Largest Midlands Deals Buyout NameVendorDeal Value (£m) Busy Bees Knowledge Universe Education (USA) 220 Aurum HoldingsLandsbanski175 Whitworths HoldingsSBO (European Capital)90 Kee Safety InternationalSBO (LDC) WM Wymeswold Solar Power Plant Private44 City LinkRentokil40 Acenta SteelEndless38 Meter ProvidaFusion group38 In 2012 there were 6 £70m plus Midlands Deals
Midlands – The Last Decade NumberValue East MidsWest MidsEast MidsWest Mids
Generally arise where primary buyout performance relatively weaker and held longer SBOs on average perform worse than primary buyouts, divisional & FF buyouts Positive effects of SBOs achieved by expansion not increased efficiency. BUT……SBOs between specialized PE firms do perform better Care with Secondary Buyouts? sustain performance?
UK & Midlands 2013 Vendor Sources – % by Numbers
Private Equity Prospects Large deal volume up though total value down – Absence of mega deals Significant pending deals in 2014 – Domestic & General at £750 million – Skrill £511 million More large deals expected
Private Equity Prospects Public to privates extremely quiet in 2013 No large pending PTP deals Buoyant stock market Very quiet year for PTP in 2014
Private Equity Prospects IPO value of £9.8 billion highest on record. If stock and capital markets remain positive this trend should continue through Trade sales increasing but still seems some caution by corporates in converting increasing confidence into action
Private Equity Prospects 2013 ended on a more positive note than it began. Debt levels rose last year and more relaxed debt markets Buoyant exit and refinancing markets Increased UK based fund raising Large amounts of capital availability likely to fuel return to growth in buyout market in 2014.