Deals

Affiliated Computer Services Inc. (NYSE: ACS) has received an increased buyout bid from Cerberus Capital Management and ACS founder and chairman Darwin Deason. The revised price is $62 per share, compared to an original offer of $59.25 per share. The overall deal would be valued in excess of $6 billion.

Airline Partners Australia, the private equity consortium bidding on Qantas Airways, has modified its conditions in order to sidestep skeptical shareholders. The group reduced its acceptance requirement from 90 percent to 70 percent, and extended the closing date by 14 days to May 4. The current offer is Au$5.45 per share, which would value Qantas at around Au$10.82 billion. Bidders include TPG, Macquarie Bank and Allco Finance Group.

Alinda Capital Partners has agreed to acquire Canadian income trust UE Waterhead Income Fund (TSX: UWH.UN) for C$23 per unit. The total deal is valued at approximately C$1.74 billion.

Ampac Packaging LLC, a Cincinnati-based packaging company backed by Falcon Investment Advisors and Prudential Capital Group, has acquired the Trigon Security Products business of Sealed Air Corp. (NYSE: SEE). No financial terms were disclosed. Trigon makes security bag products for financial institutions, armored carriers and retailers for the depositing and shipping of cash, checks and other valuables.

Apax Partners reportedly is considering an offer for Spanish air carrier Iberia, which already has received a €3.41 billion approach from TPG.

Apax Partners has decided against bidding for a 25 percent stake in sports apparel company Adidas. A German newspaper had reported that Apax was considering a €50 per share offer.

Apollo Investment Corp. (Nasdaq: AINV), a business development company affiliate of Apollo Management, has agreed to acquire Innkeepers USA Trust (NYSE: KPA), a hotel REIT, for $17.75 per share. Lehman Brothers and UBS are advising Innkeepers on the deal, which is valued at around $1.5 billion.

Avista Capital Partners has completed its $210 million acquisition of BioReliance Corp. from Invitrogen Corp. (Nasdaq: IVGN). Financing was arranged by UBS Securities and The Royal Bank of Scotland. BioReliance is a Rockville, Md.-based contract service organization providing biological safety testing, toxicology, viral manufacturing and lab animal diagnostic services to the global pharma industry.

Bain Capital is facing some shareholder opposition to its proposed $3.5 billion buyout of South African retailer Edgars Consolidated Stores Ltd. (Edcon). PIC, which holds a 10.1 percent stake, says that it is voting against the deal, as are Templeton Asset Management (3 percent), Aberdeen Asset Mangement (2 percent) and Columbia Wagner Asset Management (2 percent). If completed, the deal would be the largest-ever leveraged buyout of a South African company.

Bain Capital and Thomas H. Lee Partners raised their offer for Clear Channel Communications from $37.60 per share to $39 per share. The firms had been holding firm for months, but became concerned that they could fall short in the shareholder vote, which has now been rescheduled for May 8.

BCE (NYSE: BCE), the parent company of Bell Canada, has confirmed that it is in talks to take the company private. Such a deal could be worth $45 billion, which would make it the largest leveraged buyout in history. The group BCE is currently speaking with includes KKR and three Canadian pension plans — Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec and Canada’s Public Sector Pension Investment Board.

Bear Stearns Capital Partners has acquired a minority ownership position in Francesca’s Collections, a Houston, Texas-based retailer of women’s apparel, jewelry, accessories and gifts. No financial terms were disclosed.

Bioniche Pharma Group Ltd., an Ireland–based maker of injectable generic drugs, has agreed to acquire Aloprim for Injection from Nabi Biopharmaceuticals for $3.7 million. AfI is a branded injectable drug for patients with leukemia, lymphoma, and solid-tumor malignancies who are receiving cancer therapy that cause elevations of serum and urinary uric acid levels. Bioniche Pharma is a portfolio company of RoundTable Healthcare Partners.

