zephyr m&a report north america, january 2014

Zephyr Monthly M&A ReportNorth America, January 2014

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Zephyr is a database of M&A, IPO, private equity and venture capital deals with links to detailed financial information on companies. For more information visit www.zephyrdealdata.com.

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Page 1 © Zephyr

The following report details mergers and acquisitions activity in North America in January 2014 using data from the Zephyr database.

It focuses on deal activity by target company.

Click here to access the raw data in an Excel spreadsheet.

North American M&A value down on December

The value of mergers and acquisitions (M&A) targeting companies based in North America during January decreased 25 per cent month-on-month, but was still up on a year ago.

There were 1,063 deals worth a combined USD 91,591 million in the four weeks under review, compared to USD 122,616 million in December 2013 and USD 75,576 million in January 2013. Despite the decline month-on-month, value remained higher than November, when dealmaking worth USD 83,244 million was recorded across 1,175 deals.

As usual, targets in the US made up the majority of the region’s deals for the month. In total, the country had 812 deals worth USD 83,948 million over the four weeks. This also represents a decrease on last month in terms of both volume and value (December 2013: 863 deals worth USD 113,125 million).

Canada followed the same pattern, as volume declined by a third and value by a fifth over the four weeks to 251 deals worth an aggregate USD 7,643 million.

North America deals by volume and value

Announced date No of deals Total deal value (mil USD)

Jan-14 1,063 91,591

Dec-13 1,237 122,616

Nov-13 1,175 83,244

Oct-13 1,310 103,410

Sep-13 1,141 203,035

Aug-13 1,207 97,430

Jul-13 1,280 133,639

Jun-13 1,153 116,813

May-13 1,272 102,295

Apr-13 1,218 74,897

Mar-13 1,155 54,307

Feb-13 1,073 137,194

Jan-13 1,605 75,576

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Page 2 © Zephyr

US deals by volume and value


Jan-14 812 83,948

Dec-13 863 113,125

Nov-13 845 69,423

Oct-13 987 94,487

Sep-13 850 197,064

Aug-13 911 89,632

Jul-13 966 114,748

Jun-13 891 101,640

May-13 976 96,377

Apr-13 893 68,376

Mar-13 865 46,713

Feb-13 776 128,980

Jan-13 1,278 63,073

Canada deals by volume and value


Jan-14 251 7,643

Dec-13 376 9,571

Nov-13 330 13,821

Oct-13 322 8,924

Sep-13 290 5,971

Aug-13 295 7,798

Jul-13 316 18,891

Jun-13 262 15,173

May-13 296 5,900

Apr-13 325 6,521

Mar-13 290 7,128

Feb-13 297 8,214

Jan-13 329 12,605









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North America deals by volume and value

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Whiskey maker Beam is January’s top deal by value

January’s top sector was the machinery, equipment, furniture and recycling industry, which was targeted in 124 deals worth a combined USD 18,225 million.

By value it was followed by food, beverages and tobacco on USD 16,173 million. This is perhaps unsurprising given that the month’s most valuable deal involved alcoholic spirits manufacturer Beam, best known for its Jim Beam range of whiskey, which has agreed to be bought by Japanese peer Suntory for USD 16,000 million in a deal expected to close during the second quarter of this year.

The number two transaction by value came some way behind and involved Carlyle Group agreeing to buy New Jersey-headquartered in-vitro diagnostics maker Ortho-Clinical Diagnostics for USD 4,150 million.

US targets again accounted for the lion’s share of the top 20 deals by value with Canadian companies targeted in just one of these. This deal involved Vancouver-based gold, silver, copper, lead and zinc explorer Goldcorp’s hostile USD 2,390 million-approach for Osisko Mining.

Chemicals sector M&A value rises in January

The chemicals, rubber and plastics sector was one of the biggest risers in terms of value in January, as dealmaking increased from USD 3,187 million in December to USD 13,679 million.

