Middle market transactions, like general M&A, dropped in first quarter.
Globally, there were roughly 8,000 middle market mergers in Q1, according to Thomson Reuters. The deals generated $148.8 billion, a 16.8% decrease from the same period in 2011. The top deal came from Crown Castle International which acquired a portfolio of ground lease-related assets from Wireless Capital Partners for about $180 million in cash (plus $320 million in debt).
Thomson Reuters, publisher of peHUB, defines middle market transactions as those deals valued up to $500 million.
The drop in middle market deals isn’t a surprise. A few weeks ago, peHUB reported that there were 2,332 U.S. announced M&A transactions in first quarter, valued at $192.7 billion. This represents a 53% decrease by deal value and a 21.5% slide by the number of deals, Thomson Reuters said
There was one winner in Q1. Houlihan Lokey emerged as the top middle market deal advisor with 28 transactions, Thomson Reuters said. Houlihan Lokey advised in the $245 million sale of TFI Holdings to Heckmann Corp., as well as Schiff Nutrition Group’s $150 million buy of Airborne.
Here are the top three PE-backed middle market M&A deals.
Image credit: M&A concept photo courtesy of ShutterStock
Nuance Communications, in March, agreed to pay $29.50 a share, or $300 million, to acquire Transcend Services. Transcend provides transcription and clinical documentation services to the healthcare industry.
Nuance is backed by Warburg Pincus. In 2009, Warburg paid $175 million for a stake in Nuance.