Zephyr M&A Report North America, November 2013

Zephyr Monthly M&A ReportNorth America, November 2013

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Zephyr is a database of M&A, IPO, private equity and venture capital deals with links to detailed financial information on companies. For more information visit www.zephyrdealdata.com.

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Page 1 © Zephyr

The following report details mergers and acquisitions activity in North America in November 2013 using data from the Zephyr database.

It focuses on deal activity by target company.

Click here to access the raw data in an Excel spreadsheet.

North American M&A value lowest since March

The value of mergers and acquisitions (M&A) targeting companies based in North America during November decreased by a third from October’s result and marked the second consecutive monthly decline.

There were 951 transactions worth a combined USD 69,502 million in the four weeks under review compared to USD 101,766 million the previous month and USD 201,250 million in September, and, by value, it is the lowest result since March when USD 54,185 million was recorded. However, the trend is similar to that seen at the same time last year, when value weakened from USD 116,155 million to USD 83,087 million between October and November 2012.

M&A activity in the US largely dictated results for the entire region: there were 704 transactions worth a total USD 60,001 million in November which in monetary terms was the second decrease in a row (September 2013: USD 195,344 million; October 2013: USD 92,714 million).

However, Canada bucked this trend, with 247 deals worth a collective USD 9,501 million announced during November, a 22 per cent decline by volume but a 5 per cent increase by value month-on-month (October 2013: 316 deals worth USD 9,053 million).

North America deals by volume and value

Announced date No of deals Total deal value (mil USD)

Nov-13 951 69,502

Oct-13 1,275 101,766

Sep-13 1,108 201,250

Aug-13 1,191 97,525

Jul-13 1,269 133,520

Jun-13 1,140 104,000

May-13 1,256 101,920

Apr-13 1,201 74,347

Mar-13 1,146 54,185

Feb-13 1,054 141,833

Jan-13 1,588 75,494

Dec-12 1,584 124,315

Nov-12 1,318 83,087

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US deals by volume and value


Nov-13 704 60,001

Oct-13 958 92,714

Sep-13 825 195,344

Aug-13 900 89,790

Jul-13 958 114,729

Jun-13 879 89,059

May-13 963 96,007

Apr-13 878 67,810

Mar-13 857 47,129

Feb-13 758 133,619

Jan-13 1,261 62,991

Dec-12 1,185 114,096

Nov-12 941 73,538

Canada deals by volume and value


Nov-13 247 9,501

Oct-13 316 9,053

Sep-13 282 5,906

Aug-13 290 7,735

Jul-13 313 18,791

Jun-13 261 14,941

May-13 293 5,896

Apr-13 323 6,537

Mar-13 290 7,061

Feb-13 296 8,214

Jan-13 329 12,605

Dec-12 401 10,233

Nov-12 379 9,549









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North America deals by volume and value

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Oil and gas deals come top

While November lacked the mega-transactions of previous months there were still some high-value deals, with the top two deals by value in November both targeting companies operating in the oil and gas sector.

The highest of these was Devon Energy’s USD 6,000 million purchase of assets from fellow US oil and gas player GeoSouthern Energy in a deal expected to close early in 2014.

Behind this, the number two transaction by value involved LINN Energy making an offer for publicly-listed oil and gas explorer Berry Petroleum worth USD 4,900 million, including assumed debt.

Once again, US-based targets dominated the top 20 deals by value with Canadian companies targeted in only four of these, the highest of which involved Dutch group Koninklijke DSM and JLL Partners teaming to make a USD 1,950 million takeover offer for Ontario-based drug maker Patheon.

Koninklijke was one of a small number of overseas acquirors featuring in the top 20 deals by value in November, with buyers from the UK and Ireland also involved in cross-border M&A.

Chemicals sector M&A value rises in November

The value of dealmaking targeting companies operating in the chemicals, rubber and plastics sector increased by 48 per cent month-on-month from USD 6,495 million in October to USD 10,264 million, its best result since April.

