PE Week Wire, Feb. 5, 2007

No column today, due to a variety of deadlines and other pending commitments. Will be back tomorrow with a variety of scoops (scout’s honor, or whatever type of pledge applies to non-scouts).

Top Three

CCMP Capital Advisors and GS Capital Partners have agreed to acquire Triad Hospitals Inc. (NYSE: TRI) for $50.25 per share. The entire transaction is valued at approximately $6.4 billion, including around $1.7 billion in debt. Under terms of the deal, Triad may solicit superior proposals for the next 40 days. Were it to accept such an offer, it would owe CCMP and GS a $20 million breakup fee and another $20 million in reimbursement for out-of-pocket expenses. Lehman Brothers is advising Triad on the sale.

Jinsheng Group, a Nanjing, China-based mall operator and real estate development company, has raised $60 million in private equity funding from Bain Capital ($45m) and CBL & Associates Properties Inc. ($15m). CBL and Bain Capital have also been granted a three-year warrant in the business for an additional combined investment of $7.5 million, exercisable at the buyers’ option.

Hanger Network, a New York-based provider of in-home advertising via placement on hangers for dry-cleaned clothing, has raised $8 million in Series A funding co-led by Kodiak Venture Partners and Sigma Partners. Hangar Network was founded in 2004 as a partnership between Texas Pacific Group’s Altivity Packaging, Paradigm Packaging (a subsidiary of The Standard Group) and Cleaner’s Supply Inc.,

VC Deals

Aperto Networks Inc., a Milpitas, Calif.-based provider of WiMAX base stations and subscriber units, has raised $19 million in Series E-3 funding. GunnAllen Venture Partners led the deal, and was joined by return backers JK&B Capital, Canaan Partners, Alliance Ventures, Innovacom, JAFCO, Labrador Ventures and Tyco. Aperto has raised $139 million in total VC funding since its 1998 inception.

Exalead, a Paris, France-based provider of search software, has raised $15.6 million from existing shareholder Qualis SCA. The deal gives Qualis a majority ownership position.

Paradigm Spine LLC, a New York-based provider of non-fusion stabilization technologies to the international spine community, has raised $13.9 million in Series D funding led by HealthCor Management.

AlphaVax Inc., a Durham, N.C.-based developer of vaccine products for infectious diseases, biodefense and cancer, has raised approximately $12.65 million in Series E funding. No additional information was disclosed.

Aepona, a Belfast, Ireland-based provider of service network products to telecom operators, has raised $10 million in third-round funding. Return backers include Amadeus Capital Partners, Polaris Venture Partners and Trinity Venture Capital. The company has raised $45 million in total funding since 2003.

Digital Railroad, a New York-based operator of an online marketplace for professional photography, has raised $10 million in Series B funding. DN Capital led the deal, and was joined by return backers Morgenthaler Ventures and Venrock Associates.

Summit Microelectronics Inc., a Sunnyvale, Calif.-based provider of programmable power management ICs, has raised $10 million in Series G funding. Nokia Growth Partners led the deal with a $4 million infusion, and was joined by return backers Norwest Venture Partners, August Capital, Pequot Ventures, Bessemer Venture Partners and Hotung Capital Management.

Recordant, an Atlanta-based provider of retail customer interaction solutions, has raised $9 million in Series B funding. Pequot Ventures led the deal, and was joined by return backers Kodiak Venture Partners and Aurora Funds.

Trigence Corp., a Jersey City, N.J. and Ottawa-based provider of applications software for IT operations, has raised $8 million in second-round funding. GrowthWorks led the deal, and was joined by return backers BDC Venture Capital and VenGrowth Capital Partners.

Q-layer, a Belgium-based provider of datacenter solutions, has raised €7 million in second-round funding. Wellington Partners and Partech International co-led the deal, and were joined by Big Bang Ventures.

Meraki Networks, a Mountain View, Calif.-based developer of wireless mesh hardware and software, has raised $5.86 million in Series A funding led by Sequoia Capital.

Buyout Deals

Vornado Realty Trust is offering to pay the cash portion of its $41 billion bid for Equity Office up-front. This comes after the Equity Office board recommended that shareholders accept a lower offer from Blackstone Group — $54 per share compared to $56 per share – because it was worried that Vornado couldn’t finance its offer.

J.H. Whitney & Co. has offered to buy nutritional supplements company Herbalife Ltd. (NYSE: HLF) for $38 per share. Whitney already owns around 27% of the company, which is being valued at $2.7 billion by the offer.

TowerBrook Capital Partners has agreed to acquire shoemaker Jimmy Choo from Lion Capital for £185 million. Jimmy Choo has more than 60 stores, and more than £65 million in annual sales. Lion Capital bought the company in 2004 for £101 million.

Arlington Capital is in advanced talks to acquire a majority stake in Advanced Health Media, according to LBO Wire. AHM is a Union, N.J.–based provider of technology solutions for compliant pharmaceutical meetings, speaker programs and healthcare professional interactions.

