Apollo worked with the company to identify meaningful operational improvements, driving EBITDA margin expansion of nearly 200 basis points in approximately one year of ownership. Given the hesitancy among banks to sign up to committed financings, particularly of this scale, Apollos creativity in sourcing private capital provided a differentiated advantage and enabled Fund VIII to complete the transaction. Not an Offer or Solicitation. In April 2013, Fund VII worked with operating executive C. Dean Metropoulos to acquire the majority of the assets of Hostess snack cake business out of bankruptcy, investing nearly $150 million. Since then, the company has been transformedcreating value by bolstering investment in digital products, completing six digital-focused acquisitions, capitalizing on cost savings opportunities, and turning around the companys K-12 and international businesses. Private equity is the cornerstone of Apollos equity business, with $87 billion in assets under management as of December 31, 2021. Apollo is where the best and brightest in the industry collaborate in an entrepreneurial environment. Our Private Equity team is made of up intellectually curious and entrepreneurial individuals. We believe our patient, creative, knowledgeable approach to investing serves to further align us with our clients, portfolio companies, employees, and the communities we impact. Fund VIIIs investment in ADT, comprised of three security monitoring firms, serves as a prime example of Apollos investment acumen in combining franchise assets, navigating a challenging investment environment, and leveraging its proprietary capital markets capabilities. Given Apollos history in the packaging sector, Apollo had been following Verallia for nearly a decade and made several attempts to buy the company. 0$$d@# 4 Q8HV A&FTF? ADT: Marquee Transaction Harnessing Apollos breadth ADT Inc. (ADT) is the leading provider of monitored security, interactive home and business automation and related monitoring services, serving approximately 8.3 million residential and commercial customers from over 200 sales and service locations and 12 monitoring centers in the U.S. and Canada. American Securities and its affiliates have approximately $23 billion of cumulative committed capital under management.www.american-securities.com, Cision Distribution 888-776-0942 Apollo reduced what was required of the banks by developing a strategy to roll over a portion of ADTs existing debt, by placing a portion of the debt directly with investors, and by raising additional capital through the issuance of preferred securities. The Managing Directors on the Investment Team average more than 13 years at American Securities. Private Equity is led by a global team of partners with unique industry expertise and a longstanding track record of working creatively with management teams to transform companies. Apollo funds debt investment positioned them as creditors in negotiating the companys plan of reorganization, which ultimately allowed them to equitize their position in the restructured company. Verallia: Persistence Rewarded To explore American Securities Partners VIIIs full profile, request access. Other past or present Apollo portfolio company executives, and other past or present Apollo employees, may not necessarily share the same opinions, views or beliefs about Apollo as those expressed in these videos and case studies. Youre viewing 5 of 10 investments. Importantly, through combination synergies, Fund VIII was able to significantly reduce its creation multiple. In January 2018, ADT completed its initial public offering and listed its shares of common stock on the New York Stock Exchange. Acquiring the snack cake assets required a complete overhaul of the legacy manufacturing and distribution footprints, an undertaking which drove away many competing bidders and allowed funds managed by Apollo to invest in the new Hostess at an attractive creation multiple. LyondellBasell: A Textbook Achievement in Distressed Investing Under no circumstances should the videos or case studies found on this website be construed as an offer to sell, or a solicitation to buy, any security or instrument in, or to participate in any investment strategy with any funds, vehicles or accounts sponsored or managed by Apollo Asset Management or any of its affiliates (Apollo) or any portfolio company in which Apollo has invested. Apollo Portfolio Performance Solutions (APPS) applies the scale and expertise of Apollo to help build better companies. "We are proud that our investor base has continued to expand globally, with limited partners in ASP VIII from 27 countries," said Michael G. Fisch, a Founder and CEO of American Securities. Apollo was attracted to Hostess strong brand names and loyal customer base and had conviction in relaunching the business with a more streamlined and efficient cost structure. Verallia is the third largest global manufacturer of glass bottles and jars for the food and beverage industry. It provides 2- and 4-year college and university, professional, international, and K-12 markets with content, tools, and services delivered via digital, print, and hybrid solutions. LyondellBasell Industries N.V. 2022 PitchBook. Get the full list, Employees' Retirement System of the State of Hawaii, Youre viewing 5 of 21 limited partners. Hostess Brands, LLC (Hostess) is a leading sweet goods company in the U.S. with iconic brands that include Twinkies, Ding Dongs, Cup Cakes, Zingers, Donettes and HoHos. Verallia is the third largest global manufacturer of glass bottlesLearn moreabout Verallia: Persistence Rewarded. Apollo Global Management, Inc. 2022 All Rights Reserved. Get the full list. PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. Innovating and Evolving While Staying True to Apollos Core Values, Uncovering mispriced opportunities in sectors we know well, Price discipline, creative structuring, and downside protection remain the basis of our longstanding investing approach, Accelerating growth through value creation initiatives and strategic partnerships, Broadening conception of attractive risk-adjusted return. 