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Rhône Group

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Rhône Group
Company typePrivate Ownership
IndustryPrivate equity
Founded1995
FounderRobert Agostinelli
Steven Langman
HeadquartersNew York, USA
ProductsPrivate equity
RevenueUndisclosed to public
Total assets$8.5 billion Approximately [1][2]
Number of employees
100+
Websitewww.rhonegroup.com

Rhône Group is a private equity firm,[3] specializing in mergers and acquisitions, leveraged buyouts, recapitalizations, and partnerships with particular focus on European and Trans- Atlantic investments.[4] Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services.[4]

Rhône is [5] headquartered at Rockefeller Plaza in New York City,[6] with additional offices in London and Paris. Rhône was founded in 1995[7] by billionaire [8] financiers Robert Agostinelli [9] and Steven Langman.[10] The pair have been running and managing Rhône since inception along with their team who most of whom have been working together since the early 80's[11] at Lazard and Goldman Sachs.[12] The company tends to invests in energy, materials, industrials, retailing, consumer staples, healthcare, and financial sectors. It focuses on investments in European and trans-Atlantic companies. In December 2010, the company acquired UTEX Industries, a provider of sealing products and services, from the Audax Group[13] In 2011 the Oil & Gas Financial Journal (OGFJ), listed Rhône Group as one of the leading private equity providers to the oil and gas industry sector.[14]

History of private equity
and venture capital
Early history
(origins of modern private equity)
The 1980s
(leveraged buyout boom)
The 1990s
(leveraged buyout and the venture capital bubble)
The 2000s
(dot-com bubble to the credit crunch)
The 2010s
(expansion)
The 2020s
(COVID-19 recession)

London Office

In 2011, Rhône Group moved from their Knightsbridge office to Mayfair's exclusive 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.[15]

Funds

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

Evonik Carbon Black

In April 2011, Rhône Capital purchased the Carbon Black unit from Evonik Industries AG for in-excess of $1.3 billion.[16] 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.[17] Evonik was advised by Barclays Capital and Rhône was advised by Morgan Stanley.[18]

Liverpool F.C.

In March 2010, English Premier League football club Liverpool F.C. revealed that Rhône were in exclusive negotiations to potentially buy the football club.[19] 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.[20] 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 [20] is still outstanding and lack of fresh investment has meant plans for work to begin on a new £350 million stadium have stalled.[19]

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.[21] 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[22]

Quiksilver Inc.

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.[23] The deal included $25.6 million in warrants which allowed Rhône to buy 20% of Quiksilver's shares making Rhône own a fifth of the company.[24] Rhône also assigned two new directors for Quiksilver's board.[24]

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.[24] 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.[25]

In August 2010, Quiksilver completed an exchange of 31.1 million shares worth about $140 million for the debt, held by Rhone.[26] At the time, Moody's stated that it could raise the debt rating on Quiksilver if the deal went through.[27]

Almatis

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.[28] DIC retained the existing management team and further supported the global growth strategy pursued by Almatis.[29]

LWB Refractories

In 2007, Rhône bought LWB Refractories, described by the magazine Industrial Minerals as "the worlds leading refractory dolomite producer",[30] from Lhoist Group S.A. for an undisclosed amount.[31] In 2008, Rhône then sold LWB Refractories for $938 million.[32] to Brazilian manufacturer Magnesita Refratarios S.A.[33] The deal created what is now one of the world largest refractory manufacturers.[34]

InfOTE

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 a 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.[35]

Fraikin

In 2007, Rhône together with Eurazeo[36] and Pragma Capital sold truck rental company Fraikin to CVC Capital Partners for €1.35 billion.[37] Eurazeo owned 55%, Pragma Capital owned 13.75% and Rhône owned 20%.[38] The remaining percentage is owned by other minority shareholders and management.

Arizona Chemical

In 2006, Rhône bought Arizona Chemical for $485 million.[39] 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.[40] 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.[41] Arizona Chemical has been a global leader in pine chemistry for more than 75 years.[42]

UniEuro

In 2001, the UK's largest electronics retailer, Dixons bought Italy's most profitable chain of domestic appliance stores, UniEuro [43] from Rhône and JP Morgan for €368 million [44] to take controlling interest of nearly 96% of the company with an option to buy the remaining 4% for €30 million.[45]

Other investments

Disclosure

Rhône is authorised and regulated by the Financial Services Authority (FSA) and the U.S Securities Exchange Commission (SEC).[51] Rhône is a 'Selected Client' and 'Sponsor' to Sullivan & Cromwell LLP.[52]

