FACTBOX-Private equity and sovereign wealth funds revive large leveraged buyouts
Sept 29 (Reuters) - Leveraged buyouts are making a strong comeback after years of muted activity, fueled by private equity firms and sovereign wealth funds targeting high-profile technology, media and consumer companies.
The resurgence underscores cheap debt markets, abundant dry powder and a search for stable cash flows amid public market volatility, culminating in deals such as the proposed $55 billion takeover of Electronic Arts EA.O by Silver Lake, Saudi Arabia's Public Investment Fund and Affinity Partners.
A leveraged buyout, or LBO, is a deal in which a company is acquired largely with borrowed money.
The following are the biggest leveraged buyouts on record:
Target | Acquirer | Deal Value ($ billion) | Announced Date | Post-LBO Status |
|---|---|---|---|---|
Atlantia SpA | Blackstone Inc Edizione SpA | $46.36 | 14-Apr-22 | In 2023, Italy's Atlantia changed its name to Mundys as it aimed to become the biggest infrastructure group globally |
TXU Corp | Kohlberg Kravis Roberts & Co (IBO) Goldman Sachs Capital Partners Texas Pacific Group | $43.80 | 26-Feb-07 | Energy Future Holdings, formerly TXU Corp, filed for bankruptcy in 2014 after it failed to meet its debt obligations as electricity prices weakened |
HCA Inc | Bain Capital LP Kohlberg Kravis Roberts & Co Merrill Lynch Global Private Equity Inc | $32.68 | 24-Jul-06 | HCA became a publicly traded company in 2010 for the third time in its history. It now commands a nearly $100 billion valuation |
Medline Industries Inc | Blackstone Inc Carlyle Group Inc Hellman & Friedman LLC GIC Pte Ltd | $30 | 05-Jun-21 | Years after its leveraged buyout, Medline is eyeing to go public in New York |
ALLTEL Corp | TPG Capital LP Goldman Sachs Capital Partners | $27.87 | 21-May-07 | Alltel was absorbed by Verizon, which bought the wireless carrier for $28.1 billion in 2009 |
First Data Corp | Kohlberg Kravis Roberts & Co (IBO) | $27.73 | 02-Apr-07 | Relisted in 2015; Acquired by Fiserv in 2019 in a $22 billion all-stock deal |
HJ Heinz Co | Berkshire Hathaway Inc 3G Capital Inc | $27.50 | 14-Feb-13 | Merged with Kraft Foods in 2015 to form The Kraft Heinz Company. Kraft Heinz announced in September plans to undo the merger, after years of dwindling growth |
Air Lease Corp | Sumitomo Corp Apollo Asset Management Inc Brookfield Asset Management Ltd Sumitomo Mitsui Financial Group Inc SMBC Aviation Capital Ltd | $27.47 | 02-Sep-25 | Deal expected to close in first half of 2026 |
Harrah's Entertainment Inc | Apollo Management LP Texas Pacific Group | $27.40 | 02-Oct-06 | Renamed to Caesars Entertainment CZR.O in 2010; relisted in 2012 and continues to trade on the Nasdaq under the ticker CZR. Valued at nearly $5.62 billion |
Hilton Hotels Corp | Blackstone Inc | $25.80 | 03-Jul-07 | Relisted in 2013 and continues to trade on NYSE under the ticker HLT. Valued at nearly $61.56 billion, according to LSEG data |
SOURCE: Dealogic
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