Deal Capsule August 2014 - KPMG · PDF fileAt the same time, Net Debt/EBITDA ... DEAL...
Transcript of Deal Capsule August 2014 - KPMG · PDF fileAt the same time, Net Debt/EBITDA ... DEAL...
1.4x
1.2x
Q2 2014 Q2 2015
∆14%0.3x
Q2 2014 Q2 2015
Debt-free
HIGHLIGHTS
M&A in the pharmaceutical sector continued to be brisk in Q2 2014. The top 10 announced deals, yet to close, for HY 2014, totaled $310 billion.
Creative structuring and asset swaps are being de-ployed to help pharmaceutical players secure deals to grow their core businesses, while exiting non-core activities at the same time.
Investor groups are increasingly active in pharmaceuti-cals, representing 23% of the number of deals com-pleted in Q2 2014. These range from smaller biotech investments to large LBOs such as Carlyle’s investment in Johnson&Johnson’s Ortho Clinical Diagnostics unit for $4.2 billion.
KPMG’s Deal Thermometer indicates that the environ-ment for M&A activity will remain ‘Hot’ in pharmaceuti-cals and ‘Moderate to Hot’ in chemicals. Pharmaceuti-cal and chemical companies have increased their appetite for deals in the last twelve months, reflected by increasing forward P/E Ratios. At the same time, Net Debt/EBITDA multiples are projected to decrease in the year to 30 June 2015, giving them more deal capacity.
DEAL THERMOMETER – Q2 2014
Deal CapsuleTransactions in Chemicals & Pharmaceuticals
August 2014
FIGURE 01 Number of deals by sector 2011 – Q2 2014
FIGURE 02 Deal value by sector 2011 – Q2 2014 – $ billion
“ We are seeing unprecedented levels of M&A deals being announced, with financial sponsors increasingly contributing to the deal frenzy.”Vir Lakshman Head of Chemicals & Pharmaceuticals, KPMG in Germany
Deal Appetite – Pharmaceuticals (Forward P/E Ratio)
Deal Capacity – Pharmaceuticals (Net Debt/EBITDA)
Deal Appetite – Chemicals (Forward P/E Ratio)
Deal Capacity – Chemicals (Net Debt/EBITDA)
KPMG’s Deal Thermometer signals the environment for M&A deals in chemicals & pharmaceuticals.
It combines the appetite for deals (changes in forward P/E ratios) with the capacity to fund deals (changes in Net Debt/ EBITDA multiples).
‘Hot’ signifies an environment conducive to deal-making.
Hot
Moderate
Cool
Hot
Moderate
Cool
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
Sources: Thomson One, KPMG
Sources: Thomson One, KPMG
Sources: Capital IQ, KPMG
Sources: Capital IQ, KPMG
Sources: Capital IQ, KPMG
Sources: Capital IQ, KPMG
680 643 602
146 162
814 796703
134 136
1,494 1,439 1,305
280 298
2011 2012 2013 Q1 2014 Q2 2014
Pharmaceuticals Chemicals
14.8
16.9
Q2 2013 Q2 2014
∆14%
12.4
14.7
Q2 2013 Q2 2014
∆19%
98 79 7250
19
81
32 51
8
9
179
111 123
58
28
2011 2012 2013 Q1 2014 Q2 2014
Pharmaceuticals Chemicals
2 | Deal Capsule | Pharmaceuticals | August 2014
Novartis in $28.5 billion portfolio shift
In April 2014, Novartis AG, as part of its strategic portfolio review, announced an innovative deal to trade assets. As part of the complex three-way deal, Novartis will swap its vaccine business for Glaxo- SmithKline PLC’s (GSK) cancer assets positioning it as a leader in treating melanoma cancer. The deal also includes entering into a joint venture with GSK to create one of the largest consumer healthcare businesses. In parallel, Novartis struck a deal to exit the animal health business by selling it to Eli Lilly & Co..
PharmaceuticalsIn Q2 2014, although the number of deals is slightly higher than in Q1 2014, deal values have declined. For the first half year (HY1 2014), there are over $310 billion in announced deals yet to close.
