Nordic Report, Q4 2011
The following report details mergers and acquisitions activity in the Nordic Region in Q4 2011 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. Volume and value up on Q3 Dealmaking activity targeting the Nordic region in the fourth quarter of 2011 was higher than the preceding period in terms of both volume and value. The number of transactions increased 12 per cent from 845 to 946 deals, while their value soared 73 per cent from EUR 8,743 million to EUR 15,118 million. However, in comparison with the year-ago quarter the picture is less positive. While deal volume rose 16 per cent from the 817 transactions recorded in Q4 2010, value has dropped 29 per cent from EUR 21,268 million. Five deals together covering targets in each of the countries which make up the Nordic region were worth more than EUR 1,000 million in the quarter under review. Deals by volume and value Announced date No of deals Total deal value Q4 2011 946 15,118 Q3 2011 845 8,743 Q2 2011 1,020 23,880 Q1 2011 945 14,796 Q4 2010 817 21,268 Q3 2010 682 7,752 Q2 2010 920 8,639 Q1 2010 845 9,257 Q4 2009 918 17,552 Page 1
Nordic deals by volume and value 30000 1200 Deal value 25000 20000 15000 10000 1000 800 600 400 5000 200 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 0 Total deal value Number of deals Page 2
Finnish IBO is quarter s largest deal The largest private equity transaction of Q4 2011 was also its highest value deal overall. LNI Acquisition, a consortium composed of 3i Infrastructure, 3i Group, GS Infrastructure Partners and Ilmarinen Mutual Pension Insurance, agreed to pay EUR 1,540 million for Vattenfall s Finnish electricity distribution and district heating businesses. The second largest deal of the period saw UK energy group Centrica wholly acquire Norwegian oil and gas company Statoil Petroleum s production and development assets for EUR 1,201 million. Sweden s Sony Ericsson Mobile Communications was the target of the region s third most valuable transaction in Q4 2011. Sony agreed to buy out partner Telefonaktiebolaget LM Ericsson to raise its stake in the joint venture from 50 to 100 per cent. Sweden ahead on value, Finland leads on volume Despite accounting for the quarter s top deal, Finnish companies attracted the least investment of the four Nordic countries. With deals valued at a total EUR 2,396 million, targets in Finland were worth less than half the EUR 5,477 million that Swedish businesses brought in. Sweden held on to first position for the fifth month in a row. Nevertheless, the Q4 2011 result is 43 per cent lower than in the year-ago quarter, when Swedish targets were worth EUR 9,579 million. Norway placed second (EUR 4,799 million) and Denmark third (EUR 2,446 million). The value of transactions in all four countries was higher than in the preceding quarter, but only Finland managed to improve on the year-ago period. Finland took first spot for deal volume for the fourth quarter on the trot, accounting for 40 per cent of the region s total. Page 3
