Monthly M&A Activity Report. Western Europe, August 2016

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2 The following report details mergers and acquisitions activity in Western Europe in August 2016 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. M&A volume and value down in August The value of mergers and acquisitions (M&A) targeting companies based in Western Europe declined in August and was one of the lowest recorded for the 12 months under review. Value decreased 83 per cent to EUR 37,724 million in August from EUR 216,020 million in July, representing the lowest recorded result since January (EUR 34,691 million). However, it is worth noting that July was the largest month on record in terms of M&A value since May 2007 (EUR 342,633 million). Volume also weakened over the four weeks, declining 27 per cent month-on-month to 1,659 deals from 2,284 deals in July. Year-on-year volume declined at a slower rate of 7 per cent (August 2015: 1,789 deals). Western Europe deals by volume and value Announced date No of deals Aug-16 1,659 37,724 Total deal value Jul-16 2, ,020 Jun-16 2, ,053 May-16 2,132 78,724 Apr-16 2,265 68,932 Mar-16 2,190 65,922 Feb-16 2,075 98,904 Jan-16 2,196 34,691 Dec-15 2,295 70,363 Nov-15 2, ,881 Oct-15 2,293 58,691 Sep-15 2,327 77,534 Aug-15 1, ,110 Page 1 Bureau van Dijk

3 Western Europe deals by volume and value 250,000 3,000 Deal value 200, , ,000 50,000 2,500 2,000 1,500 1, Aug- 15 Sep- 15 Oct- 15 Nov- 15 Dec- 15 Jan- 16 Feb- 16 M ar- 16 Apr- 16 M ay-16 Jun- 16 Jul- 16 Aug Aggregate deal value Number of deals Page 2 Bureau van Dijk

4 Expanded EU of 28 countries deals by volume and value Announced date No of deals Total deal value Aug-16 1,756 33,805 Jul-16 2, ,562 Jun-16 2,723 96,540 May-16 2,448 74,683 Apr-16 2,590 66,429 Mar-16 2,607 63,020 Feb-16 2,533 55,641 Jan-16 2,640 32,614 Dec-15 2,671 64,109 Nov-15 2, ,907 Oct-15 2,512 50,184 Sep-15 2,604 74,021 Aug-15 1, ,277 Page 3 Bureau van Dijk

5 Pentair agreed to sell valves and controls unit in largest deal Despite the decline in M&A value seven of the top 20 deals by value were worth more than EUR 1,000 million in August and together accounted for 34 per cent of total M&A value (EUR 37,724 million). The largest deal by value targeting Western Europe over the month involved Emerson Electric agreeing to acquire the valves and controls business of Switzerland-based Pentair for EUR 2,789 million. It was closely followed by a EUR 2,700 million capital injection by the Government of Portugal in its Portuguese banking group Caixa Geral de Depositos. While dealmaking was mainly kept within Western Europe, buyers from the US, Japan and China also featured in the top 20 deals by value. UK targets attracted the most M&A in August M&A in August favoured companies based in the UK as 500 deals worth a combined EUR 10,558 million were signed off during the month; however, this represented a month-on-month decline of 17 per cent by volume (July 2016: 599 deals) and 93 per cent by value (July 2016: EUR 162,128 million). Companies based in France were the second most valuable targets with EUR 6,020 million, followed by Switzerland with EUR 4,075 million, though it is worth noting that 68 per cent of this is attributable to the Emerson/Pentair deal. In terms of volume Germany placed second with 281 deals, followed by France (190), Spain (136) and Italy (117). Banks lead the way by value, while machinery equipment, furniture and recycling is most frequently targeted Companies operating in the banking sector notched up the most investment in August with EUR 7,094 million, representing a significant increase on EUR 3,365 million in July. The machinery, equipment, furniture and recycling industry was second by value with EUR 4,212 million, followed by metals and metal products with EUR 3,749 million. In terms of volume the machinery, equipment, furniture and recycling sector led the way with 209 deals. Wholesale and retail trade placed second with 138 deals, followed by chemicals, rubber and plastics (95), publishing and printing (85) and banks (64). Page 4 Bureau van Dijk

