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Deal DriversAmericas

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An Acuris Company

The comprehensive review of mergers and acquisitions in the Americas region

HY 2019

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The comprehensive review of mergers and acquisitions in the Americas region throughout the first half of 2019.

Foreword 04

Americas Heat Chart 05

All Sectors 06

Financial Services 18

Industrials, Manufacturing & Engineering 24

Energy, Mining, Oil & Gas 30

Consumer 36

Technology, Media & Telecom 42

Life Sciences & Healthcare 48

Canada 54

West 61

Midwest 68

South 75

Northeast 82

Latin America 89

About Merrill Corporation 97

Contents

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Mergermarket 3Deal Drivers Americas HY 2019Contents


Foreword

Welcome to the half-year 2019 edition of Deal Drivers Americas, published by Mergermarket in association with Merrill Corporation. This report provides an extensive review of M&A activity and trends across North America and Latin America.

After a blockbuster year for dealmaking in 2018, markets softened early this year, with many observers forecasting a turn in the economic cycle. Six months later, however, the Americas have defied expectations with another tremendous period for M&A activity. This was especially true in the US, where deal value grew by 15% year-on-year in 1H19.

To be sure, concerns about the economy remain. Trade tensions between the US and China continue to dampen global growth, and inflation has stalled in the US. At the same time, equity markets have recovered after their slump in early 2019, and the US Federal Reserve looks ready to slash interest rates for the first time in a decade. Against this backdrop, many dealmakers are unfazed — and in fact, some buyers are acting more boldly than ever in the search for growth.

Following the trend of recent years, megadeals contributed significantly to the H1 deal value total in the Americas. The top five deals alone by value made up nearly a third of the overall amount in the first half of the year. The traditionally strong

sectors of life sciences & healthcare; technology, media & telecom; and energy, mining, oil & gas led the way in terms of total value.

The year started off with a bang as drugmaker Bristol-Myers Squibb agreed to acquire cancer therapy producer Celgene for US$89.5bn in early January, part of a wave of global consolidation among pharmaceutical companies. The momentous deal propelled life sciences & healthcare to the top position for deal value among sectors, and it represented the largest tie-up of the first half of the year. Antitrust regulators have slowed the deal’s progress — in June, Celgene agreed to divest a major asset in hopes of satisfying their concerns about competition — but it is still expected to close within the next 12 months.

Private equity acquirers have remained highly active this year as well, and have been increasingly moving up-market to do deals: PE firms in the Americas made more than 20 purchases valued at over US$1bn each in 1H19. Several of the largest players, such as Blackstone and Apollo Global Management, made multiple acquisitions at these lofty valuations.

Looking ahead, there is some evidence to suggest dealmaking conditions will tighten somewhat in 2H19. For instance, Merrill data show that global average “build” times — the

time it takes to gather, upload and organize documents prior to due diligence launch — have increased from 28 to 30 days. This suggests two potential issues at play.

First, the lower end of the market may be weakening — the smaller the deal, the less time it takes to “build” the data room; and if there are fewer small deals, the larger average could reflect more mid-sized-to-large deals. And second, project times tend to lengthen in conditions of market uncertainty.

Nonetheless, it remains to be seen whether dealmaking conditions will change significantly before year’s end. As always, we will monitor the markets and keep you up to date on the latest trends as they develop.

Sincerely,

Mark Williams Chief Revenue Officer, Americas

Mark WilliamsChief Revenue Officer, Americas, Merrill Corporation

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Mergermarket 4Deal Drivers Americas HY 2019Foreword


Americas Heat Chart

Heat Chart based on potential companies for sale

140 80

120

100

60

40

ColdWarmHot

10

20

1

Criteria of heat chart: Mergermarket’s sector Heat Chart is based on companies tagged as potential targets in 1H19.

Our forward-looking Heat Chart shows the distribution of “companies for sale” stories on the Mergermarket intelligence tool across sectors and regions in the Americas in 1H19. The data show that the technology, media & telecom (TMT) sector is expected to see the most deal volume of any industry by far in the second half of 2019, and the West and South remain dominant among regions when it comes to deal targets.

Technology companies have increasingly become attractive targets not only for private equity firms and technology strategics, but also for companies in other sectors seeking to upgrade their technical capabilities or bring in talent. In the coming months, Mergermarket intelligence suggests that targets in segments such as digital health, cybersecurity, autonomous vehicles, and fintech will draw attention.

The ongoing rise of the life sciences & healthcare sector is also reflected in our chart, with 457 of the total 3,066 stories in H1 focused on companies in the pharmaceutical, medical, and biotech segments. The proportion of GDP devoted to healthcare spending has risen substantially in recent decades in the US, and a growing number of financial buyers are focusing on companies in these industries.

Looking at regional activity, the technology boom in Western states is propelling the market for M&A targets in states such as California and Washington. Major markets in the South — especially in the healthcare and energy sectors — are also drawing multitudes of buyers.

Outside the US, Latin America is seeing strength in its highly developed consumer and natural resource industries. Meanwhile in Canada, activity is modest, with no one sector standing out among the rest for M&A targets.

Sector West South Northeast Midwest LatAm Canada Total

Technology, Media & Telecom

314 174 177 113 58 14 850

Life Sciences & Healthcare 123 125 115 62 17 15 457

Consumer 89 53 54 66 53 11 326

Industrials, Manufacturing & Engineering

64 66 67 81 32 14 324

Energy, Mining, Oil & Gas 66 89 40 29 54 16 294

Business Services 57 96 49 27 39 4 272

Financial Services 43 48 61 28 28 9 217

Leisure 24 43 17 3 11 4 102

Agriculture 14 8 12 7 11 5 57

Transportation 8 8 9 3 18 1 47

Construction 12 6 6 10 9 1 44

Defense 8 22 1 2 2 35

Real Estate 8 6 6 2 4 2 28

Other 8 2 1 11

Government 2 2

Total 830 746 622 433 338 97 3066

Sector West South Northeast Midwest LatAm Canada Total


314 174 177 113 58 14 850

Life Sciences & Healthcare 123 125 115 62 17 15 457

Consumer 89 53 54 66 53 11 326


64 66 67 81 32 14 324

Energy, Mining, Oil & Gas 66 89 40 29 54 16 294

Business Services 57 96 49 27 39 4 272

Financial Services 43 48 61 28 28 9 217

Leisure 24 43 17 3 11 4 102

Agriculture 14 8 12 7 11 5 57

Transportation 8 8 9 3 18 1 47

Construction 12 6 6 10 9 1 44

Defense 8 22 1 2 2 35

Real Estate 8 6 6 2 4 2 28

Other 8 2 1 11

Government 2 2

Total 830 746 622 433 338 97 3066

mergermarket.com

Mergermarket 5Deal Drivers Americas HY 2019Heat Chart


All Sectors

Part of the Acuris reporton global M&A activity

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Mergermarket 6Deal Drivers Americas HY 2019All Sectors


Further informationGet in touch

After one of the highest value half-year records for North American M&A on Mergermarket record, the fundamentals are in place for a robust second half, dealmakers said.

In the first half of 2019 US M&A continued to grow value-wise to US$967.7bn across 2,579 deals, up 15.8% from the same period last year and up 36.5% from 2H18, according to Mergermarket data. The period was the second highest-valued half-year period on Mergermarket record (since 2001), behind only 2H15 (US$973.5bn).

Megadeals — transactions valued at more than US$10bn — have fueled this year’s growth, with 19 such deals worth a combined US$569.2bn in the first half, compared to 19 deals worth US$473.8bn for the whole of 2018. Despite headwinds over trade tensions with China, uncertainty over Brexit and nagging fears over an economic slowdown, the trend is likely to continue in the second half, advisors said.

“There’s a lot of disruption out there and a desire from large corporates to generate growth and synergies,” said Brian Fahrney, co-head of M&A at Sidley Austin. An appetite for technology, he added, is one of the key drivers behind the growing number of megadeals.

“Companies are being defensive and offensive in their approach to acquiring new technologies,”

said Fahrney. “There is a lot of interest from old economy companies in acquiring technology and getting access to data.”

Private equity firms, meanwhile, have been raising record amounts of capital and chasing bigger targets, Fahrney noted. In the US, year-to-date, there have been four US$10bn-plus buyouts, compared to only one for the whole of 2018, including the over US$14bn buyout of communications infrastructure provider Zayo Group by EQT and Digital Colony Partners.

Overall, healthcare, technology, and industrials, manufacturing & engineering (IME) were among the most active sectors in the first half. IME deal value almost doubled year-on-year (YoY), with 448 transactions worth US$117bn, according to Mergermarket data.

One area currently under the spotlight is aerospace and defense after Raytheon [NYSE: RTN] and United Technologies’ [NYSE: UTX] US$88.9bn tie-up, announced in June. Mergermarket has previously reported that the deal will likely spur a wave of consolidation among mid-tier A&D companies.

Elizabeth Donley, a partner at Hogan Lovells, agreed that aerospace, defense and government services will remain particularly active. “The sky’s the limit in terms of the available technological innovation, and

companies are looking to M&A to acquire technology and R&D capabilities,” she said.

Carine Stoick, also a partner at Hogan Lovells, said that a 4.7% YoY increase in President Trump’s proposed defense budget to US$750bn is spurring companies in the sector to push for scale via M&A to stay competitive.

Across industries, Sidley Austin’s Fahrney pointed to shareholder activism as another factor continuing to drive activity among large corporates.

In general, according to Mergermarket’s sister publication Activistmonitor, new shareholder activists dipped slightly to 126 in the first half, compared to 146 for the same period last year, but the trend for activists to target larger companies is continuing, with 19 campaigns in the first half involving companies with market capitalizations of more than US$10bn.

Activists are increasingly taking vocal public stances in large, transformative deals, with the UTC-Raytheon tie-up and Bristol-Myers Squibb’s [NYSE: BMY] planned acquisition of Celgene [NASDAQ: CELG] among the megadeals targeted so far this year.

Tom Cane

Joshua Armstrong

All SectorsOverview

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mailto:tom.cane%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry

mailto:joshua.armstrong%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate

Status Bidder Company Target Company Sector Vendor Company Deal Value(US$m)

3-Jan-19 P Bristol-Myers Squibb Company Celgene Corporation Life Sciences & Healthcare 89,489

9-Jun-19 P United Technologies Corporation Raytheon Company Defense 88,905

9-May-19 P Occidental Petroleum Corporation Anadarko Petroleum Corporation Energy, Mining, Oil & Gas 54,388

12-Apr-19 L Chevron Corporation Anadarko Petroleum Corporation Energy, Mining, Oil & Gas 47,747

18-Mar-19 P Fidelity National Information Services Inc Worldpay Inc Business Services 42,584

8-Mar-19 C DuPont de Nemours Inc (Shareholders) Dow Inc Industrials, Manufacturing & Engineering DuPont de Nemours Inc 41,272

16-Jan-19 C Fiserv Inc First Data Corporation Business Services Kohlberg Kravis Roberts & Co 38,448

7-Feb-19 P BB&T Corporation SunTrust Banks Inc Financial Services 28,085

28-May-19 P Global Payments Inc Total System Services Inc Technology, Media & Telecom 25,719

7-May-19 C DuPont de Nemours Inc (Shareholders) Corteva Inc Industrials, Manufacturing & Engineering DuPont de Nemours Inc 21,928

25-Feb-19 P Danaher Corporation GE Healthcare Life Sciences (Biopharma business) Life Sciences & Healthcare GE Healthcare Life Sciences 21,400

24-Jun-19 P Eldorado Resorts Inc Caesars Entertainment Corporation Leisure 16,087

27-Mar-19 P Centene Corporation WellCare Health Plans Inc Financial Services 15,362

10-Jun-19 P Salesforce.com Inc Tableau Software Inc Technology, Media & Telecom 15,027

8-May-19 P Zayo Group Consortium Zayo Group Holdings Inc Technology, Media & Telecom 14,116

2-Jun-19 P Blackstone Group GLP Pte Ltd (US logistics assets) Real Estate GLP Pte Ltd 13,400

14-Jan-19 C Newmont Goldcorp Corporation Goldcorp Inc Energy, Mining, Oil & Gas 12,787

4-Feb-19 C Hellman & Friedman — Blackstone consortium Ultimate Software Group Inc Technology, Media & Telecom 11,790

17-Jun-19 P Pfizer Inc Array BioPharma Inc Life Sciences & Healthcare 10,746

8-May-19 P MPLX Andeavor Logistics (63.58% stake) Energy, Mining, Oil & Gas Marathon Petroleum Corporation 10,288

C= Completed; P= Pending; L= Lapsed

Top 20 Announced Deals for Half Year Ending 30 June 2019 — North American Targets All Sectors

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30.8%

2.9%

23.8%

3.5%

6.5%

6.3%

21%

5.2%

53%1.3%

16.5%

2.3%

2.1%

1.9%

14.6%

8.3%

Mix of deals by geographic regionDeal Count

Based on announced deals, excluding those that lapsed or were withdrawn. Geographic region is determined with reference to the dominant location of the target.

Mix of deals by geographic regionValue

Based on announced deals, excluding those that lapsed or were withdrawn. Geographic region is determined with reference to the dominant location of the target.

USA

Northern Europe

Asia-Pacific

USA

Northern Europe

Asia-Pacific

Canada

Central & Eastern Europe

RoW

Canada

Central & Eastern Europe

RoW

Western Europe

Southern Europe

Western Europe

Southern Europe

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Num

ber

of d

eals

0

100

200

300

400

500

600

700

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

22 10 23

248

399

201237

487

684

75 89

303

90

Valu

e (U

S$

bn)

0

20

40

60

80

100

120

140

160

180

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

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Bus

ines

s S

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Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$0.7

US$10.1

US$1.8

US$82.2

US$40.2

US$124.9

US$174.4US$

167.1US$152.2

US$119

US$89.9

US$25.4

US$22.5

Mix of deals by industry sectorDeal Count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the US & Canada. Industry sector is based on the dominant industry of the target.

Mix of deals by industry sectorValue

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the US & Canada. Industry sector is based on the dominant industry of the target.

Mergermarket 10

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Deal Drivers Americas HY 2019All Sectors


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

H1 2018201720162015201420132012

Valu

e (U

S$

m)

Volum

e0

200

400

600

800

1,000

1,200

1,400

US$127,805

US$145,409

US$210,063

US$171,442 US$

156,179

US$175,967

US$123,646

0

50,000

100,000

150,000

200,000

250,000

300,000

H1 2019201820172016201520142013

Valu

e (U

S$

m)

Volum

e

0

200

400

600

800

1,000

1,200

1,400

US$253,699

US$163,560 US$

155,902

US$264,165

US$281,875

US$259,348

US$298,054

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

H1 2019201820172016201520142013

Valu

e (U

S$

m)

Volum

e0

200

400

600

800

1,000

1,200

1,400

1,600

US$144,215

US$173,274 US$

156,065

US$177,446

US$213,074

US$222,177

US$134,467

Buyouts

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the US & Canada.

