Nordic Report, Q1 2012
The following report details mergers and acquisitions activity in the Nordic Region in Q1 2012 using data from the Zephyr database. It focuses on deal activity by target company. Click here to access the raw data in an Excel spreadsheet. 2012 gets off to a negative start as volume and value fall The first quarter of 2012 saw dealmaking in the Nordic region down on Q4 2011, with value slipping 35 per cent from EUR 14,871 million to EUR 9,602 million. There were also fewer deals in the period under review, with 802 transactions recorded as against 1,115 in the previous quarter. Figures were also down on the year-ago period, when 948 deals with an aggregate value of EUR 14,728 million were done. In fact, the numbers are the lowest they have been since Q3 2010. Echoing this downward trend, only two deals this quarter exceeded EUR 1,000 million in value, compared with the five deals that topped this amount in Q4 2011. Deals by volume and value Announced date No of deals Q1 2012 802 9,602 Total deal value Q4 2011 1,115 14,871 Q3 2011 868 9,740 Q2 2011 1,024 23,901 Q1 2011 948 14,728 Q4 2010 819 21,373 Q3 2010 683 7,893 Q2 2010 922 8,700 Q1 2010 845 9,259 Page 1
Nordic deals by volume and value 30,000 1,200 Deal value 25,000 20,000 15,000 10,000 1,000 800 600 400 5,000 200 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 0 Total deal value Number of deals Page 2
Ahlsell IBO was the quarter s biggest deal The largest private equity transaction of the period was also the highest value deal overall, as UK buyout house CVC Capital Partners announced the acquisition of Swedish tools and machinery supplier Ahlsell for EUR 1,800 million. The only other deal surpassing the EUR 1,000 million mark was a rights issue by Finnish steel and copper products business Outokumpu, valued at EUR 1,006 million. The offer comprised the issue of shares on a 7-for-1 basis at a price of EUR 0.79 apiece, equating to an 87 per cent stake in the listed company. For the second quarter in a row, Finland leads on volume, Sweden on value In a repeat of last quarter, Q1 2012 saw Finland top the table for the number of deals done in the country, with Sweden again leading in value. Despite being top, deals targeting Finnish companies were fewer in the period under review, with 291 transactions compared to 476. Likewise for Sweden, despite chalking up deal value of EUR 3,840 million this quarter, the figure was down on Q4 2011 when it stood at EUR 5,796 million. Dealmaking targeting Norwegian companies experienced the biggest loss this quarter, with just 171 transactions valued at EUR 1,518 million recorded, compared with 220 deals worth an aggregate of EUR 4,194 million last quarter. Page 3
Nordic Region top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 1,800 IBO 100% Ahlsell AB SE CVC Capital Partners Ltd GB 29/02/12 2. 1,006 Acquisition 87% Outokumpu Oyj FI 31/01/12 3. 783 Minority stake 16% TDC A/S DK Institutional Investors 13/02/12 4. 557 Minority stake 26% Chr Hansen Holding A/S DK Novo A/S DK 11/01/12 5. 511 Acquisition 100% NKT Flexibles I/S DK National Oilwell Varco Inc. US 03/02/12 6. 451 Minority stake 2% TeliaSonera AB SE Institutional Investors 20/03/12 7. 451 Minority stake 2% TeliaSonera AB SE Institutional Investors 21/03/12 8. 274 Acquisition increased from 50% to 100% TV 2 AS NO Egmont International Holding A/S DK 09/01/12 9. 216 Minority stake Elekta AB SE 05/03/12 10. 211 Acquisition 100% Kverneland ASA NO KUBOTA Norway Holdings AS NO 05/01/12 11. 181 Acquisition increased from 71% to 92% DNA Oy FI Ilmarinen Mutual Pension Insurance Company FI 23/02/12 12. 161 Acquisition increased from 33% to 92% Fornebu Utvikling ASA NO Oslo Bolig- og Sparelag NO 31/01/12 13. 161 Minority stake increased from 4% to 5% Sandvik AB SE Swedbank Robur Fonder AB SE 23/01/12 14. 157 Minority stake 9% Jyske Bank A/S DK Institutional Investors 01/03/12 15. 133 Minority stake 4% DSV A/S DK BlackRock Inc. US 03/02/12 16. 131 Acquisition Sanoma Oyj's R-Kioski operations in Finland, Lithuania and Estonia 17. 130 Acquisition 100% UPM-Kymmene Oyj's packaging paper production business FI Reitangruppen AS NO 05/03/12 FI Billerud Finland Oy FI 01/02/12 18. 123 Acquisition 50% Spar Nord Bank A/S DK 05/03/12 19. 120 Minority stake Cloetta AB SE 07/03/12 20. 109 Minority stake Sparebank 1 Boligkreditt AS NO 03/01/12 Page 4
