Read 031306AB_layout.indd text version

INTELLIGENCE FOR THE MIDDLE MARKET

Auction Block

Source Interlink weighs its future

by Kelly Holman Source Interlink Companies Inc.'s board has launched a review of strategic alternatives, appointing an affiliate EXCLUSIVE of private equity firm Yucaipa Cos. LLC as a consultant. The move indicates that Yucaipa, Source Interlink's single largest shareholder, may be considering an exit from the Bonita Springs, Fla.based media products distributor. Source Interlink distributes DVDs, music CDs, magazines, books and related products to 110,000 retailers such as Barnes & Noble Inc. and Borders Group Inc. It gets its media-related products from movie studios, record labels, magazine and newspaper publishers and other companies. The company generated $23.4 million of Ebitda on $356.6 million in revenues for 2005, according to its most recent annual Securities & Exchange Commission filing. Los Angeles-based Yucaipa owns a 34.7% stake in Source Interlink through an investment affiliate called AEC Associates LLC, the consultant on its review. The holding resulted from Source Interlink's $317 million merger with Alliance Entertainment, a Coral Springs, Fla.-based entertainment products distributor, in March 2005. Rather than exiting Alliance, the firm received stock in Source Interlink. A representative for Source Interlink declined to comment beyond the company's press statement. Yucaipa did not return calls. Source Interlink is a publicly traded company with a $539.8 mil-

TM

MARCH 13-19 2006

VOLUME 2 NUMBER 8

THE DEAL'S ONLINE RESOURCE

Winning combination

Accel-KKR found niche in midmarket tech buyouts

by Kelly Holman Accel-KKR LLC didn't set out to specialize in middle-market private equity buyouts in the high-tech sector. Its founders, an unusual combination of dealmakers, were focused in 2000 on the bright prospects of the Internet, just as many other investors and entrepreneurs were. But that vista quickly turned as dark as night when the dotcom bubble burst, and Accel-KKR suddenly needed to make a rapid course correction. It did. Today the Menlo Park, Calif.-based firm has made a name for itself acquiring small but fast-growing technology companies. Even as top-tier buyout groups lick their chops over the possibility of doing deals involving big software corporations, Accel-KKR keeps its attention on midmarket and small tech outfits with $15 million to $150 million in annual revenue: software developers, hardware makers, Internet firm and information technology services businesses.

THE FULL DEAL: VISIT WWW.AUCTIONBLOCKDATABASE.COM FOR COMPLETE UP-TO-DATE INFO ON BUSINESSES UP FOR AUCTION

for the latest information on mid-cap and large-cap auctions in the U.S. and around the world, go to AuctionBlockDatabase.com.

2 IT TAKES AN I-VILLAGE NBC U buys Net portal for $600M 2 LONESOME IMAX Specialty film business on block 2 TRANNY JOB American to soup up Cottman with Aamco 3 MOVERS & SHAKERS 4 ON THE SMALLER SIDE 5 STILL ON THE SMALLER SIDE 6 MIDMARKET FUND TowerBrook closes on $1.3B 6 NON-CONTROL VEHICLE Sun Capital raises $1.3B 6 GP OPENS DOORS Dealmakers launch tech boutique 6 FLOWERS GROWS MEGAFUND Firm said to be readying push for $5B 7 MAILROOM SERVICES Apollo pays $390M for Sourcecorp 7 BACKGROUND CHECKS Kroll acquires InfoLink Screening 7 WORKPLACE GUIDANCE Summit Partners buying ComPsych 7 ANNUITY DEAL Prudential purchases Allstate unit 8 MODULAR BUILDINGS Carlyle Group lands Comark 8 TRAILER HITCH-UP Wabash takes on Transcraft 8 RACK LINK-UP United Fixtures pays $48M for Interlake 8 ONEIDA BUYS ORC BUSINESS 9 AUCTION LISTINGS

AB

To be sure, it's hardly the only middle-market private equity group interested in technology businesses--a number of buyout groups, large and small, have made technology their core investment focus. But Accel-KKR's board and the background it represents set it apart. Members include financial engineering icons Henry Kravis and George Roberts of Kohlberg Kravis & Roberts & Co.; KKR partner Marc Lipschultz; veteran venture capitalist and Accel managing partner Jim Breyer; and former Wells Fargo & Co. chief executive Paul Hazen. "You're basically taking the combination of a premier venture capital firm and one of the best-known buyout firms and combining the skill sets of both," says Erik Jordan, an investment banker with Trenwith Securities LLC, a Menlo Park, Calif.-based investment bank. The combination goes back a half-dozen years to when Accel Partners, a Palo Alto, Calif.-based venture capital firm, and New York buyout titan KKR ACCEL-KKR continued on page 4

AUCTION BLOCKTM IS PUBLISHED 40 TIMES A YEAR BY THE DEAL LLC. TO SUBSCRIBE, PLEASE CALL 888-257-6082 OR VISIT THE WEB SITE AT WWW.AUCTIONBLOCKDATABASE.COM

lion market capitalization. Its stock has traded on the Nasdaq at $9.20 to $13.20 a share over the past year. The company is carrying $114.1 million in long-term debt, according to its latest quarterly filing. Reed Phillips III, a managing partner of DeSilva & Phillips, a New SOURCE continued on page 2

AB

2

MARCH 1 3 - M A R C H 1 9 2 0 0 6

NBC U takes iVillage

NBC Universal Inc. will acquire women's Internet portal iVillage Inc. for $600 million. The price represented only a 6.5% premium. But the $8.50 per share, allcash deal also included such metrics as 32.5 times trailing Ebitda and 6 times annual sales. And most observers considered the price fair, considering that it offers the broadcaster an opportunity to follow TV viewers online. NBC Universal said it plans to promote and to distribute content developed for its studio, TV network and cable channels to iVillage's 14.5 million unique users. But General Electric Co. vice chairman Bob Wright, who's also chairman and chief executive of NBC U, cautioned against thinking iVillage's acquisition

signaled a rush into other Internet properties. "We do not have a list of similarsized acquisitions," he said. "This is a real base for us." Still, because of NBC U's familiarity with the Internet through such news sites as CNBC.com, MSNBC.com and even NBC.com, Dan Ambrose, managing director of the Ambro.com Corp. media management consultancy, saw extra significance in the move. "They obviously recognize online as a necessary platform," he said. Equally important, Ambrose said, would be the site's ability to protect NBC from new ways of program selection. An auction for New York-based iVillage, whose number of its monthly unique users declined 24% over the past year, had been speculated for months. --RICHARD MORGAN AND CAROLYN MURPHY

Imax Corp. gets lonesome

Imax Corp., whose large-format film and eight-storytall screens brought a new dimension to movies, is on the block. The company, based in Mississauga, Ontario, said it hired Allen & Co. and UBS Investment Bank to help weigh strategic options. The decision was made after several recent "unsolicited inquiries," it said. The move came on the heels of Imax's announcement of a 62% gain in profits for 2005. "We believe we can accelerate our growth and realize the full potential of Imax more quickly and effectively with a strategic partner or acquirer," co-CEOs Richard L. Gelfond and Bradley J. Wechsler said in a statement. Imax reported an $11 million gain in total revenue for 2005, to $144.9 million. But it also gave guidance on a 10-cent loss per share in the first quarter of 2006. Matthew Harrigan of Greenwood Village, Colo.based Janco Partners Inc. said it makes sense for Imax to partner with theater exhibitors, citing a union it made with AMC Entertainment Inc. last year to operate two theaters. Logical partners, he said, might include Apollo Management LP or J.P. Morgan Chase & Co., which have invested in AMC; companies on the technical side of digital media, such as Sony Corp. or Texas Instruments Inc.; or studios such as Time Warner Inc.'s Warner Brothers. "They [Imax] really do have enormous potential, and they're clearly capital constrained," he said. --CAROLYN MURPHY

