Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Lehman Details Hunter LBO
Dec 12, 2003
 Printable format
 Email this Article
 Search

Lehman Brothers Merchant Banking Group disclosed this week that its LBO of ceiling-fan maker Hunter Fan Co., which closed Dec. 3, was valued at close to $250 million, or about 6.75 times Hunter’s trailing Ebitda.

Lehman Brothers Merchant Banking principal David Wilmott, who spearheaded the deal, said that the financing included a $95 million term loan and a $40 million revolving credit facility furnished by a bank syndicate led by J.P. Morgan Chase & Co. The revolver, which remained untapped, will be used to finance add-on acquisitions and for working capital.

In addition, Oaktree Capital Management LLC and Northwestern Mutual Life Insurance Co. supplied $50 million of mezzanine debt and purchased a 20% common equity stake in Hunter.

Lehman invested roughly $80 million in the common for about an 80 percent stake.

Mr. Wilmott portrayed Memphis-based Hunter as a high-margin generator of cash with promising growth prospects.

"The ceiling-fan business is very stable," Mr. Wilmott said. "But Hunter also has moved into newer products, such as air purifiers, humidifiers and programmable thermostats. That is the growth engine, and we think we can help management double the size of that part of the business [throughout] the next several years."

Hunter, the largest independent maker of branded fans in the country, sells its wares through Home Depot Inc. and Lowe’s Cos. outlets and other home-improvement retailers. The company owns no manufacturing plants, opting instead to outsource all production to Asia.

Lehman bought Hunter from Stonebridge Partners and Weston Presidio Capital, the private equity shops that acquired the company from investor Howard H. Leach in late 2001. Leach now is the U.S. ambassador to France. (The Deal.com)

Back to Daily News

 

Daily News

...........................................................

Oct 23, 2014: Whirlpool Corporation to Showcase Resource-Efficient Technologies at Greenbuild

Oct 23, 2014: CWIEME Chicago exhibition had record attendees

Oct 22, 2014: Middleby to add U-Line to residential appliance business

Oct 22, 2014: iRobot's 3Q exceeds expectations, driven by Home Robots growth

Oct 22, 2014: Whirlpool Canada named 2014 Energy Star Manufacturer of the Year

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows