Welsh, Carson, Anderson & Stowe agreed to acquire U.S. Investigations Services, a Pennsylvania security services company, in a $981 million recapitalization. The Carlyle Group, which already has a 30% stake in U.S. Investigations, will put that equity, valued at $122 million, back into the company and management will provide another $28 million. At the close of the deal, Welsh Carson will hold a 60% stake in U.S. Investigations.
In another large deal for Welsh Carson, the firm agreed to pay $839.4 million, including the assumption of debt, in a public-to-private deal for Ameripath. The firm offered $21.25 a share to acquire the cancer diagnostics and genomics provider, which is roughly 30% higher than the company’s closing price in the trading session prior to the deal’s announcement. The acquisition has already been approved by Ameripath’s board of directors and is expected to close before the end of April next year.
The Carlyle Group teamed up with Providence Equity Partners and GMT Communications last week, agreeing to buy France Telecom’s Casema cable business in a $700.6 million deal. Carlyle and Providence Equity previously joined forces at the end of 2000, when they led a second round of financing for Zurich-based Digiplex S.A., valued at $200 million.
Advent International and Bayer AG agreed to walk away from their proposed deal in which Advent had agreed to acquire Bayer’s Rhein Chemie Rheinau unit. Advent had originally offered to pay $215 million for the rubber and plastics division. The deal was first announced in October of this year.
The Carlyle Group announced plans to acquire U.K.-based Firth Rixson, a specialist-engineering group, in a privatization that values the company at roughly $167 million. The acquisition is an add-on deal for Carlyle’s Forged Metals portfolio company, and the combined company will be known as Forgings International upon the completion of the deal. Carlyle will use its Carlyle Partners III, LP, and Carlyle Europe Partners, LP, funds to provide the equity for the acquisition.
Reliable Snow Plowing Inc., a Bloomington, Minn.-based snow and ice removal operation, has been sold to Private Capital Management. Goldsmith Agio Helms advised Reliable Snow Plowing on the deal.