SOURCE continued

American to soup up Cottman with Aamco

Aamco Transmissions Inc., a 40-year-old business that bills itself as the world's largest transmission specialist, was sold by its family owners to Bethesda, Md.based American Capital Strategies Inc. for an undisclosed sum. The auction drew interest from strategic and financial players, said Bram Hall of Harris Williams & Co., who advised Bala Cynwyd, Pa.-based Aamco. American Capital, a publicly traded buyout and mezzanine fund, said it plans to combine Aamco with its portfolio company Cottman Transmission Systems LLC, which it acquired in April 2004, investing $46 million. The merger will create one of the biggest full-service car repair chains in the U.S., with more than 1,100 units and $600 million in systemwide sales, according to American Capital. The new company--in which American will hold an 83% stake--will take the Aamco name and be based in Horsham, Pa. American Capital's investment took the form of senior term loans and senior and junior subordinated debt, as well as preferred and common equity. The firm will also supply a revolving credit facility. Hall said prospective buyers were attracted to the stability of the automotive aftermarket and franchise model, in addition to the Aamco brand name. Aamco relied on Fox Rothschild LLP for legal advice. American Capital tapped Weil, Gotshal & Manges LLP . --CHRISTINE IDZELIS

York investment bank and media deal specialist, said large retailers are moving to source products directly from entertainment content companies rather than relying on middle-man distributors. This could pose a challenge for such companies as Source Interlink, he said. Conversely, Phillips said that because Source Interlink distributes a variety of products, it may be insulated against declines in any one product category.

EDITOR-IN-CHIEF: ROBERT TEITELMAN EDITOR: ED PAISLEY MANAGING EDITOR: GREG STOREY DESIGNER: CHRIS KWIERAGA VICE PRESIDENT, SUBSCRIPTION SALES: MICHAEL CONANT

AUCTION BLOCK (ISSN 1541-9878) is a publication of The Deal LLC and will be published weekly except for the weeks of July 4, July 18, Aug. 1, Aug. 22, Nov. 28, Dec. 19 and Dec. 26. For all editorial comment and inquires, call 212-313-9210 or send mail to 105 Madison Ave., New York, NY 10016. This newsletter is available in PDF format at www.auctionblockdatabase.com. Copyright 2005 by The Deal LLC. The Copyright Act of 1976 prohibits the reproduction by photocopy machine or any other means of any portion of this publication except with permission of the publisher.

THE DEAL'S AUC T I O N B LO C K

MARCH 13 - MARCH 19 2006

MOVERS & SHAKERS

Glenn Gurtcheff joined Harris Williams & Co. to open an office in Minneapolis for the middle-market investment banking firm. Gurtcheff had been co-head of Piper Jaffray & Co.'s middle-market mergers and acquisitions group. Pomona Capital hired Paul Delaney as a director, fund-of-funds, and partner. Based in New York, he will lead Pomona's $1.6 billion private equity fund-of-funds business. Delaney most recently was a managing director in the private funds group at Bear, Stearns & Co. Before that, he spent 20 years in investment management at Metropolitan Life Insurance Co. Mark Schulte joined Seabury Group LLC as a managing director and head of investment banking. Schulte had been at Taurus FC, a financial advisory and investment banking boutique he founded that focuses on the transportation industry. He will merge his Taurus advisory business into Seabury. Earlier, Schulte was co-head of Merrill Lynch & Co.'s global transportation practice in investment banking. In New York, Jefferies & Co., the principal operating subsidiary of Jefferies Group Inc., hired Jason Griffith as co-head of equity products, working alongside Ross Stevens, who joined the firm in November. Griffith most recently was at Société Générale SA as head of U.S. structured product sales; he had run Bank of America Corp.'s structured investments business until SG acquired it. Jefferies also hired Vlad Portnoy, whom it named head of quantitative strategies, and three additional financial engineers and technologists, all from Banc of America Securities LLC and all based in New York. Valeri Smelyansky, Branko Stojkovic and Victor Miller will work alongside the existing Jefferies team of Vesna Straser, Konstantin Zalutsky and Lawrence Wang. David Mayo joined Paul, Weiss, Rifkind, Wharton & Garrison LLP as a partner in its New York tax department, focusing on corporate and partnership taxation and taxable and tax-free mergers and acquisitions. Mayo had been at Gibson, Dunn & Crutcher LLP, where he was a partner for more than eight years. Hicks, Muse, Tate & Furst Inc. adopted the new name of HM Capital Partners LLC in recognition of retirements and named three members of its investment team partners: Edward Herring, Eric Lindberg and Jason Downie. Herring joined the Dallas-based private equity firm in 1998 in the food and beverage and energy practices. Lindberg works in media, and Downie covers energy. T. Yates Exley joined San Francisco's Merriman Curhan Ford & Co. as a managing director and head of mergers and acquisitions. Most recently, Exley was a director and cofounder of Stinger Systems Inc., an electronic restraint company. Prior to that, he was director of corporate finance and investment banking at Wachovia Securities LLC. Kramer Levin Naftalis & Frankel LLP hired Stephen Jacobs as a partner in its corporate department, based in New York. He represents private equity and hedge fund managers in fund formation and compliance, capital generation, mergers and acquisitions and general corporate matters. Jacobs had been at GT Brands LLC, a portfolio company of Quadrangle Group LLC, as chief legal officer. Earlier he was chief financial officer and general counsel at American Lawyer Media Inc. John Barrymore joined the food group of Harris Nesbitt Corp. as a director in Chicago. Barrymore spent six years in food and consumer mergers and acquisitions at Piper Jaffray & Co. and Credit Suisse Group in San Francisco. Churchill Financial Holdings LLC, a new midmarket commercial finance company in New York, hired James Nathenson as chief risk officer. He will join in mid-March from J.P. Morgan Chase & Co., where he has worked for 27 years, most recently as senior vice president for principal risk management. Fehmi Zeko joined Deutsche Bank Securities

AB

3

Inc. in New York as a managing director and vice chairman of media and telecommunications investment banking in the Americas. Zeko had worked at Citigroup Inc. for more than 20 years, most recently as co-head of global communications banking. Ropes & Gray LLP hired Eric Wright as a partner in its Palo Alto, Calif., office, focusing on the formation and operation of venture capital and private equity funds. Wright had worked at Wilson Sonsini Goodrich & Rosati PC for 12 years. Earlier he worked at Cravath Swain & Moore LLP in New York and London. John Fowler, a senior healthcare banker for Deutsche Bank AG in the Americas, is relocating to London to head up the healthcare investment banking team in Europe. Mercanti Group hired Eric Coonrod as an associate in Los Angeles. Coonrod most recently was an analyst with A.G. Edwards & Sons Inc. in St. Louis. Before that, he worked at Deutsche Bank Securities Inc. in the equity capital markets group. Robert Paine joined GSC Partners as a senior managing director, managing a hedge fund that will make debt and equity investments in leveraged and distressed markets. Paine had worked at Stanfield Capital Partners LLC, where he managed a distressed debt hedge fund. Janney Montgomery Scott LLC, an investment firm based in Philadelphia, hired Chris Wilkinson as regional manager of its private client group, working from Boston. Wilkinson had worked at Advest Group Inc. Joyce Clinton becomes executive vice president and chief financial officer of Santa Barbara, Calif.-based Pacific Capital Bancorp this month. She most recently was senior vice president and CFO of Wells Fargo Services, the technology and operations subsidiary of Wells Fargo & Co. Clinton replaces Donald Lafler, who intends to retire but remain with the firm as a consultant.

