The Answer Is Private

What kind of buyers and sellers made the greatest strides in deal-making for 2004?

Says Daniel F. Akerson, Carlyle’s co-chair of U.S. buyouts, “When you get a broad and deep enough portfolio, you become quasi strategic.” And PE players predict their role in revitalizing moribund industries will expand significantly. Already, says Akerson, “basically the entire aftermarket automobile industry is owned by private equity.”

Akerson predicts that at least four firms will raise funds of $5 billion or more this year. Given their leverage expertise, that means the top private-equity firms alone will soon wield as much as $60 billion of purchasing power.

“If consortiums are a factor, you can buy $20 billion companies and be a force for positive restructuring in the economy,” the Carlyle executive says. “That’s a lot of money, even in America.”

Tim Reason is a senior writer at CFO.

Not for Public Consumption

The year’s largest private-equity deals.*

Date Effective Target Acquirer Value of Deal

($ millions)

8/2 Cox Communications Cox Enterprises $8,390
9/13** Metro-Goldwyn-Mayer Investor Group 4,812
11/18** Mylan Laboratories Carl Icahn 4,196
10/29 Boise Cascade-Paper Asset Boise Cascade 3,700
8/27** LNR Property Riley Property Holdings 3,682
5/12 Extended Stay America Blackstone Group 3,182
7/21** Texas Genco Holdings Investor Group 2,886
8/20 PanAmSat Investor Group 2,600
5/27 UGS PLM Solutions Investor Group 2,050
7/30 Loews Cineplex Entertainment Investor Group 2,000
5/21** Verizon-Wireline Related Business The Carlyle Group 1,650
8/27 Nortek Holdings Investor Group 1,534
6/8** Refco Group Thomas H. Lee Partners 1,463
4/16 Cinemark USA Madison Dearborn Partners 1,392
7/22** AMC Entertainment Marquee Holdings 1,386
8/4 Keystone Property Trust Investor Group 1,376
11/18** Telcordia Technologies Investor Group 1,306
6/22 Iasis Healthcare Investor Group 1,306
8/20 US Oncology Welsh Carson Anderson & Stowe 1,282
8/12 Borden Chemical Apollo Management 1,200
9/2 Mervyn’s Investor Group 1,200
10/29 Dresser-Rand First Reserve $1,200
*As of 12/1/04
**Date announced
Sources: Thomson Financial, company reports, CFO


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