Slideshow: U.S. M&A Slows While Deal Value Plunges Nearly 67%

Lorises are one of the slowest animals on Earth. But the Slow Loris, pictured, is also venomous like some PE deals.

Things really slowed down this week for deals.

There were 86 U.S. announced transactions valued at $8.3 billion for the week ended Jan. 25, according to data from Thomson Reuters. This compares to last year — the fourth week of January — when we had 101 transactions totaling $24.8 billion. This represents a near 15% drop in the number of transactions, while deal value plunged nearly 67%. These figures aren’t final, however. Thomson Reuters data includes deals without financial terms. Once more information comes to light for those transactions, that data can be added and the numbers will likely change.

The week’s biggest deal comes from Cole Credit Property Trust II which is merging with Spirit Realty Capital. The deal is valued at roughly $3.7 billion, including debt, Thomson Reuters says.

One banker says the weekly data is meaningless. “It’s heavily skewed by one or two large transactions,” says the source adding that he is  “pretty busy.”

On the private equity side, transactions were similarly depressed. There were 14 U.S. announced private equity-backed deals this week, valued at just $20 million. This compares to last year when we had the same number of transactions, 14, which totaled a much bigger $578.1 million, Thomson Reuters says. That’s a 97% drop in value.

Again, Thomson Reuters data includes transactions that don’t have financial terms like Eze Castle. TPG Capital announced its buy of the company and didn’t reveal how much it’s paying. I’m told the Eze Castle sale is valued at $950 million. If added, this would change Thomson Reuters data and the figures wouldn’t seem bad. In fact, deal value would be up from last year.

So here are the top 5 PE deals, according to Thomson Reuters.

Photo courtesy of REUTERS/Morteza Nikoubazl

Related Posts

Leave a Reply

PEHUB Community

Join the 12503 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

Psst! Got any hot tips?

  • This field is for validation purposes and should be left unchanged.

PE HUB News Briefs

RSS Feed Widget

Marketplace

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget