Newsletter Edition 50
Dec 12, 2024
4 min read
Blackstone and EQT Advance in €5 Billion Bidding War for Urbaser
Private equity heavyweights Blackstone and EQT have advanced to the second round of bidding for Urbaser, a global waste management company that could be valued at up to €5 billion, according to a Reuters report. The sale, overseen by Citi and Santander, was initiated earlier this year by current owner Platinum Equity.
The shortlisted bidders are now conducting due diligence and are expected to submit binding offers by late February. Initial contenders KKR and Macquarie have exited the process, leaving Blackstone and EQT as the leading candidates. None of the involved parties, including Platinum Equity, have commented on the ongoing negotiations.
Urbaser operates in approximately 15 countries, including the US, India, Spain, and France. Recently, it divested its UK operations to FCC Servicios Medio Ambiente, a Spanish waste management firm. The company reported a turnover of €2.5 billion in 2023, as highlighted in its sustainability report.
If completed, the acquisition would mark one of Europe’s largest private equity deals in recent months, reflecting strong investor interest in the waste management sector. The industry’s growing emphasis on sustainability and circular economy practices has made it increasingly attractive to private equity firms seeking long-term value and stable returns.
GTCR and Apax Partners Sell AssuredPartners to Arthur J. Gallagher in $13.5 Billion Deal
GTCR and Apax Partners have agreed to sell insurance broker AssuredPartners to Arthur J. Gallagher & Co in a $13.5 billion all-cash transaction. The deal, one of the largest in the insurance brokerage industry, underscores the sector's ongoing consolidation and the rising demand for middle-market insurance solutions.
AssuredPartners, founded in 2011 through a partnership between GTCR and industry veteran Jim Henderson, quickly grew via strategic acquisitions and organic expansion. Initially owned by GTCR, the company was sold to Apax Partners in 2015, under whose ownership it continued to expand its offerings in property and casualty, commercial, employee benefits, and personal insurance lines. In 2019, GTCR reacquired AssuredPartners, with Apax retaining a minority stake, enabling the company to achieve $2.9 billion in adjusted revenue for the 12 months ending September 30, 2024.
The acquisition strengthens Gallagher’s presence in the middle-market insurance space, targeting businesses with annual revenues between $10 million and $1 billion. It also enhances Gallagher’s capabilities in key sectors such as transportation, energy, healthcare, and government contracting, while expanding its reach in the UK and Ireland.
The transaction positions Gallagher alongside industry leaders Aon and Marsh McLennan, who have also made significant acquisitions to capture growth in middle-market insurance. Gallagher plans to finance the purchase with a mix of cash, debt, and equity, supported by an $8.5 billion stock offering and a $13.45 billion short-term loan.
Expected to close in Q1 2025, the deal is anticipated to deliver a double-digit boost to Gallagher’s adjusted profits, solidifying its status as a dominant player in the global insurance brokerage market.
Ares and Arctos Make Historic Private Equity Investments in the NFL
Private equity giants Ares Management and Arctos Sports Partners have made significant investments in the National Football League (NFL) for the first time. Ares acquired a 10% stake in the Miami Dolphins at a valuation of $8.1 billion, including stakes in Hard Rock Stadium and the Formula One Miami Grand Prix. Arctos, leading a group of investors, bought a minority stake in the Buffalo Bills, owned by Terry Pegula.
These deals follow an August rule change allowing private equity firms to directly invest in NFL teams. Ares and Arctos join a growing list of firms, including Sixth Street and a consortium with Blackstone and Carlyle, pre-approved to invest in NFL franchises.
The NFL’s financial strength, fueled by a $110 billion media rights deal, has made it an attractive target for institutional investors. The average team valuation has risen to $5.9 billion in 2024, bolstered by its profitable business model and global appeal.
Ares and Arctos are building extensive sports portfolios, with Ares having previously invested in Chelsea FC, Olympique Lyonnais, and McLaren Racing, and Arctos holding stakes in MLB, NBA, and international teams. The NFL limits private equity participation to 10% ownership per team, ensuring a level playing field among stakeholders.
https://www.ft.com/content/40b83924-e331-4283-9e5c-7658eeac00ad