Nordic Report, Q1 2013
The following report details mergers and acquisitions activity in the Nordic Region in Q1 2013 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 slips, volume falls to new low Mergers and acquisitions (M&A) with Nordic targets fell back to 853 deals worth a combined EUR 11,924 million in Q1 2013 from 1,242 transactions valued at EUR 16,334 million in Q4 2012, continuing to form a series of peaks and troughs for both volume and value for the nine quarters under review. While volume declined 31 per cent over the three months to a new low, value weakened 27 per cent and remained on a par with that recorded for Q2 2012 (EUR 11,752 million) and Q1 2012 (EUR 11,138 million). There was only one blockbuster transaction in Q1 2013 worth EUR 2,396 million, which accounted for a fifth of the quarter s total M&A value. Deals by volume and value Announced date No of deals Total deal value Q1 2013 853 11,924 Q4 2012 1,242 16,334 Q3 2012 865 6,291 Q2 2012 1,009 11,752 Q1 2012 986 11,138 Q4 2011 1,149 15,066 Q3 2011 882 9,885 Q2 2011 1,043 23,951 Q1 2011 967 14,785 Page 1
Nordic deals by volume and value 30,000 1,400 Deal value 25,000 20,000 15,000 10,000 5,000 1,200 1,000 800 600 400 200 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 0 Total deal value Number of deals Page 2
Single deal breaks EUR 1,000 million barrier Just one deal surpassed EUR 1,000 million in value during Q1 2013, which was the sale by Dutch international supermarket operator Koninklijke Ahold NV of its 60 per cent stake in Swedish grocery retail group ICA AB to Hakon Invest AB for USD 2,396 million. The quarter s second largest deal by value was worth USD 854 million, which was a takeover offer for Swedish metal powders manufacturer Höganäs AB by Lindéngruppen AB and Foundation Asset Management Sweden AB. The two bidders formed an acquisition vehicle, H Intressenter, to make the offer representing a 17 per cent premium over the listed company s last closing share price. In all, Swedish targets featured in nine of the top 20 deals by value during Q1 2013, with Danish companies targeted in five transactions, and Finnish and Norwegian targets in three deals apiece. Finland led by volume, Sweden by value In a repeat performance of Q4 2012, Finland was once again ahead by deal volume although the figure was noticeably down on the preceding quarter, slipping 44 per cent from 526 to 296 transactions, the second lowest result of the last two years. In fact, all the Nordic countries experienced a decline in volume in line with the overall regional picture. By value, Sweden led with EUR 6,204 million of deal-making recorded in Q1 2013, a fall of 15 per cent from Q4 2012 when EUR 7,325 million was achieved but still the country s fourth highest result of the last two years under review. Again, the four component countries all experienced a downturn in dealmaking value during the three months under review, most notably Norway, where value halved quarter-on-quarter from EUR 5,033 million to EUR 2,291 million. Page 3
Nordic Region top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 2,396 Acquisition increased 40% to 100% ICA AB SE Hakon Invest AB SE 11/02/13 2. 854 Acquisition increased 34% to 100% Höganäs AB SE H Intressenter AB SE 11/02/13 3. 760 Minority stake 5% Danske Bank A/S DK Institutional Investors 05/03/13 4. 692 Acquisition 100% - Bid 2 Pronova BioPharma ASA NO BASF AS NO 15/01/13 5. 659 Minority stake 15% TDC A/S DK Institutional Investors 08/02/13 6. 581 Minority stake 19% Hakon Invest AB SE Industrivärden AB; ICA-handlarnas Förbund AB; Shareholders SE; SE;SE 11/02/13 7. 423 Acquisition 100% Copeinca ASA NO Grand Success Investment (Singapore) Pvt Ltd SG 26/02/13 8. 