Europe_Flashwire_Quarterly.pdf

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FactSet.com Copyright © 2015 FactSet Research Systems Inc. All rights reserved. 1

FLASHWIRE EUROPE QUARTERLY

The European Mergers & Acquisitions Market Index

Media Questions/[email protected]

2nd QUARTER 2015

This Issue:

2 EuropeMergerMetrics

3 Europe SectorActivity & Value

4 Europe StrategicBuyer Report

4 Europe PrivateEquity Report

5 Top EuropeAdvisors

6 Top EuropeDealsScoreboard

Europe M&A News and TrendsIn an extension from 1q2015, the European private equitymarket continued its trend and posted increases in both dealspending and deal volume this quarter. Deal volume in theprivate equity market increased by 9% in2q15, recording 594deals compared to 545 deals in 1q15. Private equity spendingincreased by 34.1% with an aggregate deal value of €61.5billion in the current quarter, up from €45.8 billion in the lastquarter. Private equity spending recorded its highest level at€27.5 billion in April 2015 in comparison to the last twelvemonths period.

Overall deal volume in Europe’s largest economies posted amarginal increase of 3.5% in 2q15. The UK market recorded asignificant 10.2% increase in deal making, with 1,144 deals in2q15 compared to 1,038 deals in 1q15. By contrast, Germany

recorded a 7% decrease this quarter with 439 deals, downfrom 472 deals in 1q15. Deal volume in the French marketremained flat in 2q15.

The top five financial advisors through the second quarter of2015 based on deal announcements were: Rothschild, KPMG,Ernst & Young, Goldman Sachs, andPricewaterhouseCoopers. The top five financial advisorsbased on the aggregate transaction value of the deals workedon, were: Goldman Sachs, JPMorgan Chase & Co, MorganStanley, Bank of America Merrill Lynch, and Lazard.

The top five legal advisors through the second quarter of2015 based on deal announcements were: Allen & Overy,Clifford Chance, Linklaters, Jones Day, and Skadden, Arps,Slate, Meagher & Flom. The top five legal advisors, based onthe aggregate transaction value of the deals worked on,were: De Brauw Blackstone Westbroek NV, Allen & Overy,Cravath, Swaine & Moore, Slaughter & May, and StikemanElliott.

In 2q15, M&A deal spending leaped by 121.8% with an aggregate value of € 430.8 billion compared to a mere €194.2 billion in 1q15. M&A deal-making remained flat posting 3,359deals this quarter compared to 3,339 deals in the priorquarter. The sharp rise in deal value reflects mega-dealtrends which took place in 2q15. In April 2015, aggregate dealvalue was recorded at €233.9 billion which is at its peak inthe past 16 months. Overall, deal volume remainedconsistent over the 1,000 deal mark.

Over the past 3 months, the sectors that have seen thebiggest increases in M&A deal activity, relative to the samethree month period one year ago, have been: Finance (425vs. 396), Consumer Services (278 vs. 264), and Retail Trade(152 vs. 138). Of the 21 sectors tracked by FactSet

Mergerstat, only 9 sectors posted relative gains in deal flowthe last three months compared to the same three monthsperiod one year prior.

Over the past 3 months, the sectors that have seen thelargest declines in M&A deal volume, relative to the samethree month period one year ago have been: ProducerManufacturing (224 vs. 258), Consumer Durables (70 vs. 91),and Electric Technology (146 vs. 165). 12 out of the 21sectors tracked by FactSet Mergerstat posted negativerelative losses in deal flow over the last three monthscompared to the same three months one year prior, for acombined loss of 160 deals.

Topping the list of the largest deals announced in 2q15were: Royal Dutch Shell’s record € 74.6 billion scheme ofarrangement for BG Group Plc Ltd; Teva PharmaceuticalIndustries Ltd’s cash and stock offer to acquire Mylan NV for€44.9 billion; Monsanto Co’ s unsolicited offer for SyngentaAG for €42.1 billion; Mylan NV’s offer to acquire Perrigo Plcfor €32.3 billion; and the private equity exit of FreescaleSemiconductor to NXP Semiconductors NV for €14.2 billion incash and stock.

