Deals: Welcome Back, Private Equity

Four private-equity deals of $1 billion or more gave a boost to the week's acquisition activity, bringing the value of North American dealmaking to $11.28 billion. In the prior week there were the same number of transactions — 36 — but their total worth was 18 percent lower.

The leading deal was the $6.67-billion sale of Washington-state utility Puget Energy Inc. to a consortium of Australian and Canadian interests led by Macquarie Bank Ltd. In the second-largest buyout, Houston-based heating, ventilation, and air conditioning (HVAC) company Goodman Global Inc. went to Hellman & Friedman LLC for $2.56 billion. In the third of the 10 largest North American deals last week, investor Kirk Kerkorian's Tracinda Corp. bought 16 percent of San Antonio-based energy company Tesoro Corp. for $1.4 billion, according to data provided to CFO.com by mergermarket .

The week's deals brought year-to-date M&A activity to $1.40 trillion, compared to $1.15 trillion through Oct. 28, 2006. There have been 3,796 proposals so far in 2007, down from 4,038 at the same time last year.

Macquarie Bank, Canada Pension Plan Investment Board, British Columbia Investment Management Corp., and Alberta Investment Management to buy Puget Energy for $6.67 billion
The consortium of "infrastructure investors" offered $30 a share for Bellevue, Wash.-based Puget Energy, a premium of 25.3 percent. Puget's board has definitively agreed to the deal. Puget is the parent company of Puget Sound Energy, a regulated utility that provides electric and natural gas service primarily to western Washington's Puget Sound region. The Macquarie Infrastructure Partners unit of Australia's Macquarie Bank has joined with the Toronto-based Canadian pension-plan board and the Victoria-based British Columbia Investment Management and Alberta-based Alberta Investment Management for the deal. It provides Puget with $5 billion in capital over the next five years. The transaction is expected to close in next year's second half.
Seller financial advisor: Morgan Stanley
Bidder financial advisor: Macquarie Bank
Seller legal advisor: Dewey & LeBoeuf; Perkins Coie
Bidder legal advisor: Latham & Watkins

Hellman & Friedman to buy Goodman Global for $2.56 billion
The board of Goodman Global, the second-largest U.S. HVAC concern making producers for residential and light commercial use, approved the deal with San Francisco-based Hellman & Friedman. The price was $25.60 a share, a premium of 17.2 percent. Stockholders with a majority of Goodman’s outstanding shares have agreed to vote in favor of the transaction, which will be financed with $1.1 billion in commitments for senior secured credit facilities from Barclays Capital, Calyon New York, GE Commercial Finance, and certain vehicles managed by GSO Capital Partners LP, along with $500 million in commitments for senior subordinated financing from vehicles managed by GSO and Farallon Capital Management LLC. The transaction is expected to close in the next first quarter.
Seller financial advisor: Goldman Sachs; JPMorgan
Bidder financial advisor: Internal
Seller legal advisor: O'Melveny & Myers; Sullivan & Cromwell (Advising Goldman Sachs)
Bidder legal advisor: Simpson Thacher & Bartlett

Tracinda to buy 16 percent of Tesoro for $1.4 billion
The Beverly Hills, Calif.-based investment vehicle owned by U.S. entrepreneur Kerkorian made the cash offer of $64 per share for 21.9 million Tesoro shares. The offer represents a discount of 11.9 percent on the share price as of Oct. 25, but a premium of 28.8 percent over the closing price on Sept. 26, a month prior to the announcement. Tracinda already holds about 5.5 million shares, or roughly 4 percent, or Tesoro.
Seller financial advisor: Not Available
Bidder financial advisor: Not Available
Seller legal advisor: Fulbright and Jaworski
Bidder legal advisor: Christensen, Glaser, Fink, Jacobs, Weil & Shapiro

Apollo Management LP to buy Regent Seven Seas Inc.from Carlson Cos. for $1 billion
Purchase, N.Y.-based private equity firm Apollo won an auction to acquire Fort Lauderdale, Fla.-based cruise operator Regent. Seller Carlson is a Minnetonka, Minn.-based leisure services concern. DVB Bank AG has provided debt to finance the transaction. CVC Global Capital and KSL Capital Partners are other parties who were interested in this transaction.
Seller financial advisor: Goldman Sachs
Bidder financial advisor: Not Available
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

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