CG - The Carlyle Group L.P.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
23.50
-0.17 (-0.72%)
As of 12:09PM EDT. Market open.
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Previous Close23.67
Open23.60
Bid23.46 x 800
Ask23.46 x 1300
Day's Range23.27 - 23.82
52 Week Range15.09 - 25.20
Volume270,561
Avg. Volume780,101
Market Cap7.912B
Beta (3Y Monthly)1.59
PE Ratio (TTM)13.71
EPS (TTM)1.71
Earnings DateJul 31, 2019
Forward Dividend & Yield0.76 (3.21%)
Ex-Dividend Date2019-05-10
1y Target Est26.54
Trade prices are not sourced from all markets
  • GlobeNewswire4 hours ago

    The Carlyle Group to Announce Second Quarter 2019 Financial Results and Host Investor Conference Call

    WASHINGTON, July 18, 2019 -- Global investment firm The Carlyle Group L.P. (NASDAQ: CG) will host a conference call at 8:30 a.m. EDT on Wednesday, July 31, 2019 to announce its.

  • United contract change leads to layoff of more than 400 workers at DIA
    American City Business Journals2 days ago

    United contract change leads to layoff of more than 400 workers at DIA

    PrimeFlight Aviation Services is laying off 439 workers who work under a contract the company previously had with United Airlines at Denver International Airport. … PrimeFlight anticipates that many of these employees will be hired by the replacement vendor,” the WARN Notice said.  Employees were notified of the layoffs beginning on Monday.

  • A $4.2 Billion Bid to Crash a Private Equity Party Fails
    Bloomberg2 days ago

    A $4.2 Billion Bid to Crash a Private Equity Party Fails

    (Bloomberg Opinion) -- Just what is AMS AG up to?On Monday, the supplier to Apple Inc. made a short-lived, 3.7 billion-euro ($4.2 billion) effort to snatch Osram Licht AG from private equity firms Bain Capital and Carlyle Group LP, which had sewn up a lower-priced takeover of the German lighting-maker earlier this month.The abortive effort will underscore investor concerns about the company’s strategy under Chief Executive Officer Alexander Everke. The former NXP Semiconductors NV executive has spent billions of dollars trying to position AMS to capitalize on demand for new sensing technology used in the iPhone’s Face ID recognition system. But after his three years at the helm, the stock is trailing peers Finisar Corp. and Lumentum Holdings Inc.The flirtation with Osram was short and not particularly sweet. At 5:52 p.m. in London, Bloomberg News reported that AMS had made an offer for the Munich-based firm, some 11 days after Osram’s board accepted the private equity firms’ 3.4 billion-euro bid. Within 15 minutes, the target released a statement confirming it had received a non-binding offer from AMS. The company dismissed “the probability of this transaction materializing as rather low.” By midnight, AMS declared it was ending the takeover talks.Maybe the approach was an attempt to get a closer look at Osram’s books, or its 3-D sensing technology. If it was, then full credit to the lighting giant for calling Everke’s bluff, since financing for AMS’s bid wasn’t yet fully in place. While Osram said it would let the bidder perform due diligence, it was quick to emphasize that it could only do so under strict conditions.If it was a serious bid, then AMS shareholders have every right to feel bewildered. The target largely operates in the slowing automotive market, so would have hardly offset stagnating smartphone sales. Concern that the company may be more open to outsized and strategically questionable dealmaking than investors assumed helped to push the stock down by as much as 4.6% on Tuesday morning.Everke would have been asking for a lot of faith from investors to finance the deal. The company was planning to sell new stock – but would still have been left with net debt equivalent to about 27 times this year’s predicted free cash flow. This would have tried investor patience, which has already been sorely tested. AMS has spent $2 billion over three years buying companies and expanding production capacity to secure a dominant position supplying components for 3-D scanners in the latest generation of iPhones, only for sales of the handsets to promptly slow. AMS shares are 66% below their 2018 peak.In 2017, Everke predicted 2019 sales would exceed $2.7 billion, with an Ebit margin of at least 30%. After scrapping its dividend and year-ahead guidance figures in May, analysts now expect the company to report a 10% Ebit margin on sales of just $1.9 billion. Communication from management has been particularly poor, according to Hauck & Aufhaeuser Privatbank analyst Robin Brass.Everke’s short-lived move on Osram looks like a shot in the dark. If his big bet on smartphones isn’t paying off, he needs to shed some light on what his new strategy is.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • With a $1B valuation, DiscoverOrg is charging hard toward a possible IPO
    American City Business Journals6 days ago