1,062 1,185 1,070 1,171 1,253 912 1,222 1,167 1,152 1,235 1,076 1,097 1,166 1,107 1,030 1,222

€ 57.6

€ 95.0

€ 64.7

€ 97.1

€ 74.8

€ 46.5

€ 78.5

€ 49.7

€ 139.3

€ 79.6

€ 53.6

€ 55.7

€ 84.9

€ 233.9

€ 103.6€ 93.3

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Deal Volume Aggregate Deal Value


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Europe MergerMetrics


2nd Quarter 2015

Merger Stats Number of Deals Agg. Base Equity (€Bil)

12 Months Ended 12 Months Ended AverageP/EDeal Size 30/06/15 30/06/14 Change 30/06/15 30/06/14 Change

€1 Billion + 192 143 34.3% € 402.8 € 505.7 -20.4% 28.0

€500M to €999.9M 145 139 4.3% 71.6 97.5 -26.6% 22.0

€250M to €499.9M 226 212 6.6% 55.7 73.9 -24.6% 26.7

€100M to €249.9M 383 400 -4.3% 42.9 64.1 -33.1% 26.0

€50M to €99.9M 352 312 12.8% 17.9 22.0 -19.0% 28.5

€25M to €49.9M 391 359 8.9% 9.6 13.0 -26.2% 23.6

€10M to €24.9M 525 534 -1.7% 6.4 8.5 -24.3% 20.7

Under €10M 1,388 1,411 -1.6% 3.0 4.3 -31.0% 15.3

Undisclosed 10,037 9,082 10.5% N/A N/A N/A N/A

Total 13,639 12,592 8.3% € 609.9 € 789.1 -22.7% 22.9

M&A at a Glance AVERAGE P/E AVERAGE PREMIUM

DEAL VOLUME BY COUNTRY

21.4x23.5x

22.1x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

2q13 3q13 4q13 1q14 2q14 3q14 4q14 1q15 2q15

37.9%

29.2% 30.5%

0.0%

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25.0%

30.0%

35.0%

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45.0%

50.0%

2q13 3q13 4q13 1q14 2q14 3q14 4q14 1q15 2q15

FactSet Flashwire Europe Quarterly: Senior QA Analyst – Anita Abbas ([email protected] ). Media: Media quotation with source attribution is encouraged. Reporters requestingadditional information or editorial comment should contact Anita Abbas at +1.415.645.9811. Mergerstat gathers its data from sources it considers reliable; however, it does notguarantee the accuracy or completeness of the i nformation provided in this publication . Copyright 2015 FactSet Research Systems Inc. All rights reserved . It is illegal under federalcopyright law to reproduce or redistribute this publication or any portion of its contents without written authorization of the publisher.

499 473

565522

567519 548

593 593

391446 437

486 488 480532

472 439

901

996 1009956

1110 1138 11081038

1144

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Europe Sector Activity & Value


2nd Quarter 2015

SECTOR BY ACTIVITY

Target SectorL3M 06/30/15

Deal CountL3M 06/30/14

Deal Count Difference

Finance 425 396 29Consumer Services 278 264 14

Retail Trade 152 138 14Technology Services 350 339 11Government 8 1 7Process Industries 164 157 7Communications 56 52 4Health Services 76 72 4Distribution Services 185 185 0Miscellaneous 2 4 (2)Commercial Services 446 451 (5)Transportation 119 124 (5)Industrial Services 161 169 (8)Energy Minerals 25 37 (12)Health Technology 75 88 (13)

Non-Energy Minerals 64 77 (13)Utilities 78 91 (13)Consumer Non-Durables 131 146 (15)Electronic Technology 146 165 (19)Consumer Durables 70 91 (21)Producer Manufacturing 224 258 (34)Total 3,235 3,305 (70)

SECTOR BY VALUE

Target SectorL3M 06/30/15

ValueL3M 06/30/14

Value Difference

Energy Minerals €67,557.7 €13,171.6 €54,386.1 Finance 99,047.9 44,920.1 54,127.8Process Industries 62,959.2 12,179.2 50,780.0Electronic Technology 35,948.3 8,564.5 27,383.8Retail Trade 24,764.0 7,183.1 17,580.9Technology Services 28,919.3 16,616.8 12,302.5Utilities 18,169.6 7,229.2 10,940.4Transportation 17,437.5 6,953.1 10,484.4Consumer Services 32,204.1 23,118.0 9,086.1Communications 40,320.3 36,194.6 4,125.7Industrial Services 20,711.7 17,976.3 2,735.5Commercial Services 17,806.8 15,665.6 2,141.2Government - - 0Health Services 5,765.5 5,884.2 (118.7)Miscellaneous 207.1 363.4 (156.4)Consumer Non-Durables 14,502.4 16,223.1 (1,720.8)Distribution Services 8,971.9 12,222.8 (3,251.0)Consumer Durables 8,880.2 13,046.8 (4,166.7)Health Technology 89,277.4 98,779.2 (9,501.8)Non-Energy Minerals 11,320.7 26,110.2 (14,789.5)Producer Manufacturing 20,153.4 40,772.5 (20,619.1)Total €624,924.9 €423,174.4 201,750.5