Nordic Region top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 1,800 IBO 100% Ahlsell AB SE CVC Capital Partners Ltd 29/02/12 2. 557 Minority stake 26% Chr Hansen Holding A/S DK Novo A/S 11/01/12 3. 33 IBO Expert AS NO AWilhelmsen Capital AS 02/02/12 4. 26 IBO 100% Jeeves Information Systems AB SE Battery Management Corporation 26/03/12 5. 22 IBO 100% Nordic Tankers A/S' chemical tanker activities DK Triton Advisers (Nordic) AB 27/03/12 6. 16 Minority stake 10% Tobii Technology AB SE Intel Capital Corporation 15/03/12 7. 10 Minority stake BabySam A/S DK Polaris Management A/S; AAC Capital Partners Holding BV 24/02/12 8. 9 Minority stake Videoplaza AB SE Northzone Ventures AB; Innovacom Venture Capital; QUALCOMM Ventures; Creandum Advisor AB 9. 7 Minority stake BerGenBio AS NO Sarsia Seed Management AS; Investinor AS 04/01/12 10. 5 Minority stake ForgeRock AS NO Accel Management Company LLC 02/03/12 11. 5 Minority stake Galecto Biotech AB SE Novo A/S; Merck Serono Ventures 02/01/12 12. 5 Minority stake increased from 5% to 10% FinnvedenBulten AB SE Volito AB 31/01/12 13. 5 Minority stake increased to 6% Atlas Copco AB SE Capital Research & Management Company 24/01/12 14. 4 IBO 10% Aldata Solution Oyj FI Symphony Technology Group LLC 15/02/12 15. 4 Minority stake Leox Holding AB SE AGS Capital Group LLC 02/02/12 16. 4 Minority stake The Online Backup Company AS NO Northzone Ventures AB 02/01/12 17. 3 Minority stake increased to 5% Statoil Fuel & Retail ASA NO Capital Research & Management Company 06/01/12 18. 3 Minority stake 38% Boost Communications AS NO Televenture Management AS; Investinor AS 26/02/12 19. 3 Minority stake Footway AB SE Industrifonden; eequity 25/01/12 20. 3 Minority stake 27% Hansa Medical AB SE NXT2B 25/01/12 01/02/12 Page 5
Private Equity doesn t fare any better Continuing the trend for declining figures in the region, private equity deal activity also fell in both volume and value this quarter, with 68 transactions valued at EUR 2,541 million compared with 72 deals worth an aggregate EUR 3,667 million in Q4 2011. The Ahlsell buyout by CVC did at least mark the highest value deal involving a Nordic country. The acquisition of a 26 per cent stake in Danish food ingredients maker Chr. Hansen by Novo was the second-highest private equity transaction, worth EUR 557 million. Private equity deals by volume and value Announced date No of deals Q1 2012 68 2,541 Q4 2011 72 3,667 Q3 2011 72 2,524 Q2 2011 83 3,312 Q1 2011 86 2,491 Q4 2010 91 2,540 Q3 2010 75 2,168 Q2 2010 64 1,184 Q1 2010 57 1,258 Total deal value Page 6
Nordic private equity deals by volume and value Deal value 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 100 90 80 70 60 50 40 30 20 10 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 0 Total deal value Number of deals Page 7
Deal types by volume in Q1 2012 Deal types by volume Acquisition Minority stake IBO Merger MBO Demerger Deal type Q1 2011 Q4 2011 Q1 2012 Acquisition 635 807 524 Minority stake 274 266 242 IBO 25 20 24 Merger 12 12 6 MBO 3 11 4 Demerger 2 0 2 Deal types by value Deal types by value in Q1 2012 Deal type Q1 2011 Q4 2011 Q1 2012 Minority stake 8,387 2,340 4,472 Minority stake Acquisition IBO Acquisition 4,182 10,336 3,244 IBO 2,234 2,181 1,886 Page 8
Target sectors by volume Target sectors by value Target sector Q1 2011 Q4 2011 Q1 2012 Target sector Q1 2011 Q4 2012 Q1 2012 Other services 370 429 333 Machinery, equipment, furniture, recycling 116 121 97 Wholesale & retail trade 126 143 91 Construction 53 58 57 Banks 35 58 39 Transport 32 43 28 Hotels & restaurants 17 26 24 Primary sector 34 25 23 Chemicals, rubber, plastics 33 33 23 Education, health 35 46 20 Publishing, printing 27 39 19 Metals & metal products 33 35 18 Food, beverages, tobacco 23 22 16 Wood, cork, paper 21 20 10 Insurance companies 1 6 5 Gas, water, electricity 14 18 5 Textiles, wearing apparel, leather 3 2 3 Public administration and defence 0 0 1 Post and telecommunications 2 3 0 Other services 1,838 3,384 2,716 Wholesale & retail trade 600 463 2,124 Metals & metal products 221 221 1,178 Chemicals, rubber, plastics 2,488 981 1,092 Machinery, equipment, furniture, recycling 2,937 1,558 939 Banks 5,598 1,975 646 Construction 136 453 281 Transport 87 1,442 187 Food, beverages, tobacco 33 144 173 Wood, cork, paper 160 18 146 Primary sector 369 1,693 68 Insurance companies 0 762 31 Gas, water, electricity 122 1,749 12 Publishing, printing 98 237 9 Hotels & restaurants 2 3 4 Textiles, wearing apparel, leather 0 0 2 Education, health 40 0 0 Post and telecommunications 0 0 0 Public administration and defence 0 0 0 Page 9
Countries by volume Target country Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Finland 329 388 351 476 291 Sweden 297 335 261 302 256 Norway 220 195 158 220 171 Denmark 103 110 99 117 85 Countries by value Target country Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Sweden 6,944 10,738 3,805 5,796 3,840 Denmark 3,709 7,747 1,634 2,439 2,430 Finland 803 1,434 575 2,442 1,814 Norway 3,272 3,984 3,741 4,194 1,518 Page 10
Notes to editors Activity is based on the activity of the target company for firms in Sweden, Norway, Finland and Denmark Deal status is announced within the time period The sector breakdown uses targets activities as defined to be Major Sectors by Zephyr Q3 2011 date range is from 01/01/2012 to 29/03/2012 inclusive Page 11