    With a $1B valuation, DiscoverOrg is charging hard toward a possible IPO

    Co-founder and CEO Henry Schuck has cultivated a metrics-driven culture that has sparked impressive growth

  • Financial Times7 days ago

    Carlyle raises $3bn for new private credit fund

    Private equity firm Carlyle has raised about $3bn for a new fund that will lend directly to companies, as investors from pension plans to insurance companies chase returns in a world of near record-low interest rates. Carlyle’s new credit fund, which exceeded an original target of $2bn, has already handed out $850m in loans to 10 companies in North America and Europe. “We’ve made tremendous progress over the past three years expanding the global credit platform and this marks another important step forward in that effort,” Mark Jenkins, managing director at Carlyle, said of the fundraising.

  • Barrons.com9 days ago

    Carlyle Group May Be the Last Private-Equity Firm to Convert. That’s Good News for Its Stock.

    Private-equity firms have been switching their ownership structures to C-Corporation, and Carlyle Group may be the latest to make the jump. Carlyle stock rose on the news.

  • Carlyle Plans to Announce Conversion to C-Corp With Earnings
    Bloomberg9 days ago

    Carlyle Plans to Announce Conversion to C-Corp With Earnings

    (Bloomberg) -- Carlyle Group LP is planning to announce that the private equity firm will convert to a corporation when it reports second-quarter earnings, according to people with knowledge of the matter.The shares rose 4.1%, the biggest one-day jump since April.The Washington-based firm would be the last of the private-equity giants to switch from a partnership to a corporation, known as a C-corp -- a move designed to bring more investors into the stock. KKR & Co., Blackstone Group Inc., Apollo Global Management LLC and Ares Management Corp. all have seen their share prices jump since they made the change, which enables them to be included in indexes, mutual funds and exchange-traded funds.Carlyle, which hasn’t announced its earnings release date, has been exploring the move for several months. A representative for the firm declined to comment.“The pain of converting from a tax point-of-view is negligible and the benefits are substantial,” said Robert Willens, an independent tax consultant. “We’ve seen the stocks of these companies increase since their conversions, proving the theory that motivated them was a valid one.”Carlyle has mostly lagged behind its rivals since KKR announced in May 2018 that it would convert. Carlyle’s shares are up about 18% since then, less than KKR and Apollo. Blackstone has been the best performer, jumping about 50%.“The benefits we’ve seen from the conversions have not gone unnoticed,” Carlyle co-Chief Executive Officer Kewsong Lee said in a May conference call with investors. “There are many complex operational moving parts in connection with a conversion, and we intend to conclude our thinking with a decision in the not too distant future.”Private equity executives, who have a lot of their personal wealth in company stock, have long complained that their businesses are being undervalued by public investors. The catalyst for the switch was the new tax law in December 2017, which slashed the corporate rate to 21% from 35%.(Updates share gain in second paragraph.)\--With assistance from Melissa Karsh.To contact the reporter on this story: Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Vincent Bielski, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Osram Accepts $3.8 Billion Offer From Bain and Carlyle
    Bloomberg13 days ago

