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Private Equity-Backed Buyout Deals in Central and Eastern Europe 2006 – 2013 – April 2013

by Jessica Hull

  • 25 Apr 2013
  • PE

Preqin’s Buyout Deals Analyst shows there have been 13 private equity-backed buyouts in Central and Eastern Europe (CEE) so far this year with an aggregate value of €175mn. The year prior to this, 77 private equity-backed buyout deals were recorded in this region valued at €1.7bn. During 2012, the most active countries for private equity-backed buyout deals in the CEE region were Russia, Poland and Turkey, with 20, 16, and 12 deals respectively taking place in these areas. These locations were also the most active areas for buyout investment in the region during 2006 and 2007.

During the buyout boom of 2006-2007, the industrials industry was the most prominent sector in Central and Eastern Europe, in terms of the number of deals, whereas the telecoms and media was the top industry in the CEE region in relation to the aggregate deal value, attracting €3.3bn over the two years. In contrast, the healthcare industry accounted for the largest number of private equity-backed buyout deals in 2012, followed by the business services and consumer and retail sectors.

In the period from 2006 to present, the highest year on record, in terms of aggregate deal value was 2008. In this year there were 89 private equity-backed buyout deals in the CEE region with an aggregate value of €4.9bn. It was during this year that the largest CEE private equity-backed buyout deal took place; the privatisation of Migros, a chain of supermarkets based in Turkey by BC Partners, DEA Capital and Turkven Private Equity for $3.15bn.

There was a noticeable absence of large-cap (over $1bn) deals in the region last year, which is likely to be due to the continuance of market volatility in Europe. However, the region displayed substantial resilience to the turbulent market conditions in 2011, with the number of private equity-backed buyout deals matching deal-flow witnessed in 2007 and 2008, and aggregate deal value reaching the highest levels seen since the onset of the global financial crisis.

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