A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY MONTHLY M&A INSIDER

Transcription

1 A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY MONTHLY M&A INSIDER MAY 214

2 INSIDE: GLOBAL OVERVIEW LATIN AMERICA NORTH AMERICA ASIA-PACIFIC EUROPE MIDDLE EAST & AFRICA ABOUT MERRILL DATASITE & MERRILL CORPORATION MERRILL CORPORATION CONTACTS Monthly M&A Insider May

3 GLOBAL OVERVIEW Deal values rose in April 214 as certain sectors witnessed an array of mega transactions. In fact, the total value of deals announced during the month reached US$348.2bn, which is double that of April 213 (US$168.3bn). At the same time, the beginning of Q2 214 is slightly behind in terms of the number of transactions at 1,22 compared to 1,11 deals at the same time last year. Leading April numbers were two transactions from the Asia-Pacific s Financial Services and Europe s Construction sectors. Jumbo deals reign Financial Services saw three large transactions from various parts of the world totalling approximately US$49.3bn. In fact, the largest deal during the month was from the Asia-Pacific. In a move that said it will increase its capital base, China-based CITIC Pacific Limited purchased for US$35.6bn a 1% stake in CITIC Limited from CITIC Group Corporation and Beijing CITIC Enterprise Management Co. Two other large-scale financial services deals were announced in April: a US$6.3bn private equity exit involving Madison Dearborn Partners sale of Nuveen Investments to TIAA-CREF and Banco Santader s approximate US$6.5bn acquisition of all of the shares of its Brazilian unit Banco Santander Brasil. Europe s Construction sector also saw Holcim s US$28.3bn purchase of Lafarge in a landmark deal not only for its size but because the combination resulted in the world s biggest cement manufacturer. The deal is also as controversial as it was large because it underwent heavy scrutiny from European antitrust regulators, which required the companies to divest some assets for the merger to push through. During the month, there was a smattering of sectors that contributed to the significant rise in numbers including transactions from Business Services, Energy, Mining and Utilities, Industrial and Chemicals as well as Telecommunications. Sizeable drug deals In contrast to the one-off large-scale deals from various industries, the Pharmaceuticals, Medical and Biotech sector grabbed headlines during the month because of the number and size of M&A deals that came one after the other. In fact, four out of April s 13 deals with values of over US$5bn were from the sector. These transactions, which totalled almost US$35bn, were led by Zimmer Holdings acquisition of Biomet worth approximately US$13.4bn. The combination of the former rivals in orthopedic medical device manufacturing was a way for these medical device companies to remain dominant in a competitive marketplace. Another mega transaction is Novartis AG s US$1.5bn acquisition of the oncology division of GlaxoSmithKline, which was also announced in April. The transaction happened simultaneously with GlaxoSmithKline s purchase of Novartis AG s global vaccines business for US$5.3bn. These deals allow Novartis to focus on its more profitable businesses where it already has a global presence. GSK, on the other hand, is able to significantly expand its vaccine business by using Novartis extensive worldwide network. These transactions come at a time when pharmaceutical companies are rationalising their businesses to focus on core competencies as they deal with increased competition for their products. The slew of large-scale transactions seen in April seems to suggest that that recent industry talk of a return of mega deals might be on the mark. Head of Research: Elias Latsis Editor: Laura Resetar For advertising opportunities contact: Erik Wickman Tel: + (1) erik.wickman@mergermarket.com Global Overview: Karen Sibayan and Demis Memedoski Latin America: Raquel Mozzer and Fabio Lopes North America: Urna Chakraborty and Lana Vilner Asia-Pacific: Brandon Taylor and Hiro Mak Europe: Alan Nasrat and Damien Julliard Middle East & Africa: Silvia Paparello and Andrea Putaturo Monthly M&A Insider May 1

4 TREND GRAPHS GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND 1,4 4, ,2 4, , ,5 3, 2,5 2, 1,5 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND 4, 18, 9 3,5 3,5 16, 8 3, 3, 2,5 2, 1,5 1, 14, 12, 1, 8, 6, 4, ,5 2, 1,5 1, 5 2, YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume GLOBAL OVERVIEW Monthly M&A Insider May 2

5 TREND GRAPHS GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 214 VALUE VOLUME 1.1% 4.2% 22.5% Asia-Pacific Europe North America Middle East & Africa Central & South America 2.2% 3.5% 21.5% Asia-Pacific Europe North America Middle East & Africa Central & South America 35.% 41.6% 3.6% 37.8% GLOBAL M&A SECTOR BREAKDOWN YTD 214 VALUE VOLUME 1.1% 1.1% 1.9%.9%.2% 14.4% 4.2% 5.2% 2.6% 2.9% 1.4% 12.5% 8.1% 1.5% 14.% 1.6% 7.7% 4.8% Industrials & Chemicals Consumer Technology Business Services Energy, Mining & Utilities Financial Services Pharma, Medical & Biotech Leisure Media Transportation Construction Real Estate Telecommunications Agriculture 7.3% 4.2% 8.9% 3.7% 3.1% 3.3% 9.3% 11.4% 19.7% 12.% 13.% Industrials & Chemicals Consumer Technology Business Services Energy, Mining & Utilities Financial Services Pharma, Medical & Biotech Leisure Media Transportation Construction Real Estate Telecommunications Agriculture Defence GLOBAL OVERVIEW Monthly M&A Insider May 3

6 TREND GRAPHS GLOBAL M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME % 4.5% 27.3% 29.9% 29.3% 28.7% 44.% %.5%.4%.5%.4%.4%.9% 1.% 1.1% 1.% 1.% 1.% 3.8% 3.7% 4.7% 4.7% 4.8% 4.5%.7% 1.2% 4.7% Percentage % 19.% 19.5% 15.2% 16.5% 27.5% 26.3% 27.6% 19.4% 2.5% 8.9% 7.9% 9.7% 1.1% 9.7% 14.6% 14.6% 15.1% 14.7% 13.9% 18.9% 27.8% 9.8% 14.8% 15.4% 21.7% 7.7% 11.2% Percentage % 9.1% 3.9% 9.9% 4.5% 4.8% 4.6% 89.3% 89.% 89.2% 4.3% 89.8% 4.7% 88.7% YTD 214* YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m GLOBAL OVERVIEW Return to contents Monthly M&A Insider May 4

