Latest news with #privateEquity
Bloomberg
8 hours ago
- Business
- Bloomberg
Platinum-Backed McGraw Hill Files for IPO Showing Narrowing Loss
Platinum Equity -backed McGraw Hill Inc. filed for an initial public offering, a sign that private equity firms are resurfacing to take more of their portfolio companies public. The education and training company had a net loss of $85.8 million on revenue of $2.1 billion in the fiscal year ended March 31, compared with a net loss of $193 million on revenue of $1.96 billion a year earlier, according to its filing Friday with the US Securities and Exchange Commission.
Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
Sanctioned Steelmaker Finds a Buyer for U.S., Canada Plants
The North American business of steelmaker Evraz—whose largest shareholder is sanctioned Russian oligarch Roman Abramovich—will be acquired by private-equity firm Atlas Holdings. Atlas said it agreed to pay up to $500 million, with most of the money deferred pending the performance of the business.
Yahoo
15 hours ago
- Business
- Yahoo
Dollar Tree Stock Sell-Off: Should You Buy the Dip?
Dollar Tree is beginning a new chapter amid its upcoming sale of Family Dollar. Its stock has risen since announcing the sale. A compelling forward P/E ratio may induce new investors. 10 stocks we like better than Dollar Tree › Market conditions have presented challenges for Dollar Tree (NASDAQ: DLTR) over the past few years. Contentious trade relations with China and supply chain challenges have left the company struggling to fill its shelves, while rising inflation has pressured many of its cash-strapped consumers. Amid such headwinds, the retail stock is down more than 40% since reaching a high in 2022. Still, the company has come to terms with its failed Family Dollar acquisition, spinning off the chain. Now, with its capital free and a modified business strategy, it's worth asking whether investors should buy the stock on the dip, or if this is one they should still avoid. Dollar Tree is an ultra-discounter that sells crafts, cleaning supplies, party supplies, and other items, giving shoppers what it calls a "thrill of the hunt" experience. Most of its products sell at a $1.25 price point, though it has recently introduced price tiers as high as $7, as inflation reduces the number of items that can be sold profitably at lower prices. The company is also about to begin a new chapter as it prepares to sell Family Dollar to two private equity firms for around $1 billion. In 2015, Dollar Tree outbid Dollar General for Family Dollar, paying just over $9 billion. However, Family Dollar differed from its new parent in that it focused more heavily on essentials, making it a different type of retail business. After years of failing to fully integrate the chain into its operations, Dollar Tree finally agreed to a sale in March. In the 10 years it owned Family Dollar, the stock rose by less than 30% as this misstep was a drag on its financials. Despite having to sell Family Dollar at an $8 billion loss, the move is likely positive for Dollar Tree. Now, it can focus single-mindedly on the business it knows best. It can also better address the rising threat of e-commerce and find ways to mitigate tariffs on goods from places like China and Mexico, where many of its goods are produced. As of this writing, the Family Dollar disposition is not yet complete. However, Dollar Tree released financials with Family Dollar reflected as discontinued operations. Thus, the financial data reflects only the Dollar Tree segment, making it easier for investors to evaluate the enterprise as it is going to look. They may like what they see. In the first quarter of 2025, net sales of $4.6 billion rose 11%. Same-store sales increased by 5.4%, with foot traffic up 2.5% and customers spending 2.8% more than last year. Higher operating expenses weighed on the bottom line, but with other income rising, the company's net income of $343 million rose 14% compared with the year-ago quarter. For all of 2025, management forecasts net sales of $18.5 billion to $19.1 billion, representing a 7% yearly increase at the midpoint. Moreover, the stock has been on an uptrend since announcing the Family Dollar sale. Thus, even though shares are down over the last 12 months, they have risen by almost 35% since the beginning of the year. Indeed, recent quarterly losses left Dollar Tree without a price-to-earnings ratio (P/E). But the forward P/E of 19 means that investors can still add shares without overpaying. With the company now focused on what it does best, that valuation may make the stock more attractive to new buyers. Under current conditions, Dollar Tree is in a strong position to deliver