M&A

M&A Roundup: Week Ending March 30

Management buyouts for Advanstar and HealthSouth's Surgery Division and a private equity exit for Goldman Sachs, which sells off its two-year old h...
Tim ReasonApril 2, 2007

Three of the top ten North American deals last week were leveraged buyouts, according to data provided to CFO.com by mergermarket. There were also three private equity exits, further demonstrating that initial public offerings are no longer the private equity market’s main method of cashing out on portfolios. For example, Goldman Sachs sold from Horizon Wind Energy, which the investment bank had purchased almost exactly two years ago for an undisclosed sum, to Energias de Portugal for $2.3 billion. The largest deal of the week was Xstrata’s $3.3bn acquisition of LionOre, a Canadian mining company.

That wasn’t the only good news for Goldman Sachs, which also was the advisor on four of last week’s top deals. Skadden Arps Slate Meagher & Flom were legal counsel to three of last week’s top ten.

Xstrata Plc to buyLionOre Mining International for $3.3 billion

Xstrata will pay $16.54 per each LionOre share in cash.
Seller financial advisor: JPMorgan
Buyer financial advisor: Macquarie Bank; TD Securities
Seller legal advisors: McCarthy Tetrault
Buyer legal advisors: Davies Ward Phillips & Vineberg; Freshfields Bruckhaus Deringer

Energias de Portugal SA to buy Horizon Wind Energy from Goldman Sachs for $2.3 billion

Energias de Portugal SA will finance the transaction with debt and proceeds from a tax equity partner. The total cash consideration to be paid at the closing of the transaction will be adjusted for capital expenditures, which are currently estimated $600 million
Seller financial advisor: Goldman Sachs
Buyer financial advisor: Citigroup
Seller legal advisors: Fried Frank Harris Schriver & Jacobson
Buyer legal advisors: Chadbourne & Parke; Morais Leitao Galvao Teles Soares Da Silva & Associados; Skadden Arps Slate Meagher & Flom

United States Steel Corp to buy Lone Star Technologies Inc for $1.9 billion

United States Steel Corporation will pay $67.50 per share of Lone Star, a premium of 39.32 percent based on Lone Star’s closing share price on March 28. The implied equity value of the transaction is approximately $2.068 billion.
Seller financial advisor: Goldman Sachs
Buyer financial advisor: JPMorgan
Seller legal advisors: Sullivan & Cromwell (Advising Goldman Sachs); Weil Gotshal & Manges
Buyer legal advisors: Morgan Lewis & Bockius

The Carlyle Group LLC to buy Goodyear Tire & Rubber’s Engineered Products Assets for $1.5 billion

Carlyle Partners IV LP will pay cash for the Goodyear division.
Seller financial advisor: JPMorgan
Buyer financial advisor: Lehman Brothers
Seller legal advisors: Covington & Burling; Thompson Hine
Buyer legal advisors: Latham & Watkins; Torys

Beckman Coulter Inc to buy Biosite Inc for $1.3 billion

Beckman Coulter will pay $85 per share of Biosite, a premium of 53.5 percent based on Biosite’s closing share price on March 23 of $55.38. The implied equity value of the deal is approximately $1.36 billion.
Seller financial advisor: Goldman Sachs
Buyer financial advisor: Morgan Stanley
Seller legal advisors: Cooley Godward Kronish; Sullivan & Cromwell (Advising Goldman Sachs)
Buyer legal advisors: Latham & Watkins; Skadden, Arps, Slate, Meagher & Flom (Advising Morgan Stanley)

UTC Fire & Security to buy Initial Electronic Security Group from Rentokil Initial plc for $1.2 billion

UTC Fire & Security will pay $1.17 billion in cash for the acquisition, which is intended to help UTC to expand its customer base in Europe.
Seller financial advisor: Greenhill & Co

Citigroup Venture Capital Equity Partners Ltd; New York Life Capital Partners; and Veronis Suhler Stevenson to buy Advanstar Inc from DLJ Merchant Banking Partners for $1.1 billion

The management of Advanstar Inc has agreed to acquire the company in a management buy out transaction backed by a consortium of private equity firms for a cash consideration of $1.142 billion. Advanstar has also made a tender offer and consent solicitation for its outstanding 15 percent senior discount notes, 12 percent senior subordinated notes and 10-3/4 percent senior priority senior secured notes.
Seller financial advisor: Credit Suisse
Buyer financial advisor: Not Available
Seller legal advisors: Davis Polk & Wardwell
Buyer legal advisors: Proskauer Rose; Torys

TPG LLP to buy HealthSouth’s Surgery Division for $945 million

TPG LLP has agreed to back the management buyout of the Surgery Division of HealthSouth Corporation in a transaction valued at $945 million. The consideration includes $920 million in cash and $25-30 million in the form of equity interest.
Seller financial advisor: Goldman Sachs
Buyer financial advisor: Internal
Seller legal advisors: Skadden, Arps, Slate, Meagher & Flom; Bradley, Arant Rose & White; Reed Smith (Regulatory Counsel)
Buyer legal advisors: Cleary Gottlieb Steen & Hamilton; Proskauer Rose (Healthcare Counsel)

Travelex Plc to buy Ruesch International Inc from Welsh, Carson, Anderson & Stowe for $440 million

The transaction is expected to complete in 2007.
Seller financial advisor: Lane, Berry & Co
Buyer financial advisor: Credit Suisse; Wachovia
Seller legal advisors: Ropes & Gray
Buyer legal advisors: Freshfields Bruckhaus Deringer

First Data to buy PolCard SA from GTECH Corporation; and Innova Capital Spzoo for $325 million

First Data International, a subsidiary of First Data Corp, has agreed to acquire PolCard SA from GTECH Corporation and Innova Capital for a cash consideration of $325 million. Gtech and IC currently hold 74.43 percent and 25.24 percent stake respectively in PolCard, which will be transferred to First Data, while Polish Banks Association will continue to hold its 0.3 percent stake.
Seller financial advisor: Credit Suisse

source: mergermarket