M&A at a glance Spring 2012News and views from the Mergers Alliance international partnership Japan booms in record year for Asian industrial M&A New research from Mergers Alliance reveals a significant rise in M&A in the Industrials market in recent months, led principally by Japan. In total, Asia Pacific experienced mature markets like Japan, foreign a record year in industrial M&A in firms are increasingly acquiring mid- 2011 (industrial in this context market companies with established includes capital goods, relationships with major domestic transportation and industrial corporates” said Owen Hultman, services). Deal volumes saw a jump Executive Vice President of Mergers of 16% year on year, rising 6.5% Alliance’s Japanese partner IBS. compared to the previous record year of 2007. Outbound M&A in the industrials market also rose considerably Of the approximately 1,500 deals in Japan in 2011, transaction across Asia, China was the most numbers nearly doubling year on active country with 360, a rise of year. “We see this trend continuing 17% on last year. In terms of as Japanese industrials take“The strong yen has volume growth though, Japan advantage of the strong yen andbenefited many Japanese nearly doubled its number of seek outbound acquisitions to entercorporates this year and deals, in spite of the impact overseas markets. One of my mostled to a significant rise in of the Fukushima earthquake. recent deals, Taikisha’s acquisitionoutbound M&A.” of Italian corporate Geico Spa, “Industrial M&A in high growth is a good example of this trend”Owen Hultman countries such as China has been Owen concluded.Executive Vice President, IBS rising for years. However, we are now seeing that even in more Latest Report Out NOW News and views from the Mergers Alliance international partnership Our latest Global sector report It also examines the impact that focuses on consumer goods with multi-channel sales strategies are a particular emphasis on brands. having on investment activity. Our analysis shows that transaction Contact Andre Johnston at: levels in consumer M&A have firstname.lastname@example.org (perhaps surprisingly) been on for more information or go to: an upward trend since the global downturn in 2009. www.mergers-alliance.com to download the report.
News and EventsParis Mergers Alliance Conference Between the 13th and 15th of international client base to April, Mergers Alliance will be discuss acquisition opportunities. holding its Spring conference Confirmed speakers include senior in Paris. The event will be executives from industrial gas giant Air Liquide. hosted by our French colleagues Capital Partner. For more information contact Stas Michael, Mergers Alliance Mergers Alliance has invited a Business Manager at number of speakers from its email@example.comLatest Deals within the partnershipIn the last quarter, the Mergers Alliance partners have been active across a number of sectors.Headline deals already this year include: France India USA Capital Partner advised Groupe Singhi Advisors advised Maharaja Headwaters advised Newport Gorgé on development capital Whiteline Industries on the sale to on its acquisition of funding of €115m France-based Groupe SEB Israel-based leading infra-red optics group Ophir United Kingdom Spain Japan Catalyst advised Scottish Norgestion advised Seguriber IBS Yamaichi Securities advised Friendly Insurance Services on its acquisition of Taikisha Ltd on its acquisition on its sale to Citibank Global Umano Group of a majority stake in Italy Transaction Services based Geico Spa
Country Focus Surge in Spanish cross-border M&A 2011 has been the most active The number of Spanish companies year for Spanish M&A since the investing overseas meanwhile also outbreak of the financial crisis grew over the past year. In 2011, in late 2008, driven largely by an 70 deals were completed, a 23% rise on the 57 in 2010. increase in cross-border deals. Companies like CIE Automotive The number of Spanish corporates (auto parts manufacturer), Ebro bought by foreign companies in Foods (a world leader in the rice 2011 accounted for 108 deals sector) and Orona (elevator (nearly a quarter of all deals maintenance and installation) have completed in Spain), an increase all been highly acquisitive as they of 24% compared to 2010. attempt to expand their overseas“We are seeing increased German, French and American operations to mitigate the effectsinterest in Spanish assets companies in particular have taken of challenging domestic conditions.as managements teams cut advantage of the troubled macro Domestic deals though have economic conditions in Spain,unrealistic price valuations.” remained relatively flat, due partly acquiring new technologies and to the difficulty in obtaining bankAlvaro Quintanilla market share at attractiveNorgestion finance and also due to many valuations. corporates preoccupation with One example of this was the simply survival rather than growth. takeover of Telvent, a Spanish IT Looking ahead, Spain’s budget solutions and business information reduction policies should help to provider, which the French blue chip restore confidence in the economy Schneider Electric bought in a deal in the short to medium term. This worth €1.4 billion. should boost local M&A activity In the mid-market, deals include going forward. German Wincor Nixdorf AG’s Alvaro Quintanilla acquisition of financial software Norgestion company Dynasty Technology Group for €50 million and UK based Logica’s acquisition of software and consultancy firm Grupo Gesfor for €32 million. Download our latest Industry Insight Our new research report focuses on the European plastic packaging industry, drawing on the knowledge and expertise of the Mergers Alliance Global Industrial Team. The report is available to download at www.mergers-alliance.com
International corporate financeMergers Alliance is a partnership of award winning corporate finance specialistsproviding high quality advice to organisations who require international reachfor their M&A strategies. Over 250 transaction professionals based across Dedicated industry sector teams, with proven every key economic location around the world track records and experience 42 office locations, covering the Americas, Europe, Middle East, Africa, Asia and AustralasiaGlobal coverage Australia Finland Poland Austria France Russia Belgium Germany Singapore Brazil India South Africa Bulgaria Italy Spain Canada Japan Sweden China Luxembourg Switzerland Colombia Mexico Turkey Czech Republic Netherlands UK Denmark Norway USA Stas Michael Andre JohnstonContact Us... Business Manager Research Manager Direct Line: +44 (0) 20 7881 2990 Direct Line: +44 (0) 20 7881 2967 E: firstname.lastname@example.org E: email@example.com www.mergers-alliance.com