Transactions
& Case Studies

April 2014


£320 million

Initial Public Offering
Exclusive Financial Advisor to Polypipe Group on its £320 million Initial Public Offering

On April 11, 2014, Polypipe Group plc (“Polypipe”), the largest manufacturer by revenue in the United Kingdom of plastic pipe systems for the residential, commercial, civils and infrastructure sectors, successfully completed its initial public offering at a price of £2.45 per share and began trading on the London Stock Exchange. Proceeds of £320 million were raised for existing shareholders. Moelis & Company was mandated by the company and its private equity backer Cavendish Square Partners to evaluate strategic alternatives. Following an extensive review of all sale and timing alternatives, Moelis & Company advised the company to consider an IPO and to delay any exit until 2014 in order to maximize value. This advice resulted in a valuation significantly above the company’s initial expectations. The transaction represents the largest IPO in the UK construction & building products sector in the last 15 years and the second largest ever.

Given the momentum in the share price, with the stock trading meaningfully above the IPO price, Cavendish Square Partners decided to reduce its holding in Polypipe via a £50 million accelerated bookbuild offering. Moelis & Company advised Cavendish Square Partners on the transaction, which was completed on December 11, 2014.

February 2014


$15.7 billion

Sale to Thermo Fischer Scientific Inc.
Financial Advisor to Life Technologies on its $15.7 billion sale to Thermo Fisher

On April 15, 2013, Life Technologies Corporation (“Life Technologies”), a leading life sciences company, agreed to be acquired by Thermo Fisher Scientific Inc. (“Thermo Fisher”), the world leader in serving science, for approximately $15.7 billion. The purchase price reflects a 38% premium over the closing price immediately prior to the news reports that the company was exploring a potential sale. The combination of Life Technologies and Thermo Fisher created an unrivaled industry leader and enhanced all three elements of Thermo Fisher’s growth strategy: technological innovation, a unique customer value proposition and expansion in emerging markets. The transaction represents the largest global healthcare M&A deal in 2013.

Moelis & Company provided comprehensive M&A strategic advice including bid strategy, bid timing, bidder consortium formation, negotiation and valuation, and created a highly customized sale process strategy to maximize value for Life Technologies shareholders. The transaction highlights Moelis & Company’s commitment to fostering long-term client relationships, representing our sixth M&A transaction with Life Technologies since 2007, and the Moelis team’s twelfth transaction with Life Technologies and its predecessor since 2000. The transaction successfully closed in February 2014.

January 2014


€3.1 billion

Acquisition of Grohe Group S.a.r.l.
Financial Advisor to LIXIL on its €3.1 billion acquisition of Grohe Group

On September 26, 2013, LIXIL Corporation (“LIXIL”) and Development Bank of Japan (“DBJ”) agreed to acquire an 87.5% equity interest in Grohe Group S.a.r.l, Europe’s largest and the world’s leading single-brand manufacturer of premium sanitary fittings, from private equity funds managed by TPG Capital and DLJ Merchant Banking Partners. The transaction represents a significant step in the successful implementation of LIXIL’s strategy to become the global leader in the building materials and housing equipment industry. With an implied Enterprise Value of €3.1 billion ($4.1 billion), this is the largest ever German investment by a Japanese company and the largest cross-border acquisition by a Japanese corporate in 2013. The combined sanitary businesses of both groups generate more than €4 billion of annual revenue, making it the largest player in its industry. In the three months following announcement, LIXIL’s share price significantly outperformed both its peers and the markets (+33% by December 17, 2013). The transaction was successfully completed in January 2014.

Moelis & Company and SMBC Nikko acted as financial advisors to LIXIL. Moelis & Company provided effective tactical advice in a very competitive and complex cross–border dual track IPO and M&A process driven by private equity sellers. The off-balance sheet acquisition structure featuring a non-recourse loan from three Japanese banks (including SMBC) was arranged by SMBC Nikko and enables LIXIL to act on this strategic opportunity while maintaining its current leverage level and the financial flexibility to pursue other strategic opportunities as they arise. This transaction represents one of the largest joint Moelis & Company/SMBC Nikko mandates since the establishment of our alliance in March 2011.

