It’s been raining deals – billions of pounds worth

DEALMAKERS in the North West cashed in on a bumper year in 2016 and bosses of the region’s most significant advisory firms say 2017 has got off to an equally strong start.

Addleshaw Goddard’s Manchester corporate team has advised on more than £12.5bn of M&A, private equity and IPO deals in the last two years, and says is starting 2017 with a positive outlook.
 
The team had an outstanding 2016, highlighted by advising on more than 40 deals totalling upwards of £6.8bn.

AG advised many of the region’s highest profile companies, such as Co-operative Group on its sale of 298 stores to McColls, Accrol on its £93m AIM IPO, CCL Industries on its $1.13bn acquisition of Innovia, Fircroft on its acquisition of One Key Resources, Norcos on its acquisition of Adobe Home Products, The Hut on its acquisition of Hale Country Club, Premaitha Health on its acquisition of Yourgene Bioscience, the sale of Bulldog Skincare, the sale by SSE plc of 16.7% of its stake in Scotia Gas Networks Limited for £620m and Dock 10 on its acquisition of post-production company 422.

AG dominating the local private equity market, advising the majority of the region’s private equity houses on deals such as the sale of Enterprise Ventures to Mercia Technologies, MPM Products’ sale to ECI, Foresight PE’s investment into Utilities Design & Plannin, Inflexion’s investments in Outdoor Plus and Medivet, LDC’s investment in Ellis Whittam, NorthEdge’s investment in Direct Healthcare, ECI’s investment in ImageSound and Livingbridge’s investment in Exclaimer.

The company won major new clients Siemens, Dixons Carphone, BASF, Radius Payment Solutions and Premaitha Health – adding to AG’s already client roster which includes the likes of Rolls-Royce, Peel Holdings, Capita, Wolseley, Bruntwood, JD Sports Fashion, The Hut, PZ Cussons, Norcros, Moneysupermarket, Speedy Hire, Clinigen, mydentist, Victrex and the majority of local private equity houses.

AG cementing its position as by far the largest legal team in the region by the appointment of Shelley McGivern and Duncan Wilson as partners and Jemma Clarke and George Danczak as managing associates.

In the last month alone, the team advised on CCL Industries’ $1.13bn acquisition of Innovia, Premaitha Health’s acquisition of Yourgene Bioscience and LDC’s investment in Chargepoint Technology, annouced today.

Private equity partner Andy Green said: “We had a sustained pipeline of activity in 2016, advising not just on major deals, but also on a high volume of medium and smaller deals and across many sectors. Although the Brexit vote slowed the IPO market, we saw little effect on M&A or private equity activity and we expect 2017 to be a strong year for M&A, private equity and IPOs.”

Meanwhile, advisory firm Dow Schofield Watts advised on 42 deals worth more than £770m during 2016 – an increase in value of almost half a billion pounds on the previous year.

The Warrington firm said that 2016 had been a landmark year for its own business as well as the wider northern dealmaking community.

There was strong deal activity driven both by strategic trade buyers and private equity investors and, while the Brexit vote introduced an element of uncertainty, companies had taken the attitude that it was business as usual while they awaited further tangible news.

During the year Dow Schofield Watts continued to strengthen its capabilities with the arrival of experienced investor David Smith to head the technology advisory team, which has contributed to a threefold increase in technology driven transactions in the year, and international M&A tax expert Nick Woodward to lead its tax advisory arm.

It also expanded its forensic arm as a result of the merger with forensic accountancy firm Bridge Houghton.

Key deals it advised on included the acquisition of ADAS by Cheshire-based environmental consultancy RSK Group; LDC’s sale of the Waterfall Catering Group to Paris-based multinational Elior Group SA; the acquisition of Darwen-based collections firm Engage Services to Marston Holdings; the £50m buy-out of the New World Trading Company, the pub and restaurant business behind The Botanist and Oast House brands; and the sale of Manchester-based rubber compounder Berwin Group to the listed Swedish company HEXPOL AB.

During the year the firm’s private equity arm PHD Equity Partners also sold its stake in tattoo supplies business Barber of Sheffield to RJD Partners in a deal which represented an internal rate of return (IRR) of 44.5%.

James Dow, founder of Dow Schofield Watts, said: “During 2016 we have continued to build our capabilities and expand our offering in line with our goal to become the independent advisor of choice for commercial and private equity clients. It has been a landmark year for us and for the wider northern dealmaking community.
 
“With a plethora of new private equity and debt funds and some significant developments in advisory firms, the North West now has the capacity to handle even larger international deals capably and confidently. Manchester has firmly established its position as a leading centre for financial and professional services.”

Ed Brentnall, partner with Dow Schofield Watts transaction services, said: “While business was sluggish in the immediate aftermath of the Brexit vote, in the final quarter we’ve experienced the highest level of enquiries and live jobs since we started the Transaction Services practice eight years ago.

“With demand coming from private equity firms, venture capital trusts, large corporates and banks, it’s a very positive start to 2017.”