1110 0 obj <>/Filter/FlateDecode/ID[<13AFFEAEC7355047A30A6E5FA0FAA524><750E942A2E6100499553BCDE0670086B>]/Index[1094 22]/Info 1093 0 R/Length 82/Prev 113025/Root 1095 0 R/Size 1116/Type/XRef/W[1 2 1]>>stream In November 2016, Hostess was sold to Gores Holdings, Inc., a publicly traded special purpose acquisition company led by affiliates of The Gores Group, LLC, and became a publicly listed company. It also has an expansive portfolio of leading digital and adaptive products covering the full range of subject areas and grade levels. In deploying ASP VIII, the firm will generally invest $200 million to $600 million of equity capital in each situation, although larger investments are also possible. endstream endobj startxref hbbd``b`:$Wq $"d0 "|qeA,H 1(7``bd from 8 AM - 9 PM ET. American Securities invests in partnership with existing management teams of market-leading businesses, generally having $200 million to $2 billion of revenues and/or $50 million to $250 million of EBITDA. 1094 0 obj <> endobj Apollo was able to help in identifying and carving out the specific product portfolio and assets which were most attractive and help to rebuild a corporate organization and structure around these assets. In October 2015, Apollos persistence came to fruition as Saint-Gobain was seeking capital to fund a new acquisition, and Fund VIII was able to acquire the business for an attractive creation multiple at a discount to comparables. Meet some of our professionals and visit our Careers site to learn how you can join us. Through its 80+ year history, Hostess has established unparalleled consumer brand awareness, strong customer relationships and partnerships with local communities throughout the U.S. Hostess has historically served over 100,000 unique customer locations across a diverse group of channels, including grocery stores, select convenience stores, supercenter locations and other mass merchandiser channels. During the financial crisis, Apollo recognized the opportunity to acquire debt in Lyondell, as the business represented a good company with a bad balance sheet. Over the course of 2008 and into 2009, Fund VII, together with other Apollo funds, accumulated a multi-billion dollar first lien term loan position. @ ( endstream endobj startxref hb```,? While we have grown the business significantly over 30 years, we continue to foster a nimble and close-knit apprenticeship culture, as well as a commitment to drive progress and innovation. APPS brings together these capabilities to help portfolio companies operate at their very best: McGraw-Hill Education ("MHE") is a leading global provider of education content and outcome-focused learning solutions for students, instructorsLearn moreabout McGraw Hill: A Digital Transformation. We believe Apollo was the only private equity manager with the industry insight, scale of capital, transaction structuring and capital markets expertise to complete this transaction. We create opportunities for community giving and volunteering: from 2008 through 2020, employees from our funds portfolio companies have donated more than $1 billion to charitable organizations and volunteered more than 1.1 million hours of their time. %PDF-1.6 % 6870 0 obj <> endobj Apollo Operates one of the Industrys Leading Private Equity Businesses. The company ultimately entered Chapter 11 bankruptcy in January 2009. As an independent company, Apollo felt there would be meaningful opportunities to streamline costs and focus on free cash flow optimization, leading to operational and organizational improvements. These teams come together through work, and through our employee affinity networks including Apollo Women Empower, Apollo Pride, and the Apollo Veterans Initiative. McGraw-Hill Education ("MHE") is a leading global provider of education content and outcome-focused learning solutions for students, instructors, and institutions. In addition, other third parties that have relationships with, or knowledge of, such portfolio companies may not necessarily share the same views, beliefs, or opinions about the portfolio companies as those expressed in these videos and case studies. The bankruptcy process provided Fund VII with a unique opportunity to invest in a company that acquired select assets without incurring the pre-existing liabilities or legacy contracts that had historically weighed on the business. JavaScript isn't enabled in your browser, so the video can't be played. Apollo creates value by engaging with portfolio companies from the very beginning of our partnership offering expertise, support, and resources to position each company growth. The investment in Lyondell exemplifies Apollos contrarian, value-oriented approachin the midst of an economic crisis, while most other investors were liquidating their positions in a flight to safety, Apollo funds invested in an asset with significant franchise value, continuing to buy Lyondells debt as it traded down and capturing significant value through the purchases. We believe our strategy has succeeded by focusing on innovation at every turn, and seeking to deliver value to build better companies. It should not be assumed that the portfolio companies and private credit deals discussed in these videos and case studies were or will be profitable or that future portfolio companies or private credit deals will be profitable. This new partnership provides American Securities with further equity capital to support management teams in growing their businesses.". What separates us is our consistent focus on value., We build great businesses and