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Zephyr Monthly M&A Report North America, August 2014

Zephyr Monthly M&A Report North America, August 2014

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

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Page 2: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 1 © Zephyr

The following report details mergers and acquisitions activity in North America in August 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 activity stalls in August

There were 1,173 deals worth a combined USD 96,091 million targeting North American companies in August. This represented a decrease of a quarter in volume and 44 per cent in value compared to the 1,580 transactions worth an aggregate USD 171,371 million in July. Year-over-year, results were down but by a narrower margin (August 2013: 1,261 deals worth USD 106,865 million).

The US was the key driver in this decline, as deal value halved from USD 156,898 million last month to USD 78,503 million, while volume fell at the slower rate of 27 per cent to 922 transactions from 1,266 in July. Value was also down by a fifth on the same time a year ago, when USD 99,062 million-worth of deal-making was announced, but volume was roughly comparable to the 965 transactions recorded in August 2013.

In contrast, M&A value targeting Canadian companies actually rose month-on-month and year-over-year: deals worth a total of USD 17,588 million were announced, compared to USD 14,629 million in July and USD 7,803 million 12 months ago, and was almost entirely due to a single transaction worth over USD 10,000 million which actually marked the region’s biggest M&A transaction in August.

North America deals by volume and value

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

Aug-14 1,173 96,091

Jul-14 1,580 171,371

Jun-14 1,493 144,037

May-14 1,465 180,135

Apr-14 1,460 118,091

Mar-14 1,415 85,868

Feb-14 1,299 199,322

Jan-14 1,589 109,871

Dec-13 1,391 133,939

Nov-13 1,253 86,023

Oct-13 1,405 107,740

Sep-13 1,216 212,338

Aug-13 1,261 106,865

Page 3: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 2 © Zephyr

US deals by volume and value

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

Aug-14 922 78,503

Jul-14 1,266 156,898

Jun-14 1,176 129,965

May-14 1,152 164,255

Apr-14 1,165 105,262

Mar-14 1,117 78,093

Feb-14 1,023 183,592

Jan-14 1,285 101,721

Dec-13 992 123,684

Nov-13 916 72,290

Oct-13 1,072 98,722

Sep-13 919 207,167

Aug-13 965 99,062

Canada deals by volume and value

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

Aug-14 253 17,588

Jul-14 316 14,629

Jun-14 320 16,947

May-14 314 15,881

Apr-14 297 12,869

Mar-14 301 8,635

Feb-14 278 15,698

Jan-14 304 8,150

Dec-13 399 10,326

Nov-13 338 13,733

Oct-13 332 9,018

Sep-13 296 5,171

Aug-13 295 7,803

Page 4: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 3 © Zephyr

North America deals by volume and value

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Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14

Dea

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Aggregate deal value(mil USD) Number of deals

Page 5: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 4 © Zephyr

Canadian deal is number one by value

In an extremely rare occurrence, the highest North American deal by value in August targeted a Canadian company, and, at USD 11,356 million, accounted for 12 per cent of the region’s M&A value for the month. US fast-food giant Burger King Worldwide has made a takeover offer for coffee and doughnut chain Tim Hortons in a deal that would create the world’s third-largest quick-service restaurant group.

The second largest deal by value was Swiss drug maker Roche offering a 38 per cent premium to acquire US cancer and pulmonary diseases treatment maker InterMune in a take-private transaction worth USD 8,300 million.

This was one of four takeovers involving buyers from outside North America, the others being German chipmaker Infineon acquiring US rival International Rectifier for USD 2,851 million, Japanese group Hitachi Metals paying USD 1,300 million for Wisconsin-based iron foundry Waupaca Foundry and Sensata Technologies of the Netherlands purchasing Schrader-Bridgeport International, a US manufacturer of tyre valves and fluid control components, for USD 1,000 million.

Buffett’s Berkshire Hathaway backs Burger King deal

As well as being the region’s highest-valued M&A transaction in August, Burger King’s merger with Tim Hortons was also the largest private equity deal, thanks to USD 3,000 million of committed financing from Berkshire Hathway, the global conglomerate headed by high-profile investor Warren Buffett.

This deal was worth eight-times more than the second largest private equity transaction by value, which was the sale by Bahrain’s Investcorp of Illinois-headquartered plastic container manufacturer Berlin Packaging to Oak Hill Capital for USD 1,430 million.

