The Brief mergermarket’s Weekly Private Equity Round-Up
24 December 2009 | Issue 44
Editorial 1 The Noticeboard 2 Private Equity Opportunities 3 Deals of the Week 9 Pipeline 17 Statistics 20 League & Activity Tables 23 Top Deals 32 Investor Profile: Affinity Equity Partners 35 Notes & Contacts 37
The Week That Was..... The last seven days: private equity in review
2009 was certainly an interesting year for private equity. The post- seen in the Financial Services sector and saw Bank of America global financial crisis deal making environment was one of the most raise much needed capital by selling its 5.78% stake in China challenging ever seen with issues surrounding leverage, corporate Construction Bank to a group of investors. The investors included valuations and a lack of viable targets all conspiring to dampen Singapore-based Temasek Holdings and Hopu Investment activity. Unsurprisingly, this is borne out in the raw numbers with a Management, the China-based private equity fund which has been total of 1,708 private equity-related deals coming to the market over particularly active this year. the course of 2009, worth a collective US$178.7bn. Compared to global announced activity in 2008, this represents a volume decline Despite significant buyout and exit activity in Europe, and toa of 39% while the 56% fall in valuations is even more pronounced, lesser extent Asia, it is unsurprising that the United States again perhaps unsurprising given continued issues surrounding debt emerged as the geography which attracted most private equity- financing and the related retrenchment to deal making at the mid related investment over the previous 12 months. The country to low end of the market. accounted for 36% of global activity in terms of deal volume and 42% of valuations – thanks in part to the abovementioned IndyMac Nevertheless, there appears to be light at the end of the tunnel for transaction. Going forward into 2010, it is likely that private equity private equity houses across the globe. Indeed, the back end of the houses will continue to look to broker deals in established markets year witnessed the belated return of the US$1bn+ private equity as funds aim to reduce their risk exposure and target solid returns deal with six of the top 10 largest deals of the year being announced through good old fashioned value creation. Examples of pure in the fourth quarter. The most significant of these was announced financial engineering are fewer and further between in the current in Germany and saw BC Partners and Apollo Management exit their market as the asset class has been forced to go back-to-basics. investment in cable network operator Unitymedia. In a transaction Many would argue that this is no bad thing. valued at US$5.2bn, the two funds sold out to Liberty Global, the
US-based cable operator which offers video, voice and internet- By Tom Coughlan, Remark access services.
Perversely, the two largest deals of 2009 were actually announced over the first half of the year. The top deal was seen in the United States and came about as a direct result of the global financial crisis. The buyout saw OneWest Bank, the federally licenced savings bank owned by a consortium of investors, move to acquire the banking operations of IndyMac Federal Bank, the bridge bank created to manage the assets and liabilities of IndyMac Bank. On the buy-side of the deal, the consortium was led by hedge fund Dune Capital Management and also included JC Flowers & Co, MSD Capital, Stone Point Capital, Soros Strategic Partners, Paulson & Co and Silar Advisors.
Elsewhere, the largest private equity-related Asian deal was also The Noticeboard
New funds
Date Title Story snapshot Source
23-Dec-09 Foursan Group Foursan Group, a Middle Eastern private equity specialist, has launched its second www.4san.com launches its second fund, Foursan Capital Partners I (FCP), a private equity fund targeting investments fund in accelerated growth companies in Jordan and surrounding countries in the Levant and North Africa. FCP will have a first close on US$100m on January 1, 2010 and is targeting a final close of US$200m in 2010. Anchor Investors include OPIC, IFC, Jordan’s Social Security and Olayan Group. The fund, which will take significant stakes in medium-sized private companies, will invest in a range of sectors including financial services, food and beverage, education, aviation, pharmaceuticals and healthcare.
22-Dec-09 Helios targets Africa-focused private equity firm Helios Investment Partners is targeting up to www.privateequityonline.com US$650m for US$650m for its second fund, Helios Investors II. The vehicle, which has attracted second fund US$75m and US$60m from CDC and IFC respectively, is expected to invest around 50% of its capital in infrastructure-related projects including power, railway and telecom infrastructure. The fund will invest in companies mainly located in Nigeria, Ghana, Angola, Cote D’Ivoire, Kenya, Tanzania and Uganda, while other African countries may be considered opportunistically.
21-Dec-09 Kelso closes its Kelso Place Asset Management, a London-based private equity firm, has closed its www.altassets.com fourth turnaround Special Situations Fund on its hard cap of £100m (€112.3m), exceeding its initial fund on £100m target of £75m (€84.2m). The vehicle will target turnaround and special situations opportunities, which was the focus of the firm’s three previous funds. In particular, the fund will acquire controlling stakes in UK lower middle-market businesses with annual revenues of £10m to £100m. The fundraising effort was launched during the summer of 2009.
Miscellaneous
Date Title Story snapshot Source
21-Dec-09 Allianz to sell PE Following a year of overhaul for Allianz’s alternative investment activities, the German www.privateequityonline.com division AGF insurance giant has entered exclusive talks to sell its French private equity fund of funds business, AGF Private Equity (AGF). The prospective buyer is French private equity investor IDI Group, who, if succeeds, will more than triple its assets under management. The potential spin-off comes as AGF seeks to raise its fifth fund targeting €400m. IDI combines direct and indirect investment activity and has built up around nearly €600m in assets under management.
2 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - Asia-Pacific
Seoul Chunchon Highway to see stake sale in 2010; potential bidders likely to be financial investors, source says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
18-Dec-09 28 US$ Book value Construction, Government, Hyundai Engineering & South Korea Strong evidence of 10% Transportation Construction Co, Government stake held of South Korea, Korean by Korea Teachers Credit Union (KTCU), Expressway Hyundai Development Company - Engineering & Construction, National Pension Service, Macquarie Korea Infrastructure Fund, New Daegu Busan Expressway Co Ltd, Samil PricewaterhouseCoopers, Seoul Chunchon Highway, Korea Expressway Corporation, EASI Accounting
Seoul Chunchon Highway (SCH), a closely-held Korean highway operator, will see a stake in itself sold in 2010. Potential buyers would likely be financial investors, a source familiar with the matter said. The major shareholders of SCH include Hyundai Development Company with 25% stake, Macquarie Korea Infra with 15%, the Korean Teachers Credit Union with 15%, Hyundai Engineering & Construction with 10%, and Korea Expressway Corporation with 10%. There are five other stakeholders with less than 10% equity ownership. As reported by this news service, the South Korean government-owned Korea Expressway announced its intention to privatize its stake in SCH and had retained EASI Accounting as the financial advisor. Korea Expressway will start the stake sale process in early 2010, an insider from Korea Expressway said. The source said that potential bidders for the SCH stake would likely be financial investors rather than strategic investors, and named Macquarie Korea Infra and National Pension Service as potential buyers. Macquarie Korea Infra declined comment on its intention. With the stake sale by Korea Expressway soon underway, there is a high chance that the other stakeholders would follow suit and exit from their investments as well, the source said. The source declined, however, to estimate the exact deal size or quantum of stake that could potentially come up for sale. According to the source, there already have been talk among the construction shareholders to sell their investments in SCH. He said, however, that majority shareholder Hyundai Development Company is not one of them. He added that the potential sale price would be maximized if Hyundai Development Company sold its stake along with the other stakeholders. A spokesperson from Hyundai Development confirmed that it has no plan to sell its 25% stake at the moment. The potential sale price would be relatively less than the previous sale price of local peer New Daegu Busan Expressway, which was reportedly KRW8,250 (USD 7.01) per share, the source said. He said in his view that the sale price would be around KRW7,000 to KRW8,000 per share if the other stakeholders decide to sell at the same time as the Korea Expressway, but the price would be much lower, at around KRW6,000 per share, if only Korea Expressway sells its 10% share. He attributed this to the fact buyers would not see much merit in acquiring only a 10% stake. The book value of the 10% stake held by Korea Expressway is KRW32.4bn (US$27.6m) at KRW5,000 per share, according to company’s 2008 financial statement.
Reliance Media World may raise US$50m to US$100m next quarter; to explore several options, source says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
23-Dec-09 43 US$ Turnover Consumer: Other, Reliance ADAG Enterprises India Strong evidence for the Consumer: Retail, Leisure, (Anil Ambani group), Reliance year ended Media, Other, Services Media World March 2009 (other)
Reliance Media World, a listed Indian media company, will explore several options to raise funds, including an equity placement, a company source said. It could be through either equity, debt or a qualified institutional placement (QIP) to financial investors. This would coincide with phase III frequency modulated (FM) policy announcements expected during the next quarter, the source said. Reliance Media runs the private FM radio station Big 92.7. The amount raised could be in the range of US$50m to US$100m, he added. The owners, Reliance ADAG Group, hold a 61% stake in the company. The company would be open to approaches from financial and legal advisors, the source said. Indian business house Reliance ADAG Group demerged its radio business into Reliance Media World in April 2008 and listed it earlier this month, according to previous media reports. According to a recent company announcement, the company’s current reach is 52,000 villages, which it expects to expand to 2.5 million villages post the phase III policy. A total of 336 channels were put out to bid in the phase II of the FM policy. The next policy is likely to auction frequencies for more cities. The funds that will be raised are likely to be used to expand further into more cities post the announcement of the phase III policy, said the source. Reliance Media World has a market cap of US$89.24m and had a turnover of US$42.7m for the year ended March 2009.
3 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - Asia-Pacific
Zhongfu Bio-Tech seeks to raise more than CNY120m via majority stake sale to develop China’s first drug delivery system, founder says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
17-Dec-09 17 US$ Fund to be Biotechnology, Medical: Sepracor Inc, Zhongfu Bio- China, USA Confirmed raised Pharmaceuticals Tech Co., Ltd.
Zhongfu Bio-Tech [Zhong Fu Sheng Wu], a Changsha-based biotech company, is actively looking to raise more than CNY120m (US$17m) to aid its drug delivery system research, founder Dengzhi Wang said. The privately held company would entertain approaches from private equity firms and and industry peers. Wang holds a 51% in the company, with the rest held by other co-founders. The shareholders are all willing to sell their stakes, though the company currently would prefer not to sell the company as a whole, Wang confirmed to this news wire after a presentation at the Global Bio Capital Forum in Shanghai. The company is looking to list on London AIM market within three to five years, so preference would be given to opportunities that could facilitate its route to the AIM initial public offering. The company has not yet mandated advisors and would be glad to hear from financial advisors and legal counsel. Sepracor, the listed, Massachusetts-based pharmaceutical company, approached Zhongfu in 2008 about a potential acquisition. However, it failed to materialize due to the financial turmoil, Wang said. The raised funds would be earmarked to aid the research and development of its drug delivery system, mainly in diseases of diabetes, coronary heart disease and sudden death. The drug delivery system is at the phase one stage, and once the funds have been raised, the system is expected to complete the R&D stage within two years, with estimated sales revenue of around US$1bn globally, according to Wang. The company is not in a good financial position, having made a loss in 2008 and 2009. “I need an investor to keep moving the drug delivery system forward,” added the CEO. Wang explained the company started to decline in 2007 when the government introduced stricter control in new drug development, following the execution of the former head of China’s State Food and Drug Administration, Zheng Xiaoyu, for corruption.
Vibha Seeds attractive target for strategic players, private equity funds, sources say
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
17-Dec-09 75 US$ Company’s Agriculture, Biotechnology, Blackstone Group Holdings India Rumoured revenues in Chemicals and materials, LLC, Nuziveedu Seeds Ltd, FY 08-09 Consumer: Foods, Advanta India Ltd, Kaveri Consumer: Other, Seed Company Ltd., JK Agri Consumer: Retail, Genetics, Vibha Agrotech Ltd Manufacturing (other)
Vibha Seeds, a private, Hyderabad-based Indian company, could be attractive to private equity funds and strategic players, said a banker and two buyside industry sources. The company clocked about INR3.5bn in FY08/09 revenues, added the first buyside source. It produces new varieties of hybrid seed genes and has its own research and testing facilities across India. A company spokesperson could not be reached for comment. Chairman and managing director Vidyasagar Parchuri is a prominent scientist, well respected in the space, said the first buyside source. The company has a diversified product mix and a strong management team, and recently inaugurated one of the largest seed processing facilities in Asia, which could make it additionally attractive, said the first buyside source. The facility has the capacity to produce 1200 tons per day of field and vegetable crops, according to a November press release. Potential buyers could include domestic or overseas strategic firms interested in gaining market share or penetrating a new and growing market, he said. Chemical companies that sell their products to the same clientele could also be interested in seed company purchases. Listed Indian seed companies include Advanta, Kaveri Seeds and JK Agri Genetics, he added. Private equity investors could also be drawn by the high profit margins of 20-25% but an investment risk includes the volatile Indian monsoons, said the first buyside source. Another potential risk is the tenure of the exclusivity periods on the intellectual property patents on company-designed genes, said the second buyside source. Despite a lot of interest in the space, Blackstone is one of the few global funds that has invested in the space via a minority stake in Hyderabad-based Nuziveedu Seeds, said the first buyside source. Meanwhile, based on its financials alone, the company would also be large enough to undertake an initial public offering (IPO), said the second buyside source. Vibha Seeds was a significant player in the BT cotton seeds market and could seek PE funding prior to an IPO, agreed an industry analyst. The company could prefer to continue on its own growth trajectory instead of being part of a larger player, he added.
4 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - Europe
Clinipart seeks US$10m for 30% stake; Pioneer Management Group advising
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
16-Dec-09 10 US$ Funds Medical Pioneer Management Group, United Confirmed sought Clinipart Ltd Kingdom, Saudi Arabia
Clinipart, the UK-based medical devices manufacturer, is looking to raise US$10m from a new financial investor to bring its new healthcare components to market. The group needs capital to promote and manufacture a series of products on a large scale, its founder Joseph Peters told this news service. Peters said the company is willing to give a 30% stake in the group for the US$10m investment. Clinipart is privately-owned between Joseph Peters and John Watkinson, with each owning a 50% share. Both individuals would release parts of their stakes to the new investor. “Ideally we would like a safe investor who understands what we’re trying to achieve,” Peters said. Pioneer Management Group, based in Dubai, is advising the company and the search for a partner is currently underway. Peters said that discussions were underway with several parties, and that there is interest from investors in Saudi Arabia. He added that Clinipart would prefer the investor to come on board over the next six months or sooner if possible. Clinipart’s aim is to produce devices that will help to improve the safety and effectiveness of clinical techniques and procedures for patients. Peters explained that the current designs used in epidural and intravenous infusion are over 30 years old and use luer lock connections. These products have suffered disconnections with, at times, fatal results. Both the US Foods and Drugs Administration and the UK’s National Patient Safety Agency have recognised the issue and are looking at ways to address it, he added. Clinipart has designed non-luer lock hub connection systems that eliminate the possibility of cross connections and disconnections. The company is now in a position to move forward from the prototype stage to test marketing and full production. Asked about whether Clinipart’s product range will meet international standards, Peters said: “We believe we’re ahead of standards. This is a completely new area so no standards actually exist.” Clinipart’s market research claims that the different products it plans to release onto the international healthcare market have a potential global value of US$1.5bn.
Alprosys would welcome strategic investor, CEO says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
22-Dec-09 4 € Sales of Industrial automation, Alprosys Sondermaschinenbau Germany, Confirmed Alpsosys Industrial products and Kft, Alprosys Hungary services Sondermaschinenbau Kft
Alprosys, the privately-owned Hungarian machinery manufacturer, hopes to attract an investor, Chief Executive Peter Dorultan said. The company would welcome either a strategic or a financial investor, he added. Alprosys makes manufacturing machinery for car makers, the pharma industry, electronic device manufacturers, plastic part makers, and other industries. If the investor is strategic, and also brings significant new orders to Alprosys, Aprosys would sell a majority stake, Dorultan said. The stake for sale will depend on the agreement between the present owners and the new investor, he continued. Even without a strategic investor that would bring new customers, Alprosys’ order book is full enough to use the existing capacity of the company, he added speaking on the sidelines of Marcus Evans’ Manutech conference in Budapest. The company would also examine the opportunity to acquire a distressed machinery manufacturer at a good price in Romania or Slovakia for example, he added. It is not a necessity for Alprosys to set up facilities to be present on these markets, he said. The company’s profile is to undertake projects for production machinery development, the CEO said. In Hungary, it would not acquire companies, it outsources work to subcontractors, he added. The CEO added that Alprosys employs 70 and its sales was HUF1bn (€4m) in 2008. Alprosys is based in Gyor, the car manufacturing centre of Hungary, and its serves Audi, Knorr-Bremse and other car and car-part manufacturers. Alprosys is owned by German individuals through a Hungarian holding company, the CEO said.
5 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - Europe
Trigon to consider stake sale or an IPO in 2011, source says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
18-Dec-09 100 € Number of Financial Services Dom Maklerski Penetrator Poland, Strong evidence employees SA, Trigon Group, Wojciech Ukraine Patkiewicz, Andrzej Sykulski, Pawel Dobrowolski and Przemyslaw Schmidt)
Trigon, the private Polish investment boutique, could take on board a strategic or financial investor a year from now, a company source said. The group is also considering an IPO on the Warsaw bourse. Trigon would look for additional equity to finance its expansion plans, the source told this news service. He noted it wants to improve its financials first and would only be ready for investor approaches in 2011. Both financial and trade investors would be considered, the source said. He would not rule out sale of a “significant” stake, but declined to discuss actual figures. Going public is second fund-raising option, the source said. He noted that a stock market listing would help Trigon retain staff and attract new employees, as it has just launched a stock-option plan. Right now Trigon is still restructuring its retail business, expanded after last year’s buyout of a 50% stake in DM Penetrator brokerage, the source said. “DM Penetrator was in worse shape than we expected,” the source explained. Because of restructuring expenses, this year Trigon could post a “small loss” (less then PLN1m, or €240,000), he added. Trigon is controlled by managing partners Andrzej Sykulski (39), Wojciech Patkiewicz (40) and Przemyslaw Schmidt (47), according to the company website. It has 100 employees and offices in Poland and Ukraine. No recent financial data are available for Trigon or its key operating subsidiaries.
