Answer: the end result of the buying out of Dade Behring, merging it with a "vitro diagnostics business," and then raking in the Billions in profits -- with an 8-fold return on investment, for the instigators: Bain and Goldman.
What a Country! Any idea where they should stash the loot?
Bain Capital -- wikipedia
[...]
Bain's investment in Dade Behring represented a significant investment in the medical diagnostics industry. In 1994, Bain, together with Goldman Sachs Capital Partners completed a carveout acquisition of Dade International,[46] the medical diagnostics division of Baxter International in a $440 million acquisition. Dade's private equity owners merged the company with DuPont's in vitro diagnostics business in May 1996 and subsequently with the Behring Diagnostics division of Hoechst AG in 1997.[47] Aventis, the successor of Hoechst, acquired 52% of the combined company.[48] In 1999, the company reported $1.3 billion of revenue and completed a $1.25 billion leveraged recapitalization that resulted in a payout to shareholders.[47] The dividend, taken together with other previous shareholder dividends resulted in an eightfold return on investment to Bain Capital and Goldman Sachs.[20][37] [...]
Whew! that's a lot of leveraging! Who says Corporate Raiders don't 'break a sweat' for their astronomic ROI?
"An eightfold return on investment" to Bain Capital, and their 1994 partners in equity investing, Goldman Sachs.
Not bad for a return for a few shell game moves ...
Put in a 100 million, get 800 million back. That's like getting an 800% interest rate on your money.
Such is the magic of Bain Capital, under Romney's hawk-like vulture-like leadership ...
Hmmm? so what ever happened to Dade Behring's employees, during this little equity shell-game?
Glad you asked, because that's what I researched next:
In Miami, story of profits and layoffs highlights debate over Mitt Romney's tenure at Bain
The Miami Herald -- 01/18/2012
[...]
In 1997, Bain acquired two other companies and formed Dade Behring, based in Deerfield, Ill. The company flourished, raking in millions in sales.
Yet debt was soaring. Under Bain’s direction the company squeezed costs through plant consolidations, layoffs and reduced employee benefits. In November 1997, Dade Behring announced it would close two Miami facilities, which employed 850 people, and consolidate operations in Delaware and Germany.
[...]
Dade Behring was a textbook case for Bain, a clear example of the “golden eggs” Romney once said would be hard to give up when he left to run the 2002 Olympic Games in Salt Lake City.
[...]
To make the payment Dade had to borrow more, contributing to its shaky status. The deal came a few months after Romney left Bain, though he still had a stake.
“I hear Mr. Romney talk about creating jobs, what he really did was create wealth for investors,” said Michael Rumbin, a former Dade vice president in Illinois who had to fire 25 to 35 people before his own job was eliminated. “No one ever came to me and said, ’How do we create more jobs?’ ”
Saddled with $1.5 billion in debt and facing higher interest rates, Dade Behring entered Chapter 11 bankruptcy in 2002.
Creditors accused Bain and other investors, which included Goldman Sachs, of “unjust enrichment,” according to SEC filings. That was not proven, though Bain surrendered the rest of its stake.
[...]
"
Unjust enrichment" --
that's rich!
Don't suspect it made much difference though to the financial wizards at Bain Capital and Goldman Sach ...
considering there is a well-defined method to their equity gamesmanship:
Bain Capital: a Corporate Entity on a Mission
by jamess -- Jul 17, 2012
Cheers! Happy career building, people.
One more question to pose to the Romney Raiders, if you ever get the chance:
When do we get a cut of those 8 to 1 "carve up" deals?
Answer: Probably not anytime soon,
since it's our livelihoods being carved up by the Raider class --
to underwrite their 800% lifestyles.
Shhh! take to a "quiet room," why don't ya. And leave those "Job Creators" er, "Wealth Creators" alone -- will be their unspoken, but ever-present elitist reply.