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8 A MERGERMARKET M&A REPORT ON LATIN AMERICA Even though the first quarter saw an increase in M&A activity, the first month of the second quarter witnessed a big slow down. During Q1 there were 121 deals valued at US$25.8bn, while in April 214 there were only 28 deals, valued at US$15.4bn. There has to be a 5% increase in deal volume for the rest of the quarter in order to reach the 168 deals announced in Q The Industrial and Chemicals sector announced 29 deals worth US$1.4bn and the Consumer sector registered 19 deals worth US$2.6bn. The deal of the month was in the Financial Services sector, which by April had 12 deals worth US$9.9bn. A total of US$6.5bn came from Banco Santander s voluntary offer to acquire 25% of Banco Santander Brasil. Banco Santander is a Spain based financial services company. The deal is still pending shareholders and regulatory approval and is expected to be completed in October this year. If all minority shareholders accept the offer, Banco Santander will be issuing roughly 665 million shares. The shareholders of Santander Brasil will get.7 shares of Banco Santander for every Brazilian Depositary Receipts, which represents a 2% premium to Santander Brasil s closing price on 28-Apr-14. Advisors on the deal include Goldman Sachs,UBS Investment Bank, Davis Polk & Wardwell and Santander Global Banking and Markets. The weakening market in Brazil has made Santander Brasil shares decrease 4% in the past four and a half years. Britain now contributes as much to Santander s earnings as Brazil about 2%. Santander Brasil has declined more than 4% since 29, when its initial public offering price was at R$23.5, the worst performer in the MSCI Latin America/Financials Index. The most active sector was once again Energy, Mining and Utilities, with 34 deals announced, worth US$22.2bn. The second highest deal in April was in this sector, with MMG South America Management Company Limited s acquisition of a 99.99% stake in Xstrata Las Bambas from Glencore Queensland Limited and Xstrata South America Limited for a cash consideration of US$5.9bn. Brazil has been one of the most active countries in Energy deals. In the year-to-date, Brazil saw eight deals in Q1 and three additional transactions happened in April. From these 11 deals, four of them had targets operating in the alternative energy subsector: Dobreve Energia, Rio Pardo Termoeletrica, Hidroeletrica de Candonga, and CLWP Brasil III. From the same pool, eight transactions were domestic. The upward trend to domestic deals in the Energy sector, especially in Brazil, has been very clear throughout the years. During 211, 65.5% of all Energy deals were domestic transactions (2 transactions). In 212 the number went up to 65.7% (23 transactions) and in 213 increased again to 72.7% (24 deals). The heat in the Energy sector and in domestic deals has kept its steady growth so far, even with Law that was approved on January 213. According to Oliver Hill, Deputy Editor, Latin America and the Caribbean, at Mergermarket, the reform prompted major energy generators like Companhia Energética de Minas Gerais (Cemig) and Companhia Energética de São Paulo (CESP) to give up rather than renew generation concessions expiring between 215 and 217 and accept lower energy tarriffs imposed by the new law. The activity in the sector can be explained by the necessity these companies have to acquire energy assets in Brazil and regionally to compensate for their losses or just to find alternative ways to generate energy at a lower cost. As a result, the expectation is that the Energy sector will continue its upward trend throughout 214. Monthly M&A Insider May 6

9 TOP DEALS TOP 1 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (APR-14) Announced Bidder company Target company Target dominant sector Seller company Exit multiples (x) Bid premia 1-day Revenue EBITDA P/E before Deal value (US$m) 29-Apr-14 Banco Santander SA Banco Santander Brasil SA (25% stake) Financial Services - n/a n/a % 6, Apr-14 MMG South America Management Company Limited Xstrata Las Bambas SA (99.99% stake) Energy, Mining & Utilities Glencore Queensland Limited; and Xstrata South America Limited ,85 4-Apr-14 Empresa de Energia de Bogota SA ESP Transportadora de Gas Internacional SA ESP (31.92% stake) Transportation Citi Venture Capital International Apr-14 Kohlberg Kravis Roberts & Co LP Aceco TI SA Business Services General Atlantic LLC Apr-14 Banco Santander Brasil SA Getnet Tecnologia em Captura e Processamento de Transacoes HUAH SA (88.5% stake) Business Services Apr-14 The Mosaic Company Archer Daniels Midland Company (Fertilizer distribution business in Brazil and Paraguay) Business Services Archer Daniels Midland Company Apr-14 InterGen NV Energia Sierra Juarez (5% stake) Energy, Mining & Utilities Infraestructura Energetica Nova SAB de CV Apr-14 International Paper Company Orsa International Paper Industrials & Embalagens SA (25% stake) Chemicals Jari Celulose SA Apr-14 GAEC Anima Educacao SA Universidade Sao Judas Tadeu Business Services Mesquita family (private investor) Apr-14 Alicorp SA Global Alimentos; and Molinos Saracolca SAC n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 5-May-14 Consumer Source: Mergermarket LATIN AMERICA Monthly M&A Insider May 7

10 TREND GRAPHS LATIN AMERICAN M&A QUARTERLY TREND LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND , Value (US$m) 4, 3,5 3, 2,5 2, ,5 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND , , Value (US$m) 6, 5, 4 3, 2, , YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume LATIN AMERICA Monthly M&A Insider May 8