Globus could sell property portfolio to finance Russian expansion, MD says
Date Value Currency Value Sectors Companies Countries Intelligence grade (M) description
27-Nov-09 5,600 € Sales of Consumer: Retail, Real Globus Fachmaerkte GmbH Germany, Confirmed Globus 2008 Estate & Co. KG Russia
Globus, the family owned German food and electronics hypermarket chain, might sell and lease back its property portfolio to finance its expansion in Russia, Werner Eberhart, MD responsible for the CEE region at the company, said. Eberhart said that Globus would consider selling the real estate in which its already existing hypermarkets are operating and leasing them back from the new owner, for example, a property fund. “Globus is a conservative German company which – unlike its global rivals - owns the properties in which its stores are operating, but its management is searching for less expensive alternatives of financing expansion than bank loans,” he said. Eberhart also added that private equity investors, like private equity funds, property investors or private investors, would also be welcome in the company, to finance the expansion, but the owners are not considering going public. He said that, as a traditional German family company, the present owners would not like to give away majority ownership either. Globus is interested in getting financing in order to speed up its expansion in Russia, Eberhardt said. The German company already has five hypermarkets in Russia, 40 in the Czech Republic and 44 in Germany, but the Russian expansion could be much faster if the bank financing was not so expensive since the beginning of the crisis, he added. The company would also be happy to see investors for example financing or co-financing the land and construction of its planned new Russian hypermarkets, Eberhart said. The total sales area of Globus is 1,450,000 square meters, and has food and grocery store chain as well as electronics appliance retail chain in Germany, IGD’s retail analysis wrote. The Russian affiliate of Globus was given a€ 134.5m syndicated loan from EBRD in 2008, to build up the first five units of its Russian arm Hyperglobus, EBRD’s website wrote. The maturity of the EBRD’s loan is 10 years. Consolidated sales of Globus operations in several countries were €5.6bn in the 2008- 2009 financial year that ended in June 2009, the MD said.
6 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - North America
Pierre Foods, post-bankruptcy, is attractive to strategic buyers, industry observers say; source familiar agrees
Date Value (M) Currency Value Sectors Companies Countries Intelligence grade description
16-Dec-09 1,000 US$ Pierre’s Consumer: Foods Oaktree Capital Management USA Strong evidence valuation L.P, The Schwan Food Company, Pinnacle Foods Group Inc, Michael Foods Inc., Pierre Foods Inc
Pierre Foods, the private Cincinnati, Ohio-based food manufacturer, is an attractive target, said an industry banker, a private equity source, and an industry executive. The company, which emerged from bankruptcy in the latter half of 2008, is now controlled by Oaktree Capital Management. Prior to filing, the company had hired Perella Weinberg to review strategic alternatives. The industry executive said there were a couple of strategic suitors interested in Pierre Foods but a deal never surfaced. Because the company emerged from bankruptcy with Oaktrees help despite the recession, Pierre has proven that it is a good asset, said the industry executive. The source familiar agreed that Pierre Foods is clearly a target and that a recapitalization by the company in September may have triggered interest. The source said the company now has a healthy balance sheet and that private equity and strategic bidders have taken notice. The source familiar would not give exact figures but said Pierre Foods has more than US$500m in revenues. While the source thought Pierre is still not ready to put itself on the block, it will keep its options open and is willing to listen to offers. The industry banker set Pierre Foods’ valuation between 5.5-7X EBIDTA. The source familiar said the valuation is more similar to the Birds Eye and Pinnacle Foods transaction, at 9-9.5X EBITDA. If a deal were to transpire it could be close to USD 1bn, said the source, adding that the company would want an all cash transaction. Both the banker and the private equity sources agreed that The Schwan Food Company, based out of Marshal, Minnesota, could be interested in Pierre Foods. The two sources noted that Pierres and Schwans line of frozen foods would mesh well together. The source familiar with Pierre Foods thought the idea wasnt too far fetched given that the companys new CFO, Craig Pellerin, came from Schwan. He would not say whether the two companies have had discussions. The Schwan Food Company did not return calls seeking comment. The source familiar also mentioned the notion of a deal between Pierre Foods and the private Minnetonka, Minnesota- based, Michael Foods. He said investment bankers are constantly shopping the idea to Pierre Foods. Michael Foods offers several egg products that might complement Pierres offerings, but the source familiar saw few other synergies and said a deal between the two is not likely. Michael Foods did not return calls seeking comment. In addition to adding the new CFO, Pierre Foods tapped Bill Toler, former president of Pinnacle Foods, as the companys new CEO. The source familiar said Toler and Pellerin have worked to get the company back on track. He said the executives have transformed the company by adding hand-held convenience sandwiches to its portfolio. Pierre Foods supplies fully cooked and microwaveable meat products, primarily pre-cooked hamburger patties, chicken strips, and meatloaf. It also produces frozen bakery foods, and french toast. The company supplies restaurants, schools, vending-machine and convenience-stores, and retail stores.
Storage Battery Systems interested in offers to fuel international growth, co-owner says
Date Value (M) Currency Value Sectors Companies Countries Intelligence grade description
17-Dec-09 30 US$ Approximate Industrial products and American Power Conversion USA Confirmed revenues services, Utilities (other) Corp., EnerSys Inc, East Penn Manufacturing Co., Inc., Storage Battery Systems
Storage Battery Systems (SBS) is interested in strategic or private equity offers to fuel international growth, said Bill Rubenzer, co-owner and vice president. The private, Menomonee Falls, Wisconsin-based maker of battery systems for the telecom and utility industries had conversations with investors a few months ago, said Rubenzer, but “the brakes were put on it” because of the economic meltdown. The company, with revenue of nearly US$30m, is willing to sell a 40% to 50% stake, Rubenzer said, noting the management team wants to remain involved. SBS is in negotiations with a Chinese manufacturing company about a joint venture. While the two companies’ product lines are different, the skills involved are similar, and a deal would bring SBS to the Chinese market. SBS is open to partnering with other investors on the deal. SBS is interested in approaches from M&A advisors with an expertise in China, he said. It last spoke to investment bankers about six months ago. It uses Wipfli as its accounting firm and Von Briesen & Roper as its legal counsel. A battery company or a company interested in entering the renewable battery market might be interested in SBS, he said. There are few domestic battery players. Therefore, the company could interest an international buyer looking for a US presence. SBS competes with EnerSys, East Penn and APC, he said. SBS offers design and installation services for telecom rectifiers, battery chargers and complete dc power systems. Its products include battery cells, sealed VRLA strings, Ni-Cd jars and Lithium-ION rechargeable battery packs.
7 The Brief: 24 December 2009 | Issue 44 Private Equity Opportunities - North America
RCN Corporation could receive interest from PE buyers for CLEC business or entire company, sources say
Date Value (M) Currency Value Sectors Companies Countries Intelligence grade description
16-Dec-09 335 US$ Market Telecommunications: RCN Corporation, Consolidated USA Strong evidence capitalization Carriers Edison Inc., NEON Communications Group Inc
RCN Corporation (NASDAQ:RCNI), the northeastern-based communications provider, could see interest from financial sponsors, said one PE investor and one banker who both specialize in the communications sector. The PE investor, who said his firm is not interested in pursuing a deal with RCN, noted that he is beginning to hear chatter among potential private equity buyers indicating their interest in these assets. The industry banker noted that the company is performing well and he would not be surprised to see PE buyers approach the company. RCN’s main attraction is the US$3bn of fiber plant it has built from Boston to Washington, DC since network construction began in 1996. Currently, RCN has a market capitalization of US$335m and net debt of US$658m, bringing its enterprise value to about US$1bn - roughly one-third the value of the fiber in the ground. The company’s fiber network extents 12,000 miles. Of particular interest could be RCN’s competitive local exchange carrier (CLEC) business, dubbed RCN Metro, which targets the business user. RCN CFO Michael Sicoli said at a recent UBS Media and Communications conference that the CLEC business generates on average revenue of US$13,000 per month per customer, pointing to RCN Metro attracting a high-quality clientele. During the company’s most recent earnings call, Sicoli noted that the top 25 customers of RCN Metro each pay US$100,000 a month or more, adding that the larger CLEC customers are willing to purchase RCN’s on-net services despite the company being a relatively small player in the space. The CLEC assets are fully integrated with Ethernet IP, SONET and wavelength services all riding on metro and inner city rings, meaning the company is staying on or ahead of the technology curve. Over the last two years, the company has invested in upgrades to provide metro-Ethernet and MPLS capabilities throughout its footprint. These investments add to the attractiveness of the company to a buyer, the banker noted. While busy focusing on the improvement of its technology, RCN has also been actively implementing an acquisition strategy. The company purchased the CLEC assets of Consolidated Edison (NYSE:ED) in 2005 for US$32m, providing it with access to rights of way in the New York metropolitan area. RCN also purchased NEON Communications, also a CLEC, for US$260m in 2007, which operated in a similar geographic footprint. RCN may be the only company that has access to rights of way on communications, gas and electric infrastructure in New York. This could prove a hefty competitive advantage as few, if any, companies have similar access, the banker said. This could prove especially important as higher bandwidth wireless networks proliferate and cell towers require greater access to fiber. RCN Metro will be among the few that will be able to provide greater fiber availability to cell tower companies as 4G becomes the wireless industry standard in the years ahead, the banker added. Peter Aquino, RCN president and CEO, also at the UBS conference, said there are plenty of high return investments that could be made to rapidly grow the CLEC business. He cautioned, however, that such investments would likely impact EBITDA negatively. Aquino noted that RCN could be more aggressive with its investment opportunity if it did not have to hit the quarterly results that public shareholders demand. RCN is expected to generate EBITDA of US$218m for 2009, according to a 3 November Jefferies & Company analyst report. Free cash flow is forecast to be US$39m for the current year, jumping to US$57m next year, the same analyst report noted.
Little Gym would consider private equity stake sale to fuel opportunistic acquisitions, CEO says
Date Value (M) Currency Value Sectors Companies Countries Intelligence grade description
16-Dec-09 200 US$ Range of Consumer: Other, Squire, Sanders & Dempsey USA Confirmed revenues Leisure, Other, Services L.L.P, Gymboree Corporation, (other) The ((Play & Music) UK & Ireland-based operations), Kidville, Inc., Compass Bank, The Little Gym International Inc.
