
RJR Nabisco
Kohlberg Kravis Roberts · 1986
The RJR Nabisco deal was a $25 billion leveraged buyout led by KKR in 1988 — the largest in history at the time. KKR’s $109-per-share bid prevailed over RJR management’s $112 offer because it was guaranteed. The transaction relied on institutional equity co-investors and a hostile tender offer. Post-acquisition, KKR repaid debt through asset sales and restructuring. Over 2,000 workers lost their jobs, most taking 5.6 months to find new work, and 72% who were rehired earned less than half their previous incomes.