Buyout (LBO, MBO, MBI) • Education

The Blackstone Group, Bain Capital Private Equity and Thomas H. Lee Partners Acquire HMH

On December 31, 2002, private equity firms The Blackstone Group, Bain Capital Private Equity and Thomas H. Lee Partners acquired education company HMH for 1.7B USD

Acquisition Context
  • This is The Blackstone Group’s 1st, Bain Capital Private Equity’s 1st and Thomas H. Lee Partners’ 1st transaction in the Education sector.
  • This is The Blackstone Group’s 76th, Bain Capital Private Equity’s 38th and Thomas H. Lee Partners’ 17th largest (disclosed) transaction.
  • This is The Blackstone Group’s 46th, Bain Capital Private Equity’s 21st and Thomas H. Lee Partners’ 8th transaction in the United States.
  • This is The Blackstone Group’s 2nd, Bain Capital Private Equity’s 4th and Thomas H. Lee Partners’ 1st transaction in Massachusetts.
Investment Fate
  • HMH was sold to a publicly-traded strategic buyer in 2006 for 3.4B USD.
  • HMH was sold to a financial buyer in 2008.
  • HMH was recapitalized in 2010.
  • HMH was sold to a financial buyer in 2022 for 2.8B USD.

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M&A Deal Summary

Date December 31, 2002
Target HMH
Sector Education
Buyer(s) The Blackstone Group
Bain Capital Private Equity
Thomas H. Lee Partners
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 1.7B USD

Target Company

HMH

Boston, Massachusetts, United States
HMH is a learning technology company committed to delivering connected solutions that engage learners, empower educators and improve student outcomes. As a provider of K–12 core curriculum, supplemental and intervention solutions, and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students' potential and extend teachers' capabilities. HMH serves more than 50 million students and four million educators in 150 countries. HMH was founded in 1832 and is based in Boston, Massachusetts.
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Buyers Overview 3

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 394.0B 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, New York.


Deal Context for Buyer #
Overall 60 of 365
Sector: Education 1 of 5
Type: Buyout (LBO, MBO, MBI) 24 of 82
State: Massachusetts 2 of 11
Country: United States 46 of 231
Year: 2002 6 of 6
Size (of disclosed) 76 of 185
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-11-01 Nycomed Pharma AG

Zurich, Switzerland

Nycomed Pharma AG is a manufacturer, marketer, and promoting a range of Rx and OTC pharmaceutical products in Europe. Nycomed offers hospital products and general practitioner medicines, as well as provides late-stage clinical development, and registration and marketing. Nycomed Pharma AG was established in 1986 and is based in Zurich, Switzerland.

Buy $1.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-02-01 ZF TRW Automotive Holdings

Livonia, Michigan, United States

ZF TRW Automotive is a supplier of automotive systems, modules and components. The company focuses on safety-related products and its business lines are braking and steering, occupant safety systems, and engine valves, fasteners, and body control systems. ZF TRW Automotive is based in Livonia, Michigan.

Buy $4.7B
Buyer

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.


Deal Context for Buyer #
Overall 24 of 253
Sector: Education 1 of 4
Type: Buyout (LBO, MBO, MBI) 9 of 51
State: Massachusetts 4 of 13
Country: United States 21 of 131
Year: 2002 6 of 6
Size (of disclosed) 38 of 75
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-12-02 Unisource

Norcross, Georgia, United States

Unisource is a marketer and distributor of commercial printing and business imaging papers, packing systems, and facilities supplies and equipment in North America.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-11 ProSiebenSat.1 Media

Unterfohring, Germany

ProSiebenSat.1 Media is a media company that operates 27 TV channels in 10 countries. The entertainment segment operates free TV stations, such as SAT.1, prosieben, kabel eins, sixx, SAT.1 gold, prosieben MAXX, and kabel eins doku, as well as distributes prosiebenSat.1 HD stations. ProSiebenSat.1 Media was founded in 1984 and is based in Unterfohring, Germany.

Buy -
Buyer

Thomas H. Lee Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1974
PE ASSETS 35.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Thomas H. Lee Partners (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. THL was formed in 1974 and is based in Boston, Massachusetts.


Deal Context for Buyer #
Overall 11 of 92
Sector: Education 1 of 2
Type: Buyout (LBO, MBO, MBI) 5 of 18
State: Massachusetts 1 of 7
Country: United States 8 of 79
Year: 2002 2 of 2
Size (of disclosed) 17 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-05-17 LaSalle Re

Hamilton, Bermuda

LaSalle Re was a Bermuda-based insurance and reinsurance company.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-01 a360media

New York, New York, United States

a360media owns and operates the leading celebrity and health & fitness media brands in the country. The Company's magazines have a combined total circulation of 5.3+ million and reach 32.6+ million men and women each month. Our digital properties reach 50+ million unique visitors and 652+ million page views monthly, and our social media channels reach 56+ million visitors. a360media was formed in 1936 and is based in New York City.

Buy -