M&A value in the machinery, equipment, furniture and recycling industry put the sector fairly high in the rankings at USD 5,457 million but was lower than the USD 5,860 million recorded the previous month, while just behind this, the value of dealmaking targeting the construction sector leapt from USD 226 million to USD 4,693 million.

In monetary terms, M&A activity in many sectors decreased month-on-month; notable exceptions include wholesale and retail, where value more than doubled, and textiles, wearing apparel and leather, where there was an eight-fold increase from USD 11 million to USD 831 million.

Machinery, equipment, furniture and recycling was one of the most frequently targeted industries, with 98 transactions announced during November, but the result was the third decline in a row for the sector (August: 126; September: 122; October: 118).









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Top 20 deals by value

Deal value (mil USD) Deal type Target Target

country Acquiror Acquiror country Deal status

1. 6,000 Acquisition 100% GeoSouthern Energy Corporation's assets US Devon Energy Corporation US Announced

2. 4,900 Acquisition 100% Bid 2 – Increased offer Berry Petroleum Company US Linn Acquisition Company LLC US Pending

3. 4,200 Acquisition 100% ViroPharma Inc. US Shire plc GB Pending

4. 2,700 Acquisition 100% Weyerhaeuser Real Estate Company US Tri Pointe Homes Inc. US Pending

5. 2,600 Acquisition 100% Santarus Inc. US Salix Pharmaceuticals Ltd US Announced

6. 1,950 IBO 100% Patheon Inc. CA JLL/Delta Patheon Holdings LP US Pending

7. 1,819 Minority stake 9% T-Mobile US Inc. US Announced

8. 1,600 Acquisition 100% Shapell Industries Inc.'s single-family home building business US Toll Brothers Inc. US Pending

9. 1,600 IBO 100% The Brickman Group Ltd LLC US Kohlberg Kravis Roberts & Company LP US Announced

10. 1,535 Acquisition 100% Paladin Labs Inc. CA New Endo IE Pending

11. 1,435 Acquisition 100% Talisman Energy Inc.'s Montney natural-gas producing assets in northern British Columbia

CA Progress Energy Canada Ltd CA Pending

12. 1,250 Minority stake Yahoo! Inc. US Announced

13. 1,165 Acquisition 100% GXS Group Inc. US Open Text Corporation CA Announced

14. 1,000 Minority stake BlackBerry Ltd CA Completed

15. 978 Acquisition 100% Trunkline LNG Company LLC US Energy Transfer Equity LP US Announced

16. 862 IBO 100% Siemens Water Technologies Corporation's municipal, industrial and services water and wastewater treatment operations and assets

US AEA Investors LP US Pending

17. 850 Acquisition 100% Passport Health Communications Inc. US Experian plc GB Completed

18. 800 IBO 100% Tekni-Plex Inc. US American Securities LLC US Announced

19. 775 Minority stake 39% Northern Tier Energy LP US Western Refining Inc. US Completed

20. 761 Minority stake 13% Hologic Inc. US Mr Carl C Icahn Completed









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Top 20 private equity deals by value

Deal value (mil USD) Deal type Target Target

country Equity provider Deal status

1. 1,950 IBO 100% Patheon Inc. CA JLL Partners Inc. Pending

2. 1,600 IBO 100% The Brickman Group Ltd LLC US Kohlberg Kravis Roberts & Company LP Announced

3. 862 IBO 100% Siemens Water Technologies Corporation's municipal, industrial and services water and wastewater treatment operations and assets

US AEA Investors LP Pending

4. 800 IBO 100% Tekni-Plex Inc. US American Securities LLC Announced

5. 670 IBO 100% DSM Pharmaceutical Products Inc. US JLL Partners Inc. Pending

6. 381 IBO 100% Anaren Inc. US Veritas Capital Management LLC Pending

7. 350 Minority stake Silverback Exploration LLC US EnCap Investments LP Completed