T H E D E A L' S AU C T ION BLOCK

AB

4

MARCH 1 3 - M A R C H 1 9 2 0 0 6

SMALLER SIDE

SCHAWK INC., A DES PLAINES, ILL.-BASED PROVIDER OF DIGITAL IMAGING GRAPHIC SERVICES, SAID IT SOLD ITS BOOK, PUBLISHING AND CERTAIN CATALOG BUSINESSES TO CHICAGO-BASED CAPS GROUP ACQUISITION LLC FOR $29 MILLION CASH PLUS ASSUMED LIABILITIES. THE TRANSACTION INCLUDES CERTAIN ASSETS OF THE FORMER BLACK DOT GROUP AND THE FORMER APPLIED GRAPHICS TECHNOLOGIES' NEW YORK OPERATIONS, ACCORDING TO A STATEMENT. SCHAWK SAID PROCEEDS OF THE SALE WILL BE USED TO REDUCE DEBT. CAPS SUPPLIES MEDIA SERVICES, INCLUDING DIGITAL IMAGING AND PHOTOGRAPHY. --LUISA BELTRAN

ON THE

ACCEL-KKR continued

ALARM SECURITY GROUP LLC, BASED IN BELTSVILLE, MD., ACQUIRED THE ASSETS OF SECURITY MONITORING FIRM DSS SECURITY INC., A SUBSIDIARY OF HOUSTON-BASED EAGLE BROADBAND INC., FOR $1.4 MILLION. IN 2005, ASG PURCHASED SECURITY MONITORING ACCOUNTS FROM EAGLE UNDER WHICH ASG WAS OBLIGATED TO PAY THE COMPANY CERTAIN AMOUNTS IN THE FUTURE. A PORTION OF THE PURCHASE PRICE INCLUDES THE BUYOUT OF ASG'S OBLIGATIONS. EAGLE BROADBAND SAID THE DIVESTITURE WOULD ALLOW IT TO INCREASE ITS FOCUS ON ITS INTERNET PROTOCOL VIDEO SERVICES. --DAVID SHABELMAN

BIOSCRIP INC., AN ELMSFORD, N.Y.-BASED PHARMACEUTICAL SERVICES COMPANY, SAID IT ACQUIRED INTRAVENOUS THERAPY SERVICES INC., A BURBANK, CALIF.-BASED PROVIDER OF INFUSION SERVICES, FOR ABOUT $13 MILLION IN CASH. TERMS WOULD GIVE ITS EARNOUT PAYMENTS IF IT ACHIEVES FINANCIAL BENCHMARKS. BIOSCRIP EXPECTS THE DEAL TO ADD MARGINALLY TO ITS 2006 EARNINGS. --TARA CROFT

CORDY OILFIELD SERVICES INC., BASED IN CALGARY, ALBERTA, AGREED TO BUY AN EDMONTON, ALBERTA, COMPANY OPERATING AS WIEBE CONSTRUCTION, HAMBURG OPEN CAMP AND CANADIAN PIPELINE CONSTRUCTION INC. FOR C$20 MILLION ($17.5 MILLION). CORDY SAID THE PRICE WILL BE PAID 75% IN STOCK, COMPRISING 4.5 MILLION SHARES AT C$3.30 EACH, AND 25% IN CASH. --LAURA KING

CRESCENT POINT ENERGY TRUST, CALGARY, ALBERTA, SAID IT ACQUIRED A PRIVATE OIL AND NATURAL GAS COMPANY AND SOME OF ITS ASSETS FOR C$71 MILLION ($62.7 MILLION). CRESCENT SAID THE ASSETS ARE IN THE PEACE RIVER ARCH AREA OF NORTHWEST ALBERTA AND PRODUCE THE EQUIVALENT OF 580 BARRELS OF OIL A DAY. IT SAID THE ASSETS CONSOLIDATE ITS INGOLDSBY SOUTHEAST SASKATCHEWAN AREA. --LAURA KING

served as the cornerstone investors for Accel-KKR's first fund. While the size of the fund hasn't been disclosed, published reports peg it at around $300 million. Accel-KKR's mission at that point was summed up in the boilerplate of an early press release: investing in early-stage technology companies, more specifically, "the next wave of Internet development--the integration of online and offline assets." The firm even made a minority-stake investment alongside Accel Partners in June 2000, when the pair put $26 million in South San Francisco, Calif.based Model N Inc., a company making specialized software for life sciences companies. Then the economic tide turned, abruptly sinking the valuations of technology and Internet stocks. Small and potentially volatile tech companies were abandoned by Wall Street's capital markets, leaving a slew of modestly sized companies with serious financing needs. Accel-KKR officials say their firm never had any "busted" investments. But it quickly shifted its investment focus and its strategy and started pursuing established businesses with positive cash flows. The reason, says Accel-KKR managing director Tom Barnds, was simple: "We saw a bigger opportunity in the middle-market buyout technology landscape." In particular, Accel-KKR was, and remains, attracted to companies backed by entrepreneurs or family founders. While it would be wrong to say the firm isn't interested in leveraged buyouts of public companies, it prefers to invest in private companies. Why? For openers, deals to take a public company private today tend to be more complicated and time-consuming processes. Also, most public companies in Accel-KKR's size range aren't generating stable cash flow--or, worse, they're losing money, says Ben Bisconti, a managing director at the firm. And the chance for private business owners to realize liquidity through private equity can be an equally alluring proposition. Take, for example, what happened in October 2002 when Accel-KKR executed its first leveraged acquisition of a privately owned business. The firm carried out a $45 million recapitalization of Newburgh, N.Y.-based CRS Retail Systems Inc., a retail software development company. The transaction allowed its chief executive, Kathy Frommer, to serve as a general manager of the business. It also provided liquidity for Ms. Frommer's father, who'd owned 50% of the business alongside her. Accel-KKR's calculated gamble on CRS was vindicated three years later when it sold the company to Epicor Software Corp. of Irvine, Calif., for $121 million in cash. The exit generated a cash-oncash return of 3 times the firm's investment in CRS, which had executed one add-on acquisition under Accel-KKR's ownership: the October 2004 purchase of Lynnwood, Wash.-based Apropos Retail Management Systems Inc., a provider of retail management systems for specialty store and general merchandise retailers. The tech-buyout firm also harvested another one of its portfolio companies in 2005, Alias Systems Corp. Accel-KKR and its