Exits


Deal Count Value CountValue Value

Mergermarket 11

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Num

ber

of d

eals

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx US$

xxx

0

50

100

150

200

250

300

350

Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx US$

xxx

0

30,000

60,000

90,000

120,000

150,000


European bidder acquiring a North American target

North American bidder acquiring a European target

Total North American/European deals

European bidder acquiring a North American target

North American bidder acquiring a European target

Total North American/European deals

Transatlantic dealsDeal Count

Based on dominant location of target and bidder and excludes all buyouts.

Transatlantic dealsValue

Based on dominant location of target and bidder and excludes all buyouts.

Mergermarket 12

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

H1 2019201820172016201520142013

Num

ber

of d

eals

147108

33

282

235

278

277315

299

243206

247

339

50

87 80 98

83

27

50 69 49

40353

302

93

55

3,4293,626

3,914

1,783

2,4112,217

2,305

1,870

2,9243,223

2,037

2,178

2,167

764

33

0

250

500

750

1,000

1,250

1,500

1,750

2,000

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$275.6

US$85.1

US$129.9

US$269.2

US$310.9

US$106.1

US$153.2

US$158.4

US$237.7

US$73.3US$113.4

US$394.9

US$39.2

US$51.7

US$644.6

US$1,140.2

US$311

US$271.5

US$101.4

US$123.7

US$328.2

US$90

US$138.1

US$258.2

US$602.3

US$353

US$287.1

US$740.9

US$765.3

US$110.3

US$141.1

US$142

US$106.4

US$248.5

US$671.2

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m

M&A split by deal sizeValue

M&A split by deal sizeDeal Count

Mergermarket 13

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0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000


Quarterly M&A activityValue


Quarterly M&A activityDeal Count


Moving average trend lineDeal Value Moving average trend lineDeal Count

Mergermarket 14

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League tables

H1 2019 H1 2018 Company Name Value (USD m)

Number of Deals

1 3 Wachtell, Lipton, Rosen & Katz 442,119 31

2 12 Kirkland & Ellis 342,491 282

3 2 Davis Polk & Wardwell 324,302 54

4 6 Sullivan & Cromwell 288,720 57

5 4 Simpson Thacher & Bartlett 264,132 63

6 1 Skadden Arps Slate Meagher & Flom 239,769 87

7 8 Cleary Gottlieb Steen & Hamilton 225,239 41

8 31 Shearman & Sterling 222,827 42

9 7 Fried Frank Harris Shriver & Jacobson 218,806 29

10 58 Slaughter and May 212,233 11


Number of Deals

1 1 Kirkland & Ellis 342,491 282

2 2 Goodwin Procter 23,541 136

3 4 DLA Piper 8,060 132

4 3 Jones Day 130,358 131

5 5 Latham & Watkins 154,462 120


7 8 Weil Gotshal & Manges 151,699 83

8 22 Orrick Herrington & Sutcliffe 8,132 76

9 7 Morgan Lewis & Bockius 8,209 75

10 11 Ropes & Gray 34,778 74


Number of Deals

1 1 Goldman Sachs & Co 556,067 109

2 2 JPMorgan 556,453 95

3 3 Morgan Stanley 471,278 80

4 10 Evercore 402,283 76

5 7 Barclays 169,587 76

6 9 Jefferies 108,782 76

7 5 Citi 385,451 67

8 4 Houlihan Lokey 7,897 67

9 6 Raymond James/Silver Lane 3,812 63

10 11 Bank of America Merrill Lynch 236,801 58


Number of Deals

1 3 JPMorgan 556,453 95



4 5 Evercore 402,283 76

5 9 Citi 385,451 67


7 6 Credit Suisse 196,648 56

8 7 Barclays 169,587 76

9 17 RBC Capital Markets 150,220 49

10 11 PJT Partners 136,189 18

Financial advisors by deal countFinancial advisors by value

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

Legal advisors by value Legal advisors by deal count

mergermarket.com

Deal Drivers AmericasMergermarket 15HY 2019All Sectors


League tables


Number of Deals

1 31 Wilson Sonsini Goodrich & Rosati 4,022 36



4 4 DLA Piper 2,930 42


6 3 Jones Day 2,452 29


8 11 Cooley 2,072 19




Number of Deals


2 3 DLA Piper 2,930 42




6 2 Jones Day 2,452 29


8 9 Stikeman Elliott 1,520 21


10 7 Cooley 2,072 19


Number of Deals


2 7 Canaccord Genuity Group 1,238 19

3 5 Stifel/KBW 1,579 18


5 2 Sandler O'Neill & Partners 1,575 16

6 24 PwC 795 15

7 43 Moelis & Company 1,142 13

8 13 Jefferies 1,791 12


10 4 Piper Jaffray & Co 1,292 12


Number of Deals



3 4 Jefferies 1,791 12


5 16 Stifel/KBW 1,579 18


7 46 Barclays 1,525 10

8 20 Lazard 1,448 11

9 3 JPMorgan 1,407 10


Financial advisors by deal count — mid-market (US$5m – US$250m)Financial advisors by value — mid-market (US$5m – US$250m)

The legal advisor mid-market league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

The financial advisor mid-market league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

Legal advisors by deal count — mid-market (US$5m – US$250m)Legal advisors by value — mid-market (US$5m – US$250m)

Deal Drivers AmericasMergermarket 16

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HY 2019All Sectors



Number of Deals

1 1 Sard Verbinnen & Co 2,235 19

2 7 Joele Frank Wilkinson Brimmer Katcher 1,279 15

3 3 Kekst CNC (Publicis) 1,011 8

4 8 Brunswick Group 800 8

5 2 Edelman 799 8

6 11 Maitland (AMO) 687 5

7 5 ICR 633 12

8 9 Finsbury Hering Schuppener GPG 521 6

9 13 Greenbrook Communications 463 4

10 81 Instinctif Partners 450 6


Number of Deals



3 2 ICR 633 12

4 4 FTI Consulting 424 9


6 10 Brunswick Group 800 8

7 1 Edelman 799 8

8 7 Finsbury Hering Schuppener GPG 521 6

9 31 Instinctif Partners 450 6

10 12 Maitland (AMO) 687 5


Number of Deals




4 8 Finsbury Hering Schuppener GPG 47,417 46

5 5 Brunswick Group 190,888 37

6 6 FTI Consulting 31,148 37

7 7 Abernathy MacGregor Group (AMO) 150,376 34

8 18 Stanton Public Relations & Marketing 16,312 31

9 94 Lambert Blicksilver 1,345 31

10 4 Edelman 17,511 28


Number of Deals




4 3 Brunswick Group 190,888 37

5 5 Abernathy MacGregor Group (AMO) 150,376 34

6 9 Maitland (AMO) 102,105 17

7 4 Finsbury Hering Schuppener GPG 47,417 46

8 15 Greenbrook Communications 36,194 17

9 6 FTI Consulting 31,148 37

10 24 Prosek Partners 28,377 22

PR advisors by deal count PR advisors by value

League tables

The PR advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

The PR advisor mid-market league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover all sectors.

PR advisors by deal count — mid-market (US$5m – US$250m)PR advisors by value — mid-market (US$5m – US$250m)

mergermarket.com

Deal Drivers AmericasMergermarket 17HY 2019All Sectors


Financial Services

Part of the Acuris reporton global M&A activity

mergermarket.com

Mergermarket 18Deal Drivers Americas HY 2019Financial Services



Financial ServicesOverview

Xinyi Jiang

Yizhu Wang

The adoption of digital technology in the asset management space is expected to drive M&A in the second half of 2019, both for asset managers and their technology vendors, industry experts said.

Technology deployment has been a headache to many wealth managers, especially to those running smaller businesses, said David DeVoe, managing director and founder at DeVoe & Company, an investment bank and consulting firm specialized in wealth management.

While larger players can negotiate with technology providers to access tools in big data, social media, client communication and marketing, this is usually not possible for smaller firms given their limited resources, DeVoe said.

And technology does not come cheap.For example, operational expense for a firm with around US$150bn in assets under management (AUM) rose US$18m to US$23m from 2014 to 2018, according to a study by Casey Quirk and McLagan. Technology expenses make up a big portion of those non-compensation costs, said Amanda Walters, senior manager at Casey Quirk.

On average, nationwide wealth managers charge clients around 1% of AUM, which has not changed much in the past decade, said Jeff Concepcion, founder and CEO of financial planner Stratos Wealth Partners. Advisors are expected to provide a more

robust experience for clients with the same fee, and so smaller firms that do not have the resources to invest in technology could struggle to remain competitive, he said.

As smaller asset management firms start to buckle under the cost of technology, it is easier for them to merge with a larger firm to help offset those expenses, said Marina Shtyrkov, a wealth management analyst at Cerulli Associates.

Larger asset management firms, meanwhile, are on the lookout for targets that face challenges deploying technology. MAI Capital Management managing partner Rick Buoncore told Mergermarket he is looking to buy registered investment advisors (RIAs) that have growth issues due to lack of investment and technology support.

These changing dynamics in asset management are leading to increased M&A and investment interest in vendors of technology in the space. The vendors provide software for investment advisors to rebalance the underlying portfolio, analyze performance and communicate with clients.

Technology vendors’ skills in chatbots, artificial intelligence, enterprise data and analytics (EDA), data management and supply chain management are attractive to asset management firms, said Tom Selby, partner at investment bank Marlin & Associates.

Many solutions help advisors run their day-to-day operations, and the vendors hope to build up the ability to provide a one-stop shop of investment platforms, said Sudip Dhingra, a director covering financial services and fintech at Citizens Commercial Banking.

Vendors who provide the backbone software in asset management include Envestnet [NYSE: ENV] and TA Associates-owned Orion Advisor Services, formerly known as NorthStar Financial Services. Both groups have been very acquisitive getting into the RIA market, Dhingra noted.

SS&C’s [NYSE: SSNC] Black Diamond is another large vendor that has significant market share, Dhingra added. SS&C scooped up Black Diamond through its US$2.5bn acquisition of Advent Software in 2015. In July, Orion announced the acquisition of Advizr for US$7m while Envestnet acquired financial planning software PIEtec for US$500m in March.

The space of turnkey asset management programs (TAMP) is another attractive area, Dhingra said. TAMPs play the role of an outsourced investment manager to actually structure and monitor portfolios on behalf of advisors. For example, in April 2018, Orion, then known as NorthStar, acquired TAMP firm FTJ FundChoice from Seaport Capital. Financial terms were not disclosed.

mergermarket.com


mailto:xinyi.jiang%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry

mailto:yizhu.wang%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate

Status Bidder Company Target Company Vendor Company Deal Value(US$m)

7-Feb-19 P BB&T Corporation SunTrust Banks Inc 28,085

27-Mar-19 P Centene Corporation WellCare Health Plans Inc 15,362

21-Feb-19 C GTCR AssuredPartners Inc Apax Partners 5,100

13-Mar-19 P Brookfield Asset Management Inc Oaktree Capital Group (61.16% stake) 4,728

28-Jan-19 P Chemical Financial Corporation TCF Financial Corporation 3,536

7-Mar-19 C Apollo Global Management Direct ChassisLink Inc (80% stake) EQT Partners AB 2,500

9-May-19 P Reverence Capital Partners Advisor Group Inc (75% stake) Lightyear Capital; and Public Sector Pension Investment Board 2,300

15-Mar-19 P Mechanics Bank Rabobank NA Rabobank NV 2,100

17-Jun-19 P Prosperity Bancshares Inc LegacyTexas Financial Group Inc 2,040

19-Mar-19 C Jones Lang LaSalle Incorporated HFF Inc 1,976

9-Apr-19 C Principal Financial Group Inc Wells Fargo & Company (Institutional retirement & trust business) Wells Fargo & Company 1,350

24-Jan-19 C Protective Life Corporation Great-West Life & Annuity Insurance Company (Individual life insurance and annuity business) Great-West Life & Annuity Insurance Company 1,200

2-Apr-19 P American Family Insurance Company Ameriprise Financial Inc (Ameriprise Auto & Home business) Ameriprise Financial Inc 1,050

8-Apr-19 P Capitol Investment Corp IV Nesco Energy Capital Partners 1,012

16-May-19 C Goldman Sachs & Co United Capital Financial Partners Inc 750

C= Completed; P= Pending

Top 15 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Financial Services Sector

mergermarket.com



Num

ber

of d

eals

0

100

200

300

400

500

600

H1 2019201820172016201520142013

2016

30

1413

21

20

19

32

1

33

1

3

9

1

5

4

7

16

33

103

7

24

3

257239

263

216229

222

155

68

211

277

185

203

256

250

6

88

0

30

60

90

120

150

180

210

240

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$26.2

US$19.7

US$6.6

US$27.7

US$14.5

US$12.5US$10.9

US$xx

US$12.2

US$18.9

US$7.4

US$15.8

US$16.6

US$6.5

US$11.8

US$21.1

US$32.7

US$11.4

US$10

US$80.8

US$26.4

US$16.9

US$149.6

US$18.4 US$

41.1

US$33.2

US$8.9

US$17

US$13.6

US$13

US$5.7

US$3.1

US$4.7

US$17.2US$8.7

US$48.5

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 21

mergermarket.com

Deal Drivers Americas HY 2019Financial Services


Num

ber

of d

eals

0

20

40

60

80

100

120

140

160

180


Valu

e (U

S$

m)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000







Mergermarket 22

mergermarket.com

Deal Drivers Americas HY 2019Financial Services


League tables


Number of Deals



3 243 O'Melveny & Myers 30,585 3





8 22 Cravath, Swaine & Moore 17,393 3

9 56 White & Case 16,722 4



Number of Deals




4 39 Debevoise & Plimpton 1,595 9


6 54 Hunton Andrews Kurth 591 8


8 7 Willkie Farr & Gallagher 1,631 7

9 11 Alston & Bird 266 7



Number of Deals


2 2 Stifel/KBW 8,675 18

3 3 Raymond James/Silver Lane 708 17


5 11 D.A. Davidson & Co 714 10

6 14 JPMorgan 25,409 9

7 13 Evercore 15,882 8



10 5 Barclays 25,862 6


Number of Deals



3 88 SunTrust Robinson Humphrey Capital Markets 30,385 3

4 4 Barclays 25,862 6

5 2 JPMorgan 25,409 9

6 8 Evercore 15,882 8

7 - Allen & Company 15,362 1


9 12 Stifel/KBW 8,675 18



The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Financial Services.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Financial Services.