The Little Gym International, a private Scottsdale, Arizona-based franchised fitness development center for kids, would consider a private equity stake sale to fuel opportunistic acquisitions, CEO Robert Bingham said. Bingham said if Little Gym’s commercial bank, Compass Bank, does not provide the company with financing for a deal he would then turn to private equity. “We are approached by private equity at least two times a week,” he said. “If there was something we want to acquire then that is where private equity would come in,” Bingham said. A minority stake sale would be ideal, he said. “At this stage we are not looking for investors,” he said, explaining that the company is not for sale. Bingham said Little Gym generates system-wide sales between US$100m and 200m. He said the company is debt free and profitable. There are 11 shareholders total in the company including Bingham, he said. Little Gym provides programs for kids between the ages of four months and 12 years old. The programs help children build motor skills and provide social interaction. Kids learn gymnastics, karate, music and dance, and company also has an overnight camp on select weekends for members. Bingham said he would be interested in acquiring a complementary franchise geared toward the youth industry. “A learning center could be an area where I could look for those opportunities,” he said. The company does not have an investment bank lined up to help pursue possible deals. Bingham said he uses Squire Sanders for corporate legal advice. Founded in 1976, Little Gym now operates about 300 franchises throughout the US, Asia, Europe, and the Middle East. Bingham said he does not plan on pursuing international acquisitions because it is less likely to know of opportunities that may come about. Bingham pointed to My Gymboree and NASDAQ- listed Gymboree Corporation’s Gymboree Play & Music Center as among Little Gym’s competitors. He did not express an interest in teaming up with competitors. In addition to complementary opportunistic buys, he said he will continue to grow the entire company organically. The children’s fitness industry has not seen many M&A deals transpire, said Bingham. There was only one in 2009 when New York City-based Kidville, which is a listed OTC company, acquired Solana Beach, California-based JW Tumbles. Terms of the deal were undisclosed, but the two now have a total of 43 locations throughout the US, Singapore and Hong Kong.
8 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - Asia-Pacific
Deal one: Junjin Heavy Industry Co Ltd Deal two: Powernet Technologies (58.02% stake) Corporation (92.60% stake)
Announced date 17-Dec-09 Announced date 17-Dec-09
Deal type IBI Deal type IBI
Deal value (US$m) 81 Deal value (US$m) 66
Target information Target information
Company Junjin Heavy Industry Co Ltd (58.02% stake) Company Powernet Technologies Corporation (92.60% stake)
Description South Korea-based company engaged in Description South Korea-based company engaged in the manufacturing automobiles for construction manufacture and marketing of electronic industry components and communication devices
Financial advisor NA Financial advisor Ernst & Young
Legal advisor NA Legal advisor NA
Bidder information Bidder information
Company KTB Securities Co Ltd Company KB-Glenwood Consortium
Description South Korea-based venture capital company Description South Korea-based consortium led by KB Invest- ment & Securities Co, the South Korea-based private equity firm Financial advisor NA
Legal advisor NA Financial advisor KB Investment & Securities
Legal advisor NA
Seller information Seller information
Company NA Company NA
Debt provider NA Debt provider NA
Equity provider KTB Securities Co Ltd (n/a, 100.0%) Equity provider KB Investment & Securities (n/a, 100.0%)
Deal description Deal description
KTB Securities Co Ltd, the South Korea-based private equity firm, has A consortium led by KB Investment & Securities Co, the South Korea-based acquired a 58.02% stake in Junjin Heavy Industry Co Ltd, the South Korea- private equity firm, has acquired a 92.6% stake in Powernet Technologies based company engaged in manufacturing automobiles for construction Corp, the South Korea-based company engaged in the manufacture and industry, for a consideration of KRW42.101bn (US$36.27m). marketing of electronic components and communication devices, for a consideration of US$65.82m (KKRW76.392bn).
9 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - Europe
Deal one: Upim Srl Deal two: Swedegas AB
Announced date 17-Dec-09 Announced date 17-Dec-09
Deal type Exit Deal type IBO
Deal value (€m) 187 Deal value (€m) 107
Target information Target information
Company Upim Srl Company Swedegas AB
Description Italian department store chain Description Sweden-based gas transmission network
Financial adviser UniCredit Group Financial adviser Royal Bank of Scotland Group
Legal adviser Giliberti Pappalettera Triscornia e Associati Legal adviser Gernandt & Danielsson
Bidder information Bidder information
Company Gruppo Coin SpA Company EQT Infrastructure Fund
Description Italian retailer of clothing and accessories Description Sweden-based private equity fund of EQT Partners AB incorporated in Channel Islands Financial adviser UBS Investment Bank
Legal adviser Grimaldi e Associati; Linklaters (Advising Banca Financial adviser Nordea Corporate Finance IMI/Intesa Sanpaolo; CALYON) Legal adviser Vinge
Seller information Seller information
Company Borletti Group; Deutsche Bank Real Estate Company DONG Energy A/S; E.ON Ruhrgas AG; Fortum Oyj; Global Opportunities; Investitori Associati IV; and Statoil ASA and Pirelli & C. Real Estate SpA
Debt provider CALYON, Banca IMI/Intesa Sanpaolo Debt provider NA
Equity provider PAI Partners Equity provider EQT Partners AB
Deal description Deal description
Gruppo Coin SpA has agreed to acquire Upim S.r.l. from Borletti Group, EQT Infrastructure Fund has agreed to acquire Swedegas AB from Deutsche Bank Real Estate Global Opportunities, Investitori Associati IV and DONG Energy A/S, E.ON Ruhrgas AG, Fortum Oyj and Statoil ASA for an Pirelli & C. Real Estate SpA for a deal value of €187m. approximate consideration of SEK1bn (€95.873m).
10 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - Europe
Deal three: Synetrix (Holdings) Limited Deal four: NRC Media Holding BV
Announced date 21-Dec-09 Announced date 20-Dec-09
Deal type Exit Deal type IBI
Deal value (€m) 84 Deal value (€m) 65
Target information Target information
Company Synetrix (Holdings) Limited Company NRC Media Holding BV
Description UK-based provider of ICT application and Description Netherlands-based publisher of evening newspaper communications solutions to both public and private sector organisations
Financial adviser NA Financial adviser NA
Legal adviser NA Legal adviser NA
Bidder information Bidder information
Company The Capita Group Plc Company Egeria BV; Het Gesprek Media Holding BV
Description UK-based provider of business process out- sourcing services, management consultancy, Description Netherlands-based company having interests in finance & treasury management, IT consul- business engaged in media sector; Netherlands- tancy & training and other professional support based private equity firm services
Financial adviser NA Financial adviser NA
Legal adviser NA Legal adviser NA
Seller information Seller information
Company Apax Partners LLP Company De Persgroep NV
Debt provider NA Debt provider NA
Equity provider NA Equity provider Egeria BV, Het Gesprek Media Holding BV
Deal description Deal description
The Capita Group Plc has acquired Synetrix (Holdings) Ltd from Apax Egeria BV along with Het Gesprek Media Holding BV has acquired NRC Partners for a cash consideration of £75m. Media Holding BV from De Persgroep NV for a consideration of €65m.
11 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - Europe
Deal five: Mediterranea de Catering SL Deal six: Semantix AB
Announced date 22-Dec-09 Announced date 21-Dec-09
Deal type MBO Deal type IBO
Deal value (€m) 58 Deal value (€m) 14
Target information Target information
Company Mediterranea de Catering SL Company Semantix AB
Description Spain-based catering company Description Sweden-based provider of language interpreting services Financial adviser NA
Legal adviser NA Financial adviser NA
Legal adviser Mannheimer Swartling; Vinge
Bidder information Bidder information
Company Alia Private Equity SCR SA; Inversiones Iber- Company Litorina Kapital III suizas SA
Description Sweden-based private equity fund of Litorina Description Spain-based private equity; Spain-based private Kapital equity firm
Financial adviser Deloitte Financial adviser NA
Legal adviser NA Legal adviser NA
Seller information Seller information
Company Mr Mariano Munoz Orejon (private investor) Company Accent Equity 2003
Debt provider NA Debt provider NA
Equity provider Inversiones Ibersuizas SA, Management Vehi- Equity provider Management Vehicle, Litorina Kapital cle, Alia Private Equity SCR SA
Deal description Deal description
The management of Mediterranea de Catering SL has acquired the company The management of Semantix AB has acquired the company in a in a management buyout transaction backed by Inversiones Ibersuizas SA for management buyout transaction backed by Litorina Kapital III from Accent a total consideration of €93.3m. Equity 2003, for a consideration of SEK150m (€14.39m).