Sectors in which M&A value increased month-on-month include machinery, equipment, furniture and recycling (December: USD 15,119 million, January: USD 18,225 million) and food, beverages and tobacco (December: USD 713 million, January: USD 16,173 million), as well as wood, cork, paper, hotels and restaurants, education and health, insurance and metals.

In terms of volume, M&A dealmaking targeting almost all the sectors declined month-on-month; though notable exceptions include chemicals, rubber and plastics, food, beverages and tobacco, insurance and wood, cork and paper.









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Top 20 deals by value

Deal value (mil USD) Deal type Target Target

country Acquiror Acquiror country Deal status

1. 16,000 Acquisition 100% Beam Inc. US Suntory Holdings Ltd JP Pending

2. 4,150 IBO 100% Ortho-Clinical Diagnostics Inc. US Carlyle Group LP US Pending

3. 3,650 Acquisition increased 59% to 100% Chrysler Group LLC US Fiat North America LLC US Completed

4. 3,200 Acquisition remaining stake Nest Labs Inc. US Google Inc. US Completed

5. 3,024 Minority stake 27% Ally Financial Inc. US Completed

6. 2,910 Acquisition 100% Motorola Mobility Holdings Inc. US Lenovo Group Ltd HK Pending

7. 2,900 Acquisition 100% Aptalis Holdings Inc. US Forest Laboratories Inc. US Pending

8. 2,700 Acquisition 100% Texas Industries Inc. US Martin Marietta Materials Inc. US Pending

9. 2,400 IBO majority stake Sedgwick Claims Management Services Inc. US Management; Kohlberg Kravis Roberts & Company LP US Pending

10. 2,390 Acquisition 100% Osisko Mining Corporation CA Goldcorp Inc. CA Announced

11. 2,300 Acquisition 100% International Business Machines Corporation's x86 server hardware business

US Lenovo Group Ltd HK Pending

12. 2,000 Minority stake JP Morgan US Completed

13. 1,540 Acquisition 100% AirWatch LLC US VMware Inc. US Pending

14. 1,400 Acquisition 100% NewPage Corporation US Verso Paper Corporation US Pending

15. 1,300 IBO 100% CEC Entertainment Inc. US Apollo Global Management LLC US Announced

16. 1,150 Acquisition 100% Cetera Financial Group Inc. US RCS Capital Corporation US Pending

17. 1,120 Acquisition 100% Undisclosed SandRidge Energy Inc.'s Mexico and Gulf Coast business unit entities

US Fieldwood Energy LLC US Completed

18. 1,085 Acquisition increased 49% to 80% Yankees Entertainment & Sports Network LLC US Twenty-First Century Fox Inc. US Pending

19. 1,060 Acquisition 100% Thermo Fisher Scientific Inc.'s cell culture (sera and media), gene modulation and magnetic beads businesses

US GE Healthcare Inc. US Pending

20. 935 Minority stake 15% Envision Healthcare Holdings Inc. US Announced









Page 6 © Zephyr

Top 20 private equity deals by value

Deal value (mil USD) Deal type Target Target

country Equity provider Deal status

1. 4,150 IBO 100% Ortho-Clinical Diagnostics Inc. US Carlyle Group LP Pending

2. 2,400 IBO majority stake Sedgwick Claims Management Services Inc. US Kohlberg Kravis Roberts & Company LP Pending

3. 1,300 IBO 100% CEC Entertainment Inc. US Apollo Global Management LLC Announced

4. 800 Minority stake Vogue International Inc. US Carlyle Group LP Announced

5. 600 IBO 100% Inmar Inc. US Abry Partners LLC Completed

6. 500 Minority stake American Energy NonOp LLC US The Energy & Minerals Group Completed

7. 392 IBO 100% American Pacific Corporation US HIG Capital LLC Announced

8. 299 IBO 100% Upper Peninsula Power Company US Balfour Beatty Infrastructure Partners LLP Pending

9. 250 Minority stake 3% DropBox Inc. US BlackRock Inc. Completed

10. 160 IBO 100% Compuware Corporation's Changepoint, Professional Services and Uniface business units