December 2013


£1.5 billion

Recapitalizaton
Exclusive Financial Advisor to the Ad Hoc Committee of Lower Tier 2 Noteholders of The Co-operative Bank on its £1.5 billion recapitalization

On December 20, 2013, Co-operative Group Limited (the “Group”) and The Co-operative Bank p.l.c. (the “Bank”) completed the revised recapitalization plan for the Bank. The plan was announced on November 4, 2013 and included a Liability Management Exercise (the “LME”) structured for the different classes of bondholders and preference shareholders, a capital injection from the Group of £333 million, and a capital raise of £125 million underwritten by the Lower Tier 2 Noteholders (the “LT2 Group”). The plan enables the Bank to continue its unique mission as a UK bank committed to the values and ethics of the co-operative movement. The LME received overwhelming support from bondholders with 97.6% of lower tier 2 security holders and 99.9% of tier 1 and upper tier 2 security holders voting in favor. The recapitalization represents the first successful consensual creditor bank bail-in in the United Kingdom, without taxpayer support.

December 2013


$29.6 billion Chapter 11 Re- organization; $17.0 billion merger with US Airways Group

Chapter 11 Reorganization and merger with US Airways Group
Exclusive Investment Banker to the Official Committee of Unsecured Creditors of AMR Corporation on its $29.6 billion Chapter 11 Reorganization and $17.0 billion merger with US Airways Group

On December 9, 2013, AMR Corporation (“AMR”), the parent company of American Airlines Inc., successfully completed its Chapter 11 Reorganization. As part of the reorganization, AMR also completed its $17.0 billion merger with US Airways Group (“US Airways”). Operating under the American brand, the combined American – US Airways (“American Airlines Group”) created the world’s largest airline.

AMR filed for Chapter 11 bankruptcy protection on November 29, 2011, with reported assets and liabilities of $24.7 and $29.6 billion, respectively. Shortly thereafter, the Official Committee of Unsecured Creditors (the “UCC”) was formed by a highly diverse group of nine creditor constituencies. The UCC quickly became an influential factor in the reorganization and this group was seen as a pivotal piece to any plan of action. The UCC advocated for a broad review of strategic options, including possible merger opportunities. Moelis & Company was instrumental in designing and creating a process that allowed for engagement between AMR and US Airways despite initial reluctance on the part of AMR. Over the course of the intensive US Airways – AMR diligence process, Moelis & Company evaluated the pro forma business plan, assessed the need for DIP and exit financing, and helped drive parties to a mutually agreeable expectation of synergies and negotiated relative deal economics, while continually working with advisors to resolve complex social and employee issues. On February 14, 2013, AMR and US Airways announced that their respective boards of directors had unanimously approved a definitive merger agreement between the two companies.

The merger delivered far superior returns to creditors and investors as compared to the company’s initial plan for a standalone option, and resulted in par plus accrued recoveries to $29.6 billion in creditor claims. Shareholder value in excess of $10 billion was created, versus the equity market cap of approximately $85 million at the time of the Chapter 11 filing. Moelis & Company represented a driving force in the initial consideration and ultimate consummation of the merger, building consensus amongst various parties to consider and pursue a single, value maximizing plan of action. This transaction demonstrates Moelis & Company’s ability to deliver superior results for our clients; the reorganization and merger achieved full recoveries for unsecured creditors, significant recoveries for shareholders and the unique occurrence of pre-petition convertible notes converting into pre-petition equity.

November 2013


$10.7 billion

Sale to Intercontinental Exchange, Inc.
Financial Advisor to NYSE Euronext on its $10.7 billion sale to IntercontinentalExchange

On December 20, 2012, IntercontinentalExchange, Inc. (“ICE”) agreed to acquire NYSE Euronext, Inc. (“NYSE Euronext”), the preeminent global equity, equity options and fixed income derivatives market operator, in a stock and cash transaction. The transaction value of $33.12 per share represented a 37.7% premium over NYSE Euronext’s closing share price on December 19, 2012. Moelis & Company acted as financial advisor to NYSE Euronext. The transaction represents Moelis & Company’s ability to successfully execute large, public transactions. The transaction successfully closed in November 2013.