The following report details mergers and acquisitions activity in Western Europe in February 2016 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. M&A value up while volume declines month-on-month There were 1,498 mergers and acquisitions (M&A) deals worth an aggregate EUR 85,793 million targeting Western European companies announced in February. In terms of value this represents a considerable increase on January, while volume dropped 27 per cent over the same timeframe. Year-on-year the result was less impressive as both volume and value were down on February 2015, when 1,907 deals worth EUR 117,754 million were signed off. A few significant transactions compensated for declining volume in February as ten deals broke the EUR 1,000 million-barrier. One of these even came close to the EUR 40,000 million mark. This marks a significant improvement on January, when the largest deal announced was worth just EUR 1,990 million and only four transactions were worth EUR 1,000 million or above. Deals by volume and value Announced date No of deals Total deal value Feb-16 1,498 85,793 Jan-16 2,049 32,131 Dec-15 2,171 66,657 Nov-15 2,379 386,545 Oct-15 2,259 60,113 Sep-15 2,296 77,182 Aug-15 1,762 147,572 Jul-15 2,605 128,507 Jun-15 2,532 113,247 May-15 2,169 111,941 Apr-15 2,124 175,106 Mar-15 2,319 136,629 Feb-15 1,907 117,754 Page 1
Deals by volume and value Deal value 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 3,000 2,500 2,000 1,500 1,000 500 0 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 0 Aggregate deal value Number of deals Page 2
Expanded EU of 28 countries deals by volume and value Announced date No of deals Total deal value Feb-16 1,721 41,358 Jan-16 2,439 30,164 Dec-15 2,526 61,981 Nov-15 2,675 385,806 Oct-15 2,476 51,600 Sep-15 2,566 73,615 Aug-15 1,956 143,745 Jul-15 2,896 122,045 Jun-15 2,914 111,934 May-15 2,504 108,035 Apr-15 2,470 173,627 Mar-15 2,635 128,948 Feb-15 2,244 108,834 Page 3
China National Chemical s Syngenta acquisition is February s largest deal The most valuable transaction announced during February was worth EUR 39,359 million and took the form of an acquisition of Swiss pesticides maker Syngenta by China National Chemical Corporation. Closing remains subject to regulatory approval and is expected by the end of 2016. The month s second largest deal was significantly smaller as Dutch pharmaceuticals player Mylan agreed to pick up Swedish peer Meda for EUR 8,805 million. Eight other deals were worth more than EUR 1,000 million in February and the Syngenta deal alone accounted for 46 per cent of total Western European dealmaking for the month. PE follows same pattern as M&A In line with the overall M&A pattern in the region, Western European private equity volume declined in February against an increase in value month-onmonth. In all there were 188 deals worth a combined EUR 6,001 million, compared to 248 deals worth EUR 3,089 million in January. Year-on-year results also followed the same pattern as M&A, declining across the board from the EUR 6,553 million invested across 299 transactions in February 2015. The largest PE and VC transaction of the month was a EUR 1,249 million acquisition of Swiss tour operator Kuoni Reisen Holding by EQT, through holding company Kiwi Holding IV. Switzerland tops value rankings Switzerland attracted the most investment in February by a considerable distance, bringing in EUR 43,778 million over the course of the month. This placed it some way ahead of second-placed UK with EUR 14,086 million. However, it is worth noting that a large portion of this amount is due to the aforementioned EUR 39,359 million Syngenta deal. Other countries which performed well include Sweden (EUR 9,594 million) and France (EUR 5,042 million). The UK led the way by volume with 434 transactions, followed by France, Germany and Spain with 208, 169 and 160, respectively. Despite its impressive showing by value, Switzerland placed seventh by volume, once again highlighting the importance of individual considerations to a country s performance. Page 4
