Top 10 private equity deals
The following list of the largest PE deals tells the story. The last 3 years have been remarkable for the mega deal, according to Fortune Magazine. We’ll know in half a decade or so if this trend was good for limited partner investors:
“The first takeover of a public company by a private equity firm was in 1979, when KKR bought machine-tool maker Houdaille for $355 million. But nine of the 10 biggest deals ever are from the last three years.
(Values include assumed debt)
1. $38.9 billion – Equity Office Properties Trust
Comments: A fierce bidding war drove up the price by $3 billion.
2. $32.7 billion – Hospital Corp. of America
Acquirers: Bain, KKR, Merrill Lynch
Comments: The buyers, including the Frist family, paid only $5.5 billion in equity. The rest was debt.
3. $31.1 billion – RJR Nabisco
Comments: It’s the Sgt. Pepper’s of PE: oft imitated but never topped_ when adjusted for inflation.
4. $27.4 billion – Harrah’s Entertainment*
Acquirers: Apollo, Texas Pacific
Comments: The club’s $90-per-share offer was a huge 35% premium over the casino’s closing stock price.
5. $25.7 billion – Clear Channel Communications*
Acquirers: Bain, Thomas H. Lee
Comments: The Mays family’s stake is valued at over $1 billion.
6. $21.6 billion – Kinder Morgan*
Acquirers: Carlyle, Riverstone, Goldman Sachs
Comments: Goldman did the deal and earned fees from the buyers and seller.
7. $17.6 billion – Freescale Semiconductor
Acquirers: Blackstone, Carlyle, Permira, Texas Pacific
Comments: U.K.-based Permira established a beachhead in U.S. megadeals.
8. $17.4 billion – Albertson’s
Comments: Joining with CVS and SuperValu, Cerberus spurred management to go private.
9. $15.0 billion – Hertz
Acquirers: Carlyle, Clayton Dubilier & Rice, Merrill Lynch
Comments: Bought from Ford, then sold to the public a year later.
10. $13.9 billion – TDC
Acquirers: Apax, Blackstone, KKR, Permira, Providence
Comments: The buyout of the Danish telecom is Europe’s biggest private-equity deal so far.
* Deal announced, not closed.