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Someday, Bain might own almost everything

Who is Bain Capital and why is it trying -at least it seems that way - to buy a piece of every company on earth?

By Robert Trigaux, Times Business Editor
Published June 25, 2007

There once was a buyer named Bain,

"Buy more companies!" was its constant refrain.

Clear Channel, Outback, no targets it lacked,

Before getting rich taking them all public - again.

Who is Bain Capital and why is it trying -at least it seems that way - to buy a piece of every company on earth? Bain is hardly the only investment firm busy taking substantial stakes in corporations. But the pace at which Bain is gobbling public companies and taking them private is startling. Now it's the biggest powerhouse takeover firm you've never heard of.

A quick primer on Boston-based or is it Boston-baked? Bain Capital:

- This is the investment firm that this month completed the vote-challenged purchase of Tampa's OSI Restaurant Partners - the parent of Outback Steakhouse, Carrabba's and Bonefish Grill, among other chains - and by doing so took Tampa Bay's best known, public company private.

- This is the same firm that's partnered to buy radio giant Clear Channel Communications. The same firm that just last week made an offer to Home Depot to buy its HD Supply wholesale business. The same firm that teamed up in a megadeal last year to buy the HCA hospital chain for $33-billion.

- This is the same firm that's had stakes in hundreds of companies, including Ameritrade, Burger King, DoubleClick, Gartner Group, Vonage, Toys "R" Us, Brookstone, Sealy, Sports Authority and Domino's Pizza (now you know how Domino's founder Tom Monaghan got rich enough to start his own "Catholic" town, Ave Maria, in Florida near Naples.)

- In Tampa, its holdings have included Imerica (health insurance) and T.R.A.D.E. Inc. (export/import trade data).

- Two years ago, Bain was one of two investment firms offering to buy the National Hockey League for $3-billion. Teams would have been run like franchises similar to the fast-food industry. It did not happen.

- This is part of the same Bain & Co. whose former "Bainies" include eBay CEO Meg Whitman and American Express chief Ken Chenault. Big on brand rebuilding, Bain says "there are no tired brands, just tired managers."

- This is the same firm that turned Bain Capital meister Mitt Romney into a Republican presidential contender and the richest candidate with personal wealth of some $350-million. (If billionaire New York Mayor Michael Bloomberg pursues the presidency, all bets are off.)

Romney was a Bain Capital cofounder and served as its CEO and managing partner for many years. So, in a roundabout way, you might say it's Mitt's fault if you don't like the Bain Blitzkrieg of takeover activity. The firm's gotten pretty good at what it does. And the numbers are enormous.

One analyst estimates the value of "private equity" deals - fueled by the deep pockets of Bain and similar firms like Texas Pacific Group, Carlyle and Blackstone Group - at an amazing $200-billion. That's only for deals in the first quarter of 2007.

Bain. Remember the name.

Robert Trigaux can be reached at trigaux@sptimes.com or (727) 893-8405.

[Last modified June 22, 2007, 22:46:09]