Mergers Alliance newsletter 31 august 2011Document Transcript
from NextWave Wireless Inc, a listed company engaged in Mid-‐Market M&A the development of next generation mobile broadband for US$ 111.6m. Snapshot... st Asia Mid-‐Market: 31 August 2011 Asian mid-‐market M&A recovered from last months collapse in volume. 30 deals took place (down 31% year on year) and M&A Outlook: Negative total deal value stood at US$3.6bn (down 16% from last year). Overall mid-‐market deal volume in the month of August stood The most high profile cross-‐border deal was the purchase of at 234 with total value equating to US$23.772bn. This is down baby nutrition business Wockhardt Limited by French food from August of 2010 when there were 338 deals (30.8% giant Danone SA for US$250m. The transaction marks decline) with a total deal value of US$31.347bn (24.2% drop) Danones entry to the Indian baby nutrition market. The majority of transactions this month took place in the financial services and healthcare sectors. EU Mid-‐Market: Deal malaise continued in the EU region as 68 deals took place compared to 104 during the same period last year Sector Focus: Despite economic uncertainty continuing to (38% drop) whilst total deal vale, at US$4.96bn, was also permeate the market, one industry that could be looked upon down from last year when it totalled US$7.99bn (38% drop). to buck the trend and yield solid M&A growth is the industrial technology sector. The growth premise is based on the One of the most notable mid-‐market deals was the purchase strength of corporate balance sheets with low-‐yielding cash of UK based television production company Shed Media by balances and large pools of undeployed private equity capital. multi-‐billion dollar media conglomerate Time Warner for a These technicals combined with the lack of organic growth consideration of US$172m. Apart from the UK, most of the create a favourable dynamic for M&A activity in the industrial EU deals were targeted at Germany and Spain. technology space. Macro Snapshot: The month of August ended on a somewhat Looking Ahead positive note in the US as markets rallied and gold pulled back. M&A in US utilities continues to gather pace. US$51bn of There is now a growing expectation that another round of deals for utility firms took place in H1 2011, the most stimulus, in the form of QE3, will be initiated by the Federal buoyant period since 2007. This can be partly attributed to Reserve. Consequently, expect to see another upswing in the shale gas boom, which has enabled gas production to precious metals whilst stocks should also rise in nominal rise and opened up economically viable reserves. It can also terms. In Europe manufacturing activity experienced a be attributed to utility firms looking to diversify their precipitous decline triggering fears that it might push the product portfolio, specifically into cleaner energies. Notable already precious economic bloc into a double-‐dip recession deals included Duke Energy US$13.7bn acquisition of Progress Energy and AES Dayton Power & Light for US$4.7bn. We expect foreign and private equity Regional Developments interest to drive M&A even further in this sector over the US Mid-‐Market: coming 18 months. The month of August saw 108 deals take place totalling US$13.4bn in value. This is down 24.4% year on year when New on Opinions there were 141 deals. Total deal value was also down 6.8% when it stood at US$14.4bn. A nation no longer governed by shopkeepers After a horrendous 2009, and marginal improvement in Some of the most noteworthy cross-‐border deals included the 2010, what can the corporate education and training acquisition of Jimlar Corporation, footwear companies by Li & Fung Limited, the listed Hong Click here to read the full report. Kong based export trading firm, foran estimated sum of US450m. Marriage of branded and private labels When private labels (PLs) were first introduced to the Elsewhere, NTT DoCoMo Inc, the listed Japan based mobile marketplace, it seemed like the marriage between branded telecommunications company, agreed to acquire the labels (BLs) and PLS would be one of mutual understanding -‐ PacketVideo Corporation, the US based wireless and digital BLs would focus on tier one and two consumers while PLs home multimedia software and service applications provider, would focus on tier three consumers. Click here to read the full report.
Mergers Alliance Transaction Highlights Award for rising Catalyst star Emmet Keating, Principal at MA UK partner advised Stefanutti Stocks Limited on the firm Catalyst, has won the accolade of acquisition of all the shares in issue of Cycad Finance Professional of the Year in leading Pipelines (Pty) Ltd, and its related properties. Midlands awards ceremony, Birmingham This company will propel Stefanutti Stocks to Young Professional of the Year. Emmet, the top of the list of contractors in the pipeline who joined Catalyst in 2006 and has construction sector in sub-‐Saharan Africa. Lead worked on market leading deals including advisor was Pieter Venter ScriptSwitch, Aim Aviation and AVF during his time with Catalyst, was presented with the award by Olympian Derek Redmond during a gala ceremony at Catalyst Corporate Finance advised Birminghams International Conference Centre HomeServe plc on the sale of its Retail Warranties Group to a management buy-‐out. HomeServe plc is the international home emergency insurance cover and domestic BroadSpan Capital expands across Brazil repair group with a market capitalisation of £1.7bn and 6,000 employees. Lead was Mark Humphries In the News Having gone from strength to strength, through a tough global economy, BroadSpan Capital, the Mergers Alliance Mergers Alliance partners feature in Thomson partner firm that covers Central America, South America and Financial list the Caribbean, have been through a period of significant expansion across Brazil. Responding to the massive growth, geographic size and regional cultural differences in the Brazilian market, BroadSpan has endeavoured to expand its coverage of Brazil through its Board of Advisors, consisting of ex-‐ Chairmen and senior level executives from industry. In addition to Rio de Janeiro and Sao Paulo, these individuals provide BroadSpan with a presence across the country, from Fortaleza in the Northeast to Porto Alegre and Joinville in the South, Goiania in the Center-‐West and Belo Horizonte in Southeast, giving BroadSpan excellent geographic coverage of the country as well as top level access to middle and large corporates across the country. Thomson Financial, one of resource, have issued their second quarter league tables for 2011, ranking corporate finance firms by number and value of deals. I am delighted to announce that this quarter shows a continued appearance in these tables by two Mergers Alliance members Daruma and Bluemind CF.