mergers at a glance spring
TRANSCRIPT
Latest Report Out NOW
News and views from the Mergers Alliance international partnership
M&A at a glance
New research from Mergers Alliance reveals a significantrise in M&A in the Industrials market in recent months,led principally by Japan.
News and views from the Mergers Alliance international partnership
In total, Asia Pacific experienceda record year in industrial M&A in2011 (industrial in this contextincludes capital goods,transportation and industrialservices). Deal volumes saw a jumpof 16% year on year, rising 6.5%compared to the previous recordyear of 2007.
Of the approximately 1,500 dealsacross Asia, China was the mostactive country with 360, a rise of17% on last year. In terms ofvolume growth though, Japannearly doubled its number ofdeals, in spite of the impactof the Fukushima earthquake.
“Industrial M&A in high growthcountries such as China has beenrising for years. However, we arenow seeing that even in more
mature markets like Japan, foreignfirms are increasingly acquiring mid-market companies with establishedrelationships with major domesticcorporates” said Owen Hultman,Executive Vice President of MergersAlliance’s Japanese partner IBS.
Outbound M&A in the industrialsmarket also rose considerablyin Japan in 2011, transactionnumbers nearly doubling year onyear. “We see this trend continuingas Japanese industrials takeadvantage of the strong yen andseek outbound acquisitions to enteroverseas markets. One of my mostrecent deals, Taikisha’s acquisitionof Italian corporate Geico Spa,is a good example of this trend”Owen concluded.
Japan booms in record yearfor Asian industrial M&A
“The strong yen hasbenefited many Japanesecorporates this year andled to a significant rise inoutbound M&A.”
Our latest Global sector reportfocuses on consumer goods witha particular emphasis on brands.
Our analysis shows that transactionlevels in consumer M&A have(perhaps surprisingly) been onan upward trend since the globaldownturn in 2009.
It also examines the impact thatmulti-channel sales strategies arehaving on investment activity.
Contact Andre Johnston at:[email protected] more information or go to:www.mergers-alliance.comto download the report.
Owen HultmanExecutive Vice President, IBS
Spring 2012
In the last quarter, the Mergers Alliance partners have been active across a number of sectors.Headline deals already this year include:
News and Events
Paris Mergers Alliance Conference
Latest Deals within the partnership
Between the 13th and 15th ofApril, Mergers Alliance will beholding its Spring conferencein Paris. The event will behosted by our Frenchcolleagues Capital Partner.
Mergers Alliance has invited anumber of speakers from its
international client base todiscuss acquisition opportunities.Confirmed speakers include seniorexecutives from industrial gasgiant Air Liquide.
For more information contactStas Michael, Mergers AllianceBusiness Manager [email protected]
Capital Partner advised GroupeGorgé on development capital
funding of €115m
Singhi Advisors advised MaharajaWhiteline Industries on the sale to
France-based Groupe SEB
Headwaters advised Newporton its acquisition ofIsrael-based leading
infra-red optics group Ophir
Catalyst advised ScottishFriendly Insurance Serviceson its sale to Citibank Global
Transaction Services
Norgestion advised Seguriberon its acquisition ofUmano Group
IBS Yamaichi Securities advisedTaikisha Ltd on its acquisitionof a majority stake in Italy
based Geico Spa
France India USA
United Kingdom Spain Japan
Our new research report focuses on the European plasticpackaging industry, drawing on the knowledge and expertiseof the Mergers Alliance Global Industrial Team. The report isavailable to download at www.mergers-alliance.com
Download our latestIndustry Insight
Surge in Spanishcross-border M&A
Country Focus
“We are seeing increasedinterest in Spanish assetsas managements teams cutunrealistic price valuations.”
Alvaro QuintanillaNorgestion
Alvaro QuintanillaNorgestion
2011 has been the most activeyear for Spanish M&A since theoutbreak of the financial crisisin late 2008, driven largely by anincrease in cross-border deals.
The number of Spanish corporatesbought by foreign companies in2011 accounted for 108 deals(nearly a quarter of all dealscompleted in Spain), an increaseof 24% compared to 2010.
German, French and Americancompanies in particular have takenadvantage of the troubled macroeconomic conditions in Spain,acquiring new technologies andmarket share at attractivevaluations.
One example of this was thetakeover of Telvent, a Spanish ITsolutions and business informationprovider, which the French blue chipSchneider Electric bought in a dealworth €1.4 billion.
In the mid-market, deals includeGerman Wincor Nixdorf AG’sacquisition of financial softwarecompany Dynasty TechnologyGroup for €50 million and UK basedLogica’s acquisition of software andconsultancy firm Grupo Gesfor for€32 million.
The number of Spanish companiesinvesting overseas meanwhile alsogrew over the past year. In 2011,70 deals were completed, a 23%rise on the 57 in 2010.
Companies like CIE Automotive(auto parts manufacturer), EbroFoods (a world leader in the ricesector) and Orona (elevatormaintenance and installation) haveall been highly acquisitive as theyattempt to expand their overseasoperations to mitigate the effectsof challenging domestic conditions.
Domestic deals though haveremained relatively flat, due partlyto the difficulty in obtaining bankfinance and also due to manycorporates preoccupation withsimply survival rather than growth.
Looking ahead, Spain’s budgetreduction policies should help torestore confidence in the economyin the short to medium term. Thisshould boost local M&A activitygoing forward.
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Stas MichaelBusiness Manager
Direct Line: +44 (0) 20 7881 2990E: [email protected]
www.mergers-alliance.com
Andre JohnstonResearch Manager
Direct Line: +44 (0) 20 7881 2967E: [email protected]