The region’s sectors favoured by private equity investors in August included oil and gas exploration, machinery and equipment manufacturing, fuel terminals, automotive repair and ecommerce, while the most prolific investor was Warburg Pincus, which backed two of the top 20 private equity deals by value.

Page 6: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 5 © Zephyr

Top 20 deals by value

Deal value (mil USD) Deal type Target Target

country Acquiror Acquiror country Deal status

1. 11,356 Acquisition 100% Tim Hortons Inc. CA Burger King Worldwide Inc. US Pending

2. 8,300 Acquisition 100% InterMune Inc. US Roche Holding AG CH Announced

3. 4,000 Acquisition 100% Griffin-American Healthcare REIT II Inc. US NorthStar Realty Finance Corporation US Pending

4. 3,450 Acquisition 100% Comdata Inc. US FleetCor Technologies Inc. US Pending

5. 3,450 Acquisition 100% EquiPower Resources Corporation US Dynegy Inc. US Pending

6. 2,851 Acquisition 100% International Rectifier Corporation US Infineon Technologies AG DE Pending

7. 2,800 Acquisition 100% Duke Energy Corporation's Midwest commercial generation business

US Dynegy Inc. US Pending

8. 2,470 Acquisition 100% Terra-Gen Power LLC's Alta Wind facility located in Tehachapi, California

US NRG Yield Inc. US Completed

9. 2,412 Acquisition 100% - Bid 2 - Decreased Bid LIN Media LLC US Mercury New Holdco Inc. US Pending

10. 2,150 Acquisition Monster Beverage Corporation; Monster Beverage Corporation's non-energy business

US; US The Coca-Cola Company US Pending

11. 1,800 Acquisition 27% to 100% Classified Ventures LLC US Gannett Company Inc. US Pending

12. 1,500 Acquisition 50% to 100% DeMoulas Super Markets Inc. US Mr Arthur Demoulas; Ms Frances Demoulas; Ms Glorianne Demoulas

Announced

13. 1,430 Institutional buy-out 100% Berlin Packaging LLC US Oak Hill Capital Management Inc. US Announced

14. 1,424 Acquisition 50% The Gabelli Equity Trust Inc. US Announced

15. 1,300 Minority stake Venari Resources LLC US Management; Warburg Pincus LLC; Existing Investors; The Jordan Company LP; Temasek Holdings Pte Ltd; Kelso & Company LP; BlackRock Inc.; GIC Pte Ltd

US; US; SG; US; US; SG

Completed

16. 1,300 Acquisition 100% Siemens AG's hospital IT business US Cerner Corporation US Pending

17. 1,300 Acquisition 100% Waupaca Foundry Holdings Inc. US Hitachi Metals Ltd JP Announced

18. 1,200 IBO 100% SWEPI LP and Shell Gulf of Mexico Inc.'s Haynesville assets US Vine Oil & Gas LP US Pending

19. 1,000 Acquisition 100% Schrader-Bridgeport International Inc. US Sensata Technologies BV NL Pending

20. 1,000 Minority stake 1% Twenty-First Century Fox Inc. US ValueAct Capital Management LP US Completed

Page 7: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 6 © Zephyr

Top 20 private equity deals by value

Deal value (mil USD) Deal type Target Target

country Equity provider Deal status

1. 11,356 Acquisition 100% Tim Hortons Inc. CA Berkshire Hathaway Inc. Pending

2. 1,430 IBO 100% Berlin Packaging LLC US Oak Hill Capital Management Inc. Announced

3. 1,300 Minority stake Venari Resources LLC US Warburg Pincus LLC; The Jordan Company LP; Temasek Holdings Pte Ltd; Kelso & Company LP; BlackRock Inc.; GIC Pte Ltd

Completed

4. 1,200 IBO 100% SWEPI LP and Shell Gulf of Mexico Inc.'s Haynesville assets US Blackstone Capital Partners LP; The Blackstone Group LP Pending

5. 1,000 IBO 100% Ranpak Holdings Inc. US Rhone Capital LLC Pending

6. 845 Minority stake 14% Lululemon Athletica Inc. US Advent International Corporation Announced

7. 618 Minority stake Canadian Non-Operated Resources LP CA Riverstone Holdings LLC; Riverstone Energy Ltd Announced

8. 600 Minority stake Zenith Energy Group LLC US Warburg Pincus LLC Announced

9. 500 IBO 100% ABRA Inc. US Hellman & Friedman LLC Announced

10. 436 IBO 100% International Strategy & Investment Group LLC US Evercore Partners Inc. Pending

