NEW YORK, NY – Lightyear Capital LLC (“Lightyear”), a private equity firm that focuses on financial services, today announced that BakerCorp has entered into a definitive agreement to be acquired by Permira for $960 million in cash. Through its affiliated investment fund, The Lightyear Fund, L.P., Lightyear invested in BakerCorp in 2005.
BakerCorp is a pioneer and market leader in the liquid and solid containment equipment rental and leasing services space through its national network of 100 locations serving all 50 states, with an additional seven international locations throughout Europe, Canada and Mexico. BakerCorp maintains the largest and most diverse fleet of over 20,000 units and provides liquid and solid containment rental and leasing solutions to a diverse customer base operating across a wide range of industries.
Lightyear identified BakerCorp as a company with an attractive recurring revenue business model, significant growth opportunities, and strong management as part of its specialty finance sourcing activities. Under Lightyear’s ownership, BakerCorp focused on growth, diversity of clients, and geographic expansion, which enabled the company to withstand the brunt of the economic downturn. In addition, BakerCorp completed two acquisitions that broadened its product offerings and penetration in international markets.
“Our investment in Baker has been very successful,” said Donald B. Marron, Chairman of Lightyear. “The company is a clear market leader, has an excellent management team and has performed extremely well under our ownership. We are pleased to realize this investment from our first fund.”
“Lightyear has a dedicated and thoughtful approach to working with its management teams, for instance by addressing key operational issues early and often and by giving strategic advice generated from decades of experience in the financial services industry,” said Bryan Livingston, CEO of BakerCorp. “Over the past six years, Lightyear has helped BakerCorp build out our management team, diversify our client base and expand into Europe, all of which have strengthened, grown, and positioned our company well for even greater future growth.”
The transaction is expected to close during the second quarter of 2011, pending the satisfaction of closing conditions including regulatory approval.
BakerCorp was advised by Goldman Sachs & Co. and Oppenheimer & Co., and legal representation was provided by Simpson Thacher & Bartlett LLP.
About Lightyear Capital
Lightyear Capital is a leading private equity firm making primarily control investments in North America-based, middle-market financial services companies. Based in New York, Lightyear, through its affiliated funds, has managed approximately $3 billion of committed capital with investments across the financial services spectrum, including asset management, banking, brokerage, financial technology, insurance, and specialty finance. Lightyear brings unique strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. The senior team of professionals averages over 25 years of financial services-related experience and includes Chris Casciato, David Cynn, Michael Doppelt, Stewart Gross, Thierry Ho, Donald Marron, Richard Sterne, and Mark Vassallo.
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