    Osram Accepts $3.8 Billion Offer From Bain and Carlyle

    (Bloomberg) -- Osram Licht AG’s supervisory and managing boards accepted a 3.4 billion euro ($3.8 billion) takeover bid from Bain Capital and Carlyle Group LP, ending the German lighting company’s relatively brief and at times contentious period as a standalone company.Bain and Carlyle are offering 35 euros a share, 21% more than the stock’s close on Tuesday, amid reports about the latest offer. The price is still 15% lower than its peak this year in February. They’ve put a minimum acceptance level of 70% on the deal, excluding shares owned by Osram, and the acceptance period will run until early September. The stock rose 1.4% to 32.94 euros at the open of trading in Frankfurt.“Bain and Carlyle bring a lot of experience and have a deep knowledge of the industry,” Ingo Bank, Osram’s chief financial officer, said in a Bloomberg TV interview on Friday. “They will help us build the portfolio.”Bloomberg reported earlier Thursday that Osram’s supervisory board was poised to accept the offer.After Siemens AG spun off the light bulb-making division in 2013, Osram Chief Executive Officer Olaf Berlien began to refocus on higher technology, sparking a bitter and public dispute over strategy. Bain and Carlyle’s purchase of Osram would add to the $51.6 billion in private equity buyouts of European companies announced this year, according to data compiled by Bloomberg.Negotiations to buy Osram have moved slowly since they were first revealed in February. Funding has been a challenge as potential lenders raised concerns about future earnings forecasts for the company after Osram issued a string of profit warnings.Osram’s earnings deterioration during negotiations had a big impact on the deal, and the bidders also had concerns about the impact of the U.S.-China trade war on business. Bain and Carlyle were able to push down the offer price, but also struggled to raise a significant amount of debt, people familiar with the matter said. In the end about 70% of the acquisition cost -- an unusually high proportion -- comes from equity, or cash contributed by the buyers, while the remainder will be borrowed money, the people said.The offer is unlikely to include a so-called material adverse change clause, one of the people said, a provision that would allow the buyer to withdraw from the transaction if certain negative events like a fresh profit warning arise. The buyout firms declined to comment.Osram suffered from a downturn in the automotive industry, yet there remain growth opportunities in that sector, including with autonomous vehicles and continued digital lighting, Bank said in the interview. Bain and Carlyle will be focused on margin improvement as well as growing the business, he added.What Bloomberg Opinion Says“It would require real guts to turn down what Bain and Carlyle are dangling. Osram was already in a weak state when news about the potential bid first emerged in November.”--Bloomberg Opinion columnist Chris HughesThe German company has struggled since it was spun off from Siemens. Berlien shifted Osram’s focus to high-tech specialized lighting and LED chips, although he’s failed to get a handle on weakening market demand as European car sales drop. He has also tried to branch out into new areas to attract revenue such as through the purchase of horticultural lighting maker Fluence.Bain and Carlyle support the company’s strategy, and the bid is “attractive to employees as a lot of the labor provisions will stay intact so, yes, we support the offer,” Bank said.Osram now has the task of getting shareholders on board. Given the board’s acceptance of the offer came just last night, Bank said the company “doesn’t have much feedback” from shareholders yet, but expects the bid to receive “very good support” from investors.The company is hoping to avoid the fate of other take-privates in Germany such as online classifieds operator Scout24 AG, where Blackstone Group LP and Hellman & Friedman in May failed to convince sufficient shareholders to sell amid pressure from hedge funds to boost the offer price.AMS InterestDuring negotiations with Bain and Carlyle, Austrian sensor manufacturer AMS AG made an informal approach about a potential takeover of Osram, according to people familiar with the matter. While there was some strategic fit to a deal, Osram decided against pursuing talks because of concerns about the feasibility of AMS to fund the transaction due to its size and debt levels, said the people.A representative for AMS, which has a market value of $3.4 billion and counts Apple Inc. among its key clients, declined to comment.Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Macquarie Group Ltd. as well as Nomura Holdings Inc. were financial advisers to Bain and Carlyle. Perella Weinberg Partners LP worked with Osram.(Adds info on offer, AMS interest and advisers from seventh paragraph.)\--With assistance from Andrew Noël.To contact the reporters on this story: Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.netTo contact the editors responsible for this story: Matthew G. Miller at mmiller144@bloomberg.net, Amy Thomson, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg14 days ago

