Reuters: Private Equity: UPDATE 2-CVC Capital to buy control of AlixPartners

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UPDATE 2-CVC Capital to buy control of AlixPartners Apr 24th 2012, 13:13 Tue Apr 24, 2012 9:13am EDT * CVC acquires majority ownership through recapitalization * Deal comes 6 years after Hellman & Friedman investment * AlixPartners valued at more than $1 bln-sources By Soyoung Kim and Greg Roumeliotis NEW YORK, April 24 (Reuters) - Private equity firm CVC Capital Partners Ltd will buy control of AlixPartners as the consulting firm known for its restructuring work pursues global expansion. CVC, which is acquiring majority ownership from previous private equity owner Hellman & Friedman through a recapitalization, said the deal would help further expand the geographic footprint of AlixPartners, which derives one-third of its revenue from outside of the United States. While terms of the transaction were not disclosed on Tuesday, people familiar the matter told Reuters last week that the deal would value AlixPartners at more than $1 billion. a AlixPartners' 125 managing directors, as well as founder Jay Alix, will maintain a minority equity stake in the company. Southfield, Michigan-based AlixPartners competes in the restructuring and bankruptcy space with specialists such as FTI Consulting and Alvarez and Marsal, as well as the turnaround practices of major consulting firms including McKinsey & Company, Boston Consulting Group and Bain & Co. AlixPartners' recent high-profile assignments have included advising General Motors Co on its ongoing restructuring of its money-lossing European Opel unit. Since 2006, AlixPartners has grown from 550 to more than 950 professionals, expanded from 12 to 17 offices globally and expanded into China, Hong Kong and the Middle East. Goldman Sachs Group and Bank of America Merrill Lynch advised AlixPartners and Hellman & Friedman on the transaction. Goldman, Bank of America have also provided committed financing for the transaction along with Deutsche Bank , Jefferies and UBS. Morgan Stanley served as financial adviser to CVC Capital. Hellman & Friedman led a leveraged recapitalization of AlixPartners about six years ago, and acquired a majority stake together with the company's employees. The San Francisco-based private equity firm did not disclose financial terms at that time, but said the transaction puts the total enterprise value of the firm in excess of $800 million. According to ratings agency Moody's, the 2006 leveraged recapitalization transferred an 80 percent equity stake in AlixPartners to a group led by Hellman & Friedman. The transaction valued AlixPartners at $872 million, and was funded with $296 million of cash equity from the private equity firm, a $385 million term loan, and $218 of rollover equity from the founder and management, according to Moody's at that time. Link this Share this Digg this Email Reprints

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