US Market News
1月前
Carlyle Completes Acquisition of Majority Stake in MAI Capital ManagementJune 8, 2026 7:30 AM
Business Wire Investment expands upon relationship formed in 2021, providing MAI with the resources and strategic backing to accelerate growth MAI Capital Management (“MAI”), a registered investment advisor (“RIA”) focused on empowering clients to simplify, protect and grow their wealth, today announced the completion of the previously announced transaction in which funds managed by global investment firm Carlyle (NASDAQ: CG) have acquired a majority stake in the company. The deal closed effective June 4, 2026. Carlyle entered MAI's ownership structure in 2021 through its investment in Galway Holdings, which acquired MAI that year. As majority owner, Carlyle will support MAI's continued growth, including investments in technology and strategic acquisitions, while maintaining the firm’s leadership team, culture and operational independence. MAI employees will continue to hold a large minority equity ownership position in the company. "Closing this transaction marks the start of something we have been building toward for a long time,” said Rick Buoncore, Chairman and CEO of MAI. "Having worked with the Carlyle team for five years, we have seen firsthand what they bring to the table. Their support will allow us to continue investing in the business and pursuing growth opportunities, all while staying true to the culture and client-first approach that has defined MAI since inception. Our goal has always been to build what we believe to be the best wealth management firm in the industry, and now with Carlyle’s backing, we have the expertise and resources to pursue that goal with even greater momentum." With the close of the transaction, Galway Holdings and funds managed by Harvest Partners, LP and Oak Hill Capital have exited their positions. Jim Burr, Co-Head of Global Financial Services at Carlyle, and Jitij Dwivedi, Partner at Carlyle, said, “Our partnership with MAI over the past several years has reinforced our conviction in the firm’s differentiated platform, leadership team and long-term growth opportunities. We look forward to continuing our work with Rick and the broader management team as the firm evolves and expands its capabilities.” Ardea Partners LP served as exclusive financial advisor to MAI. Kirkland & Ellis, LLP served as legal counsel to Harvest Partners and MAI. Houlihan Lokey served as financial advisor to Carlyle and Simpson Thacher & Bartlett LLP served as Carlyle’s legal counsel. About MAI Capital Management MAI is a registered investment adviser and wealth management firm unified in purpose to empower clients to simplify, protect, and grow the wealth they have worked so hard to build. Founded in 1973, the firm helps clients achieve their vision and goals through objective advice, tailored planning, comprehensive and integrated solutions, and highly personal service. As of April 30, 2026, MAI and its affiliated investment adviser have more than 40 offices across the United States, a team of more than 700 people, and approximately $77.3 billion in combined client assets managed or advised*. For more information, visit www.mai.capital or MAI’s company page on LinkedIn. *Combined client assets consist of MAI’s regulatory assets under management (“RAUM”), including assets managed by an affiliated adviser and assets at that affiliated adviser that are in the process of transitioning to MAI. MAI reports its RAUM in Form ADV Part 1A, which may not yet reflect all transitioning assets. In addition, approximately $6 billion represents assets under advisement, which are not included in RAUM. This combination is presented for informational purposes only and should not be considered a substitute for MAI’s reported RAUM. About Carlyle Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With $475 billion of assets under management as of March 31, 2026, Carlyle’s purpose is to connect people, ideas, and capital to fuel growth for companies and performance for investors. Carlyle employs more than 2,500 people in 28 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group. View source version on businesswire.com: https://www.businesswire.com/news/home/20260608981780/en/ Media Contacts
Jimmy Moock
610-304-4570
jimmy @AMMONIA-9299
adam @Med.rare
Brittany.bensaull@carlyle.com Original: Carlyle Completes Acquisition of Majority Stake in MAI Capital Management
US Market News
3月前
Carlyle to Acquire Majority Stake in MAI Capital ManagementMarch 31, 2026 7:30 AM
Business Wire
The new investment strengthens MAI’s capital base, supports advisors, and provides continuity for clients and teams
MAI Capital Management (“MAI”), a registered investment advisor (“RIA”) focused on empowering clients to simplify, protect, and grow their wealth, today announced that it has signed an agreement for funds managed by global investment firm Carlyle (NASDAQ: CG) to acquire a majority stake in the company, valuing it at more than $2.8 billion. Carlyle initially invested in MAI in 2021 through its investment in Galway Holdings, which acquired MAI that year, and will become the majority owner upon closing, with Galway Holdings, funds managed by Harvest Partners, LP (“Harvest Partners”), and Oak Hill Capital exiting their positions. MAI employees will continue to hold a large minority equity ownership.
As majority owner, Carlyle will provide MAI with the resources to continue investing significantly in its people, capabilities, and client experience. Carlyle will support MAI in expanding its services, while maintaining the firm’s leadership, culture, operational independence, and the continuity advisors and clients have come to expect.
“Since our founding, MAI’s goal has been to build what we believe to be the best wealth management firm in the industry,” said Rick Buoncore, Chairman and CEO of MAI. “As we looked for a long-term partner to help us achieve that vision, Carlyle stood out for its alignment with our culture and values along with their deep industry knowledge and expertise. Deepening our partnership with Carlyle will unlock the next chapter for MAI, enabling us to expand our resources while maintaining the firm’s commitment to being a preeminent destination for clients and the fiduciary-minded advisors who serve them.”
MAI offers a comprehensive, integrated platform of services, including financial planning, investment management, retirement planning, tax services, family office capabilities and institutional consulting. The firm serves high-net-worth, ultra-high-net-worth, and family office clients, leveraging decades of experience that includes longstanding relationships with professional athletes and entertainers.
“We’ve been partners with MAI since 2021 and have seen firsthand the strength of its platform, leadership team, and highly customized client-centric approach,” said Jim Burr, Co-Head of Global Financial Services at Carlyle, and Jitij Dwivedi, Partner at Carlyle. “We believe in the multi-decade-long industry tailwinds supporting scaled advisor-led platforms with integrated business models and holistic wealth management capabilities. MAI is well positioned to capitalize on these trends, and we look forward to working closely with Rick and MAI’s entire management team in its next phase of growth while preserving the company's unique culture.”
As MAI enters this next phase, the firm will continue to operate autonomously, with its leadership team and strategic priorities unchanged. Clients can continue working with the same trusted advisors and service teams, and current agreements can remain in place, ensuring a seamless and consistent experience. While no longer in the ownership structure, Galway Holdings and its insurance subsidiaries will remain as partners providing insurance services to clients.
“Harvest Partners is proud to have supported MAI’s expansion, including the completion of more than 30 strategic acquisitions,” said Stephen Carlson, President, Private Equity, at Harvest Partners. “We are confident that MAI is well positioned for the next stage of growth with Carlyle’s backing.”
