Pertemps reunification tops table of West Midland MBOs
THE £112m deal which saw the reunification of the Pertemps recruitment empire has been named as the largest buyout deal in the West Midlands during 2012, a new study claims.
The MBO involving Pertemps and Network Group is included in new data published by the Centre for Management Buyout Research. The report at Imperial College is sponsored by Ernst & Young and Equistone Partners Europe.
The report shows there have been 10 buyouts in the West Midlands so far this year, compared to 20 in the 2011. The deal ranks the West Midlands fifth nationally out of 12 regions by number of buyouts. It trails London (51), the South East (29), North West (27), and is on par with Wales (10) and Eastern (10). By deal value, buyouts in the West Midlands amounted to £339m.
John Houlden, transaction partner, at Ernst & Young in Birmingham, said: “The buyout market in the Midlands remains slow. We’ve seen half the amount of buyouts this year than last.
“Some regions have begun to see a slight pick-up in activity in the last quarter of the year, but locally no deals have been completed yet in quarter four 2012.
“Anecdotal feedback on the market in 2013 is more positive. Chatter of an active pipeline is encouraging for a market that is expected to remain relatively subdued. We expect most activity in the mid market space.”
Phil Griesbach, director of Equistone Partners Europe, based in Birmingham, said: “Whilst the statistics demonstrate that the West Midlands regional market has been slow during 2012, the picture is far from gloomy with many professional advisers, banks and private equity houses in the region supporting a wider national effort, playing key roles on deals undertaken outside of the region.
“This is certainly true for Equistone, where the Birmingham office has played an important role in a successful year for the business – often bringing in local Midlands advisors to support transactions.
“Whilst the national picture will therefore continue to be important, the local deal pipeline continues to offer encouragement for 2013. We expect to be kept busy on a number of local transactions being brought to market during early 2013.”
The UK’s Private Equity buyout market proved to be the most bankable PE market in 2012, boosted by sterling’s attractiveness as a relative safe haven for investors who are keen to continue deal making in Europe without exposing themselves to Eurozone volatility.
The value of UK buyouts has risen 23% so far this year to £15.7bn from £12.7bn in 2011, and the number of deals recorded rose slightly to 189 compared to 187 over the same period. Average deal size in the UK has also increased to £84m, up from £68m, according to the latest data published by CMBOR.
The number and value of foreign divestments saw a marked increase this year, rising to 19 deals and £1.9bn compared to 15 and £1bn in 2011. Of the overseas acquirers, 13 of the businesses originated from the US, and these deals alone equated to £1.7bn.