Top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Deal status 1. 39,359 Acquisition 100% Syngenta AG CH China National Chemical Corporation CN Pending 2. 8,805 Acquisition 100% Meda AB SE Mylan NV NL Announced 3. 3,665 Capital Increase Vodafone Group plc GB Completed 4. 2,789 Acquisition 100% Brake Bros Ltd GB Sysco Corporation US Pending 5. 1,900 Acquisition increased Transportes Aereos Portugueses SA PT Government of Portugal PT Announced from 39% to 50% 6. 1,438 Acquisition 100% EEW Holding GmbH; M+E Holding GmbH DE; DE Luxembourg Investment Company 121 Sarl; Pure Success International Ltd LU Pending & Co KG 7. 1,249 IBO 100% Kuoni Reisen Holding AG CH Kiwi Holding IV Sarl Announced 8. 1,206 Acquisition 100% BSI SA CH EFG International AG CH Announced 9. 1,094 Minority stake 23% Auto Trader Group plc GB Announced 10. 1,082 Acquisition 100% Opera Software ASA NO Golden Brick Silk Road (Shenzhen) Equity Investment Fund II LLP; Qihoo 360 CN; CN; Announced Software (Beijing) Co., Ltd; Beijing Kunlun Tech Co., Ltd CN 11. 875 Acquisition 35% Gestamp Automocion SA ES Riberas Family ES Completed 12. 846 Acquisition 50% DONG Energy Burbo Extension (UK) Ltd GB Pensionskassernes Administration A/S; Kirkbi A/S DK; DK Completed 13. 822 Acquisition 100% Creganna Medical Technology Unlimited GB TE Connectivity Ltd CH Announced 14. 700 IBO InfoPro Digital SAS FR TowerBrook Capital Partners LP US Announced 15. 673 Minority stake increased LafargeHolcim Ltd CH Harris Associates Investment Trust US Completed from 3% to 6% 16. 650 Minority stake 1% Total SA FR Completed 17. 576 Acquisition 100% Forum Capita Oy Ab; Mercator Oy Ab FI; FI Sponda Oyj FI Announced 18. 550 Acquisition 100% GLID Wind Farms Topco Ltd GB BlackRock Inc.; The UK Green Investment Bank Offshore Wind Fund US; GB Completed 19. 510 Capital Increase 48% Vallourec SA FR Announced 20. 490 Capital Increase Vallourec SA FR BPI Groupe SA FR Completed Page 5
Top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Deal status 1. 1,249 IBO 100% Kuoni Reisen Holding AG CH EQT Partners AB Announced 2. 1,082 Acquisition 100% Opera Software ASA NO Golden Brick Capital Management Ltd Announced 3. 700 IBO InfoPro Digital SAS FR TowerBrook Capital Partners LP Announced 4. 550 Acquisition 100% GLID Wind Farms Topco Ltd GB BlackRock Inc. Completed 5. 400 IBO 100% Bora Wind Energy Management SL's ES Exus Management Partners SL Completed 8 wind farms 6. 297 Minority stake 37% Engineering Ingegneria Informatica SpA IT Neuberger Berman LLC; Apax Partners LLP Announced 7. 225 MBO 100% CitySprint (UK) Ltd GB Lloyds Development Capital (Holdings) Ltd; Dunedin LLP Completed 8. 175 IBO 100% Eolica Sierra Sesnandez SL; Parque ES; ES; ES; Cerberus European Investment LLC; Exus Management Partners SL Completed Eolico Magaz SL; Parque Eolico Loma Del Capon SL; Parque Eolico Cova Da Serpe II SL ES 9. 104 IBO Alpha Financial Markets Consulting Ltd GB Dunedin LLP Completed 10. 100 IBO majority stake So Ma Ci S SpA IT Quadrivio Capital SGR SpA Completed 11. 79 Minority stake Mission Therapeutics Ltd GB SR One Ltd; Sofinnova Partners SAS; Roche Holding AG; Imperial Innovations Group plc; Completed Pfizer Venture Investments; Woodford Investment Management LLP 12. 65 Minority stake Ardyne Technologies Ltd GB Lime Rock Partners LLC Completed 13. 60 Minority stake Aquafil SpA IT Three Hills Capital Partners LLP Completed 14. 54 IBO 70% Airteam A/S DK Ratos AB Announced 15. 53 Minority stake Student.com (UK) Ltd GB Horizons Ventures Ltd; Expa; VY Capital Management Company Ltd Completed 16. 51 Minority stake OutSystems-Software em Rede SA PT North Bridge Growth Equity Completed 17. 46 IBO 46% Orolia SA FR Eurazeo PME Announced 18. 42 Minority stake 42% Orolia SA FR Eurazeo PME Announced 19. 40 Minority stake WorldRemit Ltd GB SVB Financial Group; TriplePoint Venture Growth BDC Corporation Completed 20. 37 IBO 27% Royal Reesink NV NL Gilde Buy Out Partners BV Announced Page 6
PE follows same pattern as M&A In line with the overall M&A pattern in the region, Western European private equity volume declined in February against an increase in value month-onmonth. In all there were 188 deals worth a combined EUR 6,001 million, compared to 248 deals worth EUR 3,089 million in January. Year-on-year results also followed the same pattern as M&A, declining across the board from the EUR 6,553 million invested across 299 transactions in February 2015. The largest PE and VC transaction of the month was a EUR 1,249 million acquisition of Swiss tour operator Kuoni Reisen Holding by EQT, through holding company Kiwi Holding IV. Private equity deals by volume and value Announced date No of deals Feb-16 188 6,001 Jan-16 248 3,089 Dec-15 281 8,940 Nov-15 276 7,527 Oct-15 285 8,940 Sep-15 398 7,745 Aug-15 211 5,628 Total deal value Jul-15 390 14,650 Jun-15 324 14,712 May-15 261 10,985 Apr-15 263 5,042 Mar-15 320 11,014 Feb-15 299 6,553 Page 7