The Blackstone Group reportedly is in talks with Spain’s Supermercados El Arbol, about a joint bid for Catalan supermarket operator Caprabo.

Blue Point Capital Partners has led a recapitalization of Packers Sanitation Services Inc., a Mt Pleasant, Iowa–based outsourced contract cleaner serving the food preparation industry. Blue Point and PSSI management provided equity, while debt financing came from Madison Capital, Orix Finance and Contrarian Capital Finance. No specific financial terms were disclosed.

Bright Media Group, a San Francisco-based alternative media company backed by Trimaran Capital Partners, has acquired AdverTickets, a Dallas, Texas–based provider of advertisements on valet parking tickets. No financial terms were disclosed.

Buckingham Capital Partners has completed its $8.65 per share buyout of CPAC Inc., a Leicester, N.Y.-based maker of cleaning products and imaging chemicals. The total deal is valued at around $49.5 million, with CPAC having delisted from the Nasdaq.

The Carlyle Group has withdrawn its $5.5 billion buyout offer for listed Taiwanese computer chip tester Advanced Semiconductor Engineering. The move came after Carlyle declined to significantly raise its initial NT$39 per share offer (went up to NT$39.50), despite ASE objections that the offer didn’t “reflect the company’s true value.”

Cerberus Capital has abandoned its efforts to acquire bankrupt car parts manufacturer Delphi for $3.4 billion, following reported difficult negotiations with the United Auto Workers Union. Other members of the Delphi consortium—including Appaloosa Management—are expected to remain.

Cerberus has agreed to acquire Option One Mortgage Corp. from H&R Block Inc. (NYSE: HRB). The cash purchase price will be the value of the tangible net assets of the business at the date of closing, less $300 million. As of January 31, the tangible net assets were $1.27 billion. Option One is an Irvine, Calif.-based national wholesale originator and servicer of non-prime residential mortgage loans.

Clear Channel Communications (NYSE: CCU) has agreed to sell its 56-station television group to Providence Equity Partners for approximately $1.2 billion. The deal is expected to close in Q4, pending regulatory approval. The sale is not contingent on shareholder approval of a proposed $19.5 billion buyout offer of Clear Channel by Bain Capital and Thomas H. Lee Partners.

Court Square Capital Partners and Weston Presidio have completed their acquisition of Denver-based specialty chemical manufacturer MacDermid Inc. (NYSE: MRD) for $35 per share. The transaction was valued at over $1.3 billion, including assumption or repayment of approximately $301 million of debt. Company chairman and CEO Daniel Leever participated alongside the equity sponsors.

Countrywide PLC shareholders have approved a £1.05 billion buyout offer from Apollo Management. The UK-based property and financial services company’s shareholders previously rejected an offer from 3i Group.

Creo Capital Partners has agreed to acquire Chris’ & Pitt’s Food Products Inc., a Houston, Texas–based marketer and distributor of barbeque sauces and frozen entrees through retail, warehouse and food service channels. No financial terms were disclosed. John Labbett, CEO of two of Creo’s current food portfolio companies—First Street Food Group and National Harvest Group—will assume the rule of CEO of C&P.

Crownbrook Capital has acquired American Conveyor Corp., a Ridgewood, N.Y.-based provider of conveyor equipment to the food and beverage industry. No financial terms were disclosed.

Custom Foods Products Inc., a Carson, Calif.-based meat processing company owned by William E Simon & Sons and Triton Partners, has filed for Chapter 11 bankruptcy protection. The move was made in order to help facilitate a sale to stalking horse bidder Contrarian Financial Services, which has offered to pay between $30 million and $35 million.

CVC has abandoned its attempt to acquire UK supermarket chain J Sainsbury PLC, following the prior pullout of consortium partners KKR, Blackstone and TPG.

CVC reportedly may bid for listed Spanish cigarette maker Altadis SA, which earlier this week rejected a €16.2 billion bid from UK-based Imperial Tobacco Group PLC. Other participants in the consortium could include PAI Partners and Cinven.