THE DEAL'S AUC T I O N B LO C K

MARCH 13 - MARCH 19 2006

AB

5

ACCEL-KKR continued

co-investor in CRS, Toronto's Teachers' Private Capital completed the $197 million sale of movie graphics technology company Alias to software maker Autodesk Inc. of San Rafael, Calif. The deal generated a 3-times return for Accel-KKR and an internal rate of return of more than 100%, a source close to the firm says. Accel-KKR and Teachers' had acquired Alias in June 2004 for $57.5 million in cash. Accel-KKR carried out another majority-stake purchase, a deal of undisclosed size, in January when it purchased a controlling interest in Saber Consulting Inc., a 200-employee developer of software that allows state and local governments to manage functions like voter registration and elections. When San Ramon, Calif., boutique investment bank Martin Wolf Securities LLC introduced Accel-KKR last year to Saber, the Salem, Ore.-based company run by Nitin and Karan Khanna had arrived at a critical point. The Khanna brothers, both in their mid-30s, wanted to realize liquidity on their investment in the company. But they were also looking for something else at the same time, recalls Bisconti-- they wanted to remain managers of the business. "They were looking for a partner to back them so they wouldn't have to sell out to a large software company," Bisconti says. The firm worked out a recapitalization that enabled Nitin Khanna to remain president and chief executive of Saber, while Karan Khanna was named chief operating officer. The deal left the two brothers the company's next-largest shareholders behind Accel-KKR. While Accel-KKR executives declined to comment on Saber's financial performance, a source familiar with the company says it generates between $25 million and $40 million in annual revenue. Last week Saber executed its first add-on acquisition with the $40 million purchase of Farmington Hills, Mich.-based Covansys Corp.'s state and local government software business, which is located in Columbus, Ohio. Meanwhile, as it was making deals over the past 15 months, Accel-KKR also bolstered its ranks of dealmakers. In January 2005, it announced the hire of former Thomas Weisel Partners LLC software banker Robert Palumbo as a managing director. The appointment represented more than just an addition to the staff. It was also a reunion of 40-year-old Palumbo, an ex-Deutsche Bank AG technology banker and Barnds and Bisconti, both 37. The trio cut their technology teeth together as young M&A analysts at Alex. Brown & Sons in the 1990s. Accel-KKR bolstered its rank-and-file staff in 2005 with the hires of former Goldman, Sachs & Co. vice president Jason Michael Klein as a vice president and Credit Suisse First Boston analyst Nicolas Chammas as an associate. But despite the new faces, Barnds says he and his fellow managing directors aren't planning to launch forays into new investment areas or make other changes. "We think there are thousands of opportunities in the middle market; we see ourselves continuing to focus on this segment of the market for years to come," he says.

SMALLER SIDE

AMERICAN CAPITAL STRATEGIES LTD., A PRIVATE EQUITY AND MEZZANINE FIRM BASED IN BETHESDA, MD., INVESTED $79 MILLION IN THE BUYOUT OF WICKENBURG, ARIZ.-BASED MEADOWS OF WICKENBURG LP, A SUBSTANCE-ABUSE AND BEHAVIORAL DISORDERS TREATMENT FACILITY, AND $98 MILLION IN ATLANTA-BASED DEBT COLLECTIONS COMPANY FINANCIAL ASSET MANAGEMENT SYSTEMS INC. AMERICAN CAPITAL PROVIDED SENIOR DEBT AS WELL AS DIFFERENT FORMS OF MEZZANINE DEBT IN BOTH DEALS AND ALSO INVESTED IN THE EQUITY OF BOTH COMPANIES. THE DEALS GIVE IT AN 88% STAKE IN THE WICKENBURG COMPANY AND A 79% STAKE IN THE ATLANTA FIRM. -- KELLY HOLMAN

ON THE

ARCAPITA INC., A PRIVATE EQUITY FIRM BASED IN ATLANTA, COMPLETED ITS $90 MILLION MAJORITY-STAKE ACQUISITION OF BIJOUX TERNER LLC, A MIAMI-BASED SUPPLIER OF JEWELRY AND OTHER FASHION ACCESSORIES. SUNTRUST ROBINSON HUMPHREY, A DIVISION OF SUNTRUST CAPITAL MARKETS INC., PROVIDED DEBT FINANCING FOR THE TRANSACTION, AND SUNTRUST EQUITY FUNDING LLC AND ROYNAT BUSINESS CAPITAL INC. SUPPLIED MEZZANINE DEBT. ADDITIONAL DETAILS WERE NOT DISCLOSED. CITIGROUP GLOBAL MARKETS INC. ADVISED BIJOUX TERNER. --KELLY HOLMAN

BLUE COAT SYSTEMS INC., A NETWORK SECURITY EQUIPMENT MAKER BASED IN SUNNYVALE, CALIF., COMPLETED ITS ACQUISITION OF PERMEO TECHNOLOGIES INC. FOR ABOUT $14.2 MILLION IN CASH AND 1.4 MILLION SHARES OF BLUE COAT STOCK. BLUE COAT ON JAN. 3 FIRST DISCLOSED ITS PLAN TO ACQUIRE PERMEO, A PRIVATELY HELD SECURITY TECHNOLOGY PROVIDER BASED IN AUSTIN, TEXAS. --KATE GIBSON

STONEBRIDGE PARTNERS, A PRIVATE EQUITY FIRM BASED IN WHITE PLAINS, N.Y., HAS EXECUTED A $28.5 MILLION RECAP OF BONDCOTE CORP., A PULASKI, VA.-BASED SUPPLIER OF LAMINATED FABRICS. NEW YORK SPECIALTY FINANCE COMPANY PRAESIDIAN CAPITAL INVESTORS LLC SUPPLIED $6 MILLION OF MEZZANINE FINANCING TO BONDCOTE, A 57-YEAR-OLD COMPANY THAT STONEBRIDGE OWNED FOR 11 YEARS. --KELLY HOLMAN

HOLLY CORP., BASED IN DALLAS, SAID IT WILL SELL THE ASSETS OF MONTANA REFINING CO. TO A SUBSIDIARY OF CONNACHER OIL & GAS LTD. OF CALGARY, ALBERTA, FOR $55 MILLION IN CASH AND SHARES. MONTANA REFINING OPERATES AN 8,000-BARRELS-PERDAY REFINERY AND RELATED ASSETS IN GREAT FALLS, MONT. THE SALE IS EXPECTED TO CLOSE BY APRIL 1. --LAURA KING

T H E D E A L' S AU C T ION BLOCK

AB

6

MARCH 1 3 - M A R C H 1 9 2 0 0 6

TowerBrook raises middle-market fund

TowerBrook Capital Partners LP closed a $1.27 million private equity fund earmarked for middle-market deals. The buyout firm, which has offices in both New York and London, raised 41% more than its initial target. The investment vehicle is its second PE fund. TowerBrook is the successor to Soros Private Equity Investors LP. Investors in TowerBrook Investors LP consisted of a mix of insurance companies, funds of funds, and state pension funds. They include American International Group Inc., Metropolitan Life Insurance Co., funds-of-funds of Goldman, Sachs & Co. and Lehman Brothers Inc., the California Public Employees' Retirement System and, separately, a commitment from Soros Fund Management LLC. "We're looking for challenging, mid-sized investment opportunities that other people don't want to spend time on," Neal Moszkowski, co-chief executive of TowerBrook, said. "We see an increasing amount of interesting deal flow related to distress [situations]," he said. However, he added, TowerBrook invests in businesses with strong cash flow, so it is not a turnaround or restructuring firm. The new fund will deploy $50 million to $100 million of equity capital in 15 to 20 investments involving companies typically valued at $200 million to $500 million, according to Moszkowski. It also will invest in publicly traded companies with market capitalizations of less than $500 million. TowerBrook invests across a broad spectrum of industries, including healthcare, media, telecommunications and energy, both in the U.S. and in Europe. --KELLY HOLMAN

At Sun, a non-control fund

Sun Capital Partners Inc. closed its newest fund, a vehicle aimed at non-control investments, at $1.3 billion. The fund, Sun Capital Securities Fund LP II, will make investments typically ranging from $15 million to $25 million in the stock, debt or other securities of companies with $50 million to $5 billion in annual revenues. The Boca Raton, Fla.-based private equity firm launched its first non-control fund, a $300 million vehicle, in 2004 because restrictions on its buyout funds prohibited them from investing in deals that didn't involve the purchase of a majority stake, said Richard Hurwitz, Sun's vice president of communications. "We were coming across a number of very attractive investment opportunities, but we were passing on these because the buyout fund only allowed us to do buyouts," he said. Sun Capital began marketing the new fund in November 2005 without the assistance of an investment-banking placement agent. University endowments, funds-of-funds investors, pension funds, family offices and trusts are limited partners. The vehicle had closed on $935 million in December in its second fundraising tranche, exceeding a $700 million target. Kirkland & Ellis LLP was counsel to Sun on the fundraising effort. Sun closed its fourth buyout fund in April 2005 at $1.5 billion. Hurwitz said it has committed about 23% of its capital to date. --KELLY HOLMAN

