10 Most Successful LBOs and Private Equity Buyouts in History

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8. Gulfstream Aerospace

Year: 1990
Nominal value: $850 million
Value in 2017 dollars: $1.63 billion
Buyer: Forstmann Little

In 1990, Gulfstream was struggling. Its owner Chrysler decided to put it up for sale and Forstmann Little, in partnership with Gulfstream CEO Allan Paulson, decided to step in. They acquired the company for $850 million, most of which was borrowed. In the following years, Gulfstream focused on developing the Gulfstream V and G550, which proved to be one of the most successful business jet models of all time. IT cemented the company as the undisputed leader in the long-range business jet market, with some 60% market share. Forstmann Little sold Gulfstream to General Dynamics Corporation (NYSE:GD) in 1999 for $4.6 billion, making a tidy profit on its investment. General Dynamics Corporation (NYSE:GD) remains Gulfstream Aerospace’s parent company to this day.

10 Most Successful LBOs and Private Equity Buyouts in History

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