KKR Asset Management (KAM),
Kohlberg Kravis Roberts & Co. L.P.
) leading sub-investment grade manager, recently signed an
agreement to acquire Winoa Group from LBO France. The value of
the deal has not been divulged and it is subject to regulatory
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The aforementioned deal was financed by KAM Special Situations'
investment funds. Further, it involves a recapitalization program
wherein Kohlberg Kravis will infuse Winoa with fresh capital,
thereby relieving its debt burden to a large extent.
Winoa, a global name in the field of steel abrasion and diamond
cutting, was acquired by LBO France - the oldest private equity
firm in France - in 2005. The company's performance, however, has
suffered lately due to the eurozone crisis. The capital structure
was hit hard and the company resorted to a huge debt.
The takeover would give Winoa the necessary support in the form
of enhanced financials, increased access to funds and better
management. Kohlberg Kravis, on the other hand, would be able to
capitalize on Winoa's sector expertise to boost profitability in
the long run.
Kohlberg Kravis, an investment manager, is keen on acquiring
distressed properties with potential for growth. Given its sound
liquidity and balance sheet position, we expect the company to
drive further inorganic growth in the quarters ahead.
Currently, Kohlberg Kravis carries a Zacks Rank #2 (Buy). Some
better-ranked investment managers include
GAMCO Investors, Inc.
Waddell & Reed Financial, Inc.
Affiliated Managers Group Inc.
). While GAMCO Investors and Waddell & Reed have a Zacks Rank
#1 (Strong Buy), Affiliated Managers holds the same Zacks Rank as