12 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - North America
Deal one: Sturm Foods Inc Deal two: Corthera Inc
Announced date 21-Dec-09 Announced date 23-Dec-09
Deal type Exit Deal type Exit
Deal value (US$m) 660 Deal value (US$m) 620
Target information Target information
Company Sturm Foods Inc Company Corthera Inc
Description US based dry grocery manufacturer Description US based biopharmaceutical company focused on acquiring, developing and commercializing therapies Financial advisor Deutsche Bank for illnesses in the acute care setting
Legal advisor Vinson & Elkins Financial advisor Not Available
Legal advisor Not Available
Bidder information Bidder information
Company TreeHouse Foods Inc Company Novartis AG
Description US based manufacturer and distributor of shelf Description Switzerland based company engaged in pharmaceu- stable foods, including pickles, olives, relish, tical business and operating in the areas of human nutrition beverages, non-dairy coffee creamers, health care, consumer health, agribusiness and cheese sauces, dips, pudding, instant breakfast animal health drinks, syrups, and special sauces
Financial advisor Bank of America Merrill Lynch Financial advisor Not Available
Legal advisor Winston & Strawn Legal advisor Kaye Scholer
Seller information Seller information
Company HM Capital Partners LLC Company Caxton Advantage Life Sciences Fund; Domain Associates LLC; Kleiner Perkins Caufield & Byers; Description US based private equity firm investing in the Sears Capital Management Inc energy, food and media industries Description US based venture capital fund that invests in late stage private and micro cap public biotechnology Debt provider NA companies; US based venture capital firm with an exclusive focus on life sciences; US based private equity firm, which invests in early-stage ventures; Equity provider Bank of America Merrill Lynch US based venture investment and portfolio manage- ment firm
Debt provider NA
Equity provider Not Applicable
Deal description Deal description
TreeHouse Foods Inc has agreed to acquire Sturm Foods Inc from Novartis AG has agreed to acquire Corthera Inc from a group of investors for HM Capital Partners LLC and other shareholders for a consideration of a consideration of US$120m. The investor group exiting via this transaction approximately US$660m. The transaction and financing are expected to are Kleiner Perkins Caufield & Byers, Domain Associates LLC, Sears Capital close in the first quarter of 2010. Management Inc and Caxton Advantage Life Sciences Fund. Under the terms of the agreement, Corthera shareholders are also eligible to receive an additional amount of US$500m contingent upon certain development and commercialization milestones.
13 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - North America
Deal three: Airvana, Inc. Deal four: Medical Area Total Energy Plant Inc
Announced date 18-Dec-09 Announced date 21-Dec-09
Deal type IBO Deal type IBI
Deal value (US$m) 448 Deal value (US$m) 320
Target information Target information
Company Airvana, Inc. Company Medical Area Total Energy Plant Inc
Description US based provider of network infrastructure Description US based producer and supplier of steam, chilled products used by wireless operators to provide water, and electricity to the Longwood Medical and mobile broadband services Academic Area in Boston
Financial advisor Goldman Sachs Financial advisor Goldman Sachs
Legal advisor Ropes & Gray; Wilmer Cutler Pickering Hale Legal advisor Ropes & Gray and Dorr
Bidder information Bidder information
Company 72 Mobile Holdings, LLC Company Morgan Stanley Infrastructure Partners LP; Veolia Energy North America Description US based holding company comprised of S.A.C. Private Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and Zeln- Description US based private equity fund investing in infrastruc- ickMedia ture projects/assets; US based operational and industrial services provider to power plants Financial advisor Perella Weinberg Partners
Financial advisor Legal advisor Simpson Thacher & Bartlett Morgan Stanley
Legal advisor Davis Polk & Wardwell
Seller information Seller information
Company NA Company NSTAR
Description NA Description US based integrated utilities group
Debt provider GSO Capital Partners; SAC Private Capital Debt provider Morgan Stanley Infrastructure; Veolia Energy North Group; Sankaty Advisors America
Equity provider GSO Capital Partners Equity provider Not Available
Deal description Deal description
Airvana, Inc. (AIRV) has signed a definitive agreement to be acquired by 72 Veolia Energy North America and Morgan Stanley Infrastructure Partners Mobile Holdings, LLC for an implied equity value of approximately US$479m. LP have agreed to acquire Medical Area Total Energy Plant (MATEP) from Airvana will continue to focus on its two major mobile broadband product NSTAR for a cash consideration of US$320m. Veolia and Morgan Stanley lines, EV-DO software and femtocells. The transaction is expected to close in are creating a joint venture to hold MATEP. The sale is in line with NSTAR’s the first quarter of 2010. strategy to concentrate on its core electric and gas delivery businesses and its electric transmission operations. Post acquisition, Veolia will have minority sake in MATEP and will look after its operation activities. The acquisition includes a cogeneration plant that produces electricity, steam and chilled water, and a distribution system that delivers these products to its customers. The transaction is subject to regulatory approval, and expected to close in Q1 or early Q2 2010.
14 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - North America
Deal five: Interstate Hotels & Resorts Inc Deal six: Advisory Research Inc
Announced date 18-Dec-09 Announced date 21-Dec-09
Deal type IBI Deal type Exit
Deal value (US$m) 307 Deal value (US$m) 218
Target information Target information
Company Interstate Hotels & Resorts Inc Company Advisory Research Inc
Description US based hotel management company Description US based fund manager
Financial advisor Barclays Capital
Legal advisor Paul Weiss Rifkind Wharton & Garrison Financial advisor Internal
Legal advisor Goodwin Procter; Kirkland & Ellis
Bidder information Bidder information
Company Hotel Acquisition Company LLC Company Piper Jaffray & Co
Description US based acquisition vehicle created to acquire Description US based financial advisory firm Interstate Hotels & Resorts Inc Financial advisor SunTrust Robinson Humphrey
Financial advisor Bank of America Merrill Lynch; UBS Legal advisor Dechert; Faegre & Benson
Legal advisor Baker & McKenzie; Hogan & Hartson
Seller information Seller information
Company NA Company Brien O’Brien (private investor); TA Associates Inc
Description NA Description US based chief executive officer of Advisory Re- search; US based private equity firm Debt provider Shanghai Jin Jiang International Hotels (Group); Thayer Lodging Group Debt provider NA
Equity provider Not Available Equity provider Not Applicable
Deal description Deal description
Interstate Hotels & Resorts Inc has signed a definitive merger agreement Piper Jaffray & Co, through Piper Jaffray Newco Inc, has agreed to acquire to be acquired by Hotel Acquisition Company LLC for a consideration of Advisory Research Inc from TA Associates Inc and Brien O’Brien for a cash approximately US$307m. The transaction will enable Shanghai Jin Jiang and stock consideration of US$218m. The acquisition is complementary to International Hotels to expand internationally and to get access to an Piper Jaffray’s asset management business FAMCO and will enable Piper international platform. The deal is expected to complete by first quarter of Jaffray to enhance the business. The transaction is subject to customary 2010. regulatory approvals and client consents, and expected to close in the first quarter of 2010.
15 The Brief: 24 December 2009 | Issue 44 Top Deals of the Week - North America
Deal seven: Bluewave Energy Limited Partnership
Announced date 21-Dec-09
Deal type Exit
Deal value (US$m) 200
Target information
Company Bluewave Energy Limited Partnership
Description Canada based petroleum distributor
Financial advisor TD Securities
Legal advisor Not Available
Bidder information
Company Parkland Income Fund
Description Canada based operator of retail and wholesale fuels and convenience store businesses
Financial advisor RBC Capital Markets
Legal advisor Bennett Jones
Seller information
Company Birch Hill Equity Partners Management Inc
Description Canada based private equity firm
Debt provider NA
Equity provider Not Applicable
Deal description
Parkland Income Fund has agreed to acquire Bluewave Energy Limited from Birch Hill Equity Partners Management, Inc. for a consideration of US$200m. The acquisition is in line with Parkland’s strategy to expand its presence into Atlantic Canada and enhance its portfolio offerings.
16 The Brief: 24 December 2009 | Issue 44 Pipeline - Asia-Pacific
Deal Target Target Target Financial Status Possible bidder company Comments value company description country advisor (US$m)
1,000 Siam City Financial Thailand NA PE target CVC, Scotiabank, Scotiabank and Thailand-based subsidiary Bank Services Thanachart Bank Thanachart Bank jointly tabled an offer (47%) for Siam.
801 iNova Pharmaceu- Australia NA PE exit Merck, Sanofi-Aventis, iNova is now considering both a trade Pharma- ticals GlaxoSmithKline, sale and IPO as possible sale options. ceuticals AstraZeneca, Wyeth
125 Master- Industrial Australia Wilson PE exit Barminco CHAMP Ventures has started a dual- myne Services HTM track sales process for Mastermyne, the Australian coalmining services business.
43 John Dis- Consumer India JM PE target NA John Distilleries, the India-based liquor tilleries Foods Financial company, will finalise a private equity deal by Q1 of 2010.
n/a EON Financial Malysia NA PE target NA EON Capital (ECB), the listed Malaysian Capital Services financial group, announced that its major (ECB shareholders have received approval from Bank Negara Malaysia (BNM) to start talks with Hong Leong Bank over a potential equity divestment.
17 The Brief: 24 December 2009 | Issue 44 Pipeline - Europe
Deal Target Target Target Financial Status Possible bidder company Comments value company description country adviser (€m)
898 Pets at Consumer UK n/a Auction Apax Partners, Bain Capital, Pets at Home has attracted first round Home Kohlberg Kravis Roberts bids in excess of £800m (€898m) from and TPG four private equity groups. Apax Partners, Bain Capital, Kohlberg Kravis Roberts (KKR) and TPG are through to the second round of the Pets at Home auction. Bridgepoint Capital is selling the UK- based pet supplies retailer.
593 Shanks Services UK Investec Takeover Carlyle Group Shanks Group has declined to allow Group situation Carlyle Group to conduct due diligence, according to press reports. The listed UK-based waste management company declined to allow Carlyle Group access to its books after the private equity group refused to improve its 135p per share cash takeover bid. Shanks Group said the board would not accept offers below 150 pence per share, which would be the equivalent of around 7x EBITDA. Apax, Terra Firma and Pennon Group have been named as the only other credible potential bidders.
