Exclusive: CVC nears a deal to buy AlixPartners: sources

Thu Apr 19, 2012 6:41pm EDT
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By Soyoung Kim and Greg Roumeliotis

NEW YORK (Reuters) - Private equity firm CVC Capital Partners CVC.UL is nearing a deal to buy restructuring and consulting firm AlixPartners for more than $1 billion, according to several people familiar with the matter.

CVC has recently beaten out other buyout firms, including Madison Dearborn Partners and Providence Equity Partners, in the race to buy AlixPartners from private equity owner Hellman & Friedman, the sources said.

A deal for AlixPartners could be announced as early as Monday, one of the sources said.

Also, other sources familiar with the matter told Reuters last week that Hellman & Friedman is in the advanced stage of shopping AlixPartners and being advised by Bank of America Merrill Lynch (BAC.N: Quote) and Goldman Sachs Group (GS.N: Quote) on the process.

Representatives for CVC Capital, Hellman & Friedman, AlixPartners and Bank of America Merrill Lynch declined to comment. Goldman Sachs, Madison Dearborn and Providence had no immediate comment.

Southfield, Michigan-based AlixPartners, founded by Jay Alix in 1981, competes in the restructuring and bankruptcy space with specialists such as FTI Consulting and Alvarez and Marsal, as well as the turnaround practices of major consulting firms including McKinsey & Company, Boston Consulting Group and Bain & Co.

AlixPartners' recent high-profile assignments have included advising General Motors Co (GM.N: Quote) on its ongoing restructuring of the loss-making European Opel unit.

With some 900 professionals around the world, the firm has also worked on Chapter 11 reorganizations of firms such as Enron, General Growth Properties GGP.N and Eastman Kodak EKDKQ.PK.   Continued...

Fred Crawford, Chief Executive Officer of AlixPartners, speaks at the Reuters Private Equity and Hedge Funds Summit in New York March 3, 2010. REUTERS/Brendan McDermid