Northern PE deals pass £10bn in first half of 2021
Dealmakers in the North of England have remained active during the first half of 2021, with private equity houses completing a total of 30 deals worth £10.4bn.
This is according to data from CMBOR, the Centre for Private Equity and MBO Research, which was re-established within Nottingham University Business School last month.
Funded by Equistone Partners Europe as exclusive sponsor, the research reveals the highest private equity deal volume seen from the regions for more than five years, with the value almost 10 times the £1.9bn completed during the same period last year.
The North also saw the completion of the largest transaction in the UK this year to date – the £6.8bn sale of Leeds-based supermarket chain ASDA by Walmart to a consortium led by TDR Capital and the Blackburn-based Issa Brothers, owners of the EG Group.
The North West was the most active market for deals in the North, with 15 completed in the first six months of the year.
Behind this, Yorkshire saw 11 transactions, followed by four in the North East. On a national scale, London remained the most active deals market with 32, followed by the South East (17), North West, East of England (14) and Yorkshire.
The first half of 2021 was the most active start to a year for North West private equity for five years, with the 15 deals completed matching 2017 levels.
This surge in dealmaking followed a slowdown in activity in the second quarter of 2020, with the industry’s initial focus on portfolio support, reflected by subsequent historic lows in deal numbers.
Just seven deals were completed during the height of the COVID-19 pandemic in the North West. In comparison, deal values have quadrupled from £507m in the first half of 2020 to £2.2bn this year to date.
Key transactions completed in the region included the £1.1bn public to private deal completed by Salford-based telecommunications provider TalkTalk Group in March, as well as the £700m buyout of Integrated Dental Holdings, based in Kearsley, near Bolton, by the Carlyle Group in June.
Andi Tomkinson, partner at Equistone Partners Europe, said: “The light at the end of the tunnel of the pandemic has driven a huge amount of private equity interest across the North of England, which is highlighted by the record start to 2021.
“We are now seeing transactions with even stronger valuations and a real focus on growth once again.
“With the region’s strongholds in growth sectors that are likely to be in huge demand over the coming months, we expect to see transaction volumes and values continue to climb as private equity looks to invest the record levels of capital that are available.”
