Madison Dearborn beat Hellman & Friedman and other private equity firms for AlixPartners. The acquisition, first reported on CFW‘s Web site last Tuesday--will likely see the Chicago private equity shop pick up Alix for $1 billion, according to a banker.
Alix is a turnaround management firm, whose clients have included Kmart, Worldcom, Dana Corp. and Parmalat USA, and as such it is the first leveraged buyout of a restructuring firm, according to bankers. Industry professionals venture that Madison Dearborn is acquiring Alix to capitalize on the restructuring wave expected to expected to hit soon. Citigroup is reportedly providing financing for the deal, according to a restructuring banker.
Debra Kuptz, a managing director responsible for marketing at Southfield, Mich.-based Alix, declined to comment. Representatives from Madison Dearborn did not return calls seeking comment. Andrea Hurst, a Citi spokeswoman, declined to comment as did a Hellman spokeswoman.
Lehman Brothers was tapped about four months ago to explore strategic alternatives (CFW, 6/19).