Mega-buyout bonanza: Q2's five largest deals

Greg Gille
27 July 2015

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With the aggregate value of European private-equity-backed buyouts breaking the тЌ40bn mark in Q2, unquote" looks back on the five largest deals inked between April and June

Following a relatively sedate first quarter of 2015, the three months to June have proved that large-cap private equity houses are increasingly keen to deploy the dry powder accumulated in the post-crisis years. According to unquote" data, Europe was home to private-equity-backed buyouts worth an aggregate €40.7bn in Q2 – the highest quarterly figure recorded for more than two years.

The significant number of mega-buyouts announced in the past quarter was the main driver behind this surge – and the five largest deals of Q2 show that most European regions managed to catch the eye of GPs.

Verallia (Apollo) – €2.9bn
One could have expected the UK or perhaps Germany to be home to the largest buyout of the year so far, let alone this past quarter. But it took place in France instead, with Apollo agreeing to buy Verallia, a division of construction group Saint Gobain, for an enterprise value of €2.9bn. The corporate spinout valued the company at around 7.2x EBITDA following a competitive process, which is believed to have also included GPs such as CVC Capital Partners, Ardian and Blackstone.

The deal is expected to complete by the end of 2015 and would be the largest French private equity buyout since the onset of the financial crisis. Click here for more details on this transaction

Douglas Holding (CVC) – €2.8bn est
While narrowly missing out on the largest transaction of the quarter, the German market nevertheless enjoyed a stellar Q2 when looking at the amount of capital deployed in the country. CVC Capital Partners notably acquired German beauty product retailer Douglas from Advent International, putting an end to the company's IPO plans – the transaction came just one week after Douglas announced its intention to float, and reportedly values the retailer at around €2.8bn. Click here for more details on this transaction

New Look (Brait SE) – £1.9bn
Good things come to those who wait? It certainly took a while for Apax and Permira to divest UK clothing retailer New Look: the GPs each invested £100m in the £699m take-private of the business in March 2004, and it was only in May that they sold their majority stake to Brait SE for £780m (£1.9bn EV).

In the meantime, New Look underwent several refinancings and flirted with a return to the public markets, with IPOs touted in both 2010 and earlier this year – the latter attempt could have valued the company at around £2bn. Click here for more details on this transaction

ICBPI (Advent, Bain, Clessidra) – €2.15bn
Even Italy got in on the action in this record Q2, with Advent International, Bain Capital and Clessidra buying banking services provider Instituto Centrale delle Banche Popolari Italiane (ICBPI) in a €2.15bn deal towards the end of June. The private equity consortium entered exclusivity for ICBPI in May, having overcome competition from US firm Hellman & Friedman and two private equity alliances (CVC/Permira and BC/Cinven).

The deal was also particularly noteworthy for coming just months after Italy introduced banking reforms designed to encourage M&A in the sector. Click here for more details on this transaction

Synlab (Cinven) – €1.8bn est
The German secondary buyout market proved particularly active in Q2, with Cinven adding to the list of large-cap deals inked between GPs in the country. At the end of June, the buyout house announced it had acquired a majority stake in Synlab Group, a provider of laboratory analysis for human and veterinary medicine, from BC Partners for €1.8bn.

The deal turned out well for BC, providing the vendor with a 2.7x return over a six-year holding period. As for Cinven, the GP has been on a spending spree in recent weeks: it will look to merge the business with French medical diagnostics laboratory Labco, which it acquired from 3i in a €1.2bn deal in May. Click here for more details on this transaction

Although mega-buyouts do grab headlines, preliminary figures from unquote" data suggest that the ever-crucial mid-market segment was also particularly active in Q2, compared to both the previous quarter and the corresponding period last year. For a complete statistical overview of the European private equity market in the second quarter, look out for the upcoming unquote" Private Equity Barometer, published in association with SL Capital Partners.