The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and regulatory approvals, including the consent of the Division of Banking in South Dakota.
Ardea Partners LP served as exclusive financial advisor to MAI. Kirkland & Ellis, LLP served as legal counsel to Harvest Partners and MAI. Houlihan Lokey served as financial advisor to Carlyle and Simpson Thacher & Bartlett LLP served as Carlyle’s legal counsel.
About MAI Capital Management
MAI is a registered investment adviser and wealth management firm unified in purpose to empower clients to simplify, protect, and grow the wealth they have worked so hard to build. Founded in 1973, the firm helps clients achieve their vision and goals through objective advice, tailored planning, comprehensive and integrated solutions, and highly personal service.
As of January 1, 2026, MAI and its affiliated adviser have 40 offices across the United States, and a team of more than 700 people who manage and advise on $72.6 billion in total assets.*
For more information, visit www.mai.capital or MAI’s company page on LinkedIn.
*Total assets include MAI and its affiliate Evoke Advisors. Of this total, MAI had $50.9 billion in AUM and $5.6 billion in assets under advisement; Evoke had AUM of $16.1 billion. Assets under Advisement include retirement plans and other accounts that MAI advises on but does not actively manage. Evoke Advisors is a division of and a wholly owned subsidiary of MAI.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With $477 billion of assets under management as of December 31, 2025, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies, and the communities in which we live and invest. Carlyle employs more than 2,500 people in 27 offices across four continents. Further information is available at carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.
About Harvest Partners
Founded in 1981, Harvest Partners is an established private equity firm with over 40 years of experience investing in middle-market companies and partnering with high-quality management teams to build growing businesses. For more information, please visit www.harvestpartners.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260331391825/en/
Media Contacts
Jimmy Moock
610-304-4570
jimmy@streetcredpr.com
Adam Redling
440-773-9299
adam@streetcredpr.com
Brittany Bensaull
+1 (212) 813-4839
Brittany.bensaull@carlyle.com
Harvest Partners, LP
Jennifer Hurson
jennifer.hurson@llyc.global
845.729.3100
Original: Carlyle to Acquire Majority Stake in MAI Capital Management
US Market News
4月前
JLL secures $370M refinancing for Society Brooklyn in GowanusMarch 17, 2026 4:23 PM
PR Newswire (US)
Brookfield funds bridge loan for 517-unit waterfront propertyNEW YORK, March 17, 2026 /PRNewswire/ -- JLL's?Capital Markets group announced today that it has arranged a $370 million refinancing for Society Brooklyn, a premier 517-unit, two-tower residential development positioned along the Gowanus Canal in Brooklyn's Gowanus neighborhood.JLL worked on behalf of the borrowers, Property Markets Group and The Carlyle Group, to secure the three-year bridge loan from Brookfield Asset Management.Society Brooklyn features two complementary towers spanning 455,666 square feet of rentable space across 517 units, including 385 market-rate and 132 affordable apartments. The development also includes 57,288 square feet of retail and commercial space to serve residents and the broader community. The property addresses growing demand for family-sized housing with nearly 40 percent of units designed as two- and three-bedroom apartments.Located at 500 Degraw St. and 504 Sackett St., Society Brooklyn capitalizes on its waterfront positioning along the Gowanus Canal at the intersection of the Gowanus, Carroll Gardens and Park Slope neighborhoods. Residents can enjoy Manhattan skyline and Brooklyn views and direct access to the Gowanus waterfront esplanade.The luxury development offers extensive amenities, including fitness centers, yoga studios, screening rooms, coworking spaces, rooftop terraces with Manhattan skyline views, multiple pool decks with barbecue areas, pet washing stations, bicycle storage and on-site parking. Individual units feature premium finishes such as custom white and black oak cabinetry, Caesarstone countertops, stainless steel appliances, in-unit laundry and private outdoor space in select residences.The financing comes as the Gowanus area continues its dramatic transformation following comprehensive rezoning initiatives. The neighborhood has attracted more than $7.8 billion in private investment alongside substantial public infrastructure funding. Multiple subway connections provide residents with Manhattan access in under 15 minutes.JLL Capital Market's Debt Advisory team representing the borrower was led by Senior Managing Directors Christopher Peck and Peter Rotchford and Senior Director Nicco Lupo."Society Brooklyn demonstrates the caliber of development that's defining the new Gowanus," said Peck. "The project's prime waterfront location, thoughtful design and strong sponsorship team position it as a standout asset in Brooklyn's evolving residential landscape."JLL Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. JLL Capital Markets has more than 3,000 specialists worldwide with offices in nearly 50 countries.For more news, videos and research resources, please visit JLL's?newsroom.About Property Markets Group
Property Markets Group, founded in 1991, is a national real estate development firm with over $8 billion in developed projects comprising more than 11,000 residential units.About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With $474 billion of assets under management as of September 30, 2025, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies, and the communities in which we live and invest. Carlyle employs more than 2,400 people in 27 offices across four continents. Further information is available at carlyle.com. Follow Carlyle on LinkedIn at The Carlyle Group and on X at @OneCarlyle.About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, energy, private equity, real estate, and credit. We invest client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles. For more information, please visit brookfield.com. About JLL?
JLL (NYSE:JLL) is a leading global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 113,000 as of December 31, 2025. For over 200 years, clients have trusted JLL, a Fortune 500® company, to help them confidently buy, build, occupy, manage and invest across a variety of industries and property types, including office, industrial, hotel, multi-family, retail and data center properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. Powered by rich global datasets and leading technology capabilities, we provide coordinated, end-to-end delivery of real estate services for a broad range of global clients who represent a wide variety of industries. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly traded real estate securities. For further information, visit jll.com.Contact: Gréta Kieras, Senior Associate, Public Relations
Phone: +1 949 930 8498
Email: greta.kieras@jll.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/jll-secures-370m-refinancing-for-society-brooklyn-in-gowanus-302716517.htmlSOURCE JLL
Original: JLL secures $370M refinancing for Society Brooklyn in Gowanus
US Market News
5月前
Reddy Ice Announces Successful Closing of the Acquisition of Arctic GlacierFebruary 18, 2026 2:00 PM
PR Newswire (US)
DALLAS, Feb. 18, 2026 /PRNewswire/ -- Reddy Ice, LLC ("Reddy Ice") today announced the successful closing of the acquisition of Arctic Glacier, LLC, a North American provider of premium ice products and services, from Carlyle (NASDAQ: CG). Terms of the transaction were not disclosed.
