Rhône Group

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Rhône Group
Type Private Ownership
Industry Private equity
Founded 1995
Founder(s) Robert Agostinelli
Steven Langman
Headquarters New York, USA
Products Private equity
Total assets $8.5 Billion (Total Fund, Forbes).[1]
$4.0+ billion (PE Fund, PE Hub)[2]
Employees 100[3]
Website rhonegroup.com

Rhône Group is a private equity firm,[4] specializing in mergers and acquisitions, leveraged buyouts, recapitalizations, and partnerships with particular focus on European and trans-Atlantic investments.[5] Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services.[6] Rhone Group was listed in 2013 to 2014 by Preqin as the 'Most Consistent Performing Private Equity Fund Manager' based on both it's multiple and IRR of all 3 funds in the top quartile ranking.[7][8][9][10]

Rhône is headquartered at Rockefeller Plaza in New York City,[11][12] with additional offices in London and Paris. Rhône was founded in 1995[13] by billionaire financiers Robert Agostinelli [14] and Steven Langman.[15][16] The pair have been managing Rhône since inception. The company tends to invests in energy, materials, industrials, retailing, consumer staples, healthcare, and financial sectors. The company is a U.S. Securities and Exchange Commission Registered Investment Advisor. Investors include government and private sector pension and retirement funds, charitable foundations, university endowments, insurance companies, family savings and sovereign wealth funds. Focusing primarily on investments in European and trans-Atlantic companies.[17][18]

London Office[edit]

In 2011, Rhône Group moved from their Knightsbridge office to Mayfair's 40 Bruton Street, signing a 10-year lease for the top 3 floors covering 8,000 square feet, at £105 per sq ft. This marked the highest rent achieved in the West End.[19]


  • Rhône Capital Partners Fund I
  • Rhône Capital Partners Fund II
  • Rhône Capital Partners Fund III
  • Rhône Capital Partners Fund IV

TWE Global[edit]

In August 2014, Rhône Capital together with joint partner Kohlberg Kravis Roberts[20] began talks for a takeover bid[21] of the world's second largest wine producer, Treasury Wine Estates[22] for a total deal value of $3.4 billion.[23][24][25] TWE Global has revenue of over $2 billion and employs more than 4,000 people world wide, encompassing 80 label brands including Penfolds, Wolf Blass, Beringer, Lindemans, Wynns and Rosemount.[26][27]Rhone Group's partnership with KKR allowed for an 11% increase in offering[28] from A$4.70 per share offered initially by KKR in April 2014 to A$5.20 cash per share in August 2014.[29][30][31]

Coty, Inc.[edit]

In June 2013, Rhône along with Berkshire Partners and the Reimann Family launched Coty, Inc. (COTY) into an IPO on the New York Stock Exchange raising over $1billion[32] valuing the company at around $6.7 billion.[33] In 2012 Coty bid $10.7 billion for Avon Products Inc, (AVP.N) however due to a delayed response the offer was withdrawn.[34] Coty's top 3 competitors are Estee Lauder Cos Inc. (EL.N), L'Oreal SA (OREP.PA) and Elizabeth Arden Inc (RDEN.O). Coty's portfolio of widely known brands in fragrances, color cosmetics including nail, skin and body care products supports net revenues of $4.6 billion [35] for the fiscal year ending June 30, 2012. Coty's top 10 brands are; Adidas, Calvin Klien, Chloe, Davidoff, Marc Jacobs, OPI, Philosophy, Playboy, Rimmel and Sally Hansen. Coty's portfolio includes beauty brands ranging from ultra-premium luxury to entertainment, which include Balenciaga, Beyonce, Bottega Veneta, Chopard, Guess, Jennifer Lopez, JOOP!, Karl Lagerfeld, Kate Moss, Lady Gaga, Madonna, Roberto Cavalli, Vera Wang, Vivienne Westwood and others.[36][37]Coty repurchased all shares from Rhone Capital and Berkshire partners in June 2014.[38]

Eden Springs[edit]

In June 2013, Rhône acquired Mayanot Eden best known for its Eden Springs office watercooler brand for $93.5 million. Eden is one of Europe's largest suppliers of watercoolers and the UK's market leader, distributing more than 450 million litres of water yearly to 600,000 customers in 15 countries and a player in the coffee and coffee machine business.[39]

CSM Global[edit]

