Bolt-on numbers surge

The dive in buyout volume has meant a concurrent climb in expansion and development deals, according to data from unquote". The well-publicised plummet in buyout figures should continue in the last quarter, while expansion deals in 2008 should remain approximately the same as in 2007 - pointing to an increase in share of the pie. The other 'winner' from the credit crunch is venture, with investors increasingly attracted to opportunities reliant on hands-on management instead of financial engineering to drive returns.

This month's edition highlights the trend, with just one buyout recorded for the month in Benelux. Most deals were expansion, with acquisition finance undergoing a marked increase. In the last month, AAC Capital Partners backed its portfolio company Baarsma Wine Group Holding in its acquisition of English fine wine merchant Armit. The deal was supported by a senior debt package provided by Rabobank, ING and Friesland Bank. Baarsma, initially bought out by AAC in March 2007, is pursuing a buy-and-build strategy. Armit is its first UK bolt-on, though more are planned. (Page 24)

Also this month in the buy-and-build arena, Carlyle and Kennet Partners supported risk management business FRS Global in the EUR20m acquisition of IRIS. The two companies will merge completely and will offer combined services to financial organisations. Growth in this sector is considered substantial as the financial services segment is subject to increasingly complex regulatory procedures, which call for standardisation of management of operational and financial data. (Page 22)

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