11 TREND GRAPHS LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 214 VALUE VOLUME 5.% 3.1% 9.% 19.4%.1%.2% 4.2% 23.% Argentina Brazil Chile Colombia Mexico Peru Uruguay Venezuela.7%.7%.7%.7% 13.8% 9.9% 7.9% 7.9%.7%.7% 5.9% 5.7% Argentina Brazil Chile Colombia Costa Rica Dominican Republic Guatemala Mexico Panama Peru Uruguay Venezuela LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 214 VALUE VOLUME 1.% 2.8%.1%.2%.6%.1%.2% 2.9% 24.% 4.5% 6.3% 3.5% 53.7% Energy, Mining & Utilities Industrials & Chemicals Consumer Business Services Financial Services Technology Pharma, Medical & Biotech Leisure Transportation Telecommunications Construction Real Estate Agriculture 2.% 2.% 3.3% 3.9% 4.6% 5.3% 5.9% 7.9% 9.9%.7%.7% 12.5% 22.4% 19.1% Energy, Mining & Utilities Industrials & Chemicals Consumer Business Services Financial Services Technology Pharma, Medical & Biotech Leisure Transportation Media Telecommunications Construction Real Estate Agriculture LATIN AMERICA Monthly M&A Insider May 9

12 TREND GRAPHS LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME % 9.2% 29.3% 39.2% 28.6% 21.9% 14.4% 17.4% 5.1% %.3% 1.2%.8%.3%.9% 2.% 1.2% 1.8% 2.% 1.1%.7% 4.9% 6.8% 6.2% 5.8% 7.% 8.1% 5.3% 5.3% 5.6% 6.5% 6.% 6.7% 7.2% 5.3% 1.3% Percentage % 25.1% 36.6% 19.% 18.2% 28.6% 33.8% 45.8% 1.3% Percentage % 85.8% 86.3% 86.7% 82.% 86.1% 84.2% % 13.6% 9.9% 1.1% 1.3% 7.5% 14.6% 14.8% 9.5% 14.3% 16.3% % 2.4% % 8.% 1.6% YTD 214* YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m LATIN AMERICA Return to contents Monthly M&A Insider May 1

13 A MERGERMARKET M&A REPORT ON NORTH AMERICA April M&A activity in North America ended with 339 deals, worth US$13.2bn. Two transactions over US$1bn in the Pharma, Medical & Biotech and Energy, Mining & Utilities sectors primarily helped boost April s total deal value and this quarter is already poised to overtake Q2 213 s deal value of US$187.6bn if April s M&A activity continues to produce higher value transactions. This quarter s private equity activity started off with 55 buyout deals worth US$12.1bn and 61 exit deals worth US$36.8bn. The Pharma, Medical & Biotech sector took the lead with 151 deals in the year-to-date, collectively valued at US$76.6bn. The top deal for April, Zimmer Holdings s acquisition of Biomet Inc. for US$13.4bn, helped bring the sector s market share to 19% by value. The merger of the companies will position the combined entity as a leader in the musculoskeletal industry and comes on the back of increased consolidation in the sector with industry players looking to set their long term strategies. The Energy, Mining & Utilities sector is the third largest by value with 167 deals worth US$56.6bn. Exelon Corporation s US$12.1bn acquisition of Pepco Holdings and Yamana Gold and Agnico Eagle Mines Limited s US$3.4bn acquisition of Osisko Mining Corporation helped boost the sector s market share to 14% by value. The sector may be seeing increased activity as the year progresses due to a rise in investor confidence. The Telecommunications, Media and Technology sectors have been seeing a flurry of activity with a collective 34 deals worth US$125.8bn. These sectors have been an interesting study for acquisitions as investors are more willing to pay a premium for a target that they believe demonstrates significant growth potential. A large player in the Asian TMT sector, Alibaba Group s US listing offer could value the company at more than US$1bn, making it one of the largest stock listings in history. The company has been ramping up with acquisitions pre-ipo, with three in April alone ranging from US$25m to US$1.2bn. The first quarter has set a positive tone for 214 and with Q2 starting strong with April numbers, North American M&A seems to be back on the rise. The TMT, Pharma, Medical & Biotech, and Energy, Mining & Utilities sectors will be in the spotlight for the upcoming months as the outcome of optimistic predictions in these sectors remain to be seen. Monthly M&A Insider May 11

14 TOP DEALS TOP 1 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (APR-14) Announced Bidder company Target company Target dominant sector 24-Apr-14 Zimmer Holdings Inc Biomet Inc Pharma, Medical & Biotech 3-Apr-14 Exelon Corporation Pepco Holdings Inc Energy, Mining & Utilities Seller company Exit multiples (x) Bid premia 1-day Revenue EBITDA P/E before Deal value (US$m) (loss) - 13, % 12, Apr-14 Teachers Insurance and Nuveen Investments Inc Annuity Association of America-College Retirement Equities Fund Financial Services Madison Dearborn Partners LLC n/a n/a - - 6,25 7-Apr-14 Mallinckrodt Plc Questcor Pharmaceuticals Inc Pharma, Medical & Biotech % 5,546 4-Apr-14 Blackstone Group LP The Gates Corporation Industrials & Chemicals Onex Corporation; and Canada Pension Plan Investment Board ,4 22-Apr-14 GlaxoSmithKline Plc Novartis AG (Global vaccines business) Pharma, Medical & Biotech Novartis AG ,25 15-Apr-14 Zebra Technologies Corporation Motorola Solutions Inc (Enterprise division) Technology Motorola Solutions Inc ,45 16-Apr-14 Yamana Gold Inc; and Agnico Eagle Mines Limited Osisko Mining Corporation Energy, Mining & Utilities (loss) (loss) 11.2% 3,41 9-Apr-14 Mars Incorporated Procter & Gamble Company (Iams, Eukanuba, and Natura pet-food brands) Consumer Procter & Gamble Company ,9 17-Apr-14 Post Holdings Inc Michael Foods Inc Consumer Thomas H. Lee Partners LP; and GS Capital Partners n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 5-May ,45 Source: Mergermarket NORTH AMERICA Monthly M&A Insider May 12

15 TREND GRAPHS NORTH AMERICAN M&A QUARTERLY TREND NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND 6 1, ,4 1,2 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND 1,8 6, 5 1,2 1,6 1,4 5, , 1,2 1, 8 4, 3, , , YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume NORTH AMERICA Monthly M&A Insider May 13