generate value by challenging convention and striving for excellence every single day., Apollo Global Management, Inc. (NYSE:APO), Environmental, Social and Governance (ESG), about McGraw Hill: A Digital Transformation, about Hostess: Resurrecting a Household Name, about ADT: Marquee Transaction Harnessing Apollos breadth, about LyondellBasell: A Textbook Achievement in Distressed Investing, environmental, social, and governance (ESG) policies and practices, Apollo Will Take Auto-Parts Supplier Tenneco Private, Bloomberg, Apollo Global partner reveals strategy behind firm's acquisition of 'Dune' producer Legendary, TV station group Tegna, and plans for further media M&A and 'our own IP', Business Insider, Willingness to tackle complexity and take on deals both large and small, Disciplined underwriting strategy and ability to invest across cycles, Industry-leading ESG reporting for portfolio companies. Apollo makes no representation or warranty as to the accuracy, currentness or completeness of the information in these videos and case studies. When typing in this field, a list of search results will appear and be automatically updated as you type. Apollo-managed funds acquired MHE as a carve-out from McGraw-Hill Companies in 2013. Our success is predicated on the success of each business within our portfolio providing their management teams with best-in-class resources is an essential element of the Apollo private equity ecosystem. Hostess: Resurrecting a Household Name Following Lyondells emergence from bankruptcy, Apollo leveraged its experience in the chemicals industry to work with the company in driving value creation through a disciplined focus on cash flow and capital structure optimization, liquidity, cost reduction, margin improvement and sourcing strategic relationships. Learn more about our career opportunities. We are excited about the companys progress and prospects. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. "We greatly appreciate the interest expressed in ASP VIII by many long-standing relationships, as well as new investors. The size and scale of our business enables Apollo to help drive measurable change in environmental, social, and governance (ESG) policies and practices in companies and in our industry. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. American Securities closed the fund above the $6 billion target and at the hard cap the firm established at the outset of fundraising in October 2017. We seek to drive value for our portfolio companies and across our portfolio, and we believe that we take a bespoke approach with every company, recognizing that each brings new sets of challenges and opportunities. Our Volume 12 ESG Report describes the Apollo ESG effecthow we help create tangible progress in ESG issues not only at portfolio companies but also in our own business. Apollos unique ESG program combines our unrivaled experience, rigorous industry-leading reporting, an extensive network, and unwavering attention to operational excellence. Hostess Brands, LLC (Hostess) is a leadingLearn moreabout Hostess: Resurrecting a Household Name. Subsequently, in May 2016, Protection 1 acquired The ADT Corporation, a leading industry player with global brand recognition, through a public-to-private transaction. 1115 0 obj <>stream Apollo worked with the company to complete several dividend recapitalizations, including in June 2016 in advance of the Brexit vote, which represented an attractive return of Fund VIIIs capital invested in Verallia. `n#j&;&N&}&5 Iq;pf &!g02gx9 L c`x$[d7KX#q5Z"'a8;:4:f0J !Q d`RW@,I`g}W(g=L`i(;6LZo4#q#sw*L@1. LyondellBasell Industries N.V. (Lyondell) is one of the world's largest plastics, chemical, and refining companies. The combination of these three businesses established the leading provider in the security monitoring space. The combined transaction had a total enterprise value of $15 billion with Fund VIII and co-investors investing $3.6 billion of equity, which represents one of the largest buyouts in recent years. American Securities is led by an experienced and cohesive team, including 16 Managing Directors. We seek creative, diverse perspectives and foster a sense of belonging and community. With its well-invested plants, strong technical expertise and long-standing customer base, Apollo believed Verallia would thrive as a stand-alone company, as opposed to continuing to operate as a non-core division within a much larger corporate framework. hb```Y, ea80gILI .000*|H0w 303 EL*Z/0gbcber 1c!Hn(U AX} With a significantly delevered balance sheet, Lyondell emerged from bankruptcy in 2010, with Apollo funds as the largest shareholders. Hear Co-Leads of Private Equity, Matt Nord and David Sambur, as well as other members of the Apollo PE team describe in their own words, what sets our franchise apart. Fund VII subsequently monetized substantially all of its remaining investment in Hostess. Apollos investment strategy for over three decades centers around three principal transaction types: buyouts, corporate carve-outs, and distressed investments. 0 6898 0 obj <>stream PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. The firm strives to be a long-term, value-added partner to the CEOs and management teams of the companies in which it is privileged to invest. American Securities has pursued its investment strategy in a disciplined manner across business cycles and ever-evolving market dynamics since its inception in 1994. Apollo worked to finalize Protection 1s acquisition of The ADT Corporation, which required over $10 billion in debt financing, in late 2015 into 2016, when the capital markets were facing headwinds. About American Securities LLCBased in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion and/or $50 million to $250 million of EBITDA. This information is available in the PitchBook Platform.

Sitemap 9