Legal advisors by value Legal advisors by deal count

mergermarket.com

Mergermarket 23HY 2019Financial Services

Deal Drivers Americas


Part of the Acuris report on global M&A activity


mergermarket.com

Mergermarket 24Deal Drivers Americas HY 2019Industrials, Manufacturing & Engineering



Construction tech is seeing increasing interest from venture capital and private equity firms as companies innovate to combat labor shortages, cost increases and productivity issues in construction, market participants said.

M&A activity in construction tech overall is at “a record high,” with around a third of deals now accounted for by sponsors, said Capstone Headwaters partner Darin Good, who leads the company’s building products and construction efforts nationally.

Labor constraints are a major limiting factor for construction growth and companies are gaining traction by developing products that reduce labor and costs, particularly if they have some sort of tech angle, Good said.

Mergermarket data shows that US construction tech saw an increase in deal activity last year, recording 14 transactions worth a total of US$3.5bn. This was a 46% increase in value with five more deals compared with 2017, when nine construction specific software companies were acquired for a total deal value of US$2.4bn.

Construction is one of the least digitized industries and has ample runway for new developments, while a focus on risk mitigation and safety by contractors has also driven interest from PE firms, Pete Schermerhorn, CEO of Triax Technologies, told Mergermarket. The Connecticut-based company supplies construction firms with network connectivity and safety technology. Schemerhorn said that

M&A activity is “substantially higher than we’ve seen in previous years,” both among strategics and sponsors, but interest is notably growing from funds looking for a specific construction or IoT portfolio.

Last August for example, Providence Strategic Growth Partners acquired ExakTime, a cloud-based tracking application for the construction industry, for an undisclosed amount, while in July JMI Equity invested US$34m for an undisclosed stake in Cosential, an enterprise software company supplying the construction, engineering and architectural firms.

Strategic deals in construction software are also continuing. Last year, Autodesk [NASDAQ:ADSK] spent over US$1bn on three construction tech acquisitions, including the US$875m purchase of PlanGrid in November. Meanwhile, in December 2017, Oracle [NYSE:ORCL] acquired Melbourne-based construction collaborate software company Aconex for US$1.2bn.

According to one industry banker, the labor shortage coupled with safety and environmental concerns is driving a move away from more toxic materials, for example in air conditioning and insulation. The banker pointed to a number of transactions that have occurred in spray foam insulation including Carlisle’s [NYSE:CSL] acquisition of Accella Performance Materials in 2017 and Huntsman’s [NYSE: HUN] acquisition of spray polyurethane foam (SPF) insulation systems manufacturer Demilec.

The banker also noted that M&A activity in prefab, while still in the early stages, is also attracting interest, particularly in light of Katerra’s successful capital raising and acquisition strategy and deals such as Asahi Kasei Homes’ acquisition of Erickson Construction last year.

John Jurewicz, director of technology innovation for US construction firm Walbridge, echoed this sentiment, saying that recent investment interest has focused on tools that help construction companies modularize components and entire buildings. Walbridge, which generated US$1.5bn in revenue in 2017, is investing in new technology to stay ahead of the curve, and photogrammetry for quality control and the visualization of data are two additional areas seeing growing demand, Jurewicz said.

However, despite there being “a lot of venture capital being thrown around,” Jurewicz noted that construction tech remains extremely fragmented, and he anticipates roll-ups and partnerships between complementary technology companies. “There’s going to be more and more pressure to show value.”

As a result, there is growing activist investor activity in building products “as the sentiment there is around portfolio optimization and building scale to reduce corporate overheads,” the industry banker said.

Kasia Patel

Industrials, Manufacturing & EngineeringOverview

mergermarket.com


mailto:kasia.patel%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


8-Mar-19 C DuPont de Nemours Inc (Shareholders) Dow Inc DuPont de Nemours Inc 41,272

7-May-19 C DuPont de Nemours Inc (Shareholders) Corteva Inc DuPont de Nemours Inc 21,928

30-Apr-19 P Gardner Denver Inc Ingersoll-Rand Plc (Industrial segment) Ingersoll-Rand Plc 7,700

26-Mar-19 P Merck KGaA Versum Materials Inc 6,356

28-Jan-19 L Entegris Inc Versum Materials Inc 4,405

29-Apr-19 P Parker Hannifin Corporation Lord Corporation 3,675

25-Feb-19 C Platinum Equity Multi-Color Corporation Diamond Castle Holdings 2,526

17-Jun-19 L Crane Co CIRCOR International Inc 1,615

11-Feb-19 C Ingersoll-Rand Plc Precision Flow Systems Accudyne Industries 1,450

23-Apr-19 P Hitachi Ltd JR Automation Technologies Crestview Partners 1,425

5-Jun-19 C Warburg Pincus Pregis Olympus Partners 1,300

22-Mar-19 P Tenaris SA IPSCO Tubulars Inc TMK OAO 1,209

11-Mar-19 P TPG Capital Goodnight Midstream Tailwater Capital 1,200

10-Apr-19 C Wieland-Werke AG Global Brass and Copper Holdings Inc 1,151

7-May-19 C Honda Motor Co Ltd; SoftBank Group Corp; T. Rowe Price Associates Inc; and General Motors Company GM Cruise 1,150


Top 15 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Industrials, Manufacturing & Engineering Sector

mergermarket.com



0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

H1 2019201820172016201520142013

Num

ber

of d

eals

4030

3236

50

41

4127

3042

1

6

6

7

6

8

8

13

91

4

43

52

636683

777

301

284

284

347

93

15

4

28 213

453

254

305351

571 574

0

25

50

75

100

125

150

175

200

225

250

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$22.5

US$39

US$10.5US$15.4

US$27.1

US$12.4

US$17.6

US$23.7

US$50.5

US$14.8

US$17.7

US$10

US$14.8

US$21

US$10.8

US$17.5

US$15.2

US$38.2

US$36.5

US$29.9

US$136.4

US$77.3

US$53.5

US$156.2

US$6.5

US$24.7 US$

4.9US$5.9

US$6.2

US$17.6

US$40.6

US$28.1

US$50.2US$

43.8

US$48.1

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 27

mergermarket.com

Deal Drivers Americas HY 2019Industrials, Manufacturing & Engineering


0

25

50

75

100

125

150

175

200

225

250

275

300

325


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000







Mergermarket 28

mergermarket.com

Deal Drivers Americas HY 2019Industrials, Manufacturing & Engineering


League tables

Legal advisors by deal countLegal advisors by value



Number of Deals







7 29 Paul Weiss Rifkind Wharton & Garrison 17,660 9



10 8 Jones Day 11,129 36


Number of Deals


2 2 Jones Day 11,129 36



5 13 McGuireWoods 8,373 13

6 5 Paul Hastings 460 13

7 28 Gibson, Dunn & Crutcher 10,466 12

8 4 DLA Piper 1,792 12




Number of Deals

1 2 Lincoln International 595 26


3 14 Barclays 13,953 17

4 18 PwC 1,323 16


6 6 Lazard 16,045 15

7 3 Robert W. Baird & Co 8,400 14


9 31 Evercore 73,815 13

10 20 KPMG 10 13


Number of Deals


2 4 JPMorgan 76,365 12

3 8 Evercore 73,815 13



6 6 Citi 20,399 10

7 3 Lazard 16,045 15

8 13 Barclays 13,953 17



The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover the following sectors: Automotive; Chemicals & Materials; Industrials — electronics; automation and products and services; and Manufacturing — other.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and cover the following sectors: Automotive; Chemicals & Materials; Industrials — electronics; automation and products and services; and Manufacturing — other.

mergermarket.com




Energy, Mining, Oil & Gas

mergermarket.com

Mergermarket 30Deal Drivers Americas HY 2019Energy, Mining, Oil & Gas



Private capital will continue to hold the advantage for dealmaking in energy midstream and infrastructure segments through the end of the year and perhaps longer, sector experts said.

Pipelines and related infrastructure remain in high demand as shale oil and gas production rates continue to grow. Yet most publicly traded midstream companies have been instructed by investors to focus on improving capital returns instead of pushing for growth, said Ethan Bellamy, energy infrastructure senior research analyst at R.W. Baird. “The public operators have fairly stern marching orders against M&A,” he said.

At the same time, private equity funds and other private investment vehicles such as infrastructure funds have raised hundreds of millions of dollars to invest in the subsector and its promise of long-term steady returns.

“Private equity recognizes the value and critical nature of energy infrastructure, and that’s not been reflected by the public yet,” said Rob Thummel, senior portfolio manager for energy at Tortoise Capital Advisors.

With investor demands to cut debt and live within their means, public companies will turn to private capital sources for joint ventures on new projects, said Ramey Layne, partner at Vinson & Elkins law firm in Houston.

“The public operating companies have the know-how in order to develop the projects that the infrastructure funds don’t really have, but [the funds] have a ton of capital they need to put to work.”

That’s led to partnerships such as Epic Midstream, a pair of crude oil and natural gas liquids pipelines running from West Texas’ Permian Basin to coastal processing facilities in Corpus Christi, Texas. The Epic lines are slated to come online in the second half of 2019 and have been funded by investment firm Ares Management [NYSE: ARES]. In January, Noble Midstream Partners [NYSE: NBLX], Altus Midstream [NASDAQ: ALTM] and Rattler Midstream [NASDAQ: RTLR] acquired stakes in the Epic lines.

Shale oil basins need additional infrastructure, but public operators have to live within their means, therefore, public operators expect to see more joint ventures with private companies for project development and acquisitions.

For example, in January, Calgary-based SemGroup [NYSE: SEMG] and PE firm KKR struck a joint venture combining SemGroup’s western Canada pipeline system with KKR cash and debt that was simultaneously used to acquire Canadian pipeline operation Meritage Midstream Services III.

Listed exploration and production companies that own pipelines and are looking to conserve capital should be looking under every rock and selling every midstream asset that is not bolted down, the sources agreed. Private operators are standing by to purchase them.

In an illustration of this trend, EagleClaw Midstream, a West Texas pipeline business owned by affiliates of Blackstone Energy Partners, in May agreed to pay US$182m for midstream assets owned by oil and gas producer PDC Energy [NYSE: PDC].

“Barring some massive change in investor sentiment, I think you’ll see a lot more assets for sale purchased by infrastructure funds or joint ventures,” Layne said.

Thummel and Bellamy were more optimistic that capital discipline and stronger returns would win institutional investors back to the space.

“We think there’s a mountain of free cash flow that’s going to be building in the energy sector over the next several years,” Thummel said. “Ultimately, investors will not be able to avoid the sector.”

Chad Watt

Energy, Mining, Oil & GasOverview

mergermarket.com


mailto:chad.watt%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


9-May-19 P Occidental Petroleum Corporation Anadarko Petroleum Corporation 54,388

12-Apr-19 L Chevron Corporation Anadarko Petroleum Corporation 47,747

14-Jan-19 C Newmont Goldcorp Corporation Goldcorp Inc 12,676

8-May-19 P MPLX Andeavor Logistics (63.58% stake) Marathon Petroleum Corporation 10,288

10-May-19 P IFM Investors Buckeye Partners 10,188

2-Apr-19 P UGI Corporation AmeriGas Partners (74.45% stake) 5,375

3-Jun-19 P JPMorgan Investment Management Inc El Paso Electric Co 4,251

2-Apr-19 P Stonepeak Infrastructure Partners Oryx Midstream Services Concho Resources Inc; Quantum Energy Partners; Post Oak Energy Capital; and WPX Energy Inc

3,600

8-May-19 C MPLX Andeavor Logistics (36.42% stake) 3,268

31-Jan-19 C Blackstone Group; Enagas SA; and GIC Private Limited Tallgrass Equity; and Tallgrass Energy Holdings Kelso & Company; and The Energy & Minerals Group 3,213

29-May-19 C Canadian Natural Resources Limited Devon Canada Corporation Devon Energy Corporation 2,804

18-Mar-19 P ArcLight Capital Partners American Midstream Partners (71.53% stake) Denham Capital Management 2,243

10-Jun-19 P Comstock Resources Inc Covey Park Energy Denham Capital Management 2,098

19-Feb-19 C Blackstone Group Targa Badlands (45% stake) Targa Resources Corp 1,600

23-Apr-19 C Murphy Oil Corporation Llog Exploration Company (Deep water Gulf of Mexico assets) Llog Exploration Company 1,375


Top 15 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Energy, Mining, Oil & Gas Sector

mergermarket.com



0

100

200

300

400

500

600

700

800

H1 2019201820172016201520142013

Num

ber

of d

eals

14

18

5

11

5

8

11

53

54

271

393

302271

329308

65

73

13

74

70

52

5643

14

72

13

80

50

1815

10

126148 160 144 160

21

73

6

69

27

126

0

50

100

150

200

250

300

350

400

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$34.2

US$19.5US$19.6

US$40.2

US$27.2

US$71.8

US$26.8

US$30.3

US$51

US$18.7US$21.6

US$15.8

US$17.5

US$21.7

US$21.4

US$39.1

US$59.1

US$38

US$67.2

US$81.5

US$49.1

US$64.3

US$57.6

US$8.2

US$5.2

US$19.2

US$26.5

US$130.8

US$206.8

US$156.4

US$196.9

US$185.4

US$93

US$24.4

US$30.3

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 33

mergermarket.com

Deal Drivers Americas HY 2019Energy, Mining, Oil & Gas


0

20

40

60

80

100

120

140

160

180

200

220


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000







Mergermarket 34

mergermarket.com

Deal Drivers Americas HY 2019Energy, Mining, Oil & Gas


League tables




Number of Deals




4 126 Freshfields Bruckhaus Deringer 54,831 4




8 155 Alston & Bird 47,747 1

9 9 Vinson & Elkins 34,307 30



Number of Deals



3 5 Baker Botts 27,422 18



6 14 White & Case 32,571 11


8 12 Sidley Austin 20,386 10

9 10 Blake, Cassels & Graydon 5,108 10

10 32 Osler, Hoskin & Harcourt 16,422 9


Number of Deals


2 3 Evercore 71,193 17

3 9 JPMorgan 75,648 15

4 10 Jefferies 78,386 14


6 2 Citi 80,222 13

7 12 Barclays 20,593 13


9 15 TD Securities 19,976 11

10 14 BMO Capital Markets 19,931 10


Number of Deals



3 4 Citi 80,222 13

4 10 Jefferies 78,386 14

5 12 JPMorgan 75,648 15

6 5 Evercore 71,193 17

7 2 Barclays 20,593 13



10 19 Lazard 13,898 7

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Energy; Mining; and Utilities — other.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Energy; Mining; and Utilities — other.

mergermarket.com




Consumer

mergermarket.com

Mergermarket 36Deal Drivers Americas HY 2019Consumer



With fewer restrictions than ever, buyers are increasingly curious about the smoking hot CBD-infused consumer products space, but industry experts said remaining regulatory uncertainty and the young age of the category could result in more minority investments than buyouts in the near term.