Reddy Ice is a portfolio company of SCI Capital Partners LP ("SCI") and a leading manufacturer and distributor of packaged ice in the United States and Mexico."We are pleased to welcome Arctic Glacier into the Reddy Ice and SCI family and excited about the value we can unlock as a combined organization—for our customers, our team members, and the broader industry," said Lonny Warner, Chief Executive Officer of Reddy Ice and a member of the Company's Board of Directors. "Both companies bring exceptional people and a strong, winning culture, and I look forward to working closely with our teams to realize the full potential of this combination. This is a truly transformational opportunity that advances our mission to make life better by delivering high-quality, innovative products and services in the communities we serve, while partnering with our customers to exceed expectations and providing our team members with a safe, rewarding place to build their careers."In connection with the DOJ Antitrust Division's review of the transaction, Reddy Ice will be divesting four of its facilities and associated customer contracts in Mukilteo & Lakewood, WA, Coeur d' Alene, ID, and Brawley, CA, as well as customer contracts in Oregon and in the New York and Boston metropolitan areas."I am extremely proud of Lonny and his team for their continued execution and leadership. This transaction represents Reddy Ice's 22nd acquisition since SCI acquired the company in 2019 and further strengthens the platform as we enter the next phase of growth," said Adam Cohn, Managing Partner at SCI.Shawn Malleck, Chairman of the Board of Reddy Ice and Partner at SCI, said: "This strategic transaction is highly complementary for both organizations and enhances our operational scale to capitalize on attractive growth opportunities while continuing to deliver innovative solutions for our customers. We are excited about the opportunities ahead and look forward to a seamless integration over the coming year.""I am immensely proud of what our associates have achieved over the past few years, and this acquisition is a testament to the extraordinary foundation we have built together and opens a new chapter of opportunity for our people and customers to thrive," said Peter Laport, CEO of Arctic Glacier.Matthew Coles, Managing Director at Carlyle, said: "We are proud of all that Arctic Glacier has accomplished and grateful to the management team and employees for their dedication. We wish the combined company continued success as it enters this exciting next chapter, bringing together two robust and geographically complementary platforms to better serve customers across North America."For Reddy Ice, Latham & Watkins LLP served as legal advisors and BMO Capital Markets Corp. served as financial advisor.For Arctic Glacier, Debevoise & Plimpton LLP and Rule Garza Howley LLP served as legal advisors and Deutsche Bank served as financial advisor.About Reddy Ice
Reddy Ice is the largest manufacturer and distributor of packaged ice products in North America. The Company serves a diverse customer base through a network of over 115 manufacturing, distribution centers and cold storage facilities throughout the US and Mexico. Reddy Ice provides a broad array of product offerings in the marketplace including packaged ice, Craft premium ice and Hydration services and solutions. Distribution is through traditional direct store delivery, warehouse programs, and its proprietary technology, The Ice Factory®. Known for exceptional products, customer service, and industry leading distribution solutions, Reddy Ice serves a wide variety of consumer-packaged goods channels including grocery, mass merchandiser and club stores, convenience stores, drug and dollar stores, as well as non-retail companies such as airlines, construction services, industrial manufacturing, emergency services, and catering and event services. For additional information about Reddy Ice, please visit https://www.reddyice.com/.About Arctic Glacier
Arctic Glacier is a North American provider of premium ice products and services. For over 140 years, the company has been manufacturing and distributing packaged ice. Annually, the company produces and delivers over 2.5 billion pounds of premium ice to supermarkets, mass merchants, c-stores, dollar stores, gas stations, liquor stores, as well as many other commercial and industrial businesses. Arctic Glacier operates 77 manufacturing facilities and distribution centers throughout the US and Canada and services over 70,000 customers. For more information about Arctic Glacier visit https://arcticglacier.com/.About SCI Capital Partners
SCI is a private equity firm headquartered in Los Angeles, CA, focused on control buyouts of market-leading companies that provide mission-critical products and services across the industrial sector. SCI's senior leadership team has invested together for more than 20 years across multiple platforms, with a track record of building and operating businesses across various industries, both domestically and internationally, through organic growth, transformational M&A, and disciplined roll-up acquisition strategies. For more information visit https://www.scicp.com/.About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With $477 billion of assets under management as of December 31, 2025, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies, and the communities in which we live and invest. Carlyle employs more than 2,500 people in 27 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.
View original content to download multimedia:https://www.prnewswire.com/news-releases/reddy-ice-announces-successful-closing-of-the-acquisition-of-arctic-glacier-302691882.htmlSOURCE Reddy Ice, LLC
Original: Reddy Ice Announces Successful Closing of the Acquisition of Arctic Glacier
iHub News
5月前
Carlyle shares edge higher as record full-year earnings outweigh modest Q4 shortfallFebruary 6, 2026 10:23 AM
IH Market News
On Friday, Carlyle Group (NASDAQ:CG) reported record earnings for the full year 2025, more than offsetting a slight miss in its fourth-quarter results.Shares in the private equity group rose 1.91% in after-hours trading following the release.The Washington, DC-based firm posted fourth-quarter distributable earnings of $1.01 per share, marginally below the analyst consensus of $1.02. For the full year, however, distributable earnings reached a record $4.02 per share, up from $3.66 in 2024.Assets under management totaled $477 billion at December 31, 2025, an 8% increase year over year. Fee-earning assets grew faster, rising 11% YoY to $337 billion, with perpetual capital accounting for 33% of the total.“2025 was a record year for Carlyle, and we significantly outperformed the targets we set at the beginning of the year,” said CEO Harvey M. Schwartz. “We delivered record Fee Related Earnings and strong fundraising across the platform, reflecting disciplined execution of our strategy and continued confidence from our investors.”Fee-related earnings came in at $290 million in the fourth quarter, up slightly from $287 million a year earlier. For the full year, fee-related earnings climbed to $1.2 billion, compared with $1.1 billion in 2024.Deployment activity remained strong, with Carlyle investing $16.9 billion in the fourth quarter and $54.5 billion over the full year, representing a 28% increase compared with 2024. The firm also declared a quarterly dividend of $0.35 per common share, payable on February 20, 2026.Carlyle Group stock price
Original: Carlyle shares edge higher as record full-year earnings outweigh modest Q4 shortfall
US Market News
5月前
/C O R R E C T I O N -- Stone Canyon Industries Holdings/January 30, 2026 2:42 PM
PR Newswire (US)
/C O R R E C T I O N – Stone Canyon Industries Holdings/ In the news release, Reddy Ice Announces Agreement to Acquire Arctic Glacier, issued by Stone Canyon Industries Holdings over PR Newswire, we are advised by the company that the correct source is Reddy Ice, LLC. The complete, corrected release follows, with additional details at the end:
Reddy Ice Announces Agreement to Acquire Arctic Glacier