Some firms are actively seeking targets to offset de- clining R&D productivity and patent expirations of key drugs. For example, Humira’s impending patent expiry is one of the key reasons for AbbVie Inc.’s pursuit of Shire PLC. Along with the potential tax advantage that AbbVie will gain through this deal, Shire has an array of rare disease treatments that will help reduce AbbVie’s reliance on Hu-mira, which accounts for over 50% of AbbVie’s sales.
Unlike the 2009 M&A wave which led to pharmaceutical companies merging with rivals to create scale to compete in all areas, completed deals in Q2 are smaller and more tar-geted. Companies are acquiring products that fit well within their chosen therapeutic areas.
DEAL FOCUS AREAS
US continues to dominate the market with eight of the global top 10 completed deals involving US pharmaceutical companies. With approximately $310 billion in announced deals, M&A activity in the pharmaceuticals industry has significantly increased in the first half of 2014. The key deal drivers are pipeline replenishments, specialization, finan-cial optimization and portfolio consolidation.
FIGURE 03 Top countries in pharmaceutical M&A in Q2 2014 FIGURE 04 Number of pharmaceutical deals by investor in Q2 2014
Sources: Thomson One, KPMG Sources: Thomson One, KPMG
Sources: Company press releases, KPMG
77%
23%
Strategic Investors Financial Investors
3
2
4
9
8
9
9
9
19
29
0
2
1
0
1
2
1
6
0
15
United Kingdom
Germany
India
Japan
Spain
Canada
South Korea
France
China
USA
Domestic Acquirer Foreign Acquirer
For instance, Bristol-Myers Squibb Co. (BMS) acquired iPierian Inc. to bolster its neuro-degenerative drug pipeline with treatments designed to fight tau proteins linked to Alz- heimer’s disease and several disorders in the human brain. Neuroscience is one of the six therapy focus areas for BMS.
US-based companies continue to pursue financial optimiza-tion by seeking targets in lower tax jurisdictions, funded by their cash piles outside the US.
FIGURE 05 Asset swaps Novartis, GSK and Eli Lilly
GSK Contribution Novartis Contribution
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
OTC Joint
Venture
Eli LillyGlaxoSmithKline Novartis
New Consumer Healthcare business
36.5%
63.5%
August 2014 | Pharmaceuticals | Deal Capsule | 3
The deal value of the global top 10 announced deals in HY1 2014 was $ 310.2 billion
TABLE 02 GLOBAL TOP DEALS ANNOUNCED, YET TO CLOSE – HY1 2014
The deal value of the global top 10 completed deals in Q2 2014 was $ 16.8 billion
Bidder Target Therapy area Deal Status Total
value*
Pfizer Inc. AstraZeneca PLC Biopharmaceuticals Withdrawn 117.1
AbbVie Inc. Shire PLC Neuroscience, gastrointestinal, internal medicine
Pending shareholder and antitrust approval
54.8
Valeant Pharmaceuticals Intl.
Allergan Inc. Eye care, neurosciences, dermatology, urologies
Pending 53.0
Actavis PLC Forest Laboratories Inc. CNS, cardiovascular diseases, anti-infective
Completed on 1 July 2014
28.0
Novartis AG GlaxoSmithKline PLC -Oncology Business
Oncology Pending shareholder and antitrust approval
16.0
Bayer AG Merck & Co. - Consumer Care Business
Consumer Care Pending antitrust approval
14.2
Mylan Inc. Meda AB Respiratory, dermatology, OTC Withdrawn 9.0
GlaxoSmithKline PLC Novartis AG - Vaccine Business Vaccines Pending shareholder and antitrust approval
7.1
Mallinckrodt PLC Questcor Pharmaceuticals Inc. Autoimmune, inflammatory disorders
Pending shareholder and antitrust approval
5.6
Eli Lilly & Co. Novartis AG - Animal Health Division
Animal health Pending shareholder and antitrust approval
5.4
* All numbers are in USD billion. Blue numbers are estimated values. Sources: Thomson One, KPMG
Bidder Target Therapy area Value Contingent
payments Total value *
McKesson Corp. Celesio AG Wholesaler of pharmaceutical and healthcare products and services
6.8
The Carlyle Group LLC**
Johnson & Johnson - Ortho-Clinical Diagnostics unit
Transfusion medicine incl. donor screening and blood typing products
4.2
Temasek Investor Group
CEVA Santé Animale S.A. Animal healthcare incl. vaccines 2.0
Bristol-Myers Squibb Co.
iPierian Inc. Neurodegenerative diseases 0.2 0.6 0.8
H. Lundbeck A/S Chelsea Therapeutics Ltd. Neurology 0.7
Akorn Inc. Hi-Tech Pharmacal Co., Inc. Generics, prescription brands, OTC incl. diabetes, bronchial disorders
0.6
Hyperion Therapeutics Inc.