    We’re From Private Equity and We Aim to Underwhelm You

    (Bloomberg Opinion) -- Europe’s latest bid by a leveraged-buyout firm puts investors in a tricky spot. The 3.4 billion-euro ($3.8 billion) offer for German lighting group Osram Licht AG values the company’s shares at less than what they were trading at as recently as March. Nevertheless, it would require real guts to turn down what Bain Capital and Carlyle Group LP are dangling.Osram was already in a weak state when news about the potential bid emerged in November, pushing the stock as high as 41 euros. A profit warning in March – the company’s sixth in little more than a year – dragged the shares down to 25 euros, and they would doubtless have sunk even lower had the takeover talks not been rumbling on. The 35 euros-a-share offer is some 39% above that low point, and 22% above the average price over the past three months.At 3.8 billion euros including net debt, the mooted valuation is a generous nine times estimated Ebitda for 2020. Signify NV, a Dutch rival that was formerly part of Royal Philips NV, trades at just six times that metric.These dynamics should focus the minds of Osram’s supervisory and management boards as they weigh the offer. The share price would suffer badly if this deal failed. Moreover, the company would need a very convincing strategic plan to justify turning it down. Its current team will struggle to make the case for staying independent after presiding over the sharp decline in the stock since the start of 2018.Osram has some funky technology and the rise of autonomous vehicles could be its savior. But, for now, it has become uncompetitive in markets that have themselves deteriorated. Ebitda this year is forecast to fall by 50%. Turning the company around will require greater focus, necessitating asset sales and job cuts to reduce costs. The financial performance has to get worse before it gets better – whoever is in charge.In turn, that need for restructuring makes this a particularly risky buyout. A declining business in a cyclical industry is difficult to load up with debt. Financing for the transaction is thus likely to be mainly equity-based – hence the need for two buyout firms on what is otherwise a relatively small deal.To make a mid-teens internal rate of return over five years requires doubling the equity value of an investment. With little benefit from leverage, that would mean having to grow the enterprise value by almost the same proportion.It’s hard to see what the business will look like in 2025. Bain will probably make its return by breaking up the company and selling it in chunks at varying profit multiples rather than offloading it in one jumbo exit.The math might just work. Analysts reckon Osram in its current form could make about 760 million euros of Ebitda in 2023. If Bain can do a bit better than that and sell at a blended multiple similar to the one at which it is buying, it should be able to double its money and earn its return.Could Osram do the same thing as a public company? Quite possibly. But maybe not with the current management – or shareholders.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Osram Gets $3.8 Billion Buyout Offer From Bain, Carlyle
    Bloomberg14 days ago

    Osram Gets $3.8 Billion Buyout Offer From Bain, Carlyle

    (Bloomberg) -- Bain Capital and Carlyle Group LP have made a 3.4 billion euro ($3.8 billion) bid to acquire German lighting firm Osram Licht AG, concluding months of negotiations for the long-sought deal.Osram stock rose as much as 5.1% to 33.90 euros on Thursday after the former Siemens AG spinoff confirmed it has received a binding offer of 35 euros a share and will decide “shortly” whether to accept it. The company’s supervisory board is scheduled to meet later to vote on the agreement, according to a person with knowledge of the matter.Representatives from Carlyle and Bain declined to comment.A deal would mark the end of Munich-based Osram’s relatively brief and at times contentious period as a standalone company. Siemens spun off what was a light bulb-making division in 2013 after which Osram Chief Executive Officer Olaf Berlien began to refocus on higher technology, sparking a bitter and public dispute over strategy. Bain and Carlyle’s purchase of Osram would also add to the $51.6 billion in private equity buyouts of European companies announced this year, according to data compiled by Bloomberg.What Bloomberg Intelligence Says“A 35 euro-a-share bid implies an enterprise value of 3.9 billion euros and a 12-month forward EV/Ebitda multiple of 7.7x, based on our scenario analysis. This is slightly above the 7.5x average for the BI global lighting peer group and seems fair, given Osram’s dim profit outlook and high exposure to the beleaguered automotive end-market.”\-- Jawahar Hingorani, European industrials analystClick here to read the researchNegotiations to buy Osram have moved slowly since they were first revealed in February. Funding has been a challenge as potential lenders raised concerns about future earnings forecasts for the company after Osram issued a string of profit warnings.That led the banks to reconsider the terms they were willing to offer on an acquisition loan, said people familiar with the matter, who asked not to be identified discussing the details.Osram in March announced its sixth profit warning in just over a year as orders slowed for its lights and components, which are used in cars and smartphones. The company said in May the general economic slowdown is hurting its business.Read more: Osram Stands by Outlook as Takeover Talks ContinueThe German company has struggled since it was spun off from Siemens. Berlien shifted Osram’s focus to high-tech specialized lighting and LED chips, although he’s failed to get a handle on weakening market demand as European car sales drop. He has also tried to branch out into new areas to attract revenue such as through the purchase of horticultural lighting maker Fluence.(Adds shares in second paragraph.)To contact the reporters on this story: Sarah Syed in Berlin at ssyed35@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, ;Ben Scent at bscent@bloomberg.net, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Gabrielle Rubenstein’s new private equity firm focuses on healthy foods
    Yahoo Finance16 days ago

    Gabrielle Rubenstein’s new private equity firm focuses on healthy foods

    Billionaire investor David Rubenstein's daughter founded a private equity firm focused on healthy food investments.

