Blackstone ties up three deals worth $11bn in a day

The Blackstone Group, the US alternatives manager, has put its latest mega buyout fund to work with $11bn invested in three US deals in a day, quashing critics’ concerns that it would struggle to invest such a large pool of capital.

Blackstone has snapped up Encore, an orthopaedic device manufacturer, Michaels Stores, an arts and crafts retailer, and Travelport, a travel company. All three are based in the US.

The US firm wrote a cheque for $870m for Encore, which it will de-list from Nasdaq’s National Market. Bank of America and Credit Suisse provided the debt package for the transaction.

For the $6bn buyout of Michaels Stores, Blackstone teamed up with rival US buyout house Bain Capital. They have invested as equal partners in the transaction, paying a 30% on the company’s share price on March 20, before its announcement that it was to undertake a strategic review.

JP Morgan advised Michaels, while Deutsche Bank, Bank of America and Credit Suisse advised the private equity firms.

Blackstone is also paying $4.3bn in cash to separate Travelport from its listed parent, Cendant, which was advised by Citigroup, JP Morgan and Evercore.

All three deals were funded using capital from Blackstone’s latest fund, which is set for an imminent close with about $15bn in commitments.