The inflection point for bringing CBD, or the non-psychoactive part of the cannabis plant, into the mainstream was the passage of the 2018 US Farm Bill last December, which lifted restrictions on selling hemp-derived products across state lines. Since then, CBD-derived beauty, personal care and pet brands, among others, have made their way into national retail chains like Walgreens, Sephora and American Eagle Outfitters.

Michael Lux, a partner at accounting firm Crowe, said he expects strategic minority investments to make up the bulk of CBD’s activity over the next 6-12 months. Although many of the industry’s players are “growing like weeds,” he explained that most are younger than five years old and not ready to explore full exits.

Despite the category’s young age, Lux said interest from consumer packaged goods (CPG) companies has been “very high,” and noted that many of his firm’s CBD-based consumer clients have been approached for strategic investments, as well as research and retail partnerships.

However, one industry banker cautioned that “it will be a bit off” before the market can expect to see acquisitions from traditional CPG groups, particularly for ingestible products like beverages and edibles, since the Food and Drug Administration (FDA) is still working to create a regulatory framework for CBD.

Meanwhile, CBD companies who operate in the personal care space, with products like topical creams and beauty products, are more likely to receive strategic investments, said the advisor and a second banker interviewed for this report. Both noted that regulators are more comfortable with non-digestible products, making them a less risky investment.

Canadian cannabis companies, many of which are dual listed on the Canadian and US stock exchanges, are especially likely to invest in US CBD brands in the near term, each of the sources said, explaining these businesses provide entry into the US market without jeopardizing their US listings, since THC is still federally illegal in the US.

Canopy Growth’s [TSX: WEED, NYSE: CGC] acquisition of London-based natural skincare company This Works in May could be seen as evidence of hemp producers’ interest in the personal care space.

While some financial sponsors, such as Seattle-based Privateer Holdings, were built

specifically to invest in CBD and cannabis brands, each source said most US financial sponsors would be barred from investing in the category since most existing funds restrict investments in the space. Lux said he has “heard of a few” sponsors who are interested in raising CBD-friendly funds, but noted that this could take a significant amount of time.

Strategic buyers across a range of industries, including pharmaceuticals, consumer products and food and beverage, are expected to show interest in acquiring CBD brands once FDA regulations become more clear, but in the meantime, activity will be limited to minority investments, particularly from Canada, each of the sources agreed.

“I think people are still trying to figure out where this is going to go,” said Lux. “It’s an industry that didn’t exist 10 years ago and barely existed five years ago, and it sounds cliché, but the sky really is the limit here.”

Emily Fasold

ConsumerOverview

mergermarket.com


mailto:emily.fasold%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


12-Feb-19 C JAB Holdings BV Coty Inc (19.97% stake) 9,119

17-Jan-19 C ESL Investments Inc Sears Holdings Corporation 5,200

22-May-19 P Natura Cosmeticos SA Avon Products Inc Cerberus Capital Management 3,557

10-Jun-19 P Apollo Global Management Shutterfly Inc 2,498

30-Apr-19 C VF Corporation (Shareholders) Kontoor Brands Inc VF Corporation 1,920

3-Apr-19 P E & J Gallo Winery Inc Constellation Brands Inc (Portfolio of 30 wine and spirits brands, along with six winemaking facilities) Constellation Brands Inc 1,700

9-May-19 P Edgewell Personal Care Company Harry's Inc Temasek Holdings Pte Ltd; Highland Capital Partners; Tiger Global Management; SV Angel; Thrive Capital; Alliance Consumer Growth; and Red Swan Ventures

1,370

1-Apr-19 C Ferrero SpA Kellogg Company (Selected cookies and fruit snacks business) Kellogg Company 1,300

1-May-19 P Curaleaf Holdings Inc Cura Partners Inc 1,149

16-Apr-19 C Apollo Global Management Smart & Final Stores Inc Ares Management 1,096

28-Mar-19 C Church & Dwight Co Inc Ideavillage Products Corporation (Finishing Touch and Flawless Brand business) Ideavillage Products Corporation 900

31-Jan-19 P Symrise AG American Dehydrated Foods Inc; International Dehydrated Foods Inc; and IsoNova Technologies Darrco 900

9-May-19 C Perrigo Company plc Ranir Beringea; Linden Capital Partners; Camden Partners Holdings; and Kayak Holdings 750

7-Jun-19 P Elliott Management Corporation Barnes & Noble Inc 589

13-May-19 P Beiersdorf AG Bayer AG (Coppertone business) Bayer AG 550


Top 15 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Consumer Sector

mergermarket.com



0

100

200

300

400

500

600

700

H1 2019201820172016201520142013

Num

ber

of d

eals

5

7

64

4

9

58

524

2227

24

1921

22

109

5

32

173

145

348386

147

160

399

24

5

25 25

229

12

65

21

122

169

172

424

341

260

0

20

40

60

80

100

120

140

160

180

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$8.4

US$25

US$8.9

US$7.7

US$10.8

US$9

US$10.7

US$7.4

US$7.9

US$10.6

US$8.9US$

3.9

US$28.7

US$104.5

US$65.5

US$28.3

US$23.8

US$27.4

US$28.1

US$19.5

US$13.3

US$9.7

US$30.5

US$24.6

US$14.3

US$27.9

US$12.4

US$12.7

US$3.4

US$3.6

US$6.1

US$14.3

US$12.4

US$59.1

US$84

US$116.8

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 39

mergermarket.com

Deal Drivers Americas HY 2019Consumer


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60,000

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Mergermarket 40

mergermarket.com

Deal Drivers Americas HY 2019Consumer


League tables




Number of Deals




4 43 Richards Layton & Finger 9,119 1








Number of Deals


2 2 Jones Day 2,381 13


4 4 DLA Piper 374 10




8 12 McDermott Will & Emery 536 8




Number of Deals


2 18 Citi 8,724 9

3 6 Lazard 11,892 8


5 9 Centerview Partners 12,175 7

6 3 Houlihan Lokey 936 7

7 17 Rothschild & Co 508 7

8 26 Robert W. Baird & Co 306 7

9 7 JPMorgan 5,602 6

10 14 PwC 235 6


Number of Deals


2 12 Lazard 11,892 8

3 11 Evercore 9,587 4


5 14 Citi 8,724 9


7 19 UBS Investment Bank 6,055 4


9 3 JPMorgan 5,602 6

10 - M-III Partners 5,200 1

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Consumer — retail, food and other.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sector: Consumer — retail, food and other.

mergermarket.com





mergermarket.com

Mergermarket 42Deal Drivers Americas HY 2019Technology, Media & Telecom



Consolidation should continue in business intelligence and data analytics software after a flurry of dealmaking in the first half of 2019.

A spotlight shone brightly on the space after Alphabet’s [NASDAQ: GOOG] Google acquired analytics startup Looker for US$2.6bn on 6 June and days later Salesforce [NYSE: CRM] acquired data visualization company Tableau Software for US$15.7bn on 10 June. Other deals this year include Qlik’s US$560m acquisition of data integration and management software player Attunity.

The deals make clear that every software application company has three things it must now think about: data collection, workflow tools, and then analytics and business reporting on that data, said a venture capitalist.

“Everybody’s moving into this business of analytics and business processing,” said Sky Cassidy, CEO of CRM and marketing data curation business MountainTop Data. “Companies will try to keep up with the competition by purchasing the necessary assets,” he said.

Cassidy and others added that Salesforce, in particular, acquired Tableau to provide more precise business data services to enterprise clients and better compete with Microsoft [NASDAQ: MSFT].

These deals could drive interest in other private equity-backed BI players in the space, namely

Qilk itself, backed by Thoma Bravo following a US$3bn deal in June 2016, as well as Tibco Software, held by Vista Equity Partners since a US$4.3bn buyout in September 2014, and Informatica, acquired in April 2015 for US$5.3bn by Permira Funds and Canada Pension Plan Investment Board.

“All three of those companies are really trying to figure out how to set themselves up for an eventual exit similar to what Looker and Tableau have done,” said Hyoun Park, CEO at Amalgam Insights, a technology consulting firm. Other possible targets in the sector include ThoughtSpot, which raised a US$145m Series D on 8 May and Domo [NASDAQ: DOMO], which could seek a PE backer to improve its cost structure and drive revenue growth, added Park.

Another target could be BI company Board International, said Rebecca Wettemann, a vice president at market research firm Nucleus Research. Wettemann said large software vendors are interested in these solutions to embed analytics in their own platforms.

BI and analytics solutions are needed for the longevity of digital enterprise businesses and for complex computing in IoT devices, as well as for machine-learning functions, said Howard Dresner of Dresner Advisory Services.

“It’s going to be basic survival [for enterprises] to be able to leverage that data as quickly

as possible and completely as possible, and turn that into either solving problems or addressing opportunities as they present themselves,” he said.

Park and others also believe that demand for these solutions are part of a play by the large tech firms like Google to improve their own cloud computing capability more generally. “Analytics and cloud data management are obviously important parts of that puzzle. That’s what’s really going on,” said Park.

Companies like Amazon [NASDAQ: AMZN] or Oracle [NYSE: ORCL] — which both offer cloud computing platforms — could next look for BI companies, said a sector advisor.

The capability to analyze data is becoming a more essential function of cloud-based computing infrastructure and services that can be deployed and gain scale quickly, said Justin Donato, VP of IT at workflow automation platform maker Nintex.

“It’s really driving towards empowering business owners with a short learning curve to [gain] real tangible value with business intelligent solutions,” he said.

Thomas Zadvydas

Technology, Media & TelecomOverview

mergermarket.com


mailto:thomas.zadvydas%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


28-May-19 P Global Payments Inc Total System Services Inc 25,719

10-Jun-19 P Salesforce.com Inc Tableau Software Inc 15,027

8-May-19 P Zayo Group Consortium Zayo Group Holdings Inc 14,116

4-Feb-19 C Hellman & Friedman — Blackstone consortium Ultimate Software Group Inc 11,790

3-May-19 P Sinclair Broadcast Group Inc Fox Sports Net The Walt Disney Company 9,600

3-Jun-19 P Infineon Technologies AG Cypress Semiconductor Corporation 9,302

11-Mar-19 P NVIDIA Corporation Mellanox Technologies Ltd 6,758

12-Jun-19 P Dassault Systemes SA Medidata Solutions Inc 5,721

14-Apr-19 C Publicis Groupe SA Epsilon Data Management Alliance Data Systems Corporation 4,400

12-Feb-19 C Thoma Bravo Ellie Mae Inc 3,277

6-Jun-19 P Google Looker Data Sciences Inc Redpoint Ventures; Kleiner Perkins; Meritech Capital Partners; Sapphire Ventures; First Round Capital; Cross Creek Capital; PremjiInvest; PivotNorth Capital; CapitalG; and Geodesic Capital

2,600

1-May-19 P McGraw-Hill Education Inc Cengage Learning Holdings II Inc Apax Partners; KKR Asset Management; and Searchlight Capital Partners 2,578

15-Apr-19 P Siris Capital Group Electronics for Imaging Inc 1,829

29-May-19 P NXP Semiconductors NV Marvell Technology Group Ltd (Wi-Fi connectivity business) Marvell Technology Group Ltd 1,760

16-Jan-19 C Golden Gate Capital; and Koch Equity Development Infor Inc Summit Partners 1,500

14-Jan-19 P Micron Technology Inc IM Flash Technologies (49% stake) Intel Corporation 1,500


Top 16 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Technology, Media & Telecom Sector

mergermarket.com



0

200

400

600

800

1,000

1,200

1,400

1,600

H1 2019201820172016201520142013

Num

ber

of d

eals

4145

45

67

57

47

3435

55

5

63

7

499

419

524

413

6

9

14 13

5

18

13

28

489

885806

727

399

522

63

60

11

11

206

3433 48

471

605 599

0

50

100

150

200

250

300

350

400

450

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$33

US$56.5

US$36.5

US$16.5

US$31

US$90.7

US$16.7US$25.8

US$42.1

US$48.5

US$19.6

US$30

US$26.4

US$37.3

US$23.7

US$39.4

US$19.7

US$29.2

US$12.6

US$170.2

US$121.1

US$262.6

US$190.4

US$22.4

US$68

US$33.5

US$107.9

US$67.3

US$57.1

US$12.1

US$14

US$12.9

US$30.2

US$183.9

US$98

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 45

mergermarket.com

Deal Drivers Americas HY 2019Technology, Media & Telecom


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60,000

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140,000

160,000

180,000

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Mergermarket 46

mergermarket.com

Deal Drivers Americas HY 2019Technology, Media & Telecom


League tables




Number of Deals










10 84 King & Spalding 25,719 3


Number of Deals



3 4 DLA Piper 1,433 54

4 3 Cooley 24,171 40




8 7 Jones Day 11,573 34




Number of Deals

1 4 William Blair & Company 3,218 22

2 1 Raymond James | Silver Lane 1,958 21


4 8 JPMorgan 80,148 18


6 5 Evercore 8,354 18


8 6 Canaccord Genuity Group 684 15


10 22 Barclays 10,179 14


Number of Deals


2 5 JPMorgan 80,148 18




6 72 Greenhill & Co 29,505 8

7 8 Deutsche Bank 28,878 11

8 23 Allen & Company 19,603 3

9 15 Qatalyst Group 15,962 5


The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sectors: Computer — software, hardware and semiconductors; Telecommunications — hardware; Internet/e-Commerce; Media; and Telecommunications — carriers.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sectors: Computer — software, hardware and semiconductors; Telecommunications — hardware; Internet/e-Commerce; Media; and Telecommunications — carriers.

mergermarket.com




Life Sciences & Healthcare

mergermarket.com

Mergermarket 48Deal Drivers Americas HY 2019Life Sciences & Healthcare



The continuing push to value-based care and a shift away from expensive hospital care will continue to propel senior care M&A, though certain areas may see a short-term lull as investors await the impact of new federal reimbursement regimes, dealmakers said.