  • ‘That wasn’t her decision’: Why Taylor Swift’s record label beef misses the point
    Yahoo Finance17 days ago

    ‘That wasn’t her decision’: Why Taylor Swift’s record label beef misses the point

    Taylor Swift's catalog is part of a $300 million acquisition of Big Machine Label group by mega-manager Scooter Braun. The singer-songwriter calls the deal part of her "worst nightmare."

  • Moody's20 days ago

    PES Holdings, LLC -- Moody's downgrades PES to Ca following announcement to cease operations

    Moody's Investors Service ("Moody's") downgraded PES Holdings, LLC (PES) Corporate Family Rating (CFR) to Ca from B2, Probability of Default Rating (PDR) to Ca-PD from B2-PD, its Tranche A first lien term loan facility to Caa1 from Ba2, and its Tranche B and Tranche C of its first lien term loan facility to Ca from B2. "The downgrade and the negative outlook reflect the ongoing uncertainty behind the company's future prospects and our expectation of weak collateral coverage for PES's debt after the massive fire incident on June 21," said Arvinder Saluja, Moody's Vice President.

  • The New Terminal One Team Helps Launch Queens High School Students Into Aviation Careers As The JFK Redevelopment Program Community Initiative Gains Altitude
    PR Newswire21 days ago

    The New Terminal One Team Helps Launch Queens High School Students Into Aviation Careers As The JFK Redevelopment Program Community Initiative Gains Altitude

    JAMAICA, N.Y., June 27, 2019 /PRNewswire/ -- The New Terminal One Team took to the skies today announcing an innovative community initiative to provide flight-training scholarships to rising students in the August Martin High School Aviation Academy as the air travel industry predicts a global shortage of pilots in the future, officials said.

  • Bloomberg21 days ago

    A Next-Generation Rubenstein Seeks Investments in Healthy Food

    (Bloomberg) -- Gabrielle “Ellie” Rubenstein is getting into the family business. The 31-year-old daughter of Carlyle Group co-founder David Rubenstein formed Manna Tree Partners last year to invest in companies focused on healthy food.As a downhill racer and food allergy sufferer, Ellie Rubenstein has long been interested in nutrition. The 2010 Harvard University graduate, who went on to study agriculture economics and agribusiness management in a joint program at Purdue and Indiana, saw the opportunity to create Manna Tree while making food investments at Declaration Capital, which manages her family’s fortune.Co-founded with Ross Iverson and Brent Drever in May 2018, the firm’s first bet was Vital Farms, among the largest brands of pasture-raised eggs and butter in the U.S.“Ellie and her partners have an immense amount of drive and have found an attractive niche, which is clearly resonating with the marketplace,” said David Rubenstein, who is also the host of a Bloomberg Television series in which he interviews fellow business luminaries.Private equity firms like Carlyle have ballooned in size since their inception in the 1980s, when they gained fame for leveraged buyouts of firms like RJR Nabisco Inc. Today, they’re among the world’s biggest lenders and owners of real estate and the founders of the largest groups have all become billionaires with their own family offices.For now, Manna Tree is relatively small, operating with a team of nine, including six women.Ellie Rubenstein says the next generation of asset managers will focus on helping companies grow without taking complete control.“Managers want to be involved, but need help getting to the next level,” she said. “We want to make sound decisions with what we see in our own generation.”Manna Tree will face considerable challenges. Among them: Having to chase deals at a time when competition is more fierce than ever. A record 3,749 private equity funds were in the market at the start of this year, according to Preqin.While investors still have an appetite for smaller firms, they’re giving more money to giants, with the 10 largest funds in 2018 accounting for almost a quarter of capital raised, Preqin data show.‘Big Difference’Vital Farms considered about 40 different players in the private equity arena before settling on Manna Tree. Having a link to the Carlyle co-founder made it easier to go with a new firm, said Matt O’Hayer, executive chairman of Vital Farms.“Carlyle by itself is not the kind of firm we would look to,” said O’Hayer, who started Vital Farms in 2007. “Mission is really important to us. Ellie was really focused on good-for-you foods and sustainable agriculture, all the things we are about, and that made a big difference.”From the perspective of a potential portfolio company, taking on a private equity firm as minority partner is more palatable than losing control, said Drever, co-founder and chief operating officer of Manna Tree.“It opens more doors for us,” said Drever, who has experience coaching and training companies. “We’re not a threat to them.”Manna Tree had raised about $23 million as of the end of March, a regulatory filing shows. The Vail, Colorado-based firm declined to comment on how much money it’s raised. David Rubenstein has a 10% stake in the general partnership.Learning From DadEllie Rubenstein and her team are seeking businesses with $10 million to $50 million of revenue -- and with a chance to grow to as much as $250 million in five to seven years. To find the next opportunities, Ellie Rubenstein has borrowed a page from her father’s playbook. Since she started her own business, she’s spent about 300 days on the road.Ellie Rubenstein said she’s been learning from her father for most of her life. She remembers accompanying him on a trip to Japan when she was in third grade, watching him make global connections as she toured a fish market. These days, he’s quick to swap his suit and tie for farm clothes, joining Ellie to meet with prospective companies.“It’s exciting for me to have my dad in an environment that’s not expected,” Ellie Rubenstein said. “He gives us advice to help us achieve milestones.”To contact the reporter on this story: Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Alan GoldsteinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • A Beaverton digital company adds to its quickly expanding base
    American City Business Journals23 days ago