334 Minority stake 7% TDC A/S DK 27/03/13 9. 327 Acquisition OMG Kokkola Chemicals Oy; OM Group Inc.'s advanced materials business (exluding OMG Kokkola Chemicals Oy) FI Lundin Mining Corporation, Freeport-McMoRan Copper & Gold Inc. and La Générale des Carrières et des Mines Sarl s cobalt assets holding joint venture 10. 275 IBO 100% Ellos AB SE NC Advisory AB SE 25/02/13 11. 261 Acquisition 86% Talvivaaran Kaivososakeyhtiö Oyj FI 08/03/13 12. 236 Acquisition 100% HemoCue AB SE Radiometer Medical ApS DK 24/02/13 13. 220 Minority stake 1% AP Møller-Mærsk A/S DK 22/03/13 14. 200 Minority stake 26% Citycon Oyj FI 12/02/13 15. 175 Minority stake 6% Hakon Invest AB SE Institutions 13/02/13 16. 164 Minority stake increased 22% to 34% Höganäs AB SE H Intressenter AB SE 11/02/13 17. 154 Acquisition 100% Aberdeen Property Funds SICAV-FIS Pan-Nordic's unnamed office property management company 21/01/13 SE AMF Fastigheter AB SE 21/02/13 18. 137 IBO 100% Cimbria A/S DK Management; Silverfleet Capital Partners LLP GB 07/01/13 19. 135 Acquisition increased 49% to 100% Morpol ASA NO Marine Harvest ASA NO 14/01/13 20. 135 Minority stake increased 19% to 20% Investor AB SE Knut och Alice Wallenbergs Stiftelse SE 31/01/13 Page 4
Nordic Region top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 275 IBO 100% Ellos AB SE NC Advisory AB 25/02/13 2. 137 IBO 100% Cimbria A/S DK Silverfleet Capital Partners LLP 07/01/13 3. 103 IBO 100% Nebula Oy FI Ratos AB; Rite Internet Ventures AB 25/03/13 4. 24 Minority stake Åkers AB SE Altor Equity Partners AB 11/01/13 5. 22 Minority stake 38% TitanX Engine Cooling AB SE Fouriertransform AB 12/03/13 6. 7 Minority stake Canatu Oy FI Teknologian Kehittämiskeskus; Inventure Oy; Infosto Oy; Troika Ventures 13/03/13 7. 5 Minority stake Milvik AB SE LeapFrog Investments 21/02/13 8. 4 Minority stake Acarix A/S DK Seed Capital Denmark K/S 05/03/13 9. 3 Minority stake Trac ID Systems AS NO Northzone Ventures AB 21/02/13 10. 2 Minority stake MetGen Oy FI Sofinnova Partners SAS; Finnvera Oyj; Suomen Teollisuussijoitus Oy 11/02/13 11. 2 Minority stake Insusense Therapeutics ApS DK Lundbeckfond Emerge 05/03/13 12. 2 Minority stake Valopaa Oy FI VNT Management Oy 16/01/13 13. 2 Minority stake Game Analytics ApS DK Sunstone Capital A/S; CrunchFund 21/02/13 14. 2 Minority stake AlphaSense Oy FI 15/01/13 15. 1 Minority stake ProtoGeo Oy FI Lifeline Ventures Oy; PROfounders Capital Ltd 24/01/13 16. 1 Minority stake Örndalen Exploatering AB SE Norrlandsfonden;Inlandsinnovation AB 01/02/13 17. 1 Minority stake IndoorAtlas Oy FI 30/01/13 18. 0 Minority stake Somia Reality Oy FI Teknologian Kehittämiskeskus; Reaktor Polte Oy 14/02/13 19. 0 Minority stake 11% Stureguld AB SE Aggregate Stockholm AB 14/02/13 20. 0 Minority stake Idea2Innovation Sweden AB SE Inlandsinnovation AB 26/02/13 Page 5
Private equity sinks to new low Private equity and venture capital activity in the Nordic region slipped to just 50 deals valued a combined EUR 595 million in Q1 2013 from 79 transactions worth EUR 3,054 million in Q4 2012, representing a new low by both volume and value for the period under review. In monetary terms, Q4 2012 was a bright spot in a somewhat lacklustre year. Even private equity investment in Q1 2012 totalling EUR 3,103 million failed to sustain growth recorded in Q4 2011. The decline continued for another two successive quarters (Q2 2012: EUR 892 million; Q3 2012: EUR 726 million), which only further highlighted the significant jump in value in Q4 2012 and subsequent weakening. Private equity favours minority stakes Private equity deals by volume and value Announced date No of deals Q1 2013 50 