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Second Quarter PE M&A on par with 2015: Thomson Reuters

After a rocky start to the year, private equity GPs got busy on the M&A front in the second quarter.

In fact, Q2 nearly matched last year in the number of U.S. announced private equity deals. There were 174 U.S.-announced LBOs in Q2 valued at $21.73 billion, as of June 29, Thomson Reuters said. That’s just one more than the 173 PE transactions in the year-earlier period, valued at $21.97 billion.

Deal values improved when the data was expanded to the first half of 2016. The number of transactions dropped nearly 2 percent while valuations surged 21 percent, Thomson Reuters figures show. There were 344 U.S.-announced PE deals from Jan. 1 to June 29, valued at $38.88 billion, Thomson Reuters said. That compares with 350 U.S. deals, totaling $30.67 billion, in first-half 2015.

Matt Tool, director of deals intelligence at Thomson Reuters, said the second-quarter results are “on par with Q2 of last year.”

High tech was the second quarter’s busiest sector, producing 34 deals, TR said. The slowest sector was government and agencies, which generated one transaction.

Here’s a list of Q2’s top 5 U.S. announced PE M&A deals, in reverse order, according to Thomson Reuters.

  1. Leonard Green & Partners’ buy of ExamWorks Group Inc placed fifth. Atlanta-based ExamWorks provides medical-examination services for insurers, legal firms and government agencies, Reuters reported. The $1.99 billion deal was announced in April.
  1. Ranking fourth is Stone Canyon’s buy of BWAY, which makes metal and plastic containers for industrial, bulk-food and retail use. Thomson Reuters values the deal, announced in June, at $2.4 billion.
  1. In third place is Thoma Bravo’s acquisition of Qlik Technologies. Qlik’s applications help businesses analyze and visualize data to help save money, Reuters reported. The $2.57 billion transaction was announced in June.
  1. Ninestar Holdings Co’s acquisition of Lexmark placed second. Lexington, Kentucky-based Lexmark provides print, imaging and data solutions. The transaction, announced in April, was valued at $3.6 billion.
  1. Riverstone Holdings’ acquisition of Talen Energy emerged as the quarter’s top PE deal. Riverstone in June said it would buy the remaining stake of the power producer that it didn’t already own. Thomson Reuters values the deal at $4.29 billion.

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