16 TREND GRAPHS NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 214 VALUE.7% 1.% 1.3%.9% 6.3% 17.9% 19.%.6%.1% 9.7% 12.1% 12.% 4.3% 14.% Industrials & Chemicals Technology Business Services Energy, Mining & Utilities Consumer Pharma, Medical & Biotech Financial Services Leisure Media Construction Transportation Telecommunications Real Estate Agriculture VOLUME 9.7% 9.2% 3.1% 3.3% 9.8%.7%.8% 1.9% 2.2% 1.7%.6%.3% 19.1% 12.8% 15.6% Industrials & Chemicals Technology Business Services Energy, Mining & Utilities Consumer Pharma, Medical & Biotech Financial Services Leisure Media Construction Transportation Telecommunications Real Estate Agriculture Defence NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME Percentage % 37.2% 32.3% 49.1% 58.7% 17.9% 21.3% 21.2% 13.9% 13.3% 27.7% 17.4% 2.8% 27.5% 13.2% 7.3% 9.8% 5.5% 9.% 8.2% 12.3% 9.3% 12.8% 11.8% 1.7% % 15.% 24.% 7.3% 1.4% % 14.7% 24.7% 6.9% 9.2% YTD 214* Percentage %.7%.6%.7%.5%.7%.7%.9% 1.% 1.1% 1.4% 1.4% 1.% 1.3% 3.7% 3.4% 5.5% 4.9% 6.% 5.4% 6.% 4.2% 3.8% 5.2% 5.4% 4.5% 5.% 5.1% 9.5% 91.1% 87.6% 87.6% 87.1% 88.4% 86.9% YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m NORTH AMERICA Return to contents Monthly M&A Insider May 14

17 A MERGERMARKET M&A REPORT ON ASIA-PACIFIC M&A activity for April yielded 235 deals worth US$95.3bn, a 1% decrease by volume but a 38% increase in value from March figures. Of these transactions, PE buyouts produced 2 deals worth US$8.7bn, a 15% decrease in volume and a 34% decrease in value from the previous month. Highlighting deal activity for the month was the US$37bn merger of CITIC Group and its Hong-Kong-listed subsidiary CITIC Pacific, a deal that has helped make 214 a record year for M&A in the region. Standout sectors Asia s Industrials & Chemicals sector saw the bulk of deal activity (21% of volume), driven by a number of industry consolidations in China, followed by TMT (19%). Tech M&A has recently seen a number of major tech companies set their sights on small and mid-cap startups in the mobile space to add new hardware and software assets to their portfolios. The Energy, Mining & Utilities and Consumer sectors accounted for 11% of transaction volume each for the month. Energy deals were led by China Petroleum & Chemical Corporation s acquisition of a 5% stake in Caspian Investments Resource, based in Kazakhstan, from Russian Lukoil for US$1.2bn. Highlighting consumer deals was United Kingdom based Diageo s 26% stake acquisition in Indian United Spirits, a transaction valued at US$3.1bn. Alibaba continues M&A forays Chinese ecommerce giant Alibaba, in a continuation of an ongoing M&A buying spree, completed three transactions in April highlighted by the US$1.2bn acquisition of a 24% stake in Youku Tudou, the listed China-based Internet television company. The deal was made in partnership with Yunfeng Capital. The investment will help Alibaba bring new products and services to its customers while strengthening Youku Tudou s balance sheet. Japan PE upbeat on exit, buyout opportunities Cultural shifts and economic changes could be setting the stage for a wave of opportunities involving small to mid-cap exits and buyouts in Japan. A solid pipeline comprising founder-backed exits, renewed inbound acquisition interest, and potential noncore divestitures are all contributing to an uptick in deal flow, according to Mergermarket intelligence. While Abenomics has certainly been recognised as a catalyst for change, the current rise in mid-market deal flow can be attributed to a shift in cultural attitudes and to the rise of a new generation of entrepreneurs. This has been seen in the emergence of a younger generation of founders in their 4s looking to sell their companies. Many may not be looking to pursue an IPO and are instead considering private equity buyers as an exit strategy. According to Mergermarket intelligence, some may consider the timing perfect to exit, given higher benchmark valuations. Alibaba also completed a 2% acquisition of Wasu Media Holdings through Hangzhou Yunxi Investment Partnership for US$1bn, followed by a 72% stake acquisition of navigation provider and digital map application AutoNavi for US$649m. The ecommerce giant has been acquisitive as of late as competition in the Chinese tech space escalates between Alibaba and Tencent Holdings. Each company has turned to M&A to buy potentially useful assets before the other has the opportunity to acquire. The acquisitions also come as Alibaba prepares for a much anticipated public listing in the United States. Monthly M&A Insider May 15

18 TOP DEALS TOP 1 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (APR-14) Announced Bidder company Target company Target dominant sector Seller company Exit multiples (x) Bid premia 1-day Revenue EBITDA P/E before Deal value (US$m) 16-Apr-14 CITIC Pacific Limited CITIC Limited Financial Services CITIC Group Corporation ,49 23-Apr-14 Transurban Group; AustralianSuper Pty Ltd; and Tawreed Investments Ltd Queensland Motorways Pty Limited Business Services QIC Limited , Apr-14 MMG South America Management Company Limited Xstrata Las Bambas SA (99.99% stake) Energy, Mining & Utilities Glencore Queensland Limited; and Xstrata South America Limited ,85 1-Apr-14 Oversea Chinese Banking Corporation Limited Wing Hang Bank Limited Financial Services n/a n/a % 4,953 2-Apr-14 COFCO Corporation Noble Agri Limited (51% stake) Agriculture Noble Group Limited , 7-Apr-14 Sun Pharmaceutical Industries Limited Ranbaxy Laboratories Limited Pharma, Medical & Biotech Daiichi Sankyo Company Limited % 3, Apr-14 Diageo Plc United Spirits Limited (26% stake) 14-Apr-14 CapitaLand Limited CapitaMalls Asia Limited (34.7% stake) Consumer % 3,14 Real Estate % 2,39 9-Apr-14 Woolworths Holdings Ltd David Jones Limited Consumer % 2,1 14-Apr-14 Consortium for Hotel Properties Ltd Hotel Properties Limited (58.1% stake) Leisure ,577 n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 2-May-14 Source: Mergermarket ASIA-PACIFIC Monthly M&A Insider May 16

