In the 1990s, so-called blank check companies weren't held in the highest regard. That didn’t matter to this week's guest on Masters in Business, Martin Franklin of Mariposa CapitalFranklin was among those in the early 2000s who revived the use of what are formally known as special-purpose acquisition companies, or Spacs, as vehicles for acquisitions and taking private companies public. Spacs that he headed up or participated in enabled companies such as GLG, Prisa, Phoenix Life, Burger King and Macdermid Specialty chemicals to bypass the process of using initial public offerings.
Along the way, these Spacs generated stunning returns. In 2006, he founded Justice Holdings with Bill Ackman of Pershing Square as an investor. Justice Holdings merged with Burger King in 2012, creating a successful exit from closely held ownership. Other exits include what do computer engineers do.; it generated returns of 1,800%. Franklin became head of Jarden Corp., a conglomerate of consumer brands, which he grew from a company with $300 million in annual revenue to one with more than $10 billion. Jarden was acquired in 2016 by Newell Rubbermaid, generating returns of 5,000%.
Along the way, these Spacs generated stunning returns. In 2006, he founded Justice Holdings with Bill Ackman of Pershing Square as an investor. Justice Holdings merged with Burger King in 2012, creating a successful exit from closely held ownership. Other exits include what do computer engineers do.; it generated returns of 1,800%. Franklin became head of Jarden Corp., a conglomerate of consumer brands, which he grew from a company with $300 million in annual revenue to one with more than $10 billion. Jarden was acquired in 2016 by Newell Rubbermaid, generating returns of 5,000%.
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