8. 264 IBO 87% Anaren Inc. US Vintage Capital Management LLC Announced

9. 205 Minority stake Panther Energy Company LLC US Kayne Anderson Capital Advisors LP Completed

10. 200 IBO 100% Allen-Edmonds Shoe Corporation US Brentwood Associates Completed

11. 160 Minority stake Rimrock Midstream LLC US Energy Capital Partners LLC Completed

12. 141 Minority stake Envision Rx Options Holdings Inc. US Completed

13. 125 IBO 100% Sealed Air Corporation's rigid medical packaging business US Mason Wells Inc. Announced

14. 110 Minority stake Moderna Therapeutics Inc. US Completed

15. 109 IBO 100% Innotrac Corporation US Sterling Capital Ltd Announced

16. 79 Minority stake Quirky Inc. US General Electric Company; Kleiner Perkins Caufield & Byers; RRE Ventures LLC; NVP Associates LLC; Andreessen Horowitz

Completed

17. 58 Minority stake SimpliVity Corporation US Kleiner Perkins Caufield & Byers; Draper Fisher Jurvetson; Accel Management Company LLC; Meritech Capital Partners; Charles River Ventures Inc.; Swisscom Ventures

Completed

18. 57 Minority stake 2% LendingClub Corporation US Coatue Management LLC; Mail.ru Group Ltd Completed

19. 50 Minority stake Kingsoft Office Software Inc. US GGV Management LLC; Morningside Capital; Beijing Shunwei Venture Capital Co., Ltd

Completed

20. 50 Minority stake Redfin Corporation US Completed









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Canadian PE value leaps

The value of private equity and venture capital investment targeting North American companies weakened for the third month in a row to USD 9,791 million (August: 37,149 million; September: USD 12,095 million; October: USD 11,464 million) and was also lower than USD 14,446 million a year ago.

There were also fewer transactions, slipping from 337 in October to 276.

PE investment targeting US companies reflected the regional results, with 257 transactions worth a collective USD 7,787 million recorded, compared to 310 worth USD 11,304 million last month. (September: 296 worth USD 12,026 million).

However, Canada once again differed considerably from this trend, and value hit USD 2,003 million, the country’s second highest level of the last 12 months under review, despite volume slipping 30 per cent from 27 transactions in October to 19.

Almost all of the increase in Canadian PE value was attributable to the Patheon deal, which, at USD 1,950 million, accounted for 97 per cent of the country’s total investment value.

This was one of two North American PE transactions to surpass USD 1,000 million in value during November, the other being Kohlberg Kravis Roberts buying US landscaping and horticultural firm Brickman Group for USD 1,600 million.

North America private equity deals by volume and value


Nov-13 276 9,791

Oct-13 337 11,464

Sep-13 314 12,095

Aug-13 348 37,149

Jul-13 400 7,045

Jun-13 370 5,959

May-13 348 21,757

Apr-13 360 8,092

Mar-13 361 9,588

Feb-13 303 32,032

Jan-13 438 11,499

Dec-12 384 17,142

Nov-12 359 14,446









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US private equity deals by volume and value


Nov-13 257 7,787

Oct-13 310 11,304

Sep-13 296 12,026

Aug-13 326 32,528

Jul-13 365 7,018

Jun-13 348 5,850

May-13 326 21,364

Apr-13 335 7,248

Mar-13 338 9,027

Feb-13 280 31,040

Jan-13 404 11,064

Dec-12 368 16,973

Nov-12 329 14,281

Canada private equity deals by volume and value


Nov-13 19 2,003

Oct-13 27 160

Sep-13 18 69

Aug-13 22 4,622

Jul-13 35 27

Jun-13 22 110

May-13 22 393

Apr-13 25 844

Mar-13 22 561

Feb-13 23 992

Jan-13 34 435

Dec-12 16 170

Nov-12 31 166









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North America private equity deals by volume and value

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M&A target sectors by volume

