Half-year deal values drop £7.3bn across Yorkshire and Humber
There has been a sharp 75% decline in the total deal value from mergers and acquisitions across Yorkshire and Humber for the H1 period.
According to Experian data released, the 291 deals announced during H1 had an aggregate consideration of just over £2.4bn, down from the same period in 2018 where 319 deals were recorded for an overall consideration of almost £9.7bn. This represents a decline of 9% and 75%, respectively.
Yorkshire and Humber-based companies were involved in 8.3% of all UK deals in H1 2019 and contributed 2.9% to their total value.
The late cancellation of the all Yorkshire (non) transaction, which saw Non-Standard Finance withdraw its hostile offer to acquire Bradford-headquartered Provident Financial, for £1.3bn (offer cancelled in June), meant that the region failed to record a single deal of £1bn plus.
The next largest deals within the region saw rival offers submitted for Hull-based KCOM Group, which The Macquarie Group won a fierce auction process with a £627m offer.
Manufacturing (91), wholesale and retail (68) and professional services (65) occupied the podium positions for industry sectors by volume in the first six months of 2019. There was also a large spike in infocomms deals which rose from 38 in 2018, compared to 63 announced to this point in 2019, a healthy 66% increase.
Professional services, health and education were the only industries to record a rise in deals by value, reporting increases of 55%, 35% and a more modest 2%, respectively.
Experian recorded 55 deals – approximately 19% of all acquisitive transactions in H1 – that were funded by new bank debt. This compares with 57 transactions in H1 2018.
HSBC was again the leading debt provider funding 17 deals, ahead of the next best, Barclays, providers of debt in seven transactions. Private equity remained active, funding 15% of all the region’s deals in the first half; this was a slight drop in percentage terms on last year’s figures, when 16% of deals had a private equity element.
Grant Thornton was the most active financial adviser during H1 2019, having advised on ten transactions; just ahead of KBS Corporate, cited in nine deals.
Rothschild & Co was the lead financial adviser by value advising on three transactions totaling just under £1.5bn. These include representing KCOM (deals mentioned above) in its on-going auction process.
Addleshaw Goddard edged out Ashurst at the top of the legal value standings having provided legal advice on nine deals for an aggregate consideration of £779m. The highest legal adviser by volume was Clarion Solicitors, having advised on 20 transactions with a recorded value of approximately £23m – Gateley was in in second place after being cited in 15 deals.
