Experia and Mergers Alliance Autumn 2011
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Latest Report out Now M&A at a glance News and views from the Mergers Alliance international partnership Against the backdrop of challenging economic conditions, our research shows the US remains an attractive destination for foreign investors. There has been an upswing in cross-border M&A targeting US firms from the same period last year. The first three quarters of 2011 saw activity rise by 19% in volume while domestic M&A activity (US companies buying US companies) also increased, albeit with a slightly lower figure of 12%. UK to US cross-border activity increased 23% while German buyers in the US increased by 88% where interestingly there were a number of buys in US utilities as well as renewable energy companies, a sector that is experiencing a decrease in state support domestically. “The rise in M&A is representative of the general US economy; although there are still perceived risks, the fact that economic uncertainty has hit all four corners of the globe means that the US remains one of the more attractive markets.” Andy Currie, Chairman of Mergers Alliance Emerging market investors also increased their presence in America. For example there were 55 China-American deals, up 28% YOY. The conventional wisdom is that the US is a safe haven during a time of crisis, we expect this M&A uptrend to continue as overseas investors seek safety from the temperamental global market. Foreign M&A in US up by 19% “This is more a time for strategic fit and high visibility than opportunism. The geographic location is not the primary factor, rather it is fit and risk.” Our latest report Mergers Alliance examines the cleantech sector. The new publication sets outs the cleantech M&A landscape across 17 major economies and predicts expanding M&A activity over the next 18 months despite ongoing economic uncertainty. For more information contact: Mergers Alliance Research Manager Andre Johnston [email protected] Phil Seefried Co-Founder and CEO of Mergers Alliance’s US partner Headwaters. Or go to: www.mergers-alliance.com to download the report. Autumn 2011
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Transcript of Experia and Mergers Alliance Autumn 2011
Latest Report out Now
M&A at a glanceNews and views from the Mergers Alliance international partnership
Against the backdrop of challenging economicconditions, our research shows the US remainsan attractive destination for foreign investors.
There has been an upswing incross-border M&A targeting USfirms from the same period lastyear. The first three quarters of2011 saw activity rise by 19% involume while domestic M&Aactivity (US companies buying UScompanies) also increased, albeitwith a slightly lower figure of 12%.
UK to US cross-border activityincreased 23% while Germanbuyers in the US increasedby 88% where interestingly therewere a number of buys in USutilities as well as renewableenergy companies, a sector that isexperiencing a decrease in statesupport domestically.
“The rise in M&A is representativeof the general US economy;
although there are still perceivedrisks, the fact that economicuncertainty has hit all four cornersof the globe means that the USremains one of the more attractivemarkets.” Andy Currie, Chairmanof Mergers Alliance
Emerging market investors alsoincreased their presence inAmerica. For example there were55 China-American deals,up 28% YOY.
The conventional wisdom is thatthe US is a safe haven during atime of crisis, we expect this M&Auptrend to continue as overseasinvestors seek safety from thetemperamental global market.
Foreign M&A in USup by 19%
“This is more a time forstrategic fit and high visibilitythan opportunism. Thegeographic location is notthe primary factor, rather itis fit and risk.”
Our latest report Mergers Allianceexamines the cleantech sector.The new publication sets outs thecleantech M&A landscape across17 major economies and predictsexpanding M&A activity over the
next 18 months despite ongoingeconomic uncertainty. For moreinformation contact:Mergers Alliance Research ManagerAndre [email protected]
Phil SeefriedCo-Founder and CEO of Mergers Alliance’sUS partner Headwaters.
Or go to: www.mergers-alliance.com to download the report.
Autumn 2011
It has been a busy quarter for the partner firms at Mergers Alliance, with a large number ofcross border deals. These transactions cover a range of sectors as shown below and ofparticular interest was the sale of The Bombay Burmah Trading Corp’s non-core brandSunmica to Japan based Aica Kogyo Co, a firm with US$1.1 billion in revenue whichcontrols more than 60% market share in the Japanese decorative laminate market.
M&A at a glance News and Events
South Africa Cleantech Conference
Latest Deals within the partnership
On 16th -17th November,Mergers Alliance heldits bi-annual conference inCape Town hosted by its SouthAfrican partner Bridge Capital.
Coinciding with the conference,the partner firms held a CleantechSeminar to mark the release of theMergers Alliance Cleantech SectorReport 2012. The seminar featuredguest speakers from the cleantechindustry as well as from withinthe partnership.
Topics included M&A opportunitiesin the South African cleantechmarket, barriers and routes toentry, funding and the currentglobal outlook for the cleantechsector.
Key Speakers included: GaryKendall, University of Cambridge -Programme for SustainableLeadership; Pieter Kriel, ThebeEnergy & Infrastructure; JustineMoore, Headstream Water andMark Wilson, Mergers Alliance.
Catalyst Corporate Finance advisedHomeServe plc on the sale of itsRetail Warranties Group to amanagement buy-out
Singhi Advisors advised The BombayBurmah Trading Corp on the saleof its non-core brand Sunmica toJapan based Aica Kogyo Co
Headwaters advisedWindjammer Capital Investorson its acquisition of JWC
Environmental
Northstar acted as advisor for theseller in the disposal of 100% of theshares of Solntse, the leading tortillamanufacturer in Russia to GRUMA
S.A.B of Mexico
Bridge Capital advisedStefanutti Stocks Limited on itsacquisition of Cycad Pipelines Ltd
and its related properties
Capital Partner advisedFrench Group Schneider Electricon the disposal of Controlli Srl,a non core Italian subsidiary
With over 553 transactions announced in the ninemonths to September 2011, Brazil has seentransaction values remain at the record levels of 2010.
M&A activity in Brazilremains bullish
M&A at a glance Country Focus
Of the announced transactions,circa 60% involved domesticinvestors, which is in line with theprevious year, although higher than2009 and 2008. Interestingly, thereappears to be an increasingpreference for 100% controltransactions, which representedcirca 60% of deals in 2011.
Acting as a consolidation agent inseveral sectors, private equity fundshave been increasing theirinvestment rate and are becomingincreasingly relevant to the BrazilianM&A landscape. In 2011, privateequity participated in over 40% ofdeals as opposed to 10% in 2007.
Due to the substantial consolidationopportunities in many sectors,Brazil’s M&A activity was spreadacross a large number of sectors.Food & drink (F&D) continued to beone of the most active sectors interms of volume, with 49transactions for the first ninemonths of 2011, a numbercomparible to the whole of 2010.BR Foods, formed from the mergerof Sadia and Perdigão, acquiredthe Brazilian pork unit ofCoperacampos for US$83 million.Additionally, in October, thecompany acquired Avex and GrupoDanica, in Argentina for US$150million, with both companiesinvolved in the production andprocessing of chicken and pork.BR Foods has about US$2.2 billionin cash and continues to look foropportunities in the food industryto expand its operations throughemerging markets, especially inLatin America.BroadSpan’s involvement inthe F&D sector included advisingGrupo Nacional de Chocolateson the US$40 million acquisitionof Helados Bon.
CAGR: 13.0%
“This positive M&Amomentum can be attributedto Brazil’s economic stability,full employment and theavailability and accessto credit.”
Leonardo AntunesManaging Director, BroadSpan Capital
Leonardo AntunesManaging Director, BroadSpan Capital
Telephone: +5521 3873 8000E: [email protected]
M&A Activity in Brazil from January to September
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Stas MichaelMergers Alliance Business Manager
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Andre JohnstonMergers Alliance Research Manager
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