Rhône Group
Encyclopedia
Rhône Group is a private equity
firm, specializing in mergers and acquisitions
, leveraged buyouts, recapitalizations, and partnerships with particular focus on Europe
an and Trans- Atlantic investments. Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services.
Rhône is headquartered at Rockefeller Plaza in New York City
, with additional offices in London
and Paris
. Rhône was founded in 1995 by billionaire financiers Robert Agostinelli
and Steven Langman
. 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 at Lazard
and Goldman Sachs
. 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
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.
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.
AG for in-excess of $1.3 billion. 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
. Evonik was advised by Barclays Capital
and Rhône was advised by Morgan Stanley
.
revealed that Rhône were in exclusive negotiations to potentially buy the football club. 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. 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
is still outstanding and lack of fresh investment has meant plans for work to begin on a new £350 million stadium have stalled.
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. 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
$150 million over five years to help the company refinance a U.S. line of credit and consolidate its European debt. 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. Rhône also assigned two new directors for Quiksilver
's board.
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.
In August 2010, Quiksilver completed an exchange of 31.1 million shares worth about $140 million for the debt, held by Rhone. At the time, Moody's
stated that it could raise the debt rating on Quiksilver if the deal went through.
(DIC), the international investment arm of Dubai Holding, for £1.2 billion.. DIC retained the existing management team and further supported the global growth strategy pursued by Almatis.
, UK-based private equity house Bridgepoint, and DLJ Merchant Banking, the buyout arm of Credit Suisse
, as well as Greek media group Antenna
.
and Pragma Capital sold truck rental company Fraikin to CVC Capital Partners
for €1.35 billion. Eurazeo
owned 55%, Pragma Capital owned 13.75% and Rhône owned 20%. The remaining percentage is owned by other minority shareholders and management.
, a by-product of wood pulping. 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. Arizona Chemical has been a global leader in pine chemistry for more than 75 years.
and JP Morgan for €368 million to take controlling interest of nearly 96% of the company with an option to buy the remaining 4% for €30 million.
(FSA) and the U.S Securities Exchange Commission (SEC). Rhône is a 'Selected Client' and 'Sponsor' to Sullivan & Cromwell
LLP.
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 mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
, leveraged buyouts, recapitalizations, and partnerships with particular focus on Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an and Trans- Atlantic investments. Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services.
Rhône is headquartered at Rockefeller Plaza in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, with additional offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. Rhône was founded in 1995 by billionaire financiers Robert Agostinelli
Robert Agostinelli
Robert Frank Agostinelli is an American businessman and investor and the chairman and the co-founder of the Rhône Group, the private-equity and financial advisory firm...
and Steven Langman
Steven Langman
Steven M. Langman is a businessman and investor and the chairman and co-founder of the Rhône Group, the private-equity and financial advisory firm.-Background:...
. 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 at Lazard
Lazard
Lazard Ltd is the parent company of Lazard Group LLC, a global, independent investment bank with approximately 2,300 employees in 42 cities across 27 countries throughout Europe, North America, Asia, Australia, Central and South America...
and Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
. The company tends to invests in energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...
, materials, industrials, retailing
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
, consumer staples, healthcare, and financial sectors. It focuses on investments in European and trans-Atlantic companies. In December 2010, the company acquired UTEX Industries
UTEX Industries
UTEX Industries is a provider of sealing products and services, catering primarily to the oil extraction, natural gas, and water distribution markets, along with other industrial businesses. It is the largest rubber molder in the Southern United States....
, a provider of sealing products and services, from the Audax Group
Audax Group
The Audax Group is a private equity investment firm focusing on leveraged buyout, growth capital, mezzanine capital and senior debt, primarily in middle-market companies....
In 2011 the Oil & Gas Financial Journal (OGFJ), listed Rhône Group as one of the leading private equity
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....
providers to the oil and gas industry sector.
