London-headquartered private equity firm Klesch & Co has teamed up with The Jordan Company to buy Transamerica Maritime Containers (TMC) for $1.2 billion (€930 million).
The firms acquired TMC, a global maritime container operator, from Dutch insurance company Aegon. Aegon bought TMC’s parent company Transamerica Financial Corporation in 1999 for £9.7 billion ($18 billion; €14 billion).
The equity split of the transaction was not revealed, but a source close to the transaction confirmed that Klesch & Co will be a “significant minority shareholder” going forward, with The Jordan Company taking a controlling stake in the business.
Jordan and an investor group that includes management will contribute about $200 million in equity and Dutch bank Fortis will provide roughly $1 billion in debt financing, according to a report in The Deal. Aegon will provide interim financing of $275 million, repayable within one year of closing of the deal.
Gary Klesch, the eponymous founder and chairman of the firm who shot to prominence in the early 1990s through a number of high profile corporate restructurings including Eurodisney and Eurotunnel, will become the chairman of the new operating company.
Klesch & Co was founded in 1990. It has made investments with a value of over €2 billion and currently employs 11 investment professionals.
The Jordan Company is a New York-based investment firm with approximately $2.5 billion under management. The firm has been investing in mid-market leveraged buyouts for more than 20 years and has a portfolio of more than 20 investments.
Jordan is currently investing the Resolute Fund, a $1.5 billion vehicle that closed in October 2002. The Resolute Fund was the first time that Jordan sought capital through a limited partnership structure, having previously drawn funds from its partners and a publicly traded entity on the London Stock Exchange called J.Z. Equity Partners.
Yesterday, Jordan announced the sale of its entire interest in portfolio automotive company Acadia Elastomers Corporation to a subsidiary of Parker Hannifin Corporation. Terms of that transaction were not disclosed.