18 The Brief: 24 December 2009 | Issue 44 Pipeline - North America
Deal Target Target Target Financial Status Possible bidder company Comments value company description country advisor (US$m)
5,000 Motorola Home and US NA Auction Kohlberg Kravis Roberts According to recent reports, the networks & Co; TPG Capital LP; networks and mobility division of mobility Blackstone Group Holdings international telecom company Motorola division LLC; Bain Capital LLC; is attracting interest from US-based Silver Lake Partners; Arris private equity firms Bain Capital, TPG Group Inc Capital, Blackstone Group, KKR and Silver Lake Partners. These firms are thought to have submitted initial, non- binding bids this week, however joint bids were not allowed in this round. According to previous report, private equity firms should have access to the debt markets to finance the purchase of this unit, which is valued in the US$4bn and US$5bn range. The business reported 2008 sales of US$10.1bn.
19 The Brief: 24 December 2009 | Issue 44 Statistics - Asia-Pacific
Asia-Pacific buyouts, quarterly Asia-Pacific exit activity, quarterly
Value (LHS) Value (LHS) 12 70 5 25 Volume (RHS) Volume (RHS)
60 10 4 20 Volume of deals Volume of deals 11.4 50 3.9 8 40 3 3.6 15 6 3.2 2.9 30 2 10 5.2 4 4.0 20 1 1.3 5 Value of deals (US$bn) 2 Value of deals (US$bn) 4.0 4.2 10
0 0 0 0 Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD
Asia-Pacific buyout yearly Asia-Pacific secondary buyouts, yearly Asia-Pacific buyout yearly comparison by deal size Value (LHS) 300 8 20 300 > US$501m Volume (RHS) > US$501m 18 28 7 250 28 7.1 250 20 US$251m - US$500m 16 20 US$251m - US$500m Volume of deals 6 24 12 52 12 24 16 14 200 52 19 16 US$101m - US$250m 200 19 30 US$101m - US$250m 5 31 12 30 31 150 US$15m - US$100m 10 4 150 14 103 US$15m - US$100m 91 146 103 101 6 91 101 8 20 3 3.4 US$5m - US$14.9m 100 20 US$5m - US$14.9m
Volume of deal s 100
6 Volume of deal s 61 61 2 2.4 39 23 37 31 39 23 Value not disclosed 4 50 37 Value of deals (US$bn) 31 65 Value not disclosed 50 65 1 20 20 43 29 2 43 1.4 23 43 35 2928 0.9 43 0 23 35 28 0 0 0 2005 2006 2007 2008 2009 YTD 2005 2006 2007 2008 2009 YTD 2005 2006 2007 2008 2009 YTD
152.9 152.9 Rolling 12 months buyout activity Consumer Rolling 12 months buyout activity Financial Services industry sector breakdown by volume Business Services industry sector breakdown by value Consumer
TMT TMT 7% 2% 3% 2% 4% 18% 3% Industrials & Chemicals 4% Financial Services Industrials & Chemicals Rolling4% 12 months buyout activity Consumer Rolling 12 months buyout activity industry sector breakdown by volume Business Services industry sector breakdown by value Consumer 5% Pharma, Medical & Biotech Leisure 9% TMT 40% TMT 2% 3% 7% Financial Services 2% Business Services 4% 18% 3% Industrials & Chemicals 4% Industrials & Chemicals 7% 4% Pharma, Medical & Biotech Energy, Mining & Utilities Leisure Real Estate 5% 9% 9% 40% 18% Financial Services Business Services Construction Energy, Mining & Utilities 7% 8% Energy, Mining & Utilities Real Estate 9% 18% Construction Transportation Energy, Mining & Utilities Pharma, Medical & Biotech 8% 10% Transportation Pharma, Medical & Biotech 14% Other 10% Other Other Other 14% 15% 18% 15% 18%
Greater China Greater China (China, HK, Taiwan, Macau) (China, HK, Taiwan, Macau) Geographic split of buyouts by volume Geographic split of buyouts by value India Japan
Japan North Asia Greater China 4% Greater China (excl Greater China) 6% (China, HK, Taiwan, Macau) 4% (China, HK, Taiwan, Macau) North Asia Geographic split of buyouts by volume Geographic split of buyouts by value South East Asia 14% India (excl Greater China) 5% Japan North Asia Japan 4% (excl Greater China) India 6% 25% Australasia 4% North Asia 5% South East Asia 14% (excl Greater China) South East Asia 16% India Australasia 25% Australasia
South East Asia 16% Australasia
16% 16% 51% 51%
20% 23% 20% 23% 16% 16%
20 The Brief: 24 December 2009 | Issue 44 Statistics - Europe
European buyouts, quarterly European exit activity, quarterly
Value (LHS) Value (LHS) 15 200 15 100 Volume (RHS) Volume (RHS) 175 90 12 12 80 12.5 Volume of deals 11.9 150 Volume of deals 70 125 9 9 60 100 50
6 6 40 6.2 6.7 75 30 5.2 50 5.8 Value of deals ( € bn) 3 Value of deals ( € bn) 3 20 3.8 3.3 25 3.0 10 1.4 0 0 0 0 Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD
European buyout yearly European secondary buyouts, yearly European buyout yearly comparisoncomparison by by deal deal size size Value (LHS) 1,400 75 400 1,400 1,300 > €501m 70 Volume (RHS) 97 110 > €501m 1,300 97 110 70.0 350 1,200 63 62 65 1,200 63 62 105 1,100 68 115 €251m - €500m 66.4 105 60 68 115 33 €251m - €500m Volume of deals 1,100 58 300 3343 55 1,000 58 1,000 110 437 8 900 110 296 78 €101m - €250m 50 60 301 296 €101m - €250m 250 900 60 301 45 800 48 800 4890 291 281 90 291 132 281 40 48.0 700 36 115 €15m - €100m 28 132 200 700 36 115 €15m - €100m 35 600 2854 272 114 600 54 272 128 30 114 150 500 208 128 €5m - €14.9m 500 40 208 €5m - €14.9m 25 Volume of deal s 89 624 400 4017
Volume of deal s 620 624 400 1762 89 556 122 20 124 620 100 300 62 466 556 122 Value of deals ( € bn) Value not disclosed 15 21.3 300 162 124 466 78 Value not disclosed 200 162 346 78 244 346 200 33 319 10 50 244 100 33 319 5 100 125 6.3 0 125 0 0 0 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2005 2006 2007 2008 2009 YTD 2002 2003 2004 2005 2006 2007 2008 2009 YTD
152.9 152.9
Rolling 12 months buyout activity Rolling 12 months buyout activity
industry sector breakdown by volume Industrials & Chemicalsindustry sector breakdown by value TMT
Rolling 12 months buyout activity Rolling 12 months0% buyout activity Consumer Energy, Mining & Utilities 4% 3% industry3% sector breakdown by volume Industrials & Chemicals industry3% sector breakdown by value TMT 5% Business Services Transportation 21% Consumer 7% 0% Energy, Mining & Utilities 4% 3% 22% 5% 3% 3% 5% Business Services 7% Transportation 21% TMT 22% Industrials & Chemicals 5% 5% TMT 9% Industrials & Chemicals 5% Pharma, Medical & Biotech 9% Consumer Pharma, Medical & Biotech Consumer
5% 5% Financial Services Financial Services Financial Services Financial Services 9% 9% 13% Business Services 8% 17% Contruction 13% 8% 17% Contruction Business Services Energy, Mining & Utilities Pharma, Medical & Biotech 10% 12% Leisure Energy, Mining & Utilities 12% Construction Pharma, Medical & Biotech 15% 12% 10% Transportation Leisure 12% Leisure 12% Construction 15% Other 12% Other TransportationUK & Ireland LeisurUK & Iereland
OtherGermanic OtherGermanic Geographic split of buyouts by volume France Geographic split of buyouts by value Italy
1% Benelux Central & Eastern Europe 2% 6% 6% UK & Ireland Nordic UK & Irelan d 7% 23% Benelux Germanic 7% 23% Germanic Iberia Geographic split of buyouts by volume France Iberia Geographic split of buyouts by value Italy 9% 8% Benelux Italy 1% 2% Central & Eas tern Eu rope France 6% 6% Nordic 7% 23% Benelux 7% 23% Central & Eastern Europe Iberia Nordic Iberia 9% 9% 8% Italy Other 12% 21% F ran c e Other Central & Eastern Europe Nordic 17% Other 9% 12% 21% Other
17% 12% 12% 13% 12% 12% 12% 13% 12%
21 The Brief: 24 December 2009 | Issue 44 Statistics - North America
North American buyouts, quarterly North American exit activity, quarterly
Value (LHS) Value (LHS) 20 150 15 140 Volume (RHS) Volume (RHS) 19.4 120 120 14.1 18.0 12 Volume of deals 15 Volume of deals 100
90 9 80 10 60 60 6 9.3 5.3 5.6 40 5 30 3 Value of deals (US$bn) Value of deals (US$bn) 6.1 3.4 20 3.8 2.7
0 0 0 0 Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD Qtr 4 08 Qtr 1 09 Qtr 2 09 Qtr 3 09 Qtr 4 09 QTD
