Experia and Mergers Alliance Autumn 2011


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Experia and Mergers Alliance Autumn 2011

  1. 1. M&A at a glance Autumn 2011News and views from the Mergers Alliance international partnership Foreign M&A in US up by 19% Against the backdrop of challenging economic conditions, our research shows the US remains an attractive destination for foreign investors. There has been an upswing in although there are still perceived cross-border M&A targeting US risks, the fact that economic firms from the same period last uncertainty has hit all four corners year. The first three quarters of of the globe means that the US 2011 saw activity rise by 19% in remains one of the more attractive volume while domestic M&A markets.” Andy Currie, Chairman activity (US companies buying US of Mergers Alliance companies) also increased, albeit Emerging market investors also with a slightly lower figure of 12%. increased their presence in UK to US cross-border activity America. For example there were“This is more a time for increased 23% while German 55 China-American deals, buyers in the US increased up 28% YOY.strategic fit and high visibility by 88% where interestingly therethan opportunism. The The conventional wisdom is that were a number of buys in USgeographic location is not the US is a safe haven during a utilities as well as renewable time of crisis, we expect this M&Athe primary factor, rather it energy companies, a sector that is uptrend to continue as overseasis fit and risk.” experiencing a decrease in state investors seek safety from the support domestically. temperamental global market.Phil Seefried “The rise in M&A is representativeCo-Founder and CEO of Mergers Alliance’s of the general US economy;US partner Headwaters. Latest Report out Now Our latest report Mergers Alliance next 18 months despite ongoing examines the cleantech sector. economic uncertainty. For more The new publication sets outs the information contact: cleantech M&A landscape across Mergers Alliance Research Manager 17 major economies and predicts Andre Johnston expanding M&A activity over the andrejohnston@mergers-alliance.com Or go to: www.mergers-alliance.com to download the report.
  2. 2. M&A at a glance News and EventsSouth Africa Cleantech Conference Topics included M&A opportunities in the South African cleantech On 16th -17th November, market, barriers and routes to Mergers Alliance held entry, funding and the current its bi-annual conference in global outlook for the cleantech Cape Town hosted by its South sector. African partner Bridge Capital. Coinciding with the conference, Key Speakers included: Gary the partner firms held a Cleantech Kendall, University of Cambridge - Seminar to mark the release of the Programme for Sustainable Mergers Alliance Cleantech Sector Leadership; Pieter Kriel, Thebe Report 2012. The seminar featured Energy & Infrastructure; Justine guest speakers from the cleantech Moore, Headstream Water and industry as well as from within Mark Wilson, Mergers Alliance. the partnership.Latest Deals within the partnershipIt has been a busy quarter for the partner firms at Mergers Alliance, with a large number ofcross border deals. These transactions cover a range of sectors as shown below and ofparticular interest was the sale of The Bombay Burmah Trading Corp’s non-core brandSunmica to Japan based Aica Kogyo Co, a firm with US$1.1 billion in revenue whichcontrols more than 60% market share in the Japanese decorative laminate market.Catalyst Corporate Finance advised Singhi Advisors advised The Bombay Headwaters advised HomeServe plc on the sale of its Burmah Trading Corp on the sale Windjammer Capital Investors Retail Warranties Group to a of its non-core brand Sunmica to on its acquisition of JWC management buy-out Japan based Aica Kogyo Co Environmental Northstar acted as advisor for theseller in the disposal of 100% of the Bridge Capital advised Capital Partner advisedshares of Solntse, the leading tortilla Stefanutti Stocks Limited on its French Group Schneider Electric manufacturer in Russia to GRUMA acquisition of Cycad Pipelines Ltd on the disposal of Controlli Srl, S.A.B of Mexico and its related properties a non core Italian subsidiary
  3. 3. M&A at a glance Country Focus M&A activity in Brazil remains bullish With over 553 transactions announced in the nine months to September 2011, Brazil has seen transaction values remain at the record levels of 2010. Due to the substantial consolidation opportunities in many sectors,“This positive M&A Of the announced transactions, Brazil’s M&A activity was spreadmomentum can be attributed circa 60% involved domestic across a large number of sectors.to Brazil’s economic stability, investors, which is in line with the Food & drink (F&D) continued to be previous year, although higher thanfull employment and the one of the most active sectors in 2009 and 2008. Interestingly, thereavailability and access terms of volume, with 49 appears to be an increasingto credit.” transactions for the first nine preference for 100% control months of 2011, a number transactions, which representedLeonardo Antunes comparible to the whole of 2010. circa 60% of deals in 2011.Managing Director, BroadSpan Capital BR Foods, formed from the merger of Sadia and Perdigão, acquired the Brazilian pork unit of Coperacampos for US$83 million. M&A Activity in Brazil from January to September Additionally, in October, the company acquired Avex and Grupo CAGR: 13.0% Danica, in Argentina for US$150 million, with both companies involved in the production and processing of chicken and pork.Transaction Value BR Foods has about US$2.2 billion in cash and continues to look for opportunities in the food industry to expand its operations through emerging markets, especially in Latin America. BroadSpan’s involvement in the F&D sector included advising Grupo Nacional de Chocolates on the US$40 million acquisition of Helados Bon. Acting as a consolidation agent in several sectors, private equity funds have been increasing their Leonardo Antunes investment rate and are becoming Managing Director, BroadSpan Capital increasingly relevant to the Brazilian Telephone: +5521 3873 8000 M&A landscape. In 2011, private E: lantunes@brocap.com equity participated in over 40% of deals as opposed to 10% in 2007.
  4. 4. International corporate financeMergers Alliance is a group of award winning corporate financespecialists who provide high quality advice to organisations who requireinternational reach for 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, Your local senior banker will always be your point MENA, Europe and Austral-Asia of contact, connecting you to our partnershipGlobal 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... Mergers Alliance Business Manager Mergers Alliance Research Manager Direct Line: +44 (0) 20 7881 2990 Direct Line: +44 (0)20 7881 2967 E: stasmichael@mergers-alliance.com E: andrejohnston@mergers-alliance.com www.mergers-alliance.com