US Marlin Management Company LLC Announced

11. 150 Minority stake Nest Labs Inc. US Completed

12. 130 IBO 100% HealthTronics Inc. US Altaris Capital Partners LLC Announced

13. 123 Minority stake ADKM Inc. US Highland Capital Partners LLC; Tiger Global Management LLC; SV Angel LLC; Thrive Capital; Lakestar Advisors GmbH

Completed

14. 101 Minority stake Nutanix Inc. US SAP Ventures; Riverwood Capital Management LLC; Greenspring Associates Inc.; MS Expansion Capital GP Inc.

Completed

15. 100 Minority stake View Inc. US Madrone Capital Partners LLC Completed

16. 97 Minority stake Augustus Energy Partners II LLC US Lime Rock Partners LLC; Wells Fargo Energy Capital Inc.; Rivington Capital Partners LLC Completed

17. 80 Minority stake Turn Inc. US Trident Capital Management LLC; Focus Management Inc.; Shasta Ventures Management LLC; Northport Investments; NVP Associates LLC; Firsthand Technology Value Fund Inc.; Pine River Capital Management LP; ClearBridge Investments LLC

Completed

18. 75 Minority stake Palomar Specialty Insurance US Genstar Capital LLC Completed

19. 50 IBO 100% Oxford County Telephone & Telegraph Company US Novacap Pending

20. 44 Minority stake AqueSys Inc. US Carlyle Group LP; Rho Capital Partners Inc.; Accuitive Medical Ventures LLC; SV Life Sciences Advisers LLC; Longitude Capital Management Company LLC

Completed









Page 7 © Zephyr

PE value edges up slightly

The value of private equity and venture capital (PE and VC) investment targeting North American companies climbed slightly over the four weeks to USD 13,503 million, compared to USD 13,024 million in December. Value has remained relatively stable over the last five months with only fairly small fluctuations after falling from high of USD 37,188 million in August to USD 12,355 million in September.

The increase in value during January was counteracted by a decline in volume, which fell from 323 deals in December to 255.

Almost all of the investment recorded was attributable to US targets, which accounted for 241 deals worth an aggregate USD 13,409 million. The country followed the trend recorded across the entire region, as value increased from USD 12,407 million last month and volume declined from 298.

Canada was targeted in just 14 PE deals worth a combined USD 93 million, representing a decrease in both volume and value month-on-month. The country’s disappointing result is further highlighted by its failure to make the top 20 PE deals by value for the month.