Nordic Region top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1 1,540 IBO Vattenfall Verkko Oy; Vattenfall Lämpö Oy FI; FI LNI Acquisition Oy FI 16/12/2011 2 1,201 Acquisition 100% Statoil Petroleum AS's North Sea oil and gas production and development assets NO Centrica plc GB 21/11/2011 3 1,050 Acquisition increased from 50% to 100% Sony Ericsson Mobile Communications AB SE Sony Corp. JP 27/10/2011 4 1,035 Acquisition increased from 100% to 100% DNB Bank ASA NO Den norske Bank ASA NO 20/12/2011 5 1,028 Acquisition 100% Maersk LNG A/S DK Marubeni Corporation; Teekay LNG Operating LLC JP 12/10/2011 6 770 Acquisition 100% Point International AB SE VeriFone Systems Inc. US 14/11/2011 7 683 Acquisition increased from 60% to 100% Seco Tools AB SE Sandvik AB SE 07/11/2011 8 590 Acquisition 100% Länsförsäkringar Fondliv Försäkrings AB SE Länsförsäkringar AB SE 27/10/2011 9 465 Minority stake 5% Danske Bank A/S DK Cevian Capital AB SE 22/11/2011 10 456 Acquisition increased from 100% to 100% Preemraff i Lysekil AB SE Mr Muhammed al Amoudi 27/12/2011 11 409 Minority stake 33% DNO International ASA NO Petrolia Invest AS NO 07/11/2011 12 379 Acquisition 100% HHIC-Denmark APS DK Hanjin Heavy Industries & Construction Co., Ltd KR 30/11/2011 13 339 Acquisition 100% Jädraås Vindkraft AB SE Arise Windpower AB SE 06/10/2011 14 233 IBO 100% Ventelo Holding AS NO EQT Partners AB SE 21/12/2011 15 232 Minority stake 11% Chr Hansen Holding A/S DK 17/11/2011 16 224 IBO 100% Orc Group AB SE Cidron Delfi Intressenter AB SE 19/12/2011 17 222 Acquisition 100% Mecom Europe AS NO A-pressen ASA NO 04/12/2011 18 210 Acquisition 100% Meca Scandinavia AB SE Mekonomen AB SE 12/10/2011 19 208 Acquisition Nordisk Aviation Products AS; Telair International GmbH NO; DE AAR Corporation US 21/10/2011 20 200 IBO 100% Fortum Termest AS; Fortum Energiaratkaisut Oy EE; FI EQT Partners AB SE 19/12/2011 Page 4
Nordic Region top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1 1,540 IBO Vattenfall Verkko Oy; Vattenfall Lämpö Oy FI; FI Ilmarinen Mutual Pension Insurance Company; 3i Infrastructure plc 16/12/2011 2 465 Minority stake 5% Danske Bank A/S DK Cevian Capital AB 22/11/2011 3 339 Acquisition 100% Jädraås Vindkraft AB SE Platina Partners LLP 06/10/2011 4 233 IBO 100% Ventelo Holding AS NO EQT Partners AB 21/12/2011 5 224 IBO 100% Orc Group AB SE Nordic Capital Ltd 19/12/2011 6 200 IBO 100% Fortum Termest AS; Fortum Energiaratkaisut Oy EE; FI EQT Partners AB 19/12/2011 7 116 Minority stake Klarna AB SE General Atlantic Corporation; Mail.ru Group Ltd 09/12/2011 8 112 Minority stake Explora Petroleum AS NO Warburg Pincus LLC 06/10/2011 9 108 IBO 100% Inmeta Crayon ASA NO Norvestor Equity AS 08/12/2011 10 100 Minority stake Finnprotein Oy FI Finnvera Oyj; Suomen Teollisuussijoitus Oy; Keskinäinen työeläkevakuutusyhtiö Varma; Keskinäinen Eläkevakuutusyhtiö Etera; Pontos Oy 11 100 IBO 100% Moventas Wind Oy; Moventas Santasalo Oy 22/11/2011 FI; FI Clyde Blowers Capital IM LLP 15/11/2011 12 18 Minority stake izettle AB SE Index Venture Management SA; Creandum Advisor AB 19/10/2011 13 17 Minority stake 10% Thrane & Thrane A/S DK Jupiter Asset Management Ltd 14/10/2011 14 14 MBO 100% Interflora AB SE Provider Venture Partners AB 24/11/2011 15 13 Minority stake less than 1% Vestas Wind Systems A/S DK Danske Bank A/S; Morgan Stanley 25/10/2011 16 11 Minority stake 40% Teknikmagasinet AB SE SEB Venture Capital 22/11/2011 17 5 Minority stake 9% Oasmia Pharmaceutical AB SE Nexttobe AB 25/10/2011 18 5 Minority stake Vissim AS NO Skagerak Venture Capital AS 26/10/2011 19 4 Minority stake 16% Bluefish Pharmaceuticals AB SE Nexttobe AB 06/12/2011 20 4 Minority stake Shark Solutions A/S DK VækstFonden 03/11/2011 Page 5
