Phillips 66 Boosts Global Deals, while PE-backed M&A Rebounds

One large transaction led the global M&A sector this week.

ConocoPhillips on Tuesday completed the spinoff of its refining, marketing, chemical and transportation arm, Reuters reported. Phillips 66 began trading on the NYSE under the ticker “PSX.” The spinoff was valued at about $20.9 billion, according to Dealogic and Thomson Reuters.

The Phillips 66 spinoff was the week’s top deal and gave mergers a significant bump in deal value. There were 446 global announced transactions for the time period, valued at roughly $68.1 billion, Dealogic said. By comparison, Thomson Reuters reported that there were 344 global announced deals, totaling $56.9 billion.

The number of deals is the lowest so far this year, according to both data providers. Deal value, however, produced different results. The $68 billion ranks this week as the second best — in terms of deal value — for all of this year, according to Dealogic. (Thomson Reuters places the week as the fourth best).

On the private equity side, transactions improved from last week’s dormant state. There were 52 PE-backed global announced transactions, totaling about $6.2 billion. In terms of deal value, the $6.2 billion was the third best week for PE deals, according to Thomson Reuters data.

Here are the top 5 PE deals, according to Thomson Reuters (publisher of peHUB).

Photo courtesy of Shutterstock

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[slide title=”5. Kingfisher Shopping Centre”]

In the U.K., Capital & Regional and Oaktree Capital Management agreed to buy the Kingfisher Shopping Center from Scottish Widows Investment Partnership, according to the Redditch Standard.

The Kingfisher is a “dominant sub-regional mall” with anchor retailers including Debenhams, M&S and Primark, PropertyEU said.

Thomson Reuters values the deal at $210.821 million.

[slide title=”4. Thompson Field”]

Denbury Resources agreed to buy Thomson Field in Texas this week for $360 million.

Thomson Field produces about 2,200 barrels of oil per day and reserves are estimated at about 17 million barrels of oil, Reuters reported.

Denbury, an oil and natural gas company, focuses on developing depleted reservoirs by pumping carbon dioxide to enhance oil recovery, Reuters said. The company is backed by TPG.

[slide title=”3. P.F. Chang’s China Bistro”]

Earlier this week, Centerbridge Partners agreed to buy P.F. Chang’s for $51.50 a share or $1.1 billion. P.F. Chang’s operates two restaurant concepts in the Asian niche. P.F. Chang’s China Bistro is a full service, upscale casual dining restaurant, while Pei Wei is “quick casual” and provides limited service.

The P.F. Chang’s takeover is the week’s third biggest deal, according to Thomson Reuters.

[slide title=”2. Four Seasons Health Care”]

This week’s second largest deal comes from Guy Hand’s PE firm. Terra Firma Capital Partners agreed to buy the British nursing home operator for up to £825 million, or $1.3 billion, according to the New York Times.

Four Seasons is the largest independent health care provider in a 15 billion pound British market, operating 445 care homes, and 61 specialist care centers, Reuters said. The Royal Bank of Scotland owned about 40% of Four Season.

[slide title=”1. Collective Brands”]

The $2 billion breakup of Collective Brands was the week’s top PE deal. Wolverine Worldwide, Blum Capital and Golden Gate Capital agreed to buy Collective for $21.75 a share. Collective is known for footwear brands like Sperry Top-Sider and Keds. It also has retailer Payless ShoeSource, the Los Angeles Times reported.

As part of the deal, Wolverine will end up with  Collective’s Performance + Lifestyle Group, the umbrella company for brands such as Sperry, Keds, Saucony and Stride Rite, the L.A. Times said.

Blum and Golden Gate Blum are jointly buying Payless ShoeSource and Collective Licensing International.

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