Private Equity: KKR Suspends Operations on Goodpacks Exit
KKR is suspending its efforts to exit its investment in Goodpacks, a Singapore based supply chain solutions company.
While the company’s primary container leasing business to food and rubber companies has remained steady with little to no impact form the coronavirus economic slowdown, the bids received by KKR were far beyond what the private equity firm had hoped to obtain for Goodpacks.
KKR and Goodpacks
Potential buyers reported difficulty putting the financing in place during the current period of turbulence in the financial markets. This is another indication that this could be a rough year for private equity firms looking to exit deals. Valuations have dropped dramatically around the world. At the same time, the Initial
Public Offerings markets and lending for leveraged buyouts have tightened up considerably since the beginning of the current global slowdown.
Private equity and venture capital companies, including Blackstone (BX), Warburg Pincus, Silicon Valley, Sequoia Capital, TPG, and CX Partners, had exit deals fall though in India in the past month as that nation saw it equity markets collapse. As many as two dozen Indian companies postponed their public offering until market conditions improved. This forces their private equity owners to wait longer to ring the cash register.
Once the virus has lessened its hold on the world and the economy, KKR is likely to bring Goodpacks back to the market and attempt to exit for at least $2. KKR bought the logistics company six years ago for roughly $1.6 billion.
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