Private equity continued to flex its acquisition muscle last week, playing in four of the top ten deals, while JPMorgan demonstrated its dealmaking prowess by advising on the three largest deals of the week, according to data provided to CFO.com by mergermarket. For finance executives, however, the most notable deal was probably Oracle’s proposed acquisition of Hyperion. If consummated, that deal would continue to shrink the number of business software providers (see CFO.com’s related coverage in “Oracle Foretells Further Consolidation“).
Last week also saw the second-largest acquisition transaction of the year so far — TXU — which was also the largest private equity buyout ever. The TXU deal is also notable because it is partly being financed using an equity bridge, a controversial method in which the financing banks provide equity from their own balance sheet and share more of the risk.
Kohlberg Kravis Roberts; TPG; and Goldman Sachs to Buy TXU for $44.1 Billion
The deal will pay $69.25 per share of TXU Corp. Other equity providers are GS Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley.
Seller financial advisor: Credit Suisse; Lazard
Buyer financial advisor: Citigroup; Goldman Sachs; JPMorgan; Lehman Brothers; Morgan Stanley
Seller legal advisor: Cravath Swaine & Moore; Dewey Ballantine (Advising Credit Suisse); Sullivan & Cromwell
Buyer legal advisor: Covington & Burling; Fried Frank Harris Shriver & Jacobson (Advising Goldman Sachs); Hunton & Williams; Simpson Thacher & Bartlett; Stroock & Stroock & Lavan; Vinson & Elkins
Fertitta Colony Partners to Purchase Station Casinos for $7.1 Billion.
The deal will pay $90 per share of Station Casinos. (Read CFO magazine’s July 2006 interview with Station Casinos CFO Glenn Christenson.)
Seller financial advisor: Bear, Stearns
Buyer financial advisor: Deutsche Bank; JPMorgan
Seller legal advisor: Kummer Kaempfer Bonner & Renshaw; Skadden Arps Slate Meagher & Flom
Buyer legal advisor: Latham & Watkins (Advising Deutsche Bank); Milbank Tweed Hadley & McCloy; Willkie Farr & Gallagher; Brownstein Hyatt Farber Schreck
Centro Properties Group to Acquire New Plan Excel Realty Trust for $6.2 Billion
Centro Properties Group will pay $33.15 per share in cash, valuing the entire share capital of the company at approximately $3.7 billion. The total value of the transaction is approximately $6.2 billion, including the assumption of debt and preferred stock.
Seller financial advisor: JPMorgan; Merrill Lynch
Buyer financial advisor: Internal
Seller legal advisor: Hogan & Hartson
Buyer legal advisor: Skadden Arps Slate Meagher & Flom
Fortis to Buy Kinder Morgan’s Terasen for $3.1 Billion
The deal’s total consideration is approximately $3.1 billion.
Seller financial advisor: TD Securities
Buyer financial advisor: CIBC World Markets
Seller legal advisor: Not Available
Buyer legal advisor: Davis Polk & Wardwell; Stikeman Elliott; Davies Ward Phillips & Vineberg
Oracle to Acquire Hyperion Solutions for $2.8 Billion
The deal will pay $52 per share of Hyperion.
Seller financial advisor: Morgan Stanley
Buyer financial advisor: Credit Suisse
Seller legal advisor: Skadden Arps Slate Meagher & Flom
Buyer legal advisor: Davis Polk & Wardwell; Latham & Watkins
EBG Holdings to buy Madison Dearborn Partners’ Astoria Generating Company Holdings for about $2.3 Billion
The newly merged entity will be named US Power Generating Co. and will be valued at around $5 billion. Upon completion of the transaction, current members of EBG Holdings and Astoria Generating will respectively hold shares representing 54% and 46% of the equity in the merged entity.
Seller financial advisor: Credit Suisse
Buyer financial advisor: Lehman Brothers
Seller legal advisor: Kirkland & Ellis
Buyer legal advisor: Debevoise & Plimpton
Itron to buy LBO France’s Actaris Metering Systems for $1.6 Billion
Itron Inc has agreed to acquire all the stock and convertible bonds of Actaris Metering Systems from LBO France for $1.6 billion.
Seller financial advisor: Internal
Buyer financial advisor: UBS
Seller legal advisor: Mayer Brown Rowe & Maw
Buyer legal advisor: Gibson Dunn & Crutcher; Perkins Coie; Latham & Watkins (Advising UBS)
Apax Partners and Morgan Stanley Principal Investments to purchase Hub International Limited for $1.2 Billion
Hub International has signed a definitive agreement to be acquired by Maple Tree Acquisition Corp (acquisition vehicle for Apax Partners and Morgan Stanley Principal Investments). The deal will pay $40.00 per share of Hub International.
Seller financial advisor: Merrill Lynch; Scotia Capital
Buyer financial advisor: Morgan Stanley; Stephens
Seller legal advisor: Blake Cassels & Graydon; Goodmans; Shearman & Sterling
Buyer legal advisor: Ropes & Gray; Sullivan & Cromwell (Advising Morgan Stanley); Stikeman Elliott
National Titanium Dioxide to buy Lyondell Chemical’s Millennium Chemicals for $1.2 Billion
The deal’s total consideration for the inorganic chemicals business is $1.2 billion, including the assumption of debt.
Seller financial advisor: Citigroup
Buyer financial advisor: HSBC Bank
Seller legal advisor: Baker Botts; Dewey Ballantine (Advising Citigroup)
Buyer legal advisor: King & Spalding
EQT Partners AB to acquire Hilton Hotels’ Scandic Hotels AB for $1.0 Billion
The deal’s consideration is $1 billion.
Seller financial advisor: Citigroup
Buyer financial advisor: CIBC World Markets; Handelsbanken Capital Markets; KPMG Corp Fin
Seller legal advisor: Mannheimer Swartling
Buyer legal advisor: Vinge