Madison Dearborn
Encyclopedia
Madison Dearborn Partners (MDP) is a private equity
firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth capital investments in mature companies.
investments for First Chicago Bank
.
Madison Dearborn's chairman, John Canning, Jr.
, is also a minority owner of the Milwaukee Brewers
baseball team and submitted an ultimately unsuccessful bid to buy the Chicago Cubs
, from Roy Reiman
for $640 million. In 2002, the firm sold Reiman Publications to Reader's Digest Association.
In 2007, the firm joined forces with Michael Eisner
's Tornante
investment company to buy out baseball card
maker The Topps Company.
Madison Dearborn completed leveraged buyout
transactions for a number of publicly traded and other significant companies in 2006 and 2007 including:
(BCE) announced that the company entered into a definitive agreement for BCE to be acquired pursuant to a plan of arrangement by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners. The all-cash transaction is valued at C$51.7 billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The arrangement was approved on September 21, 2007 at a Special Meeting of shareholders by more than 97% of the votes cast by holders of common and preferred shares, voting as a single class.
and other institutional investors:
Source: Preqin
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth capital investments in mature companies.
History
Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders of Madison Dearborn had previously made private equityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investments for First Chicago Bank
First Chicago Bank
First Chicago Bank was a Chicago-based retail and commercial bank tracing its roots back to 1863. Over the years, the bank operated under several names including The First National Bank of Chicago and First Chicago NBD...
.
Madison Dearborn's chairman, John Canning, Jr.
John Canning, Jr.
John A. Canning, Jr. is a private equity investor and sports executive. He is the founder and chairman of Madison Dearborn Partners, the large Chicago-based private equity firm. He has recently been linked to discussions about the potential sale of the Chicago Cubs.-Career:Canning was an early...
, is also a minority owner of the Milwaukee Brewers
Milwaukee Brewers
The Milwaukee Brewers are a professional baseball team based in Milwaukee, Wisconsin, currently playing in the Central Division of Major League Baseball's National League...
baseball team and submitted an ultimately unsuccessful bid to buy the Chicago Cubs
Chicago Cubs
The Chicago Cubs are a professional baseball team located in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League. They are one of two Major League clubs based in Chicago . The Cubs are also one of the two remaining charter members of the National...
Investments
In 1998, the firm bought Reiman Publications, based in Greendale, WisconsinGreendale, Wisconsin
Greendale is a village in Milwaukee County, Wisconsin, United States. The population was 14,405 at the 2000 census.-History:Greendale was settled in 1938 as a public cooperative community in the New Deal Era...
, from Roy Reiman
Roy Reiman
Roy Reiman is the founder of Reiman Publications based in Greendale, Wisconsin, which is best known for its country-oriented magazines, books, and other home products. Roy Reiman is credited with building the country’s largest, private, subscription-based publishing company...
for $640 million. In 2002, the firm sold Reiman Publications to Reader's Digest Association.
In 2007, the firm joined forces with Michael Eisner
Michael Eisner
Michael Dammann Eisner is an American businessman. He was the chief executive officer of The Walt Disney Company from 1984 until 2005.-Early life:...
's Tornante
Tornante
The Tornante Company is a privately held investment firm founded by former The Walt Disney Company CEO Michael Eisner in 2005. Tornante invests in and creates media and entertainment....
investment company to buy out baseball card
Baseball card
A baseball card is a type of trading card relating to baseball, usually printed on some type of paper stock or card stock. A card will usually feature one or more baseball players or other baseball-related sports figures...
maker The Topps Company.
Madison Dearborn completed leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions for a number of publicly traded and other significant companies in 2006 and 2007 including:
- AsurionAsurionAsurion Corp. is the largest global provider of wireless handset insurance and wireless roadside assistance programs. Asurion also offers data-backup services through wireless carriers in North America. The International Headquarters is located in Nashville, Tennessee, and the North American...
- CDWCDWCDW Corporation, headquartered in Vernon Hills, Illinois, is a reseller of computer hardware, software and supplies. Along with its warehouse-attached showroom in Illinois, CDW takes orders from its catalog via mail order, telephone and the Internet....
- LA Fitness
- Nuveen investmentsNuveen investmentsNuveen Investments is a Chicago based private company in the asset management industry. Nuveen was founded in Chicago, Illinois in 1898 and was previously named The John Nuveen Co., after founder John Nuveen....
- Sorenson Communications
- Univision CommunicationsUnivision CommunicationsUnivision Communications is an American Spanish language media company in the United States. Its headquarters are in Midtown Manhattan, New York City. Prior to 2007, the headquarters were in Century City, Los Angeles, California, USA.- History :...
