TPG’s Purchase of JVC Faces Roadblock
The attempt by U.S. private equity firm Texas Pacific Group (TPG) to purchase JVC has hit a roadblock, Reuters reported Wednesday.
At issue is TPG’s inability to come up with funding for the purchase of the CE manufacturer, due to the reluctance of banks to finance the $560 million purchase price.
The Japanese conglomerate Matsushita Electric Industrial Co. has owned a majority stake in JVC since 1953. TPG entered an agreement to purchase JVC in March, after Cerberus Capital Management and Kenwood USA both backed out of the bidding. It is possible, Reuters reported, that those firms could re-enter the bidding for JVC should the TPG deal fall apart.