19 TREND GRAPHS ASIA-PACIFIC M&A QUARTERLY TREND ASIA-PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume ASIA-PACIFIC M&A ANNUAL TREND ASIA-PACIFIC M&A ANNUAL PRIVATE EQUITY TREND 5 3, , 6 3 2, , 1, , YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume ASIA-PACIFIC Monthly M&A Insider May 17

20 TREND GRAPHS ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 214 VALUE VOLUME 1.6% 1.1% 1.6% 3.3% 4.7% 4.9% 5.9% 8.2% 11.1% 44.6% China Australia South Korea Japan Singapore India Papua New Guinea Malaysia Hong Kong Taiwan Other.4% 2.7%.3% 12.9% 4.5% 7.9% 4.9% 8.6% 9.8% 34.7% China Australia South Korea Japan Singapore India Papua New Guinea Malaysia Hong Kong Taiwan Other 13.% 13.1% ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 214 VALUE VOLUME 1.4% 3.1% 5.8% 3.1% 2.7% 4.5% 2.3% 1.7% 3.% 8.3% 25.6% 6.8% 11.8% 1.9% Industrials & Chemicals Technology Consumer Energy, Mining & Utilities Financial Services Business Services Leisure Pharma, Medical & Biotech Transportation Media Real Estate Construction Agriculture Telecommunications 2.5% 3.8% 3.8% 3.9% 5.6% 6.2% 8.3% 9.1% 1.1% 9.7%.7% 2.3% 12.1% 12.9% Industrials & Chemicals Technology Consumer Energy, Mining & Utilities Financial Services Business Services Leisure Pharma, Medical & Biotech Transportation Media Real Estate Construction Agriculture Telecommunications ASIA-PACIFIC Monthly M&A Insider May 18

21 TREND GRAPHS ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME Percentage % 15.7% 22.2% 13.4% 19.9% 2.6% 24.4% 17.% 27.3% 16.6% 13.6% 3.4% 26.2% 29.7% 28.9% 11.7% 17.% 34.2% 33.2% 18.4% 21.8% Percentage %.4%.3%.4%.3%.2%.9% 4.5% 1.% 5.4% 1.5% 4.4%.8% 5.3%.9% 4.7%.8% 5.3% 5.7% 5.3% 5.1% 5.9% 5.5% 5.6%.6% 1.5% 5.1% 6.4% % 11.2% 11.1% 12.% 12.1% 13.5% 9.9% % 87.9% 88.7% 87.6% 88.6% 88.1% 86.4% 1 2.5% 21.5% 22.% 2.3% 21.8% 23.6% 16.7% YTD 214* YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m ASIA-PACIFIC Return to contents Monthly M&A Insider May 19

22 A MERGERMARKET M&A REPORT ON EUROPE In April 214, Europe increased in overall value as transactions totalled US$132.1bn, up 83.3% from US$72.1bn in April 213 though logging a 12.6% decrease in number of deals from 453 to 396. April 213 marks the best month in value since the financial crisis, following the region s record figure of US$197.9bn in April 27. April s high performance marks a positive development as so far this year total value in the region has reached US$39.3bn, reaching 48.2% of last year s value (US$641.1bn), with three quarters of the year remaining. European buyout activity showed a slowdown in April 214 with US$1.5bn worth of deals, representing a 33.4% decrease to the same period in 213 (US$15.7bn). On the other hand, exit activity increased by 8.6% reaching US$18.7bn from US$1.4bn in 213, however the number of deals has decreased from 64 in 213 to 5 in 214. The most active sector in April was Telecommunication with US$54.3bn worth of deals accounting for an 18.2% share of the region. With two of the top ten deals announced in the region in April 214, the sector posted a 6.6% increase on its deal value performance compared to YTD 212 (US$33.8bn), at which time the sector accounted for 16.3% of the dealmaking landscape. The top deal in the sector was Luxembourg-based ALTICE acquisition of France-based SFR SA, for a total consideration of US$23.3bn. With the largest deal in April, Construction followed suit, claiming a 13.8% share of the market as it logged US$41.1bn worth of deals through 214. The figure represents a 1,138.6% increase on the US$3.3bn value logged in the same period 213. The sector s top deal Holcim Ltd acquisition of Lafarge SA, for a total consideration of US$38.8bn will create synergies valued at US$1.9bn and expand Holcim s capabilities to 9 countries around the world. Switzerland (US$55.8bn) and USA (US$51.6bn) were the most active countries by deal value with market shares ranking at 18.7% and 17.3% respectively. The United Kingdom, which was the third most active country in terms of value (US$38.4bn), led the market by share of transaction volume, logging 271 deals (15.7%). Monthly M&A Insider May 2

23 TOP DEALS TOP 1 EUROPEAN ANNOUNCED DEALS OF THE MONTH (APR-14) Announced Bidder company Target company Target dominant sector Seller company Exit multiples (x) Bid premia 1-day Revenue EBITDA P/E before Deal value (US$m) 7-Apr-14 Holcim Ltd Lafarge SA Construction % 28,261 5-Apr-14 ALTICE VII SA SFR SA Telecommunications Vivendi SA , 22-Apr-14 Novartis AG GlaxoSmithKline Plc (Oncology division) Pharma, Medical & Biotech GlaxoSmithKline Plc ,56 22-Apr-14 Eli Lilly and Company Limited Novartis Animal Health Inc Pharma, Medical & Biotech Novartis AG ,916 7-Apr-14 ALTICE VII SA Numericable (34.6% stake) Telecommunications Cinven Limited; and The Carlyle Group 28-Apr-14 Cinven Limited Visma ASA Business Services HgCapital; Montagu Private Equity LLP; and Kohlberg Kravis Roberts & Co LP % 3, , Apr-14 Rolls-Royce Plc Rolls-Royce Power Systems AG (5% stake) Industrial & Chemicals Daimler AG ,43 1-Apr-14 Goldman Sachs; and Koch Equity Development LLC Flint Group (Formed from the merged Flint Ink Corporation and XSYS Print Solutions) Industrial & Chemicals CVC Capital Partners Limited ,2 18-Apr-14 IC Ictas Enerji Yenikoy Yatagan Electrik Uretim ve Ticaret AS; and Kemerkoy Elektrik Uretim Ve Tic AS Energy, Mining & Utilities Government of Turkey ,936 7-Apr-14 Alfa Laval AB Frank Mohn AS Industrial & Chemicals Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 6-May-14 Wimoh AS ,582 Source: Mergermarket EUROPE Monthly M&A Insider May 21

