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ACG New York Women of Leadership - Entrepreneur Series
Barbara Bradley Baekgaard, founder of Vera Bradley (Nasdaq: VRA), is the latest in a series of entrepreneurs highlighted at ACG New York Women of Leadership events. Photo credit: Robert Blumenfeld

Watercooler

GTCR, Hormel, the Riverside Co-CEOs and Others Win M&A Mid-Market Awards
Amid a slow and challenging year for dealmaking, the winners of Mergers & Acquisitions’ 7th Annual M&A Mid-Market Awards outpaced the competition to grow, innovate and lead the middle market

Roundtable

Financial Services Companies Heat Up M&A Market
Speakers from Flexpoint Ford, Genstar Capital, Baird Capital, Madison Capital Funding and Katten Muchin Rosenman discuss the various factors playing a role in M&A activity within the financial services space

Expert's Corner

Pursuing Pharma Manufacturing
The fragmented pharmaceutical manufacturing industry provides plenty of opportunities for private equity investors, says JLL Partners founder Paul Levy

Today's Transactions:
Carlyle Heads Consortium to Acquire Duff & Phelps for $665.5M

Investment bank Duff & Phelps is allowed to seek higher bids from other potential acquirers until Feb. 8, 2013

Private equity firm the Carlyle Group LP (Nasdaq: CG) teamed with several other financial buyers and agreed, late Dec. 30, to purchase investment banking firm Duff & Phelps Corp. (NYSE: DUF) for about $665.5 million.

The consortium includes Greenwich, Conn.-based Stone Point Capital LLC, Swiss bank Pictet & Cie and Luxembourg-based Edmond de Rothschild Group.

In a statement, Carlyle managing director Olivier Sarkozy, who heads the firm's global financial services group, said a joint-ownership of Duff & Phelps with overseas firms Pictet and Edmond de Rothschild are in line with the target's growth initiatives, which include expanding its international presence.

The transaction will pay $15.55 a share to Duff & Phelps stockholders, a premium of roughly 19.2 percent. The New York-based target, which closed at $13.05 a share on Dec. 28, is allowed a “go-shop” period, during which it will seek higher bids from other acquirers until Feb. 8, 2013.

If Duff & Phelps abandons the deal for a higher offer before March 8, 2013, then it is required to pay Washington, D.C.-based Carlyle and the other buyers a break-up fee totaling $6.65 million—less than one percent of the deal value.

With such a low fee, Duff & Phelps is expected to make a serious effort to determine if there is a rival bidder willing to make a higher offer.

As of Dec. 31, Duff & Phelps has a market capitalization hovering $660 million. The firm tapped Centerview Partners to run the sale process, along with David Fox, Daniel Wolf and Joshua Zacharia of Kirkland & Ellis to handle legal matters.

Barclays plc, Credit Suisse, RBC Capital Markets and Sandler O’Neill and Partners are advising the buy-side private equity firms.

 

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