    A Beaverton digital company adds to its quickly expanding base

    In its second acquisition since May, digital services company ProKarma has acquired a Memphis, Tenn.-based marketing software specialist. The agreement to purchase Vanick Group is part of the Beaverton-based firm’s larger strategy to transform its original custom software business to a company that provides services to clients undergoing their own digital transformation. ProKarma’s customers had asked for more help with APIs.

  • Bill Gates talks global challenges, biggest regret to D.C.-area business leaders
    American City Business Journals23 days ago

    Bill Gates talks global challenges, biggest regret to D.C.-area business leaders

    The famed Microsoft founder talked about the one thing he thinks had set the tech giant back in recent years.

  • Bain, Carlyle Face Tough Funding Talks in Osram Pursuit
    Bloomberg23 days ago

    Bain, Carlyle Face Tough Funding Talks in Osram Pursuit

    (Bloomberg) -- Bain Capital and Carlyle Group LP’s pursuit of Osram Licht AG faces a key test this week as the buyout firms meet banks to discuss funding a potential bid for the German lighting business, people with knowledge of the matter said.Potential lenders to the consortium have raised concerns about future earnings forecasts for the company after Osram issued a string of profit warnings, according to the people. That has led the banks to reconsider the terms they’re willing to offer on an acquisition loan, the people said, asking not to be identified because the information is private.The financing complications have made it more difficult for the suitors to meet Osram’s asking price, one person said. Osram has been seeking about 36 euros per share, which would value the Munich-based firm at around 3.5 billion euros ($4 billion), the people said. Bain and Carlyle have so far struggled to justify a bid at that level, according to one of the people.Bain and Carlyle remain in talks with lenders on financing for a potential offer, according to the people. The situation is fluid, and the buyout firms could make a decision as soon as the next few days about whether to proceed with a formal bid, they said. Representatives for Bain, Carlyle and Osram declined to comment.Osram was initially hoping to reach a preliminary agreement on price with the suitors last week, though negotiations have dragged on, the people said. It hasn’t helped that Osram’s shares have risen nearly 10% since the beginning of last week, narrowing the potential premium from any offer. They were trading at 27.63 euros on Tuesday afternoon in Frankfurt, giving the company a market value of 2.7 billion euros.Negotiations to buy Osram, a former Siemens AG unit, have been moving slowly since they were first revealed in February. Osram in March announced its sixth profit warning in just over a year as orders slowed for its lights, which are used in cars and smartphones. The company said in May the general economic slowdown is hurting its business.Read more about Osram’s financial results here.Osram Chief Financial Officer Ingo Bank said in a Bloomberg Television interview in May that talks with the company’s private equity suitors were continuing, though the question of whether they’d finally place a bid was still open.\--With assistance from Oliver Sachgau.To contact the reporters on this story: Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.netTo contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, ;Kenneth Wong at kwong11@bloomberg.net, Amy Thomson, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Bitter Contest for China’s Online Shoppers
    Bloomberg24 days ago

