Showing posts with label Merger. Show all posts
Showing posts with label Merger. Show all posts

Saturday, August 11, 2007

Sometimes Merger Math Just Doesn't Add Up

For six years private equity firm Thomas H. Lee Partners tapped the credit markets to buy one consumer-products brand after another and roll them all up into United Industries Corp. But even though United's total debt jumped from $375 million to $860 million by 2005, its leverage—one measure of a deal's riskiness—didn't move much.

How could that be?

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