Goldman to Acquire Flint Group? - Analyst Blog

The Goldman Sachs Group, Inc. GS through its private equity arm and Koch Industries Inc. is on the brink of penning a deal to acquire Flint Group from U.K. based private equity firm CVC Capital Partners Ltd., according to a Bloomberg report. The acquisition price may settle over €2.2 billion ($3biilion).

Luxembourg based Flint Group, one of the major players in the global market, is engaged in producing inks and plates for the packaging and print media industry.

Goldman Sachs Capital Partners being one of the largest private equity firms has a history of successful investments undertaken in collaboration with other firms. Notably, in partnering with other major private equity firms like Kohlberg Kravis Roberts & Co. KKR and TPG Capital, it acquired a medical devices company Biomet and a regulated utility and power producer, TXU.

Hence, we remain optimistic about the collaboration of Goldman Sachs Capital and Kansas based Koch Industries. Koch Industries is one of the largest privately owned companies and its line of operations includes manufacturing, trading and investments.

As core operations of financial institutions are struggling to earn decent revenues amid a still low interest rate environment, firms like Goldman are continuously exploring opportunities to drive earnings from alternative revenue sources. We believe that Goldman is poised to benefit from the proposed deal.

Bottom Line

With the economy gradually reviving from the financial meltdown and regulators' continuous efforts in establishing market stability, the private equity investments continue to roll in a favorable capital market. We look forward Goldman's increased involvement in such deals that will definitely impart positive vibes to investors.

Goldman currently carries a Zacks Rank #3 (Hold). Investment Technology Group Inc. ITG and E*TRADE Financial Corporation ETFC are better-ranked stocks. Both the stocks hold a Zacks Rank #1 (Strong Buy).