after walking away from the same bidder. The sale is a win for new boss Paul Keel. But for Smiths to warrant a jazzier rating, he will have to work similar magic on languishing margins.

Capital Calls: AMC, German pet retailer

8 Sep 2021

Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.

Fund investor’s IPO depends on Goldman connections

6 Sep 2021

Petershill, which buys stakes in buyout and hedge fund managers, is planning a $5 bln listing. It’s a punt on the enduring boom in alternative assets. It also depends on whether the Wall Street firm, which manages the portfolio, keeps finding attractive new firms to invest in.

Juicy Nordic drug buyout needs safety label

2 Sep 2021

Advent and GIC are paying $8 bln for Swedish Orphan Biovitrum, which specialises in rare-disease treatments. The new owners will need to invest in fresh products and fend off rivals, all while keeping staff. The potential returns look appealing but come with a fair dose of risk.

Capital Calls: Pennies matter to dollar stores

26 Aug 2021

Concise views on global finance: Low-margin U.S. retailers are suffering from supply-chain cost inflation, a direct hit to their business model.

Sainsbury’s surfs wave of UK retail FOMO

23 Aug 2021

The British supermarket’s shares jumped 12% on Monday on rumours of a private equity bid of over 7 bln pounds. The feeding frenzy around rival grocer Morrisons guarantees thwarted bidders on the rebound. As with that saga, buyers should fear overpaying as much as missing out.