Andromeda Biotech Ltd. Diabetes 0.1 0.5 0.6
Shenzhen Hepalink Pharmaceutical Co., Ltd.
Scientific Protein Laboratories LLC
APIs for the pharmaceutical, veterinary, food industries
0.3 0.2 0.5
Torrent Pharmaceuticals Ltd.
Elder Pharmaceuticals Ltd. Women's healthcare, nutraceuticals, pain and wound management
0.3
Concordia Healthcare Corp.
Revive Pharmaceuticals Inc. - Donnatal product line
Abdominal discomfort, bowel syndrome, acute enterocolitis
0.3
TABLE 01 GLOBAL TOP DEALS COMPLETED – Q2 2014
* All numbers are in USD billion. Blue numbers are estimated values. ** Financial investors are italicized. Sources: Thomson One, KPMG
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
4 | Deal Capsule | Pharmaceuticals | August 2014
Sources: Thomson One, KPMGSources: Bloomberg, KPMG
Domestic deal activity for China has increased in Q2 over Q1 2014 as local companies continue to expand their pre- sence. Major players (whether strategic or financial) are especially keen to acquire businesses in China. However, good targets are difficult to find given high pricing and sen-sitivities around compliance risks.
Chinese companies are also keen to invest abroad to drive R&D and specialization. In Q2 2014, Shenzhen Hepalink Pharmaceutical Co., Ltd. acquired US based Scientific Pro-tein Laboratories LLC – a leading global heparin active phar-maceutical ingredient (API) player. The acquisition will en-hance Shenzhen Hepalink’s R&D capabilities.
CHINA
FIGURE 07 Pharmaceutical deals in selected countries in Q2 2014
Financial investors are showing keen interest in the phar-maceutical sector with 23% of deals involving PE houses, investment companies/groups or individual investors. In some instances, financial investors are picking up second-ary non-core assets.
Adding to a series of investments in the healthcare sector, the Carlyle Group completed the acquisition of Johnson & Johnson’s Ortho-Clinical Diagnostics (OCD) unit, with 2013 sales of $1.9 billion. Carlyle will provide new leadership and accelerated R&D investment to strategically position OCD as a global leader in sophisticated medical diagnostic pro- ducts and services, a promising growth area.
As part of CEVA Santé Animale S.A.’s capital restructur-ing, Temasek Investor Group, a Singaporean state owned investment fund, took an equity stake in CEVA, an animal health business. The capital injection will help CEVA realize its ambition to become the first independent player within the top 5 global animal health companies by 2020.
FINANCIAL INVESTORS MORE ACTIVE
FIGURE 06 Development of European share prices in HY1 2014
McKesson secures acquisition of Celesio
McKesson Corp., one of the largest US pharmaceuti-cal wholesalers with 2013 sales of $137 billion, was interested in increasing its presence internationally as a leading player in efficient global delivery of healthcare products and services. Celesio AG with 2013 sales of $28 billion, presented itself as the perfect candidate providing an ideal regional fit due to its presence in more than 14 countries including key European markets such as Germany, France, the UK as well as in emerg-ing markets such as Brazil.
McKesson’s initial bid of $31.2 (€23) per share in Oc-tober 2013 was blocked by the US hedge fund Elliott Management Corp. (Elliott). In January 2014, McKes-son entered into a revised share purchase agreement with Franz Haniel & Cie. GmbH to acquire their entire holding of Celesio shares. McKesson also agreed with Elliott to acquire Celesio convertible bonds. In February 2014, McKesson announced the successful comple-tion of these agreements and initiated the tender offer for $31.8 (€23.5). Following the close of an initial and subsequent acceptance period, McKesson officially owns 75.93% of Celesio shares and voting rights as of 22 April 2014.
The top European pharmaceutical companies have per-formed better than the Bloomberg European 500 Index.