In March 2013, Rhône Capital purchased CSM Bakery Product for $1.4 billion. The business is made up of the European Bakery Supplies and North American Bakery Products businesses, as well as the international Bakery Supplies activities. Rhône Capital will also acquire the CSM brand name. In 2012 these businesses had aggregate sales of $3.3 Billion and aggregate EBITA of $140 Million. Total staff comprised 8,220 employees at the end of 2012. CSM shares rose nearly 8% following the announcement. Morgan Stanley and Price Waterhouse Coopers were joint advisers to Rhone. Rothschild and Rabobank acted for CSM.[40]

Utex Industries[edit]

In March 2013, Rhône Capital sold one of its portfolio companies, Utex Industries, to Riverstone Holdings for approximately $800 million. KKR, First Reserve, and Ares Management were some of the companies considering bids.[41] Utex CEO, Mike Balas announced "...I’d also like to thank the Rhône team for being great partners to Utex over the past few years, fully supporting our business plan and helping us select the perfect partner for the next phase of our growth and development as a company. We look forward to the next phase of Utex’s development with Riverstone as our partner.”.[2] Rhone had previously acquired UTEX Industries in 2010 from the Audax Group, where they were advised by Lazard.[42][43]

Orion Engineered Carbons[edit]

In April 2011, Rhône Capital purchased the Carbon Black unit from Evonik Industries AG for in-excess of $1.3 billion.[44] At the time, Evonik described Carbon Black as the third largest in the world, including 16 production facilities in 11 countries with over 1,650 employees including 500 in Germany.[45] Evonik was advised by Barclays Capital and Rhône was advised by Morgan Stanley.[46] In July 2014 Rhone Capital filled for an IPO valuing the company at $1.36 billion.[47][48][49]

Euromar LLC[edit]

In 2010 Rhone Capital made their first direct investment in the shipping industry. Euromar LLC, formed on March 25, 2010, is a joint venture of the Greek ship owner and operator Euroseas with Rhone Capital and Eton Park Capital Management, two recognized private investment firms. The partnership formed Euromar LLC, a Marshall Islands limited liability company. Pursuant to the terms of the Joint Venture, Rhone and Eton Park would each invest up to $75 million, equating to having a 42.86% interest each in the joint venture, whereas Euroseas would invest up to $25 million for a 14.28% interest in the Joint Venture, equating to a total investment of $175 million.[50] Euroseas operates small and medium sized container ships as well as dry bulk ships.[51]

Liverpool F.C.[edit]

In March 2010, English Premier League football club Liverpool F.C. revealed that Rhône were in exclusive negotiations to potentially buy the football club.[52] Rhône made a bid of £118.5 million for a controlling 40 percent stake in the Anfield club with an additional £25 million infusion of funds for transfers.[53] Liverpool F.C's managing director Christian Purslow and manager Rafael Benitez both gave Tom Hicks and George N. Gillett, Jr. their recommendations to go ahead with the deal however Hicks and Gillett failed to meet the April 6th 2010 deadline set by Rhône. As a result Liverpool F.C's £237 million debt to the Royal Bank of Scotland [53] is still outstanding and lack of fresh investment has meant plans for work to begin on a new £350 million stadium have stalled.[52]

In August 2010, Rhône re-emerged as a rival bidder in the takeover of Liverpool. Among other involved parties were Chinese businessman Kenny Huang, Yahya Kirdi's Syrian consortium, the Kuwaiti Al Kharafi family and Subrata Roy's Indian Sahara conglomerate. Liverpool's chairman, Martin Broughton, appointed by Barclays Capital, had hoped to identify a preferred bidder before the end of the transfer window, September 1, 2010.[54] As a result of not having achieved this investment, George N. Gillett, Jr. and Tom Hicks were obliged to pay a £20 million penalty to the Royal Bank of Scotland.[55]

Quiksilver Inc.[edit]

In 2009, Rhône loaned Quiksilver $150 million over five years to help the company refinance a U.S. line of credit and consolidate its European debt.[56] The deal included $25.6 million in warrants which allowed Rhône to buy 30% of Quiksilver's shares making Rhône own over half the company.[57][58] Rhône also assigned two new directors for Quiksilver's board.[59] The deal was described by the Orange County Business Journal as a potential "lifesaver" for Quiksilver, which was initially struggling under the weight of their $560 million acquisition of French ski maker Rossignol. As a result Quiksilver announced it no longer planned to sell its DC Shoes unit or any other brands it owned. Surfer Kelly Slater also signed a five-year extension of his endorsement deal with Quiksilver, and accepted a significant portion of his compensation in the form of the company's stock.[60] In August 2010, Quiksilver completed an exchange of 31.1 million shares worth about $140 million for the debt, held by Rhone.[61] At the time, Moody's stated that it could raise the debt rating on Quiksilver if the deal went through.[62]


