10 Most Successful LBOs and Private Equity Buyouts in History

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10. Continental Airlines

Year: 1993
Nominal value: $66 million
Value in 2017 dollars: $113.27 million
Buyer: Texas Pacific Group (TPG Capital)

In sharp contrast to Carl Icahn’s takeover of TWA, which ended in the company being stripped of its most valuable assets and ultimately led to its bankruptcy (while significantly enriching Mr. Icahn), newly formed Texas Pacific Group took the other way in their 1993 buyout of Continental Airlines. By taking a direct, hands-on approach in the daily operations of the company, they managed to turn their initial $66 million investment into a handy $600 million profit. Their handling of the Continental buyout set up a new norm for the subsequent LBO and private equity takeovers that followed in the coming years. Continental is now part of United Continental Holdings Inc (NYSE:UAL).

10 Most Successful LBOs and Private Equity Buyouts in History

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