CAPITAL INDEX
250
260
270
280
290
300
02.0
1.20
14
02.0
2.20
14
02.0
3.20
14
02.0
4.20
14
02.0
5.20
14
02.0
6.20
14
02.0
7.20
14
Bloomberg European 500 Index (indexed)BE500 Pharmaceutical Index
44
1115
9
3 4
19
10 95
39
11 119 10
3
20
10 10
5
USA Canada France Spain United Kingdom
Germany China South Korea
Japan India
Target Nations Acquirer Nations
“From manufacturing through to distribution, our industry is clearly becoming increasingly global. Together with McKesson, Celesio will deal with the increasing complexity this brings and become an even stronger international enterprise.” says Dr. Marion Helmes, speaker of the management board and CFO, Celesio
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
August 2014 | Chemicals | Deal Capsule | 5
Chemicals
In Q2 2014, the bulk of chemical deals continue to be bolt on transactions. Similar to Q1, all of the global top 10 completed deals are each under $2.5 billion. US continues to dominate with four of the global top 10 completed deals involving US targets.
US shale gas continues to drive M&A activity
The US shale gas boom and the resulting decrease in energy prices have continued to remain an important factor for US related deal activity. For example, Mit-subishi Chemical Holdings Corp. announced it would increase its stake in Tayio Nippon from 27% to 51%. This will allow it to seize market opportunities in South-east Asia and India and to meet increased demand for gases used in its US plants owned jointly with Dow Chemical. They will also supply US gas companies with gas production equipment. For Taiyo Nippon, the deal is an opportunity to leverage increasing demand in the US given weaker market conditions in its home market.
FIGURE 08 Top countries in chemical M&A in Q2 2014 FIGURE 09 Number of chemical deals by investor in Q2 2014
15
9
98
6
7
By acquiring the leading high-tech materials supplier, AZ Electronic Materials SA, with an extensive operational footprint in Asia, Merck AG has strengthened its position as a premium segment solutions provider for the global electronics market.
Minerals Technologies Inc.’s acquisition of Amcol Interna-tional Corp. aims to create leadership in specialized indus-trial minerals, especially in the bentonite and precipitated calcium carbonate market sectors.
Entegris Inc.’s acquisition of ATMI Inc. combined two key leaders in the semiconductor industry. Entegris gains access to ATMI’s product portfolio, global infrastructure and expertise in key processes. This creates a technology leader in advanced process materials, contamination con-trol and wafer handling.
Rockwood Holdings Inc. acquired a 49% joint venture stake in Australia-based Talison Lithium Ltd. (Talison) partnering with Tianqi Lithium Industries Inc., China’s leading lithium company. This expands Rockwood’s mainly American based geographical presence to Australia. Talison mines and processes lithium-bearing mineral spodumene in an area which has the world’s largest known reserves of lithium spodumene minerals with a current mine life of ap-proximately 40 years.
Similarly, PPG Industries Inc.’s (PPG) purchase of Consorcio Comex SA, a leading Latin American architectural coatings business, aims to enlarge PPG’s presence in Mexico and Central America.
DEAL FOCUS AREAS
Top deals during Q2 2014 were strategic in nature as chemical companies continue to position themselves in an increasingly competitive global marketplace. Specialization and geographical expansion were the key deal drivers behind the global top 10 completed deals in Q2 2014.
Sources: Thomson One, KPMGSources: Thomson One, KPMG
2
3
0
6
3
7
3
5
14
21
1
1
5
0
4
1
6
4
2
6
United Kingdom
South Korea
Germany
Japan
Brazil
India
Canada
France
China
USA
Domestic Acquirer Foreign Acquirer
18%
82%
Strategic Investors Financial Investors
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
6 | Deal Capsule | Chemicals | August 2014
The deal value of the global top 10 announced deals in HY1 2014 was $ 14.8 billion Bidder Target Business area Deal Status Total
value *
Samsung SDI Co., Ltd. Cheil Industries Inc. Scratch resistant resins, semiconductor materials
Merger approved by shareholders
3.3
PPG Industries Inc. Consorcio Comex, S.A. de C.V.
