Did LBOs create value in US food industries in the 1980s?

Francis Declerck
Additional contact information
Francis Declerck: IGIA (Institut de Gestion Internationale Agro-Alimentaire), 13 Boulevard de l'Hautil, 95092 Cergy-Pontoise Cedex, France, Postal: IGIA (Institut de Gestion Internationale Agro-Alimentaire), 13 Boulevard de l'Hautil, 95092 Cergy-Pontoise Cedex, France

Agribusiness, 1995, vol. 11, issue 6, 523-536

Abstract: The objective of the study is to determine whether LBOs (leveraged buyouts) created value in the 1980s. LBOs existed before the 1980s but their number and dollar value increased in the 1980s. Value of LBOs in food industries peaked at US$65 billion in 1989. In dollar value, the RJR Nabisco and Beatrice Foods LBOs are the two largest leveraged buyouts in US history. A sample of target firms, taken privately in an LBO in the 1980s, was analyzed to reach the objective. Multiples of purchase price to book value at takeover announcement date were studied. Debt repayments and divestitures were analyzed. Results show that the structure of deals has changed since the 1980s. © 1995 John Wiley & Sons, Inc.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:11:y:1995:i:6:p:523-536

DOI: 10.1002/1520-6297(199511/12)11:6<523::AID-AGR2720110605>3.0.CO;2-R

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().