In a recent transaction, entities associated with KKR & Co. Inc. have sold a substantial number of shares in BrightView Holdings , Inc. (NYSE:BV), a leading company in the commercial landscaping services industry. The sale involved 17,500,000 shares at a price of $12.48 per share, totaling approximately $218.4 million.
The entities involved in the sale include KKR BrightView Aggregator L.P., KKR BrightView Aggregator GP LLC, KKR North America Fund XI L.P., KKR Associates North America XI L.P., and KKR North America XI Ltd, all of which are related through a complex ownership structure. The transaction was part of a secondary public offering, with the price per share reflecting the offering price minus an underwriting discount.
Following the transaction, these KKR entities still hold a combined total of 33,133,123 shares of BrightView Holdings, Inc. It should be noted that the shares are held indirectly, and the reporting entities have disclaimed beneficial ownership of the securities except to the extent of their pecuniary interest.
The intricate relationship among the selling entities is as follows: KKR BrightView Aggregator L.P.'s general partner is KKR BrightView Aggregator GP LLC, whose sole member is KKR North America Fund XI L.P. This fund's general partner is KKR Associates North America XI L.P., which in turn is managed by KKR North America XI Limited. The sole shareholder of KKR North America XI Limited is KKR Group Partnership L.P.
Further up the chain, KKR Group Holdings Corp., as the general partner of KKR Group Partnership L.P., is linked to KKR & Co. Inc., which is the sole shareholder of KKR Group Co. Inc. KKR Management LLP, with Henry R. Kravis and George R. Roberts as founding partners, holds the Series I preferred stock of KKR & Co. Inc. Each reporting entity has disclaimed beneficial ownership of the reported securities, except for their pecuniary interest, and this filing is not an admission that they are beneficial owners for the purposes of Section 16 of the Securities Exchange Act of 1934 or otherwise.
Investors and market watchers often view such transactions as indicators of the selling entities' views on the stock's future performance, although the specific motivations behind this sale are not disclosed. The sale was signed off by Christopher Lee, Assistant Secretary for each of the reporting entities.
BrightView Holdings, Inc. specializes in commercial landscaping services, a sector that has experienced growth in recent years. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol BV.
InvestingPro Insights
Amidst the news of KKR & Co. Inc.'s substantial share sale in BrightView Holdings, Inc. (NYSE:BV), the market is keen on understanding the current financial health and future prospects of the commercial landscaping leader. According to InvestingPro data, BrightView Holdings boasts a market capitalization of $1.33 billion, indicating a significant presence in its industry. The company's P/E ratio currently stands at 44.78, suggesting investors are willing to pay a higher price for earnings, potentially due to expectations of future growth.
An interesting metric to consider is the company's Price to Earnings Growth (PEG) ratio over the last twelve months as of Q2 2024, which is at 0.16. This low PEG ratio may imply that the company's earnings growth is not fully reflected in its current stock price, presenting a potentially attractive opportunity for investors. Additionally, BrightView's stock has had a notable performance with a 1 Year Price Total Return of 109.99%, reflecting strong investor confidence and market performance.
InvestingPro Tips highlight that analysts are optimistic about the company's future, with three analysts having revised their earnings upwards for the upcoming period, signaling potential for continued financial improvement. Moreover, the company is expected to be profitable this year, reinforcing the positive outlook. For investors looking to delve deeper into BrightView's potential, InvestingPro offers additional tips and metrics, including 13 more InvestingPro Tips that can be accessed at https://www.investing.com/pro/BV. Interested readers can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
Overall, the recent transaction by KKR entities might stir discussions among investors, but the solid fundamentals and positive analyst revisions for BrightView Holdings suggest a company poised for growth, making it a noteworthy consideration for potential investors.
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