Portfolio Investments
Apollo has been an active private equity investor through the mid-2000s buyout boom. The following is a list of Apollo's most recent and currently active private equity investments. The bulk of these investments are held in Apollo Investment Fund V, VI and VII.
| Investment | Year | Company Description | Ref. |
|---|---|---|---|
| Berry Plastics | 2006 | In June 2009, Apollo and Graham Partners announced the acquisition of Berry Plastics Corporation, a maker of plastic containers, for $2.25 billion from Goldman Sachs Capital Partners and JPMorgan Partners. | |
| Claire's | 2007 | In March 2007, Apollo announced the $3.1 billion leveraged buyout of costume jewelry retailer, Claire’s Stores. In 2008, Claire's experienced financial difficulty amid the slump in consumer spending. | |
| Countrywide plc | 2007 | In May 2007, Apollo acquired Countrywide plc, the leading provider of residential property related services in the UK, formerly known as Hambro Countrywide (1988) and Countrywide Assured Group (1998) for $1.05 billion (not related to Countrywide Financial). | |
| CEVA Logistics | 2006 | In August 2006, TNT N.V. announced that it had agreed to the sale of its logistics division to Apollo for $1.9 billion. The business was re-branded as CEVA in November 2007. | |
| Debt investments | 2008-2009 | Since the beginning of 2008, Apollo has been a significant acquiror of senior secured loans from investment banks and other financial institutions. In April 2008, Apollo, TPG Capital and The Blackstone Group completed the acquisition of $12.5 billion of bank loans from Citigroup. The portfolio comprised primarily senior secured leveraged loans that had been made to finance leveraged buyout transactions at the peak of the market. Citigroup had been unable to syndicate the loans before the onset of the credit crunch. The loans were reported to have been sold in the "mid-80 cents on the dollar" relative to face value. In late 2008, it was reported that Apollo had received margin calls associated with the financing of its purchase of certain loan portfolios as the price of the loans decreased. | |
| Great Wolf Resorts | 2012 | In March 2012 Apollo announced plans to acquire the resorts chain for $703 million. Reports indicated the chain had not turned a profit since 2008. | |
| Harrah's Entertainment | 2006 | On December 19, 2006, Apollo and TPG Capital announced an agreement to acquire the gaming company for $27.4 billion, including the assumption of existing debt. | |
| Hexion Specialty Chemicals | 2005 | Hexion was formed in 2005 through the merger of Borden Chemical, Inc., Resolution Performance Products LLC, and Resolution Specialty Materials LLC, and the acquisition of Bakelite AG. Hexion announced in July 2007 that it was acquiring Huntsman Corporation, a major specialty chemicals company, in a $6.5 billion leveraged buyout. Hexion announced in June 2008 it would refuse to close the deal, prompting a series of legal actions. The transaction was officially terminated on December 14 after a settlement between Hexion and Huntsman, wherein they were required to pay Huntsman $1 billion to drop fraud charges that would have potentially sent the CEO of Apollo to prison. | |
| Jacuzzi Brands | 2006 | In October 2006, Apollo announced a $990 million leveraged buyout of Jacuzzi Brands, the manufacturer of whirlpool baths. | |
| McGraw-Hill Education | 2012 | In November 2012, McGraw Hill announced that it had agreed to the sale of its education division to Apollo for $2.5 billion. | |
| Momentive Performance Materials | 2006 | In June 2006, Apollo acquired General Electric's Advanced Materials (Silicones & Quartz) business in a deal valued at approximately $3.8 billion. | |
| Noranda Aluminum | 2007 | In April 2007, Apollo acquired the US aluminum business of the mining company Xstrata for $1.15 billion. The aluminum business, Noranda Aluminum, includes a primary smelter and three rolling mills in Tennessee, North Carolina and Arkansas along with other operations. | |
| Norwegian Cruise Line | 2008 | In January 2008, Apollo completed a $1 billion investment in the cruise line operator to support a recapitalization of the company's balance sheet. | |
| Oceania Cruises | 2007 | In February, 2007, Apollo acquired the luxury cruise line and provided additional capital to fund the expansion of the company with the purchase of two new cruise ships. | |
Realogy:
|
2006 | In December 2006, Apollo announced an $8.5 billion buyout of the real estate franchisor that owns Coldwell Banker, Century 21 and Sotheby’s International Realty. The transaction closed in April 2007 and was delisted from the New York Stock Exchange. As the housing market crash accelerated in 2008, Realogy faced financial pressures relating to its debt load. In November 2008, Realogy launched an exchange offer for a portion of its debt to provide additional flexibility, prompting a lawsuit from Carl Icahn. | |
| Regent Seven Seas Cruises | 2008 | In February 2008, Apollo purchased the luxury cruise line from Carlson Companies for $1 billion. Following the purchase, Apollo made public their plans to order a new ship for Regent. | |
| Rexnord | 2006 | In May 2006, Apollo announced the acquisition of the manufacturer of precision motion technology products, primarily focused on power transmission, from private equity firm The Carlyle Group for $1.825 billion. | |
Smart & Final
|
2007 | In February 2007, Apollo announced the acquisition of the Smart & Final chain of warehouse style food and supply stores. In June 2007, Smart & Final completed the acquisition of the Henry's Marketplace chain of "farmers market" style food retailers from Wild Oats Markets as part of that company's acquisition by Whole Foods Market. In 2011, the Henry's chain was merged with Sprouts Farmers Market, which, like the Henry's markets, had been founded by Henry Boney. |
|
| Vantium Management | 2008 | In May 2008, Apollo invested in Vantium, a company that buys residential mortgage assets as part of a strategy to profit from the housing market crash. | |
| Verso Paper | 2006 | In 2006, Apollo acquired International Paper's coated and supercalendered paper business for $1.4 billion, renaming the business, Verso Paper. Verso has been the second largest producer for the North American magazine publishing and catalog/commercial print markets. In May 2008, Verso was able to complete an initial public offering of stock. |
Other investments include Connections Academy and Unity Media GMBH.
Read more about this topic: Apollo Management
Famous quotes containing the word investments:
“In youth, love and art. In age, investments and antiques.”
—Mason Cooley (b. 1927)