North America private equity deals by volume and value


Jan-14 255 13,503

Dec-13 323 13,024

Nov-13 339 13,468

Oct-13 348 13,815

Sep-13 327 12,355

Aug-13 356 37,188

Jul-13 407 7,063

Jun-13 383 6,041

May-13 357 21,769

Apr-13 371 8,128

Mar-13 366 9,633

Feb-13 318 32,036

Jan-13 445 11,571









Page 8 © Zephyr

US private equity deals by volume and value


Jan-14 241 13,409

Dec-13 298 12,407

Nov-13 306 10,638

Oct-13 321 13,655

Sep-13 309 12,286

Aug-13 332 32,551

Jul-13 372 7,036

Jun-13 360 5,931

May-13 335 21,376

Apr-13 346 7,302

Mar-13 343 9,072

Feb-13 295 31,044

Jan-13 411 11,135

Canada private equity deals by volume and value


Jan-14 14 93

Dec-13 24 617

Nov-13 33 2,830

Oct-13 27 160

Sep-13 18 69

Aug-13 24 4,636

Jul-13 35 27

Jun-13 23 110

May-13 22 393

Apr-13 25 826

Mar-13 22 561

Feb-13 23 992

Jan-13 34 435









Page 9 © Zephyr

North America private equity deals by volume and value

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Page 10 © Zephyr

M&A target sectors by volume

Target sector Jan-13 Dec-13 Jan-14

Other services 913 718 609

Machinery, equipment, furniture, recycling 155 132 124

Chemicals, rubber, plastics 75 47 56

Banks 116 67 56

Wholesale & retail trade 80 59 56

Education, health 49 30 26

Primary sector 41 34 26

Food, beverages, tobacco 21 15 21

Publishing, printing 22 24 18

Transport 27 20 14

Hotels & restaurants 19 15 13

Insurance companies 23 9 10

Metals & metal products 23 20 10

Construction 12 9 9

Gas, water, electricity 17 22 7

Textiles, wearing apparel, leather 8 10 7

Wood, cork, paper 7 1 5

Post and telecommunications 1 1 0

Public administration and defence 1 0 0

M&A target sectors by value

Target sector Jan-13 (mil USD)

Dec-13 (mil USD)

Jan-14 (mil USD)

Other services 24,743 60,449 25,028

Machinery, equipment, furniture, recycling 5,050 15,119 18,225

Food, beverages, tobacco 1,498 713 16,173

Chemicals, rubber, plastics 4,353 3,187 13,679

Banks 15,996 11,747 9,296

Primary sector 3,619 4,227 1,506

Wood, cork, paper 640 0 1,401

Wholesale & retail trade 6,082 11,490 1,398

Hotels & restaurants 690 613 1,313

Transport 6,447 1,759 1,240


Gas, water, electricity 1,248 9,629 773

Insurance companies 1,024 35 553

Metals & metal products 2,905 162 190


Textiles, wearing apparel, leather 176 2,877 19

Construction 408 103 8











Page 11 © Zephyr

Private equity target sectors by volume

Target sector Jan-13 Dec-13 Jan-14

Other services 307 205 169


Chemicals, rubber, plastics 10 11 12

Wholesale & retail trade 21 9 9


Hotels & restaurants 5 5 4

Banks 9 5 4





Textiles, wearing apparel, leather 3 4 2


Construction 2 3 2

Transport 4 2 1





Private equity target sectors by value

Target sector Jan-13 (mil USD)

Dec-13 (mil USD)

Jan-14 (mil USD)

Chemicals, rubber, plastics 196 258 5,486

Other services 5,092 7,970 4,968

Hotels & restaurants 20 22 1,312

Banks 539 640 541



Wholesale & retail trade 3,363 414 183






Textiles, wearing apparel, leather 0 2,425 0

Construction 53 0 0


Transport 200 251 0












Page 12 © Zephyr

Top 20 private equity providers

Equity provider Number of deals Number with consideration Total deal value (mil USD) Average deal value (mil USD)

1 Carlyle Group LP 4 3 4,994 1,665

2 Kohlberg Kravis Roberts & Company LP 2 2 2,439 1,219

3 Apollo Global Management LLC 1 1 1,300 1,300

4 Apax Partners LLP 1 1 1,150 1,150

5 Apollo Management LP 1 1 902 902

6 Abry Partners LLC 1 1 600 600

7 The Energy & Minerals Group 1 1 500 500

8 Platinum Equity LLC 1 1 408 408

9 HIG Capital LLC 2 1 392 392

10 Headland Capital Partners Ltd 1 1 353 353

11 HgCapital LLP 1 1 331 331

12 Hony Capital Co., Ltd 1 1 301 301

13 CVC Capital Partners Ltd 1 1 300 300

14 Balfour Beatty Infrastructure Partners LLP 1 1 299 299

15 BlackRock Inc. 1 1 250 250

16 Oaktree Capital Management LP 2 2 220 110

17 Highland Capital Partners LLC 5 5 214 43

18 Insight Venture Partners 5 5 208 42

19 Eurazeo SA 1 1 194 194

20 Warburg Pincus LLC 2 2 193 97









Page 13 © Zephyr

Notes to editors

Activity is based on the activity of the target company

Deal status is announced within the time period

The sector breakdown uses targets’ activities as defined to be ‘Major Sectors’ by Zephyr

The date range is 01/01/2014 - 30/01/2014 inclusive





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