By Greg Roumeliotis and Soyoung Kim
NEW YORK, June 28 Carlyle Group LP and
TPG Capital LP are among private equity firms vying for
MoneyGram International Inc, the world's second-largest
money transfer company, four people familiar with the matter
said this week.
Bain Capital LLC and GTCR LLC are also participating in the
auction for MoneyGram, which is being run by Bank of America
Corp and is currently in its second round of bidding,
the sources said.
Two industry players are also in contact with MoneyGram
about a potential takeover, one of the sources said. The
identity of these parties could not be learned.
MoneyGram, Bank of America, Carlyle, TPG, Bain and GTCR
declined to comment.
MoneyGram shares jumped 2.5 percent on the report, giving
the company a market value of $1.3 billion. Through Thursday,
the shares had risen 65 percent this year, compared with a 13
percent rise for the Nasdaq Composite Index.
The news service Dealreporter reported on June 18 that
MoneyGram was exploring a sale. The company's stock was already
on the rise on expectations shareholders would get more of the
company's cash flow as dividends.
With more than 321,000 locations in retailers, post offices
and banks in 198 countries and territories, MoneyGram is second
only to Western Union Co among money transfer providers.
MoneyGram started as a small money order company in
Minneapolis in 1940 and now boasts more than twice the locations
of McDonald's Corp, Starbucks Corp, Subway and
Wal-Mart Stores Inc combined.
The Dallas-based company faced a serious liquidity crunch in
2008 after investing in subprime and other risky asset-backed
securities, but it was rescued through a $1.5 billion equity and
debt deal clinched with Goldman Sachs Group Inc and
private equity firm Thomas H. Lee Partners LP.
MoneyGram staged a comeback and in 2012 reported record
sales of $1.34 billion, but its profits suffered as a result of
legal expenses incurred in consumer fraud cases involving its
The 2008 recapitalization has left Goldman Sachs and Thomas
H. Lee owning about 70 percent of the company. An outright sale
of MoneyGram could allow the two firms to exit their investment
faster, and potentially more lucratively, than through smaller
secondary offerings of shares over time.