Empire Education Group Inc., a beauty schools operator that counts Key Principal Partners as a minority shareholder, has agreed to merge with 51 accredited cosmetology schools from Regis Corp. (NYSE: RGS). Empire will hold a 51 percent stake in the newly-formed company, while Regis will retain 49 percent. No financial terms were disclosed for the deal, which is expected to close on July 1.

Enhanced Equity Fund has completed a recapitalization of PrePak Systems Inc., a Cookeville, Tenn.–based contract packaging organization for the pharmaceutical market. The deal includes $11.5 million in senior secured notes from Technology Investment Capital Corp.

Erinaceous Group PLC (LSE: ERG), a UK-based property services group, confirmed that it has received preliminary buyout approaches. Various news reports suggest that 3i Group is among the suitors, with a management buyout approach that would value Erinaceous at around £375 million.

Excalibur Electronics Inc., a Miami, Fla.-based maker of electronic products sold to big-box retailers, has raised an undisclosed amount of private equity funding from Palm Beach Capital. No additional details were disclosed.

EV Energy Partners LP (Nasdaq: EVEP) has agreed to acquire oil and natural gas properties in Central and East Texas from Anadarko Petroleum Corp. (NYSE: APC). The purchase price will be $100 million. EnerVest is EVEP’s largest shareholder.

First Data Corp. (NYSE: FDC) has agreed to acquire FundsXpress, an Austin, Texas-based provider of online banking and bill payment services for consumers and small businesses. No financial terms were disclosed. FundsXpress was advised by Lane Berry & Co., and has raised $80 million in total VC funding from firms like Warburg Pincus, Beacon Partners, Cendant Corp. and Texas Growth Fund. KKR recently agreed to acquire First Data for $29 billion.

Forbes Media has acquired Investopedia.com, a website for investor education. No financial terms were disclosed. Forbes Media was formed last summer by Forbes and Elevation Partners.

Formation Capital and JER Partners have increased their buyout offer for Genesis HealthCare Corp. (Nasdaq: GHCI), from $63 per share to $64.25 per share. The total deal is valued at $1.7 billion, including the assumption of around $475 million in debt. A shareholder vote is scheduled for today. GHC is a Kennett Square, Pa.-based long-term care provider with over 200 skilled nursing centers and assisted living residences in 13 eastern states.

Fortress Investment Group has agreed to acquire Interpool Inc. (NYSE: IPX), a Princeton, N.J.-based suppliers of equipment and services to the transportation industry. The total deal is valued at approximately $2.4 billion (including assumed debt), with Interpool shareholders to receive $27.10 per share in cash. Interpool previously had received a $24 per share offer led by company Chairman and CEO Martin Tuchman. Tuchman and other significant Interpool stockholders have agreed to vote their 40 percent ownership stake in favor of the Fortress agreement.

The Frank Gates Cos. of Columbus, Ohio and Attenta of Birmingham, Ala. last month merged into a single risk management company called Risk Management Solutions Inc. The deal was financed via a $52.5 million equity investment from KRG Capital Partners, which will hold a controlling interest.

Gambro Healthcare, owner of dialysis clinics in 15 countries, could be on the block for around $800 million, according to published reports. Gambro’s owner is Sweden’s Wallenberg family, which has retained Goldman Sachs to explore a possible sale.

GateHouse Media Inc. (NYSE: GHS) has agreed to acquire four daily newspapers from Gannett (NYSE: GCI) for $410 million in cash. The papers are: Norwich Bulletin in Connecticut, Rockford Register Star in Illinois, Observer-Dispatch in Utica, N.Y., and The Herald, Dispatch in Huntington, West Virginia. GateHouse was acquired by Fortress Investment Partners in 2005 from Leonard Green, and then went public last year. Fortress still holds a majority ownership position.

