French buyouts lag behind rest of Europe

Greg Gille
26 July 2010

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The French buyout market lagged behind its neighbours’ in Q2 2010, according to the unquote” Private Equity Barometer. However, the country saw a significant increase in growth capital and early stage deals.

France recorded 12 buyouts between April and June, against 13 during the previous quarter. Moreover, the overall value of the deals decreased from €1.8bn to €1.5bn. The country slumped to fourth place in the European league table, by failing to match a surge in activity witnessed in the DACH and Nordic regions. However, France was still home to the sixth and seventh largest deals of the quarter, with the €500m acquisition of Cerba European Lab by PAI Partners and the €490m buyout of Giannoni France by Carlyle.

Growth capital was more active in France. With 27 investments recorded, up from 23 in the previous quarter, France was the second most active European country, tying with the DACH region. However, France gained an edge in terms of value: the total amount invested rocketed from €119m in Q1 to €278m, leaving Germany behind with a total value of €169m.

The surge in value also applied to early-stage deals, with a jump from €39m to €49m - a feat even more impressive given that the number of investments actually went down from seven to six. A string of life sciences transactions, including the €13.3m round of funding for biospace med, are responsible for the increase. The uptick in value allows France to outperform the more active UK, but Germany retains the upper hand with its vibrant healthcare sector.

For full stats covering all European regions, download the unquote" Private Equity Barometer from our research centre.