Blackstone CEO Stephen Schwarzman recently expressed frustration with the private equity giant’s flat stock price, but he still has plenty to be happy about.
The firm has churned out deals at a frenzied pace of late, with 39 completed transactions under its belt so far this year. That figure trails only KKR’s 45 completed deals, per the PitchBook Platform.
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This week alone has brought news of several big transactions for the PE giant.
On the buyout front, Blackstone has agreed to purchase International Market Centers from Bain Capital and Oaktree Capital Management. The two other PE firms had previously backed the provider of showroom space for the home furnishing sector with a $1 billion investment in 2011. Fireside Investments is expected to team up with Blackstone in the IMC deal.
Blackstone is also shedding a small part of its portfolio. The firm is moving forward with its previously reported deal to sell outdoor brand Jack Wolfskin to company lenders including Bain Capital Credit, Bayside Capital and CQS. The move will trim Wolfskin’s debt load from €365 million to €110 million. Blackstone acquired the business for €700 million in 2011 before it began struggling with the rise of ecommerce websites and changing consumer habits.
Finally, Blackstone is expected to purchase a minority stake—less than 15%—in fellow private equity firm Leonard Green, according to a Bloomberg report. The firm will reportedly tap Blackstone Strategic Holdings, which closed on $3.3 billion in 2014, for the investment. The fund has already taken minority positions in a handful of hedge funds as part of its strategy to take stakes in alternative asset managers.
Don't expect Blackstone's dealmaking to slow down any time soon. Earlier this year, the firm received a $20 billion investment from Saudi Arabia for an infrastructure fund that could reach $100 billion. Last month, the firm made another deal with a national government when it agreed to sell logistics company Logicor to China Investment Corporation for a reported $13.8 billion.
Interested in what else the firm has been up to? Check out our Blackstone coverage.
Article by Adam Lewis, PitchBook
