It’s been only two years since The Carlyle Group acquired John Maneely Company (JMC). Since then, its sales have increased 36%, from $2.2 billion in fiscal 2006 to estimated $3 billion in fiscal 2008. It maintained number one market position in North America in each of its three core product categories. And now it is being sold to NLMK of Russia for $3.53 billion on a debt-free, cash-free basis in the largest outgoing cross-border M&A in the Russian corporate history.
NLMK or Novolipetsk Steel has agreed to acquire Ohio-based JMC from The Carlyle Group and the Zekelman family for Price/EBITDA of 7.3 and Price/Sales of 1.2. Through the acquisition, NLMK secured an entry into the U.S. pipe and tube market. Daniel Pryor of Carlyle commented that this was a great example of how private equity can help create value.
NLMK advisors include investment bank Merrill Lynch and legal firm Debevoise & Plimpton while JMC is being advised by JP Morgan, Goldman Sachs and GMP Securities as well as by Latham & Watkins.
In the other private equity deal, TPG Private Equity was recently looking to acquire a half of CIA International in Russia for $800 million.