DALLAS, Jan. 30, 2026 /PRNewswire/ -- Reddy Ice, LLC ("Reddy Ice") today announced an agreement to acquire Arctic Glacier, LLC, a North American provider of premium ice products and services, from Carlyle (NASDAQ: CG). Terms of the transaction were not disclosed.Reddy Ice is a portfolio company of SCI Capital Partners LP ("SCI") and a leading manufacturer and distributor of packaged ice in the United States."We are proud to welcome Arctic Glacier to the Reddy Ice family," said Lonny Warner, Chief Executive Officer of Reddy Ice, and a member of the Reddy Ice Board of Directors. "We believe the combination of these two outstanding, complimentary companies will allow us to create increased operational efficiency across a diverse footprint in the US, Mexico and now Canada. Our vision is to transform the world's health, welfare, and quality of life by providing superior and exceptional products and services to our customers. We believe this will allow us to deliver on this commitment to our customers and the communities in which we operate and live." "This acquisition highlights the value and strength of our business, which has always been passionately focused on exceeding our customers' expectations," said Peter Laport, Chief Executive Officer at Arctic Glacier. "We take pride in our advanced innovative ice solutions, and our strong commitment to top-tier advancements in technology, strong trusted partnerships with our customers, our operational prowess, and excellence in food safety. We have built a thriving, people-first culture that has earned the trust of our exceptional associates and customers. This transaction is a result of the outstanding work we've done and we look forward to continuing to deliver for our customers and employees in partnership with Reddy."Shawn Malleck, Chairman of the Board and Partner at SCI, said: "This transaction was a clear and compelling opportunity for strategic growth and value for our shareholders. Both companies share a commitment to the highest quality products and services, and the combined financial strength and operational proficiency will allow us to exceed customer expectations over the long term."Matthew Coles, Managing Director at Carlyle, said: "We are proud of all that Arctic Glacier has accomplished and grateful to the management team and employees for their dedication. We wish the combined company continued success as it enters this exciting next chapter, bringing together two robust and geographically complementary platforms to better serve customers across North America."The acquisition is subject to customary closing conditions including regulatory approvals. In connection with the DOJ Antitrust Division's review of the transaction, Reddy Ice will be divesting four of its facilities and associated customer contracts in Mukilteo & Lakewood, WA, Coeur d'Alene, ID and Brawley, CA, as well as customer contracts in Oregon and in the New York and Boston metropolitan areas.For Reddy Ice, Latham & Watkins LLP served as legal advisors and BMO Capital Markets Corp. served as financial advisor.For Arctic Glacier, Debevoise & Plimpton LLP and Rule Garza Howley LLP served as legal advisors and Deutsche Bank served as financial advisor.About Reddy IceReddy Ice is the largest manufacturer and distributor of packaged ice products in North America. The Company serves a diverse customer base through a network of over 115 manufacturing, distribution centers and cold storage facilities throughout the US and Mexico. Reddy Ice provides a broad array of product offerings in the marketplace including packaged ice, Craft premium ice and Hydration services and solutions. Distribution is through traditional direct store delivery, warehouse programs, and its proprietary technology, The Ice Factory®. Known for exceptional products, customer service, and industry leading distribution solutions, Reddy Ice serves a wide variety of consumer-packaged goods channels including grocery, mass merchandiser and club stores, convenience stores, drug and dollar stores, as well as non-retail companies such as airlines, construction services, industrial manufacturing, emergency services, and catering and event services.About Arctic GlacierArctic Glacier is a North American provider of premium ice products and services. For over 140 years the company has been manufacturing and distributing packaged ice. Annually, the company produces and delivers over 2.5 billion pounds of premium ice to supermarkets, mass merchants, c-stores, dollar stores, gas stations, liquors stores, as well as many other commercial and industrial businesses. Arctic Glacier operates 77 manufacturing facilities and distribution centers throughout the US and Canada and services over 70,000 customers.Correction:?An earlier version of this release incorrectly sourced the release to Stone Canyon Industries Holdings.
View original content:https://www.prnewswire.com/news-releases/reddy-ice-announces-agreement-to-acquire-arctic-glacier-302675339.htmlSOURCE Reddy Ice, LLC
Original: /C O R R E C T I O N -- Stone Canyon Industries Holdings/
US Market News
5月前
Reddy Ice Announces Agreement to Acquire Arctic GlacierJanuary 30, 2026 2:15 PM
PR Newswire (US)
DALLAS, Jan. 30, 2026 /PRNewswire/ -- Reddy Ice, LLC ("Reddy Ice") today announced an agreement to acquire Arctic Glacier, LLC, a North American provider of premium ice products and services, from Carlyle (NASDAQ: CG). Terms of the transaction were not disclosed.Reddy Ice is a portfolio company of SCI Capital Partners LP ("SCI") and a leading manufacturer and distributor of packaged ice in the United States."We are proud to welcome Arctic Glacier to the Reddy Ice family," said Lonny Warner, Chief Executive Officer of Reddy Ice, and a member of the Reddy Ice Board of Directors. "We believe the combination of these two outstanding, complimentary companies will allow us to create increased operational efficiency across a diverse footprint in the US, Mexico and now Canada. Our vision is to transform the world's health, welfare, and quality of life by providing superior and exceptional products and services to our customers. We believe this will allow us to deliver on this commitment to our customers and the communities in which we operate and live." "This acquisition highlights the value and strength of our business, which has always been passionately focused on exceeding our customers' expectations," said Peter Laport, Chief Executive Officer at Arctic Glacier. "We take pride in our advanced innovative ice solutions, and our strong commitment to top-tier advancements in technology, strong trusted partnerships with our customers, our operational prowess, and excellence in food safety. We have built a thriving, people-first culture that has earned the trust of our exceptional associates and customers. This transaction is a result of the outstanding work we've done and we look forward to continuing to deliver for our customers and employees in partnership with Reddy."Shawn Malleck, Chairman of the Board and Partner at SCI, said: "This transaction was a clear and compelling opportunity for strategic growth and value for our shareholders. Both companies share a commitment to the highest quality products and services, and the combined financial strength and operational proficiency will allow us to exceed customer expectations over the long term."Matthew Coles, Managing Director at Carlyle, said: "We are proud of all that Arctic Glacier has accomplished and grateful to the management team and employees for their dedication. We wish the combined company continued success as it enters this exciting next chapter, bringing together two robust and geographically complementary platforms to better serve customers across North America."The acquisition is subject to customary closing conditions including regulatory approvals. In connection with the DOJ Antitrust Division's review of the transaction, Reddy Ice will be divesting four of its facilities and associated customer contracts in Mukilteo & Lakewood, WA, Coeur d'Alene, ID and Brawley, CA, as well as customer contracts in Oregon and in the New York and Boston metropolitan areas.For Reddy Ice, Latham & Watkins LLP served as legal advisors and BMO Capital Markets Corp. served as financial advisor.For Arctic Glacier, Debevoise & Plimpton LLP and Rule Garza Howley LLP served as legal advisors and Deutsche Bank served as financial advisor.About Reddy IceReddy Ice is the largest manufacturer and distributor of packaged ice products in North America. The Company serves a diverse customer base through a network of over 115 manufacturing, distribution centers and cold storage facilities throughout the US and Mexico. Reddy Ice provides a broad array of product offerings in the marketplace including packaged ice, Craft premium ice and Hydration services and solutions. Distribution is through traditional direct store delivery, warehouse programs, and its proprietary technology, The Ice Factory®. Known for exceptional products, customer service, and industry leading distribution solutions, Reddy Ice serves a wide variety of consumer-packaged goods channels including grocery, mass merchandiser and club stores, convenience stores, drug and dollar stores, as well as non-retail companies such as airlines, construction services, industrial manufacturing, emergency services, and catering and event services.About Arctic GlacierArctic Glacier is a North American provider of premium ice products and services. For over 140 years the company has been manufacturing and distributing packaged ice. Annually, the company produces and delivers over 2.5 billion pounds of premium ice to supermarkets, mass merchants, c-stores, dollar stores, gas stations, liquors stores, as well as many other commercial and industrial businesses. Arctic Glacier operates 77 manufacturing facilities and distribution centers throughout the US and Canada and services over 70,000 customers.
