Nordic Report, Q4 2014
The following report details mergers and acquisitions activity in the Nordic Region in Q4 2014 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 dips while volume advances The value of mergers and acquisitions (M&A) targeting companies based in the Nordic region in Q4 2014 decreased almost a fifth quarter-onquarter, against an 11 per cent rise in volume. There were 748 transactions worth an aggregate EUR 14,647 million targeting the region between October and December, compared to 675 worth a combined EUR 17,907 million in Q3. Overall activity was lower than at the same time a year ago, when 1,378 deals worth a total of EUR 19,930 million were announced. While M&A value was down it was propped up by strong private equity investment in the region. Deals by volume and value Announced date No of deals Total deal value Q4 2014 748 14,647 Q3 2014 675 17,907 Q2 2014 913 15,914 Q1 2014 1,086 30,247 Q4 2013 1,378 19,930 Q3 2013 1,020 19,939 Q2 2013 1,143 15,044 Q1 2013 924 14,846 Q4 2012 1,266 16,304 Page 1
Nordic deals by volume and value Deal value 35,000 30,000 25,000 20,000 15,000 10,000 5,000 1,600 1,400 1,200 1,000 800 600 400 200 0 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 0 Total deal value Number of deals Page 2
PE property deal top by value An investment by Starwood Capital in two Nordic real estate companies was the region s largest deal by value in Q4 2014. The private equity group agreed to buy Swedish property firm SveaReal Fastigheter and DNB Nor Eiendomsinvest of Norway for a total of EUR 1,218 million to expand its presence in the region. This was one of two transactions worth EUR 1,000 million or more in the three months; the other was a EUR 1,060 million take-private in which Swiss sanitary and piping systems group Geberit offered a 55 per cent premium to acquire shares in Finnish bathroom ceramics manufacturer Sanitec. Norway leads by value, despite Q-on-Q decline Norwegian companies were the most valuable in Q4 2014, targeted in 157 deals worth a collective EUR 5,568 million. The result was down more than a third on Q3 and 18 per cent lower than the same time a year ago (Q3 2014: EUR 8,592 million; Q4 2013: EUR 6,826 million). Norwegian targets were worth almost a fifth more than those based in Sweden in Q4 2014 and virtually as much as Finnish and Danish targets combined (Sweden: EUR 4,696 million; Finland: EUR 2,945 million; Denmark: EUR 2,689 million). At 284 transactions, Swedish companies were targeted most frequently during the three months to December, followed by those based in Finland (208), Norway (157) and Denmark (104). Page 3
Nordic Region top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 1,218 IBO 100% SveaReal Fastigheter AB; DnB NOR Eiendomsinvest I ASA SE; NO Starwood Capital Group LLC US 19/12/2014 2. 1,060 Acquisition 100% Sanitec Oyj FI Geberit AG CH 14/10/2014 3. 700 IBO 100% Paroc Group Oy FI CVC Capital Partners Ltd GB 22/10/2014 4. 618 Acquisition 100% Apotek Hjartat AB SE ICA Gruppen AB SE 12/11/2014 5. 548 Minority stake 2% TeliaSonera AB SE Institutional Investors 05/11/2014 6. 544 Minority stake 13% ISS A/S DK Institutional Investors 03/12/2014 7. 516 Acquisition 100% REC Solar ASA NO Bluestar Elkem Investment Co Ltd HK 24/11/2014 8. 510 Acquisition increased from 24% to 75% Gasum Oy FI Finnish government FI 03/11/2014 9. 487 Acquisition 100% EVRY ASA NO Lyngen Bidco AS NO 08/12/2014 10. 430 Acquisition 100% Eltek ASA NO Deltronics (Netherlands) BV NL 15/12/2014 11. 412 Minority stake 5% Pandora A/S DK Institutional Investors 08/12/2014 12. 403 Acquisition 100% Norican Group ApS DK Altor Equity Partners AB SE 19/12/2014 13. 381 Acquisition increased from 38% to 100% Norwegian Property ASA NO Geveran Trading Co Ltd CY 17/12/2014 14. 355 Acquisition 100% RS Platou ASA NO Clarkson plc GB 25/11/2014 15. 326 Acquisition 100% Hurtigruten ASA NO Silk Bidco AS NO 29/10/2014 16. 308 Acquisition 100% ICA Norge AS NO Coop Norge Handel AS NO 06/10/2014 17. 303 Acquisition 100% DONG Storage A/S DK Energinet.dk DK 20/10/2014 18. 278 Acquisition 100% Norresundby Bank A/S DK Nordjyske Bank A/S DK 18/12/2014 19. 230 Minority stake Entra Eiendom AS NO 30/10/2014 20. 219 Acquisition 100% Perten Instruments Group AB SE PerkinElmer Inc. US 24/11/2014 Page 4