6 Top 20 deals by value Deal value Deal type Target Target country Acquiror Acquiror country Deal status 1. 2,789 Acquisition 100% Pentair plc's valves and controls business CH Emerson Electric Company US Pending 2. 2,700 Acquisition Caixa Geral de Depositos SA PT Government of Portugal PT Announced increased to 100% 3. 2,120 Acquisition 100% Fleetmatics Group plc IE Verizon Business International Holdings BV NL Pending 4. 1,771 Capital Increase Standard Chartered plc GB Completed 5. 1,393 Acquisition 100% AstraZeneca plc's small molecule antibiotics business GB Pfizer Inc. US Announced 6. 1,075 Acquisition 100% Control Techniques Ltd; Leroy-Somer SA; among other international assets GB; FR Nidec Corporation JP Announced 7. 1,053 Capital Increase 2% AXA SA FR Employees Announced Minority stake 3% Glencore plc GB Completed Acquisition 100% Associazione Calcio Milan SpA IT Sino-Europe Sports Investment CN Announced Management Changxing Co., Ltd Minority stake 5% Unicredit SpA IT Capital Research & Management Company US Completed Page 5 Bureau van Dijk 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

7 Top 20 deals by value (cont d) Deal value Deal type Target Target country Acquiror Acquiror country Deal status Acquisition 50% Abengoa SA ES DE Shaw & Company LP; The Baupost Group LLC; Oaktree Capital Management LP; Canyon Capital Advisors LLC; Abrams Capital LLC; Elliott Management Corporation; Centerbridge Partners LP; Varde Partners Inc.; Hayfin Capital Management LLP; KKR Credit Advisors (US) LLC IBO 100% Ascendi Costa de Prata - Auto estradas da Costa de Prata SA; Ascendi Beiras Litoral e Alta - Auto Estradas Beiras Litoral e Alta SA; Ascendi Grande Porto, Auto-Estradas do Grande Porto SA; Autovia de los Vinedos SA Concesionaria de la Junta de Comunidades de Castilla-La Mancha; Ascendi Group SGPS SA's motorway concessions operation and maintenance service companies; Ascendi Norte, Auto-Estradas do Norte SA; Ascendi Grande Lisboa, Auto Estradas da Grande Lisboa SA; Ascendi Pinhal Interior, Estradas do Pinhal Interior SA; Ascendi Douro, Estradas do Douro Interior SA PT; PT; PT; ES; PT; PT; PT; PT; PT US; US; US; US; US; US; US; US; GB; US Announced Ardian Infrastructure FR Announced Acquisition 100% BCP Meerwind Luxembourg Sarl LU China Power International Development HK; CN Announced Ltd; China Three Gorges Corporation Minority stake increased Credit Suisse Group AG CH The Capital Group Companies Inc. US Completed from 3% to 5% Acquisition increased from 24% Poundland Group plc GB Steinhoff Europe AG AT Pending to 100% bid 2 - Increased bid Acquisition 100% Unicredit Business Integrated Solutions SCpA's emoney processing IT; DE; AT SIA SpA IT Announced activities in Italy; Unicredit Business Integrated Solutions SCpA's emoney processing activities in Germany; Unicredit Business Integrated Solutions SCpA's emoney processing activities in Austria Acquisition 100% Acorn Care & Education Ltd GB SSCP Spring Bidco Ltd GB Completed Acquisition 100% BASF Coatings GmbH's industrial coatings business DE Akzo Nobel NV NL Pending Acquisition 100% Haldex AB SE ZF International BV NL Announced Minority stake increased from 5% to 7% Kering SA FR The Capital Group Companies Inc. US Completed Page 6 Bureau van Dijk 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