General Atlantic and Francisco Partners have some competition for Aeroflex Inc. (Nasdaq: ARXX), a Plainview, N.Y.-based provider of high tech solutions to the aerospace, defense, cellular and broadband communications markets. The two firms recently agreed to acquire Aeroflex for $13.50 per share, but the company announced yesterday that it has received a $14 per share conditional proposal led by Veritas Capital. The standing bid would value Aeroflex at approximately $1 billion.

General Atlantic has acquired a minority position in Global Electronic Trading Co. (Getco), a Chicago–based electronic liquidity provider and trading firm. No financial terms were disclosed for the deal, which is expected to close next month. General Atlantic CEO Bill Ford and managing director Rene Kern will join the Getco board of directors.

Gresham Private Equity has raised its offer for ICM Computer Group by 22 percent to 490 pence per share, in an attempt to beat off a rival bid from Phoenix IT Group. The cash offer values ICM at £120 million.

Gridiron Capital has acquired Ramsey Industries Inc., a Tulsa-based manufacturer of products for the towing and construction industries. No financial terms were disclosed.

GS Capital Partners, Kelso & Co., ValueAct Capital and Parthenon Capital have completed their $27.85 per share buyout of Adesa Inc. (NYSE: KAR), a Carmel, Ind.–based provider of automotive salvage auction and claims processing services. The deal was valued at approximately $3.2 billion, including $700 million in assumed debt. In a related move, Adesa has acquired Insurance Auto Auctions Inc., an auto salvager and claims processing company owned by Kelso and Parthenon. The total transaction—including both IAAI and the assumed debt—is valued at approximately $3.7 billion.

Hellman & Friedman has agreed to acquire Catalina Marketing Corp. (NYSE: POS) for $1.7 billion (including $136 million of assumed debt). The $32.50 per share offer is 40 cents higher than an earlier buyout offer for Catalina from ValueAct Capital. Goldman Sachs is advising Catalina on the sale, while H&F has received financing commitments from Bear Stearns and Morgan Stanley.

International Automotive Components Group North America, a portfolio platform of W.L. Ross & Co., has agreed to acquire the North American automotive flooring and acoustics components business of Collins & Aikman. The purchase price is $134 million.

JetDirect Aviation LLC has agreed to acquire fellow private jet company Sentient Jet Inc. No financial terms were disclosed. JetDirect shareholders include CD Ventures, Argosy Capital, ABS Capital Partners, Brantley Partners, HSBC and AIG.

LaNetro Zed, a Madrid, Spain-based provider of mobile content and services, has received an undisclosed amount of private equity funding from Veronis Suhler Stevenson.

Lone Star Fasteners, a Spring, Texas-based company backed by Trinity Hunt Partners, has completed its acquisition of PRD Holdings Ltd., a UK-based maker of fasteners to the energy and heavy industrial markets. The combined company has an enterprise value of around $150 million.

ManorCare Inc. (NYSE: HCR), a Toledo, Ohio-based nursing home operator, has retained JPMorgan to explore strategic alternatives, including a possible sale of the company. The company’s current market cap is just shy of $4.5 billion.

National Home Health Corp. (Nasdaq: NHHC) has agreed to accept a $12 per share buyout offer from Premier Home Health Services Inc., thus triggering the termination of a prior $11.35 per share agreement with Angelo Gordon & Co. The NHHC board said that the move would “reasonably” prompt Angelo Gordon to submit a revised bid.

NovaStar Financial Inc. (NYSE: NFI), a Kansas City-based residential mortgage lender, has retained Deutsche Bank to help it explore strategic alternatives, including a possible sale of the company. The company’s market cap is around $188 million. In related news, Wachovia Capital Markets has arranged an additional $100 million financing facility for NewStar.

Orica Ltd., the world’s largest commercial explosives maker, has rejected an Au$9.95 billion buyout offer from Bain Capital and The Blackstone Group. In a statement, Orica chairman Don Mercer said that the Au$32 per share bid “significantly undervalues Orica and its growth prospects.”

