KKR to Buy Control Of Spalding & Evenflo
April 28, 2011
Kohlberg Kravis Roberts & Co. agreed to acquire majority control of Spalding & Evenflo Cos. from the Cisneros Group of Cos., beating out numerous other bidders. Terms for the privately held company weren't disclosed, but people on Wall Street said KKR probably paid between $950 million and $1 billion, including $370 million or so in debt on the company's books. The size of the stake that KKR agreed to purchase is unclear, but people on Wall Street believe KKR bought the vast majority of the company's equity. A KKR spokeswoman declined to comment. Spalding & Evenflow is expected to have total branded-product sales of $1 billion in its current fiscal year. Spalding, based in Chicopee, Mass., makes sports products, such as Top Flite golf products. Evenflo, based in Piqua, Ohio, manufactures infant and juvenile products, such as baby bottles. KKR won a hotly competitive auction for the company, people on Wall Street say. Many buyout firms, including AEA Investors, were believed to be interested in acquiring the company and made initial bids. In addition, a number of strategic buyers were interested as well, people tracking the bidding say. In April, the Cisneros Group hired Donaldson Lufkin & Jenrette and Morgan Stanley & Co. to sell all or part of the company. Merrill Lynch & Co. advised KKR. ``With this transaction, we are able to realize some of the significant value we have created at Spalding & Evenflo so that we may accelerate the expansion of our investments in world-wide media and telecommunications,'' said Hai Latham, chairman and chief executive of Cisneros Group. KKR's portfolio of businesses has little in the way of consumer products, except for battery maker Duracell International Inc. and Borden Inc.. Recently, it has purchased insurance assets and newspapers in the United Kingdom. It recently announced an agreement to sell American Re Corp. for $3.3 billion.
