Transactions
& Case Studies

Displaying: Mergers & Acquisitions

July 2015


Undisclosed

Capital Raise
Exclusive Financial Advisor and Placement Agent to Extraction Oil & Gas on its $850 million Capital Raise

On May 29, 2014, Extraction Oil & Gas, LLC (“Extraction”), a Denver-based energy company focused on the exploration and production of oil and gas reserves in the Rocky Mountains, completed a $230 million HoldCo loan and $230 million of common equity units. In addition to this financing, Moelis & Company also secured commitments for Extraction from the same investor group for an additional $425 million of debt and equity financing. The debt and equity financing comes from a syndicate of top tier institutional investors including mutual funds, alternative investment managers, pension funds, endowments and funds-of-funds. Both the debt and equity financings were significantly oversubscribed, resulting in attractive terms for Extraction. This transaction demonstrates Moelis & Company’s ability to seamlessly execute a complex joint debt-and-equity capital markets transaction to meet the needs of our clients. Moelis & Company acted as exclusive financial advisor and placement agent to Extraction on the financing transactions.

March 2015


$3.5 billion

Acquisition of Economic Zones World FZE from Port and Free Zone World FZE
Financial Advisor to DP World Limited on its $3.5 billion Acquisition of Economic Zones World

In March, 2015, DP World Limited (“DP World”) successfully completed its acquisition of Economic Zones World FZE (“EZW”) from Port and Free Zones World FZE (“PFZW”) for a total cash consideration of $2.6 billion (subject to certain adjustments), in addition to the assumption of net debt ($859 million as of June 30, 2014). Moelis & Company served as financial advisor to DP World and led all aspects of the transaction from inception to closing.

This transaction was consistent with DP World’s strategy of providing port-centric integrated logistics solutions at key gateway locations. DP World is one of the leading marine terminal operators in the world and the Jebel Ali port is its flagship port in the Middle East. EZW’s primary business unit, the Jebel Ali Free Zone FZE (“JAFZ”), is a 57 square kilometer modern commercial and industrial logistics park that is located adjacent to Jebel Ali port and serves as an integral component of the supply chain for DP World’s customers at Jebel Ali port.

Moelis & Company designed a tailored due diligence and negotiations process for DP World, in order to maintain confidentiality and limit press leaks. As the acquisition constituted a Related Party and Class 1 transaction for the purposes of UK Listing Rules, Moelis & Company conducted a comprehensive evaluation of EZW to develop a view on valuation, draft a shareholder circular and obtain the support of DP World’s independent directors. Moelis & Company was also intimately engaged in key negotiations with the seller and was instrumental in achieving a successful outcome for its client.

DP World’s acquisition was the largest M&A deal involving a Middle Eastern target in 2014-2015 and had compelling strategic, operational and financial benefits for DP World. It created the leading port and free zone in the Middle East, enhanced DP World’s competitive advantage by strengthening Jebel Ali port’s integrated product offering and provided an opportunity to control and improve investment levels at JAFZ. The acquisition was also expected to enhance earnings by more than 15 percent and generate greater than a 7 percent return on capital employed in the first full financial year following completion.

February 2015


$1.2 billion

Sale of EMPAQUE to Crown Holdings, Inc.
Exclusive Financial Advisor to Heineken N.V. on the $1.2 billion sale of its Mexican packaging business, EMPAQUE, to Crown Holdings

On February 18, 2015, Heineken N.V. (“Heineken”) completed the sale of its Mexican packaging business EMPAQUE – a leading Mexican manufacturer of aluminum cans and ends, bottle caps and glass bottles – to Crown Holdings Inc. (“Crown”). Moelis & Company acted as exclusive financial advisor to Heineken in the multifaceted, cross-border transaction.

The successful execution of this complex and competitive sale involved a dual-track that allowed Heineken to maintain the option of a “sale of parts” or a “sale of whole” process. In addition, Moelis & Company helped negotiate a strategic, long-term supply contract between the client and the buyer that fulfilled the needs of multiple stakeholders within the Heineken organization. Divesting the EMPAQUE packaging operations ultimately allowed Heineken to focus its resources fully on brewing, marketing and selling its world class portfolio of beer brands in Mexico, and provided additional financial flexibility to invest in its core operations.

Moelis & Company helped Heineken achieve a premium valuation multiple relative to comparable metal and glass packaging transactions globally. Following the divestment, EMPAQUE remains a key strategic supplier to Cuauhtémoc Moctezuma, Heineken’s wholly owned subsidiary in Mexico, through long-term supply contracts.

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


$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.