PHNS, a Dallas-based provider of IT solutions for hospitals, has acquired Network Technology Group Inc., a Baton Rouge, La.–based provider of data center services, physical and network security protection, disaster recovery services and electronic data-vaulting services for commercial customers. No financial terms were disclosed. PHNS is a portfolio company of Gryphon Investors.

Sallie Mae (NYSE: SLM), the nation’s largest provider of college loans, has agreed to be acquired for $25 billion. The buyers are J.C. Flowers & Co., Friedman Fleischer & Lowe, J.P. Morgan Chase and Bank of America. The private equity firms will own a combined 50.2 percent stake, while the banks will each invest $2.2 billion for a combined 49.8 percent stake.

Senior Care Centers of America Inc., a Trevose, Pa.-based provider of daytime healthcare services for adults, has acquired Brookhaven, Pa.-based Generations Adult Day Center. No financial terms were disclosed. Clearview Capital acquired a majority stake in SCCA late last year.

Siemens may reconsider plans to float up to half of its automotive engineering unit, after receiving buyout interest from both strategic and financial bidders. German cart parts maker Continental reiterated its interest, while LBO suitors reportedly include KKR, Bain Capital and Permira.

Stonegate Production Co., a Houston, Texas-based startup oil & gas company, has raised $200 million from Pine Brook Road Partners and Soros Strategic Partners.

Telecorps Communications, a portfolio company of H.I.G. Capital, has acquired Coffey Sound, a Hollywood, Calif.-based renter, seller and repairer of audio equipment for the television and film industry. No financial terms were disclosed.

Terra Firma has expressed interest in the 26 UK hospitals recently put on the block by Bupa, according to published reports. Other suitors reportedly include Blackstone Group, Cinven, TPG and Macquarie Bank. Citigroup is managing the process, which is expected to generate between £1 billion and £1.25 billion.

Terra Firma and Wellcome Trust have been joined by HBOS in their efforts to acquire British drugstore chain Alliance Boots PLC. The trio offered a revised 1,115 pence per share for Boots, just after the company’s board agreed to accept a 1,090-per share offer from KKR and Boots chairman and largest shareholder Stefano Pessina. The Terra Firma-led offer values Boots at approximately £10.9 billion.

Terracycle Inc., a Trenton, N.J.-based maker of organic fertilizers using worm waste, has raised an undisclosed amount of private equity funding from JH Partners.

Thomson Learning, a unit of Thomson Corp. (NYSE: TOC), has six bidders, according to published reports. The deal could be worth upward of $3.5 billion, with interested suitors including: Carlyle Group, KKR, Bertelsmann, Warburg Pincus, Apax Partners and a consortium of Blackstone/Bain/TH Lee. (Thomson Corp. is the parent company of Buyouts publisher Thomson Financial).

Tinicum Capital Partners has acquired Western Pneumatic Tube Co., a Kirkland, Wash.-based custom welded-tube mill. No financial terms were disclosed. The seller was Superior Group Inc., which was advised on the sale by Brown Gibbons Lang & Company.

United Surgical Partners International Inc. (Nasdaq:USPI) shareholders have approved a $31.05 per share buyout offer from Welsh, Carson, Anderson & Stowe. The total transaction is valued at approximately $1.8 billion.

Valeo, a listed French car parts maker, has received buyout approaches from both Cerberus and PAI Partners, according to published reports. The PAI offer would value the company at approximately €3.4 billion.

Vector Capital has completed its acquisition of information security company SafeNet Inc. (Nasdaq: SFNT) for $28.75 per share. The total deal was valued at approximately $634 million. Merrill Lynch acted as financial advisor to SafeNet on the transaction.

Warner Music Group overvalued UK rival EMI when it bid 320 pence per share last year, according Scott Sperling, co-president of WMG shareholder Thomas H. Lee Partners. Speaking at a Reuters-sponsored conference in New York , Sperling said that WMG still was interested in merging with EMI, but at a significantly lower price.