2014 – Issue 1

Multiple: European private equity watch

2014 Outlook

Mega deal trend will continue

IPOs will continue to offer viable exit route

Fund raising will drive more deals

Non-European investors continue buying spree

European corporates need to rejoin the market

2013 recap

EY - European private equity watch, Issue 1, 2014
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The European PE market has seen a sustained recovery over the past year and the outlook for 2014 is upbeat as confidence continues to grow. The total value of exits has surpassed new deal values and the IPO market has been the real hero in 2013. While secondary buyouts have remained steady, the lack of activity from European corporates has been disappointing.

Headlines, Q4 2013

Springer was the largest buyout of 2013

  • BC Partners agreed to buy Springer Science & Business Media for €3.3b from EQT in a secondary buyout that was the largest PE-backed acquisition in Germany for seven years.

IPO market returned to life

  • There were some 20 exits made through initial public offerings (IPOs) during the year, raising more than €25b during the year, the highest total value ever recorded. In 2012 there was only one IPO.

Germany claimed the largest buyouts of the year

  • Out of the nine €1b-plus buyout deals of 2013, four were German, while only two were from the UK. The four German deals happened to be the four largest during the year as well.

Lowest level of megadeals since 2009

  • The nine €1b-plus deals in 2013 had a combined total of just under €15b, making 2013 the quietest year for megadeals since the low of 2009.

Confidence remained fragile, but Eurozone fears abated

  • The year began with fears that the financial crisis in Cyprus could spread to other Eurozone economies, but such fears proved unfounded as the zone stabilized during the year. Even so, non-Eurozone countries appeared to remain attractive to outside investors.

Post-crisis deals began to exit

  • By the end of 2013, seven of the top 20 exits were from post-2009 deals, showing how PE has been able to buy at good prices and weather poor market conditions to grow their assets and successfully exit in a three- to five-year period.
  2013 Recap
EY - Multiple European buyouts watch Q1 2013
  • January

    Deal: Largest UK deal in 2013 (M&B Retail, €1.2b)
    Exit: One GmbH/Orange €1.3b (trade sale)

  • February

    Deal: Largest Dutch deal in 2013 (Mediq, €0.8b)
    Exit: Dematic €0.8b (secondary)

  • March

    Deal: Largest Italian deal in 2013 (Cerved Business information, €1.1b)
    Exit: Esure Insurance €1.4b (IPO)
    Stat: Retail becomes highest valued sector in Q1 2013 (€3.8b), overtaking manufacturing (€2.8b)

  • April

    Deal: Largest Norwegian deal in 2013 (Aibel, €1.2b)
    Exit: Taminco €1b (IPO)

  • May

    Deal: Largest deal of the month (Cabot Financial, €0.9b, UK)
    Exit: Constellium €1.4b (IPO)

  • June

    Deal: Largest Danish deal in 2013 (Unifeeder, €4.0b)
    Exit: Stille & Linde/Kion €2.4b (IPO)
    Stat: European buyout market reaches €21.8b in first half of year

  • July

    Deal: Largest Spanish deal in 2013 (Befesa, €1.1b)
    Largest French deal in 2013(Allflex, €1b)
    Exit: Ista €3.1b (secondary)

  • August

    Deal & Exit: Largest German deal and exit in 2013 (Springer Science & Business Media, €3.3b)

  • September

    Deal: Largest deal of the month (CeramTec, €1.5b, DE)
    Exit: Gambro €3.1b (trade sale)
    Stat: Refinancings hit highest level (€31.6b) since 2007

EY - Multiple: European private equity watch, 2014 - Issue 1
  • October

    Deal: Largest Swiss deal in 2013 (Archroma, €0.4b)
    Exit: The Colomer group €0.5b (trade sale)

  • November

    Deal: Largest Austrian deal in 2013 (AHT Cooling Systems, €0.6b)
    Exit: Merlin Entertainments €3.8b (IPO)

  • December

    Deal: Largest Finnish deal in 2013 (Terveystalo, €0.7b)
    Exit: Moncler €2.6b (IPO)
    Stat: IPO market reaches highest value ever, €25b, by end of 2013