In 2007, Rhône sold Almatis, a producer of specialty alumina, to Dubai International Capital (DIC), the international investment arm of Dubai Holding, for £1.2 billion.[63] DIC retained the existing management team and further supported the global growth strategy pursued by Almatis.[64]

LWB Refractories[edit]

In 2007, Rhône bought LWB Refractories, described by the magazine Industrial Minerals as "the worlds leading refractory dolomite producer",[65] from Lhoist Group S.A. for an undisclosed amount.[66] In 2008, Rhône then sold LWB Refractories for $938 million.[67] to Brazilian manufacturer Magnesita Refratarios S.A.[68] The deal created what is now one of the world largest refractory manufacturers.[69]


In 2007, Rhône won the auction for the Greek Yellow Pages directories business InfOTE. Rhône acquired the business in partnership with buyout group Zarkona Trading for $450 million giving Rhône an 85% holding of the company and Zarkona with 15%. Rhône outbid rival US media-focused buyout group Veronis Suhler Stevenson, UK-based private equity house Bridgepoint, and DLJ Merchant Banking, the buyout arm of Credit Suisse, as well as Greek media group Antenna.[70]


In 2007, Rhône together with Eurazeo[71] sold truck rental company Fraikin to CVC Capital Partners for €1.35 billion.[72] Eurazeo owned 55%, and Rhône owned 20%.[73] The remaining percentage is owned by other minority shareholders and management.[74]

Arizona Chemical[edit]

In 2006, Rhône bought Arizona Chemical for $485 million.[75] The deal officially closed in the first quarter of 2007. Arizona Chemical is the world's largest producer of oleochemicals and specialty resins based on crude tall oil, a by-product of wood pulping.[76] Arizona Chemical manufactures pine tree-based chemicals, such as fatty acids, rosin esters, and terpenes. These chemicals are used to manufacture products including adhesives, household cleaners, hydraulic fluids, inks, paints, personal care products, and plastics. Arizona Chemical was formed in 1930 by paper products maker International Paper and American Cyanamid and is now owned by Rhône. Arizona Chemical filed for an IPO in 2010.[77] Arizona Chemical has been a leader in pine chemistry for more than 75 years.[78]


In 2001, the UK's largest electronics retailer, Dixons bought Italy's most profitable chain of domestic appliance stores, UniEuro[79] from Rhône and JP Morgan for €368 million [80] to take controlling interest of nearly 96% of the company with an option to buy the remaining 4% for €30 million.[81] UniEuro employs over 3,000 people and as of 2006 had a turnover of €1 billion.[82]

Other investments[edit]


Rhône is authorised and regulated by the Financial Services Authority (FSA) and the U.S Securities Exchange Commission (SEC).[89] Rhône is a 'Selected Client' and 'Sponsor' to Sullivan & Cromwell LLP.[90]

See also[edit]


