Buyouts recently wrapped its Q2 quarterly deal wrap-up, and the consensus, to put it bluntly, was ugly.
Though our data was cut off at June 15, the results showed U.S.-based PE firms had closed 38 percent less control-stake deals in Q2 than in Q1, according to Thomson Reuters. This suggests many firms have spent much of the first half of the year closing out deals they couldn’t get across the finish line in 2010 and replenishing their pipeline, all the while facing stiff competition from strategic buyers and other PE firms. Deal volume is still well below pre-financial crisis levels, too: U.S.-based sponsor deal activity for the first half of the year is down about 73 percent from the first half of 2005, according to our data. For details, see our upcoming issue, to be published July 4.
In the meantime, let’s take a look forward at the ten largest pending deals U.S.-based sponsors struck in Q2. Notable notes: The largest pending deal is smaller than the largest deal closed in Q2–CD&R’s $2.9 billion buyout of Emergency Medical Services Corp.–and far short of the KKR-led $5.3 billion buyout of Del Monte, the largest deal of Q1. Also, KKR has three deals pending in the top 10. Finally, seven of the ten largest targets are based outside of the U.S.
No. 10: HarvourVest Partners LLC Offers To Buy Absolute Private Equity AG
No. 9: KKR Agrees To Buy German Telecom Co
No. 8: Blackstone Offers To Buy Spotless Group Ltd.
No. 7: First Reserve Agrees To Buy METALLUM
No. 6: Cerberus To Buy 64 Hotels
No. 5: Rhone To Carve Out Carbon Biz From German Power Plant Operator
No. 4: Providence Agrees To Take SRA Private
No. 3: KKR Offers To Offers To Buy Taiwanese Chip Maker
No. 2: Berkshire, OMERS, Partner On Husky
No. 1 KKR Agrees To Buy Capsugel
In April, HarbourVest offered to buy the Zurich-based funds of funds investment firm for $751.8 million.
In May, KKR agreed to buy Versatel AG, a Berlin-based telecom and IT services company, for $885 million.
In May, Blackstone proposed to take the Aussie provider of cleaning, laundry and other services for around $887 million. The company’s board, however, rejected the offer.
In April, Energy specialist First Reserve agreed to buy this Swiss provider of raw materials recycler for $958.6 million.
Cerberus Capital Management in May teamed up with Chatham Lodging Trust to buy 64 hotels of Innkeepers USA Trust, a Palm Beach-based real estate investment trust, for $1.125 billion.
Rhone Capital in April agreed to buy the carbon black business of Evonik Industries AG, a German owner/operator of power plants, for around $1.29 billion.
In April, Providence agreed to take SRA International, a provider of computer programming and consulting services, private for $1.687 billion.
In April, KKR offered to buy Yageo Corp., a Taiwan-based maker of components used in computers, mobile phones, cars and other applications, for $1.69 billion.
In May, Berkshire Partners LLC and OMERS Private Equity Inc. agreed to buy Husky Injection Molding Systems Ltd., an Ontario-based manufacturer of injection molding equipment for the plastics industry, for $2.1 billion.
In April, KKR agreed to buy the manufacturer and wholesaler of drugs from Pfizer Inc. for $2.375 billion.