Target sector Nov-12 Oct-13 Nov-13

Other services 792 760 561

Machinery, equipment, furniture, recycling 118 118 98

Banks 82 90 56

Wholesale & retail trade 57 43 50

Chemicals, rubber, plastics 63 57 32

Education, health 38 35 27

Transport 21 23 20

Metals & metal products 21 17 19

Primary sector 34 38 18

Construction 18 11 15

Gas, water, electricity 20 14 14

Food, beverages, tobacco 16 16 14

Publishing, printing 7 18 14

Hotels & restaurants 10 18 10

Wood, cork, paper 10 3 5

Textiles, wearing apparel, leather 5 2 5

Insurance companies 5 10 3

Post and telecommunications 1 0 1

Public administration and defence 1 0 0

M&A target sectors by value

Target sector Nov-12 (mil USD)

Oct-13 (mil USD)

Nov-13 (mil USD)

Other services 24,776 28,155 34,971

Chemicals, rubber, plastics 8,994 6,945 10,264

Machinery, equipment, furniture, recycling 3,212 5,860 5,457

Construction 1,749 226 4,693

Wholesale & retail trade 5,017 2,306 4,243

Banks 14,932 17,792 3,392

Transport 2,498 10,152 2,793

Primary sector 4,639 13,517 914



Education, health 1,470 2,322 435

Insurance companies 0 1,581 412

Gas, water, electricity 1,992 4,637 315


Metals & metal products 3,241 3,768 145

Food, beverages, tobacco 7,464 1,884 132

Publishing, printing 2,486 976 6











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Private equity target sectors by volume

Target sector Nov-12 Oct-13 Nov-13

Other services 256 246 192

Machinery, equipment, furniture, recycling 41 40 36

Chemicals, rubber, plastics 15 13 12


Publishing, printing 2 4 7

Education, health 5 8 5

Construction 1 2 5

Banks 4 4 4

Transport 3 3 3











Private equity target sectors by value

Target sector Nov-12 (mil USD)

Oct-13 (mil USD)

Nov-13 (mil USD)

Other services 6,764 5,303 4,779

Chemicals, rubber, plastics 1,278 413 3,619

Machinery, equipment, furniture, recycling 276 1,958 920


Transport 300 895 160

Education, health 6 2,302 28

Construction 0 100 26

Banks 1,419 210 17




Publishing, printing 2,402 39 6
















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Top 20 private equity providers

Equity provider Number of deals Number with consideration Total deal value (mil USD) Average deal value (mil USD)

1 JLL Partners Inc. 2 2 2,620 1,310

2 Kohlberg Kravis Roberts & Company LP 1 1 1,600 1,600

3 AEA Investors LP 1 1 862 862

4 American Securities LLC 1 1 800 800

5 Veritas Capital Management LLC 1 1 381 381

6 EnCap Investments LP 1 1 350 350

7 Vintage Capital Management LLC 1 1 264 264

8 Kayne Anderson Capital Advisors LP 2 1 205 205

9 Brentwood Associates 1 1 200 200

10 Kleiner Perkins Caufield & Byers 4 4 165 41

11 Energy Capital Partners LLC 2 1 160 160

12 Andreessen Horowitz 6 4 149 37

13 Accel Management Company LLC 3 3 128 43

14 Mason Wells Inc. 1 1 125 125

15 Sterling Capital Ltd 1 1 109 109

16 RRE Ventures LLC 4 4 101 25

17 Battery Management Corporation 5 5 101 20

18 Lightspeed Venture Partners 4 4 97 24

19 New Enterprise Associates Inc. 4 4 93 23

20 Bain Capital Venture Partners LLC 5 5 90 18









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Notes to editors

Activity is based on the activity of the target company

Deal status is announced within the time period

The sector breakdown uses targets’ activities as defined to be ‘Major Sectors’ by Zephyr

The date range is 01/11/2013 - 26/11/2013 inclusive





Zephyr M&A Report North America, November 2013

Economy & Finance

Transcript of Zephyr M&A Report North America, November 2013