  1. ^ http://www.forbes.com/profile/robert-agostinelli/
  2. ^ a b http://www.pehub.com/189866/riverstone-acquire-utex/
  3. ^ http://venturebeatprofiles.com/company/profile/rhone-group/
  4. ^ US private-equity group bids to take controlling stake in Liverpool, London: The Guardian, 14 March 2010, retrieved 2 November 2010 
  5. ^ http://www.footballfancast.com/football-blogs/liverpool-takeover
  6. ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1920714
  7. ^ http://www.pehub.com/2014/07/report-lists-most-consistently-performing-vcs-and-buyout-firms/
  8. ^ http://www.pionline.com/article/20140729/INTERACTIVE/140729838/most-consistent-private-equity-buyout-firms-in-2014?utm_campaign=ramp_rss&utm_source=_rss&utm_medium=rss
  9. ^ http://postimg.org/image/6nfflked9/full/
  10. ^ http://blogs.wsj.com/privateequity/2014/07/30/biggest-names-in-private-equity-not-among-most-consistent-performers/
  11. ^ http://www.allbusiness.com/manufacturing/primary-metal-mfg-alumina-aluminum/5575757-1.html
  12. ^ http://investing.businessweek.com/businessweek/research/stocks/private/snapshot.asp?privcapId=22689
  13. ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1920714
  14. ^ http://www.efinancialnews.com/story/2011-05-09/sunday-times-rich-list-financiers-2011
  15. ^ http://www.forbes.com/profile/robert-agostinelli/
  16. ^ Barrett, Tony (15 March 2010). "Rhne Group makes offer for stake in Liverpool". The Times (London). 
  17. ^ http://www.empireofthekop.com/anfield/2010/03/14/who-are-the-rhone-group/
  18. ^ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEi.BgZxOpKg
  19. ^ http://www.freeofficesearch.co.uk/OfficeSpaceNews.asp?NewsID=00000440&monthnameyear=November2010
  20. ^ http://www.forbes.com/sites/timtreadgold/2014/08/06/kkr-looks-deep-into-the-wine-bottle-and-likes-what-it-sees/
  21. ^ http://ausfoodnews.com.au/2014/08/04/treasury-wines-receives-revised-takeover-proposal.html
  22. ^ http://www.afr.com/p/business/companies/kkr_rhone_capital_pitch_new_treasury_mFEzm16WjjIQOv9MkCWgEO
  23. ^ http://www.bloomberg.com/news/2014-08-03/kkr-makes-revised-a-3-4-billion-offer-for-treasury-wine-estates.html
  24. ^ http://www.theaustralian.com.au/business/mergers-acquisitions/twe-to-open-books-to-kkr-after-sweetened-520-per-share-bid/story-fn91vdzj-1227012509607?nk=d24a0a7f3e927cb6fb64c9f3ba6b41c2
  25. ^ http://www.misaustralia.com.au/p/business/companies/kkr_rhone_capital_pitch_new_treasury_mFEzm16WjjIQOv9MkCWgEO
  26. ^ http://www.ft.com/cms/s/0/95b11960-1b6b-11e4-b649-00144feabdc0.html#axzz39jJ3RfpP
  27. ^ http://www.rttnews.com/2362394/kkr-sweetens-takeover-bid-for-australia-s-treasury-wine-estates.aspx?type=bn&utm_source=google&utm_campaign=sitemap
  28. ^ http://uk.reuters.com/article/2014/08/03/us-treasury-wine-kkr-offer-idUKKBN0G30U020140803
  29. ^ http://www.bloomberg.com/news/2014-08-03/kkr-makes-revised-a-3-4-billion-offer-for-treasury-wine-estates.html
  30. ^ http://www.marketwatch.com/story/treasury-wine-says-kkr-raises-takeover-bid-2014-08-03-234855617?reflink=MW_news_stmp
  31. ^ http://www.afr.com/p/business/companies/robert_agostinelli_the_us_billionaire_IMBIyEbWLrc7objLn3ED4J
  32. ^ Spears, Lee (2013-06-13). "Coty Falls in Trading Debut After Raising Billion in IPO". Bloomberg. 
  33. ^ "Coty fails to charm investors in market debut". Reuters. 2013-06-13. 
  34. ^ http://www.cnbc.com/id/100769786
  35. ^ http://www.coty.com/company/coty-snapshot
  36. ^ http://www.coty.com/brands
  37. ^ http://www.bloomberg.com/news/2013-03-25/csm-agrees-to-sell-bakery-unit-to-rhone-for-about-1-4-billion.html
  38. ^ http://www.bangla.coty.com/media-center/press-releases
  39. ^ "Eden Springs sells Europe, Israel business to Rhone Capital". Reuters. 2013-06-16. 
  40. ^ http://www.bloomberg.com/news/2013-03-25/csm-agrees-to-sell-bakery-unit-to-rhone-for-about-1-4-billion.html "CSM to Sell Bakery Unit to Rhone for About $1.4 Billion"
  41. ^ http://www.reuters.com/article/2013/02/26/utex-auction-idUSL1N0BQ6Y020130226 "KKR, First Reserve, Ares prepare Final Utex Bids"
  42. ^ http://www.newenergyworldnetwork.com/investor-news/renewable-energy-news/by-technology/water/riverstone-buys-utex-from-rhone-capital.html
  43. ^ "RPT-Rhone Capital's Utex Industries explores sale-sources". Reuters. 2013-01-29. 
