After years of muted activity, leveraged buyouts (LBOs) are staging a comeback. Private equity firms and sovereign wealth funds are increasingly targeting high-profile technology, media, and consumer companies. Cheap debt, abundant dry powder, and the search for stable cash flows amid public market volatility are driving this resurgence.
Recent and historic deals illustrate the trend: Atlantia SpA was acquired by Blackstone and Edizione for $46.36B and rebranded as Mundys to become a top global infrastructure group. TXU Corp’s $43.8B LBO by KKR, Goldman Sachs, and Texas Pacific ended in bankruptcy in 2014. HCA Inc, bought by Bain Capital, KKR, and Merrill Lynch for $32.68B, is now publicly traded again with a valuation near $100B. Medline Industries’ $30B buyout by a consortium including Blackstone and Carlyle is preparing for a potential IPO in New York. Other notable deals include ALLTEL Corp, First Data Corp, HJ Heinz Co, Air Lease Corp, Harrah’s Entertainment, and Hilton Hotels, each representing multi-billion-dollar leveraged acquisitions shaping their industries.
The proposed $55B Electronic Arts takeover by Silver Lake, Saudi Arabia’s Public Investment Fund, and Affinity Partners underscores ongoing investor appetite for marquee technology deals.
This renewed activity highlights a broader trend: private and sovereign capital is actively seeking stable, high-return opportunities, signaling that the LBO market is very much alive.