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Private Equity-Backed Deals in Europe Lead Aggregate Deal Value - February 2015

by Ciantelle Lawrence

  • 19 Feb 2015
  • PE

Preqin’s Buyout Deals Analyst shows that Europe has contributed the greatest aggregate deal value globally in 2015 YTD, with 126 private equity-backed investments in Europe-based portfolio companies since the start of the year at an aggregate deal value of €9.3bn. As shown in the chart below, this represents 50% of aggregate deal value globally. Although Europe boasts the highest value of private equity-backed deals , companies in North America received the greatest number of investments, with 251 private equity-backed transactions announced, valued at a total of $8.1bn (€7bn). 

Aggregate deal value in Europe superseding that of North America can be largely attributed to the number of large cap ($1bn+) deals taking place within the region. Four of the five large cap deals to be announced in 2015 so far are in Europe. Furthermore, six of the 10 largest deals globally this year have also been announced in Europe.

The UK and Switzerland rank highest in terms of total contribution to deal value, contributing 34% (€3.2bn) and 27% (€2.5bn) respectively in 2015 YTD. The largest deal so far this year is the acquisition of Switzerland-based TE Connectivity's Telecom, Enterprise and Wireless Businesses by CommScope Inc., a portfolio company of Carlyle Group, for $3bn (approximately €2.5bn). 

In terms of industry, private equity-backed investments within the consumer & retail sector have contributed the largest proportion (30%) of total aggregate deal value in Europe in 2015 YTD. This is largely due to the long-awaited close of the bidding war for France-based Club Mediterranée, a holiday package operator that entered into an agreement to be acquired by an investor consortium, led by Fosun International, in a take-private transaction for €939mn; in addition to the £680mn acquisition of Jurys Inn Group Ltd. by Lone Star Funds. These two transactions alone contributed two-thirds of the capital invested through private equity-backed transactions in the European consumer & retail sector.

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