Coatings and related products
Pending antitrust approval
2.3
Flint Hills Resources LLC PetroLogistics LP and PetroLogistics GP LLC
Propane dehydrogenation Completed on 17 July 2014
2.1
Clayton Dubilier & Rice LLC Ashland Water Technologies Inc.
Specialty chemicals for water treatment
Completed on 01 August 2014
1.8
Mitsubishi Chemical Holdings Taiyo Nippon Sanso Corp. (24%)
Industrial gases and related equipment
Tender offer in Q4 2014
1.1
NIPSEA Holdings International Ltd.
Nippon Paint Co. Ltd. (19%) Paint, coatings, surface treatment
Pending 1.0
Platform Specialty Products Corp.
Chemtura Corp. - Agrochemical Business
Agricultural chemicals incl. seed treatment products
Pending shareholder and antitrust approval
1.0
Nippon Paint Co. Ltd. Nippon Paint (HK) Co. Ltd Paint and coatings Pending 0.8
Kraton Performance Polymers Inc.
LCY Chemical Corp. - Styrenic Block Business
Methanol, solvents, elec-tronic-grade chemicals, etc.
Combination agreement signed
0.7
Westlake Chemicals Corp. Vinnolit Holdings GmbH PVC Completed on 31 July 2014
0.7
The deal value of the global top 10 completed deals in Q2 2014 was $ 7.5 billion
TABLE 04 GLOBAL TOP DEALS ANNOUNCED, YET TO CLOSE – HY1 2014
Bidder Target Business area Total value *
Merck KGaA AZ Electronic Materials S.A. Premium segment high-tech materials, functional specialty chemicals
2.5
Minerals Technologies Inc. Amcol International Corp. Specialty materials with a core expertise in minerals and polymer science
1.5
Entegris Inc. ATMI Inc. Advanced materials, material delivery systems 1.1
Arle Capital Partners Ltd.** and Electra Private Equity PLC
Innovia Group Polypropylene and cellulose films for food packaging, tobacco overwrap and labels
0.7
Balchem Corp. Performance Chemicals & Ingredients LLC
Customized food and beverage ingredient systems
0.6
Kulczyk Investments Ciech S.A. (51%) Soda, isocyanates and sulphur 0.3
LG Chem Ltd. NanoH2O Inc. Reverse osmosis membranes 0.2
Rockwood Holdings Inc. Talison Lithium Ltd. (49%) Lithium production 0.2
Daesung Group Partners Co., Ltd.
Daesung Industrial Gases Co., Ltd. (50%)
High-pressure gas incl. oxygen, nitrogen, argon 0.2
Stahl Holdings BV Clariant AG - Leather Services Business Unit
Wet end chemicals and dyes, finishing for leather manufacturing
0.2
TABLE 03 GLOBAL TOP DEALS COMPLETED – Q2 2014
* All numbers are in USD billion. Blue numbers are estimated values. ** Financial investors are italicized. Sources: Thomson One, KPMG
* All numbers are in USD billion. Blue numbers are estimated values. ** Financial investors are italicized. Sources: Thomson One, KPMG
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
August 2014 | Chemicals | Deal Capsule | 7
The European chemical industry slightly under-performed the Bloomberg European 500 Index in Q2 2014.
CAPITAL INDEX
In Q2 2014, South Korean chemical companies continue to acquire downstream businesses with specialized tech- nology. LG Chem Ltd. bought NanoH2O Inc., a US-based start-up which has rapidly established itself as a leading re-verse osmosis membrane manufacturer in the desalination industry. The deal aims to boost the delivery of innovative and energy-efficient membrane technologies.
In addition, South Korean companies are looking to leverage their strengths through strategic partnerships. For example, Samsung SDI Co., Ltd. announced it would merge with Cheil Industries Inc. to leverage Cheil’s chemical and elec-tronic materials supply chain with Samsung SDI’s lithium-ion battery business. Market synergies are expected in automotive and lighting sectors.
Daesung Group Partners Co., Ltd. bought out its 35-year strategic joint venture partner, Air Liquide SA, to acquire 100% of Daesung Industrial Gases, a leading industrial gas producer. Following this transaction and to pay back loans in property development, Daesung Group Partners sought to raise capital. A financial consortium led by Goldman Sachs will take a controlling stake in the business. Daesung will have the option of buying back the gas pro-ducer at an agreed-upon valuation in four years.