24 TREND GRAPHS EUROPEAN M&A QUARTERLY TREND EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND 6 2, ,8 1,6 1,4 1,2 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND 1,6 8, 35 1,6 1,4 7, 3 1,4 1,2 6, 25 1,2 1, 8 6 5, 4, 3, , , , YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume EUROPE Monthly M&A Insider May 22

25 TREND GRAPHS EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 214 VALUE VOLUME 3.6% 2.8% 3.5% 5.7% 2.2% 1.4% 1.7% 7.5% 2.8% 9.2% 1.6% 18.7% 12.9% 17.3% Switzerland USA UK Luxembourg France Germany CEE Brazil China Denmark Sweden Finland Canada Others 27.4% 1.% 1.9% 4.5% 2.1% 1.2%.1% 7.9% 3.5% 9.3% 12.3% 12.5% 15.7%.5% Switzerland USA UK Luxembourg France Germany CEE Brazil China Denmark Sweden Finland Canada Others EUROPEAN M&A SECTOR BREAKDOWN YTD 214 VALUE VOLUME 1.1%.1%.9% 1.3% 1.7%.2% 18.2% 4.3% 1.2% 5.3% 2.% 13.8% 1.5% 13.3% 8.9% 7.% 5.6% 2.1% 6.7% Industrials & Chemicals Consumer Business Services Technology Financial Services Energy, Mining & Utilities Pharma, Medical & Biotech Construction Transportation Media Leisure Real Estate Telecommunications Agriculture Defence 4.1% 4.2% 4.5% 6.4% 6.5% 8.4% 3.7% 8.9% 12.7% 2.5% 16.% Industrials & Chemicals Consumer Business Services Technology Financial Services Energy, Mining & Utilities Pharma, Medical & Biotech Construction Transportation Media Leisure Real Estate Telecommunications Agriculture Defence EUROPE Monthly M&A Insider May 23

26 TREND GRAPHS EUROPEAN M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME Percentage % 15.% 19.2% 8.4% 13.1% % 26.6% 22.1% 33.6% 33.9% 5.6% 18.7% 2.4% 25.8% 2.7% 18.7% 15.6% 29.1% 28.9% 27.5% 2.9% 25.3% 17.9% 8.5% 9.% 9.8% 9.5% 1.2% 6.6% 16.3% 14.6% 14.3% 12.6% 14.4% 9.3% YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m Percentage %.4%.3%.4%.4%.2%.9%.9%.7%.9%.8%.9%.7%.9% 3.7% 2.7% 3.8% 4.% 3.5% 3.3% 3.2% 2.9% 3.2% 3.2% 3.7% 4.2% 3.6% 3.2% 93.1% 92.4% 92.% 91.1% 91.6% 9.6% 92.% YTD 214* US$-US$25m US$251m-US$5m US$51m-US$2,m US$2,1m-US$5,m >US$5,1m EUROPE Return to contents Monthly M&A Insider May 24

27 A MERGERMARKET M&A REPORT ON THE MIDDLE EAST & AFRICA After a lacklustre first quarter, deal activity in the Middle East and Africa (ME&A) offers a more refreshing picture in April, with total value well ahead of the same period last year (US$4.5bn against US$2.4bn - a 9.5% increase) but volume (25 transactions against 33) was down 24.2%. The average deal size in Q2 14 is already double the average recorded in the first quarter (US$182m against US$9m). The overall trend year-to-date (YTD) is instead on the downside, both in terms of volume (98 vs 112 deals) and value (US$11.1bn vs US$15.1bn), reflecting a more general trajectory on M&A across the world. Deal activity YTD shows an overall rebalancing across sectors, with Telecommunications (TMT) coming up on top in terms of value (US$3.1bn spread on just 5 transactions), followed by Energy, Mining & Utilities (US$2.1bn), Financial Services (US$1.8bn), Technology (US$1.4bn), and Consumer (US$1.1bn). These five sectors together account for 84.9% of deal activity by value in the region, but hold a market share of only 57.1% in terms of number of transactions. The same period last year saw Energy, Mining & Utilities having the lion s share (36%), with 19 transactions worth US$5.4bn. Together with Real Estate, Construction, and Pharma, these four sectors covered almost three-quarters of 213 deal activity by value. A different picture emerges as far as deal counting is concerned: so far this year Consumer leads with 17 transactions, followed by Industrials & Chemicals (14 operations worth only US$21m, which is equivalent to less than 2% of market by value), Financial Services (13), and Energy (11). Last year Industrials & Chemicals, Financial Services and Energy each had 19 deals on record. However, the very nature of the region s deals has to be taken into account when running year-on-year comparisons. Given the average transaction size and the modest contributions on global M&A activity, single high-value operations in the Middle East and Africa can have a substantial impact on sector contributions and significantly skew the overall order. The TMT sector offers a similar case this year: one single high-ticket deal that is responsible for 84% of sector s total contribution - the US$2.65bn acquisition by the Algerian Fonds National d Investissement of a 51% stake in Orascom Telecom Algerie. Because of this operation, Algeria accounts for 24.1% of total transactions by value (top country), but just 2% in terms of volume. In geographical terms, April continues the trend outlined in recent years, with Israel, South Africa and United Arab Emirates covering most of deal activity, both by value and volume. Following an IMF-backed overhaul of national GDP statistics, Nigeria announced in April that it has moved up to become the largest African economy, overtaking South Africa. Compared to last year, Nigeria s deal contribution by value remained the same at around 5%. Other noteworthy operations are the acquisition (US$5m) of National Petroleum Services by a consortium led by Fajr Capital Limited, in the United Arab Emirates; and Growthpoint Properties acquisition of a 34.9% stake in Acucap Properties for US$291m. Both companies are based in South Africa. Private equity activity was negligible, with just two buyouts (against five last year) and a single US$22m exit (against four worth US$1.1bn in 213). As we outlined in the Q1 Insider released last month, TMT was the dominant sector when Mergermarket ran its original report in 213, but the same sector declined to a meagre.7% share by value and 3 deals in total after updating the rankings this year. Last June, Cyprus-based Baskindale dropped its bid to acquire Egyptian telecommunications provider Orascom Telecom, taking out a transaction worth US$6.4bn and prompting a major re-ranking. Monthly M&A Insider May 25

