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No More Shoes, PleaseThere was a time, after July of '07, when everyone was waiting for the next shoe to drop. But once Lehman fell, new shoes have been dropping everyday. The pundits who long held that the US economy would stave off a contraction suddenly started talking about a prolonged recession or even a depression, in some scenarios, leaving investors and marketwatchers battered and whiplashed. I’m not even going to pretend to know the solution, but in speaking with the experts, it’s clear there won’t be any quick fix this time around – bailouts, interest-rate cuts or anything else be damned. “There are so many excesses that the economy is going to have to work through,” according to Richard Moody, chief economist and director of research at Mission Residential. In a call with him last week he further described that the credit markets are clogged, housing needs to be stabilized and the banking system needs to be cleaned up. “What makes this recession deeper and more serious than the last downturn, is that the financial system is at the root of all of the problems,” he said. Moody, for the record, is forecasting a contraction to the GDP in the
fourth quarter and the first quarter of next year, with just slight
growth throughout the rest of 2009. 
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DEALSMonomoy Boosts Molded Plastics BizPE shop plans tuck-in with Atlantis, L&P Plastics to expand reach. Emerging Capital Buys African BankEmerging Capital Partners, a private equity firm based in Washington, DC, has acquired a minority stake in Financial BC SA, a regional commercial bank in Lomé, the Togolese Republic. Emerging Capital invested $28 million into the privately-held African bank, intended to assist Financial BC in its expansion efforts into additional countries within western Africa and into central Africa. Tom Gibian, chief executive officer of Emerging Capital, said, “We believe FBC is well positioned in francophone Africa to capitalize on these trends through its strong leadership and commitment to high quality customer service." Financial BC employs 440 employees in 20 branches, and manages $350 million in assets. The bank was founded in 1988 by Remy Baysset, who continues as chairman. Emerging Capital presently manages $1.5 billion in companies across Africa. In addition to the firms headquarters in Washington, DC, Emerging Capital has additional locations in South Africa, Cameroon, Côte d'Ivoire, Tunisia, and Lagos. Pfingsten Partners Keeps BusyPfingsten Partner’s portfolio company, Suzo-Happ Group, has acquired Owens Precision Fabricators, a manufacturer of fabricated metal cabinets for slot and video gaming machines for the gaming industry. Financial terms were not disclosed. Pfingsten Partners has also acquired Technibus, a manufacturer of custom-engineered, metal enclosed bus duct solutions for the power generation, petrochemical, commercial and industrial markets. The company’s products include bar type bus ducts capable of transmitting power from 600 to 38,000 volts. Financial terms were not disclosed. LLR Partners Buys T.H.E. Medical Inc.LLR Partners Buys T.H.E. Medical Inc. LLR Partners has provided equity capital to RecoverCare LLC for its acquisition of T.H.E. Medical Inc. RecoverCare is a supplier of bariatric wound care and safe patient handling products and services to acute care and long-term acute care hospitals, skilled nursing facilities, rehabilitation hospitals, hospice, and home care patients. T.H.E. is a designer, manufacturer and supplier of patient handling and transfer equipment and services in the acute care, LTAC, and long-term care markets. The acquisition provides RecoverCare with a product design and manufacturing platform in the high-growth market for safe patient handling, which RecoverCare will leverage across North America. LLR was represented by Pepper Hamilton in the transaction and RecoverCare was represented by Morgan Lewis. LKQ Buys Chicago Parts BusinessLKQ Corporation, an automobile recycling company in Chicago, Illinois, acquired the assets of Automotive Rebuilders Supply Co., Inc. in an all-cash transaction. Terms of the deal were not disclosed. Automotive Rebuilders Supply is a recycled parts business in Chicago. The company’s revenue over the past year was about $9.5 million. Last month, LKQ acquired Pick-Your-Part Auto Wrecking, an auto recycler with nine recycling locations in California. LKQ manages about 300 dismantling and recycling locations. Apollo Offers $540m to Complete Huntsman DealHexion Specialty Chemicals has secured $540 million from its private equity owner, Apollo Management, to complete its $10.6 billion acquisition of Texas chemicals company Huntsman. Under terms of the new equity commitment, New York-based Apollo has agreed to waive a transaction fee it stood to receive from the acquisition and monitoring fees for the next three years. Hexion's purchase will give it control of a Woodlands, Texas-based chemicals company with 13,000 employees that generated $10 billion in revenues last year. The new move by Apollo, which isn't part of any contractual obligation in the merger agreement between Hexion and Huntsman, comes after Delaware court judge Stephen Lamb ordered Columbus, Ohio-based Hexion to complete its $28-per-share purchase of Huntsman last Monday.
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