Terra Firma has decided to round up some more cattle by paying A$48 million ($40 million) to add Wrotham Park, a cattle ranch in North Queensland, Australia, to the A$425 million Consolidated Pastoral (CP) acquisition it completed in May. CP is Australia's second-largest beef producer.
On the face of it, this seems like a good move (or should that be “moooove”?). After all, beef exports from Australia are tipped to reach record levels in 2009. There again, as we flicked through the placement memorandum for Kohlberg Kravis Roberts's first-ever fund (1978 vintage), we couldn't help noticing the fund's promise not to invest in “companies which are involved in horse breeding, cattle breeding or general commodity growing”.
Did Henry Kravis know something that Guy Hands has overlooked?
“There is a wall of cash coming towards our investors over the next few years.”
Kurt Björklund, co-managing partner of Permira, tells an industry gathering in London that the buyout firm has a strong pipeline of sale and IPO candidates over the next six to 24 months
“In corporate financiers' fantasies, 2010 is a year of flotations, as private equity firms try to turn deals into dosh for their battered backers.” Andrew Hill, Lombard column, Financial Times
“It is too early to suggest that we are on the verge of the next M&A boom. However, there is a noticeable increase in confidence among corporates and private equity firms that is leading to a renewed interest in pursuing acquisitions.”
Dieter Turowski, head of European M&A at Morgan Stanley, also in the Financial Times
“There is a huge gold mine there waiting for you all.”
David James, a Conservative party member of the UK's House of Lords, urging Lloyds Banking Group to sell its stakes in small and medium-sized businesses to private equity firms. James, a former restructuring specialist, criticised the Labour government for giving the bank financial support without forcing it to lend and sell more
“Life is mostly froth and bubble; Two things stand like stone: Kindness in another's trouble. Courage in your own.”
The opening words of a video introduction to Australian retail group Myer's last profits announcement under private equity ownership (borrowed from Australian poet Adam Lindsay Gordon). TPG and Blum Capital are aiming to raise around $2.34 billion from a November 2 listing on the Australian Stock Exchange, which Myer chief executive Bernie Brookes insists is more than froth and bubble