28 TOP DEALS TOP 1 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (APR-14) Announced Bidder company Target company Target dominant sector Seller company Exit multiples (x) Bid premia Deal 1-day value Revenue EBITDA P/E before (US$m) 18-Apr-14 Fonds National d'investissement Orascom Telecom Algerie SPA (51% stake) Telecommunications Global Telecom Holding SAE , Apr-14 A consortium led by Fajr Capital Limited National Petroleum Services Energy, Mining & Utilities Apr-14 Growthpoint Properties Ltd Acucap Properties Ltd (34.9% stake) Real Estate % Apr-14 BNP Paribas Personal Finance RCS Group (Pty) Ltd Financial Services Standard Bank Group Limited; and Foschini Limited Apr-14 Abu Dhabi Islamic Bank Barclays UAE retail assets Financial Services Barclays Plc Apr-14 Growthpoint Properties Ltd Sycom Property Fund (31.5% stake) Financial Services % Apr-14 Holmarcom SA Cie D'assurances Et De Reassurances Atlanta SA (3% stake) Financial Services Caisse de Depot et de Gestion Apr-14 The Cullinan Hotel (Pty) Ltd Garden Court Kings Beach Hotel; Garden Court Eastgate Hotel; Garden Court Hatfield Hotel; StayEasy Eastgate Hotel; and Southern Sun Waterfront Cape Town Hotel Leisure Liberty Group Limited; and Southern Sun Hotels (Pty) Limited Apr-14 Arrowhead Properties Limited Vividend Income Fund Ltd (68.34% stake) Real Estate % 82 6-Apr-14 Avnei Shoham Rotshtein Realestate Ltd (55% stake) Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 6-May-14 Real Estate % 25 Source: Mergermarket MIDDLE EAST & AFRICA Monthly M&A Insider May 26

29 TREND GRAPHS MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND 4, 16 7, 25 35, 3, , 5, 2 Value (US$m) 25, 2, 15, Value (US$m) 4, 3, , 5, 4 2 2, 1, 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Total value Mid-market value Total volume Mid-market volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q * Buyout value Exit value Buyout volume Exit volume MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND YTD 214* YTD 214* Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume MIDDLE EAST & AFRICA Monthly M&A Insider May 27

30 TREND GRAPHS MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 214 VALUE VOLUME 6.7% 24.1%.9% 5.9% 1.2% 2.7%.4%.2% 1.3%.1% 3.5%.3% 5.1% 1.% 16.8% 14.7% 14.9% South Africa Israel United Arab Emirates Kenya Nigeria Saudi Arabia Egypt Algeria Angola Namibia Botswana Mozambique Qatar Morocco Ghana Oman Tunisia MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD % 3.1% 4.1% 5.1% 6.1% 1.% 13.3% 24.5% 2.4% South Africa Israel United Arab Emirates Kenya Nigeria Saudi Arabia Egypt Algeria Angola Namibia Botswana Mozambique Lebanon Tanzania Qatar Morocco Ghana Oman Tunisia Liberia Ethiopia Bahrain Jordan VALUE VOLUME 28.2% 1.5% 7.4%.8% 2.2% 1.1%.2%.1% 12.% 9.6% 1.8% 19.3% 15.8% Consumer Industrials & Chemicals Financial Services Energy, Mining & Utilities Technology Telecommunications Real Estate Leisure Business Services Pharma, Medical & Biotech Transportation Media Agriculture 3.1% 2.% 4.1% 4.1% 5.1% 5.1% 5.1% 5.1% 1.2% 11.2% 17.3% 13.3% 14.3% Consumer Industrials & Chemicals Financial Services Energy, Mining & Utilities Technology Telecommunications Real Estate Leisure Business Services Pharma, Medical & Biotech Transportation Media Agriculture MIDDLE EAST & AFRICA Monthly M&A Insider May 28

31 TREND GRAPHS MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 214 VALUE VOLUME Percentage % 18.9% 53.1% 13.2% 67.8% 59.2% 65.7% 72.5% 44.5% 23.% Percentage % 3.3% 5.9% 5.6% 4.% 7.6% 7.6% 5.6% 6.1% 4.7% 11.5% 13.% 1.3% 11.1% 12.5% 32.4% 36.5% 33.1% 28.6% 29.7% 5.8% 4.3% 9.4% 25.6% 4.1% 7.1% 15.3% 28.6% % 11.4% % 19.2% 12.6% 1.4% 2.9% % 9.6% 13.8% 1.% 13.7% 12.9% 1 9.% 9.% 8.2% 1.5% 6.3% 1.7% 1.6% 1.% 1.3%.9%.8% 1.1% YTD 214* 42.6% % % 46.6% 45.5% % % YTD 214* US$-US$14.9m US$15m-US$1m US$11m-US$25m US$251m-US$5m >US$51m US$-US$14.9m US$15m-US$1m US$11m-US$25m US$251m-US$5m >US$51m MIDDLE EAST & AFRICA Return to contents Monthly M&A Insider May 29

32 Merrill DataSite The No.1 VDR Choice for Dealmakers 3, 7 million VDR projects and pages and counting Project Managers, speaking 27 languages Working with Dealmakers around the world ISO 271 Industry Leading Security About Merrill Corporation Merrill Corporation is a leading provider of outsourced solutions for complex business communication and information management. Founded in 1968 and headquartered in St. Paul, Minnesota, Merrill s services include document and data management, litigation support, language translation services, fulfilment, imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5, people in over 4 domestic and 22 international locations, Merrill Corporation empowers the communications of the world s leading organisations. Merrill DataSite is a division of Merrill Corporation. To find out more, or to arrange a demonstration of our VDR solution, call +44 () , us at info@datasite.com, or visit today.

