John Lynch, CEO of Westinghouse division Dressen was delighted by the proposed leveraged buyout by private equity firm Warburg Pincus Ventures. Redemption would get rid of the division of a “bad” parents and place the fate of the division in their own hands. A restructuring plan presented recently looked to improve profitability, but recovery was in its infancy. Me funding sources to support a financing plan that relied heavily on debt? Warburg Pincus Ventures, would be willing to pay a sufficient price to win the bidding contest?
Thomas R. Piper
Source: Harvard Business School
Release: June 11, 2007. Prod #: 207125-PDF-ENG
Dressen (short) (A) Case Solution