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Europe Strategic Buyer Report


2nd Quarter 2015

Merger StatsNumber of Deals Agg. Base Equity (€Bil)

12 Months Ended 12 Months Ended AverageP/EDeal Size 30/06/15 30/06/14 Change 30/06/15 30/06/14 Change

€1 Billion + 84 71 18.3% € 425.0 € 222.2 91.3% 31.7

€500M to €999.9M 60 63 -4.8% 41.1 44.3 -7.3% 23.8

€250M to €499.9M 77 77 0.0% 27.1 26.3 3.0% 28.5

€100M to €249.9M 150 136 10.3% 23.8 22.5 5.8% 24.1

€50M to €99.9M 153 127 20.5% 10.7 9.1 17.1% 34.0

€25M to €49.9M 168 152 10.5% 6.0 5.6 6.2% 24.7

€10M to €24.9M 228 215 6.0% 3.8 3.4 10.3% 15.2

Under €10M 579 575 0.7% 1.9 2.0 -5.2% 15.0

Undisclosed 2,087 1,969 6.0% N/A N/A N/A N/A

Total 3,586 3,385 5.9% € 539.4 € 335.5 60.8% 24.3

PUBLIC BUYER INDEX LTM 30/06/15

Europe Private Equity Report

IndicesPE BUYER INDEX LTM 30/06/15

Top Private Equity: YTD 2015

Open Date Value ( €Mil) Fund (Private Equity Sponsor)12-Jun-15 €7 ,559.0 Coller International Partners Fund VII

(Coller Capital Ltd.)

09-Jan-15 4,900.9 Lone Star Real Estate Fund IV(Lone Star Americas Acquisitions LLC)

30-Mar-15 4,616.8 Alinda Infrastructure Fund III(Alinda Capital Partners Ltd.)

06-Mar-15 3,682.7 TA XII Fund(TA Associates Management LP)

03-Apr-15 3,216.2 Cerberus Institutional Partners VI LP(Cerberus Capital Management LP)

13-Jan-15 2,673.7 New Enterprise Associates 15 Fund(New Enterprise Associate LLC)

10-Feb-15 2,649.2 TMA/Pathway Private Equity Fund IV LP(Pathway Capital Management LP)

01-Jan-15 1,550.0 Waterland Private Equity Fund VI(Waterland Private Equity Investments BV)

08-Jun-15 1,338.8 Searchlight Capital Fund II(Searchlight Capital Partners LLC)

06-Feb-15 1,322.2 Castlelake IV LP(Castlelake LP)

GOING PRIVATE INDEX LTM 30/06/15

223 165 222 211 219 229 158 192 195 190 176 228

€ 11.9

€ 4.4€ 4.7

€ 10.0

€ 22.2€ 23.5

€ 16.3

€ 6.6

€ 22.9€ 27.5

€ 12.7

€ 21.2

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333 233 299 280 263 339 217 275 301 260 270 336

€ 38.7

€ 22.2

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€ 30.5

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Top Europe Advisors


2nd Quarter 2015

If you would like to participate in our league table rankings or have questions about league table criteria, please contact [email protected] or:

