The overall value of European buyouts* has reached 41.5bn in the first three quarters of 2011, remaining consistent with 2010 which recorded a full year value of 56.5bn and more than double the total value of just 20.6bn in 2009, according to the latest data published by the Centre for Management Buyout Research (CMBOR), now based at Imperial College London, sponsored by Barclays Private Equity and Ernst & Young.
Highlights
• France has become the dominant force in the European private equity buyout market in 2011 recording a total value of 9.3bn in private equity-backed buyouts so far this year, accounting for a quarter (23%) of the total and outstripping the UK value of 8.9bn and 5.8bn in Germany. The UK accounted for just 22% of the total deal value in Europe compared to 40% in 2010. France accounted for 14% last year.
• The total value of European private equity-backed buyouts in the first three quarters of 2011 is 40.8bn – on track to record a similar full year value as last year (2010: 55.1bn). Deal activity has slowed during the year so far with a total value of 12bn in Q3 compared to 15.3bn in Q2 and 13.6bn in Q1.
• For buyouts over 100m, the average proportion of equity in the capital structure fell from 60% in 2010 and 2009 to 47% in the first three quarters of 2011.
• The overall value of private equity realisations to trade buyers in the first three quarters of 2011 (20.6bn) is already 23% higher than the value recorded for the whole of 2010 (16.8bn). Trade exits were particularly dominant in the last few months recording a total value of 10.6bn in Q3 2011.
* The first figures provided of 41.5bn, 56.5bn and 20.6bn refer to all European buyouts (including those without private equity sponsor). All remaining figures in the release relate only to private equity-backed buyouts.
Peter Hammermann, Co-Head of Barclays Private Equity Europe, commented:
“This year, the German buyout market has experienced a significant recovery of activity. The deal flow has improved and especially the mid-cap-market has seen a number of very successful exits so far. By September 2011 the German buyout market has already turned over the full year value for 2010. However, the difficult macroeconomic environment could become a limiting factor in terms of financing once again.”
Sachin Date, Private Equity leader for Europe, Middle East, India and Africa (EMEIA) at Ernst & Young said:
“Even though European buyouts have improved, the uncertainty in the economy — with threats of a double-dip recession and volatility in the public markets — challenges whether this increase in activity can continue. Though, over the long term, private equity is proving that its active ownership enables it to create stronger and more profitable businesses and that its industry remains robust.”
France leads the European buyout market; Germany recovers; average deal sizes increase
• Total deal value in France quadrupled between 2009 and 2010 recording 1.9bn and 7.9bn respectively. So far this year (2011), France has already recorded 9.3bn in value which includes the 2.1bn buyout of Spie in August and the 1bn buyout of Foncia in July.
• Germany has made a significant recovery with buyouts totalling 5.8bn so far in 2011 representing 14% of the total European buyout market. Germany had fallen below a tenth of its 2007 record value (26.9bn) with just 1.9bn recorded in 2009.
• Despite Spain’s challenging economic environment, private equity deal activity there has been relatively strong, accounting for 9% of overall deal flow in Europe by value (3.7bn) compared to 4%in 2010 and 5% in 2009.
• Sweden recorded a total value of 4.9bn, including the largest buyout in Europe so far in 2011 – the 2.3bn acquisition of Securitas Direct by Bain and Hellman & Friedman from EQT. This deal, along with the 1.4bn buyout of Dometic, accounted for 75% of the country’s overall deal value.
• The total value of deal flow in Finland so far in 2011 (797m) has already more than tripled that of the whole of 2010 (257m), predominantly due to the 300m buyout of medical supplies distributor OneMed Group by 3i from CapMan in March.
• The average buyout size in France is 107m this year, similar to 2007 levels and compared to just 24m in 2009, to 67m in 2010. Average deal sizes in Germany and Spain have also significantly increased, with Germany recording 36m in 2009, 92m in 2010 and 102m in 2011, and Spain recording 33m in 2009, 75m in 2010 and 146m in 2011. Less equity in larger buyouts; 1bn+ deals in decline
• Lending from European banks has increased in 2011, with the average proportion of
equity in European deals valued above 100m falling from 60% in 2010 to 47% and debt
rising to 47% from 38% in 2010.
• Large buyouts valued at over 1bn have slowed so far in 2011, with only seven deals completed at a total value of 10.2bn. This compares to 11 deals at a total value of 19.3bn in 2010 and only two deals with a combined value of 2.8bn in 2009.
• Mid-market buyout activity (deals between 100m- 500m in value) has stabilised and is on track to reach a similar full year value last year (16.5bn: 2010) with 56 deals completed at a total value of 12.3bn so far this year. Manufacturing sector dominant; Property and Construction activity increased; Fewer Public to Private deals
• Manufacturing remains the dominant sector for private equity buyouts with 117 deals totalling 8.9bn. This sector accounted for over a quarter of the total number of deals completed in the first three quarters of 2011 and over one fifth of the total value.
• There has been a large increase in private equity activity in the property and construction market in Europe in 2011 so far with the overall value of deals reaching 3.5bn compared to just 455m in the whole of 2010. Five deals in France accounted for most of this total including Bridgepoint’s acquisition of residential property group Foncia from BCPE for 1bn in July.
• The number of public to private buyouts has decreased considerably in the first three quarters of 2011 to eight deals compared to 16 in the same period last year (first three quarters of 2010). Exit market remains strong; secondaries and trade exits dominate
• After a very strong 2010, the European exit market remains robust with the total value of private equity realisations in the first three quarters of 2011 reaching 70% (42.7bn) of the overall value of private equity realisations in the whole of 2010 (61bn).
• Secondary realisations are at a similar level to trade exits in Europe in 2011 so far. A total volume of 125 secondary exits valued at 21.1bn is just higher than total volume of 113 trade realisations valued at 20.6bn.
• The exit market in Continental Europe looks strong for the last three months of 2011 with several exits in the pipeline including the 4.6bn sale Skype. In the UK however the exit market has halted, with very few realisations in the pipeline for Q4 2011.
• The IPO market in Europe remains slow in 2011 with just five flotations completed in Q2 and few possible flotations in the pipeline for the remainder of the year.
Weitere Informationen unter:
http://www.nottingham.ac.uk/business/cmbor/
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