Home health, which is increasingly part of the elder care continuum as new technologies allow seniors to remain at home, saw some notable deals in 1H19. Encompass Health [NYSE: EHC] acquired Alacare Home Health & Hospice for US$218m in April, while sponsor Advent International acquired AccentCare for an undisclosed price in May.

In the latter half of 2019, however, home health M&A may see a temporary cool-down as reimbursement changes from the Centers for Medicaid and Medicare Services (CMS) are implemented, said Jim Moskal, partner and lead healthcare banker at Livingstone Partners.

CMS’ Patient-Driven Groupings Model, set to take effect in January 2020, cuts payment periods from 60 to 30 days, and takes therapy volume out of consideration when determining home health agency payments. Instead, it is applying a value-based care model designed to thwart excessive fees, experts said.

“There are some deals getting done, but people want to see [what happens with] the new reimbursement model,” Moskal said. “Experts in the industry are making predictive models of how it’s going to affect people, but

ultimately, the large players tend to like stuff like this. It shakes out all the mom-and-pops.”

While larger-scale deal activity may slow down as consolidators apply a wait-and-see attitude, the lower middle market is likely to see a round of M&A, as small home health agencies are “scared and want to sell,” Moskal said.

Despite this regulatory headwind, the outlook on senior care is relatively sunny, experts agreed. As the Baby Boomer population ages, “the move to get the healthier people out of hospitals … is not going to slow down,” said Mark Claster, managing partner at investment bank Carl Marks Advisors. Claster said the increasing demand for alternative sites of care for seniors is an evergreen driver of M&A in the space.

Moskal said non-skilled, non-medical homecare will likely see robust activity over the next six months, driven primarily by sponsors. These providers, which help seniors with activities of daily living, are not subject to CMS reimbursement changes since they are typically paid for by private health insurance.

“Private equity has poured money into non-skilled homecare via the franchise model,” Moskal added, noting there are now nine PE-backed non-skilled homecare franchises.

“We’re not afraid of investing in a healthcare business with reimbursement risk, but we understand that non-medical providers have the added benefit of being largely private-pay

and not impacted,” said Peter Spring, managing director at Bain Capital Double Impact. Bain Capital Double Impact, the impact investing business of Bain Capital, invested in senior care providers Arosa and HealthDrive over the last year.

Dovetailing off the health of non-skilled home care, adult day-based program providers are likely to be a hot area for investment over the next six months, Spring added. These programs, which provide companionship, socialization and memory care, offer an affordable complement to services provided in the home. Welsh Carson Anderson & Stowe, for instance, invested in Denver-based InnovAge, which operates senior day care facilities, in 2016 and is pushing to expand the program nationwide.

Claire Rychlewski

Life Sciences & HealthcareOverview

mergermarket.com


mailto:claire.rychlewski%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


3-Jan-19 P Bristol-Myers Squibb Company Celgene Corporation 89,489

25-Feb-19 P Danaher Corporation GE Healthcare Life Sciences (Biopharma business) GE Healthcare Life Sciences 21,400

17-Jun-19 P Pfizer Inc Array BioPharma Inc 10,746

7-Jan-19 C Eli Lilly and Company Loxo Oncology Inc 7,091

2-May-19 P 3M Company Acelity Apax Partners; Canada Pension Plan Investment Board; and Public Sector Pension Investment Board 6,725

25-Feb-19 P Roche Holding AG Spark Therapeutics Inc 4,250

9-May-19 C Novartis AG Takeda Pharmaceutical Company Limited (Xiidra business) Takeda Pharmaceutical Company Limited 3,400

13-Feb-19 C Ethicon Inc Auris Health Inc Highland Capital Partners; Lux Capital; and NaviMed Capital Advisors 3,400

15-Mar-19 P BioScrip Inc Option Care Enterprises Inc Madison Dearborn Partners; Walgreens Boots Alliance Inc; and TRIAD Capital Management 2,406

7-Mar-19 P Shanghai RAAS Blood Products Co Ltd Grifols Diagnostic Solutions Inc (45% stake) Grifols SA 1,974

24-Mar-19 C Thermo Fisher Scientific Inc Brammer Bio Ampersand Capital Partners 1,700

6-Jun-19 P Anthem Inc Beacon Health Options Inc Bain Capital; and Diamond Castle Holdings 1,500

14-Apr-19 C Catalent Inc Paragon Bioservices Inc Camden Partners Holdings; and NewSpring Capital 1,200

28-Jan-19 C PHC Holdings Corporation Thermo Fisher Scientific Inc (Anatomical pathology business) Thermo Fisher Scientific Inc 1,140

21-May-19 P Merck & Co Inc Peloton Therapeutics Inc Topspin Partners; OrbiMed Advisors; The Column Group; Nextech Invest Ltd; Remeditex Ventures; Foresite Capital Management; EcoR1 Capital; Curative Ventures Management; and Vida Ventures

1,050


Top 15 Announced Deals for Half Year Ending 30 June 2019 — North American Targets Life Sciences & Healthcare Sector

mergermarket.com



0

75

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225

300

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H1 2019201820172016201520142013

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9

5

32

2828

27

36

30

1922

24

45

12

55

9

12

7

117

58

26

34

5

1348

412

355

300

211

259

248

155

118

232

249

316

256

209

183

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H1 2019201820172016201520142013

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S$

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US$31.3

US$35.1

US$9.8

US$25.2

US$13.2

US$10.2

US$23.1

US$10.4US$14

US$14.9

US$11.2

US$42.5

US$13

US$41

US$7.9

US$13

US$17

US$42

US$135.5

US$158.8

US$109.2

US$8.7

US$7.7

US$14.1

US$2.7

US$13.5

US$25.9

US$23.6

US$33 US$

28US$19.1

US$15.1

US$57.7

US$152.4

US$52.2

Mergermarket.com

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 51

mergermarket.com

Deal Drivers Americas HY 2019Life Sciences & Healthcare


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Mergermarket 52

mergermarket.com

Deal Drivers Americas HY 2019Life Sciences & Healthcare


League tables




Number of Deals




4 - Slaughter and May 175,759 2



7 110 Mayer Brown 89,624 3

8 17 Jones Day 89,616 10

9 44 Arthur Cox 86,371 3

10 115 McCann FitzGerald 86,300 2


Number of Deals




4 7 Ropes & Gray 4,062 17


6 9 McGuireWoods 214 15



9 11 Greenberg Traurig 256 11

10 6 DLA Piper 146 11


Number of Deals

1 1 JPMorgan 210,906 15



4 24 Cain Brothers / KBCM 1,063 11


6 5 Houlihan Lokey 479 8

7 6 Piper Jaffray & Co 235 8


9 42 Deloitte 426 7

10 9 Barclays 21,761 6


Number of Deals

1 1 JPMorgan 210,906 15


3 22 Citi 115,565 5

4 10 PJT Partners 107,845 5

5 7 Evercore 93,284 4

6 8 Dyal Co 89,489 1



9 12 Barclays 21,761 6

10 3 Guggenheim Partners 12,037 5

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sectors: Biotechnology; Medical; and Pharmaceuticals.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a North American (US & Canada) bidder, target or vendor and are based on the following sectors: Biotechnology; Medical; and Pharmaceuticals.

mergermarket.com



CA


Canada

mergermarket.com

Mergermarket 54Deal Drivers Americas HY 2019Canada



The marijuana gold rush is far from over in Canada, but structural changes are coming to what has been a smoking hot sector, industry experts said.

While Canada has been the international venue of choice for US, Canadian and European cannabis and hemp companies seeking funds or public listings for at least five years, the changing regulatory environment in the US has altered the status quo.

“We’ve had sort of a monopoly (in financing) on the cannabis and hemp side for years, and now some of that business is being taken away,” said Mike Evans, founder and principal of the Vancouver-based boutique investment bank Evans & Evans, which has worked on 85 cannabis and hemp transactions since 2015.

What changed? The December 2018 passage of the US Farm Bill decriminalized hemp (a form of the marijuana plant without the buzz-inducing THC), making it possible for US-based investors and banks to fund the burgeoning sector in the US. So while cannabis remains a controlled substance in the US on the federal level, and therefore off limits for most investors, the hemp industry and associated cannabidiol (CBD) products face no such roadblocks.

“Now that the door has been opened (in the US) it means less business for us,” he said, as hemp companies can raise funds and be listed on US exchanges.

But the Farm Bill door swings both ways, as it also allows Canadians to invest in US hemp assets, said Patricia Olasker, a partner with the Toronto-based law firm Davies Ward Phillips & Vineberg, a major player in cannabis and hemp advisory.

“Because investing in the US hemp market will no longer endanger their Canadian listings, Canadian companies are looking very seriously for acquisitions in the US,” she said. Likewise, US-based sellers “are now coming to Canada looking for buyers,” she added. Potential US targets for Canadians include hemp farming assets, CBD branded products, edibles and topicals.

Olasker said her firm is working on at least one “significant M&A deal” that can go forward because of changes in the Farm Bill. “The full impact has yet to be seen,” she predicted.

The sources agreed that the Canadian IPO gold rush of recent years has resulted in an oversupply of public cannabis companies. Evans said sector share prices peaked about a year ago and have declined roughly 30% off the highs. Weaker players — cultivators, manufacturers and distributors of cannabis — will seek buyers, he predicted.

“Guys like me are now shifting from IPO mode to M&A mode,” he said.

Olasker said there are approximately 175 licensed cannabis producers in Canada,

“and you’ve probably heard of 10 of them. These producers are going to be driven to M&A as an exit strategy,” she said.

The next big shoe to drop could be the legalization of cannabis on the federal level in the US. There is increasing speculation that as more states legalize recreational and medicinal cannabis, decriminalization is inevitable.

“Will it be a good thing (for Canada) as US entities come into Canada,” Olasker said, “or will it be the end of the party in Canada as capital exits in search of returns in the US?”

Jeff Sheban

CanadaOverview

mergermarket.com


mailto:jeff.sheban%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2019 — Canada All Sectors (Based On Target)

AnnouncedDate


14-Jan-19 C Newmont Goldcorp Corporation Goldcorp Inc Energy, Mining, Oil & Gas 12,676

13-May-19 P Onex Partners WestJet Airlines Ltd Transportation 3,592

29-May-19 C Canadian Natural Resources Limited Devon Canada Corporation Energy, Mining, Oil & Gas Devon Energy Corporation 2,804

5-Apr-19 L OMERS Infrastructure Management Inc 407 International Inc (10.01% stake) Transportation SNC-Lavalin Group Inc 2,246

22-Jan-19 L Green Growth Brands Inc Aphria Inc (98.83% stake) Agriculture 1,723

24-Jun-19 P Greystone Managed Investments Inc; and IST Investmentstiftung Alberta PowerLine Limited Energy, Mining, Oil & Gas Quanta Services Inc; and Canadian Utilities Limited 1,286

28-May-19 P Alberta Investment Management Corporation Northern Courier Pipeline (85% stake) Energy, Mining, Oil & Gas TransCanada Corporation 1,150

16-May-19 C Kohlberg Kravis Roberts & Co Corel Corporation Business Services Vector Capital 1,000

11-Mar-19 C CCMP Capital Advisors BGIS Group Business Services Brookfield Business Partners 1,000

28-Jan-19 C Columbia Basin Trust; and Columbia Power Corporation Waneta Expansion Hydroelectric Project Energy, Mining, Oil & Gas Fortis Inc 1,000

25-Feb-19 C Ipsen SA Clementia Pharmaceuticals Inc Life Sciences & Healthcare New Enterprise Associates; BDC Capital; and OrbiMed Advisors 874

27-Mar-19 P Noverco Inc Valener Inc Energy, Mining, Oil & Gas 824

10-Mar-19 P Newcrest Mining Limited Red Chris Mine (70% stake) Energy, Mining, Oil & Gas Imperial Metals Corporation 807

25-Jun-19 P Mitsubishi Heavy Industries Ltd Bombardier Inc (Canadair regional jet program) Industrials, Manufacturing & Engineering Bombardier Inc 750

29-Apr-19 C Capital Power Corporation Goreway Power Station Energy, Mining, Oil & Gas Toyota Tsusho Corporation; and JERA Co Inc 726


mergermarket.com



0

100

200

300

400

500

600

700

H1 2019201820172016201520142013

Num

ber

of d

eals

24 32

25

27

2237

1920

26

283

413

1

1

43

8

39

32

22

1

1217

106

151

304295308

335

271

303

307

247

294

304

278 256

2

0

20

40

60

80

100

120

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$24.7

US$20.7

US$12.4

US$8

US$18.4

US$7.6

US$29.4

US$33.1

US$31

US$37.3

US$9.9

US$23.2

US$13.3

US$19.6

US$24.2

US$4.6

US$19.1

US$7.4

US$18 US$

14.5US$12.8

US$14.5

US$7.7

US$9.3

US$9.4

US$14.8

US$25

US$21.5

US$26.8

US$5.7

US$6.4

US$13.4

US$12.8

US$4.4

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 57

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Deal Drivers Americas HY 2019Canada


Num

ber

of d

eals

0

5

10

15

20

25

30

35

40

45

50

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

1

4845

39

20

42

25

13

3

7

13

1815

Valu

e (U

S$

bn)

0

5

10

15

20

25

30

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$0.1

US$0.1

US$0.8US$

2

US$0.7

US$1.2 US$

0.6 US$0.3US$

1.4

US$3.2

US$2.7

US$3.9

US$25.8


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Canada. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Canada. Industry sector is based on the dominant industry of the target.

Mergermarket 58

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0

25

50

75

100

125

150

175

200


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000




Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Canada.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Canada.

Mergermarket 59

mergermarket.com



League tables




Number of Deals


2 48 White & Case 20,153 9


4 60 King & Wood Mallesons 17,832 6

5 22 Goodmans 17,288 10

6 57 Cassels Brock & Blackwell 16,431 13




10= - Lee & Ko 12,676 1

10= 150 Neal, Gerber & Eisenberg 12,676 1


Number of Deals


2 1 Blake, Cassels & Graydon 10,369 37


4 3 McCarthy Tetrault 8,539 26

5 5 Torys 8,944 21

6 10 Norton Rose Fulbright 8,553 21

7 6 Gowling WLG 385 18


9 18 Miller Thomson 1,721 15

10 12 Cassels Brock & Blackwell 16,431 13


Number of Deals

1 2 Deloitte 1,915 23


3 9 Canaccord Genuity Group 2,477 16



6 5 CIBC World Markets 10,820 14


8 4 Scotiabank 1,455 13

9 20 JPMorgan 17,430 12



Number of Deals



3 25 UBS Investment Bank 23,049 7


5 2 Citi 19,836 8

6 8 JPMorgan 17,430 12




10 39 Fort Capital 12,686 3

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a Canadian bidder, target or vendor.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a Canadian bidder, target or vendor.

mergermarket.com



W


West

mergermarket.com

Mergermarket 61Deal Drivers Americas HY 2019West



“Content is King.” It’s not Stephen Spielberg who coined the expression, but tech icon Bill Gates, in a 1996 essay where he described the future of the internet as a marketplace for content. Fast-forward 23 years, through the advent of social media, music streaming, over-the-top television, and mobile video games, and the prophecy has certainly come true.

