SBD: Dalian Wanda Buys Ironman For $650M SBG: Infront Owner Wanda Looking To Grow SBG: Bayer Leverkusen Reaches Settlement SBG: Dalian Wanda Buys Ironman For $650M SBG: CSL To Become Largest Sports Company SBG: Paddy Power, Betfair Announce Merger SBG: Int'l TV Rights Auction Starts Strong SBG: Dortmund Boosts Turnover To $311M SBG: New Report On EPL Club Valuation SBG: Leeds Rhinos Profits More Than Double
Second round of bids for IMG due today
November 7, 2013 06:03 PM
A total of 10 prospective buyers sat through IMG management presentations in the last month, but it’s unclear how many of the interested buyers submitted bids today. Among the groups bidding for the company are KKR, a group led by CVC Capital Partners, and joint bids from Silver Lake and William Morris Endeavor, and from CAA and TPG Capital.
A spokesman at Abernathy MacGregor, a financial PR firm working on the IMG sale, declined to comment.
The bids, which come after management presentations and due diligence, will be reviewed by a top exec at Forstmann Little, the trustees of Ted Forstmann’s estate at the firm Akin Gump and the bankers working on the sale at Morgan Stanley and Evercore. They are expected to cut the list of 10 bidders to anywhere from two to six finalists.
IMG is expected to attract an all-cash offer of more than $2 billion. The company’s earnings before interest, tax, depreciation and amortization (EBITDA) increased from $146 million in 2011 to $175 million last year, and are projected to exceed $200 million this year, according to sources familiar with its financials.
Forstmann Little officially put IMG on the market in August. More than 35 potential buyers signed nondisclosure agreements and expressed interest in the company. Bankers collected bids from that group in late September.
Blackstone Group ran a similar, auction-style sale for AEG last year and hoped to fetch $8 billion for the company, but it pulled the company off the market after six months when it failed to find a bidder willing to pay the asking price. Forstmann Little had to do the same with 24 Hour Fitness when it tried to sell it earlier this year.
But interest in IMG has been high, and sources said Forstmann Little and the trustees at Akin Gump anticipate closing a deal for the company before the end of the year.