GP Tech opens its doors

Technology advisory boutique GP Technology Partners LLC has been launched by four former managing directors at SVB Alliant, the Palo Alto, Calif.-based advisory firm acquired in 2001 by Silicon Valley Bancshares Inc. Menlo Park, Calif.-based GP Technology will work in tandem with U.K. investment bank GP Bullhound Ltd., which runs an equity research operation and provides M&A and private placement advice. The intercontinental partnership will focus on the sale of mostly venture-backed companies in Europe to U.S. technology firms, said GP Technology managing director Robert Horstmeyer. The firm will focus primarily on sell-side advisory mandates for deals valued at less than $100 million, Savage said. Seven-year-old GP Bullhound "needed a group grounded in Silicon Valley and someone they could hand off to when it came to M&A," he said. GP Bullhound has no equity stake in GP Technology. However, a degree of joint ownership will likely occur at some point, Horstmeyer added. Besides Horstmeyer, the founders are John Savage, John Cromwell and Michael Shepherd. Horstmeyer and Savage focus on deals in hardware, electronic design automation, semiconductor design and semiconductor equipment. Cromwell and Shepherd concentrate on enterprise software M&A. --OLAF DE SENERPONT DOMIS

Flowers grows megafund

Private equity shop J.C. Flowers and Co. LLC is expected to start marketing in April for its second fund, an investment vehicle that could hit $5 billion, sources said. The New York-based firm is led by ex-Goldman, Sachs & Co. banker J. Christopher Flowers. It won renown for its $1.11 billion takeover in 1999, along with Ripplewood Holdings LLC, of Japan's Shinsei Bank Ltd., then named the LongTerm Credit Bank, and a subsequent return that was nearly sixfold. The size of the firm's new fund is unclear. While four sources said the target is $5 billion, others said the initial objective would be $3 billion

to $4 billion. J. Christopher Flowers is expected to invest a large sum of his own money, about $200 million. Calls to Flowers were not immediately returned. Credit Suisse declined to comment. The fund is expected to focus on financial services investments. The firm had been expected to use Goldman Sachs as its placement agent, but instead it has tapped Credit Suisse Group, two sources said. J.C. Flowers' recent dealmaking includes the acquisition of Crump Group Inc., the U.S.-based wholesale insurance brokerage unit of Marsh Inc., and a buyout of Fox-Pitt, Kelton Ltd., a London investment bank, along with its management. Both buys involved undisclosed prices. --LUISA BELTRAN

THE DEAL'S AUC T I O N B LO C K

MARCH 13 - MARCH 19 2006

AB

7

Apollo takes Sourcecorp

Apollo Management LP will buy Sourcecorp Inc., a provider of outsourced business services, for about $390 million in equity and the assumption of $60 million in debt. Credit Suisse Securities (USA) LLC and UBS Securities LLC are providing debt financing. Dallas-based Sourcecorp had hired Lehman Brothers Inc. in early October to assess its strategic options amid controversy over its restatement of financial figures for 2001-2004. Apollo, based in Purchase, N.Y., offered $25 a share in cash, slightly below Sourcecorp's closing price just before the deal agreement was announced. Sourcecorp reported revenue of $318 million in the nine months ended Sept. 30, 2005, up 10%, with net income of $33 million, up sharply from $6.2 million in the same period in 2004. Nine-month Ebitda was $70.5 million. Formerly named FYI Inc., Sourcecorp provides document imaging and outsourced mailroom services. Its board has approved the merger, and affiliates of Jana Partners LLC, which own about 13% of the company's stock, have agreed to vote their shares in favor of the tie-up. A Lehman team provided financial advice and a fairness opinion to Sourcecorp. White & Case LLP was counsel. Apollo received financial advice from Credit Suisse and counsel from Akin Gump Strauss Hauer & Feld LLP. --LOU WHITEMAN

Kroll signs up InfoLink

InfoLink Screening Services Inc., an employee-background checker, has been acquired by Kroll Inc., a New York-based risk consulting company. Terms were not announced. InfoLink, of Los Angeles, will become the West Coast hub office for Kroll's background screening division, which is based in Nashville. "Today, demand for employee background screening services continues to rise due to new legislation and concerns about workplace security," Kroll CEO Simon Freakley said in a statement. In July 2004, Marsh & McLennan Cos. acquired Kroll, which consults with companies on how to mitigate different risks. InfoLink, which has 114 employees, provides services that also include drug testing and verification of Form I-9 employment eligibility. There will be no job cuts or management changes, officials said. "InfoLink provides an entrée into the west coast as well as sales delivery and a production office," said Michael Rosen, president of Kroll's background screening division. Kroll turned to Portico Capital Securities for financial advice and Kramer Levin Naftalis & Frankel LLP for counsel. USBX Advisory Services LLC represented InfoLink. Sheppard Mullin Richter & Hampton LLP was legal adviser. --LUISA BELTRAN

Summit Partners nets ComPsych

ComPsych Corp., a worker counseling and information business that bills itself as the "Guidance Resources Company," is being acquired by buyout shop Summit Partners, sources said. There was no word on the value of the deal. Chicago-based ComPsych could not be reached for comment, and Summit, based in Boston, declined to comment. But sources said UBS is providing $110 million in new senior secured financing to support the acquisition. The package includes a $100 million term loan and $10 million revolving credit facility. Summit also plans to fund the deal in part with $35 million of mezzanine debt, according to sources. ComPsych generated $109.4 million in sales in 2005, according to Hoover's Inc. The company has 2,000 employees. The transaction has already won antitrust clearance from the Federal Trade Commission, according to a list that the agency issued last week. ComPsych provides a menu of counseling services that help employees deal with issues related to health, work and life. It also conducts various workplace surveys like the one it ran in January on employees, stress and illness during the flu season. Chairman and chief executive officer Richard Chaifetz runs the co mpany. Its work is often cited by broadcasters and by such publications as Money magazine. Summit Partners has made several investments in information-service companies. These include Waltham, Mass.-based Internet services business Yes Direct Inc. and Dublinbased travel services company Web Reservations International Ltd. --KELLY HOLMAN

Insurers strike annuity deal

Insurer Allstate Corp. will sell its variable annuity business to rival Prudential Financial Inc. for more than $560 million in cash. Prudential, based in Newark, N.J., said it would take over administration of Allstate's variable annuities business over the next two years. The unit makes income payments largely to retirees based on the performance of underlying securities. The buyer also will gain the right to sell variable annuities through Allstate's agents and third parties with which Allstate has relationships. The largest of these is Morgan Stanley, with which Northbrook, Ill.-based Allstate has had a

marketing relationship for 21 years. Allstate and Prudential said they expect to complete the deal in the second quarter of 2006. The final price will be subject to market fluctuations. Allstate said the deal could be worth as much as $580.5 million. The Allstate variable annuity book has total accounts worth about $16 billion and provides annuities to individual and investment companies. Financial companies for years have been selling off different noncore businesses because they can make the most money by concentrating their capital behind products in which they have a significant market share. --PETER MOREIRA

T H E D E A L' S AU C T ION BLOCK

AB

8

MARCH 1 3 - M A R C H 1 9 2 0 0 6

Carlyle nails down acquisition of Comark Building

Brazos Private Equity Partners LLC sold Comark Building Systems Inc. to Carlyle Group for an undisclosed amount. Comark, based in DeSoto, Texas, makes modular buildings of 1,000 square feet to 500,000 square feet in size at plants in Texas, North Carolina and New York. It has 500 employees. Customers of the company include government agencies such as the departments of Defense and Homeland Security as well as schools, healthcare companies and various other businesses. Brazos, a Dallas private equity firm, had acquired Comark in April 2002 for undisclosed terms. The deal stemmed from an auction run by Charlotte, N.C.-based investment bank Edgeview Partners, which represented Comark and Brazos. Weil Gotshal & Manges LLP was counsel to Comark and Brazos, and Latham & Watkins LLP was counsel to Carlyle. Washington-based Carlyle used its $600 million Carlyle Venture Partners fund for equity. Madison Capital Funding LLC supplied revolving credit, and TD Capital and Carlyle Mez-

zanine Partners LP arranged debt financing. The deal was Brazos' second exit through a secondary buyout in less than a year. In August 2005, it sold Shelter Distribution Inc. to Beacon Roofing Supply Inc., a portfolio holding of Chicago buyout group Code Hennessy & Simmons LLC. Brazos also has been buying. It acquired collections agency Collins Financial Services Inc. from its founding shareholders and bought gas tank maker Fuel Systems Inc. from TMB Industries Inc., both for undisclosed sums. It also acquired industrial parts wholesaler ORS Nasco Inc. from Ireland's Unidare plc for $81 million. --KELLY HOLMAN

Wabash hooks on Transcraft

Lafayette, Ind.-based Wabash National Corp. bought Transcraft Corp. for more than $71 million. Both companies make truck trailers. The main seller was Lincolnshire Management Inc., a middle-market buyout firm that had controlled Anna, Ill.-based Transcraft for nearly six years. New York-based Lincolnshire had an 87% stake in the target. Company management's 13% was also included in the sale. If Transcraft reaches certain 2006 performance targets, Lincolnshire will get up to $4.5 million more, according to a statement. The deal reportedly makes Wabash National the largest manufacturer of semitrailers in North America, based on volume. Transcraft designs and makes flatbed and dropdeck trailers. The company generated about $118 million in sales in 2005, according to a statement. "This acquisition is part of our commitment to expand our customer base and grow our market leadership," Bill Greubel, Wabash's CEO, said in a statement. BB&T Capital Markets represented Lincolnshire and Transcraft. Pitney Hardin LLP provided legal advice. Wabash did not use an outside financial adviser. No information was available on its counsel. Transcraft founder William Cunningham began building trailers in 1962. By 1968, he had begun marketing lightweight, heavy-duty flatbed trailers under the Transcraft trademark, according to the company's Web site. --LUISA BELTRAN

Rack manufacturers link up in $48M buy

Naperville, Ill.-based Interlake was sold for $48 million cash to United Fixtures Holdings. The buyer is backed by Wynnchurch Capital Ltd., a Lake Forest, Ill.-based private equity shop. The seller was Sydney, Australia-based Brambles Industries Ltd. The target makes storage racks, while South Bend, Ind.-based United Fixtures makes heavy-duty steel storage and display racks for retail and industrial customers. United Fixtures will assume Interlake's pension liability, which is subject to a working capital adjustment, Brambles said in a statement. The deal is expected to close in April. In late November, Brambles, a global supplier of pallets, announced it would focus on two units: CHEP, its pallet and containers business; and Recall, which helps other companies manage and use information. As part of that strategy, Brambles said it would divest the Interlake business; its Cleanaway unit, a waste management company; and Industrial Services, which outsources maintenance services to mining and steel sites. The divestment of Cleanaway and Industrial Services is expected to generate a total of more than $1 billion, according to press reports. --LUISA BELTRAN

Oneida pays $12M for ORC plastics business

Oneida Molded Plastics LLC, a company backed by private equity firm Laud Collier & Co. LLC, purchased the assets of Reunion Industries Inc.'s ORC plastics division for about $12 million. Chatham, N.J.-based Laud Collier formed Oneida Molded Plastics to make the buy. The ORC unit produces premium injection molded plastics, said Paul Laud, a principal with the firm. Oneida Molded Plastics got four plants in North Carolina and New York. Argosy Investment Partners and Family Capital Growth Partners helped finance the deal with junior capital that included subordinated debt and equity, he said. PNC Business Credit also provided about $9 million of senior debt consisting of a term loan and working capital line of credit. Laud Collier plans to grow the target internally by expanding its product line. Meanwhile, the Oneida, N.Y.-based plastics company will look for potential addon acquisitions, Laud said. --CHRISTINE IDZELIS

THE DEAL'S AUC T I O N B LO C K

MARCH 13 - MARCH 19 2006

AB

9

AUCTION LISTINGS

NOTE: These listings offer a snapshot of auction action and an index to the full Auction Block, available to subscribers at www.auctionblockdatabase.com NEW ON THE BLOCK Bravo! Development Inc., owner of two Italian-American restaurant chains, Bravo Cucina Italiana and Brio Tuscan Grille, with 50 units; based in Columbus, Ohio Henan Shineway Group Co. Ltd., meat processor owned by local Chinese government; based in Luohe, China IMAX Corp., cinema technology company and movie distributor; based in Toronto James River Coal Co., coal mining company; based in Richmond, Va. LSI Logic Corp.'s communications chip business; based in Milipitas, Calif. Source Interlink Cos., distributor of CDs, DVDs and magazines to retailers and directly to consumers; also helps retailers with placement of impulse items and other promotional functions; based in Bonita Springs, Fla. ThyssenKrupp AG's automotive parts division; based in Bochum, Germany OFF THE BLOCK Advantage Sales and Marketing Inc., provider of outsourced marketing and sale to food and consumer product companies; majority-owned by Allied Capital Corp.; based in Irvine, Calif. Europcar Autovermietung GmbH, car rental unit of Volkswagen AG; based in Hamburg Henry Schein Inc.'s hospital supply business; based in Melville, N.Y. Le-Nature's Inc., maker of enhanced water and tea; based in Latrobe, Pa. Shurgard Storage Centers Inc., selfstorage company; based in Seattle Sourcecorp Inc., outsourcing company specializing in document management; based in Dallas VNU NV, market research and trade publishing giant; based in Haarlem, Netherlands Whitbread plc's hotel and restaurant assets; based in London STILL ON THE BLOCK COMPUTERS Borland Software Corp.'s Integrated Development Environment product line; based in Cupertino, Calif. Computer Horizons Corp., provider of IT services; based in Mountain Lakes, N.J. Friendster Inc., Internet social networker; based in Mountain View, Calif. Motorola Inc.'s automotive products unit; based in Schaumburg, Ill. Novell Inc.'s Celerant Consulting unit; based in Waltham, Mass. Oracle Corp.'s OnTarget Inc., sales methodology consultancy; based in Atlanta Tripos Inc., provider of bioinformatics software, consulting and contract research services to life sciences businesses; based in St. Louis ENERGY/OIL/MINING/GAS Allegheny Energy Inc.'s 526-megawatt, gas-fired plant in Tennessee; based in Greensburg, Pa. Alliant Energy Corp.'s power generation assets in China and Mexico; based in Madison, Wis. Chief Oil & Gas LLC, natural gas exploration company; based in Dallas CMS Energy Corp.'s Palisades nuclear power plant; based in Jackson, Mich. Continental Casing Corp., oilfield equipment business; based in Spring, Texas East Coast Power LLC, power plant in Linden, N.J., owned by Goldman, Sachs & Co.; based in New York Ellora Energy Inc., independent oil, gas explorer and developer; based in Denver El Paso Corp.'s three independent power plants in the U.S.; plants in Central America, one plant in China; based in Houston GLM Tanks & Equipment Ltd., oilfield equipment business in Canada owned by Tanglewood Investments Inc., with backing from Yorktown Partners LLC; based in Nikusa, Alberta Houston Exploration Co.'s Gulf of Mexico properties; based in Houston Northeast Utilities' competitive generation and retail marketing businesses along with its energy wholesale marketing and services units; based in Berlin, Conn. Regalito Copper Corp., mining company; based in Vancouver, British Columbia Rippy Energy Inc., oil explorer with properties in North Louisiana; based in Tyler, Texas R.L. Adkins Corp.'s natural-gas-producing properties in the Barnett Shale area in North Texas; based in Sweetwater, Texas Royal Dutch/Shell Group's, oil and gas fields, refineries, chemical plants and liquefied petroleum gas marketing units; based in London and The Hague, Netherlands Scythian Ltd.'s operated properties, such as 335 oil and gas wells in 40 fields in the Permian Basin; based in Midland, Texas Sempra Energy's power plants in Texas; based in San Diego TXU Corp., 20% to 50% of TXU Electric Delivery; based in Dallas Vintage Petroleum Inc., oil fields in East Texas, along Gulf and possibly in Califor-

