European Private Equity-Backed Buyout Deal Activity in 2014 YTD – October 2014

by Philipp Kuny

  • 31 Oct 2014
  • PE

Preqin’s Buyout Deals Analyst has recorded 815 European private equity-backed buyout deals so far this year with an aggregate value of €47.1bn. On average, 33% of all private equity-backed buyout deals across 2006 to 2014 YTD have taken place in Europe, although European deals in 2014 YTD account for 30% of all deals globally, with a peak of 38% in 2006. In terms of aggregate deal value, Europe has contributed 25% to the global aggregate deal value in 2014 YTD. This represents a drop of two percentage points when compared to 2013.

Breaking down this year’s aggregate deal value in Europe, Central- and East Europe-based buyout deal activity has experienced a decrease, comprising only 4% (from 9% in 2013), while West Europe remains the dominant region, representing 80% of Europe’s aggregate deal value this year. The Nordic region has seen an increase in its proportion of European aggregate deal value, from 8% in 2013 to 16% this year, buoyed by the two largest European LBOs of 2014 YTD taking place in the region. In July, Nordic Capital acquired a majority stake in Norway-based Lindorff Group for €2.3bn, while in March, Denmark-based Nets Holding A/S was acquired for approximately €2.3bn by various investors, including Advent International, ATP Private Equity Partners, Bain Capital and Via Venture Partners. 

Globally, private equity-backed buyout deals in the consumer & retail sector have contributed the highest proportion (20%) of aggregate deal value in 2014 YTD. However, in Europe, the consumer & retail segment only ranks third, comprising 17% of the aggregate value of private equity-backed buyout deals. The most prominent industries in Europe, with regards to the aggregate value of deals this year so far, have been in business services and industrials, with each of them accounting for 19% of the total value. The aggregate deal value of the business service industry increased by eight percentage points from 2013, attributable to the completed LBOs of Caixa Seguros e Saúde (€1bn), the previously mentioned Lindorff Group (€2.3bn) and the announced LBO of NN Group N.V. (€1.3bn). 

Regarding investment type, leveraged buyouts have accounted for 41% of the total number of private equity-backed buyout deals globally in 2014 YTD, and 57% of the global value (€109bn). Within the European region, LBOs have experienced greater prominence in 2014 YTD, representing 56% of the total number of transactions and 80% (€37.6bn) of the aggregate deal total.

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