33 Call Us: +44 () The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 7,, pages of data on over 3, projects. 213 WINNER M&A Advisor Turnaround Awards Information Management Product/Service of the Year Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicated project management team will be assigned to your deal right from the start and then be available 24/7/365 giving you peace of mind that the right person is always on hand to address any issue. Our structured approach to setting up every VDR applies tried and tested practices that make it easy for you to open, manage and maintain your data room, while adding value for all the parties involved in the due diligence process. 213 WINNER 3rd Annual ACG New York Champion s Awards Product/Service of the Year Round-the-clock availability Merrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single source, advanced but easy to use functionality, plus complete cost transparency. Our clients have effectively used our VDRs to enhance the following types of transaction: Mergers, acquisitions and divestitures Private placements Leveraged buyouts Bankruptcy and reorganisation transactions Financing restructuring IPOs and dual track processes 212 WINNER Global M&A Advisor M&A Awards Product/Service of the Year 212 WINNER Acquisitions International UK UK VDR Provider of the Year Ironclad Security Merrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 271, the industry gold-standard for security certification. Certified since 27, we are audited annually, to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You ll have peace of mind knowing your information is being shared only with the people you choose. 211 WINNER M&A Advisor International Awards Product/Service of the Year About Merrill DataSite Merrill DataSite is established as the market-leader for virtual data rooms (VDRs) in Europe and across the world. As first to market, we have many years of experience to bring to your transaction and have had time to develop and refine our technology, leading to a peerless Project Management and systems infrastructure that operates 24/7/365. This is why many thousands of companies trust Merrill DataSite to manage their online due diligence processes. Return to contents

34 MERRILL CORPORATION CONTACTS EXECUTIVE MANAGEMENT Ed Bifulk President Tel: EXECUTIVE SALES Will Brown Regional Director, France Tel: Anna Scott Regional Director, UK Tel: +44 () Chris Beckmann Regional Director, Germany, Switzerland & Poland Tel: Martin Alamri Regional Director, Germany Tel: Jérôme Pottier Regional Director, France Tel: +33 () Hakema El-Hadad Regional Director, France & Northern Africa Tel: +33 () Manuel Bianchi Regional Director, Europe Tel: +44 () Mike Hinchliffe Regional Director, Europe Tel: +44 () Bryan Brighton Regional Director, Europe Tel: +44 () Adam Pang Regional Director, Europe Tel: +44 () Merlin J. Piscitelli Regional Director, Europe Tel: +44 () Mary Walsh Regional Director, Europe Tel: +44 () Jonathan Hughes Account Manager, Europe Tel: +44 () Malcolm Neate Account Manager, Europe Tel: +44 () Alex Gross Regional Director, Eastern Europe & Middle East Tel: Alvaro Ortega Regional Director, Southern Europe Tel: Tel: David Haynes Regional Director, Asia-Pacific Tel: Vincent Lork Regional Director, South East Asia Tel: Patrick Cabrera Regional Director, South East Asia Tel: John Pate Regional Director, Australia & New Zealand Tel: +61 () Manuel Bentosinos Regional Director, Mexico, Columbia & Caribbean Tel: Ana Paula Macêdo Távora de Castro Vice President, South America Tel: Luis Felipe Salles Cunha Regional Director, Brazil Tel: Brian Gilbreath Vice President, Midwest & Latin America Tel: Hank Gregory SVP, Western Canada & Pacific Northwest Tel: Todd Cave Northern California, Pacific Northwest & Western Canada Tel: Ryan MacMillan Regional Director, Canada Tel: Michael Kennedy Regional Director, New England Tel: Ross Whittaker Regional Director, New England Tel: Jon Lenihan Regional Director, Boston Tel: Scott Rediker Regional Director, Mid Atlantic Tel: Forrest R. Doane Regional Director, New York Tel: Bill Polese Regional Director, New York John McElrone Regional Director, New York Tel: Joseph Solano Regional Director, New York Tel: Hillary Pryor Regional Director, New York Tel: Harry Poulos Regional Director, New York Tel: Meiken Castillo Regional Director, New York Tel: Steve Piccone Vice President, New York Tel: BJ Birtz Regional Director, Raleigh Tel: Paul Kleinkauf Regional Director, Southeast Tel: Colin Schopbach Regional Director, Southeast Tel: Michail Sidorov Regional Director, Ohio & Michigan Tel: Scott Haugen Regional Director, Minnesota & Wisconsin Tel: Anthony Crosby Regional Director, Chicago Tel: Mark Plaehn Regional Director, Chicago Tel: Kelly-Leigh Keefe Regional Director, Chicago Tel: Ted Sengpiel Regional Director, Missouri, Kansas, Nebraska & Iowa Tel: Nicholas Renter Regional Director, Texas Tel: Angela Pedersen Account Executive, Greater Texas Region Tel: Andrew Buonincontro Regional Director, Bay Area Tel: Erik Sandie Regional Director, Bay Area Tel: Jay Loyola Regional Director, Bay Area Tel: Dan Phelan Regional Director, Los Angeles Tel: Aleshia Hlivka Account Executive, California Tel: David Yeary Vice President, DataSite Life Sciences Tel: Jon Blue Vice President, Clean Tech Tel: Return to contents Monthly M&A Insider May 32