T H E D E A L' S AU C T ION BLOCK

AB

10

MARCH 1 3 - M A R C H 1 9 2 0 0 6

nia, and unconventional gas reserves in the midcontinent; based in Tulsa, Okla. ENTERTAINMENT/MEDIA/ PUBLISHING 101communications LLC, publisher and operator of conferences for IT community; based in Chatsworth, Calif. CBS Corp.'s Paramount Parks, five theme parks; based in Charlotte, N.C. Crown Media Holdings Inc., owner and distributor of cable TV's Hallmark Channel; based in Studio City, Calif. Emap plc's French subsidiary, which publishes 43 magazine titles; based in Paris Emmis Communications Corp.'s three TV stations; based in Indianapolis GCap Media plc's nine regional radio stations; based in London Guardian Media Group plc's regional newspapers, classified ad titles and radio stations; based in London Herald Media Inc., owner of Boston Herald, Community Newspaper Co.; based in Boston Intrawest Corp., Canadian ski resort operator; based in Vancouver, British Columbia Knight Ridder Inc., newspaper publisher with 30 titles; based in San Jose, Calif. Polestar Group Ltd., printer and distributor of magazines, supplements, owned by Investcorp; based in Milton Keynes, U.K. Primedia Inc.'s Crafts and History Groups; based in New York Reed Elsevier Group plc, new products unit of Reed Business Information, and Reed Exhibitions' portfolio of North American industrial and manufacturing events; parent based in London Sporting News, publishing, Web site and radio network; based in St. Louis Trader Classified Media NV, operator of print and online classified advertising Web sites in Canada; based in Paris

Univision Communications Inc., Spanish-language media company; based in Los Angeles Verizon Communications Inc.'s Information Services unit; based in New York Washington Nationals, owned by Major League Baseball; based in Washington WPT Enterprises Inc., poker TV program developer; based in Los Angeles FINANCIAL SERVICES Alea Group Holdings (Bermuda) Ltd., specialty insurer and reinsurer; 39% owned by Kohlberg Kravis Roberts & Co.; based in Hamilton, Bermuda AlixPartners LLC, turnaround advisory firm; based in Southfield, Mich. AON Corp.'s warranty and credit insurance business; based in Chicago Gartmore Group's European and Japanese operations; based in London General Motors Corp.'s controlling stake in General Motors Acceptance Corp. auto lending arm; based in Detroit Irwin Financial Corp.'s Irwin Mortgage Corp.; based in Indianapolis KBC Group NV's private banking unit, Banco Urquijo; parent based in Brussels, unit for sale is based in Madrid Korea Exchange Bank, a 50.5% stake owned by Lone Star Funds; based in Seoul LG Card Co. Ltd., a 51% stake in South Korean credit card issuer; based in Seoul Marsh & McLennan Cos.' Price Forbes Ltd.; based in Dallas and London PSB Bancorp Inc., parent of First Penn Bank; based in Philadelphia FOOD Associated British Foods plc's SPI Polyols Inc.; based in New Castle, Del. Associated Grocers Inc., wholesale food distributor; based in Seattle Burns Philp & Co. Ltd.'s remaining

snack-food businesses; based in Sydney ConAgra Foods Inc.'s Butterball, Armour and Eckrich meat brands; based in Omaha CSM NV's sugar division, CSM Sugar; based in Diemen, Netherlands Fresh Del Monte Produce Inc., produce company; based in Coral Gables, Fla. Galaxy Nutritional Foods Inc., dairyalternative makers; based in Orlando, Fla. H.J. Heinz Co.'s European frozen, chilled food; based in Hayes Middlesex, U.K. Kraft Foods Inc.'s Milk-Bone dog biscuits; based in Northfield, Ill. Taittinger SA's Taittinger champagne brand; based in Rheims, France Unilever plc/NV's European frozen food brands and U.S. hair-care brands Finesse and Aqua Net; parent based in London HEALTHCARE Adenosine Therapeutics LLC, a developer of adenosine-based therapeutic drug candidates; based in Charlottesville, Va. Alliance Medical Ltd., diagnostics business, a major supplier to U.K.'s National Health Service; owned by Bridgepoint Capital Ltd.; based in Banbury, U.K. Altana AG's pharmaceuticals unit; based in Bad Homburg, Germany Cambrex Corp., biopharmaceutical research products and services business; based in East Rutherford, N.J. Extendicare Inc., major nursing home operator; based in Markham, Ontario Four Seasons Health Care Ltd., private hospital group; owned by Allianz Capital Partners GmbH; based in Wilmslow, Cheshire, U.K. HealthSouth Corp.'s chain of diagnostic centers; based in Birmingham, Ala. ImClone Systems Inc., developer of

THE DEAL'S AUC T I O N B LO C K

MARCH 13 - MARCH 19 2006

AB

11

cancer treatments such as Erbitux; based in New York Iomed Inc., developer of drug delivery systems; based in Salt Lake City Ligand Pharmaceuticals Inc., maker of Avinza for chronic pain sufferers and other pharmaceuticals; based in San Diego Nutrition 21 Inc., maker of nutritional supplements for diabetics; based in Purchase, N.Y. Savient Pharmaceuticals Inc.'s U.K. subsidiary Rosemont Pharmaceuticals Ltd.; based in New Brunswick, N.J. Serono International SA, biotech with treatments for HIV, women's infertility and multiple sclerosis; based in Geneva SkyePharma plc, drug reformulator; based in London Tenet Healthcare Corp.'s two hospitals in the U.S.; based in Dallas INFRASTRUCTURE Atlas Copco AB's U.S. construction equipment rental business; based in Stockholm Brambles Industries Ltd.'s Cleanaway waste management businesses in the U.K. and Australia; based in Sydney KBR, Halliburton Co.'s construction and government contracting unit; based in Houston NES Rentals Holdings Inc., equipment rental, safety services; based in Chicago RWE AG's American Water Works Co., water utilities holding company; based in Voorhees, N.J. Securitas AB's Securitas Direct AB, Securitas Systems AB, Loomis Cash Handling AB units; parent based in Stockholm MANUFACTURING Applica Inc., maker of household appliances; based in Miramar, Fla. Coast Distribution System Inc., maker of parts for recreational vehicles and boats; based in Morgan Hill, Calif.

