Private equity firm will become Towergate’s second-largest shareholder
Chicago-based private equity firm Madison Dearborn Partners (MDP) is gunning to buy the 23% of Towergate not already owned by its current main shareholders.
MDP is known for being a current investor in health club operator LA Fitness.
If MDP is successful, it will become Towergate’s second-largest shareholder after HPS.
MDP, through subsidiary Tango Investments, already has offers amounting to 10% of Towergate’s holding companies TIG Topco and Sentry Holdings. It has today launched a tender offer in a bid to buy the rest of the 23% not owned by either HPS or other main shareholders KKR, Sankaty and Bain Capital Credit.
None of HPS, KKR, Sankaty or Bain are selling any equity under the MDP deal.
MDP will therefore become a shareholder alongside those that bought into the company as part of its financial restructuring last year.
The tender offer closes on 24 October, or three business days after the offer becomes conditional, whichever is later. The deal is expected to close at the earliest on 27 October.
Towergate chief executive David Ross said: “Madison Dearborn Partners are a large and highly experienced investor and their desire to buy a stake in Towergate is another vote of confidence in our unique platform, strategy and future ambition.
“At the same time, we are pleased that our core shareholders have each committed to retain their current holdings, with HPS Investment Partners in particular maintaining its current position as our majority shareholder for the foreseeable future.”