View original content:https://www.prnewswire.com/news-releases/reddy-ice-announces-agreement-to-acquire-arctic-glacier-302675339.htmlSOURCE Stone Canyon Industries Holdings
Original: Reddy Ice Announces Agreement to Acquire Arctic Glacier
US Market News
5月前
Resonetics to Acquire Resolution Medical, Expanding Capabilities in Neuromodulation and Structural Heart MarketsJanuary 27, 2026 7:00 PM
PR Newswire (US)
NASHUA, N.H., Jan. 27, 2026 /PRNewswire/ -- Resonetics announced today that it has signed an agreement to acquire Resolution Medical, a leading provider of integrated design and manufacturing solutions for complex medical devices. Resolution Medical is headquartered in Fridley, MN, with additional operations in the Netherlands, and is currently owned by Arcline Investment Management.
The transaction adds complementary capabilities in high-growth therapeutic markets, including neuromodulation, structural heart, and interventional cardiology to current Resonetics offerings. The acquisition is expected to close in 2026, pending regulatory approvals and customary closing conditions."Resolution Medical is an exceptional organization with deep technical expertise, a strong innovation culture, and a proven track record in designing and developing complex medical devices for the most innovative companies," said Kevin Kelly, CEO of Resonetics. "This acquisition will enhance our ability to deliver fully integrated solutions for customers in high-growth markets like neuromodulation and structural heart and supports our vision of becoming the most comprehensive partner in the medical device industry.""This acquisition represents the ideal outcome for our customers and for our employees. Our customers will benefit from access to deeper capabilities and a more integrated, expansive partner," said Peter Herman, CEO of Resolution Medical. "By joining Resonetics, our employees also gain access to the skills, resources, and opportunities of a larger organization. Resolution Medical will be able to operate at greater scale and deliver enhanced solutions to our customers while continuing to support their programs with the same teams, expertise, and commitment they rely on today."Resolution Medical brings more than 240 employees, including over 100 engineers, and a strong reputation for delivering high-quality design engineering, new product introduction (NPI), and cleanroom production capabilities. The company supports a wide range of Class II and III devices and has built deep customer relationships, particularly in the neuromodulation and structural heart markets.Backed by funds managed by global investment firm Carlyle and leading private equity firm GTCR, Resonetics provides end-to-end product development and manufacturing services, from prototyping through high-volume production. The addition of Resolution Medical enhances Resonetics' ability to support customers with increasingly complex devices across the full product lifecycle.Until the transaction closes, Resonetics and Resolution Medical will continue to operate independently. Nelson Mullins Riley & Scarborough acted as legal advisor to Resonetics.About Resonetics
Founded in 1987, Resonetics is a pioneer in advanced engineering and manufacturing solutions for the medical device industry. Resonetics is a leader in laser processing, nitinol manufacturing, thin-wall stainless steel, nitinol & precious metal tubing, and photochemical machining. With strategically located LightSpeed Labs® and AGILE Product Development® centers, Resonetics is committed to quality, speed, innovation, and a great customer experience. The company is ISO 13485:2016 certified with 18 facilities and more than 3,000 associates in the United States, Canada, Costa Rica, Israel, and Switzerland. Resonetics is backed by leading private equity firms Carlyle and GTCR. Learn more at www.resonetics.com.About GTCR
Founded in 1980, GTCR is a leading private equity firm that invests behind The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through organic growth and strategic acquisitions. GTCR is focused on investing in transformative growth in companies in the Business & Consumer Services, Financial Services & Technology, Healthcare and Technology, Media & Telecommunications sectors. Since its inception, GTCR has invested more than $30 billion in approximately 300 companies, and the firm currently manages approximately $50 billion in equity capital. GTCR is based in Chicago with offices in New York and West Palm Beach. For more information, please visit www.gtcr.com. Follow us on LinkedIn.About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and operates through three segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With $474 billion of assets under management as of September 30, 2025, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies, and the communities in which we live and invest. Carlyle employs more than 2,400 people in 27 offices across four continents. Further information is available at carlyle.com. Follow Carlyle on LinkedIn at The Carlyle Group and on X at @OneCarlyle.
View original content to download multimedia:https://www.prnewswire.com/news-releases/resonetics-to-acquire-resolution-medical-expanding-capabilities-in-neuromodulation-and-structural-heart-markets-302671594.htmlSOURCE Resonetics, LLC
Original: Resonetics to Acquire Resolution Medical, Expanding Capabilities in Neuromodulation and Structural Heart Markets
Investors3
5年前
Carlyle to Acquire, Expand Data Center Company Involta
December 22 2021 - 03:05PM
PR Newswire (US)
NEW YORK and CEDAR RAPIDS, Iowa, Dec. 22, 2021 /PRNewswire/ -- Global investment firm Carlyle (NASDAQ: CG) announced today that funds managed by Carlyle have agreed to acquire Involta, a data center company focused on hybrid IT and cloud infrastructure, including data center colocation, hybrid cloud, edge, fiber, and related products.
The Carlyle Group
Involta owns and operates 12 data center facilities and an in-house 12,000+ fiber-mile network. These assets, paired with strategic infrastructure services, provide mission-critical IT solutions to businesses across the United States. Carlyle's capital, resources, and expertise will help expand Involta's operations, which today are located primarily in the Midwest as well as the Pacific Northwest and Southwestern U.S., helping grow its capabilities for both new and existing customers.
