Chart of the Week: Two weeks ago, Goldman Sachs said take-private deals had reached an all-time high. In a recent case study, Value Add explored why operating as a private company was critical to the turnaround of Dell Technologies. “We can go faster on the transformation journey in a private setting,” said Dell’s former-CFO Tom Sweet. “We’re also making better investment decisions on a longer time horizon. We’re thinking about what’s the right three-to-five-year answer, versus how this affects us in the next 90 days relative to an earnings-per-share target.” Read the full case study.
- Private Equity is Recruiting More Public Company Execs (Read More)
- Private Equity Operating Trends Report 2024 (Read More)
- Turnaround Case Study: Dell Technologies (Read More)
- The 100 Largest Private Equity Buyouts of All-Time (Read More)
- Private Equity Firms Are Increasing Exposure to These Industries (Read More)
Macy’s has rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management. The real estate investor and hedge fund proposed a possible price revision if granted more access to Macy’s financial information. However, the board dismissed the offer as too low for further consideration. According to Reuters, the Macy’s board is only open to offers from buyout firms with a successful track record in retail sector turnarounds. (Source)
Arcline has reached an agreement to acquire industrial manufacturer Kaman in a $1.8 billion take-private deal. Kaman, a producer of aviation parts for commercial aerospace and defense, has been publicly traded since the 1980s but has seen a consistent stock price decline since 2019. In Q3 2023, the company reported revenues of $183 million and EBITDA of $25 million. (Source)
Apollo Global Management is reportedly considering a bid for National Amusements, the parent company of Paramount, CBS, MTV, and other media brands. The company’s stock has plummeted over -85% since 2021, following the death of former majority owner and chairman Sumner Redstone. (Source)
Silver Lake is proceeding with its takeover strategy for entertainment company Endeavor Group. The buyout firm, already holding a 71% stake in Endeavor, is acquiring shares from minority shareholders. Bloomberg reports that Silver Lake plans to break up the company and sell off its assets. (Source)
Clayton Dubilier & Rice (CD&R) is facilitating the sale of Morrisons gas station division to Motor Fuel Group for $3.1 billion. This deal benefits both parties within CD&R's private equity portfolio: it enables Motor Fuel Group to expand its retail footprint with 340 additional locations and assists Morrisons in reducing its $7.2 billion debt. (Source)
The Financial Times reports that private equity firms are beginning to capitulate on portfolio company valuations which will lead to more exits in 2024. (FT)
EQT emphasized on its earnings call last week that it will pursue more exits in 2024. “So if we turn to 2024, we think it's likely that we're going to see higher realization volumes compared to 2023. This will include streamlining portfolios, realizing assets in older vintages and we also have certain larger assets who we think are well suited for public market exits for example.” (Seeking Alpha)
90% of executives at the World Economic Forum this year said they are waiting for the AI hype to “die down” before applying it to their businesses. (Fortune)
Capstone Partners published a report about what middle-market CEOs are focused on in 2024. There’s a greater focus on organic growth than in years past due to higher interest rates. (Capstone Partners)
Hildred Capital Management has hired Will Righeimer to be CEO of Hello Bello, the baby brand it acquired out of bankruptcy last month. Righeimer has worked with Hildred’s portfolio companies in the past. (Retail Dive)
Former P.F. Chang’s CEO Damola Adamolekun has joined Garnett Station Partners as an Operating Partner. Adamolekun will likely work across Garnett’s portfolio, which includes several restaurants and hospitality companies. (Nation’s Restaurant News)
SE Ventures has hired James McGill as an Operating Partner. Previously, he was a senior executive for AVEVA and Schneider Electric.
Level Equity has promoted Amy Kramer from Operating Partner to Head of Go To Market. Previously, she was an executive for the software company Trustpilot.
Questions? Email us: firstname.lastname@example.org