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Mergers Alliance newsletter 31 august 2011
 

Mergers Alliance newsletter 31 august 2011

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    Mergers Alliance newsletter 31 august 2011 Mergers Alliance newsletter 31 august 2011 Document 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.