M&A Deal Summary

The Blackstone Group, The Cypress Group and CIVC Partners Acquire Financial Guaranty Insurance

On December 18, 2003, private equity firms The Blackstone Group, The Cypress Group and CIVC Partners acquired financial services company Financial Guaranty Insurance from General Electric for 2.2B USD

Acquisition Highlights
  • This is The Blackstone Group’s 2nd, The Cypress Group’s 1st and CIVC Partners’ 4th transaction in the Financial Services sector.
  • This is The Blackstone Group’s 50th, The Cypress Group’s and CIVC Partners’ largest (disclosed) transaction.
  • This is The Blackstone Group’s 50th, The Cypress Group’s 5th and CIVC Partners’ 29th transaction in the United States.
  • This is The Blackstone Group’s 5th, The Cypress Group’s 1st and CIVC Partners’ 2nd transaction in New York.
Investment Fate
  • Financial Guaranty Insurance went bankrupt in 2010.

M&A Deal Summary

Date 2003-12-18
Target Financial Guaranty Insurance
Sector Financial Services
Buyer(s) The Blackstone Group
The Cypress Group
CIVC Partners
Sellers(s) General Electric
Deal Type Divestiture
Deal Value 2.2B USD

Target

Financial Guaranty Insurance

New York, New York, United States
website
FGIC is a bond insurer. Bond insurers guarantee the timely payment of principal and interest, effectively transferring the insurer's credit rating to the issuer, resulting in a lower cost of borrowing for the issuer.

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Buyer(S) 3

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 66 of 318
Sector (Financial Services) 2 of 16
Type (Divestiture) 5 of 32
State (New York) 5 of 21
Country (United States) 50 of 200
Year (2003) 6 of 6
Size (of disclosed) 50 of 166
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-03 Aspen Insurance Holdings

Hamilton, Bermuda

Aspen Insurance Holdings is a provider of reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Australia, Bermuda, Canada, Ireland, Singapore, Switzerland, the United Arab Emirates, the United Kingdom and the United States. Aspen Insurance Holdings was founded in 2002 and is based in Hamilton, Bermuda.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 Imperial Home Decor Group

Cleveland, Ohio, United States

Imperial Home Décor manufactured residential wall coverings.

Sell -
Buyer

The Cypress Group

New York, New York, United States

website


Category Private Equity Firm
Founded 1989
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

The Cypress Group is a private equity firm that acquires businesses in a range of industries. Broad sectors of interest include consumer services, financial services, and manufacturing. The Cypress Group was formed in 1989 and is headquartered in New York, New York.


DEAL STATS #
Overall 8 of 12
Sector (Financial Services) 1 of 1
Type (Divestiture) 1 of 2
State (New York) 1 of 2
Country (United States) 5 of 9
Year (2003) 1 of 1
Size (of disclosed) 1 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-07-04 Catlin Group

Hamilton, Bermuda

Catlin Group Ltd. is a specialty insurance and reinsurance provider . Areas of expertise include Marine, Professional Indemnity, Aviation, Energy, and Industrial. Catlin's property catastrophe reinsurance and marine businesses are viewed as 'Best in Class' at Lloyd's.

Buy $532M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 American Marketing Industries

Independence, Montana, United States

American Marketing Industries Inc. manufactures and markets apparels.

Sell -
Buyer

CIVC Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1970
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

CIVC Partners is a private equity firm that provides buyout and growth capital to middle-market businesses located in the US and Canada. CIVC invests in companies generating sales of $40 - $300 million with an EBITDA of $5 to $25 million. Sectors of interest include Business Services, Information Services, Facility Services, Insurance Services, Transportation & Logistics, Tech-enabled Services, BPO, SaaS, Compliance Services, Corporate Training, IT Services, and Utility Services. The firm invests in the range of $20 - $100 million per transaction. CIVC prefers to be the lead equity sponsor and will consider both majority and minority investment situations. CIVC Partners was formed in 1970 and is based in Chicago, Illinois.


DEAL STATS #
Overall 30 of 76
Sector (Financial Services) 4 of 10
Type (Divestiture) 1 of 2
State (New York) 2 of 4
Country (United States) 29 of 72
Year (2003) 3 of 3
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-04-04 RAM Reinsurance

Hamilton, Bermuda

RAM Reinsurance Company Ltd. (RAM Re) was formed in February 1998 to take advantage of an increased emphasis of diversity of reinsurance sources by the "AAA/Aaa" rated financial guaranty primary insurers. The company has strong relationships with each of the four largest primaries and is developing relationships with the newer entrants in this market.

Buy $92M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-02-12 Partners Equity Capital

Horsham, Pennsylvania, United States

Partners Equity Capital Company, LLC (PECC), one of the fastest growing commercial equipment leasing finance companies in the United States.

Buy -

Seller(S) 1

SELLER

General Electric

Boston, Massachusetts, United States

website


Category Company
Founded 1892
Sector Diversified
Employees205,000
Revenue 76.6B USD (2022)
DESCRIPTION

General Electric is a diversified technology and financial services corporation. Products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. General Electric was founded in 1892 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 5 of 44
Sector (Financial Services) 2 of 9
Type (Divestiture) 5 of 38
State (New York) 2 of 3
Country (United States) 5 of 34
Year (2003) 2 of 2
Size (of disclosed) 6 of 22
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-10-10 Amersham

Chalfont St Giles, United Kingdom

Amersham plc, headquartered in England, is a global provider of medical diagnostics and life science products. The company was formed in 1997 through the mergers of Amersham International (UK), Pharmacia Biotech (Sweden) and Nycomed (Norway).

Buy $9.5B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-05-30 Genworth Financial

Richmond, Virginia, United States

Genworth Financial, Inc. is a provider of individual and group long-term care insurance products to meet growing consumer needs for long-term care. The Company's life insurance products protect people during unexpected events. In the United States, retirement products include various types of annuity and guaranteed retirement income products. Genworth also facilitates homeownership in the United States and internationally by providing mortgage insurance products that allow people to purchase homes with low down payments while protecting lenders against the risk of default. Through homeownership education and assistance programs, Genworth also helps people keep their homes when they experience financial difficulties.

Sell -