Review of Private Equity-Backed Buyout Exits in 2013: Industry Breakdown – January 2014

by Catriona McCarron

  • 17 Jan 2014
  • PE

Preqin’s Buyout Deals Analyst online service demonstrates that in 2013, 1,348 private equity-backed buyout exits were recorded, with an aggregate exit value of $302.6bn, a 6% rise on 2012’s aggregate exit value of $284.5bn. 

When analyzing private equity-backed buyout deals exits by industry, industrials had the highest number of exits, making up 27% of the total, with the aggregate exit value of $50.8bn comprising 17% to total aggregate exit value for the year. The largest exit within this industry was the ¥400bn (approx. $4bn) trade sale of Grohe in September 2013 by DLJ Investment Partners and TPG to Development Bank Japan and JS Group Corporation (Lixil Group). 

Consumer and retail had the largest aggregate exit value in 2013, with $54.6bn making up 18% of the total aggregate exit value across all industries. A significant number of exits accompanied this figure, with private equity-backed exits in the consumer and retail field accounting for 16% of all exits in 2013. Within the sector, 2013 saw TPG and Warburg Pincus exit Neiman Marcus Inc. via a sale to Ares Management and CPP Investment Board for $6.375bn, reaping the investors a reported 2.5x return on their investment. 

Business services witnessed 187 private equity-backed buyout exits in 2013, with an aggregate value of $44.6bn, accounting for 15% of total aggregate exit value. This is a rise of 4% from 2012’s aggregate exit value within business services.

Two of the largest private equity-backed buyout exits in 2013 were witnessed within the healthcare sector: the $8.7bn sale of Bausch & Lomb by Warburg Pincus and Welsh, Carson, Anderson & Stowe to Valeant Pharmaceuticals in May. Secondly, the $8.5bn sale of Warner Chilcott by Bain Capital, CCMP Capital Advisors, GCM Customised Fund Investment Group, JP Morgan Partners and Thomas H. Lee Partners to Actavis Group. These two exits contributed 41% towards the aggregate value of exits within the sector in 2013. In terms of the number of private equity-backed exits, there were 149 exits in the healthcare sector in 2013, contributing 11% to the aggregate number of exits across all industries.

Food and agriculture saw 75 private equity-backed buyout exits valued at $17.2bn and contributing 6% of the aggregate exit value last year. The notable sale of US Foodservice Inc. by Clayton Dubilier & Rice and Kohlberg Kravis Roberts to Sysco Corporation for $8.2bn accounted for 48% of the total value of healthcare exits.

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