This week Terra Firma Capital Partners agreed to acquire the UK-based nursing and care home provider, Four Seasons Health Care, for £825mn. The deal sees Terra Firma providing £300mn in equity towards the transaction with the remaining amount provided by Goldman Sachs and Barclays. The company’s 2011 earnings before interest, taxes, depreciation and amortization (EBITDA) was £100mn representing a deal multiple of 8.3x. Terra Firma beat off competition from several other private equity firms including CVC Capital Partners, Patron Capital, Bain Capital, and Formation Capital. The deal is expected to close in July 2012.
Centerbridge Capital Partners announced this week that it will take P.F. Chang's China Bistro, Inc. private for $1.1bn. Centerbridge offered to pay a 30% premium on P.F. Chang’s $39.69 market share price at the time of offering. Goldman Sachs provided financial advice to the company with DLA Piper providing legal care. Deutsche Bank and Wells Fargo Securities provided financial advice to Centerbridge with legal advice provided by Weil, Gotshal & Manges. The deal is expected to close no later than the end of Q3 2012.
Collective Brands Inc., entered an agreement this week to be taken private for $2bn by a consortium of investors including Blum Capital Partners, Golden Gate Capital and Wolverine World Wide, Inc . The deal was supported by JP Morgan Chase and Wells Fargo Bank who provided debt financing to Wolverine World Wide. Other investors received a revolving credit facility from Wells Fargo Capital Finance.
A notable exit announced today was the sale of Fougera Pharmaceuticals to Novartis Pharmaceuticals Corporation for $1.525bn. A controlling interest in Fougera Pharmaceuticals was acquired in June 2006 by Avista Capital Partners, DLJ Merchant Banking Partners (DLJMB) and Nordic Capital. The original deal size was not disclosed.