  44. ^ Connolly, Allison (2011-04-17). "Evonik Sells Carbon Black to Rhone Capital for $1.3 Billion". Bloomberg L.P. 
  45. ^ http://corporate.evonik.com/en/media/press_releases/corporate/pages/news-details.aspx?newsid=19107
  46. ^ "Evonik to sell Carbon Black to Rhône Capital". Financial Times. 2011-04-17. 
  47. ^ http://www.reuters.com/article/2014/07/14/orioncarbons-ipo-idUSL4N0PP57W20140714
  48. ^ http://www.plasteurope.com/news/ORION_ENGINEERED_CARBONS_t228922
  49. ^ http://www.plasteurope.com/news/ORION_ENGINEERED_CARBONS_t228922
  50. ^ http://www.euroseas.gr/home.html
  51. ^ http://finance.yahoo.com/news/euroseas-ltd-announces-acquisition-joint-130000547.html
  52. ^ a b Panja, Tariq (2010-04-12). "Liverpool Said Ready to Hire Barclays for $770 Million Sale of Soccer Club". Bloomberg. 
  53. ^ a b Smith, Rory (3 April 2010). "Rhone Group press Liverpool for answer to £110 million investment offer". The Daily Telegraph (London). 
  54. ^ http://www.ft.com/cms/s/0/454f47c0-a320-11df-8cf4-00144feabdc0.html
  55. ^ http://www.clickliverpool.com/sport/liverpool-fc/1210267-gillett-and-hicks-facing-%C3%8220million-rbs-penalty-as-liverpool-fc-sale-process-drags-on.html
  56. ^ http://business.transworld.net/15771/news/quiksilver-announces-financial-restructuring-plan/
  57. ^ http://business.transworld.net/38814/news/quiksilver-debt-for-equity-exchange-with-rhone/
  58. ^ http://www.allbusiness.com/company-activities-management/financial-performance/12584718-1.html
  59. ^ http://www.sportsbusinessdaily.com/Daily/Issues/2010/06/Issue-190/Finance/Quiksilver-Plans-Stock-For-Debt-Swap-With-Rhone-Group-LLC.aspx
  60. ^ http://www.sportsbusinessdaily.com/article/130812
  61. ^ "Quiksilver's fiscal 3Q earnings top analyst views". Business Week. 2010-09-02. 
  62. ^ "Moody's says it may raise ratings on Quiksilver". Business Week. 2010-06-16. 
  63. ^ http://www.mineralnet.co.uk/Article/1914334/Almatis-sold-for-1200m.html
  64. ^ http://www.ameinfo.com/136817.html
  65. ^ http://www.mineralnet.co.uk/Article/2272132/Fire-at-LWB-Refractories-in-France.html
  66. ^ http://www.alacrastore.com/deal-snapshot/Rhone_Capital_LLC_acquires_LWB_Refractories_GmbH_Co_KG_from_Dolomies_de_Marche_les_Dames_through_a_leveraged_buyout-478426
  67. ^ http://www.highbeam.com/doc/1G1-189486704.html
  68. ^ "Magnesita to acquire LWB Refractories.(IN THE NEWS)". 
  69. ^ http://biz.yahoo.com/ic/125/125694.html
  70. ^ http://www.efinancialnews.com/story/2007-11-30/rhone-triumphs-in-greek-directories-auction
  71. ^ http://www.buyoutsnews.com/story.asp?storycode=41038
  72. ^ http://www.realdeals.eu.com/search/?search=eurazeo
  73. ^ http://www.abcmoney.co.uk/news/31200715111.htm
  74. ^ http://www.pehub.com/2006/11/fraikin-groupe-to-go-public/
  75. ^ http://www.highbeam.com/doc/1G1-156101544.html
  76. ^ http://www.highbeam.com/doc/1G1-156067909.html
  77. ^ http://www.hoovers.com/company/Arizona_Chemical_Company/hcjxci-1.html
  78. ^ http://www.rttnews.com/ArticleView.aspx?Id=1267287
  79. ^ http://www.thisismoney.co.uk/news/article.html?in_article_id=357024&in_page_id=2
  80. ^ http://www.efinancialnews.com/story/2002-10-09/sssb-helps-dixons-renegotiate-unieuro-deal
  81. ^ Stevenson, Rachel (10 October 2002). "Dixons in £230m UniEuro takeover". The Independent (London). 
  82. ^ http://bebeez.it/en/2014/06/17/marco-polo-unieuro-towards-1-4-billion-euros-of-revenues-ipo-2-years-time/
  83. ^ "Coty Receives Minority Equity Investment from Berkshire Partners and Rhône". FinSMEs. 2011-01-26. 
  84. ^ "The Rhône Group becomes majority shareholder in ISB". International Boat Industry. 2006-03-16. 
  85. ^ Nisse, Jason (2004-04-04). "Waterstone buys Early Learning for £62m". London: The Independent. 
  86. ^ http://www2.hemscott.com/scripts/AFXnewstory.dll/text?EPIC=gog&SerialNumber=1605&NewsType=AFR&Indate=19/07/2000&CUST=1
  87. ^ http://www.altaventure.com/communication/altaventure-advised-rh%C3%B4ne-capital-llc-isb-acquisition
  88. ^ http://gossipextra.com/2012/05/29/rupert-murdoch-scandal-jeb-bush-florida-1514/
  89. ^ http://www.absolutereturn-alpha.com/Article/1949558/Rhone-Group-Does-First-Closing-On-700M-Fund.html
  90. ^ http://sullivancromwell.com/Credit-and-Leveraged-Practices/