8 Top 20 private equity deals by value Deal value Deal type Target Target country Equity provider Deal status Acquisition 50% Abengoa SA ES Oaktree Capital Management LP; Canyon Capital Advisors LLC; Abrams Capital LLC; Centerbridge Partners LP IBO 100% Ascendi Costa de Prata - Auto estradas da Costa de Prata SA; Ascendi Beiras Litoral e Alta - Auto Estradas Beiras Litoral e Alta SA; Ascendi Grande Porto, Auto-Estradas do Grande Porto SA; Autovia de los Vinedos SA Concesionaria de la Junta de Comunidades de Castilla-La Mancha; Ascendi Group SGPS SA's motorway concessions operation and maintenance service companies; Ascendi Norte, Auto-Estradas do Norte SA; Ascendi Grande Lisboa, Auto Estradas da Grande Lisboa SA; Ascendi Pinhal Interior, Estradas do Pinhal Interior SA; Ascendi Douro, Estradas do Douro Interior SA PT; PT; PT; ES; PT; PT; PT; PT; PT Ardian France IBO 100% United Initiators GmbH & Co.KG DE Equistone Partners Europe Ltd Pending Announced Announced IBO 100% Sirti SpA IT KKR & Co LP Completed IBO 100% Roompot Recreatie Beheer BV NL PAI Partners SAS Announced Minority stake Roofoods Ltd GB General Catalyst Group Management LLC; Bridgepoint Advisers Completed Ltd; Digital Sky Technologies; Greenoaks Capital Management LLC IBO 100% Axion Infraestructuras de Telecomunicaciones SA ES AMP Capital Investors Ltd Announced MBO 100% ByBox Holdings Ltd GB Lloyds Development Capital (Holdings) Ltd Completed Minority stake Cambridge Innovation Capital plc GB ARM Holdings plc; Lansdowne Partners Limited Partnership; IP Group Completed plc; Woodford Investment Management LLP; Winton Ventures Ltd IBO majority stake Ltd GB Bridgepoint Development Capital Ltd Completed Page 7 Bureau van Dijk

9 Top 20 private equity deals by value (cont d) Deal value Deal type Target Target country Equity provider Deal status MBO 100% R&M International GmbH DE Deutsche Beteiligungs AG Pending IBO 100% Wavenet Ltd GB Beech Tree PE LLP Completed IBO 52% Farnese Vini Srl IT Neuberger Berman LLC Announced IBO 82% Mobyt SpA IT HgCapital LLP; Mercury Partners Management LLC Announced Minority stake Notonthehighstreet Enterprises Ltd GB Industry Ventures LLC; Eight Roads Services UK Ltd; Index Ventures SA; Hubert Burda Media Holding KG Announced IBO 70% Journey Group plc GB Harwood Capital LLP Pending Minority stake BlackLane GmbH DE b-to-v Partners AG; Daimler Financial Services AG; RI Digital Ventures GmbH; Alstin Family GmbH Completed Minority stake Bynder BV NL Insight Venture Management LLC Completed Minority stake Outfittery GmbH DE Mangrove Capital Partners SA; HV Holtzbrinck Ventures Adviser GmbH; Octopus Ventures Ltd; Northzone Completed Ventures AS; Highland Europe (UK) LLP; U-Start Srl Minority stake Medicrea FR Completed Page 8 Bureau van Dijk

10 PE and VC value declines for second consecutive month In keeping with the overall trend set for Western Europe in August, the value of private equity and venture capital (PE and VC) investment during the month fell 52 per cent to EUR 3,592 million from EUR 7,531 million in July. Year-on-year value declined 36 per cent from EUR 5,643 million in August Volume declined to the lowest recorded result of the last 12 months under review, slipping 36 per cent to 195 deals in August from 316 in July. In a 12-month comparison volume fell 13 per cent (August 2015: 225 deals). The decline by value can be attributed to the lack of high value transactions during the four weeks as no single deal exceeded EUR 1,000 million in August. The largest deal by value involved a consortium, comprising Varde Partners, DE Shaw and Oaktree Capital Management, agreeing to buy a 50 per cent stake in Spanish energy, water and information technology engineering service provider Abengoa for EUR 655 million. This was closely followed by Ardian Infrastructure acquiring various Ascendi Group-owned assets for EUR 653 million. Private equity deals by volume and value Announced date No of deals Aug ,592 Jul ,531 Jun ,869 May ,545 Apr ,614 Mar ,704 Feb ,920 Jan ,366 Dec ,412 Nov ,935 Oct ,172 Sep ,676 Aug ,643 Total deal value Page 9 Bureau van Dijk

