M&A barometer Romania 2015

1. Romania
M&A Barometer
2015
IntroductionEY’s M&A Barometer is a
summaryand analysis of
publiclydisclosed information
accumulated from reputable
databases,such as DealWatch
and Zephyr.
M&A activity and data includes
private to private transactions
and excludes:
► Acquisitions ofminority
stakes below 15%
► Majority shareholder
further acquisition of
minorityinterest
► Real estate transactions
(except when the target
and/or buyer was a real
estate companyor real
estate fund)
► Capital market
transactions (exceptfor
transactions thatresulted
in a change of control)
► Acquisitions oflicenses
► Joint venture agreements
► Greenfield investments
► IPOs
► Privatizations
► Multi country deals (value
of these deals was
ignored in each country,
but the number was
counted in)
► Internal reorganizations
In our Mergers & Acquisitions (M&A) Barometer we analyze the prevailing trend in
Romanian transactions, as part of the regional context. Although the businesses under
review vary in size, background and economic growth, the market illustrates an increase in
M&A activity in terms of value when compared to 2014.
The highlights of the year are represented by an increasing amount of inbound transactions -
- with 60% of all deals and the shift from financial investors towards strategic ones. Also
noteworthy is that IT remained one of the most active target industries alongside Energy and
Mining, while in terms of value the largest transactions occurred in Banking and Financial
Services and Manufacturing segments.
Highlights – 2015
► Number of closed transactions in Romania: 123
► Estimated Romanian market size: USD 3.6bn
► Top three most active industries in Romania (by volume):
1. IT / Energy & Mining (13 deals)
2. Real estate (12 deals)
3. Services / Pharmaceuticals & Healthcare (11 deals)
► Top three most active industries in Romania (by average deal value):
1. Banking and Financial Services (USD 291.4m)
2. Retail & Wholesale (USD 99.0m)
3. Chemicals (USD 39.2m)
► Top 3 countries by number of transactions made in Romania: United States, Ireland,
United Kingdom
► Average deal size of deals over USD 100m: USD 442m
► Average deal size of deals below USD 100m: USD 21.1m
► Disclosure rate of transaction value or deal size: 39%*
*Applying this disclosure rate we estimated the total transaction value of the M&A market.

2. Estimated market value for 2015
The 2015 estimated transaction value in Romania increased
to USD 3.65bn, up with 22% from the previous year.
Transaction value was disclosed for 48 deals, resulting in a
disclosure rate of 39%.
Direction of transactions
The Romanian transaction market was, in 2015, dominated by
inbound transactions with 60% of total number of deals, a
slight increase in number when compared to 2014, while both
domestic transactions and outbound transactions decreased
compared to the same period of the last year.
Sector analysis
The IT and Energy & Mining sectors were the most active
target industries (by number of transactions), accounting for 13
deals each in 2015. They were followed by Real Estate (12
deals) and Services and Healthcare industries (11 deals
each).
In terms of value, the largest transactions occurred in the
Banking and Financial services sector (c. USD 771m),
followed by the Manufacturing sector (c. USD 439m).
.
Most active inbound investors
In 2015, out of a total of 73 inbound transactions, the largest
number came from the United States with 7 transactions
representing 10% followed by Ireland and the UK with 8%
each, while in 2014 the most active inbound investors came
from Austria and Germany (8%).
Buyers profile – Strategic and financial
Deals closed by strategic investors in 2015 represented 83%
of total disclosed deals, up by 36% compared to the previous
year, a trend that was reflected also in the whole CSE region.
The financial investors represent 17% out of the total
transactions, decreasing from its spike of 53% in 2014.
7
6
6
0 2 4 6 8
US
IE
GB
Numberoftransactions
Most active inbound investors
71
100
10
73
41
7
0
20
40
60
80
100
120
Inbound Domestic Outbound
Numberoftransactions 2014 2015
11%
11%
10%
9%
9%8%
8%
7%
6%
5%
5%
4%
4%
2%2% 1% 1%
Industry classification by deal volume
Energy and mining IT
Real Estate Services
Pharmaceuticals and health care Manufacturing
Agricultural Banking and Financial services
Food & beverages Transportation & Logistics
Telecom & media Retail & Wholesale
181
123
66
48
3bn
3.6bn
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
50
100
150
200
2014 2015
USDm
Numberoftransactions
Number of transactions
Number of deals with disclosed deal value
Estimated market size (USDm), excluding cross-border
85 100
96
21
2
0
50
100
150
200
2014 2015
Numberoftransactions
Strategic Financial Other
Note: At the moment of the analysis preparation, two transactions in 2015 had undisclosed
buyers

3. Top 10 largest transactions in Romania in 2015
No. Target company Buyer company Country of target Country of
buyer
Value USDm
1 UniCredit Tiriac Bank UniCredit SpA RO IT 771*
2 LafargeHolcim- assets CRH RO IE 439*
3 Regina Maria Mid Europa Partners RO UK 148*
4 Pehart Tec Abris Capital Partners RO PL 112
5 Auchan Titan shopping centre
in Bucharest
New Europe Property
Investments plc
RO ZA 99
6 North Star Shipping SRL Archer Daniels
Midland Co (ADM)
RO US 95
7 Volksbank Romania SA Banca Transilvania SA RO RO 89
8 Bucharest West Industrial
Park
CTP Invest spol sro RO CZ 66
9 McDonald's Romania SRL Premier Capital RO ML 54
10 Nusco Tower SRL Kifeni Investments Ltd RO CY 50
Source: DealWatch, Zephyr and EY analysis
Florin Vasilică
Partner, Transaction Advisory Services
Tel: +40 21 402 4000
Fax: +40 21 310 7123
Mobile: +40 725 354 997
Mail: florin.vasilica@ro.ey.com
Ioana Mihai
Corporate Finance Executive Director
Tel: +40 21 402 4000
Fax: +40 21 310 7123
Mobile: +40 733 775 285
Mail: ioana.mihai@ro.ey.com
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acquisitions, finance raise) from inception until completion, undertaking the management of the entire transaction process
and covering a full range of professional services (i.e. due diligence, valuation, business modeling, transaction support,
transaction structuring, financial advisory).
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Contact
*Note: as the transaction value was not publicly disclosed,an estimation from specialized sources in the marketwas used
Florenţa Birhala
M&A Manager, TAS
Tel: +40 21 402 4000
Fax: +40 21 310 7123
Mobile: +40 735 312 071
Mail: florenta.birhala@ro.ey.com