market-beating returns. Indeed, the Family Dollar acquisition seemed to limit the growth of the ultra-discounter and its stock price. Also, the fact that Dollar Tree is down by around 40% from its all-time high despite recent gains highlights the depth of the pain it has suffered. Nonetheless, the growth in the latest quarter and the slightly lower net sales increases forecast for the year bode well. When also factoring in what is still a discounted forward P/E ratio, Dollar Tree could not only deliver market-beating returns but also surpass its all-time high in the coming years. Before you buy stock in Dollar Tree, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar Tree wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Will Healy has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dollar Tree Stock Sell-Off: Should You Buy the Dip? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Sky News
17 hours ago
- Business
- Sky News
Crisis-hit marketing group Next 15 approached about £200m break-up
A London-listed marketing conglomerate which sacked three of its top executives this week has been approached about a £200m break-up. Sky News has learnt that Next 15 has been holding talks about a sale of its "legacy" assets, which include the financial public relations agency MHP, with an unnamed bidder. That would leave the rump of the business focused on technology and data-driven client businesses. One industry source said the prospective buyer was believed to be a private equity firm. Next 15 issued a profit warning and changed its leadership this week as it disclosed "potential serious misconduct" related to Mach49, a Silicon Valley advisory business it owns. "As a consequence, Next 15 has terminated the employment of three members of the senior management at Mach49 - Linda Yates, Russ Lampert and Paul Holland. David Charpie, currently co-CEO of Mach49, will become sole CEO with immediate effect," it said in a stock exchange statement on Wednesday. "Next 15, on behalf of Mach49, is in the process of reporting the matters to relevant law enforcement agencies. "It is too early to know the outcome, but Next 15 will ensure that full co-operation is provided to those agencies." The company, which has a market value of about £210m after seeing its stock slump by nearly 75% over the last year. It also announced this week that Tim Dyson, its chief executive for over three decades, would retire and be replaced by Sam Knights, the boss of Shopper Media Group, a subsidiary of Next 15. A person close to Next 15 insisted that any potential break-up would reflect the "simplification strategy" to which it had publicly alluded. Next 15 declined to comment on the approach for some of its assets, which are also thought to include the creative agency Elvis and Outcast, another PR firm.
Yahoo
17 hours ago
- Business
- Yahoo
Crisis-hit marketing group Next 15 approached about £200m break-up
A London-listed marketing conglomerate which sacked three of its top executives this week has been approached about a £200m break-up. Sky News has learnt that Next 15 has been holding talks about a sale of its "legacy" assets, which include the financial public relations agency MHP, with an unnamed bidder. That would leave the rump of the business focused on technology and data-driven client businesses. One industry source said the prospective buyer was believed to be a private equity firm. Next 15 issued a profit warning and changed its leadership this week as it disclosed "potential serious misconduct" related to Mach49, a Silicon Valley advisory business it owns. "As a consequence, Next 15 has terminated the employment of three members of the senior management at Mach49 - Linda Yates, Russ Lampert and Paul Holland. David Charpie, currently co-CEO of Mach49, will become sole CEO with immediate effect," it said in a stock exchange statement on Wednesday. "Next 15, on behalf of Mach49, is in the process of reporting the matters to relevant law enforcement agencies. "It is too early to know the outcome, but Next 15 will ensure that full co-operation is provided to those agencies." The company, which has a market value of about £210m after seeing its stock slump by nearly 75% over the last year. It also announced this week that Tim Dyson, its chief executive for over three decades, would retire and be replaced by Sam Knights, the boss of Shopper Media Group, a subsidiary of Next 15. A person close to Next 15 insisted that any potential break-up would reflect the "simplification strategy" to which it had publicly alluded. Next 15 declined to comment on the approach for some of its assets, which are also thought to include the creative agency Elvis and Outcast, another PR firm.
