TIP-EUROPE: A MULTI-NATIONAL BUYOUT
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• TIP, Europe's leading trailer leasing and rental company, was a subsidiary of the American Gelco Corporation, which put it up for sale in mid-1985. The fact that it was not bought out until June, 1986 indicates how lengthy a process a buyout can be, although in this case the delay was partially caused by initial interest by third parties.
The purchase price was £40.7 million, but after refinancing of existing debt and the payment of costs, the whole package amounted to £60 million, of which £40 million came in the form of senior debt provided by a syndicate of banks, 1 9.5 million was in equity and preference capital from fourteen institutions, and only £0.5 million came from the managers, who nonetheless received a significant stake in the company.