Buyout (LBO, MBO, MBI) • Healthcare Services

KKR, Ardian, The Carlyle Group and Lexington Partners Acquire Alliance Boots

On April 26, 2007, private equity firms KKR, Ardian, The Carlyle Group and Lexington Partners acquired healthcare services company Alliance Boots

Acquisition Context
  • This is KKR’s 3rd, Ardian’s 5th, The Carlyle Group’s 6th and Lexington Partners’ 1st transaction in the Healthcare Services sector.
  • This is KKR’s 1st, Ardian’s 1st, The Carlyle Group’s 3rd and Lexington Partners’ 1st transaction in Switzerland.
Investment Fate
  • Alliance Boots was sold to a consortium of financial buyers in 2012.
  • Alliance Boots was sold to a strategic buyer in 2012.

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M&A Deal Summary

Date April 26, 2007
Target Alliance Boots
Sector Healthcare Services
Buyer(s) KKR
Ardian
The Carlyle Group
Lexington Partners
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Goldman Sachs
Greenhill & Co.
Credit Suisse Investment Banking
UBS Investment Bank (Financial)

Target Company

Alliance Boots

Zug, Switzerland
Alliance Boots GmbH is an international pharmacy-led health and beauty group. Alliance Boots' pharmacy-led health and beauty retail businesses now operate more than 3,330 health and beauty retail stores in 11 countries and its pharmaceutical wholesale businesses supply medicines, other healthcare products and related services to more than 170,000 pharmacies, doctors, health centers and hospitals in 21 countries.
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Buyers Overview 4

Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


Deal Context for Buyer #
Overall 55 of 503
Sector: Healthcare Services 3 of 17
Type: Buyout (LBO, MBO, MBI) 18 of 72
Country: Switzerland 1 of 6
Year: 2007 4 of 15
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-05 MMI Holdings

Singapore, Singapore

MMI Holdings is a manufacturer of precision machining and assembly components for customers in various industries, such as data storage, photonics, communications, semiconductor equipment, automotive and industrial automation. MMI Holdings was founded in 1989 and is based in Singapore.

Buy $1.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-02 US Foods

Rosemont, Illinois, United States

US Foods is a food distributor to restaurants, healthcare and hospitality facilities, government operations and educational institutions. The Company offers more than 350,000 national brand products and our own high-quality private label items ranging from meats to produce to frozen foods. US Foods was founded in 2007 and is based in Rosemont, Illinois.

Buy $7.1B
Buyer

Ardian

Paris, France

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 127.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ardian is a mega-sized diversified investment group focused on opportunities worldwide. Ardian invests across and manages funds focused on small and mid-sized buyouts, growth capital financings, mezzanine, infrastructure, real estate, and co-investment opportunities. Ardian's small-buyouts group targets controlling interests in French, German, and Italian businesses valued up to €100 million. It's mid-sized buyout group seeks businesses valued up €1.5 billion and does not have any geographic limitations. The Infrastructure team looks for European opportunities and can commit up to €1 billion per transaction. The Mezzanine group supports junior capital commitments of €5 to €80 million. In addition to direct investing, Ardian also manages various private equity fund-of-funds. Ardian was founded in 1996 and is based in Paris.


Deal Context for Buyer #
Overall 85 of 465
Sector: Healthcare Services 5 of 14
Type: Buyout (LBO, MBO, MBI) 41 of 124
Country: Switzerland 1 of 9
Year: 2007 11 of 27
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-25 CEVA

Libourne, France

CEVA is a veterinary health company focused on the research, development, production and marketing of pharmaceutical products and vaccines for pets, livestock, swine, and poultry. CEVA was founded in 1999 and is based in Libourne, France.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-22 Camaieu

Roubaix, France

Camaieu is a women's fashion retail chain. It offers affordable ready-to-wear, easy-to-buy apparel for women between 25 and 50 years of age operating a network of 745 stores, of which 495 are in France. Camaieu is a trend follower and a pricing leader. The company's sophisticated systems and processes (procurement, logistics, restocking, and product mix) enable it to optimise sales through a continuous flow of competitively priced products at high volumes. Camaieu was founded in 1988 and is based in Roubaix, France.

Sell €1.5B
Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


Deal Context for Buyer #
Overall 276 of 750
Sector: Healthcare Services 6 of 28
Type: Buyout (LBO, MBO, MBI) 109 of 221
Country: Switzerland 3 of 8
Year: 2007 16 of 52
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-26 Genoyer SA

Vitrolles, France

Genoyer SA is a manufacturer of steel flanges and fittings for the process industries, particularly for the oil, gas and chemical industries. Genoyer SA was founded in 1963 and is based in Vitrolles, France.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-01 Kinder Morgan Energy Partners

Houston, Texas, United States

Kinder Morgan Energy Partners LP is an energy transportation, storage and distribution companies in North America. The Company owns an interest in or operates approximately 41,000 miles of pipelines that primarily transport natural gas, crude oil, petroleum products and CO2, and more than 155 terminals which store, transfer and handle products like gasoline and coal. Kinder Morgan Energy Partners LP was formed in 2002 and is based in Houston, Texas.

Buy -
Buyer

Lexington Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Lexington Partners is a private investment firm with approximately $55 billion in committed capital for private equity investing. Lexington Partners focuses its activity on secondary investments, equity co-investments, and fund investments. Lexington's primary business is its secondary private equity group, which seeks to provide liquidity for private equity fund interests. Lexington's co-investment group looks to invest $10 to $100 million alongside private equity sponsors in a variety of sectors. Lexington Partners was formed in 1994 and is based in New York City.


Deal Context for Buyer #
Overall 3 of 9
Sector: Healthcare Services 1 of 1
Type: Buyout (LBO, MBO, MBI) 2 of 3
Country: Switzerland 1 of 1
Year: 2007 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Ames Taping Tools

Duluth, Georgia, United States

Ames Taping Tools is a designer, manufacturer, rents, and sells specialized construction equipment used for taping and finishing drywall. Ames Taping Tools was founded in 1939 and is based in Duluth, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-26 Bausch & Lomb

Rochester, New York, United States

Bausch & Lomb is a manufacturer of ophthalmic products.

Buy $4.5B