To date, producers — be they, TV and film studios, video game developers, music agencies or podcasters — have, by and large, struck licensing or revenue share partnership deals with the technology platforms that host, distribute and monetize their content.

But, increasingly, these partnerships are strained. Netflix [NASDAQ: NFLX], for example, is losing its rights to its two most-watched series, Friends and The Office, as the owners of the shows, WarnerMedia and NBCUniversal, pull them off for exclusive distribution on their own imminent streaming platforms. This bubbling, competitive environment moves the market away from strategic partnerships and increases the probability of buyouts and takeovers, according to five industry executives.

When that tipping point will occur is unclear, but there are leading M&A indicators and the US can expect at least one mega, multi-billion dollar merger of a technology and media giant, said T. Hale Boggs, partner in the MediaTech M&A practice of O’Melveny.

Intellectual property (IP) rights are the underlying assets up for grabs, as the beloved franchises and characters take decades to develop, and can be repurposed into multiple, perpetual revenue streams from merchandise to video games to theme parks, said Paul Westphal, CFO of Hollywood visual effects studio The Third Floor.

Westphal gave the example of Disney [NYSE: DIS], which acquired the rights to the Star Wars franchise with a US$624.1bn purchase of Lucasfilm in 2012, and is today monetizing the purchase with Star Wars-themed attractions at Disneyland.

Small and mid-sized production studios that produce B-rate shows and movies without significant IP value are still desirable acquisition targets, because cable channels and streaming platforms all need backfill content, added Westphal, who is also the former CFO of Destination Films, which later sold to Sony [NYSE: SNE].

In fact, many independent production studios target niche audiences with the aim to eventually attract a big tech, media or telecom company, said Edward Allen, COO of Lionsgate-owned, Spanish-language film production subsidiary Pantelion Films.

This dynamic is also playing out in gaming. Microsoft [NYSE:MSFT], which created Xbox and console game subscription service

Game Pass, is an active acquirer of small, independent video game developers, said Matt Small, CEO of San Rafael, California-based game developer Vector Unit. The tech giant, which is expected to soon launch its xCloud video game streaming service, has also acquired San Francisco-based video game developer Double Fine Productions. Google [NASDAQ: GOOGL] could follow suit, Small noted, adding that the tech conglomerate plans to launch its own video game streaming platform, Stadia, in November.

Not to be left behind, the music streaming industry is making its own inroads into audio content M&A. In February, Spotify [NYSE: SPOT] bought Brooklyn, New York-based podcasting company Gimlet Media for a reported US$200m.

Acquiring music IP could be a logical long-term strategy for Spotify because the Stockholm-based streaming app licenses music, paying out 75 cents on every dollar of revenue it earns to the large music agencies like Universal, Sony and Warner, said Tamer Rashad, CEO of San Francisco-based music creation platform Humtap.

But for how much? When asked for a revenue or EBITDA multiple on these potential acquisitions, Boggs said content-based acquisitions don’t quite work that way. IP is valued as an asset, whose worth is calculated by its brand power and longevity, among other factors, he added.

Reyhaneh Fathieh

WestOverview

mergermarket.com


mailto:reyhaneh.fathieh%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2019 — West (Based On Target)

AnnouncedDate


24-Jun-19 P Eldorado Resorts Inc Caesars Entertainment Corporation Leisure 16,087

10-Jun-19 P Salesforce.com Inc Tableau Software Inc Technology, Media & Telecom 15,027

8-May-19 P Zayo Group Consortium Zayo Group Holdings Inc Technology, Media & Telecom 14,116

17-Jun-19 C Pfizer Inc Array BioPharma Inc Life Sciences & Healthcare 10,746

3-Jun-19 P Infineon Technologies AG Cypress Semiconductor Corporation Technology, Media & Telecom 9,302

11-Mar-19 P NVIDIA Corporation Mellanox Technologies Ltd Technology, Media & Telecom 6,758

26-Mar-19 P Merck KGaA Versum Materials Inc Industrials, Manufacturing & Engineering 6,356

13-Mar-19 P Brookfield Asset Management Inc Oaktree Capital Group (61.16% stake) Financial Services 4,728

28-Jan-19 L Entegris Inc Versum Materials Inc Industrials, Manufacturing & Engineering 4,405

3-Jun-19 P JPMorgan Investment Management Inc El Paso Electric Co Energy, Mining, Oil & Gas 4,251

13-Feb-19 C Ethicon Inc Auris Health Inc Life Sciences & Healthcare Highland Capital Partners; Lux Capital; and NaviMed Capital Advisors 3,400

12-Feb-19 C Thoma Bravo Ellie Mae Inc Technology, Media & Telecom 3,277

6-Jun-19 P Google Looker Data Sciences Inc Technology, Media & Telecom Redpoint Ventures; Kleiner Perkins; Meritech Capital Partners; Sapphire Ventures; First Round Capital; Cross Creek Capital; PremjiInvest; PivotNorth Capital; CapitalG; and Geodesic Capital

2,600

10-Jun-19 P Apollo Global Management Shutterfly Inc Consumer 2,498

9-May-19 P Reverence Capital Partners Advisor Group Inc (75% stake) Financial Services Lightyear Capital; and Public Sector Pension Investment Board 2,300


Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

mergermarket.com



0

200

400

600

800

1000

1200

1400

1600

1800

H1 2019201820172016201520142013

Num

ber

of d

eals

71

5570

7476

66

4752

9

64

8015

7

12

14

28

87

77

22

10

15

22 16

477

573

715

621

733

497

819

1,012

4333

87

22

901

601

586

439

218

548

0

50

100

150

200

250

300

350

400

450

500

H1 2109201820172016201520142013

Valu

e (U

S$

bn)

US$25.3

US$30

US$68.8

US$69

US$27.5

US$51.8

US$27.6

US$22.8

US$36.7

US$15.9

US$171.2

US$165.3

US$13.8

US$95.5

US$36.9

US$39.7

US$283

US$67

US$69.4

US$33.5

US$20.6

US$90.2

US$71.6

US$55.2

US$42.9

US$72.3

US$64.9

US$87.9

US$28.1

US$41.5

US$25.2

US$96.5

US$78.4

US$42.7 US$

11.9

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 64

mergermarket.com

Deal Drivers Americas HY 2019West


Num

ber

of d

eals

0

25

50

75

100

125

150

175

200

225

250

275

300

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

13 16 27 9

3117

96

51

93

69

261

83

Valu

e (U

S$

bn)

0

10

20

30

40

50

60

70

80

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$5.1

US$7.6

US$9.8 US$

N/DUS$0.5

US$0.5

US$0.3

US$3

US$15.1

US$79.1

US$17.1US$

11.6

US$22.1


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the West. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the West. Industry sector is based on the dominant industry of the target.

Mergermarket 65

mergermarket.com



0

50

100

150

200

250

300

350

400

450

500


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

25,000

50,000

75,000

100,000

125,000

150,000




Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the West.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the West.

Mergermarket 66

mergermarket.com



League tables




Number of Deals





5 31 Alston & Bird 54,810 13





10 22 Kirkland & Ellis 46,495 101


Number of Deals





5 5 DLA Piper 1,110 50


7 3 Cooley 26,436 42


9 7 Jones Day 16,318 35



Number of Deals


2 6 Jefferies 12,832 30

3 7 Evercore 8,765 25

4 4 JPMorgan 60,690 24

5 16 Piper Jaffray & Co 1,145 24

6 9 Barclays 13,062 22






Number of Deals


2 3 JPMorgan 60,690 24


4 7 Deutsche Bank 44,635 13



7 35 Guggenheim Partners 27,917 7

8 15 Citi 24,477 12

9 24 Lazard 19,690 19

10 40 Macquarie Group 18,689 6

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a West Coast bidder, target or vendor. States: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a West Coast bidder, target or vendor. States: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.

mergermarket.com



MW


Midwest

mergermarket.com

Mergermarket 68Deal Drivers Americas HY 2019Midwest



Transactions in the Midwest for the first half of the year totaled US$169bn, a 72% increase on the second half of 2018 despite volume falling to its lowest level since H2 2013. The higher value, lower volume dynamic is being driven by easily available financing, a solid economy and an ongoing battle between strategics and sponsors.

“There were a variety of factors that drove continued strength in the Midwest market, but the most noticeable have been recent tax legislation, the amount of capital that both strategic and financial buyers have to deploy, strong capital markets and continued access to cheap financing,” said Andrew Dickow, managing director at Greenwich Capital Group.

Nick Jachim, group head at Stout Investment Banking, agrees. “The strength of the local economy and buyers’ ability to borrow funds are driving continued, robust M&A activity in the Midwest,” he said. Meanwhile, Muhammad Azfar, managing partner at Auctus Capital Partners, believes that “convergence is one common driver across the largest megadeals as well as lower middle-market transactions.”

The ongoing tussle between private equity and their corporate rivals is a major driving force behind the region’s strong showing in the M&A market in the first half of 2019. Of the top 15 deals, seven were by done by PE firms including BlackStone’s US$13.4bn purchase of warehouse assets from GLP.

“There is just so much cash available, around US$1trn for strategic acquirers, and, even more, around US$3trn for PE firms and they need to fuel inorganic growth,” said Rob Griggs, senior vice president at Corum Group.

Alongside the surfeit of cash, PE deal activity is being driven by a number of other factors, according to Dickow. “Financial buyers have the flexibility to do a majority deal that allows business owners to take some ‘chips off the table’ today, while still being able to share in the potential future growth,” he said. “Additionally, more PE firms are launching minority buyout funds to provide even more optionality to sellers, which is also driving more activity with financial buyers.”

Sector-wise, buyers have been transacting across a variety of different industries. As Jachim said: “There are several dynamic sectors right now that we anticipate will continue on their torrid pace including: diversified industrials, branded consumer products, food and beverage, technology, and healthcare including medical devices, healthcare services, and pharma.”

Of these, the traditionally strong industrial, manufacturing & engineering (IME) sector was once again out in front in H1, snatching 32% of all value and 27% of volume in H1 with the largest IME deal being PE firm Platinum Equity’s US$2.5bn buyout of packaging and labels provider Multi-Colour.

Greenwich’s Dickow feels that technology could be the one to watch in the future. “There has been and will continue to be a significant amount of activity in the technology sector, which is driving more cross-sector deal activity,” he said. “As many traditional industrial companies look to remain relevant in evolving industries, they are seeking advancements in their technology capabilities to remain relevant.

Azfar agrees that technology will drive deal activity. “What’s interesting, especially across the Midwest, is the opportunity we are seeing in tech’s intercept with other industries, mostly aimed at enhancing end-user experience.”

As for the remainder of the year, experts believe that there will be no let-up in the boom in Midwest dealmaking. “For the remainder of 2019, it is very busy,” said Griggs. “If or when the public markets correct, the valuations may come down, but the cash will go that much farther in the M&A process.”

While Azfar also feels that the M&A tide is unlikely to turn, he also sounds a note of caution. “Across the Midwest, we can expect positive regional growth for the year ahead,” he said. “In general, while the spate of M&A activity is expected to continue, navigating the economic realities will not be a simple endeavor. With the possibility of a downturn in the coming years, companies across all sectors should adjust their long-term risk appetite and focus on strengthening their balance sheets.”

Nick Cheek

MidwestOverview

mergermarket.com


mailto:nick.cheek%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

Top 16 Announced Deals for Half Year Ending 30 June 2019 — Midwest (Based On Target)

AnnouncedDate


18-Mar-19 P Fidelity National Information Services Inc Worldpay Inc Business Services 42,584

8-Mar-19 C DuPont de Nemours Inc (Shareholders) Dow Inc Industrials, Manufacturing & Engineering DuPont de Nemours Inc 41,272

2-Jun-19 P Blackstone Group GLP Pte Ltd (US logistics assets) Real Estate GLP Pte Ltd 13,400

8-May-19 P MPLX Andeavor Logistics (63.58% stake) Energy, Mining, Oil & Gas Marathon Petroleum Corporation 10,288

17-Jan-19 C ESL Investments Inc Sears Holdings Corporation Consumer 5,200

5-Jun-19 C KAR Auction Services Inc (Shareholders) IAA Inc Business Services KAR Auction Services Inc 5,137

11-Jun-19 P A consortium led by Ares Management and Leonard Green & Partners

Press Ganey Associates Inc Business Services HarbourVest Partners; and EQT Partners AB 4,000

28-Jan-19 P Chemical Financial Corporation TCF Financial Corporation Financial Services 3,536

8-May-19 C MPLX Andeavor Logistics (36.42% stake) Energy, Mining, Oil & Gas 3,268

31-Jan-19 C Blackstone Group; Enagas SA; and GIC Private Limited Tallgrass Equity; and Tallgrass Energy Holdings Energy, Mining, Oil & Gas Kelso & Company; and The Energy & Minerals Group 3,213

25-Feb-19 C Platinum Equity Multi-Color Corporation Industrials, Manufacturing & Engineering Diamond Castle Holdings 2,526

15-Mar-19 P BioScrip Inc Option Care Enterprises Inc Life Sciences & Healthcare Madison Dearborn Partners; Walgreens Boots Alliance Inc; and TRIAD Capital Management

2,406

19-Feb-19 C Blackstone Group Targa Badlands (45% stake) Energy, Mining, Oil & Gas Targa Resources Corp 1,600

23-Apr-19 P Hitachi Ltd JR Automation Technologies Industrials, Manufacturing & Engineering Crestview Partners 1,425

5-Jun-19 C Warburg Pincus Pregis Industrials, Manufacturing & Engineering Olympus Partners 1,300

1-Apr-19 C Ferrero SpA Kellogg Company (Selected cookies and fruit snacks business) Consumer Kellogg Company 1,300


Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin

mergermarket.com



0

100

200

300

400

500

600

700

800

900

1,000

1,100

H1 2019201820172016201520142013

Num

ber

of d

eals

12

13

57

47

12

1

8 13

7

137

15

7

49

31

40

3355

58

3725

49

3217

629609

309

398

610

6

24

96

318

655708

317

312298

517

293

367

0

50

100

150

200

250

300

350

400

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$19.5

US$16.6

US$41.4

US$50.2

US$18.5

US$18.4

US$19.7

US$23.4

US$20.3

US$32.8

US$16.8

US$11

US$11.8

US$12.3US$

8.6

US$6.5

US$253

US$86.9

US$37.6

US$53.1

US$35.6

US$61.3

US$21.6

US$21.9

US$3.6

US$6.2

US$117.9

US$234.5

US$94.9

US$161.9

US$18.9

US$36.4US$

44.5US$53.9

US$50.4

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m



Mergermarket 71

mergermarket.com

Deal Drivers Americas HY 2019Midwest


Num

ber

of d

eals

0

20

40

60

80

100

120

140

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

93 11

26

63

128

4348

66

23

35

14

Valu

e (U

S$

bn)

0

5

10

15

20

25

30

35

40

45

50

55

60

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$1.9 US$

N/DUS$N/D

US$0.9 US$

0.1US$4.6US$

2.5

US$22.2

US$54 US$

52.7

US$6.7

US$9.7

US$13.4


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Midwest. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Midwest. Industry sector is based on the dominant industry of the target.