- VWR InternationalVWR InternationalVWR, headquartered in Radnor, Pennsylvania, is a global laboratory supply and distribution company with worldwide sales in excess of $3.6 billion in 2010....
- Yankee Candle
Bell Canada
On June 30, 2007, Bell Canada EnterprisesBell Canada
Bell Canada is a major Canadian telecommunications company. Including its subsidiaries such as Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for telephone and DSL Internet services in most of Canada east of Manitoba and in the northern territories,...
(BCE) announced that the company entered into a definitive agreement for BCE to be acquired pursuant to a plan of arrangement by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners. The all-cash transaction is valued at C$51.7 billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The arrangement was approved on September 21, 2007 at a Special Meeting of shareholders by more than 97% of the votes cast by holders of common and preferred shares, voting as a single class.
Investment funds
MDP invests through a series of private limited partnerships and its investors include a variety of pension funds, endowmentsFinancial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
and other institutional investors:
- 1993 - Madison Dearborn Capital Partners ($550 million)
- 1997 - Fund II ($925 million)
- 1999 - Fund III ($2.2 billion)
- 2000 - Fund IV ($4.1 billion)
- 2006 - Fund V ($6.5 billion)
- 2010 - Fund VI ($4.1 billion)
Source: Preqin
Preqin
Preqin is a research and consultancy firm focusing on alternative asset classes. The company covers private equity, real estate, infrastructure, and hedge funds and is headquartered in London, UK, with additional offices in New York and Singapore. Preqin maintains a number of publications and...
Selected Portfolio
- AsurionAsurionAsurion Corp. is the largest global provider of wireless handset insurance and wireless roadside assistance programs. Asurion also offers data-backup services through wireless carriers in North America. The International Headquarters is located in Nashville, Tennessee, and the North American...
- Boise CascadeBoise CascadeBoise Cascade Holdings, LLC, which uses the trade name Boise, is an American pulp and paper company, ranked as the thirteenth largest forest products company in the world....
- Bolthouse FarmsBolthouse FarmsBolthouse Farms, founded 1915 in Grant, Michigan, is a vertically integrated farm company located in California's San Joaquin Valley and headquartered in Bakersfield, California. The company still operates some facilities in Prosser, Washington, but shut down operations in Michigan in June 2010...
- CDWCDWCDW Corporation, headquartered in Vernon Hills, Illinois, is a reseller of computer hardware, software and supplies. Along with its warehouse-attached showroom in Illinois, CDW takes orders from its catalog via mail order, telephone and the Internet....
- Family Christian StoresFamily Christian StoresFamily Christian Stores is the world's largest Christian-focused retailer, and it is located in the United States. As of 2007, the retail chain had 4,600 employees in over 300 stores in 40 states...
- FieldglassFieldglassFieldglass is a Chicago-based vendor of Software-as-a-Service-based platforms to help companies procure and manage contingent work, service providers such as Statement of work projects and independent contractors.- Background :...
- IntelsatIntelsatIntelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...
- Nuveen InvestmentsNuveen investmentsNuveen Investments is a Chicago based private company in the asset management industry. Nuveen was founded in Chicago, Illinois in 1898 and was previously named The John Nuveen Co., after founder John Nuveen....
- Smurfit Kappa GroupSmurfit Kappa GroupThe Smurfit Kappa Group is Europe's leading corrugated packaging company, following the merger of Jefferson Smurfit Group and Kappa Packaging. This merger was finalized by the end of 2005...
- ToppsToppsThe Topps Company, Inc., manufactures chewing gum, candy and collectibles. Based in New York, New York, Topps is best known as a leading producer of baseball cards, football cards, basketball cards, hockey cards and other sports and non-sports themed trading cards.-Company history:Topps itself was...
- TransUnionTransUnionTransUnion is the third largest credit bureau in the United States, which offers credit-related information to potential creditors. Like major competitors Equifax and Experian, TransUnion markets credit reports directly to consumers.- History :...
- Univision CommunicationsUnivision CommunicationsUnivision Communications is an American Spanish language media company in the United States. Its headquarters are in Midtown Manhattan, New York City. Prior to 2007, the headquarters were in Century City, Los Angeles, California, USA.- History :...
- VWR InternationalVWR InternationalVWR, headquartered in Radnor, Pennsylvania, is a global laboratory supply and distribution company with worldwide sales in excess of $3.6 billion in 2010....
- Yankee Candle CompanyYankee Candle CompanyThe Yankee Candle Company is the largest U.S. manufacturer of scented candles. The company is located in South Deerfield, Massachusetts.-History:...
External links
- Madison Dearborn (official website)