The Goldman Sachs Group, Inc.
) arm - Goldman Sachs Merchant Banking Division -- declared that
it has collaborated with Koch Equity Development LLC - a unit of
Koch Industries Inc. -- to acquire Flint Group from U.K.-based
private equity firm CVC Capital Partners Ltd. The deal is
expected to be closed by second half of 2014.
Though there is no official disclosure about the financial terms
and conditions of the deal, the acquisition price may settle over
€2.2 billion ($3 billion). The proposed investment will take
place through a new entity to be created by Koch Equity
Development and Goldman.
Luxembourg-based Flint Group, one of the major players in the
global market, is engaged in producing inks and other print
consumables including flexographic printing plates and image
transfer products and chemicals for the packaging and print media
industry. Flint Group has grown through meaningful mergers and
Goldman has a history of successful investments undertaken in
collaboration with other firms. Hence, we remain optimistic
about the collaboration of Goldman and Kansas based Koch
Industries, which is one of the largest privately owned companies
in the world.
Goldman is set to benefit in the long run as the latest move
comes as a part of its strategy to invest in major global
franchises and aid them to prosper organically as well as through
acquisitions. Further, Goldman believes that with an enhanced
capital level, Flint group has sufficient potential to gain in a
growing printed packaging market, apart from its interests in
print media industry.
Notably, both Goldman and Koch Industries bank upon the strong
management team of Flint Group that has played a pivotal role in
driving Flint Group as a leading global market player.
As core operations of financial institutions are struggling to
earn decent revenues amid a still low interest rate environment,
firms like Goldman are continuously exploring opportunities to
drive earnings from alternative revenue sources. We believe that
Goldman is poised to benefit from the proposed deal owing to the
With the economy gradually reviving from the financial meltdown
and regulators' continuous efforts in establishing market
stability, the private equity investments continue to roll in a
favorable capital market. We look forward to Goldman's increased
involvement in such deals that will definitely impart positive
vibes to investors.
Goldman currently carries a Zacks Rank #3 (Hold).
Investment Technology Group Inc.
BGC Partners, Inc.
) are better-ranked stocks. While Investment Technology holds a
Zacks Rank #1 (Strong Buy), both E*TRADE Financial and BGC
Partners carry a Zacks Rank #2 (Buy).
BGC PARTNRS INC (BGCP): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
INVEST TECH-NEW (ITG): Free Stock Analysis
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