Axalta Coating Systems, a global manufacturer of coatings for the auto and transportation industry, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering, though the deal size is likely a placeholder. We estimate the company could raise $1 billion.
Carlyle bought Axalta from DuPont in February 2013 for $4.9 billion. The company's end markets for its high-performance liquid and powder coatings are divided into refinishing (body shops; 42% of sales), industrial (insulation, oil and gas pipes; 17%), light vehicle (automotive; 32%) and commercial vehicle (Bus, rail; 9%). Axalta claims to have the #1 global market position in the refinishing market. Carlyle plans to sell shares on the IPO, and the company's proceeds will be used to pay down debt.
2014 has seen two auto-related IPOs - TrueCar (TRUE, up 89% from the IPO price) and Mobileye (MBLY, up 48%). Another LBO'd auto components retailer, ATD (ATD.RC), filed in June for an IPO that could raise $500 million.
The Philadelphia, PA-based company was founded in 1866 and booked $4.3 billion in sales for the 12 months ended June 30, 2014. Axalta has not yet selected an exchange or a ticker. Citi, Goldman Sachs, Deutsche Bank, J.P. Morgan, BofA Merrill Lynch, Barclays, Credit Suisse and Morgan Stanley are the joint bookrunners on the deal. No pricing terms were disclosed.
Hydra Industries Acquisition, a blank check company formed by A. Lorne Weil and sponsored by Macquarie, filed and set terms for an initial public offering on Tuesday. The New York, NY-based company plans to raise up to $100 million by offering 10 million units at $10 per unit. At that price, the company would command a fully diluted market value of $125 million.
A. Lorne Weil previously served as Chairman and CEO of Scientific Games Corporation (NASDAQ: SMGS) for about 20 years. He also served as sponsor and Chairman of Andina Acquisition Corp, a blank check company that raised $40 million in a 2012 IPO and later acquired Tecnoglass (NASDAQ: TGLS).
Another blank check company sponsored by Macquarie, Terrapin 3 Acquisition (TRTLU), raised $185 million in its July IPO.
Hydra was formed in 2014 and plans to list on the NASDAQ under the symbol HDRAU. UBS Investment Bank is the sole bookrunner on the deal. No pricing date was disclosed.
Southeastern Grocers, which operates about 825 grocery stores in the Southeast under the Winn-Dixie and BI-LO brands, withdrew its plans for an initial public offering on Tuesday. The company originally filed for a $500 million IPO in September 2013.
Southeastern Grocers serves key metropolitan areas in Florida, Georgia, Alabama, Louisiana, Mississippi, South Carolina, North Carolina and Tennessee and was the sixth largest conventional supermarket operator in the US based on number of stores at the time of its filing (685). The company's private equity backer, Lone Star Funds (100% stake), had begun a major middle-market grocery acquisition spree when it added Winn-Dixie to its BI-LO portfolio in 2012 for $560 million. In February 2014, it overcame a challenge from the FTC and was allowed to purchase 154 stores from Belgium-based Delhaize for $265 million.
Another LBO'd grocer, Smart and Final Stores (SFS; controlled by early May IPO Ares Management (ARES)), filed in June for an IPO that could raise $300 million. Initial public offerings from leveraged buyouts have generally underperformed in 2014.
The Jacksonville, FL-based company was founded in 1961 and booked $10.1 billion in sales for the 12 months ended September 30, 2013. It had planned to list on the NASDAQ under the symbol SEG. Citi, Credit Suisse, Deutsche Bank, William Blair and Wells Fargo Securities were set to be the joint bookrunners on the deal.
Medley Management, an alternative asset manager with $3.3 billion of AUM, filed on Monday with the SEC to raise up to $150 million in an initial public offering.
The company launched Medley Capital (NYSE: MCC), its first permanent capital vehicle, in 2011 as a business development company. It also manages Sierra Income Corporation, which is offered on a continuous basis to investors over 110 broker dealers representing 27,800 RIAs. At the end of June, it has $3.3 billion of AUM, up from $2.0 billion one year ago.
The New York, NY-based company, which was founded in 2006 and booked $60 million in total revenue for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol MDLY. Medley Management initially filed confidentially on June 23, 2014. Goldman Sachs and Credit Suisse are the joint bookrunners on the deal. No pricing terms were disclosed.