Apollo Global Management has completed its acquisition of publicly traded Outerwall, Inc. for approximately $1.6 billion.
Outerwall (formerly Coinstar, Inc.) operates a network of movie and video game rental kiosks, coin-cashing machines, and consumer electronic recycling kiosks. Coinstar offers self-service coin-counting at almost 20,000 kiosks where consumers can convert their coins to cash or to other stored value products such as gift cards. Coinstar processes more than $3 billion of coins annually. The company also owns the Redbox DVD rental service which provides new-release movie and video-game rentals through a national network of almost 40,000 self-service kiosks. Outerwall also operates ecoATM which has 2,400 kiosks where consumers can recycle their old cell phones, MP3 players and tablets for cash. The company was founded in 1991 by Jens Molbak and Dan Gerrity and began trading publicly in July 2013. Outerwall is headquartered in Bellevue, WA (www.outerwall.com) (www.coinstar.com) (www.redbox.com) (www.ecoATM.com).
With the closing of this transaction, Apollo has announced that the company’s three business groups will be managed and operated as three separate businesses. Galen Smith was named the Chief Executive Officer of Redbox, and James Gaherity and David Maquera were promoted from serving as Presidents to Chief Executive Officers of the Coinstar and ecoATM businesses, respectively. In connection with the closing of the transaction, Erik Prusch, Chief Executive Officer of Outerwall, will be leaving the company. David Sambur, a partner at Apollo, led the Outerwall transaction.
Apollo has total assets under management of $186 billion in private equity, credit and real estate funds invested across a core group of nine industries: chemicals; commodities; consumer & retail; distribution & transportation; financial & business services; manufacturing & industrial; media, cable & leisure; packaging & materials; and satellite & wireless. The firm has offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai (www.agm.com).
Morgan Stanley & Co. was the financial advisor to Outerwall. LionTree Advisors, Bank of America Merrill Lynch, Barclays, Credit Suisse and Jefferies served as financial advisors to Apollo.
© 2016 Private Equity Professional • 9-30-16
