M&A Deal Summary

The Blackstone Group, TPG, Oak Hill Capital, Olympus Partners and Thomas H. Lee Partners Acquire Ariel Re

On December 18, 2005, private equity firms The Blackstone Group, TPG, Oak Hill Capital, Olympus Partners and Thomas H. Lee Partners acquired insurance company Ariel Re for 1.0B USD

Acquisition Highlights
  • This is The Blackstone Group’s 5th, TPG’s 3rd, Oak Hill Capital’s 1st, Olympus Partners’ 1st and Thomas H. Lee Partners’ 4th transaction in the Insurance sector.
  • This is The Blackstone Group’s 87th, TPG’s 61st, Oak Hill Capital’s 5th, Olympus Partners’ and Thomas H. Lee Partners’ 22nd largest (disclosed) transaction.
  • This is The Blackstone Group’s 4th, TPG’s 2nd, Oak Hill Capital’s 2nd, Olympus Partners’ 1st and Thomas H. Lee Partners’ 4th transaction in Bermuda.
Investment Fate
  • Ariel Re was sold to a publicly-traded strategic buyer in 2012.
  • Ariel Re was sold to a strategic buyer in 2016 for 235M USD.
  • Ariel Re was divested to a consortium of buyers in 2020.

M&A Deal Summary

Date 2005-12-18
Target Ariel Re
Sector Insurance
Buyer(s) The Blackstone Group
TPG
Oak Hill Capital
Olympus Partners
Thomas H. Lee Partners
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 1.0B USD

Target

Ariel Re

Hamilton, Bermuda
website
Ariel Re is a reinsurance company based in Bermuda that underwrites a global portfolio of insurance and reinsurance business through offices in London, Bermuda, Atlanta and Kansas City. Ariel Re was founded in 2005 and is based in Hamilton, Bermuda.

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Buyer(S) 5

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York City.


DEAL STATS #
Overall 90 of 319
Sector (Insurance) 5 of 10
Type (Buyout (LBO, MBO, MBI)) 35 of 74
Country (Bermuda) 4 of 5
Year (2005) 11 of 11
Size (of disclosed) 87 of 167
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-15 New Skies Satellites N.V.

The Hague, Netherlands

New Skies Satellites is one of only four fixed satellite communications companies with truly global satellite coverage, offering video, data, voice and Internet communications services to a range of telecommunications carriers, broadcasters, large corporations, Internet service providers and government entities around the world.

Sell $1.2B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Montecito Broadcast Group

Montecito, California, United States

Montecito operated network affiliate television stations in four U.S. cities.

Buy $264M
Buyer

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1992
PE ASSETS 137.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


DEAL STATS #
Overall 68 of 401
Sector (Insurance) 3 of 5
Type (Buyout (LBO, MBO, MBI)) 13 of 43
Country (Bermuda) 2 of 2
Year (2005) 14 of 15
Size (of disclosed) 61 of 100
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-05 Findexa

Oslo, Norway

Findexa is one of Norway's largest publishers of telephone directories.

Sell kr5.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-28 LPL Financial

San Diego, California, United States

LPL Financial is the exclusive provider of investment advisory, marketing, administrative, distribution and information systems services to the largest independent financial advisor network in the United States. LPL Financial was founded in 1989 and is based in San Diego, California.

Buy $2.5B
Buyer

Oak Hill Capital

Stamford, Connecticut, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1986
PE ASSETS 9.5B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Oak Hill Capital Partners was originally formed as the private equity investment vehicle for Robert Bass and in 1999, opened up to outside investors and raised its first private equity fund. Oak Hill looks to invest in middle-market companies and focuses its efforts within six industry groups. The six groups include basic industries; business and financial services; consumer, retail, and distribution; healthcare; media and telecom; and technology. Oak Hill targets businesses with defensible business models, strong market positions, and 'best-in-class' management. Oak Hill Capital was formed in 1986 and has offices in Stamford, Connecticut; Menlo Park, California; and New York City.


DEAL STATS #
Overall 21 of 73
Sector (Insurance) 1 of 4
Type (Buyout (LBO, MBO, MBI)) 9 of 20
Country (Bermuda) 2 of 2
Year (2005) 3 of 3
Size (of disclosed) 5 of 21
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-14 WideOpenWest

Englewood, Colorado, United States

WideOpenWest is a provider of high-speed Internet, cable TV, and phone serving communities in the U.S. WOW's operating philosophy is to deliver an employee and customer experience that lives up to its name. WideOpenWest was founded in 2001 and is based in Englewood, Colorado.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-08 Monsoon

Portland, Oregon, United States

Monsoon is an e-commerce solutions company that powers the online businesses of mid-sized merchants through integrated solutions that allow these merchants to easily manage inventory, orders, and fulfillment; sell more products in more places; and intelligently price products across channels. Monsoon was founded in 1998 and is based in Portland, Oregon.

Buy -
Buyer

Olympus Partners

Stamford, Connecticut, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1988
PE ASSETS 8.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Olympus Partners is a private equity group focused on investing in growth companies with strong management, and positions in their respective markets. The Firm will consider both venture capital and private equity investments and looks to commit $50 to $300 million per transaction. The Firm focuses its investment activities within the business services, healthcare, financial services, consumer, restaurant, software/IT services, and logistics/transportation industries. Olympus Partners was formed in 1988 and is based in Stamford Connecticut.


DEAL STATS #
Overall 14 of 55
Sector (Insurance) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 7 of 11
Country (Bermuda) 1 of 2
Year (2005) 2 of 2
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-31 Professional Service Industries

Oakbrook Terrace, Illinois, United States

Professional Service Industries, Inc. is a provider of testing and assurance services to commercial and civil construction markets, with a broad service offering including building materials testing; geotechnical services; and property and environmental assurance.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-19 Tanenbaum-Harber

New York, New York, United States

Tanenbaum-Harber Co. Inc. is a Insurance brokerage and risk management consulting, employee benefits brokerage.

Buy -
Buyer

Thomas H. Lee Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1974
PE ASSETS 25.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Thomas H. Lee Partners, LP (THL) is a private equity firm that seeks buyout, expansion, consolidation, distressed, and recapitalization investments across various industries. Sectors of interest include business and information services, consumer products/retail, financial services, healthcare, industrial, and media/communications. THL looks to invest $100 to $400 million in companies valued up to $2.5 billion. Thomas H. Lee Partners, LP was formed in 1974 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 21 of 82
Sector (Insurance) 4 of 7
Type (Buyout (LBO, MBO, MBI)) 7 of 14
Country (Bermuda) 4 of 4
Year (2005) 4 of 5
Size (of disclosed) 22 of 26
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-04 Grupo Corporativo ONO S.A.

Madrid, Spain

Grupo Corporativo ONO S.A. is a broadband service provider. It offers direct access telephony, pay television and internet access services to the residential market where, ONO offers advanced voice, data and value-added services across its own high capacity local access and national backbone networks.

Buy €2.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-27 Sedgwick

Memphis, Tennessee, United States

Sedgwick is a global provider of technology-enabled risk, benefits and integrated business solutions. The Company provides technology-enabled claims management solutions for workers’ compensation, disability, liability, and property claims. Sedgwick was founded in 1969 and is based in Memphis, Tennessee.

Buy $635M