The Car and Truck Fleet and Leasing Management Magazine

Private Equity Funds to Buy ADESA Auction for $2.5 Billion

December 26, 2006

NEW YORK – Vehicle auction company, ADESA Inc., will be acquired by a group of private equity funds for roughly $2.5 billion. ADESA common stock will be converted into the right to receive $27.85 per share in cash, representing a premium of approximately 10 percent to ADESA’s closing share price of $25.40 on December 21, 2006, and approximately 37 percent to ADESA’s closing share price of $20.31 on July 26, 2006. The team of funds comprises Kelso & Co., GS Capital Partners, an affiliate of Goldman Sachs, ValueAct Capital, and Parthenon Capital. Insurance Auto Auctions Inc. – owned by Kelso & Co., Parthenon Capital, and members of its management – will be combined with Carmel, Indiana-based ADESA. ADESA said the transaction's total value, including a contribution by Insurance Auto Auctions, assumption or refinancing of $700 million of debt and the payment of fees, is $3.7 billion. “After several years as a public company, we believe that we can more successfully execute and achieve our long-term goals in a private context,” ADESA Chairman and CEO David Gartzke said. ADESA's board approved the deal and will recommend it to stockholders. The transaction is expected to close in the first half of 2007.
Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

During her 18-year career with PHH, Patsy Mance worked in a variety of positions at the Hunt Valley, Md., headquarters office until 1974, when she was promoted to account executive and assigned to a field position in New York City.

Read more

Up Next

More From The World's Largest Fleet Publisher