Deals: Private Equity Back in the Hunt

In our M&A Roundup for the week ended June 22, Blackstone, Carlyle, and Bain reappear among the buyers — although transactions sizes are smaller than in the glory days.

Private equity was back in the acquisition game last week, with names like Blackstone, Carlyle, and Bain reappearing among the buyers. But deal sizes were far smaller than in the glory days last year.

And again, North American transactions overall — 43 of them, worth a total of $8.13 billion — were upstaged by a deal in the buzz that didn’t make the list. This time it was Bunge Ltd.’s agreement to pay $4.2 billion for Corn Products International Inc. at the crest of interest in agricultural fostered by global demand for grains. That agreement wasn’t included in the list of Top 10 transactions because news of it didn’t emerge until Sunday, in the latest case of a resurgence of the old pattern of weekend leaks of deals headed for a Monday announcement. (The busy dealmaking of the prior week, when nearly $20 billion of transactions were signed, didn’t include Belgian brewer InBev’s $46-billion offer for Anheuser-Busch. The data compiled for our weekly reports don’t include pending offers.)

Last week’s largest deal was Blackstone Group’s $1.57-billion buyout of Apria Healthcare Group, followed closely by PepsiCo’s $1.36-billion agreement to buy 75 percent of JSC Lebedyansky, a Moscow-based branded juice company, according to data provided to by mergermarket.

For the year-to-date, the 1,815 deals struck so far are worth $418.86 billion. That compaires with 2,529 transactions valued at $885.42 billion for the same period last year.

Blackstone Group Holdings LLC to buy Apria Healthcare Group Inc. for $1.57 billion

Lake Forest, Calif.-based Apria Healthcare definitively agreed to be acquired by New York-based private equity firm Blackstone in a deal both boards approved. The price was $21 a share, a premium of 32.7 percent. The transaction is expected to close in the second half.
Seller financial advisor: Goldman Sachs
Bidder financial advisor: Banc of America Securities; Wachovia; Barclays Capital
Seller legal advisor: Gibson Dunn & Crutcher; Munger Tolles & Olson
Bidder legal advisor: Simpson Thacher & Bartlett

PepsiCo Inc. to buy Lebedyansky JSC for $1.46 billion

PepsiCo and Pepsi Bottling Group, New York-based drinks companies, agreed jointly to acquire a 75.53 percent stake in Moscow-based JSC Lebedyansky, which makes branded juice. The agreement calls for a 75/25 percent split by PepsiCo and Pepsi Bottling. The $88.02-a-share cash price represents a discount of 3.32 percent. Excluding debt, the price is $1.80 billion.
Seller financial advisor: Deutsche Bank
Bidder financial advisor: Dresdner Kleinwort; Morgan Stanley; Renaissance Capital
Seller legal advisor: Clifford Chance
Bidder legal advisor: Chadbourne & Parke

Fertitta Holdings Inc. to buy Landry’s Restaurants Inc from for $1.30 billion

A newly formed Houston-based entity owned by Tilman J. Fertitta, Fertitta Holdings agreed to acquire Houston-based Landry’s, a restaurant, hospitality, and entertainment company, for a price that includes assumption of $885 million of debt. The $21-a-share price represents a 25-percent premium. The transaction is expected to be completed in four monthst
Seller financial advisor: Cowen & Co.; North Point Advisors
Bidder financial advisor: Jefferies & Company
Seller legal advisor: Haynes & Boone; King & Spalding; Latham & Watkins
Bidder legal advisor: Olshan Grundman Frome Rosenzweig & Wolosky


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