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From:

"Dan Primack"

Name:

Dan Primack

Email Address:

Dan_Primack@fortune.chtah.com

Subject:

Term Sheet -- Monday, December 13

Date:

13-12-2010 15:02:26
Message

Fortune Finance Street Sweep Term Sheet Economics Tech Wall Street Washington

The Term Sheet by Dan Primack

Monday -- December 13, 2010
Email Dan | Follow Dan on Twitter | Subscribe

Random Ramblings
The bank was a financial partner with a private equity group that already has met Cuomos wrath. Among
that groups dealings with New York Common Retirement Fund was a co-investment vehicle that supported
a number of big-name leveraged buyouts between 2005 and 2007. A former partner with that group
currently is trying to sell his holdings on the secondary market, and Fortune has acquired a copy of the
confidential offering doc.
That means weve got a bunch of carrying values (through 12/31/09).
In aggregate, hes looking to sell the portfolio for just 26 cents on the dollar. The holdings include:

Advanstar Communications (VSS, Citi, NY Life Capital): -57% IRR

Claires (Apollo, Tri-Artisan Capital): -12.8% IRR

Growing Family (Falconhead Capital Partners): -35.4% IRR

TMP Worldwide (VSS): 105.4% IRR

Entertainment Cruises (ICV Capital): 18.7% IRR
U.S. Foodservice (CD&R): Being carried at cost
Simeus Foods (Levine Leichtman Captial): Being carried at cost
Hertz (publicly-traded, CD&R/Carlyle): 129.5% IRR
Javelin Pharmaceuticals (publicly-traded, Goldman Sachs, NGN Biopharma Ventures): -12.6% IRR

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Some of you might be able to figure out the mystery seller. For the rest, full story coming soon
*** On Friday I did a short post on the incredible influx of China-based, VC-backed IPOs on U.S.
exchanges. Thomson Reuters data shows that there have been 21 such issuers so far in 2010, raising over
$2.2 billion. That's still well short of the 42 U.S.-based, VC-backed companies that have raised nearly $3.7
billion, but the gap is narrowing.
Between 2002 and 2009, there were just a total of 22 such offerings, compared to 329 for U.S. companies.
This includes a solitary IPO last year for a VC-backed Chinese company, and none in 2008. Read more
here.
*** Personnel note: Not sure when this happened, but it seems that Ben Garrick has left Platinum Equity,
where he had helped to lead the firms special situations group. He previously had spent four years as a
principal with Tennenbaum Capital Partners.
*** Housekeeping: You can now drop me an anonymous tip, by going here.

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Nina Easton: What happens when the jobless give up?

Colin Barr: Can the euro survive its 'hair shirt'?

JP Mangalindan: Facebook's narcissist effect

Dan Primack: The reconditioning of Atkins Nutritionals

The Big Deal

Peter Nachtwey has stepped down as chief financial officer of The Carlyle Group. He has not yet
disclosed his future plans. The role will be filled, on an interim basis, by Glenn Youngkin.
Some news reports are suggesting that this move is another step in Carlyle's march toward an IPO. Seems
counterintuitive to me, since Nachtwey's original hire was to be a CFO with experience taking a private
equity firm public (he had helped out on Blackstone's offering). As such, wouldn't this possibly mean that
Carlyle actually was moving slower than Nachtwey had expected? Or perhaps just that he got a better offer
elsewhere (Carlyle spokesman has implied he had another gig, but no details yet)?

VC Deals
Semprus BioSciences, a Cambridge, Mass.-based developer of products to treat infection- and thrombuscomplication costs from vascular access products, has raised $18 million in Series B funding. S.R. One
and Foundation Medical Partners co-led the round, and were joined by return backers 5AM Ventures and
Pangaea Ventures. The company previously raised $10.5 million. www.semprusbio.com
QuantaLife Inc., a Pleasanton, Calif.-based developer of a technology that quantifies DNA molecules, has
raised $17.2 million in Series B funding. Paladin Capital Group led the round, and was joined by Merieux
Developpement and Vital Financial. www.quantalife.com
Media6Degrees, a New York-based provider of behavioral advertising technology, has raised $17 million
in Series B funding. Menlo Ventures led the round, and was joined by return backers U.S. Venture

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Partners and Venrock. www.media6degrees.com

AltoBeam, a Beijing-based developer of DTV demodulators, has raised $6 million in Series C funding. U.S.
Venture Partners led the round, and was joined by return backers DFJ DragonFund, Tano Capital, and
PYJ-Dynasty Venture Fund. www.altobeam.com