North American buyout yearly North American secondary buyouts, yearly North American buyout yearly comparison by deal size comparison by deal size Value (LHS) 1,000 45 220 1,000 > US$501m 121 > US$501m Volume (RHS) 900 121 40 200 900 112 112 60 800 60 US$251m - US$500m 38.4 180 53 800 53 94 US$251m - US$500m 35 Volume of deals 66 75 700 94 34 160 66 52 75 33.8 700 34 39 62 52 145 US$101m - US$250m 30 31.8 39 62 140 600 62 77 174 145 US$101m - US$250m 48 62 600 77 174 48 32 121 25 120 88 500 32 121 US$15m - US$100m 88 153 500 56 33 US$15m - US$100m 100 30 153 56 20 400 32 33 30 164 30 400 32 54 17 US$5m - US$14.9m 80 164 30 13 54 17 29 US$5m - US$14.9m 15 Volume of deal s 300 478 13 22 37 427 29 96 Volume of deal s 300 18 144 404 478 60 22 19 37 427 96 18 144 404 32 10 20019 90 335 Value not disclosed 28 335 32 Value of deals (US$bn) 40 200 90 Value not disclosed 22 28 219 238 10022 219 238 5 7.2 142 20 100 109 1.7 142 0109 0 0 0 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2005 2006 2007 2008 2009 YTD 2002 2003 2004 2005 2006 2007 2008 2009 YTD
152.9 152.9
Financial Services Rolling 12 months buyout activity Industrials & ChemicalsRolling 12 months buyout activity
industry sector breakdown by volume TMT industry sector breakdown by value Pharma/Medical/Biotech
Consumer Consumer 3% Financial Services Rolling 124% months buyout activity Industrials & Chemicals Rolling 12 months2%1% buyout activity 5% 7% industry sector breakdown by volume Business Services Leisure 7% TMT industry sector breakdown by value Pharma/Medical/Biotech 20% Consumer 8% Consumer 4% 3% Energy, Mining & Utilities 2%1% 32% Business Services 5% 7% 7% Business Services Leisure 7% 20% Pharma, Medical & Biotech 8% Energy/Mining/Utilities Energy, Mining & Utilities 32% Business Services 7% 9% Pharma, Medical & Biotech Financial Services Energy/Mining/Utilities Industrials and Chemicals 7% 9% Financial Services Industrials and Chemicals 7% Construction TMT Construction TMT 9% 9% 16% 16% Leisure Leisure Construction Construction 15% 15% 12% Transport 10% 12% Transport 15% Transport 10% 10% Transport 15% 10%
22 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Asia-Pacific
Financial houses - ranked by value
Rank Company name Value (US$m) Number of deals
1 Nomura Holdings Inc 3,462 6
2 Goldman Sachs 3,155 3
3 PricewaterhouseCoopers 1,242 3
4 Bank of China International Holdings Co. Ltd. 1,200 1
5= Mizuho Financial Group Inc 1,047 1
5= Morgan Stanley 1,047 1
5= UBS Investment Bank 1,047 1
8 ING 1,023 2
9 Citigroup Inc 1,017 2
10 HSBC Bank plc 906 1
Financial houses - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Nomura Holdings Inc 3,462 6
2 Ernst & Young 365 5
3 Goldman Sachs 3,155 3
4 PricewaterhouseCoopers 1,242 3
5 Deloitte 809 3
6 Macquarie Group Limited 62 3
7 ING 1,023 2
8 Citigroup Inc 1,017 2
9 DBS Bank Ltd 475 2
10 KPMG 131 2
Financial houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is Asia-Pacific, excluding lapsed and withdrawn deals. The firms are advising the bidder.
23 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Asia-Pacific
Legal houses - ranked by value
Rank Company name Value (US$m) Number of deals
1 Herbert Smith/Gleiss Lutz/Stibbe 2,381 1
2 Linklaters 1,843 5
3 Freshfields Bruckhaus Deringer 1,720 2
4 Nagashima Ohno & Tsunematsu 1,595 3
5 TMI Associates 1,593 3
6 Kim & Chang 1,262 5
7 Bae Kim & Lee 1,163 3
8 Clifford Chance 1,020 3
9 Simpson Thacher & Bartlett LLP 906 1
10 Jun He Law Offices 789 1
Legal houses - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Linklaters 1,843 5
2 Kim & Chang 1,262 5
3 Lee & Ko 678 4
4 AZB & Partners 62 4
5 Nishith Desai Associates 37 4
6 Trilegal 37 4
7 Nagashima Ohno & Tsunematsu 1,595 3
8 TMI Associates 1,593 3
9 Bae Kim & Lee 1,163 3
10 Clifford Chance 1,020 3
Legal houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is Asia-Pacific, including lapsed and withdrawn deals. The firms are advising the bidder.
24 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Asia-Pacific
Buyouts - ranked by volume
Rank Company name Value (US$m) Number of deals
1 The Carlyle Group 650 5
2 Sequoia Capital 415 5
3 Hopu Investment Management 10,489 3
4 Temasek Holdings 7,851 3
5 Kohlberg Kravis Roberts & Co 2,122 3
6 Affinity Equity Partners 2,072 3
7 Standard Chartered Private Equity 134 3
8 Legend Capital 128 3
9 Navis Investment Partners (Asia) 60 3
10 Intel Capital 32 3
Exits - ranked by volume
Rank Company name Value (US$m) Number of deals
1 TPG Capital LP 2,304 2
2 Citigroup Capital Partners Japan Ltd 2,227 2
3 IDG Technology Venture Investment LLC 572 2
4 Ashmore Group Plc 571 2
5 Telecom Investments (Mauritius) Ltd 464 2
6 Advantage Partners LLP 386 2
7= MKS Partners Ltd 275 2
7= Unison Capital Inc 275 2
9 CSV Capital Partners 96 2
10 Archer Capital 94 2
PE firms as bidder on buyout deals announced between 23/12/2008 and 22/12/2009. PE firms to exit deals announced between 23/12/2008 and 22/12/2009. Based on target geography being Asia-Pacific. Lapsed and withdrawn bids are excluded.
25 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Europe
Financial houses - ranked by value
Rank Company name Value (€m) Number of deals
1 JPMorgan 4,406 7
2 UniCredit Group 3,673 5
3 Barclays Capital 3,261 2
4 HSBC Bank 3,070 4
5 RBC Capital Markets 3,033 2
6 Credit Suisse 2,805 4
7 Deutsche Bank 2,082 2
8 Goldman Sachs 1,754 5
9 BNP Paribas 1,716 1
10 Lazard 1,709 8
Financial houses - ranked by volume
Rank Company name Value (€m) Number of deals
1 PricewaterhouseCoopers 405 12
2 KPMG 340 10
3 Deloitte 84 9
4 Lazard 1,709 8
5 JPMorgan 4,406 7
6 Ernst & Young 850 7
7 Close Brothers Group 552 7
8 BDO Corporate Finance 28 7
9 UniCredit Group 3,673 5
10 Goldman Sachs 1,754 5
Financial houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is European, excluding lapsed and withdrawn deals. The firms are advising the bidder.
26 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Europe
Legal houses - ranked by value
Rank Company name Value (€m) Number of deals
1 Linklaters 3,883 17
2 Freshfields Bruckhaus Deringer 3,080 13
3 Hengeler Mueller 2,476 3
4 Allen & Overy 2,421 14
5 Vinge 2,190 7
6 Poellath & Partners 2,173 7
7 Slaughter and May 1,646 2
8 Sullivan & Cromwell 1,564 3
9 Bojovic Dasic Kojovic 1,493 1
10 Bird & Bird 1,446 2
Legal houses - ranked by volume
Rank Company name Value (€m) Number of deals
1 Linklaters 3,883 17
2 Allen & Overy 2,421 14
3 Freshfields Bruckhaus Deringer 3,080 13
4 SJ Berwin 588 12
5 Loyens & Loeff 870 11
6 Ashurst 1,291 9
7 CMS 714 9
8 Simmons & Simmons 493 9
9 Clifford Chance 586 8
10 White & Case 411 8
Legal houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is European, including lapsed and withdrawn deals. The firms are advising the bidder.
27 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - Europe
Buyouts - ranked by volume
Rank Company name Value (€m) Number of deals
1 Lloyds TSB Development Capital 446 12
2 EQT Partners 2,619 6
3 AXA Private Equity 2,086 6
4 Gimv 202 6
5 BLUO SICAV 109 5
6 Advent International Corporation 703 4
7 Barclays Private Equity 475 4
8 HgCapital 454 4
9 Waterland Private Equity Investments 436 4
10 Altor Equity Partners 322 4
Exits - ranked by volume
Rank Company name Value (€m) Number of deals
1 3i Group Plc 142 11
2 Arques Industries 134 5
3 Cinven Limited 2,240 4
4 NPM Capital 30 4
5 Candover Investments 2,894 3
6 Inflexion Private Equity Partners 230 3
7 N.I. Partners 159 3
8 Apax Partners 104 3
9 Innovacom 42 3
10 AXA Private 40 3
PE firms as bidder on buyout deals announced between 23/12/2008 and 22/12/2009. PE firms to exit deals announced between 23/12/2008 and 22/12/2009. Based on target geography being European. Lapsed and withdrawn bids are excluded.
28 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - North America
Financial houses - ranked by value
Rank Company name Value (US$m) Number of deals
1 Bank of America Merrill Lynch 23,809 6
2 Barclays Capital 11,885 5
3 Goldman Sachs 9,082 8
4 JPMorgan 5,443 5
5 RBC Capital Markets 5,074 5
6 Evercore Partners 5,057 1
7 Morgan Stanley 5,021 7
8 Deutsche Bank AG 3,950 3
9 Blackstone Group Holdings 3,200 2
10 HSBC Bank plc 2,600 1
Financial houses - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Goldman Sachs 9082 8
2 Morgan Stanley 5021 7
3 Credit Suisse 2236 7
4 Bank of America Merrill Lynch 23809 6
5 Barclays Capital 11885 5
6 JPMorgan 5443 5
7 RBC Capital Markets 5074 5
8 UBS Investment Bank 2144 4
9 Deutsche Bank AG 3950 3
10 WestLB Mergers & Acquisitions 1597 3
Financial houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is North American, excluding lapsed and withdrawn deals. The firms are advising the bidder.
29 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - North America
Legal houses - ranked by value
Rank Company name Value (US$m) Number of deals
1 Cleary Gottlieb Steen & Hamilton 19,526 6
2 Weiner Brodsky Sidman Kider PC 13,900 1
3 Simpson Thacher & Bartlett 11,078 12
4 Sullivan & Cromwell 6,252 7
5 Ropes & Gray 5,157 3
6= Dechert 4,675 8
6= Cadwalader, Wickersham & Taft 4,404 1
8 SJ Berwin 4,404 1
9 Weil Gotshal & Manges 4,090 8
10 Latham & Watkins 3,769 17
Legal houses - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Kirkland & Ellis 2,969 38
2 Jones Day 1,081 20
3 Latham & Watkins 3,769 17
4 Simpson Thacher & Bartlett 11,078 12
5 Skadden Arps Slate Meagher & Flom 1,568 9
6 Dechert 4,675 8
7 Weil Gotshal & Manges 4,090 8
8 Stikeman Elliott 559 8
9 DLA Piper 466 8
10 Sullivan & Cromwell 6,252 7
Legal houses advising on buyout deals during 23/12/2008 and 22/12/2009, where target is North American, including lapsed and withdrawn deals. The firms are advising the bidder.
30 The Brief: 24 December 2009 | Issue 44 League & Activity Tables - North America
Buyouts - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Platinum Equity 79 6
2 Golden Gate Capital 528 5
3 TPG Capital 5,370 4
4 ABS Capital Partners 99 4
5 Marlin Equity Partners 43 4
6 Catterton Partners 0 4
7 Blackstone Group Holdings 3,200 3
8 General Atlantic 2,800 3
9 Advent International Corporation 2,223 3
10 The Carlyle Group 940 3
Exits - ranked by volume
Rank Company name Value (US$m) Number of deals
1 Benchmark Capital 1,581 10
2 Accel Partners & Co 1,732 8
3 Sequoia Capital 2,155 6
4 New Enterprise Associates 1,305 6
5 American Capital 571 6
6 US Venture Partners 418 6
7 Intel Capital 103 6
8 Draper Fisher Jurvetson 750 5
9 Warburg Pincus 407 5
10 Polaris Venture Partners 398 5
PE firms as bidder on buyout deals announced between 23/12/2008 and 22/12/2009. PE firms to exit deals announced between 23/12/2008 and 22/12/2009. Based on target geography being US or Canadian. Lapsed and withdrawn bids are excluded.
31 The Brief: 24 December 2009 | Issue 44 Top Deals - Asia-Pacific
Top 10 Asia-Pacific Buyout deals - rolling 12 months ending 23 December 2009
Announced date Target company Bidder company Deal value (US$m)
13-May-09 China Construction Bank Corporation (5.78% BOCI Asia Limited; China Life Insurance (Group) 7,319 stake) Company; China Life Insurance (Overseas) Company Limited; China Life Insurance Company Limited ; Hopu Investment Management Co Ltd; Temasek Holdings Pte Ltd
14-Jan-09 Bank of China Limited (4.26% stake) Hopu USD Master Fund I LP 2,381
12-Jun-09 Shenzhen Development Bank Co. Ltd (16.76% Ping An Insurance (Group) Company of China Ltd 2,278 stake)
7-May-09 Oriental Brewery Co. Ltd. Affinity Equity Partners; Kohlberg Kravis Roberts & Co 1,812
16-Sep-09 kbro co Limited (60.00% stake) Taiwan Mobile Company Limited 1,729
19-Mar-09 USJ Co Ltd SG Investment KK 1,460
30-Jul-09 Nikko Asset Management Co Ltd (98.55% The Sumitomo Trust & Banking Co Ltd 1,180 stake)
14-Nov-09 Bellsystem24 Inc (93.50% stake) Bain Capital LLC 1,047
29-Apr-09 Hebei Meihua Monosodium Glutamate Group Wuzhou Minovo Co Ltd 848 Co Ltd
6-Jul-09 China Mengniu Dairy Company Limited (20.03% COFCO (Hong Kong) Limited; Hopu Investment 789 stake) Management Co Ltd
32 The Brief: 24 December 2009 | Issue 44 Top Deals - Europe
Top 10 European Buyout deals - rolling 12 months ending 22 December 2009
Announced date Target company Bidder company Deal value (€m)
11-Dec-09 Springer Science + Business Media Deutschland EQT Partners AB; and GIC Special Investments Pte 2,240 GmbH Ltd
29-May-09 Enel Rete Gas SpA (80% stake) AXA Private Equity; and F2i SGR SpA 1,716
21-Oct-09 Gatwick Airport Ltd Global Infrastructure Partners 1,609
15-Oct-09 Anheuser-Busch InBev (Central European CVC Capital Partners Limited 1,493 operations)
1-Sep-09 Skype Technologies SA (70% stake) Andreessen Horowitz; Canada Pension Plan 1,424 Investment Board; Index Ventures; and Silver Lake Partners
8-Dec-09 Marken Limited Apax Partners LLP 1,080
12-Oct-09 Constantia Packaging AG (75% stake) Sulipo Beteiligungsverwaltungs GmbH 893
30-Sep-09 Invitel Holdings A/S (64.60% stake) Mid Europa Partners LLP 740
19-Jun-09 Wood Mackenzie Limited Charterhouse Capital Partners LLP 654
12-Oct-09 GFKL Financial Services AG (80% stake) Advent International Corporation 584
33 The Brief: 24 December 2009 | Issue 44 Top Deals - North America
Top 10 North American Buyout deals - rolling 12 months ending December 22, 2009
Announced date Target company Bidder company Deal value (US$m)
19-Mar-09 IndyMac Federal Bank FSB OneWest Bank FSB 13,900
5-Nov-09 IMS Health Inc IMS Health Consortium 5,057
7-Oct-09 JohnsonDiversey Inc (46.00% stake) Clayton, Dubilier & Rice Inc 2,600
7-Oct-09 SeaWorld Parks & Entertainment Blackstone Capital Partners V LP 2,300
30-Mar-09 Fifth Third Processing Solutions LLC (51.00% Advent International Corporation 1,811 stake)
8-Nov-09 TASC Inc General Atlantic LLC ; Kohlberg Kravis Roberts & Co 1,650
10-Aug-09 Dynegy Inc (five peaking and three combined- LS Power Group 1,498 cycle generation assets)
23-Sep-09 SkyTerra Communications Inc (51.00% stake) Sol Private Corp. 1,206
3-Nov-09 Landry’s Restaurants Inc (44.90% stake) Fertitta Holdings Inc 1,200
29-Dec-08 Chesapeake Corporation Irving Place Capital; Oaktree Capital Management L.P 1,022
34 The Brief: 24 December 2009 | Issue 44 Investor Profile: Affinity Equity Partners
Affinity Equity Partners
Description Countries Sectors
Hong Kong-based private equity firm investing in companies with enterprise Australia, Hong Kong, Indonesia, Financial Services value or net sales of US$100-500m. The investments are made in consumer- South Korea, Singapore related goods and services, value-added manufacturing, healthcare, financial services and business services sectors.
Fund name Launched date Size (m)
Affinity Asia Pacific Fund II LP NA US$700.00
Countries invested in Countries invested in
South Korea 2 current 5 exited China 2 current 0 exited
Singapore 3 current 0 exited Hong Kong 0 current 1 exited
Australia 3 current 0 exited Thailand 0 current 1 exited
Sectors invested in Sectors invested in
Computer: Semiconductors 1 current 3 exited Financial Services 1 current 0 exited
Automotive 1 current 1 exited Industrial automation 1 current 0 exited
Transportation 2 current 0 exited Industrial: Electronics 1 current 0 exited
Consumer: Other 1 current 1 exited Media 1 current 0 exited
Consumer: Retail 1 current 1 exited Consumer: Foods 0 current 1 exited
35 The Brief: 24 December 2009 | Issue 44 Investor Profile: Affinity Equity Partners
Potential Investments
Companies Dominant country Dominant sector Estimated size (£m) Last update
Kumho Rent-a-car South Korea Financial Services 60m - 300m 16-Nov-09
Nanshan Life Insurance Taiwan Financial Services > 300m 4-Jul-09
Exits - since 1 January 2008
Portfolio companies Buy Buy Sell Sell Announced Mths Buy Exit Dominant Dominant sector value stake value stake date held type type country (£m) (%) (£m) (%)
THEFACESHOP KOREA Co Ltd n/d 70.2% 181.85 70.2% 24-Nov-09 49 IBI TS South Korea Consumer: Other
Mando Corporation 272.15 n/a 401.38 n/a 21-Jan-08 96 IBO SBO South Korea Automotive
Himart Co Ltd 362.77 n/a 1,056.89 n/a 10-Jan-08 35 IBI TS South Korea Consumer: Retail
36 The Brief: 24 December 2009 | Issue 44 Notes & Contacts
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