11 Private equity deals as a percentage of total volume Announced date Private equity volume Total volume Percentage Aug , Jul , Aug , Private equity deals as a percentage of total value Announced date Private equity value Total volume Percentage Aug-16 3,592 37, Jul-16 7, ,020 3 Aug-15 5, ,053 6 Page 10 Bureau van Dijk

12 Private equity deals by volume and value Deal value 30,000 25,000 20,000 15,000 10,000 5, Aug- 15 Sep- 15 Oct- 15 Nov- 15 Dec- 15 Jan- 16 Feb- 16 M ar- 16 Apr- 16 M ay-16 Jun- 16 Jul- 16 Aug Aggregate deal value Number of deals Page 11 Bureau van Dijk

13 Deal types by volume in August Deal types by volume Minority stake Acquisition Capital increase IBO M BO M erger M BI Deal type Aug-15 Jul-16 Aug-16 Minority stake 912 1, Acquisition Capital increase IBO MBO Merger MBI Deal types by value in August Deal types by value Acquisition Deal type Aug-15 Jul-16 Aug-16 Minority stake Capital increase IBO Acquisition 109, ,992 19,265 Minority stake 23,151 29,533 11,507 Capital increase 3,203 6,343 4,748 IBO 4,641 3,939 2,037 MBO M BO Page 12 Bureau van Dijk

14 Target sector by volume Target sector by value Target sector Aug-15 Jul-16 Aug-16 Target sector Aug-15 Jul-16 Aug-16 Other services Machinery, equipment, furniture, recycling Wholesale & retail trade Chemicals, rubber, plastics Publishing, printing Banks Primary sector Construction Metals & metal products Transport Food, beverages, tobacco Insurance companies Post and telecommunications Hotels & restaurants Gas, Water, electricity Textiles, wearing apparel, leather Education, health Wood, cork, paper Public administration and defence Other services 11,571 18,302 10,484 Banks 13,086 3,365 7,094 Machinery, equipment, furniture, recycling 3,860 39,297 4,212 Metals & metal products 509 1,106 3,749 Chemicals, rubber, plastics 2,601 5,857 3,204 Wholesale & retail trade 7,942 5,017 1,946 Insurance companies 1, ,258 Transport 2,693 3, Food, beverages, tobacco 4, , Gas, water, electricity 1,663 3, Construction 1, Primary sector 2,990 1, Post and telecommunications 85,524 2, Hotels & restaurants 1, Publishing, printing 531 4, Textiles, wearing apparel, leather Wood, cork, paper Education, health 1, Public administration and defence Page 13 Bureau van Dijk

15 Top countries by volume Top countries by value Target country Aug-15 Jul-16 Aug-16 Target country Aug-15 Jul-16 Aug-16 UK Germany France Spain Italy Netherlands Switzerland Sweden Finland Belgium Ireland Austria Turkey Norway Denmark Luxembourg Portugal Malta Cyprus Iceland UK 11, ,128 10,558 France 3,181 8,432 6,020 Switzerland 2,465 7,470 4,075 Italy 31,175 8,379 3,713 Germany 8,513 6,173 3,494 Portugal ,385 Ireland 2, ,410 Netherlands 10,124 11,345 1,968 Spain 4,810 3,975 1,724 Sweden 441 1, Austria Luxembourg 62, Denmark Greece 1,250 2, Cyprus Malta Belgium Iceland Turkey 1, Norway 1,451 1, Finland Gibraltar Page 14 Bureau van Dijk

16 Zephyr Half Year M&A Report 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 Western Europe region covers target companies in Andorra, Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey and the United Kingdom Data refers to target companies based in Western Europe except where specified as expanded EU of 27 countries on page 3 The date range is 01/08/ /08/2016 inclusive