Portfolio companies eager for large bolt-ons

While the volume of such deals is on par with Q1 2010, the average value per transaction is significantly higher: the report highlights an average enterprise value of £120m for 15 transactions, as opposed to £41m for 18 transactions in Q1 2010.

"The nascent recovery in deal value shows that buoyance is returning to the buy & build market. After a two-year hiatus, portfolio companies finally feel confident enough to take acquisition risk and dig deep in their pockets to fund bigger deals," commented Silverfleet managing partner Neil MacDougall.

Sizeable bolt-on operations this year include the acquisition of fashion retailer Dress For Less by Privalia – a Spanish online sales club backed by General Atlantic, Highland Capital Partners, Index Ventures and Insight Venture Partners – for €150-200m. A portfolio company of TPG Capital and Credit Suisse Private Equity, Grohe, also grabbed its Chinese rival Joyou for €324m.

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• Topics
• Expansion
• Silverfleet Capital
• Buy-and-build
• Acquisition finance