Tuesday, February 14, 2012

Carlyle to Cash-In on Talaris

The Carlyle Group purchased De La Rue's Cash Systems division in June 2008 for £360 million and renamed it Talaris.  Carlyle will pull a double by selling Talaris for £650 million to Glory of Japan.  That doesn't count management fees or special dividends/distributions.  How much cash did Carlyle pull out of Talaris prior to monetizing the company?

De La Rue employed 2.300 in the division Carlyle purchased.  Carlyle's Talaris cut jobs to 2,100 employees in 2009. Today, employment sits at "over 1,900."

While Carlyle investors pull a double or better, how did employees, roughly 17% fewer in number, do under Talaris?  Did Carlyle dump the pension, like it did with RAC and Brintons?  Did it reduce or eliminate any 401(k) matches or their foreign equivalents?  How did it stooge employees in growing the bottom line?

Earnings have increased by more than 40% under Carlyle’s ownership.

Whose hands will garner Talaris' final cash dispensing?  For Carlyle, it's a PEU world.  (PEU stands for private equity underwriter.)

Update 7-3-12:  The EU approved Glory's buyout of Talaris.