THE THRIVING LBO Since Houdaille Industries went private in 1979 in the first major leveraged buyout (LBO) of a public company, the LBO has become a standard financing tool. At a time when few LBOs ever passed the $100 million mark, the $355 million Houdaille Industries deal marked the origin of a new market. The LBO business has prospered, perhaps beyond even its founder's wildest dreams. The total market has grown from $2.9 billion in 1981 to $16.7 billion in 1985. And, last year, Beatrice Co was taken private by the LBO specialist firm, Kohlberg Kravis Roberts, in a record transaction totalling $6.2 billion.
January 07, 1986