Hivest.com, developer of a cloud-based application development platform, has raised $500,000

from Russian VC firm Runa Capital. www.hivext.com

Private Equity Deals

Alliance Boots, a 3i Group has agreed to acquire OneMed Group Oy, a provider of medical supplies to
the Northern European market, from CapMan. No financial terms were disclosed, but Reuters cites a
source who puts the enterprise value at approximately 300 million. www.3i.com
Apollo Management, The Blackstone Group and KKR are among several private equity firms interested
in acquiring Beckman Coulter Inc. (NYSE: BEC), according to Reuters. Bain Capital and TPG Capital also
could be suitors. Beckman is a maker of scientific lab equipment with a market cap of nearly $4 billion. It is
being advised by Goldman Sachs. www.beckmancoulter.com
Bain Capital has agreed to acquire Dutch chemicals company IMCD from AAC Capital. Press reports put
the enterprise value at around 650 million. www.baincapital.com
The Carlyle Group has acquired a majority stake in Fairfield Partnership, a UK owner of housing
developments in Hertfordshire and Cambridgeshire. The deal covers around 1,400 acres and 10.500
homes. Carlyle has paid an initial 17 million, and has committed to invest an additional 23 million.
www.carlyle.com
Charlesbank Capital Partners has acquired OnCore Manufacturing Services, a Springfield, Mass.based provider of electronics manufacturing services. No financial terms were disclosed.
www.oncorems.com
Kohlberg & Co. has acquired Phillips Plastics Corp., a Hudson, Wis.-based manufacturer of injectionmolded plastics. No financial terms were disclosed. www.kohlberg.com

PE-backed IPOs
There is no IPO news today.

Exits

Darwin Private Equity has agreed to sell Maxinutrition, a UK-based maker of protein-enhanced
nutritional products, to GlaxoSmithKline. The deal is valued at approximately 162 million in cash
(including repayment of existing debt). www.gsk.com
Endologix Inc. (Nasdaq: ELGX) has completed its acquisition of Nellix Inc., a Palo Alto, Calif.-based
developer of minimally-invasive treatments for aortic disorders. The deal was valued at up to $54 million,
including a $15 million up-front stock payment. As part of the deal, Endologix received a $15 million
investment from Essex Woodlands Health Ventures, the majority shareholder of Nellix. www.endologix.com

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Reckitt Benckiser Group PLC has agreed to acquire Paras Pharmaceuticals Ltd., an Indian maker of
personal care products. The deal is valued at approximately $725 million. Sellers include Actis (63%
ownership strake), Sequoia Capital and the founding Patel family. www.rb.com

Other Deals
Dubai Aerospace Enterprise has filed Deutsche Bank to help sell aviation services group StandardAero,
according to Reuters. DAE bought and merged StandardAero and Landmark Aviation from The Carlyle
Group in 2008 for $1.7 billion. It later sold its airport services unit for $435 million. www.standardaero.com
Dell Inc. (Nasdaq: DELL) has agreed to acquire data storage company Compellent Technologies Inc.
(NYSE: CML) for approximately $900 million (including $80m in cash on hand). The $27.75 per share offer
represents a 3% discount to Fridays closing price for Cmpellent shares, but more than a 40% bump since
press reports of a possible deal began circulating in October.
GE said that it will offer to acquire Wellstream Holdings PLC (LSE: WSM), a maker of flexible pipeline
products for oil and gas transportation, for approximately $1.3 billion. www.ge.com
Thermo Fisher Scientific (NYSE: TMO) has agreed to acquire Dionex (Nasdaq: DNEX), a sunnyvale,
Calif.-based maker of ion chromatography systems, for approximately $2.1 billion. The $118.5 per share
offer represents a 21% premium to Fridays closing price for Dionex stock.
Lentuo International Inc., a Beijing-based automobile retailer, raised around $52 million in its IPO. The
company priced 6.5 million American depository shares at $8 per share ($8-$10 range). It will trade on the
NYSE under ticker symbol LAS, while Cowen and Co. and HSBC Securities served as co-lead
underwriters.

Firms & Funds

No firm/fund news today.

Moving In, Up and On

Palladium Equity Partners has promoted Luis Zaldivar and Erik Scott from principal to managing
director, and Rafael Ortiz from vice president to principal. It also promoted Yue Guan, Justin Green and
Adam Shebitz promoted from associates to vice presidents, and Leon Brujis from analyst to associate.
www.palladiumequity.com
Technology Crossover Ventures has promoted David Yuan from principal to general partner. He works
out of the firms Palo Alto headquarters, and serves on the boards of ExactTarget, LogicLab, Merkle, and
Seismic Micro-Technology. In other TCV news, the firm has promoted Nari Ansari and Kapil
Venkatachalam from senior associates to vice presidents. www.tcv.com

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