Deals in Focus

Deals in Focus | US Large Cap 9th March 2020
9th March 2020 Atheneum Team
9th March 2020

Key Atheneum Experts

Current Head of WM – JP Morgan
Current MD Global WM – BoA
Current VP Growth Strategy WM – JP Morgan Chase

Key Information

Financials
HQ – US
Operations – US

Thomas Lee Partners is reportedly exploring partial or full divestment from their stake in Hightower Advisors, says Reuters. The firm generates around $100M in EBITDA and would be valued at $2B. Hightower own investments in 107 advisory businesses, overseeing $87.4B in assets. PE activity in this market is high; 6 of the 10 largest firms receive PE funding. Hightower has $430M of notes due Jan 2025.

Key Atheneum Experts

Former Head of Classified Sales – eBay
Former Head of Sales – eBay
Former CTO – eBay and Gumtree

Key Information

e-Commerce
HQ – US
Operations – Global

As part of Ebay Inc’s continued strategic review, they are moving to sell their classified ads business; EV’d at $10B. eBay confirmed the divesture, and are participating in multiple discussions. The classified business allows users to sell goods and services to their local area, much like Craigslist. eBay sold their ticketing business, Stubhub for $4B to Viagogo.

Key Atheneum Experts

Former VP Project Manager – Boingo
Current Director Mobile Systems – Sprint
Current Director Mobile Engineering – AT&T

Key Information

Communications
HQ – US
Operations – US

Boingo confirmed that there had been numerous take over interests, and the board has onboarded advisors to help them explore options. Shares in the firm rose 13.6% following the news, however, Jefferies and William Blair analysts believe Boingo is in no rush to sell, given their pipeline of assets; and are unlikely to sell unless the offer was higher than the current trading range (Jefferies PT – $25).

Key Atheneum Experts

Former SVP Global Clinical Services – PCI
Former CEO – Nelipak Healthcare Packaging (rival)
Current Director of Operations – Klöckner Pentaplast (rival)

Key Information

Healthcare
HQ – US
Operations – Global

PCI Pharma, backed by majority owners Partners Group, is looking for a new owner. The pharmaceutical outsourcing company appointed Jefferies to ad-vise on options for the $2.5B company, purchased for $1.1B in 2016. Given the EBITDA of $150M; reports believe there will be strong PE interest. PCI was initially a drug packaging company before it produced drugs and now provides support services for new drug development.

Key Atheneum Experts

Former VP Operations – Owens-Illinois
Current EVP Sales – Aptar (rival)
Current President Global Market Development – Aptar (rival)

Key Information

Materials
HQ – US
Operations – US, Australia, New Zealand

New bidders are being sought following reports that Credit Suisse advised PE firm Pacific Equity Partners backed out of the auction for Owens-Illinois. Goldman Sachs has been advising on the sale, which has been open since Oct 19. The glass manufacturing company has an EBITDA of $140M and an EV of $1B.