FORTUNE -- Private equity firm Hellman & Friedman this morning announced an agreement to acquire Chicago-based insurance broker Hub International for approximately $4.4 billion. The primary seller would be Apax Partners, which took Hub private in 2007 for approximately $1.8 billion.
Some notes on the deal:
1. The 2007 take-private included around $700 million in equity, from Apax, Morgan Stanley Principal Investments (MS) and Hub International employees. Apax put in the largest piece, and is expected to generate a 3X return. Fairly impressive, given that most 2007 deals were done at inflated valuations (Hub's take-private was at a 28% premium to the 90-day trading average).
2. Reuters had reported in April that Apax was seeking "around $2 billion" for Hub. My understanding, however, is that the report was off base at the time. Or, as one source puts it to me, "I think someone blew the math."
3. Since the time of its original buyout, Hub International effectively doubled EBITDA. Some of this was via acquisitions -- financed primarily via new debt -- and geographic expansion into new markets like Brazil.
4. The equity sponsors did not take a dividend during their ownership, nor was there serious consideration of taking Hub private. Due to its heady cash-flow (which, in turn, enables leverage), it was always considered an M&A exit to either a financial buyer (like Hellman & Friedman) or a strategic.
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British buyout firm under pressure.
FORTUNE -- Apax Partners is planning major cutbacks, as it struggles to reach its €9 billion fund-raising target.
Dow Jones first reported the news this morning, saying that the private equity giant would cut 10% of its investment staff, significantly reduce its London headquarters footprint and close its offices in Italy and Spain.
The investment staff reductions will involve 11 positions, with Fortune learning that it includes six partners. No MOREDan Primack - Mar 22, 2013 10:40 AM ET
I don't like dividend recapitalizations. No, that's too mild. I despise them.
From my (apparently) naïve perspective, private equity firms should buy a company, help grow it and then sell it. Returns should come from the difference between purchase price and sale price, not by adding even more debt onto a company for the primary purpose of enriching shareholders. It's greed masquerading as risk management, and undercuts valid PE industry arguments MOREDan Primack - Dec 7, 2011 11:12 AM ET
Apax Partners discusses its $6.3 billion bid to take Kinetic Concepts private.
Wound care company Kinetic Concepts (KCI) today agreed to be acquired by a private equity consortium that includes Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.
The $68.50 per share deal values Kinetic Concepts at $6.3 billion (including the assumption of debt). It's a 6% premium to where the company's stock was trading yesterday, and a MOREDan Primack - Jul 13, 2011 11:38 AM ET
Ok, maybe Europe's mega-buyout market is a lot healthier than a lot of us thought after the implosion of Candover and stock-related struggles at Permira.
Multiple sources tell Term Sheet that Apax Partners has told investors that it plans to target €9 billion for its next Europe-focused buyout fund.
It would be the most ambitious private equity fund-raising effort since The Blackstone Group snared more than $15 billion (or €10.5b, at today's MOREDan Primack - Mar 24, 2011 11:37 AM ET
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