Mergermarket 72

mergermarket.com



Valu

e (U

S$

m)

0

25,000

50,000

75,000

100,000

125,000

150,000


0

25

50

75

100

125

150

175

200

225

250

275

300


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019



Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Midwest.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Midwest.

Mergermarket 73

mergermarket.com



League tables




Number of Deals






6 149 Arthur Cox 93,970 2




10 121 McCann FitzGerald 86,270 1


Number of Deals


2 2 Jones Day 20,233 49


4 13 Ropes & Gray 2,595 22




8 14 Winston & Strawn 3,158 20




Number of Deals


2 17 JPMorgan 248,476 25



5 11 Evercore 134,045 21

6 6 Lincoln International - 21

7 5 Barclays 103,655 20

8 9 Stifel/KBW 5,120 20




Number of Deals

1 4 JPMorgan 248,476 25



4 6 Evercore 134,045 21


6 14 Barclays 103,655 20

7 9 PJT Partners 87,315 4

8 15 Citi 71,481 16



The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a Midwest bidder, target or vendor. States: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a Midwest bidder, target or vendor. States: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

mergermarket.com



S


South

mergermarket.com

Deal Drivers AmericasMergermarket 75HY 2019South



The consolidating aerospace and defense sector should continue to drive government services M&A in the South through 2019, particularly in Northern Virginia and Alabama, industry experts said. But geopolitical uncertainty could hinder that momentum in 2020.

In the first half of 2019, one US$18.4bn deal closed, forming L3 Harris Technologies [NYSE:LHX], now the nation’s sixth-largest defense contractor. United Technologies [NYSE: UTX] also announced its pending acquisition of Raytheon [NYSE: RTN], in a deal valued at just shy of US$88.9bn, which would create the country’s second-largest aerospace-defense company.

Consolidation among the largest players will push middle-market government services suppliers to build their technology via M&A, said Hogan Lovells partner Carine Stoick, who heads the firm’s aerospace, defense and government (ADG) M&A group from Northern Virginia.

With this tailwind, Stoick expects transaction activity to continue to be strong throughout the rest of 2019.

“There’s also the whole government IT solutions industry which I think is booming in the Northern Virginia area,” she said, noting heavy transaction volume involving companies involved with IT modernization.

Huntsville, Alabama, is also a key area with defense companies that are likely to consolidate, she said.

“This is as active as a market as we’ve seen,” said Mitchell Martin, a senior managing director of The McLean Group’s ADG practice. “If you look at things since 9/11, it peaked in about 2006/2007 both in terms of transaction volume and valuations, and that really directly tracks government spend and specifically deal spend at the time.”

Martin said a lot of that activity is tied together with an administration’s priorities, but that it also has to do with the entire market and where the public companies are trading.

Defense spending has increased under US President Donald Trump’s administration. But with rising macroeconomic tensions that include an ongoing US trade war with China and geopolitical instability in the Middle East, the resiliency of the hot M&A market is difficult to predict, said Elizabeth Donley, a partner at Hogan Lovells who works on cross-border M&A transactions.

However, uncertainty in the geopolitical environment creates an “interesting dynamic,” Donley said. It creates demand, which is good for the defense industry as a “boost,” she said, but the tensions and disruptions can also be a hindrance because it can make deals harder to get done.

Both Hogan Lovells attorneys agreed, 2019 should continue to see strong M&A activity, but come 2020, another US presidential election looms and that equals uncertainty.

“I don’t know if dealmakers are as optimistic that 2020 will look the same,” Stoick added. “But I do think for the rest of 2019 people feel very confident about M&A activity.”

Stoick said continued industry consolidation could pressure other large ADG companies to combine, and that could result in more small divestitures, something Martin also said could drive M&A in the middle market.

For the merger of L3 and Harris, the US Justice Department stipulated Harris divest its night vision business for the merger to proceed, and in April Harris announced it would sell its night vision business to the US division of Israel’s Elbit Systems [NASDAQ: ESLT] for US$350m.

James Ward

SouthOverview

mergermarket.com


mailto:james.ward%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


9-May-19 P Occidental Petroleum Corporation Anadarko Petroleum Corporation Energy, Mining, Oil & Gas 54,388

12-Apr-19 L Chevron Corporation Anadarko Petroleum Corporation Energy, Mining, Oil & Gas 47,747

16-Jan-19 C Fiserv Inc First Data Corporation Business Services Kohlberg Kravis Roberts & Co 38,448

7-Feb-19 P BB&T Corporation SunTrust Banks Inc Financial Services 28,085

28-May-19 P Global Payments Inc Total System Services Inc Technology, Media & Telecom 25,719

7-May-19 C DuPont de Nemours Inc (Shareholders) Corteva Inc Industrials, Manufacturing & Engineering DuPont de Nemours Inc 21,928

27-Mar-19 P Centene Corporation WellCare Health Plans Inc Financial Services 15,362

4-Feb-19 C Hellman & Friedman — Blackstone consortium Ultimate Software Group Inc Technology, Media & Telecom 11,790

10-May-19 P IFM Investors Buckeye Partners Energy, Mining, Oil & Gas 10,188

3-May-19 P Sinclair Broadcast Group Inc Fox Sports Net Technology, Media & Telecom The Walt Disney Company 9,600

30-Apr-19 P Gardner Denver Inc Ingersoll-Rand Plc (industrial segment) Industrials, Manufacturing & Engineering Ingersoll-Rand Plc 7,700

2-May-19 P 3M Company Acelity Life Sciences & Healthcare Apax Partners; Canada Pension Plan Investment Board; and Public Sector Pension Investment Board

6,725

21-Feb-19 C GTCR AssuredPartners Inc Financial Services Apax Partners 5,100

15-Apr-19 P Waste Management Inc Advanced Disposal Services Inc Business Services Canada Pension Plan Investment Board 4,840

14-Apr-19 C Publicis Groupe SA Epsilon Data Management Technology, Media & Telecom Alliance Data Systems Corporation 4,400


Top 15 Announced Deals for Half Year Ending 30 June 2019 — South (Based On Target)

Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia

mergermarket.com



Num

ber

of d

eals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

H1 2019201820172016201520142013

381036

12

87

7484

10185

109

73

71

321517 19

16

22

19

2931

93

114

32

22

82

114

7

502

652

941879

630690

589

543

580

1,1751,069

975

194

527

0

50

100

150

200

250

300

350

400

450

500

550

600

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$31.7

US$13.9

US$14.2

US$36.5

US$68.5

US$82.3

US$26.3

US$38.1

US$37.2

US$36.1

US$273.4

US$29.8

US$45.5

US$25.8US$36.4

US$33.9

US$65.1

US$63.2

US$81

US$26.1US$33

US$91.4

US$111.1

US$253.2

US$302.7

US$100.3

US$96

US$97.2

US$177.6

US$87

US$111.8

US$112.1

US$222

US$38.7

US$235

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m




mergermarket.com

HY 2019South


Num

ber

of d

eals

0

25

50

75

100

125

150

175

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

6 52

166

127

79

124

41

80

31 27

94

35

Valu

e (U

S$

bn)

0

10

20

30

40

50

60

70

80

90

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$0.1

US$3.6

US$1.2

US$1.1

US$0.6

US$2.7

US$13.5 US$

8.1

US$43.7

US$57.6

US$49.8

US$63.3

US$86.1


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the South. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the South. Industry sector is based on the dominant industry of the target.


mergermarket.com

HY 2019South


0

50

100

150

200

250

300

350

400

450

500

550


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

Valu

e (U

S$

m)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000




Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the South.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the South.


mergermarket.com

HY 2019South


League tables


Number of Deals


2 2 Jones Day 12,229 53

3 3 DLA Piper 2,515 52









Number of Deals







7 22 Alston & Bird 99,668 20





Number of Deals


2 2 JPMorgan 223,630 33

3 7 Evercore 155,933 36


5 8 Citi 145,385 27


7 4 Barclays 110,567 36


9 11 Jefferies 72,180 39



Number of Deals


2 4 Jefferies 72,180 39

3 8 Evercore 155,933 36

4 10 Barclays 110,567 36


6 2 JPMorgan 223,630 33




10 5 Citi 145,385 27

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a South bidder, target or vendor.States: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a South bidder, target or vendor.States: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia.

mergermarket.com




HY 2019South


NE


Northeast

mergermarket.com

Deal Drivers AmericasMergermarket 82HY 2019Northeast



M&A activity in the Northeast region saw a massive 123% jump in 1H19, compared to the corresponding period the year prior. In fact, the US$295.8bn in value recorded in the first six months of this year is already higher than the total M&A value in all of 2018.

The leap in deal value is attributable to a rise in megadeals, as over the same period deal volume fell from 647 deals in 1H18 to 554 deals this year.

The top end of the market indeed took a far larger slice of overall M&A: Deals with transaction values above US$5bn made up 77% of overall deal value in 1H19, compared to only 39% of deal value in 2018.

In contrast, deals in the US$5m-US$250m bracket only totaled US$11.8 billion — 4% of overall value, compared to 10% of the annual total in 2018.

“We are noticing more skittishness in the air. While every deal has unique challenges, when people become more risk-averse, every deal becomes less likely to get completed and negotiators find their red lines sooner,” said Richard Kestenbaum, partner and cofounder at New York-based investment bank Triangle Capital, which focuses on mid-market deals between US$10m and US$200m. “We are seeing that now in the deal environment, people are less forthcoming on deals and are more concerned about the downside. That makes the deal environment less robust.”

The life sciences & healthcare sector was one which benefited from the wave of megadeals. M&A totaled US$132.9bn in 1H19, taking up 49% of deal value, the largest share of any sector by value. This was buoyed by the year’s largest deal globally so far, the US$89.5bn acquisition of New Jersey-based Celgene by Bristol-Myers Squibb.

Further boosting the life sciences totals, GE sold its biopharma business, which sells medical instruments and equipment, to the Danaher Corporation for US$21.4bn and Eli Lilly acquired Loxo Oncology for US$7bn.

Defense was the second best-performing sector, by deal value, but this was almost entirely due to a single transaction. There were four deals in total over H1, including the second largest deal of the year globally, the US$88.9bn acquisition of Raytheon by United Technologies, which accounted for the vast majority of the total US$89.2bn in deal value in the sector.

Looking at volume, there was a more even distribution. TMT and industrials, manufacturing & engineering were the two best performing sectors — and ones less distorted by a few mega transactions. There were 143 deals in TMT and 97 deals in industrials in 1H19, making up 26% and 18% of overall volume, respectively.

With the IMF revising up its projections for GDP growth in the US, from 2.3% in its April forecast to 2.6% in its July forecast, the possibility is

there for a recovery in the middle market, though ongoing protectionist trade policies at the federal level could continue to dampen M&A appetite. Yining Su

NortheastOverview

mergermarket.com


mailto:yining.su%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


3-Jan-19 P Bristol-Myers Squibb Company Celgene Corporation Life Sciences & Healthcare 89,489

9-Jun-19 P United Technologies Corporation Raytheon Company Defense 88,905

25-Feb-19 P Danaher Corporation GE Healthcare Life Sciences (Biopharma business) Life Sciences & Healthcare GE Healthcare Life Sciences 21,400

12-Feb-19 C JAB Holdings BV Coty Inc (19.97% stake) Consumer: Other 9,119

7-Jan-19 C Eli Lilly and Company Loxo Oncology Inc Life Sciences & Healthcare 7,091

12-Jun-19 P Dassault Systemes SA Medidata Solutions Inc Technology, Media & Telecom 5,721

2-Apr-19 P UGI Corporation AmeriGas Partners (74.45% stake) Energy, Mining, Oil & Gas 5,375

25-Feb-19 P Roche Holding AG Spark Therapeutics Inc Life Sciences & Healthcare 4,250

14-Jan-19 C Churchill Capital Corp Clarivate Analytics (US) Business Services Onex Corporation; and Baring Private Equity Asia 4,229

17-Jun-19 P Patrick Drahi (Private investor) Sotheby's Holdings Inc Business Services 3,602

22-May-19 P Natura Cosmeticos SA Avon Products Inc Consumer Cerberus Capital Management 3,557

9-May-19 C Novartis AG Takeda Pharmaceutical Company Limited (Xiidra business) Life Sciences & Healthcare Takeda Pharmaceutical Company Limited 3,400

1-May-19 P McGraw-Hill Education Inc Cengage Learning Holdings II Inc Technology, Media & Telecom Apax Partners; KKR Asset Management; and Searchlight Capital Partners 2,578

6-May-19 P Park Hotels & Resorts Inc Chesapeake Lodging Trust Real Estate 2,575

8-Jan-19 C SoftBank Group Corp WeWork Companies Inc Business Services 2,000


Top 15 Announced Deals for Half Year Ending 30 June 2019 — Northeast (Based On Target)

New Jersey, New York, Pennsylvania, Connecticut, Maine, Massachusetts, New Hampshire, Vermont, Rhode Island

mergermarket.com



Valu

e (U

S$

bn)