SOUTH KOREA REMAINS ACTIVE
FIGURE 10 Development of European share prices in HY1 2014 FIGURE 11 Chemical deals in selected countries in Q2 2014
Sources: Bloomberg, KPMG Sources: Thomson One, KPMG
In an attempt to make Chinese companies more competitive in the global M&A market, the National Development and Reform Commission has eased the process for investment approval filings. In May 2014 the regulatory approval thresh-old for overseas investments with Chinese participation has increased from $100 million to $1 billion. This amendment to Chinese M&A regulation is expected to shorten takeover lead times significantly.
CHINA EASING REGULATORY BURDENS
280
290
300
310
320
02.0
1.20
14
02.0
2.20
14
02.0
3.20
14
02.0
4.20
14
02.0
5.20
14
02.0
6.20
14
02.0
7.20
14
Bloomberg European 500 Index (indexed)BE500 Chemical Index
27
97
9
35
16
68
4
29
7
3
7 8
4
1412 11
4
USA Canada Brazil France United Kingdom
Germany China Japan India South Korea
Target Nations Acquirer Nations
Stahl acquires Clariant’s Leather Services business
Stahl, headquartered in the Netherlands, completed its acquisition of Clariant’s Leather Services Business in Q2 2014. Stahl has taken over all the relevant activities including production sites in Germany, Italy and India and laboratories in several countries. Clariant has taken a minority stake in the combined business, alongside Wendel and other shareholders.
“As a result of the acquisition, Stahl has become a global leader in chemicals for leather products, covering the entire leather processing chain. As we expand our market and product coverage, we are able to respond even better to our clients’ needs.”, says Bram Drexhage, Group CFO, Stahl Holdings BV.
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the cir-cumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Our services are provided subject to our verification whether a provision of the specific services is permissible in the individual case.
© 2014 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Germany. The KPMG name, logo and “cutting through complexity” are registered trademarks of KPMG International.
Imprint
Publisher
KPMG AG Wirtschaftsprüfungsgesellschaft Tersteegenstrasse 19 – 31 40474 Dusseldorf Germany
Contact
Vir Lakshman * Partner, Head of Chemicals & Pharmaceuticals, Germany T +49 211 475-6666 [email protected]
Christian Klingbeil Partner, Valuations T +49 89 9282-1284 [email protected]
Christian Specht Partner, M&A T +49 69 9587-2240 [email protected]
Authors
Rita Duran Senior Manager, Chemicals & Pharmaceuticals, Germany
Sebastian Heinisch Chemicals & Pharmaceuticals, Germany
Contributors
Linda Lin Partner, KPMG in China
Tobias Valk Partner, KPMG in Switzerland
www.kpmg.de
* Responsible according to German Law
(§ 7 (2) Berliner PresseG)
Basis of data preparation
Values and volumes used throughout the report are based on completion date as provided by Thomson Reuters’ database Thomson One as of 1 July 2014, and supplemented by additional independent research. This report includes disclosed and undisclosed values for M&A transactions including minority stake purchases, acquisitions of remaining interest, and recapitalizations and it explicitly excludes self-tenders and spin-offs. The published numbers of deals and deal values are based on the analysis of target companies which operate in the following subsectors:
Pharmaceuticals: – Medicinal chemicals & botanical products – Pharmaceutical preparations – In vitro and in vivo diagnostic substances – Biotechnology – biological products – Pharmaceutical wholesale (added starting in Q2 2014)
Chemicals: – Clay, kaolin, ceramic & refractory minerals – Chemical and nonmetallic mineral mining, except fuels – Fertilizers and agricultural chemicals – Industrial gases – Specialty chemicals – Chemical wholesale – Plastics and rubber components
KPMG’s Deal Thermometer is based on financial data as provided by S&P Capital IQ of public companies in the same sector as noted above with a market capitalization at quarter end of at least a $1 billion. For the pharmaceuti-cal sector, this comprises 279 public companies. For the chemical sector, this comprises 254 public companies.
All figures in this report are shown in US Dollars ($).
SourcesOnline databases: – Thomson One (Thomson Reuters) – Mergermarket – S&P Capital IQ – EvaluatePharma – Bloomberg
Publications: – Various companies’ press releases