Collins & Aikman Corp., maker of auto parts; based in Troy, Mich. DaimlerChrysler AG's Smart compact car subsidiary; based in Stuttgart, Germany Dana Corp.'s engine parts, fluid products, pump businesses; based in Toledo, Ohio Degussa AG's water treatment chemicals unit; based in Düsseldorf, Germany, and Parsippany, N.J. Engelhard Corp., specialty chemicals company; based in Iselin, N.J. Featherlite Inc., trailer and luxury coach manufacturer; based in Cresco, Iowa Flexsys NV, venture of Solutia Inc., Akzo Nobel NV to make rubber chemicals; based in St. Stevens-Woluwe, Belgium Goodyear Tire & Rubber Co.'s engineered-products division; based in Akron, Ohio International Paper Co., units including coated papers business, beverage packaging mill, chemicals business; based in Stamford, Conn. Lucite International Ltd., maker of acrylic products, methyl methacrylate; owned by Charterhouse Capital Partners; based in Southampton, U.K. Mando Corp., auto parts maker; majority-owned by Sunsage; based in Seoul Niagara Corp., specialty steel producer; based in New York Paragon Technologies Inc., software, services provider for materials handling systems; based in Easton, Pa. Reinhold Industries Inc., maker of custom composite components and sheet molding components; based in Santa Fe Springs, Calif. Rexnord Corp., maker of conveyor belts and chains for capital equipment; owned by Carlyle Group; based in Milwaukee Royal Group Technologies Inc., plastic buildings products maker; based in

Woodbridge, Ontario Saint-Gobain SA's Saint-Gobain Calmar, plastic pumps, sprayers and dispensers business; based in Grandview, Mont. Sheffield Steel Corp., steel minimill; based in Sand Springs, Okla. Smurfit-Stone Container Corp.'s consumer packaging unit; based in Chicago Textron Inc.'s fastening systems business; based in Providence, R.I. Thomson SA's audio-visual unit; based in Boulogne-Billancourt, France ThyssenKrupp AG, printing equipment maker, toolmaker, tracked-vehicle producer, two other units; based in Düsseldorf Unifi Inc., maker of polyester and textured nylon yarn; based in Greensboro, N.C. Vinnolit GmbH & Co., a producer of polyvinyl chloride; owned by Advent International Corp.; based in Ismaning, Germany REAL ESTATE Apple Hospitality Two Inc., real estate investment trust; based in Richmond, Va. Mills Corp., mall developer; based in Arlington, Va. Sizeler Property Investors Inc., Southeast-focused REIT; based in Kenner, La. RETAIL/CONSUMER GOODS Ashworth Inc., publicly traded golf apparel maker; based in Carlsbad, Calif. Bally Total Fitness Holding Corp., fitness chain; based in Chicago Bradford Group, direct marker of collectibles; based in Niles, Ill. Brown-Forman Corp.'s Brooks & Bentley subsidiary; Tonbridge, Kent, U.K. Buffets Holdings Inc., steakhouse, buffet operator; owned by Caxton-Iseman Capital Inc.; based in Eagan, Minn.

T H E D E A L' S AU C T ION BLOCK

AB

12

MARCH 1 3 - M A R C H 1 9 2 0 0 6

Casino Guichard-Perrachon SA's employee cafeteria business; parent based in Saint-Etienne, France Catalina Restaurant Group Inc., operator of Carrows, Coco's Bakery chains; owned by Wexford Capital LLC and Greenlight Capital Inc.; based in Carlsbad, Calif. Chemtura Corp.'s The Works and Greased Lightning cleaner lines; based in Middlebury, Conn. Compass Group plc's Select Services Partner division in Europe; based in Chertsey, U.K. Daewoo Electronics Co. Ltd., consumer electronics company majority-owned by Korea Asset Management Corp.; based in Seoul Estée Lauder Cos.' Stila makeup line; based in New York Federated Department Stores Inc.'s Bridal Group, based in Philadelphia, and Lord & Taylor chain, based in New York Fellowes Inc., office products company; based in Itasca, Ill. Gurwitch Products LLC, Laura Mercier cosmetics maker, controlled by Neiman Marcus Group Inc.; based in Plano, Texas InterContinental Hotels Group plc, noncore hotels; based in London Jacuzzi Brands Inc., maker of hot tubs; based in West Palm Beach, Fla. Jenny Craig Inc., weight-loss business; based in Carlsbad, Calif. JVH Gaming BV, a gambling machine maker and casino operator owned by ABN Amro Capital and NPM Capital NV; based in Tilburg, Netherlands Kate Spade LLC, designer handbag company, owned by Neiman Marcus Group Inc.; based in New York Kenra LLC, salon hair-care products maker; based in Indianapolis Luxottica Group's Things Remembered chain of gift stores; based in Cleveland Marsh Supermarkets Inc., supermar-

ket chain; based in Indianapolis Myer Ltd., department store chain; based in Melbourne, Australia Next Generation Clubs (Holdings) Ltd., racquet and fitness clubs chain; based in Hatfield, U.K. NV Perricone, a high-end skin care brand; based in Meriden, Conn. Parlux Fragrances Inc., fragrance maker; based in Fort Lauderdale, Fla. PBM Products LLC, private-label baby formula maker; based in Gordonsville, Va. Pep Boys-Manny, Moe & Jack, autoparts and service chain; based in Philadelphia Pfizer Inc.'s consumer healthcare division; parent based in New York Physicians Formula Cosmetics Inc., owned by Summit Partners; based in Azusa, Calif. Procter & Gamble Co.'s Pert Plus shampoo; based in Cincinnati Quiznos Master LLC, 3,500-outlet sandwich chain; based in Denver Real Mex Restaurants Inc., Mexicanstyle food chain; based in Cypress, Calif. S&M NuTec LLC, maker of Greenies, other pet snacks; based in Kansas City, Mo. Saks Inc.'s 40-unit Parisian department store chain; based in Birmingham, Ala. Sara Lee Corp.'s European meats business; based in Chicago Société de Gestion Pierre Cardin sarl, Pierre Cardin's haute couture and related licenses, Maxim's restaurant in Paris and related licences; based in Paris Spectrum Clubs Inc., operator of fitness clubs; owned by Brentwood Associates; based in El Segundo, Calif. Sportcraft Ltd., maker of pingpong tables, other sports equipment; owned by Wasserstein & Co.; based in Mount Olive, N.J. [Wasserstein & Co. is the parent of the fund that owns The Deal LLC.]

Thomas Cook AG, a travel joint venture of KarstadtQuelle AG and Deutsche Lufthansa AG; based in Oberursel, Germany Town Sports International Inc., fitness club operator; owned by Bruckmann Rosser Sherrill & Co. LLC; based in New York TRM Corp., operator of consumer ATM, copier services; based in Portland, Ore. Trust-Mart Group Ltd., foreignowned grocery chain; based in Guangzhou, China TELECOMMUNICATIONS Fastweb SpA, Italian fixed-line telecom operator; based in Milan Hector Communications Corp., phone and broadband provider; based in Hector, Minn. Millicom International Cellular SA, mobile operator; based in Luxembourg Warwick Valley Telephone Co., phone and Internet service provider; based in Warwick, N.Y. TRANSPORTATION Aero Vodochody AS, military jet maker; based in Odolena Voda, Czech Republic Mobile Storage Group Inc., seller and lessor of containers, mobile offices; owned by Windward Capital Partners LP; based in Burbank, Calif. Pemco Aviation Group Inc., a provider of aircraft maintenance and modification services; based in Birmingham, Ala. Scandlines AG, Baltic Sea ferry, joint venture of German and Danish governments; based in Rostock, Germany SCS Transportation Inc., trucking business; based in Kansas City, Mo. Target Express, delivery company; owned by 3i Group plc and Gresham; based in Warrington, U.K. TNT Logistics, provider of logistics services; based in Amsterdam --SOMA BISWAS

THE DEAL'S AUC T I O N B LO C K

Information

031306AB_layout.indd

12 pages

Find more like this

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

674600


You might also be interested in

BETA
Microsoft Word - Document in BLOG ITEM.doc
untitled
Second Life and Other Virtual Worlds: A Roadmap for Research
Balancing the Stress of International Business Travel Successfully: The Impact of Work-Family Conflict and Personal Stress
031306AB_layout.indd