See also

References

  1. ^ http://www.forbes.com/profile/robert-agostinelli/
  2. ^ http://www.hedgeho.com/hedge-fund-news/us-hedge-fund-boss-was-spied-on-by-murdocks-private-eye/
  3. ^ US private-equity group bids to take controlling stake in Liverpool, London: The Guardian, 14 March 2010, retrieved 2 November 2010
  4. ^ a b http://www.footballfancast.com/football-blogs/liverpool-takeover
  5. ^ http://www.allbusiness.com/manufacturing/primary-metal-mfg-alumina-aluminum/5575757-1.html
  6. ^ http://investing.businessweek.com/businessweek/research/stocks/private/snapshot.asp?privcapId=22689
  7. ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1920714
  8. ^ Forbes http://www.forbes.com/profile/robert-agostinelli/. {{cite news}}: Missing or empty |title= (help)
  9. ^ http://www.efinancialnews.com/story/2011-05-09/sunday-times-rich-list-financiers-2011
  10. ^ Barrett, Tony (15 March 2010). "Rhne Group makes offer for stake in Liverpool". The Times. London.
  11. ^ "Leading Swiss Bank Taps Three Top U.S. Executives for Key Positions; Robert F. Agostinelli, Sheldon S. Gordon and M. Steven Langman Join Union Bancaire Privee". Business Wire. 1996.
  12. ^ http://www.allbusiness.com/company-activities-management/company-strategy-alliances/7228889-1.html
  13. ^ http://www.ogfj.com/index/article-display/9174994651/articles/oil-gas-financial-journal/capital/private-equity0/utex-industries_acquired.html
  14. ^ http://www.ogfj.com/etc/medialib/platform-7/ogfj/articles/print-articles/2011-pdfs/1.Par.70070.File.dat/leading%20private%20equity.pdf
  15. ^ http://www.freeofficesearch.co.uk/OfficeSpaceNews.asp?NewsID=00000440&monthnameyear=November2010
  16. ^ Connolly, Allison (2011-04-17). "Evonik Sells Carbon Black to Rhone Capital for $1.3 Billion". Bloomberg L.P.
  17. ^ http://corporate.evonik.com/en/media/press_releases/corporate/pages/news-details.aspx?newsid=19107
  18. ^ "Evonik to sell Carbon Black to Rhône Capital". Financial Times. 2011-04-17.
  19. ^ a b Panja, Tariq (2010-04-12). "Liverpool Said Ready to Hire Barclays for $770 Million Sale of Soccer Club". Bloomberg.
  20. ^ a b Smith, Rory (3 April 2010). "Rhone Group press Liverpool for answer to £110 million investment offer". The Daily Telegraph. London.
  21. ^ http://www.ft.com/cms/s/0/454f47c0-a320-11df-8cf4-00144feabdc0.html
  22. ^ http://www.clickliverpool.com/sport/liverpool-fc/1210267-gillett-and-hicks-facing-%C3%8220million-rbs-penalty-as-liverpool-fc-sale-process-drags-on.html
  23. ^ http://business.transworld.net/15771/news/quiksilver-announces-financial-restructuring-plan/
  24. ^ a b c http://www.allbusiness.com/company-activities-management/financial-performance/12584718-1.html
  25. ^ http://www.sportsbusinessdaily.com/article/130812
  26. ^ "Quiksilver's fiscal 3Q earnings top analyst views". Business Week. 2010-09-02.
  27. ^ "Moody's says it may raise ratings on Quiksilver". Business Week. 2010-06-16.
  28. ^ http://www.mineralnet.co.uk/Article/1914334/Almatis-sold-for-1200m.html
  29. ^ http://www.ameinfo.com/136817.html
  30. ^ http://www.mineralnet.co.uk/Article/2272132/Fire-at-LWB-Refractories-in-France.html
  31. ^ 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
  32. ^ http://www.highbeam.com/doc/1G1-189486704.html
  33. ^ "Magnesita to acquire LWB Refractories.(IN THE NEWS)".
  34. ^ http://biz.yahoo.com/ic/125/125694.html
  35. ^ http://www.efinancialnews.com/story/2007-11-30/rhone-triumphs-in-greek-directories-auction
  36. ^ http://www.buyoutsnews.com/story.asp?storycode=41038
  37. ^ http://www.realdeals.eu.com/search/?search=eurazeo
  38. ^ http://www.abcmoney.co.uk/news/31200715111.htm
  39. ^ http://www.highbeam.com/doc/1G1-156101544.html
  40. ^ http://www.highbeam.com/doc/1G1-156067909.html
  41. ^ http://www.hoovers.com/company/Arizona_Chemical_Company/hcjxci-1.html
  42. ^ http://www.rttnews.com/ArticleView.aspx?Id=1267287
  43. ^ http://www.thisismoney.co.uk/news/article.html?in_article_id=357024&in_page_id=2
  44. ^ http://www.efinancialnews.com/story/2002-10-09/sssb-helps-dixons-renegotiate-unieuro-deal
  45. ^ Stevenson, Rachel (10 October 2002). "Dixons in £230m UniEuro takeover". The Independent. London.
  46. ^ "Coty Receives Minority Equity Investment from Berkshire Partners and Rhône". FinSMEs. 2011-01-26.
  47. ^ "The Rhône Group becomes majority shareholder in ISB". International Boat Industry. 2006-03-16.
  48. ^ Nisse, Jason (2004-04-04). "Waterstone buys Early Learning for £62m". London: The Independent.
  49. ^ http://www2.hemscott.com/scripts/AFXnewstory.dll/text?EPIC=gog&SerialNumber=1605&NewsType=AFR&Indate=19/07/2000&CUST=1
  50. ^ http://www.altaventure.com/communication/altaventure-advised-rh%C3%B4ne-capital-llc-isb-acquisition
  51. ^ http://www.absolutereturn-alpha.com/Article/1949558/Rhone-Group-Does-First-Closing-On-700M-Fund.html
  52. ^ http://sullivancromwell.com/Credit-and-Leveraged-Practices/
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