Nordic Region top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 1,218 IBO 100% SveaReal Fastigheter AB; DnB NOR Eiendomsinvest I ASA SE; NO Starwood Capital Group LLC 19/12/2014 2. 700 IBO 100% Paroc Group Oy FI CVC Capital Partners Ltd 22/10/2014 3. 487 Acquisition 100% EVRY ASA NO Apax Partners UK Ltd 08/12/2014 4. 403 Acquisition 100% Norican Group ApS DK Altor Equity Partners AB 19/12/2014 5. 326 Acquisition 100% Hurtigruten ASA NO TDR Capital LLP 29/10/2014 6. 176 IBO 100% Hinna Park Invest AS NO NIAM AB 20/11/2014 7. 94 IBO Logismose A/S; Claus Meyer Holding A/S DK; DK IK Investment Partners Ltd; Dansk Vakstkapital K/S 13/11/2014 8. 90 IBO 65% Nordic Modular Group AB SE Inter Ikea Investments AB 14/11/2014 9. 80 IBO 100% Kilpilahden Sahkonsiirto Oy FI OFI InfraVia SAS 18/12/2014 10. 69 Minority stake 8% Net Entertainment AB SE Knutsson Holdings AB 10/12/2014 11. 50 IBO 67% Ledil Oy FI Ratos AB 21/11/2014 12. 48 Minority stake Ascendis Pharma A/S DK Venrock Associates LP; Sofinnova Ventures Inc.; OrbiMed Advisors LLC; Janus Capital 01/12/2014 Management LLC; Vivo Ventures LLC; RA Capital Management LLC; Sectoral Asset Management Inc. 13. 47 Minority stake True Software Scandinavia AB SE Kleiner Perkins Caufield & Byers; Sequoia Capital; Atomico (UK) Partners LLP 08/10/2014 14. 23 Minority stake Trustly Group AB SE Bridgepoint Development Capital Ltd 04/11/2014 15. 16 Minority stake Fyndiq AB SE Industrifonden AB; Northzone Ventures AB 07/11/2014 16. 12 Minority stake Forendo Pharma Oy FI Novartis Venture Fund; Novo A/S; Finnvera Oyj; Karolinska Development AB; MS Ventures 22/10/2014 17. 10 Minority stake Jolla Oy FI 11/12/2014 18. 10 Minority stake Novelda AS NO Investinor AS; SpareBank 1 SMN Invest AS; Alliance Venture Partners AS 03/12/2014 19. 9 Minority stake 18% Cortendo AB SE HealthCap AB; Storebrand ASA; Tredje AP-fonden; Arctic Fund Management AS 30/10/2014 20. 8 Minority stake Kebony AS NO ETF Manager LLP; Investinor AS; Hoegh Capital Partners Ltd; MVP Management GmbH 22/10/2014 Page 5
PE value advances for second quarter in a row Private equity and venture capital (PE and VC) investment activity targeting Nordic companies rose in Q4 2014, with value reaching its highest level in the nine quarters under review. There were 107 transactions worth a collective EUR 3,951 million between October and December, up from 86 deals worth EUR 3,359 million in Q3. The Starwood investment accounted for a third of the region s PE investment in Q4 2014. Private equity deals by volume and value Announced date No of deals Q4 2014 107 3,951 Q3 2014 86 3,359 Q2 2014 110 1,077 Q1 2014 118 3,329 Q4 2013 97 6,298 Q3 2013 70 1,506 Q2 2013 107 2,447 Q1 2013 65 4,417 Q4 2012 88 3,070 Total deal value Page 6
Nordic private equity deals by volume and value 7,000 140 6,000 120 Deal value 5,000 4,000 3,000 2,000 100 80 60 40 1,000 20 0 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 0 Total deal value Number of deals Page 7
Deal types by volume in Q4 2014 Deal types by volume Acquisition Minority stake Capital increase IBO MBO Merger Deal type Q4 2013 Q3 2014 Q4 2014 Acquisition 844 324 352 Minority stake 358 224 269 Capital increase 132 95 95 IBO 21 23 25 MBO 13 5 4 Merger 11 4 3 Deal types by value in Q4 2014 Deal types by value Acquisition Minority stake Minority stake IBO Acquisition Capital increase MBO IBO Deal type Q4 2013 Q3 2014 Q4 2014 Acquisition 9,748 10,318 7,873 Minority stake 6,384 3,100 3,213 IBO 289 2,814 2,408 Capital increase 3,523 1,698 1,152 MBO 0 0 1 Page 8
Target sectors by volume Target sectors by value Target sector Q4 2013 Q3 2014 Q4 2014 Target sector Q4 2013 Q3 2014 Q4 2014 Other services 536 228 233 Machinery, equipment, furniture, recycling 162 112 107 Wholesale & retail trade 155 72 76 Publishing, printing 42 43 67 Banks 65 30 51 Chemicals, rubber, plastics 59 29 40 Construction 53 31 32 Transport 52 24 25 Education, health 44 22 21 Wood, cork, paper 24 13 19 Gas, water, electricity 41 9 17 Primary sector 39 15 16 Metals & metal products 46 15 15 Hotels & restaurants 25 15 14 Food, beverages, tobacco 26 20 9 Textiles, wearing apparel, leather 8 2 8 Insurance companies 4 0 3 Public administration and defence 1 0 1 Post and telecommunications 3 2 0 Other services 3,278 7,660 4,940 Banks 416 491 2,401 Machinery, equipment, furniture, recycling 3,141 2,858 2,362 Chemicals, rubber, plastics 526 1,510 2,193 Wholesale & retail trade 230 67 1,768 Transport 677 64 891 Gas, water, electricity 5,280 24 267 Primary sector 2,793 2,549 229 Metals & metal products 1,828 182 188 Publishing, printing 70 2,100 183 Hotels & restaurants 107 87 169 Construction 600 171 158 Wood, cork, paper 487 142 116 Insurance companies 387 0 66 Food, beverages, tobacco 184 39 42 Textiles, wearing apparel, leather 12 7 25 Education, health 0 3 2 Post and telecommunications 0 0 0 Public administration and defence 0 0 0 Page 9
Countries by volume Target country Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Sweden 380 368 378 280 284 Finland 595 379 244 182 208 Norway 231 148 172 121 157 Denmark 176 192 125 98 104 Countries by value Target country Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Norway 6,826 5,001 7,146 8,592 5,568 Sweden 4,302 11,661 4,102 4,569 4,696 Finland 4,882 5,034 3,399 2,324 2,945 Denmark 3,921 8,551 1,267 2,508 2,689 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 2014 date range is from 01/10/2014 to 31/12/2014 inclusive Page 11