NW ‘most active buyout market’ thanks to B&M
THE North West’s private equity buyout market was the most active region by deal volume in the UK in the first half of 2013, although the picture was skewed by the £964m sale of B&M Retail.
That’s according to the latest data published by the Centre for Management Buyout Research (CMBOR) at Imperial College, sponsored by Ernst & Young and Equistone Partners Europe.
There were sixteen North West deals in the first half with a total value of £1.3bn, compared to London which saw eleven deals amounting to £1.4bn, and the South East completing fourteen deals worth £1.1bn.
Researchers included the £964m sale of Liverpool-based B&M Retail to US private equity firm Clayton, Dubilier & Rice, which was announced in December. The other big deal was the acquisition of Chester-based pub group Admiral Taverns by US investment firm Cerberus Capital Management for £200m.
In 2012 twelve deals worth £1.8bn were completed in the first half, boosted by the £1.45bn buyout of Flintshire-based Iceland Foods. The B&M deal was ranked the largest buyout of 2013 in the UK. The Admiral Taverns acquisition also featured in the UK’s top 10 largest deals league.
M&A partner, Tim Morris at Ernst & Young said: “It is pleasing to see the North West deliver the largest buy-out in the UK – the B&M transaction – for the second comparable period in a row. The fact it’s a primary buy-out, creating significant value for the local economy, demonstrates the strength of the entrepreneurial base in the region.
“The North West also delivered the highest volume of buy-outs in the UK, which reflects the broad base of activity, which we expect to see this continue in the second half of 2014.”
Steve O’Hare, head of Equistone Partners Europe in the North, said: “The North West, once again, proves to be one of the strongest performing regions in the UK when it comes to dealmaking. The value was boosted heavily by the sale of B&M Retail to a US private equity firm, which shows how UK assets are becoming more and more attractive to overseas investors.
There were 81 UK buyouts over the first six months of this year with a total value of £6bn, compared to 117 and £8.6bn over the same period in 2012.