Joshua Pang, Head of Digital Infrastructure for Carlyle's Infrastructure Group, said, "Involta has built a world-class platform with a demonstrated operating model for delivering high-quality service to customers in an increasingly complex, hybrid cloud-based world. We see significant opportunity for growth given the long-term secular demand drivers of data proliferation, digital connectivity, and the digitization of enterprise and institutional operating models. We look forward to a strong, long-term partnership and to leveraging Carlyle's scale, resources, and access to capital to drive sustainable growth at Involta."
Pooja Goyal, Chief Investment Officer of Carlyle's Infrastructure Group, said, "This investment is consistent with our strategy of partnering with best-in-class businesses positioned for continued growth in the digital infrastructure space. Digital infrastructure is a key sector focus for our platform and we will continue to grow our portfolio with both high growth opportunities as well as stabilized assets."
Bruce Lehrman, Founder and CEO of Involta, said, "We are thrilled to work with Carlyle's proven investment team as we build on our national market leadership and support our customers' growing digital infrastructure requirements. We see many logical opportunities to continue expanding Involta's footprint and infrastructure, and look forward to leveraging Carlyle's global resources and deep expertise to further accelerate our growth momentum."
This transaction supports Carlyle's growth in infrastructure investing, which includes investments in infrastructure companies supporting the digital economy. Earlier this year, Carlyle acquired Wyyerd Group, a leading regional fiber-to-home platform in the Southwestern United States, and recently completed an add-on fiber acquisition for that platform in December 2021.
Carlyle will acquire Involta from M/C Partners. The transaction is expected to close in the first quarter of 2022 and is subject to the satisfaction of customary closing conditions. Financial details were not disclosed.
Greenberg Traurig LLP, Bank Street Group, and TD Securities advised on this transaction.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $293 billion of assets under management as of September 30, 2021, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
About Involta
Involta is an award-winning hybrid IT and cloud-forward consulting firm orchestrating digital transformation for the nation's leading enterprises. Involta's ongoing mission is rooted in partnership. Its personalized approach identifies customers' requirements while earning their trust to ultimately deliver Superior Infrastructure and Services, Operational Excellence and People Who Deliver, keeping with the Involta brand promise.
Involta pairs strategic consulting with the unique ability to leverage owned data centers and infrastructure assets, empowering businesses with necessary security and reliability requirements. Its well-defined, rigorous process to deliver hybrid cloud, edge, consulting, and data center services have earned the company several designations, including a KLAS rating and review for partial healthcare IT outsourcing excellence. The company has also been recognized on several CRN lists and has been named one of the fastest-growing companies in America by Inc.5000 for nine consecutive years.
Involta enables customers with the power to transform their technology and the freedom to focus on their core business. To learn more about Involta, visit involta.com or follow them on LinkedIn, Twitter or Facebook.
About M/C Partners
M/C Partners is a private equity firm focused on small and mid-size businesses in the digital infrastructure and technology services sectors. For more than three decades M/C Partners has invested $2.4 billion of capital in over 140 companies, leveraging its deep industry expertise to understand long-term secular trends and identify growth opportunities. The firm is currently investing its eighth fund, partnering with promising companies and leadership teams to support, scale, and improve operations and maximize value. For more information, visit https://mcpartners.com.
Media Contacts:
Christa Zipf
Carlyle
Christa.zipf@carlyle.com
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Sheetal Werneke
JSA for Involta
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jsa_involta@jsa.net
(PRNewsfoto/Involta, LLC)
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SOURCE Involta
Copyright 2021 PR Newswire
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Timothy Smith
14年前
Global alternative asset manager The Carlyle Group [NASDAQ: CG] said Dec. 20 that it has acquired a 47.5% revenue interest in NGP Energy Capital Management, an Irving, Texas-based energy investor with $12.1 billion in assets under management. Carlyle will pay, at closing, $424 million to acquire Barclays Natural Resource Investments’ (BNRI) 40% stake and 7.5% from NGP’s management. The transaction, which will be funded with cash and Carlyle Holdings partnership units, closed Dec. 20.
The transaction also includes: a right to purchase an incremental 7.5% revenue interest, which would bring Carlyle’s total revenue interest to 55%; 7.5% of the carried interest in all future funds; and options to acquire BNRI’s 40% interest in the carried interest in NGP’s current flagship fund (NGP Natural Resources X, LP) and all future NGP funds. Carlyle has also agreed to pay the sellers additional consideration during 2015 to 2018, contingent upon NGP achieving certain business performance goals.
Carlyle co-CEO and chief investment officer William E. Conway Jr. said, “Carlyle is systematically strengthening our global natural resources investing platform and NGP is an important part of this effort. NGP’s investing excellence in the US oil and gas, midstream, and oilfield services sector, coupled with our established capabilities in commodities, power generation, mezzanine financing, and most recently, refineries, allows us to take full advantage of the energy revolution sweeping America. This partnership enables our respective investors to pursue opportunities across the energy spectrum.”
NGP CEO and co-founder Kenneth Hersh said, “Our strategic partnership with Carlyle enhances our ability to serve current and future investors. Our current NGP investors will continue to be served tirelessly by NGP’s extensive energy expertise, but they will now also benefit from Carlyle’s global reach, knowledge of debt financing and capital markets, and its extensive network, which complements our own.”
Hersh continued, “This relationship has tremendous long-term benefits. With this transaction, we have facilitated the sale of Barclays’ minority interest in our firm to a strategic partner, and carefully structured the contingent future payouts to favor NGP’s next generation of leaders, thereby providing substantial incentives for everyone to achieve high levels of performance over very long periods of time. Importantly, we did this all without disrupting in any way our current operations or governance structure.”
Daniel A. D’Aniello, Carlyle’s chairman and co-founder, said, “NGP has a proven team, a strong 24-year track record of performance across cycles and is a great cultural match. Our respective teams complement each other in so many ways, positioning both NGP and Carlyle to deliver even better outcomes for our investors.”
Established in 1988 by Ken Hersh and his partners, NGP Energy Capital Management has successfully completed 220 transactions, resulting in cumulative invested capital of $6.6 billion with total enterprise value of $36.1 billion across a range of energy and natural resource assets, including oil and gas resources, oilfield services, pipelines, and processing. Other investment mandates include: food, agriculture, water resources and services, energy efficiency, power tech, and alternative energy. The firm’s 70 professionals in five offices manage $12.1 billion across eight funds.
NGP will serve as the cornerstone of Carlyle’s growing natural resources investing platform, which includes energy mezzanine financing, energy infrastructure, and power generation (Cogentrix), and commodities (Vermillion).
Among many others, certain of NGP’s current and recent former investments in companies that are now publicly-traded include Energy Transfer Equity, Energy Transfer Partners, Eagle Rock Energy, Memorial Production Partners, and Resolute Energy Corporation.
chris8sirhc
14年前
New negative blog post out on Focus Media Holdings, could this directly effect Carlyle since they are involved in the deal?