London Office
In 2011, Rhône Group moved from their KnightsbridgeKnightsbridge
Knightsbridge is a road which gives its name to an exclusive district lying to the west of central London. The road runs along the south side of Hyde Park, west from Hyde Park Corner, spanning the City of Westminster and the Royal Borough of Kensington and Chelsea...
office to Mayfair
Mayfair
Mayfair is an area of central London, within the City of Westminster.-History:Mayfair is named after the annual fortnight-long May Fair that took place on the site that is Shepherd Market today...
'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.
Funds
- Rhône Capital Partners Fund I
- Rhône Capital Partners Fund II
- Rhône Capital Partners Fund III
- Rhône Capital Partners Fund IV
- Rhône Clean Tech Fund I L.P
- Rhône Group Oil & Gas Fund
Evonik Carbon Black
In April 2011, Rhône Capital purchased the Carbon Black unit from Evonik IndustriesEvonik Industries
Evonik Industries is an industrial corporation in Germany owned by RAG Foundation and one of the world´s leading specialty chemicals companies. It was created on 12 September 2007 as a result of restructuring of the mining and technology group RAG...
AG for in-excess of $1.3 billion. At the time, Evonik described Carbon Black as the third largest in the world
World
World is a common name for the whole of human civilization, specifically human experience, history, or the human condition in general, worldwide, i.e. anywhere on Earth....
, including 16 production facilities in 11 countries with over 1,650 employees including 500 in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. Evonik was advised by Barclays Capital
Barclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
and Rhône was advised by Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
.
Liverpool F.C.
In March 2010, English Premier League football club Liverpool F.C.Liverpool F.C.
Liverpool Football Club is an English Premier League football club based in Liverpool, Merseyside. Liverpool has won eighteen League titles, second most in English football, seven FA Cups and a record seven League Cups...
revealed that Rhône were in exclusive negotiations to potentially buy the football club. Rhône made a bid of £118.5 million for a controlling 40 percent stake in the Anfield
Anfield
Anfield is an association football stadium in the district of Anfield, Liverpool, England, with a seating capacity of 45,522. It has been the home of Liverpool F.C. since their formation in 1892 and was originally the home of Everton F.C. from 1884 to 1892, before they moved to Goodison Park...
club with an additional £25 million infusion of funds for transfers. Liverpool F.C's managing director Christian Purslow
Christian Purslow
Christian Mark Cecil Purslow is a British-born businessman, co-founder of private equity firm MidOcean Partners, and former Managing Director of Liverpool Football Club.-Early life:...
and manager Rafael Benitez
Rafael Benítez
Rafael "Rafa" Benítez Maudes is a football manager, and former player. He is currently unemployed, after leaving as manager of Internazionale in December 2010....
both gave Tom Hicks
Tom Hicks
Thomas Ollis Hicks, Sr. , is an American 'leveraged buyout' businessman living in Dallas, Texas. Despite Forbes Magazine estimating Hicks' wealth at USD 1 billion in 2009, Hicks was unable to pay off joint loans of circa £200 million the following year...
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
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
is still outstanding and lack of fresh investment has meant plans for work to begin on a new £350 million stadium have stalled.
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
Subrata Roy
Subrata Roy Sahara also known as Saharasri is the managing worker and chairman of Sahara India Pariwar.-About:...
's Indian Sahara conglomerate. Liverpool's chairman, Martin Broughton
Martin Broughton
Sir Martin Faulkner Broughton is a British businessman who is the current chairman of British Airways and former chairman of Liverpool Football Club...
appointed by Barclays Capital
Barclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
had hoped to identify a preferred bidder before the end of the transfer window, September 1, 2010. As a result of not having achieved this investment, George N. Gillett, Jr. and Tom Hicks
Tom Hicks
Thomas Ollis Hicks, Sr. , is an American 'leveraged buyout' businessman living in Dallas, Texas. Despite Forbes Magazine estimating Hicks' wealth at USD 1 billion in 2009, Hicks was unable to pay off joint loans of circa £200 million the following year...
were obliged to pay a £20 million penalty to the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
Quiksilver Inc.
