Buyout beat, week of Oct. 15, 2007

Firms finalize $45B deal

Kohlberg Kravis Roberts & Co.

and TPG have completed their $45 billion buyout of Texas power company TXU Corp., and renamed the company Energy Future Holdings Corp.

It is the largest ever leveraged buyout, a title that will fall if Bell Canada Enterprises, Canada’s largest communications company, goes private for $48.5 billion, as expected. That deal is currently stalled as investors in BCE and its subsidiary Bell Canada are contesting the pending takeover by a consortium led by the Ontario Teachers Pension Plan.

Bain buys Guitar Center

Bain Capital

has completed its $63-per-share buyout offer of Guitar Center Inc., a Westlake Village, Calif.-based retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. The total deal was valued at $2.1 billion, with Guitar Center having de-listed from the Nasdaq.

CompuCom bought, merged

Court Square Capital Partners has completed its $504 million acquisition of CompuCom Systems, a Dallas-based provider of outsourced IT services. Court Square also has acquired the managed services business of Vanguard Managed Solutions from Platinum Equity, and will merge it into CompuCom.

Baird buys MedData

Baird Capital Partners

has acquired MedData, a Seattle-based provider of medical billing, coding and data management solutions to hospital emergency departments. No financial terms were disclosed. As part of the deal, Richard Pugh, MedData’s founder and retiring CEO, will retain a shareholder stake and board seat.

Silver Lake obtains stake in Mobile Messenger

Silver Lake Partners

has acquired a majority stake in Mobile Messenger, a provider of technology and services for mobile content management and distribution. No financial terms were disclosed. This was Silver Lake’s first deal out of its Sumeru fund, which will focus on middle-market transactions.

Swander leads purchase of personal care products

Swander Pace Capital

has led a buyout of Gilchrist & Soames, an Indianapolis-based supplier of branded luxury personal care products and amenities for the hotel industry. No financial terms were disclosed, except that Allied Capital committed $51 million in financing.

Porter & Chester undergoes recap

Thoma Cressey Bravo

has sponsored a recapitalization of Porter & Chester Institute Inc., a technical, business and health related occupational institution with facilities in Connecticut and Massachusetts. No financial terms were disclosed for the deal, which was done in partnership with Porter & Chester management. The Bank of Montreal served as agent and lead arranger of the transaction’s debt financing package.