Countrywide PLC reportedly has received a £950 million buyout offer from Apollo Management. The UK-based property and financial services company’s shareholders recently rejected an offer from 3i Group.

FdG Associates has recapitalized USA Bouquet, a Miami, Fla.-based provider of fresh floral products and services. No financial terms were disclosed.

Gryphon Investors has closed its acquisition of G.I. Joe’s Inc., a Wilsonville, Ore.–based sporting goods and outdoor retailer in the Pacific Northwest. No financial terms were disclosed.

Brockway Moran & Partners has recapitalized Tri-Star Electronics International Inc., an El Segundo, Calif.-based maker of interconnect products for the aerospace and defense markets. The deal was done in partnership with company management and shareholder Odyssey Investment Partners, which will retain an interest in the company.

Black Diamond Capital Management and Brencourt Advisors have agreed to acquire Werner Holding Co., a bankrupt Greenville, Pa.-based manufacturer and distributor of ladders, climbing equipment and ladder accessories. The deal provides Werner with an enterprise value of approximately $255.75 million.

Bear Stearns Merchant Banking has completed its acquisition of a controlling interest in Alter Moneta, a Montreal-based provider of traditional equipment financing. No financial terms were disclosed. Existing Alter Moneta shareholder Caisse de dépôt et placement du Québec will retain an ownership position.

Investar of Irving, Texas has acquired Dallas-based bakery company Celebrity Cafe & Bakery. No financial terms were disclosed.

PE-Backed IPOs

Tube City IMS Corp., a Glassport, Pa.-based provider of outsourced services to steel mills, has withdrawn its proposed $172.5 million IPO. Wellspring Capital Partners holds an 84% position. It had been planning to trade on the Nasdaq, with Credit Suisse, UBS and Jefferies & Co. serving as co-lead underwriters.

PE-Backed M&A

Specialty European Pharma Ltd., a UK-based drug commercialization company, has raised €15 million in funding from Advent Venture Partners. It used the proceeds to acquire: Proreo Pharma International AG, a Swiss maker of a liver disease drug; and a prostate cancer drug called Plenaxis from Praecis Pharmaceuticals Inc. (Nasdaq: PRCS).

CoreLogic Systems Inc., a Sacramento, Calif.-based provider of mortgage risk assessment and fraud prevention solutions, has merged with The First American Corp. (NYSE: FAF). The combined entity is majority owned by First American Corp. via its FARES LLC joint venture with Experian Group, while CoreLogic shareholders – TA Associates and company management – hold an 18% interest and have two board seats.

PE Exits

Burger King Holdings Inc. (NYSE: BKC) has filed for a secondary public offering of 20 million shares. Selling stockholders include Bain Capital (6.4 million shares offered), Goldman Sachs (6.4 million) and Texas Pacific Group (7.2 million). The three firms will still hold more than a 60% stake in the company, post-offering.

Levine Leichtman Capital Partners has retained North Point Advisors to help it sell pizza chain operator CiCi Enterprises, according to LBO Wire. The asking price is expected to be between $240 million and $270 million.

Other Deals

Anacor Pharmaceuticals Inc. of Palo Alto, Calif. has entered into an agreement with Schering-Plough Corp. for the development and commercialization of AN2690, a topical anti-fungal therapy currently in Phase 2 clinical trials for onychomycosis, a fungal infection of the nail and nail bed. Under terms of the agreement, Anacor will receive a $40 million upfront payment and a $10 million financing commitment from Schering-Plough. The company is eligible to receive payments potentially exceeding $575 million for development, regulatory and commercial milestones. In addition, Anacor will receive double-digit royalty payments on future sales. Schering-Plough will assume all costs for the drug’s development for onychomycosis and other indications, and Anacor retains an option to co-promote the drug in the United States to dermatologists. Anacor has raised around $32 million in VC funding from Aberdare Ventures, Rho Ventures, Care Capital, Red Abbey Venture Partners and Venrock Associates.

Trigeant Ltd., a Houston, Texas–based refiner of heavy and sour crude stock into asphalt for paving and roofing, has raised a $22 million senior secured term loan from American Capital Strategies. The loan will be used to refinance existing indebtedness and for capital investment in a new distribution facility.

Firms & Funds

Boston Ventures is raising up to $500 million for its seventh private equity fund, according to a regulatory filing. It already has secured around $200 million in capital commitments.

Franklin Templeton Institutional has closed a European real estate fund-of-funds with $272.9 million in capital commitments.

Kirtland Capital Partners has formed an operating resource team to work with its portfolio companies. It will be run by new operating partner Bob Fines, who previously was vice president and general manager of Avery Dennison’s $1.1 billion North American materials business. Other group members include Graeme Bennie and John Lalley.

Human Resources

Lorie Beers has joined KPMG Corporate Finance as a managing director in the firm’s Special Situations Advisory group. She previously was director of business development of Gordian Group.