*highlights that seem to be directed at the people involved in the deal (Carlyle Group?)
"If you do the deal and it fails spectacularly (despite ample warnings) your limited partners and the regulators will believe something worse than hubris. Probably far worse.
My guess for what they will believe: that you did this deal knowing it to be fraudulent and that you got kick-backs for doing it. They will believe you looted your own funds. That belief may or may not be true - but that is what they will suspect.
If interpretation (c) proves correct and you close this deal your career (and possibly your whole life) will get very difficult indeed.
"
FULL TRANSCRIPT BELOW
link to original:
http://brontecapital.blogspot.com/2012/09/focus-media-three-interpretations-which.html
"Monday, September 17, 2012
Focus Media: Three interpretations - which one is right
This blog has demonstrated a bunch of bizarre transactions in Focus Media's accounts. In particular I have focussed on transactions during 2009 in which vast sums appear to have been lost in businesses that were acquired from companies formed only months before acquisition. In each of these cases the business was sold or mostly given back to the original owner.
Here is the disclosure I focussed on (but there are other strange disclosures I could pick):
2009 Disposition
In 2009, we aborted a contemplated initial public offering for its Internet advertising segment due to the economic recession in late 2008. As a result, between August and December 2009, we disposed of six underperforming subsidiaries in that segment through a series of individual transactions with their respective original owners. Each of the subsidiaries was considered a component of our company, and their results have been included in discontinued operations in the consolidated statements of operations. The results of discontinued operations include net revenues and pretax losses of $127.6 million and $45.4 million, respectively, related to these subsidiaries. We recorded a loss on disposal of $44.1 million.
The following table summarizes the acquired subsidiaries in the mobile handset advertising services segment and Internet advertising segment that were sold back to their original owners in 2009:
Acquisitions
Date of
acquisition
Business segment
Proceeds paid Date of
Disposal Loss on
disposal
1.
Catchstone(1)
2007-4-16
Internet advertising
$ 14,489,647 2009-12-22 $ 11,560,617
2.
WonderAd(2)
2007-9-15
Internet advertising
$ 14,926,003 2009-11-30 $ 14,926,003
3.
Jiahua(3)
2007-8-15
Internet advertising
$ 7,659,158 2009-12-1 $ 7,659,158
4.
Wangmai(4)
2007-9-1
Internet advertising
$ 2,749,158 2009-12-14 $ 2,749,158
5.
Jichuang(5)
2007-12-1
Internet advertising
$ 366,032 2009-8-24 $ 366,032
6.
1024(6)
2008-3-1
Internet advertising
$ 3,397,124 2009-12-18 $ 3,397,124
7.
Dongguan Yaya(7)
2007-10-1
Mobile handset advertising services
$ 1,540,612 2009-2-28 $ 1,588,110
(1) The original sellers which subsequently repurchased Catchstone were Only Education Holding Limited and Maxnew Holdings Limited, BVI companies owned by a single PRC individual unrelated to our company.
(2) The original seller which subsequently repurchased WonderAd was Megajoy Pacific Limited, a BVI company ultimately owned by seven PRC individuals unrelated to our company.
(3) The original sellers which subsequently repurchased Jiahua were two PRC individuals unrelated to our company.
(4) The original seller which subsequently repurchased Jichuang was Richcom International Limited, a BVI company owned by a single PRC individual unrelated to our company.
(5) The original sellers which subsequently repurchased Keylink Global Limited were four PRC individuals unrelated to our company.
(6) The original sellers which subsequently repurchased 1024 were two PRC individuals unrelated to our company.
(7) The original sellers which subsequently repurchased Dongguan Yaya were Sinoalpha Limited and Max Planet Limited, BVI companies each of which is owned by a separate single PRC individual unrelated to our company.
The main thing demonstrated was that all the British Virgin Island (BVI) companies above:
* had the same address despite being explicitly unrelated parties,
* had the same phone number despite their non-related status,
* in all cases except one had been formed only a few months before they sold a business for millions of dollars to Focus Media
* in the exception had been formed after they sold the business to Focus Media
* had in all but one case later been struck off the register for non-payment of a fee.
Moreover the companies given back in 2009 were given back with a lot of cash (some 27 million dollars) embedded in the companies as they were given away. Focus Media on the disclosed accounts appear to have given away cash.
Three interpretations
I originally had three interpretations of this disclosure. These were
(a). The accounting statements absolutely straight, Focus Media really did buy all these businesses, lose a huge sum of money on them and gave them back to their original owners,
(b). Focus Media used these transactions facilitate the mass looting of the company. That is the money was not really lost, but rather the business were purchased and given back to their original owner as part of some scheme to steal from the company.
(c). That the losses were fake - a form of profit washing. In this interpretation Focus Media reports fake earnings (say inflated revenue or deflated cost, most likely inflated revenue) and this loads the balance sheet with fake cash. The fake cash needs to be removed (or the auditors will find it or shareholders demand it) so the fake cash gets removed from the balance sheet with fake losses on rubbery transactions.
Two interpretations left
On the information as discovered so far interpretation (a) above requires one to believe that all these seemingly unrelated parties found the same lawyer to register their BVI entities and that these businesses generated millions of dollars in net worth in a few months before they were sold to Focus Media.
Indeed you need to believe that Richcom, which was not even in existence, had a business that Focus Media was happy to buy for millions of dollars.
There are scenarios where interpretation (a) remains possible. For instance if all the Chinese entrepreneurs had the same lawyer and hence all the addresses are the same, and that lawyer was sloppy and forgot to actually register Richcom. They might have the same lawyer because they socialize at the same Karaoke bar.
However interpretation (a) requires this unlikely combination of circumstances.
This leaves two remaining interpretations (b) and (c) above. Either the company was being looted or there were fake profits and the losses described above were fake losses whose accounting function was to make the books balance when there were fake profits elsewhere.
These two interpretations have wildly different implications for the future of Focus Media
The main response to my posts is to say that all I have demonstrated was that Focus Media prior to 2009 was a very dodgy company. Bill Bishop - one of the more sophisticated China watchers - tweeted as much:
10 SepBill Bishop ?@niubi
@LongShortTrader @John_Hempton Pre crash fmcn had lots of the crap you and muddy waters have documented, post crash fmcn cleaned up
Expand
Reply
Retweet
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Indeed this was also the response to Muddy Waters who alleged fraud at Focus Media about a year ago. There were just a bunch of dodgy transactions.
But my interpretations (b) and (c) above have wildly different outcomes for the stock.
If the company was being looted - as say Bill Bishop and many others imply - then there was something there to loot.
Something there to loot suggests the company really is valuable.
Once the looting stops (and you would presume it would stop after being taken private) then the cash flow is real and can service lots of debt and make the PE buyers rich.
