Private Equity-Backed Buyout Deals in Q3 2013 - October 2013

by Kapil Joshi

  • 04 Oct 2013
  • PE

Having reached the end of Q3, Preqin’s Buyout Deals Analyst shows that there have been 674 deals in Q3 2013 with an aggregate deal value of $60.6bn. July had the greatest number of deals in Q3 2013 at 273 deals, whereas September had the highest aggregate deal value at $22.3bn.

When evaluating Q3 2013 in the context of the year as a whole, data shows that the aggregate deal value is at lower levels than those seen in Q1 and Q2 2013. Nonetheless, it should be noted that the Q1 2013 figures were highly influenced by the announcement of the privatizations of Dell and Heinz which together contributed $52.9bn of global aggregate deal value in that quarter. Following a decline in the number of deals from Q4 2012 to Q1 2013, and another decline to Q2 2013 globally, the number of deals increased slightly in Q3 2013. 

When exploring the regional breakdown, it is apparent that US deals had an aggregate value of $33.7bn, thus making up 56% of total aggregate deal value globally. This is significantly higher than Europe, a region with the second highest aggregate deal value at $16.5bn and therefore representing 27% of total aggregate global deal value.

Given the significant US contribution to aggregate deal value in Q3, it is not surprising to see that four of the top five deals are from that particular region. The two largest deals of Q3 2013 are the announced buyouts of Neiman Marcus and Hub International. Ares Management and CPP Investment Board agreed to acquire Neiman Marcus for $6bn from TPG and Warburg Pincus, and Hellman & Friedman agreed to acquire Hub International for $4.4bn from Apax Partners and Morgan Stanley. Two of the top 10 deals in Q3 came from Asia; KKR has agreed to acquire Panasonic Healthcare for ¥165bn, while MBK partners agreed to acquire ING Life Korea for $1.65bn. Both of these transactions represented the largest Asian private equity deals of the year.

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