Preqin’s Buyout Deals Analyst shows that there have been 375 private equity-backed buyout deals in Europe so far this year with an aggregate value of €25.9bn. Of the overall deal activity, the UK, France and Germany constituted 62% of the number of deals and 72% of the total deal value.
There have been 32 buyout deals announced in Germany in 2013 YTD, valued at a total of €9.3bn. This represents 36% of the aggregate deal value in Europe so far this year and is in stark contrast to 2011, when the total value of German private equity deals accounted for 8% of the European total. This differs significantly to the downward trend shown by French private equity deals, which constituted 19% of the aggregate value of all buyout deals in Europe in 2011 and has subsequently fallen to 5% of the total in 2013 YTD. The aggregate deal value of UK buyouts as a proportion of the European total fluctuated considerably in the past few years representing a quarter of the aggregate deal value in 2011, 43% in 2012 and 31% so far this year.
The significant proportion of the European aggregate deal value that German buyouts have accounted for so far this year can be attributed to the fact that the three biggest deals in 2013 YTD have come from Germany. BC Partners recent acquisition of Springer SBM for €3.3bn and CVC Capital Partners’ acquisition of Ista are the biggest German private equity deals since KKR and Goldman Sachs Merchant Banking Division acquired KION Group GmbH for €4bn in November 2006. In fact, in the 2006-present period, the Springer SBM and Ista deal rank 3rd and 4th in German private equity deals respectively.
When reflecting on the quarterly breakdown of the European aggregate deal value since the start of 2012, the data fluctuates significantly with no discernible trend emerging. For example, the aggregate deal value in Q4 2012 stood at €20.8bn; this decreased to €6.3bn in Q1 2013 and increased again to €19.6bn in Q2 2013 YTD. While a return to the high seen in 2007, when the aggregate private equity deal value reached €144.1bn, looks far from imminent, the emergence of Germany as a viable option for private equity investments suggests some cause for optimism.