    The Bitter Contest for China’s Online Shoppers

    (Bloomberg Opinion) -- Carrefour SA, Europe's largest retailer,  may be the latest Western company to pull back from China. It’s unlikely to be the last.On Monday, the hypermarket operator said it would sell 80% of its China business for 4.8 billion yuan ($699 million) in cash to Suning.com, the Chinese retailer backed by Alibaba Group Holding Ltd. Carrefour will retain a 20% stake. Over the past few years, the French company’s plans to shrink its China footprint has been one of the worst-kept secrets in banking. Though Carrefour sold the business pretty cheaply – with a valuation of 0.2 times 2018 sales, compared with the industry average of 0.84, according to Citigroup Inc. – loosening its ties to the mainland may be a smart move, whatever the price. With sales in the country flagging and losses piling up, the deal comes as China’s macroeconomic picture is also darkening.Yet the key challenge for Carrefour preceded the trade war. In recent years, online-only players such as Alibaba have been piling pressure on brick-and-mortar operations, with Tesco Plc, Best Buy Co. and Marks & Spencer Plc each announcing plans to pull back from the mainland market. Carrefour’s share of the country’s hypermarket segment fell to 4.6% last year from 8.2% in 2009, Citi writes.(1)   That’s a problem in a country with one of the world’s biggest rates of e-commerce penetration. China's online retail sales reached 3.86 trillion yuan in the first five months of this year, accounting for more than one-fifth of the country's total purchases of consumer goods, according to a recent report by the Chinese Academy of Social Sciences. To make matters worse, foreign brands no longer have the cachet they once enjoyed – at least in low-end consumer goods. In a survey last year, Credit Suisse AG said that Chinese consumers preferred domestic purveyors in categories like food and drinks and home appliances. With the trade war whipping up nationalist fervor, that trend may accelerate: The bank's latest poll of shoppers 18 to 29 years old showed that 41% preferred phones made by Huawei Technologies Co., up from 28%, while interest for Apple Inc.’s products fell to 28% from 40%.For many firms, ceding control to a local partner is probably the best way forward. Carrefour appears to be borrowing a page from the playbook of McDonald’s Corp., which sold 80% of its China business in 2017 to a tie-up between state giant Citic Group Corp. and private equity firm Carlyle Group LP.Or consider Walmart Inc., which sold its e-commerce delivery site to JD.com Inc. in 2016 in exchange for a stake in the Chinese retailer. The U.S. firm now aims to open 40 of its Sam’s Club stores in China by 2020. Costco Wholesale Corp. is also betting on China’s appetite for bulk buying, with plans to open its first bricks-and-mortar store in August. Whether Costco can pull this off without a local partner remains unclear.What is clear is that Carrefour won’t be the last retailer to rethink its China strategy. Germany's Metro AG is also looking to sell its $1.5 billion Chinese business. At a time when Chinese acquisitions overseas have dried up, bankers at least can thank Western firms for managing to drum up some business from the mainland. (1) The bank citesEuromonitor International research.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Moody's27 days ago

    TurboCombustor Technology, Inc. -- Moody's upgrades TurboCombustor ratings (CFR to B3); outlook stable

    Moody's Investor's Service ("Moody's") upgraded its ratings for TurboCombustor Technology, Inc. ("TurboCombustor"), including the Corporate Family Rating (CFR) to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa2-PD. Concurrently, Moody's upgraded its ratings on the company's senior secured term loan and senior secured revolver to B3 from Caa1.

  • Moody's28 days ago

    Accudyne Industries Borrower S.C.A. -- Moody's withdraws ratings of Accudyne following sale of Precision Flow Systems business

    New York, June 20, 2019 -- Moody's Investors Service ("Moody's") withdrew all of its ratings for Accudyne Industries Borrower S.C.A. ("Accudyne"), including the company's B3 Corporate Family Rating ("CFR"), B3-PD Probability of Default Rating and B3 first-lien senior secured revolver and term loan ratings. On May 16, 2019, Ingersoll-Rand plc (IR) announced that it had completed its acquisition of Precision Flow Systems ("PFS"), including Accudyne, from funds advised by BC Partners Advisors LP and The Carlyle Group for $1.45 billion.

  • Benzinga29 days ago

    Axalta Rallies As Automotive Paint Company Puts Itself On The Block

    Axalta said its board has initiated a comprehensive review of strategic alternatives — including a potential sale — to maximize shareholder value. The board has formed a strategic review committee chaired by Mark Garrett, the independent presiding director of the board. Axalta, the erstwhile coating business of DuPont de Nemours Inc (NYSE: DD), has had a checkered history since its inception, with failed takeover discussions and frequent leadership changes.