North America: Tayo Olatoyan E-Mail: [email protected] Tel: +1.212.849.4189

Global Anita AbbasE-Mail: [email protected] Tel: +1.415.645.9811

BASED ON EUROPE ANNOUNCED DEALS - RANKED BY TRANSACTION VALUE: YTD 2015

Financial AdvisorTransaction

Value ( €Mil)*TotalDeals**

1. Goldman Sachs & Co. € 321,287.3 74

2. JPMorgan Chase & Co 263,924.9 68

3. Morgan Stanley 262,658.2 53

4. Bank of America Merrill Lynch 175,849.4 47

5. Lazard 141,166.5 67

6. UBS Group AG 92,850.7 36

7. Deutsche Bank AG 80,873.2 40

8. Barclays Plc 77,521.7 26

9. Robey Warshaw LLP 74,670.9 1

10. Citigroup 68,145.8 45

11. Greenhill & Co., Inc. 62,880.2 10

12. Rothschild 59,334.8 112

13. Credit Suisse 58,054.2 29

14. BNP Paribas SA 28,726.9 26

15. Moelis & Co. 25,075.8 12

16. Macquarie Group 18,565.1 12

17. Ernst & Young Global Ltd. 16,787.4 89

18. HSBC Holdings Plc 16,533.0 19

19. Centerview Partners LLC 13,266.6 6

20. Zaoui & Co. LLP 11,954.6 1

21. RBC Capital Markets 10,862.5 12

22. KPMG International 10,401.2 109

23. Intesa Sanpaolo SpA 10,292.1 13

24. PricewaterhouseCoopers 9,743.8 70

25. UniCredit SpA 9,587.4 17

26. Houlihan Lokey 8,952.6 7

27. William Blair & Co. LLC 8,389.9 13

28. China National Chemical Corp. 8,270.3 2

29. Perella Weinberg Partners Group LP 7,249.5 1

30. Danske Bank A/S 6,991.2 4

31. Deloitte LLP 6,535.1 41

32. Mediobanca SpA 6,532.4 12

33. FEXCO Group 6,517.2 3

34. Davy Corporate Finance Ltd. 6,503.5 3

35. Nomura Securities Co., Ltd. 6,424.1 13

36. Van Lanschot NV 6,094.0 3

37. Evercore Partners, Inc. 5,924.9 14

38. BDT & Co. LLC 5,834.5 1

39. Valuetrust Financial Advisors SE 5,740.2 1

40. LionTree LLC 5,724.6 1

41. PJT Partners LP 5,724.6 1

42. Jefferies LLC 5,167.6 23

43. Cenkos Securities Plc 5,049.0 13

44. Banco Santander SA 4,553.5 3

45. Qatalyst Group LP 4,355.4 2

46. FirstRand Ltd. 4,185.3 3

47. Leerink Partners LLC 4,166.2 2

48. Union Square Advisors LLC 4,156.8 1

49. Oakley Capital Ltd. 3,797.1 5

50. Canaccord Genuity Group, Inc. 3,795.5 19

Legal Advisor Transaction

Value ( €Mil)*Total

Deals**

1. De Brauw Blackstone Westbroek NV € 135,119.8 7

2. Allen & Overy LLP 127,928.4 94

3. Cravath, Swaine & Moore LLP 123,926.1 10

4. Slaughter & May Ltd. 109,339.1 28

5. Stikeman Elliott LLP 107,117.5 19

6. Skadden, Arps, Slate, Meagher & Flom LLP 106,784.4 43

7. Wachtell, Lipton, Rosen & Katz 100,226.2 10

8. Freshfields Bruckhaus Deringer LLP 93,913.5 13

9. Sullivan & Cromwell LLP 93,842.7 19

10. Kirkland & Ellis LLP 62,323.0 28

11. Simpson Thacher & Bartlett LLP 51,084.2 16

12. Linklaters LLP 50,425.4 50

13. Loyens & Loeff NV 45,336.7 4

14. Tulchinsky Stern Marciano Cohen Levitski & Co. 44,916.7 1

15. Clifford Chance LLP 40,626.1 63

16. Davis Polk & Wardwell LLP 35,144.7 21

17. Arthur Cox & Co. 34,415.6 2

18. A&L Goodbody 32,337.6 2

19. Weil, Gotshal & Manges LLP 26,594.3 34

20. Herbert Smith Freehills LLP 26,308.1 34

21. Latham & Watkins LLP 25,871.2 31

22. Fried, Frank, Harris, Shriver & Jacobson LLP 24,983.7 11

23. Cleary Gottlieb Steen & Hamilton LLP 22,879.8 20

24. Wilson Sonsini Goodrich & Rosati 18,741.8 9

25. Blake, Cassels & Graydon LLP 15,568.3 10

26. Paul, Weiss, Rifkind, Wharton & Garrison LLP 15,341.9 11

27. Ropes & Gray LLP 15,083.5 7

28. Pedersoli e Associati 14,463.7 6

