On a day the stock market lost 2,000 points and entered bear territory PE News reported:
The Carlyle Group has sold exocad, a German dental software maker, to Align Technology, a US-based designer and manufacturer of orthodontist products, for €376m in cash.Carlyle extracted huge profits from exocad, likely at a relatively full valuation. Align had partnered with exocad and the companies intergrated their software.
The firm generated four times gross return multiple on the exit, a person familiar with the matter said. The transaction is expected to close in the second quarter of the year, Align said.
Also today, Carlyle announced the purchase of retailer Dr. Martens at a deep discount to prior possible valuations. Retail Gazette reported:
Dr Martens is reportedly set to be acquired by US private equity firm Carlyle Group LP for £300 million.
Carlyle is currently the interested party in talks with Dr Martens to acquire it after rival firm KKR dropped out of a potential deal, the Mail on Sunday reported.
The British footwear and clothing retailer is currently owned by UK-based investment firm Permira, which bought it in 2014 for around £300 million.
Dr Martens has been in talks with Carlyle since November, when it emerged that a deal could potentially value the retailer at £1 billion.
Carlyle will sell whatever isn't nailed down as credit markets implode. It will put its dry powder to work by buying stressed companies. The deal can occur via a buyout or through steeply discounted debt. The greed and leverage boys don't care. Ask the Brintons family.
Update 3-10-20: Bloomberg reported private equity got hammered in yesterday's market meltdown, in part due to energy holdings. The story talked about deteriorating energy credit/debt markets and how they can spark a wider credit crisis.
Update 1-11-21: Carlyle failed to close on Dr. Martens, which will go public on the London Stock Exchange