Private equity investment hits a high Private equity investment in the Nordic countries hit a yearly high of EUR 3,653 million in Q4 2011; indeed, the quarter was the most profitable since targets in the region scooped EUR 7,757 million in Q2 2007. Value was up 45 per cent on the preceding quarter and 49 per cent on the year-ago period, although volume fell back to 62 deals from 70 in Q3 2011 and 90 in Q4 2010. The strong showing during the quarter under review was clearly boosted by the institutional buy-out of Vattenfall s Finnish activities, which accounted for 42 per cent of all Nordic private equity investment. It was Q4 s only deal priced at more than EUR 1,000 million. The second largest private equity transaction was Swedish firm Cevian Capital s EUR 465 million purchase of a 5 per cent stake in Denmark s Danske Bank. Private equity deals by volume and value Announced date No of deals Q4 2011 62 3,653 Q3 2011 70 2,522 Q2 2011 80 3,312 Q1 2011 86 2,491 Q4 2010 90 2,453 Q3 2010 73 2,067 Q2 2010 64 1,184 Q1 2010 57 1,258 Q4 2009 65 653 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 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 0 Total deal value Number of deals Page 7
Deal types by volume in Q4 2011 Deal types by volume Deal type Q4 2010 Q3 2011 Q4 2011 Acquisition Minority stake IBO Merger MBO Acquisition 506 572 681 Minority stake 262 234 227 IBO 35 25 19 Merger 9 9 11 MBO 4 5 9 MBI / MBO 0 0 1 Deal types by value Deal types by value in Q4 2011 Deal type Q4 2010 Q3 2011 Q4 2011 Acquisition 11,429 3,978 10,168 Acquisition Minority stake IBO Minority stake 8,931 2,867 2,531 IBO 923 1,898 2,405 MBO 0 0 14 Page 8
Target sectors by volume Target sectors by value Target sector Q4 2010 Q3 2011 Q4 2011 Target sector Q4 2010 Q3 2011 Q4 2011 Other services 291 305 360 Wholesale & retail trade 119 95 121 Machinery, equipment, furniture, recycling 95 105 103 Banks 41 36 52 Construction 36 60 49 Transport 41 45 37 Education, health 19 27 36 Publishing, printing 16 25 32 Chemicals, rubber, plastics 32 28 29 Metals & metal products 37 25 28 Primary sector 26 28 26 Wood, cork, paper 13 8 20 Hotels & restaurants 12 14 19 Food, beverages, tobacco 12 21 18 Gas, water, electricity 17 17 14 Insurance companies 2 2 6 Textiles, wearing apparel, leather 8 4 2 Post and telecommunications 1 0 2 Public administration and defence 0 0 0 Other services 4,185 3,460 3,144 Primary sector 647 1,280 2,103 Banks 943 515 2,021 Gas, water, electricity 2,036 193 1,743 Machinery, equipment, furniture, recycling 7,048 836 1,622 Transport 228 1,523 1,380 Chemicals, rubber, plastics 428 116 978 Insurance companies 213 0 762 Wholesale & retail trade 1,446 553 458 Construction 156 102 453 Publishing, printing 360 65 228 Metals & metal products 631 26 208 Food, beverages, tobacco 667 20 143 Wood, cork, paper 1,096 33 80 Hotels & restaurants 1,019 1 3 Education, health 379 16 0 Post and telecommunications 0 0 0 Public administration and defence 0 0 0 Textiles, wearing apparel, leather 4 0 0 Page 9
Countries by volume Target country Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Finland 203 327 388 347 382 Sweden 280 296 335 257 258 Norway 219 220 191 145 197 Denmark 117 101 109 97 109 Countries by value Target country Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Sweden 9,579 6,944 10,749 3,776 5,477 Norway 6,156 3,280 3,945 2,765 4,799 Denmark 3,968 3,710 7,747 1,642 2,446 Finland 2,161 803 1,434 575 2,396 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 Q4 2011 date range is from 01/10/2011 to 29/12/2011 inclusive Page 11