If however (c) is true then the losses recorded in 2009 were fake losses - then the profits recorded were fake profits. If this is the case then the company can't service lots of debt (the profits were fake and you can't service real debt with fake profits) and the PE deal will collapse.
Indeed if the profits were not real then there is nothing there to loot, nothing of any real value - and an end value for the stock is below $2 (and I think probably below $1).
The accounts since 2009
The accounts since 2009 have shown a fairly steady build up of cash and financial assets. The two interpretations have something to say about that.
In interpretation (b) the company was heavily looted in 2009. However it is a valuable company and since then that value has accumulated as cash on the balance sheet. To believe this you have to assume that the management were evil but they somehow turned good.
In interpretation (c) the company was not looted in 2009, just a huge pile of accumulated fake cash was removed from the balance sheet by having fake losses. Since 2009 the company has continued to accumulate fake cash. Eventually that fake cash will also need to be removed from the balance sheet. This situation is just like at the end of 2008 where this interpretation would imply the company had also accumulated a bunch of fake cash only to have it removed by fake losses in 2009. To believe this you have to believe the company is currently accumulating fake assets (including some fake cash).
It is of critical importance to the stock to work out which is true. If (b) is true this deal will close and you will get $27 a share. If (c) is true the deal is likely to fail - and the downside is to maybe a dollar or two a share. [There are reasonable scenarios where the downside is to zero...]
Indications that it might be C and the shares are nearly worthless
There are several things that indicate that it is more likely to be (c) than (b). Here are a few.
The company had a Renminbi shortage in 2006
I know it is a long time ago - but this is a startling disclosure:
In March 2006, Weiqiang Jiang, the father of Jason Nanchun Jiang (the CEO/controller of Focus Media), provided a short-term loan to the Group of approximately $2.5 million to relieve a temporary shortage of Renminbi the Group experienced at that time. The loan is unsecured and was provided to us at no interest. The loan will become due and payable in full on June 30, 2006.
The company disclosed a "temporary shortage of Renminbi". At the time the balance sheet showed plenty of cash and cash generation. The only way that there could have been a Renminbi shortage is if the cash was fake. And the cash was only fake if the earnings were fake. Moreover a Renminbi shortage implies almost no net cash generation - consistent with a worthless or nearly worthless share.
The disclosure of a Renminbi shortage is consistent with interpretation C.
The company appeared to pay cash to a company that did not yet exist
In August 2007 Focus Media purchased a business from Richcom International for over $2 million. The only problem is that Richcom International was not formed until October 2007. In other words it appeared to pay cash to a company that did not exist.
A company that does not exist has a very hard time opening a bank account and hence has a hard time receiving cash.
But it has no problem receiving fake cash (you don't need a bank account for that).
This is consistent with interpretation C. Fake cash paid comes from fake profits.
In 2009 the company essentially gave away almost all the subsidiaries it disposed of, but the accounts showed that those subsidiaries had 27 million in embedded cash
Above there is a list of companies disposed of in 2009. All of those were given back to their original owners. In some cases a small consideration was paid.
However the cash flow statement for the year shows that in excess of 27 million dollars was embedded in the companies that were given back to their owners in 2009.
This could be looting - but is particularly blatant - just giving away cash.
The alternative hypothesis is that the cash embedded was fake. This appears more reasonable to me than actually blatantly just giving away cash.
The company used to overstate its number of movie screens
Overstating things like numbers of movie screens is consistent with overstating revenue. Overstating revenue will give you fake cash as per (c) above.
The company used to say that it had 27,164 theatres on which it displayed averts. There were less than 1600 in all of China at the time. This sort of overstatement leads one to question whether other things are being overstated - and hence fake cash is being produced.
That is supportive of interpretation (c) above.
The company claims extremely high revenue per movie screen
The company later restated down the number of movie theatres it displayed in - but it never restated down the revenue from those theatres. Revenue per theatre ran at over $27 thousand average last year - above the average and near the high-end of US revenue per theatre.
Moreover it was running at roughly a $40 thousand per theatre run-rate in the fourth quarter of last year. That is above the peak in the US.
Advertising rates in China are substantially lower than the US. Moreover my independent inquiries suggest the revenue per screen in China is closer to $7,500 per year.
Overstated revenues means fake earnings and fake cash as per interpretation (c) above.
The company overstated and restated down the number of LCD screens it has
The company recently reclassified a whole lot of screens in the LCD business to the poster-frame business. The reason given was that they were originated by the LCD business and hence counted as LCDs. Perhaps plausible but also consistent with generally overstating things and hence overstating revenue.
Overstated revenue leads to fake cash as per explanation (c) above.
The company claims to make huge margins from a business that nobody finds profitable elsewhere in the world
How many 17 inch displays showing adverts have you seen in residential buildings in countries other than China? They do not exist in Australia. I have not seen them in New York. Sometimes in office buildings or hotels (usually advertising the facilities of the hotel). Never in residential buildings.
That is because nobody can make them profitable in residential buildings outside China.
However they claim over $3000 per screen of revenue in China. If you could get that much revenue in China (where advertising rates are low) you could get more elsewhere and the screens would grow like mushrooms in dark elevator lobbies all over the planet.
They are not.
Either China is really different or the revenue and profits are overstated in China as per interpretation (c) above.
Summary
Most of the evidence is consistent with (c) above. The strange transactions are not looting as the bulls in the stock would suggest. Interpretation (c) is that these transactions are the washing of fake profits by producing offsetting fake losses.
In that case the business earnings are not real and the business cannot support all the debt that the PE firms will laden it with. The private equity deal will fail as the debt defaults.
It is hard to tell what the stock is worth absent a PE bid. However as nobody can make an LCD business substantially profitable in (say) America what is it worth in China where advertising rates are lower?
John
PS. There is someone associated with this deal who has been arrogantly telling friends that they love this blog. They say I am keeping the pricing pressure down and making this deal easier.
If interpretation (c) is right this deal will collapse spectacularly after it closes (the debt will default, the PE buyers will get nothing). And you were warned and continued regardless.
The explanation for your recent arrogance is probably "deal fever". But as I said at the beginning of this sequence of posts private equity has the ability to due diligence and your limited partners will be expecting rigour over hubris.
If you do the deal and it fails spectacularly (despite ample warnings) your limited partners and the regulators will believe something worse than hubris. Probably far worse.
My guess for what they will believe: that you did this deal knowing it to be fraudulent and that you got kick-backs for doing it. They will believe you looted your own funds. That belief may or may not be true - but that is what they will suspect.
If interpretation (c) proves correct and you close this deal your career (and possibly your whole life) will get very difficult indeed.
Of course if I am wrong and interpretation (a) or (b) is true this will be a great deal. Go for it."
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