0

100

200

300

400

500

600

2019201820172016201520142013

US$17.9

US$19.8

US$24

US$15.2

US$18

US$59.2

US$53

US$25.4

US$59

US$48

US$26.4

US$33.5

US$53

US$49.8

US$72.2

US$28.6

US$57.6

US$58.7

US$26.9

US$19.2

US$166.6

US$203.4

US$11.8

US$5.3

US$24.2

US$203.6

US$75.8

US$61.5

US$54.5

US$25

US$15.9

US$27.4

US$401.9

US$227.1

US$107.2

0

200

400

600

800

1,000

1,200

1,400

2019201820172016201520142013

Num

ber

of d

eals

51

22

53

48

55

46

398

53

41

304

54

68

7

8

7

8

11

19

18

10

21

63

7

17

15

435

542

63

633698 706 715

348

427

395422 404

150

27 715

48

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m




mergermarket.com

HY 2019Northeast


Num

ber

of d

eals

0

25

50

75

100

125

150

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

9 83 4 1

11

73

19

54

77

55

97

143

Valu

e (U

S$

bn)

0

20

40

60

80

100

120

140

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

lthca

re

Tran

spor

tatio

n

Leis

ure

Tech

nolo

gy, M

edia

& T

elec

om

Ener

gy, M

inin

g, O

il &

Gas

Con

sum

er

Bus

ines

s S

ervi

ces

Fina

ncia

l Ser

vice

s

Indu

stria

ls, M

anuf

actu

ring

& E

ngin

eerin

g

US$N/D

US$0.3

US$N/D

US$18.9 US$

8.3

US$2.1US$

7.7

US$14

US$2.8US$

0.1

US$19.4

US$89.2

US$132.9


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Northeast region. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Northeast region. Industry sector is based on the dominant industry of the target.


mergermarket.com

HY 2019Northeast


Valu

e (U

S$

m)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000


0

50

100

150

200

250

300

350


Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019



Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Northeast region.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Northeast region.


mergermarket.com

HY 2019Northeast


League tables


Number of Deals



3 15 Kirkland & Ellis 178,192 147




7 14 White & Case 106,171 23

8 18 Jones Day 99,722 56


10 65 Mayer Brown 93,532 13


Number of Deals



3 3 Jones Day 99,722 56




7 6 Ropes & Gray 14,210 48





Number of Deals


2 3 JPMorgan 203,772 42

3 5 Citi 287,006 41


5 10 Evercore 239,929 40

6 6 Barclays 65,077 38

7 9 Jefferies 13,810 34


9 8 Raymond James | Silver Lane 692 31



Number of Deals

1 7 Citi 287,006 41


3 9 Evercore 239,929 40

4 4 JPMorgan 203,772 42



7 29 Dyal Co 89,489 1


9 8 Barclays 65,077 38


The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a US (Northeast) bidder, target or vendor. States: New Jersey, New York, Pennsylvania, Connecticut, Maine, Massachusetts, New Hampshire, Vermont, Rhode Island.

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a US (Northeast) bidder, target or vendor. States: New Jersey, New York, Pennsylvania, Connecticut, Maine, Massachusetts, New Hampshire, Vermont, Rhode Island.

mergermarket.com




HY 2019Northeast


LA


Latin America

mergermarket.com

Deal Drivers AmericasMergermarket 89HY 2019Latin America



A law enacted in Mexico in March 2018 may spur M&A activity in the country’s booming fintech sector, according to sector advisors.

The law — Ley para Regular las Instituciones de Tecnologia Financiera — provides regulatory certainty to a sector that handles MXN68.4bn (US$3.6bn) worth of transactions annually and employs 3,600 people, according to a recent study published by Google, Santander’s Mexican unit, and the UK Embassy in Mexico, among others.

Such regulatory certainty will make it easier for local fintechs to continue raising money from external investors, allowing some companies to reach a meaningful size to consider an initial public offering (IPO), Jose de Aguinaga, head of Santander’s local brokerage, said last month in New York at an event organized by the Bolsa Institucional de Valores (BIVA), Mexico’s new stock exchange.

Mexico City-based PayClip, for example, has raised more than US$100m from global investment firms such as General Atlantic and Softbank [TYO:9984]. Last year, this news service reported that PayClip could become Mexico’s first fintech to launch an IPO.

The new fintech law, signed by former President Enrique Pena Nieto, could also lead to sector consolidation, said Arcelia Olea, a local partner at White & Case.

The law, for instance, demands online wallets, crowdfunding platforms, and cryptocurrency-based payment systems to obtain an operating license from Mexico’s banking and securities regulator (CNBV).

However, not all companies that require such license will obtain one, “as they must meet specific capital and liquidity levels,” said Olea, who previously worked at Comisión Nacional Bancaria y de Valores (CNBV) and helped draft the new law.

Smaller firms that may struggle to meet CNBV’s requirements could consider selling to larger players, she said. And license-holders, for their part, could become attractive targets, she added.

Indeed, Mexico’s fintech sector is poised for a consolidation wave, said a local banker who is closely monitoring the industry. The country’s fintech sector has a maturation index of only 48%, according to global entrepreneurial organization Endeavor.

Those with the deepest pockets are likely to become consolidators, noted this banker. Of the US$629m raised by Mexican fintech startups in the past five years, 80% of the money has gone to just eight companies, according to the study published by Google, Santander, and the UK Embassy in Mexico.

The CNBV estimates that about 200 of the more than 515 fintechs currently operating in Mexico require an operating license, as reported. Companies have until September to request a license, but only a handful have done so, said Olea.

Carlos Martinez

Latin AmericaOverview

mergermarket.com


mailto:carlos.martinez%40acuris.com?subject=Deal%20Drivers%20Americas%20HY%202019%20Inquiry


Top deals

AnnouncedDate


5-Apr-19 C ENGIE SA; Caisse de Depot et Placement du Quebec; and Engie Brasil Energia SA

Transportadora Associada de Gas (90% stake) Energy, Mining, Oil & Gas Petroleo Brasileiro SA 8,641

25-Jan-19 P The Boeing Company Embraer SA (Commercial aviation business) (80% stake) Industrials, Manufacturing & Engineering Embraer SA 4,200

6-Jun-19 P Sonae Sierra Brasil SA Aliansce Shopping Centers SA Real Estate Canada Pension Plan Investment Board 1,728

25-Apr-19 P Petronas Petroleo Brasil Ltda Petroleo Brasileiro SA (Tartaruga Verde oil field) (50% stake); and Petroleo Brasileiro SA (Modulo III of Espadarte oil field) (50% stake)

Energy, Mining, Oil & Gas Petroleo Brasileiro SA 1,294

7-May-19 P Hapvida Saúde Grupo Sao Francisco Life Sciences & Healthcare Gavea Investimentos Ltda 1,266

30-Apr-19 C SoftBank Group Corp Rappi SAS Technology, Media & Telecom 1,000

1-Mar-19 C Joyvio Agriculture Development Co Ltd Australis Seafoods SA Consumer Inversiones ASF Limitada; Asesorias e Inversiones Benjamin SA; Inversiones Ruisenor Dos Limitada; and Inversiones Arlequin Dos Limitada

986

18-Mar-19 P America Movil SAB de CV Nextel Telecomunicacoes Ltda Technology, Media & Telecom NII Holdings Inc; Access Industries Inc 905

15-Apr-19 C Lundin Mining Corporation Mineracao Maraca Industria e Comercio SA Energy, Mining, Oil & Gas Yamana Gold Inc 800

16-Jan-19 C CGN Energy International Holdings Co Limited Enel SpA (Nova Olinda (292 MW) solar plant); Enel SpA (Lapa (158 MW) solar plant); and Enel SpA (Cristalandia (90 MW) wind farm)

Energy, Mining, Oil & Gas Enel SpA 783

11-Mar-19 C PayPal Holdings Inc MercadoLibre Inc (3.8% stake) Technology, Media & Telecom 750

13-Jan-19 C Caisse de Depot et Placement du Quebec; and DP World Limited

DP World Chile Transportation Celulosa Arauco y Constitución SA; Empresas Copec SA; and Minera Valparaiso SA

746

6-Jan-19 P ContourGlobal Plc Cogeneracion de Energia Limpia de Cosoleacaque SA; and Cogeneracion de Altamira SA de CV

Energy, Mining, Oil & Gas Alpek SAB de CV 724

20-Feb-19 P Millicom International Cellular SA Telefonica Moviles Panama SA Technology, Media & Telecom Telefonica SA; and Corporacion Multi Inversiones 650

20-Feb-19 P Millicom International Cellular SA Telefonica de Costa Rica TC SA Technology, Media & Telecom Telefonica SA 571


Top 15 Announced Deals for Half Year Ending 30 June 2019 — Latin America (Based On Target)

Excludes: Bahamas, Belize, Dominica, French Guyana, Guyana, Haiti, Puerto Rico, Saint Kitts, Surinam, Turks & Caicos, US Virgin Islands

mergermarket.com



0

100

200

300

400

500

600

700

H1 2019201820172016201520142013

Num

ber

of d

eals

0

100

200

300

400

500

600

700

284

H1 2019201820172016201520142013

1

131

97

1215 1

5

53

23530

2724

28

37

38

46

37

253

246 243

9

290

334

62

32

1

284

175

39

300290

236

31

272

328

0

20

40

60

80

100

120

140

H1 2019201820172016201520142013

Valu

e (U

S$

bn)

US$17.1

US$14.1

US$7.1

US$27.2

US$8.9

US$14

US$10.5

US$28.2

US$29.2

US$13.3

US$13.2

US$41.4

US$13.6

US$22.4

US$19

US$16.8

US$40.8

US$8.6

US$13.3

US$5.2

US$4.5

US$4.2US$

10.9

US$20

US$14.5

US$15.8

US$15.3

US$14.8

US$13.5

US$30.8

US$20.1

US$14.4

US$16.1

US$16.7

$5m – $250m

$2,001m – $5,000m

Value not disclosed

$501m – $2,000m

$251m – $500m

> $5,001m

$5m – $250m

$2,001m – $5,000m

$501m – $2,000m $251m – $500m

> $5,001m




mergermarket.com

HY 2019Latin America


Num

ber

of d

eals

0

10

20

30

40

50

60

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

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Hea

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re

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n

Leis

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& T

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ls, M

anuf

actu

ring

& E

ngin

eerin

g

2 N/D

24

6

11118

23 2427

32

53

36

Valu

e (U

S$

bn)

0

2

4

6

8

10

12

14

16

Agr

icul

ture

Def

ense

Real

Est

ate

Con

stru

ctio

n

Life

Sci

ence

s &

Hea

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re

Tran

spor

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n

Leis

ure

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& T

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sum

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s

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anuf

actu

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& E

ngin

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g

US$0.5 US$

1.1

US$0.5

US$1.7 US$

0.7

US$0.2

US$1.7 US$

N/D

US$1.6

US$5.4US$

4.7

US$15.5

US$2.1


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Latin America. Industry sector is based on the dominant industry of the target.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Latin America. Industry sector is based on the dominant industry of the target.


mergermarket.com



Num

ber

of d

eals

0

20

40

60

80

100

120

140

160

180

200


Valu

e (U

S$

m)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000




Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Latin America.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Latin America.


mergermarket.com



League tables


Number of Deals

1 12 Pinheiro Neto Advogados 12,868 24

2 4 Machado Meyer Sendacz e Opice 11,761 13

3 1 Barbosa, Mussnich & Aragao 8,582 13

4 2 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 8,312 16


6 8 White & Case 6,138 11

7 10 Jones Day 5,717 4

8 24 Stocche Forbes Advogados 5,363 13




Number of Deals

1 1 Pinheiro Neto Advogados 12,868 24

2 2 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 8,312 16

3 9 Demarest Advogados 2,436 16

4 4 Machado Meyer Sendacz e Opice 11,761 13

5 3 Barbosa, Mussnich & Aragao 8,582 13

6 17 Stocche Forbes Advogados 5,363 13

7 19 White & Case 6,138 11

8 7 Philippi Prietocarrizosa, Ferrero DU & Uria 1,601 11

9 13 Veirano Advogados 904 11

10 12 Tozzini Freire Teixeira e Silva Advogados 298 9


Number of Deals

1 2 Banco BTG Pactual 4,169 14

2 8 Citi 10,669 12

3 1 Banco Itau BBA 3,691 11



6 12 Santander Global Corporate Banking 10,818 7

7 16 Rothschild & Co 2,518 7

8 17 Vinci Partners 592 7

9 14 Deloitte 644 6

10 10 Oaklins 30 6


Number of Deals



3 18 Santander Global Corporate Banking 10,818 7

4 7 Citi 10,669 12

5 26 BR Partners 10,348 4

6 5 Banco BTG Pactual 4,169 14

7 13 Lazard 3,778 3

8 2 Banco Itau BBA 3,691 11

9= - PJT Partners 3,557 1

9= 40 UBS Investment Bank 3,557 1

The financial advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and exclude lapsed and withdrawn deals. The tables are based on advice to a Central and South American bidder, target or vendor. Excludes: Bahamas, Belize, Dominica, French Guyana, Guyana, Haiti, Puerto Rico, Saint Kitts, Surinam, Turks & Caicos, US Virgin Islands.

The legal advisor league tables by value and volume have been run from 01/01/2019 to 06/30/2019 and include lapsed and withdrawn deals. The tables are based on advice to a Central and South American bidder, target or vendor. Excludes: Bahamas, Belize, Dominica, French Guyana, Guyana, Haiti, Puerto Rico, Saint Kitts, Surinam, Turks & Caicos, US Virgin Islands.

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ContactsCriteria

The following notes pertain to data contained in this publication:

Deals are included where the deal value is greater than or equal to US$5m.

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$10m.

North America = US & Canada.

Industry section charts, top deals, and graphs are based on the dominant geography being North America or Latin America.

Geographic section charts and graphs are based on the dominant target geography.

Transactions exclude property transactions and restructurings where the ultimate shareholders’ interests are not changed.

Mid-market is defined as US$5m - US$250m.

All data included is correct as of June 30, 2019.

League Tables correct as of June 30, 2019.

Top deals correct as of June 30, 2019.

For a full version of the Mergermarket M&A deal database inclusion and league table criteria, go to: www.mergermarket.com/pdf/deal_criteria.pdf

Advertising Opportunities Simon Elliott [email protected] +44 20 3741 1060

Life Sciences & HealthcareClaire Rychlewski

CanadaJeff Sheban

WestReyhaneh Fathieh

MidwestNick Cheek

SouthJames Ward

NortheastYining Su

Latin AmericaCarlos Martinez

Head of Research Giovanni Amodeo

AmericasLana Vilner

All SectorsTom Cane, Joshua Armstrong

Financial ServicesXinyi Jiang, Yizhu Wang

Industrials, Manufacturing & EngineeringKasia Patel

Energy, Mining, Oil & Gas Chad Watt

ConsumerEmily Fasold

Technology, Media & Telecom Thomas Zadvydas

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