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Lehman Brothers completes first buy-out in three years

The private equity arm of investment bank Lehman Brothers has completed its first buy-out transaction in over three years. The firm has acquired US fan manufacturer, Hunter, for approximately $244m.

‘This acquisition fits perfectly with our investment criteria and allows us to partner with a proven management team operating a world class company,’ said Charles Ayres, global head of Lehman Brothers Merchant Banking. ‘The Hunter team has an impressive track record of new product introduction and developing strong relationships with leading home centres and independent retailers.’

The transaction is reported to include an equity component equalling approximately one third of the value of the deal. The remaining $160m includes a senior loan and a tranche of mezzanine raised through JP Morgan.

Lehman Brothers currently manages in the region of $7bn of capital, covering private equity, merchant banking, fixed income related funds and private funds investments. Like several other investment banks, including Goldman Sachs, Lehman’s is currently building up parts of its private equity practice in order to take advantage of private equity driven merger and acquisitions deal flow in Europe and the US.

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