Consortium Including Berkshire Hathaway Drops Multi-Billion-Dollar Bid
This is surprising, since Warren Buffett said at the Berkshire AGM that they were not looking to partner on any deals. Market participants pegged the deal in the $4 to $5.5 billion range.
General Motors’ Allison Transmission business is said to have received its highest bid from the private equity consortium consisting of Carlyle Group and Onex Corporation, according to sources tracking the auction.
...Various private equity consortia were in the running for Allison, both sources said. A tandem of Greenbriar Equity, Clayton Dubilier & Rice, and Berkshire Hathaway dropped out of the bidding, leaving the winners as Carlyle and Onex, they said.
...Allison’s price-tag, according to the banker, would likely surpass 10x EBITDA. This news service previously reported that Allison’s projected 2007 EBITDA was roughly USD 550m, and that a source without direct knowledge of Carlyle’s bid said it was his understanding the firm had bid around 10x EBITDA.
However, a market investor said he heard the unit might get sold for USD 4bn implying a 7.2X valuation on its projected FY07 EBITDA of USD 550m.Direct Link
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