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KAR Holdings Inc. Jul 08
Standard & Poors, July 2008
Good market positions Recession-resistant business Experienced management team Very high leverage Below-average cash flow adequacy Dependence of free cash flow on merger synergies Acquisition integration risk The ratings on Carmel, Ind.-based KAR Holdings Inc. reflect its heavy debt from its leveraged buyout in 2007 and low prospective cash flow generation, partly offset by a weak business position. The company was formed as a result of the April 2007 merger of ADESA Inc. and Insurance Auto Auctions Inc. (IAAI). KAR is owned by privately held KAR LLC, which is controlled by Kelso & Co., Goldman Sachs Capital Partners, ValueAct Capital LLC, and Parthenon Capital. Total balance sheet debt at March 31, 2008, was $2.6 billion, including the senior credit facilities and...
Companies mentioned in this report are: KAR Auction Services Inc.
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Research Type: Full Analysis
KAR Auction Services Inc.