Value of PE Deals Jumps 68% in Q3 as U.S. M&A Slows
U.S. announced mergers in third quarter produced somewhat dismal results, while private equity transactions generated a major surprise.
The deal value for PE-backed transactions actually increased during the time period, according to data from Thomson Reuters. It wasn’t just a small bump, but a 68% jump in deal value.
There were 1,810 U.S. announced mergers in third quarter, valued at about $247.1 billion, Thomson Reuters says. Deal value dropped nearly 20% from 2011 when 2,161 transactions in third quarter totaled $206.1 billion.
The biggest M&A transaction, Thomson Reuters says, comes from Kraft, which said in August it planned to split self into two. Since that’s not a typical merger, the next deal in line is Richard Schulze’s $8.3 billion bid for Best Buy Co.
On the private equity side, there were 369 U.S. announced transactions in third quarter, totaling $43.3 billion. This compares to 2011 when 396 mergers were valued at $25.7 billion.
Here’s the top five PE deals, according to Thomson Reuters.
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The quarter’s fifth largest deal comes from Tallgrass Energy Partners.
In August, Tallgrass said it agreed to buy a slew of assets including Kinder Morgan Interstate Gas Transmission Trailblazer Pipeline Co., the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, as well as KMP’s 50 percent interest in the Rockies Express Pipeline. Tallgrass is paying $1.8 billion.
Tallgrass is owned by management, Kelso & Company as well as a limited group of investors led by The Energy & Minerals Group, including Magnetar Capital.