Private equity deals as a percentage of total volume Announced date Private equity volume Total volume Percentage Feb-16 188 1,498 13 Jan-16 248 2,049 12 Feb-15 299 1,907 16 Private equity deals as a percentage of total value Announced date Private equity value Total value Percentage Feb-16 6,001 85,793 7 Jan-16 3,089 32,131 10 Feb-15 6,553 117,754 6 Page 8
Private equity deals by volume and value Deal value 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 450 400 350 300 250 200 150 100 50 0 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 0 Total deal value Number of deals Page 9
Deal types by volume in February Minority stake Acquisition Capital increase IBO MBO Merger MBI Demerger Deal types by volume Deal type Feb-15 Jan-16 Feb-16 Minority stake 851 1,037 778 Acquisition 761 751 488 Capital increase 206 179 175 IBO 55 50 35 MBO 24 18 14 Merger 10 12 6 MBI 0 2 2 Demerger 0 1 1 Deal types by value in February Deal types by value Acquisition Deal type Feb-15 Jan-16 Feb-16 Minority stake Capital increase IBO MBO Acquisition 61,234 12,164 63,322 Minority stake 35,275 15,750 11,779 Capital increase 17,092 3,568 7,558 IBO 3,590 661 2,881 MBO 563 2 260 Page 10
Target sectors by volume Target sectors by value Target sector Feb-15 Jan-16 Feb-16 Target sector Feb-15 Jan-16 Feb-16 Other services 756 731 570 Machinery, equipment, furniture, recycling 221 248 174 Wholesale & retail trade 133 201 127 Publishing, printing 94 106 83 Metals & metal products 72 147 73 Chemicals, rubber, plastics 88 106 72 Transport 51 68 58 Post and telecommunications 59 51 53 Construction 97 90 45 Food, beverages, tobacco 78 45 39 Insurance companies 36 21 39 Gas, water, electricity 36 43 30 Banks 23 30 24 Education, health 48 21 24 Primary sector 40 64 23 Hotels & restaurants 33 38 19 Textiles, wearing apparel, leather 17 21 16 Wood, cork, paper 27 13 6 Public administration and defence 1 0 0 Chemicals, rubber, plastics 24,117 3,938 49,427 Other services 17,810 7,455 11,079 Machinery, equipment, furniture, recycling 8,505 3,755 4,452 Post and telecommunications 20,139 560 4,405 Gas, water, electricity 10,548 407 3,853 Wholesale & retail trade 2,833 2,070 3,660 Publishing, printing 1,047 622 2,624 Transport 2,742 1,802 2,060 Metals & metal products 8,072 1,910 1,328 Primary sector 419 1,262 833 Banks 6,895 947 596 Insurance companies 7,084 1,403 466 Construction 3,551 2,122 340 Hotels & restaurants 112 453 289 Textiles, wearing apparel, leather 1,534 803 189 Food, beverages, tobacco 1,404 473 153 Education, health 164 2,066 79 Wood, cork, paper 690 40 0 Public administration and defence 461 0 0 Page 11
Top countries by volume Top countries by value Target country Feb-15 Jan-16 Feb-16 Target country Feb-15 Jan-16 Feb-16 UK 597 550 434 France 213 262 208 Germany 202 333 169 Spain 183 240 160 Netherlands 140 169 133 Sweden 87 125 94 Switzerland 82 53 75 Italy 101 56 59 Finland 104 58 38 Belgium 32 41 35 Austria 5 28 19 Ireland 28 13 16 Luxembourg 10 38 15 Turkey 44 20 15 Denmark 31 30 12 Norway 30 19 9 Portugal 15 8 5 Greece 3 6 4 Cyprus 3 4 1 Switzerland 8,982 2,591 43,778 UK 44,999 7,060 14,086 Sweden 10,330 1,039 9,594 France 15,959 2,473 5,042 Germany 12,408 4,307 2,835 Portugal 417 355 2,049 Spain 3,835 3,655 2,046 Italy 7,428 1,347 1,756 Netherlands 7,591 3,365 1,365 Norway 283 134 1,086 Finland 1,128 837 650 Luxembourg 636 1,113 588 Belgium 1,035 1,014 428 Ireland 9,473 54 246 Denmark 5,066 1,242 163 Austria 398 46 96 Turkey 867 379 75 Greece 1 1,234 42 Page 12
Notes to editors Activity is based on the activity of the target company Deal status is announced within the time period The sector breakdown uses targets activities as defined to be Major Sectors by Zephyr The Western Europe region covers target companies in Andorra, Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey and the United Kingdom Data refers to target companies based in Western Europe except where specified as expanded EU of 27 countries on page 3 The date range is 01/02/2016-25/02/2016 inclusive Page 13