In 2009, Rhône loaned QuiksilverQuiksilver
Quiksilver, Inc. , is an American company based in Huntington Beach, California, one of the world's largest manufacturers of surfwear and other boardsport-related equipment...
$150 million over five years to help the company refinance a U.S. line of credit and consolidate its European debt. 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. Rhône also assigned two new directors for Quiksilver
Quiksilver
Quiksilver, Inc. , is an American company based in Huntington Beach, California, one of the world's largest manufacturers of surfwear and other boardsport-related equipment...
's board.
The deal was described by the Orange County Business Journal
Orange County Business Journal
The Orange County Business Journal is a weekly print and online newspaper covering business in Orange County, California. The paper is the second largest business journal in California after the Los Angeles 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
Skis Rossignol
Skis Rossignol S.A., or simply Rossignol, is a French manufacturer of alpine, snowboard, and Nordic equipment, as well as related outerwear and accessories, located in Isère, France. Rossignol was one of the first companies to produce plastic skis. The company also owns the brand Dynastar as well...
. As a result Quiksilver announced it no longer planned to sell its DC Shoes
DC Shoes
DC Shoes is an American company that specializes in footwear for extreme sports, skateboarding, snowboarding as well as snowboards, shirts, jeans, hats, and jackets.The company was founded in 1993 by Ken Block and Damon Way, and is based in Vista, California...
unit or any other brands it owned. Surfer Kelly Slater
Kelly Slater
Robert Kelly Slater is an American professional surfer known for his competitive prowess and style. He has been crowned ASP World Champion a record 11 times, including 5 consecutive titles from 1994–98. He is the youngest and the oldest to win the title...
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.
In August 2010, Quiksilver completed an exchange of 31.1 million shares worth about $140 million for the debt, held by Rhone. At the time, Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
stated that it could raise the debt rating on Quiksilver if the deal went through.
Almatis
In 2007, Rhône sold Almatis, a producer of specialty alumina, to Dubai International CapitalDubai International Capital
Dubai International Capital is the international investment arm of Dubai Holding, a holding company and sovereign wealth fund of the government of Dubai and its ruling family and has been over-leveraged to the point whereby the company is not able to service its interest payments in a normal fashion...
(DIC), the international investment arm of Dubai Holding, for £1.2 billion.. DIC retained the existing management team and further supported the global growth strategy pursued by Almatis.
LWB Refractories
In 2007, Rhône bought LWB Refractories, described by the magazine Industrial Minerals as "the worlds leading refractory dolomite producer", from Lhoist Group S.A. for an undisclosed amount. In 2008, Rhône then sold LWB Refractories for $938 million. to Brazilian manufacturer Magnesita Refratarios S.A. The deal created what is now one of the world largest refractory manufacturers.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 StevensonVeronis Suhler Stevenson
Veronis Suhler Stevenson, or VSS is a private equity firm whose investments are exclusively concentrated in the Media industry and related sectors including information, education, marketing services and business services...
, UK-based private equity house Bridgepoint, and DLJ Merchant Banking, the buyout arm of Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
, as well as Greek media group Antenna
ANT1
Antenna, better known as ANT1, is a television network airing in Greece and Cyprus. The alternate spelling is play on words in Greek; ena is the Greek number 1, thus ANT1 is pronounced the same as Antenna . It launched on 31 December 1989, the same year as rival Mega Channel, and is owned by...
.
Fraikin
In 2007, Rhône together with EurazeoEurazeo
Eurazeo is a French investment company, formed in the merger of Eurafrance and Azeo. Its headquarters are in the 8th arrondissement of Paris.The firm's strategy is to focus on growing companies operating in various markets, with a path to eventually become the chief shareholder of, or at least a...
and Pragma Capital sold truck rental company Fraikin to CVC Capital Partners
CVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
for €1.35 billion. Eurazeo
Eurazeo
Eurazeo is a French investment company, formed in the merger of Eurafrance and Azeo. Its headquarters are in the 8th arrondissement of Paris.The firm's strategy is to focus on growing companies operating in various markets, with a path to eventually become the chief shareholder of, or at least a...
owned 55%, Pragma Capital owned 13.75% and Rhône owned 20%. The remaining percentage is owned by other minority shareholders and management.
