Posted Jun 26th 2009 10:00AM by James Cullen
Filed under: Deals, Private equity industry
From 2004 to 2007, the titans of private equity tapped yield-hungry investors to raise massive amounts of buyout capital. Eager to deploy this easy money, they spent billions taking huge companies private, shattering records for mega-deals only to see them surpassed a few weeks later. The list of companies taken private includes many famous names: Toys 'R' Us, Hertz, Harrah's Entertainment, Tribune Co., and TXU, the Texas utility that set a record for buyouts in a deal worth over $44 billion.
Now many of those companies are staggering under the sheer weight of their debt. Bond investors, who once eagerly poured their money into the high-yield debt that made leveraged buyouts possible, have seen their holdings decimated. With the bonds that helped pay for some of the biggest private equity deals trading at less than 50 cents on the dollar, some worry whether the companies can stay afloat.
For details on eight big buyout targets that are now teetering on the brink, click through the following gallery.
Continue reading Going, going, gone? Eight big buyouts on the brink
Posted Jun 17th 2009 6:10PM by Jonathan Berr
Filed under: Deals, Public or private?
Eddie Bauer Holdings Inc. (NASDAQ: EBHI), the once-proud seller of expensive, sporty outerwear, today filed for Chapter 11 bankruptcy protection, becoming the latest retail chain destroyed by the worst financial crisis since the Great Depression (Wall Street Journal, subscription required).
Under the terms of the bankruptcy, Eddie Bauer has agreed to sell its assets to CCMP Capital Advisors LLC., a private equity firm, for $202 million in cash. The investor, which supported debtor-in-possession financing of $100 million, plans to retain most of Eddie Bauer's employees and continue to operate most of its 371 stores.
Continue reading CCMP Capital to maintain bankrupt Eddie Bauer as going concern
Posted Jun 10th 2009 2:20PM by Tom Johansmeyer
Filed under: Deals, Venture capital industry, Investments
We're still in the early stages of this trend, but it's pretty clear that the green energy sector is fast becoming a venture capital darling. Today, for example, five deals were announced in one publication alone (three VC, two acquisitions). The three investments account for $47.4 million in VC investment. And only yesterday, Solazyme picked up another $57 million in its Series C round.
In what remains a capital-constrained market, the cash is still flowing. In the private equity space, investments in clean technologies have remained steady from 2007 to 2008, despite broader economic calamity. Such commitment this early in the game may hint at what the next bubble will be.
Continue reading Green energy deals come at a brisk pace
Posted Jun 2nd 2009 4:10PM by Trey Thoelcke
Filed under: Deals, Texas Pacific Group
It was just a couple of weeks ago that BusinessWeek reported on Micron Technology Inc.'s (NASDAQ: MU) effort to diversify with an acquisition of DisplayTech, a producer of display screens such as those used as viewfinders for digital cameras. Micron, one of the largest memory chip makers in the semiconductor industry, has been reporting losses over the past two years due to steep declines in the price of computer memory.
DisplayTech has been developing a new technology called "pico projection," which can produce crisp images from small devices. This innovation could make it possible to deliver a business presentation from a BlackBerry without having to lug along a laptop and full-sized projector.
Continue reading TPG and Riverwood Capital like the look of Aptina Imaging
Posted May 18th 2009 1:10PM by Trey Thoelcke
Filed under: Deals, Movers and shakers, The Blackstone Group, The Carlyle Group, Private equity industry
In what could be the most watched private equity deal of the year, a consortium of buyout firms led by billionaire investor Wilbur L. Ross has set its sights on BankUnited Financial Corp. (NASDAQ: BKUNA), says the Wall Street Journal (subscription required). The consortium includes Carlyle Group and Blackstone Group (NYSE: BX).
Earlier this year, federal regulators declared that the Florida-based lender was "critically undercapitalized" and demanded that it find a buyer or raise new capital. While regulators have traditionally favored other lenders in sales of banks, if Ross's group is successful, it would not only be one of the largest acquisitions in the financial-services sector made by private equity, but could also signal a shift in the government's attitude toward private-equity buyers of banks.
Continue reading BankUnited deal to open the door for private equity to acquire banks?
Posted Apr 20th 2009 2:40PM by Zac Bissonnette
Filed under: Deals
Just as foreclosures account for a record share of the real estate market, foreclosed companies are also one of the few areas of activity in the private equity space.
Sun Capital Partners took Stila Cosmetics private back in 2006, but defaulted on loans from Wachovia and CIT Group (NYSE: CIT) -- leading those lenders to foreclose on the company.
Continue reading Patriarch Partners snaps up Stila Cosmetics
Posted Apr 3rd 2009 3:15PM by Tim Catts
Filed under: Deals

Polaroid needs to reconnect with its "history of innovation in photography," says the chief executive of Patriarch Partners, the private equity firm that bought the company yesterday for $59.1 million.
That could be a tall order. After all, Polaroid has already been pushed to the brink once because it couldn't keep up with the latest technology. The company declared bankruptcy in 2001 as the rising popularity -- and falling price -- of digital photography crushed demand for its iconic instant cameras. Now, bankrupt again thanks to legal problems at its parent company, it must attempt another comeback.
Continue reading Patriarch Partners pays $59 million for bankrupt Polaroid
Posted Sep 30th 2008 2:00PM by Tech Confidential
Filed under: Deals

International Rectifier Corp. on Tuesday issued a scathing
reply to Vishay Intertechnology Inc.'s $23 a share, $1.7 billion tender
offer made on Monday, saying in a letter to its shareholders that Vishay does not have their best interests in mind, that it is trying to buy the company on the cheap and that the offer itself is highly conditional. It urged stockholders not to tender shares into the offer and to reject Vishay's three nominees to its board of directors.
In its letter, International Rectifier notes the opportunistic aspects of Vishay's offer, pointing out that it came right after IR had completed a restatement of its earnings, when its shares were trading at a five-year low and at a dip in the cycle of the semiconductor industry. It also notes that the offer is highly conditional, still requiring a financing commitment from Vishay's lenders.
After reviewing proxy solicitations from both companies, Friedman, Billings & Ramsey Inc. analyst Craig Berger sees "little chance" that International Rectifier will be sold to Vishay simply because the offer price is too low. In a research note published on Tuesday, Berger writes that he also doesn't expect IR shareholders to elect the Vishay candidates to the board of directors. Berger believes IR has an attractive risk-reward profile, noting that the downside in its shares should be limited to around $16 if arbitrage traders abandon their positions; the shares could potentially trade into the $40s if aggressive margin projections made by IR management are achieved. Berger maintains a $29 price target on the stock.
Continue reading at TechConfidential.com.
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