29. Brunswick SCP 14,075.6 3

30. Shearman & Sterling LLP 14,039.0 32

31. Roschier 13,306.6 22

32. Debevoise & Plimpton LLP 11,990.1 11

33. Chiomenti Studio Legale 10,270.3 7

34. Hogan Lovells 9,454.0 29

35. Mayer Brown LLP 8,991.1 15

36. Gibson, Dunn & Crutcher LLP 8,906.2 12

37. Lombardi Molinari Segni e Associati 8,348.1 3

38. Jun He Law Offices 8,270.3 2

39. Baker & McKenzie LLP 8,220.6 17

40. Covington & Burling LLP 7,808.2 6

41. Axinn, Veltrop & Harkrider LLP 7,449.1 1

42. King & Wood Mallesons Ltd. 7,288.6 16

43. Matheson Ormsby Prentice 7,249.5 1

44. Proskauer Rose LLP 7,041.2 10

45. Morgan, Lewis & Bockius LLP 6,908.7 2

46. Jones Day LP 6,738.4 50

47. Arthur Cox & Co. (UK) 6,500.0 1

48. Khaitan & Co. LLP 6,416.2 7

49. Ligerion CJSC 6,400.7 1

50. Bredin Prat & Associes 6,205.5 9

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Top Europe Deals Scoreboard


2nd Quarter 2015

Seller (Unit Sold) Buyer Transaction

Financial Advisor Financial Advisor Value**Rank Legal Advisor Legal Advisor (€Mil) Seller Sector

1

BG Group PlcGoldman Sachs & Co.JPMorgan Chase & Co.Morgan StanleyRobey Warshaw LLP

Freshfields Bruckhaus Deringer LLP

Royal Dutch Shell PlcBank of America Merrill Lynch Allen & Overy LLPCravath, Swaine & Moore LLPDe Brauw Blackstone Westbroek NVSlaughter & May Ltd.

€74,670.9 Energy Minerals

2

Mylan NVGoldman Sachs & CoLazard

Stikeman Elliott LLP

Teva Pharmaceutical Ltd.Barclays PlcGreenhill & Co.

De Brauw Blackstone Westbroek NVKirkland & Ellis LLPLoyens & Loeff NVSullivan & Cromwell LLPTulchinsky Stern Marciano Cohen Levitski & Co.

€44,916.7 Health Technology

3

Syngenta AGGoldman Sachs & Co.JPMorgan Chase & CoUBS

Monsanto Co.Morgan Stanley

Wachtell, Lipton, Rosen & Katz

€42,121.3 Process Industries

4

Perrigo Co. PlcJPMorgan Chase & Co.Morgan Stanley

A&L GoodbodyWachtell, Lipton, Rosen & Katz

Mylan NVGoldman Sachs & Co.Lazard

Arthur Cox & Co. Cravath, Swaine & Moore LLPSkadden, Arps, Slate, Meagher & Flom LLPStikeman Elliott LLP

€32,337.6 Health Technology

5

Freescale Semiconductor Ltd.Morgan Stanley

Skadden, Arps, Slate, Meagher & Flom LLP Wilson Sonsini Goodrich & Rosati PC

NXP Semiconductors NVCredit Suisse

De Brauw Blackstone Westbroek NVSimpson Thacher & Bartlett LLP

€14,216.2 Electric Technology

6

Telefónica SA (Telefónica Europe Plc)UBS

Herbert Smith Freehills LLP

Hutchison Whampoa Ltd.

Moelis & Co.Linklaters LLP

€13,371.5 Communications

7

Alcatel-Lucent SABank of America Merrill LynchGoldman Sachs & Co. Morgan StanleyZaoui & Co. LLP

Sullivan & Cromwell LLPWachtell, Lipton, Rosen & Katz

Nokia OyjJPMorgan Chase & Co.

Brunswick SCPRoschierSkadden, Arps, Slate, Meagher & Flom LLPStikeman Elliott LLP

€11,954.6 Electric Technology

8

Delhaize Group SABank of America Merrill LynchDeutsche BankLazard

Cravath, Swaine & Moore LLPFried, Frank, Harris, Shriver & Jacobson LLP

Linklaters LLP

Royal Ahold NVGoldman Sachs & Co.JPMorgan Chase & Co.

Allen & Overy LLP Simpson Thacher & Bartlett LLPSullivan & Cromwell LLP

€10,057.2 Retail Trade

9

Bouygues SA (Bouygues Telecom SA) Altice SA €10,000.0 Communications

10

K+S AG Potash Corp of Saskatchewan, Inc.Deutsche BankMorgan Stanley

€8,373.4 Process Industries

Total Market Value of Top 10 Deals YTD €262,019.3

Documents

Europe_Flashwire_Quarterly.pdf