Arizona Chemical
In 2006, Rhône bought Arizona Chemical for $485 million. 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 oilTall oil
Tall oil, also called "liquid rosin" or tallol, is a viscous yellow-black odorous liquid obtained as a by-product of the Kraft process of wood pulp manufacture when pulping mainly coniferous trees. The name originated as an anglicization of the Swedish "tallolja"...
, a by-product of wood pulping. 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
International Paper
International Paper Company is an American pulp and paper company, the largest such company in the world. It has approximately 59,500 employees, and it is headquartered in Memphis, Tennessee.-History:...
and American Cyanamid
American Cyanamid
American Cyanamid was a large, diversified, American chemical manufacturer, founded by Frank Washburn in 1907. It was the only United States firm manufacturing the polio vaccine of the Sabin type....
and is now owned by Rhône. Arizona Chemical filed for an IPO in 2010. Arizona Chemical has been a global leader in pine chemistry for more than 75 years.
UniEuro
In 2001, the UK's largest electronics retailer, Dixons bought Italy's most profitable chain of domestic appliance stores, UniEuro from RhôneRhône
Rhone can refer to:* Rhone, one of the major rivers of Europe, running through Switzerland and France* Rhône Glacier, the source of the Rhone River and one of the primary contributors to Lake Geneva in the far eastern end of the canton of Valais in Switzerland...
and JP Morgan for €368 million to take controlling interest of nearly 96% of the company with an option to buy the remaining 4% for €30 million.
Other investments
- Coty, Inc.Coty, Inc.Coty, Inc. is the world's largest fragrance company, founded in 1904. It is also a beauty products manufacturer whose main businesses are fragrances , followed by color cosmetics , toiletries and skin care...
- Dufour YachtsDufour YachtsDufour Yachts is a French sailboat manufacturer which was founded in 1964 by designer Michael Dufour.-History:* Dufour 365 Grand Large* Dufour 375 Grand Large * Dufour 405 Grand Large* Dufour 425 Grand Large* Dufour 455 Grand Large...
ISB - Early Learning CentreEarly Learning CentreThe Early Learning Centre is a British chain of shops selling toys for very young children.-History:Originally set up as a mail order company in 1974 and was always based near Swindon; by 1980 it had ten shops; and it has grown to include 215 shops in the UK and over 80 in 19 other countries such...
- Go-Ahead GroupGo-Ahead GroupThe Go-Ahead Group plc is a rail and bus operating company that was created following the privatisation of the UK's train and bus industries. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.-Early history:...
- Rexair LLCRexair LLCRexair LLC is an American manufacturer of home cleaning systems and is currently based in Troy, Michigan. Rexair is predominately known for their production and marketing of vacuum cleaners....
Disclosure
Rhône is authorised and regulated by the Financial Services AuthorityFinancial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
(FSA) and the U.S Securities Exchange Commission (SEC). Rhône is a 'Selected Client' and 'Sponsor' to Sullivan & Cromwell
Sullivan & Cromwell
Sullivan & Cromwell LLP is an international law firm headquartered in New York. The firm has approximately 800 lawyers in 12 offices, located in financial centers in the United States, Asia, Australia and Europe. Sullivan & Cromwell was founded by Algernon Sydney Sullivan and William Nelson...
LLP.
External links
- Rhône Group (Company Website)
- Quiksilver, Inc. (Company Website)
- LWB (Company Website)
- Greek Yellow Pages (Company Website)
- UniEuro (Company Website)
- Arizona Chemicals (Company Website)
- Fraikin (Company Website)