595 Q4 2012 79 3,054 Q3 2012 55 726 Q2 2012 105 892 Q1 2012 82 3,103 Q4 2011 74 3,717 Q3 2011 73 2,524 Q2 2011 84 3,339 Q1 2011 86 2,491 Total deal value The lack of blockbuster private equity and venture capital deals involving companies in the Nordic region undoubtedly had a knock-on effect on value for Q1 2013. The largest transaction by value was the institutional buyout of Ellos by NC Advisory for EUR 275 million, which was followed closely by the acquisition of Cimbria of Denmark by Silverfleet Capital Partners for EUR 137 million. The only other institutional buyout to feature in the top 20 by value was Nebula, which was acquired by Ratos and Rite Internet Ventures for EUR 103 million. Together, these three top deals by value were worth EUR 515 million and accounted for 87 per cent of the total value of private equity and venture capital investment for the quarter. Minority stake sales accounted for the remaining top deals by value, the largest of which was a capital injection of EUR 24 million into Swedish steel and aluminium industries cast manufacturer Åkers by Altor Equity Partners. Page 6
Nordic private equity deals by volume and value 4,000 120 Deal value 3,500 3,000 2,500 2,000 1,500 1,000 500 100 80 60 40 20 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 0 Total deal value Number of deals Page 7
Deal types by volume in Q1 2013 Deal types by volume Acquisition Minority stake IBO Merger MBO Demerger Deal type Q1 2012 Q4 2012 Q1 2013 Acquisition 632 871 537 Minority stake 312 333 293 IBO 27 24 13 Merger 8 9 10 MBO 5 5 2 Demerger 2 1 1 Deal types by value in Q1 2013 Deal types by value Deal type Q1 2012 Q4 2012 Q1 2013 Acquisition Minority stake IBO Acquisition 3,608 7,605 6,329 Minority stake 5,102 5,854 5,080 IBO 2,428 2,889 515 Page 8
Target sectors by volume Target sectors by value Target sector Q1 2012 Q4 2012 Q1 2013 Target sector Q1 2012 Q4 2012 Q1 2013 Other services 411 505 317 Machinery, equipment, furniture, recycling 116 147 108 Wholesale & retail trade 115 136 104 Banks 51 63 47 Education, health 27 52 39 Construction 67 60 36 Chemicals, rubber, plastics 26 40 36 Transport 34 50 35 Food, beverages, tobacco 16 30 27 Metals & metal products 26 27 25 Publishing, printing 26 42 24 Primary sector 21 23 23 Hotels & restaurants 26 20 16 Wood, cork, paper 12 21 11 Gas, water, electricity 11 25 6 Insurance companies 5 2 4 Public administration and defence 1 0 1 Textiles, wearing apparel, leather 5 6 1 Post and telecommunications 0 1 0 Wholesale & retail trade 2,588 146 2,821 Other services 3,483 5,820 2,806 Banks 838 974 2,031 Metals & metal products 1,183 95 1,341 Machinery, equipment, furniture, recycling 942 6,051 943 Food, beverages, tobacco 174 211 665 Chemicals, rubber, plastics 1,093 304 545 Transport 190 370 278 Primary sector 122 1,282 269 Wood, cork, paper 146 464 54 Publishing, printing 13 140 49 Hotels & restaurants 4 1 47 Construction 306 110 45 Gas, water, electricity 23 275 13 Education, health 0 84 8 Insurance companies 31 20 8 Post and telecommunications 0 0 0 Public administration and defence 0 0 0 Textiles, wearing apparel, leather 10 31 0 Page 9
Countries by volume Target country Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Finland 310 344 292 526 296 Sweden 351 371 291 357 281 Norway 217 182 172 218 167 Denmark 110 114 112 143 113 Countries by value Target country Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Sweden 4,590 3,641 1,894 7,325 6,204 Norway 2,327 4,142 2,951 5,033 2,291 Denmark 2,536 2,798 227 2,751 2,277 Finland 1,686 1,261 1,218 1,225 1,151 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 2012 date range is from 01/01/2013 to 31/03/2013 inclusive Page 11