Breakingviews

Rob Cox: Why Remington’s investors shouldn’t sell

May 19, 2015

Gun safety groups and Snoop Dogg pressured Cerberus to cleave the maker of a notorious assault rifle from its funds. Now Cerberus can get back to work raising money. Social activists need to behave more like their shareholder brethren to have any hope of changing this business.

Fresh flames rise from Sealy’s ever-burning bed

February 17, 2015

Uppity investor H Partners, alleging serial underperformance and stale private equity directors, wants Tempur Sealy’s CEO fired and a seat on the board. The company and the mattress industry have a torturous financial history. It probably means where there’s smoke, there’s fire.

Dick’s buyout has financially sporting chance

January 8, 2015

The $6 bln U.S. golf-to-guns vendor is mulling a sale to private equity. Low debt at Dick’s Sporting Goods means even with a chunky premium, attractive returns look possible. It would, however, require healthy growth when stiff online competition is challenging many retailers.

Dry powder may explode in buyout barons’ faces

December 18, 2014

Everything is going up in private equity except deal volume. Acquisition multiples are at a record high, as is competition from corporate buyers. For big firms such as Apollo and Blackstone, $1.5 trln of purchasing power may be tough to deploy without cratering returns.

Pharma’s dying assets lack M&A remedy

December 5, 2014

Both GlaxoSmithKline and Sanofi have scrapped sales of mature drugs. The motives differ, but both flops highlight the challenge of finding suitable owners for such assets. Other industries would spawn rollup vehicles. Here, buyers lack expertise, and sellers aren’t desperate yet.

Private equity shows signs of pre-crisis brio

November 25, 2014

Canada’s Onex has bought Swiss packager SIG for up to $4.7 bln in a secondary buyout. It’s one of Europe’s biggest LBOs in five years and deploys pre-crisis levels of leverage. Private equity restlessness and a shortage of big targets created the conditions for a landmark deal.

Carlyle buys a shovel-maker for deal gold rush

November 5, 2014

The private equity firm is teaming up with publisher Euromoney for a $700 mln buyout of Dealogic, the financial data provider. With IPOs, debt issuance and M&A soaring, the acquisition will be a 2014 test of an old adage: in most booms it pays to sell the necessary tools.

Blackstone sale may kick off next deal trend

October 10, 2014

Spinning off its advisory arm marks an end to the buyout firm’s beginning. Merging it with ex-Morgan Stanley banker Paul Taubman’s shop potentially heralds the start of something else. The rise in global M&A could spawn a super-boutique or entice a big bank to buy an indie firm.

Anarchical Vice Media makes orthodoxy a virtue

September 5, 2014

The bad boy of news and entertainment is now worth $2.5 bln. Unlike some Silicon Valley upstarts, though, Vice sold more than a sliver of itself and raised real money: $500 mln. Disney, Hearst and Fox are among its backers. For all the iconoclasm, there are old-school traits.

Square swipes a hollow-looking $6 bln valuation

August 29, 2014

That’s what the payments company may be worth after its latest fundraising. It’s big, but a deflated figure, considering Square’s former hype, the small amount raised, and tech rivals’ ease securing higher valuations. Blame increasing competition for Square’s comparative malaise.