11. 383 IBO 100% Pike Corporation US Court Square Capital Partners LP Pending

12. 313 IBO 50% TOMS Shoes Inc. US Bain Capital LLC Announced

13. 300 IBO 100% MRG Holdings Corporation US Brentwood Associates Completed

14. 243 IBO 100% Clean Earth Holdings Inc. US Compass Diversified Holdings Completed

15. 150 Minority stake Lookout Inc. US Index Venture Management SA; Goldman Sachs Group Inc.; T Rowe Price Associates Inc.; Accel Management Company LLC; Wellington Management Company LLP; Morgan Stanley Investment Management Inc.; Khosla Ventures LLC; Bezos Expeditions LLC; Andreessen Horowitz LLC; Mithril Capital Management LLC

Completed

16. 140 Minority stake 7% Nutanix Inc. US Completed

17. 135 Minority stake Pluralsight LLC US Sorenson Capital Partners LP; Insight Venture Partners; ICONIQ Capital LLC Completed

18. 134 Minority stake Juno Therapeutics Inc. US Completed

19. 119 IBO 100% Kforce Healthcare Inc. US Beecken Petty O'Keefe & Company LLC Completed

20. 110 Minority stake 18% Elizabeth Arden Inc. US Rhone Capital LLC Announced

Page 8: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 7 © Zephyr

PE and VC value leaps in August

A total of USD 23,699 million of private equity and venture capital was invested in North American companies in August, an almost three-quarters increase on USD 13,811 million in July and the second-highest result of 2014 so far, despite a 27 per cent month-on-month decrease in volume.

The Burger King deal was largely responsible for the increase, representing almost half of the month’s private equity investment targeting the region. Five transactions each exceeded USD 1,000 million in value and were collectively worth USD 16,286 million, accounting for more than two-thirds of the month’s total private equity investment and outstripping the entire private equity investment recorded in July.

Private equity and venture capital investment targeting US companies faltered in August, dipping 15 per cent from USD 13,551 million in July to USD 11,565 million, but unsurprisingly, in Canada it soared from USD 260 million to USD 12,134 million, the country’s highest result of the last 12 months under review.

North America private equity deals by volume and value

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

Aug-14 418 23,699

Jul-14 576 13,811

Jun-14 475 19,791

May-14 455 17,713

Apr-14 477 16,080

Mar-14 413 27,089

Feb-14 381 20,062

Jan-14 365 15,140

Dec-13 389 14,730

Nov-13 373 13,977

Oct-13 405 14,501

Sep-13 367 12,880

Aug-13 385 46,361

Page 9: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 8 © Zephyr

US private equity deals by volume and value

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

Aug-14 394 11,565

Jul-14 553 13,551

Jun-14 459 19,673

May-14 430 16,974

Apr-14 458 15,896

Mar-14 395 26,358

Feb-14 363 20,015

Jan-14 342 14,636

Dec-13 358 14,078

Nov-13 338 11,165

Oct-13 377 14,327

Sep-13 347 12,811

Aug-13 359 41,694

Canada private equity deals by volume and value

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

Aug-14 24 12,134

Jul-14 23 260

Jun-14 16 118

May-14 25 738

Apr-14 19 185

Mar-14 18 731

Feb-14 18 47

Jan-14 22 503

Dec-13 29 642

Nov-13 35 2,812

Oct-13 28 174

Sep-13 20 69

Aug-13 26 4,667

Page 10: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 9 © Zephyr

North America private equity deals by volume and value

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Aggregate deal value(mil USD) Number of deals

Page 11: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 10 © Zephyr

M&A target sectors by volume

Target sector Aug-13 Jul-14 Aug-14

Other services 749 888 630

Machinery, equipment, furniture, recycling 137 156 99

Publishing, printing 25 78 79

Wholesale & retail trade 60 69 61

Banks 63 76 61

Chemicals, rubber, plastics 47 62 50

Primary sector 28 39 37

Metals & metal products 21 21 31

Education, health 26 47 27

Transport 17 15 19

Food, beverages, tobacco 15 35 19

Gas, water, electricity 13 17 15

Construction 17 22 12

Hotels & restaurants 18 16 10

Insurance companies 6 7 7

Textiles, wearing apparel, leather 3 14 7

Wood, cork, paper 5 7 6

Post and telecommunications 2 3 2

Public administration and defence 0 0 1

M&A target sectors by value

Target sector Aug-13 (mil USD)

Jul-14 (mil USD)

Aug-14 (mil USD)

Other services 29,547 45,716 26,971

Hotels & restaurants 1,109 189 11,982

Chemicals, rubber, plastics 4,842 22,405 11,175

Banks 5,928 9,609 10,239

Gas, water, electricity 11,588 4,596 9,486

Machinery, equipment, furniture, recycling 41,439 14,030 8,252

Primary sector 2,724 3,516 4,686

Wholesale & retail trade 1,700 10,488 4,138

Food, beverages, tobacco 1,914 50,929 2,300

Education, health 50 874 1,756

Metals & metal products 664 2,471 1,603

Textiles, wearing apparel, leather 16 13 1,248

Wood, cork, paper 168 837 1,000

Publishing, printing 532 2,042 957

Transport 2,248 2,196 447

Insurance companies 291 60 295

Construction 1,259 1,341 32

Post and telecommunications 5 3 0

Public administration and defence 0 0 0

Page 12: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

Page 11 © Zephyr

Private equity target sectors by volume

Target sector Aug-13 Jul-14 Aug-14

Other services 273 363 250

Machinery, equipment, furniture, recycling 49 61 48

Publishing, printing 7 39 48

Wholesale & retail trade 13 18 15

Chemicals, rubber, plastics 9 15 12

Education, health 4 19 6

Banks 6 4 6

Metals & metal products 3 6 5

Food, beverages, tobacco 5 13 5

Primary sector 1 4 4

Textiles, wearing apparel, leather 2 7 4

Hotels & restaurants 2 0 3

Construction 7 5 2

Insurance companies 0 0 2

Transport 0 0 2

Wood, cork, paper 0 2 2

Gas, water, electricity 1 3 1

Post and telecommunications 2 2 0

Public administration and defence 0 0 0

Private equity target sectors by value

Target sector Aug-13 (mil USD)

Jul-14 (mil USD)

Aug-14 (mil USD)

Hotels & restaurants 0 0 11,356

Other services 8,934 5,152 5,387

Chemicals, rubber, plastics 1,576 118 1,667

Primary sector 0 1,531 1,300

Textiles, wearing apparel, leather 16 11 1,170

Wood, cork, paper 0 502 1,000

Wholesale & retail trade 512 185 989

Machinery, equipment, furniture, recycling 34,818 2,247 380

Publishing, printing 44 439 228

Banks 121 125 112

Education, health 0 846 39

Transport 0 0 24

Insurance companies 0 0 22

Construction 16 501 16

Metals & metal products 214 13 6

Food, beverages, tobacco 0 18 0

Post and telecommunications 5 3 0

Public administration and defence 0 0 0

Gas, water, electricity 105 1,940 0

Page 13: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

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 Berkshire Hathaway Inc. 1 1 11,356 11,356

2 Warburg Pincus LLC 2 2 1,900 950

3 Oak Hill Capital Management Inc. 1 1 1,430 1,430

4 GIC Pte Ltd 1 1 1,300 1,300

5 The Jordan Company LP 1 1 1,300 1,300

6 BlackRock Inc. 1 1 1,300 1,300

7 Kelso & Company LP 1 1 1,300 1,300

8 Temasek Holdings Pte Ltd 1 1 1,300 1,300

9 The Blackstone Group LP 1 1 1,200 1,200

10 Blackstone Capital Partners LP 1 1 1,200 1,200

11 Rhone Capital LLC 2 2 1,110 555

12 Advent International Corporation 1 1 845 845

13 Riverstone Energy Ltd 1 1 618 618

14 Riverstone Holdings LLC 1 1 618 618

15 Hellman & Friedman LLC 1 1 500 500

16 Evercore Partners Inc. 1 1 436 436

17 Court Square Capital Partners LP 1 1 383 383

18 Bain Capital LLC 1 1 313 313

19 Brentwood Associates 1 1 300 300

20 Wellington Management Company LLP 3 3 275 92

Page 14: Zephyr Monthly M&A Report North America, August 2014

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.

You are free to use any data or commentary from this report in your articles as long as the source is cited as “Zephyr published by BvD”

Contact +44 161 838 9554 Zephyr Editorial: [email protected]

Zephyr Monthly M&A ReportNorth America, August 2014

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 01/08/2014 - 28/08/2014 inclusive