• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deal search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
      • Deals search
      • Exits search
      • Funds search
      • Sponsors search
      • Advisers search
      • LPs search
      • League tables
      • Reports
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
UNQUOTE
  • Benelux

Large-cap deals turbo-boost Benelux buyout market

Large-cap deals turbo-boost Benelux buyout market
Buyout activity reached its second highest level on record in 2018
  • Francesca Veronesi
  • Francesca Veronesi
  • 22 February 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Even setting aside the fourth largest European private equity buyout of all time, large-cap activity in the Benelux region reached a post-crisis peak in 2018. Francesca Veronesi reports

Overall buyout activity in the Benelux region reached its second highest level on record in 2018 in terms of buyout value, with aggregate enterprise value of €28.6bn in the region – compared with 2007's €35bn. On the other hand, at 102 deals announced, volume was just below the previous year's figure of 107.

In 2018, Benelux hosted Europe's fourth largest private equity buyout ever, Carlyle Group's €10.1bn carve-out of the speciality chemicals division of AkzoNobel. However, removing that enormous deal from the figures, aggregate deal value of €18.5bn remains the highest figure seen in the Benelux market since the pre-crisis years. This is mostly due to sustained large-cap activity: in addition to the AkzoNobel deal, there were seven large-cap deals with a combined enterprise value of €11.3bn.

It is tempting to assume the large-cap figures are an anomaly. However, in terms of volume, large-cap activity in 2018 did not differ greatly in comparison with recent years. In the 2015-2017 period, there were an average of 6.6 deals valued at more than €500m per year. In this sense, this year's volume of eight such transactions is not a significant increase.

Asked whether he expects a decrease in large-cap activity, Lennard Keijzer, a partner at De Brauw Blackstone Westbroek, says: "The region hosts a good number of large assets and I would expect more large-cap deals to take place in 2019. No doubt, current volatility on the stock markets makes investors itchy, but the fundamentals are still good for large-cap deals."

In fact, 2019 already appears on track to start with an imposing large-cap buyout, with the Dutch press reporting that several strategic buyers and a couple of private equity houses are eyeing the Netherlands-based Eneco, a natural gas and electricity supplier with an anticipated valuation of around €3-4bn.

Combined value in the mid-market (deals valued at €25-500m) reached €6.5bn – not as high as 2015's €7.6bn, but higher than the figure recorded in both 2016 and 2017, which each posted values of around €5bn. Volume, on the other hand, has remained largely unchanged: the past four years have seen relatively constant activity at around 60 deals per year.

At the lower end of the value scale, the small-cap space saw deal value of €597m in 2018 across 34 transactions, similar to the aggregate figure from 2017. However, both years displayed a stark increase in activity compared with 2015-2016, which averaged €328m across 23 deals.

Monitoring Brexit
Alexandre Neiss heads Benelux debt origination for the corporate and acquisition finance team at Investec. Asked what private professionals investing in Benelux are making of Brexit, he says: "GPs with portfolio companies exposed to the British economy are carefully following the latest developments. Having said that, in terms of debt providers, there is no need to have a licence to lend in the Netherlands, so, at least from that perspective, UK-based debt providers will be covered, even in the case of a no-deal Brexit."

The region is expected to be influenced by Brexit, not least because the UK is a crucial trade partner for Benelux countries. Highlighting the extent of UK trade relations, in December 2017 the port of Rotterdam announced that the UK is its second highest country of origin for volume of goods shipped, behind Russia. It is also fourth in terms of throughput, behind Germany, Belgium and Russia.

On a more positive note, the Benelux region might well find itself welcoming companies leaving the UK after its departure from the EU. This point was publicly discussed in October 2018 in the Netherlands, when the Dutch foreign minister Stef Blok deemed Brexit a "lose-lose situation", but openly conceded there might be some advantages for the Netherlands as a result.

Indeed, in January, EU regulator The European Medicines Agency became one of the first organisations to officially close its London offices and move a reported 900 jobs to Amsterdam. Whether private equity investment will follow the agency's lead will be determined by how the industry responds to disruption. It could conceivably grasp the new opportunities that Brexit might bring.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Benelux
  • Investments
  • Top story
  • Netherlands
  • Belgium
  • Luxembourg
  • Unquote Data
  • Brexit
  • Investec

More on Benelux

Gimv acquires majority stake in Witec
Gimv acquires majority stake in Witec

Belgium-based Gimv set to support Netherlands-headquartered contract design manufacturer’s growth

  • Benelux
  • 26 April 2023
Bencis raises EUR 123m continuation fund for group of Fund IV assets
Bencis raises EUR 123m continuation fund for group of Fund IV assets

Secondary deal was led by Committed Advisors and will provide backing for future growth of four portfolio companies

  • Benelux
  • 30 March 2023
Holland exits Mauritskliniek in sale to PE-backed Corius
Holland exits Mauritskliniek in sale to PE-backed Corius

Sale of Dutch dermatology group comes nine months after regulator blocked sale to Triton's Bergman

  • Benelux
  • 16 September 2022
Unquote Private Equity Podcast: Growth equity's mounting momentum
Unquote Private Equity Podcast: Growth equity's mounting momentum

Bregal Milestoneт€™s Cyrus Shey and HPE Growthт€™s Manfred Krikke discuss investing, operational support and what's next for the industry

  • Benelux
  • 15 August 2022

Latest News

Partners Group to release IMs for Civica sale in mid-September
  • Exits
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions
  • Investments
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • 01 September 2023
Redalpine expands leadership team amid CHF 1bn-plus fundraise
  • Venture
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • 31 August 2023
Change Ventures aims to hold final close for EUR 20m third fund by mid-2024
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Estonia-registered VC could bolster LP base with fresh capital from funds-of-funds or pension funds

  • 31 August 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013