North American M&A Deal Value Rises Sharply in May
New York, NY (PRWEB) June 03, 2012
After somewhat disappointing figures last month, the value of deals targeting North American companies rose sharply in May, from a rather lackluster USD 57,365 million to a healthy USD 83,081 million, an increase of 45 percent. The result was also roughly comparable to the USD 87,740 million recorded a year ago.
Transaction numbers in the region were also up from 1,063 to 1,096, although volume in May was the second-lowest of the year so far.
Lisa Wright, Zephyr director, said: “The general M&A figures for May are very positive, particularly given the disappointing results last month. The increase in private equity deal-making value is also encouraging, and hopefully this upward trend will continue in the coming months.”
As expected, deal-making in the US was the main factor driving the increase, with 814 deals worth a combined USD 75,353 million, an increase of almost 50 percent on the previous month when USD 50,443 million across 783 transactions were recorded.
That isn’t to say that Canada did not continue this upward trend – the country chalked up 282 deals worth an aggregate USD 7,728 million, a respectable 11.7 percent increase on the previous month. However, this was still the second-lowest figure of the year for the country, and almost half the USD 14,654 million recorded a year ago.
The value of private equity and venture capital investments targeting North American companies continued the positive momentum. Value increased 68 percent, from USD 8,983 million to USD 15,057 million, despite a 3 percent drop in transaction volume, which again signifies that individual deal value increased. The figure was also substantially better than USD 10,337 million recorded in May 2011.
This pattern was very much in evidence in figures from the US, and while Canada also saw a big improvement in deal value for the month under review – from USD 83 million to USD 443 million – the same was not true when compared to the year-ago period, when USD 2,290 million of deal making value was recorded.
Five private equity deals were valued at USD 1,000 million or more, the highest among these the USD 2,000 million acquisition of footwear group Collective Brands by Wolverine World Wide, Blum Capital and Golden Gate Capital. The highest-value deal involving a Canadian company was the purchase of a minority stake in oil and gas business Seven Generations Energy by Canada Pension Plan Investment Board, which was worth USD 195 million.
For other full M&A Reports from Zephyr, (including Western Europe May 2012, Middle East May 2012, weekly, quarterly, semi-annual and annual reports with regional and global focus) please visit http://www.mandaportal.com
Zephyr is an information solution containing M&A, IPO and venture capital deals and rumors with links to detailed financial company information. Zephyr covers various deal types including M&A activity, IPOs, joint ventures and private equity deals. Zephyr is published by Bureau van Dijk (BvD). The deals on Zephyr are linked to the company financials and peer reports on BvD's product range, which includes Orbis, Amadeus and Fame, for company valuation and benchmarking.
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