Q3 U.S. PE deal values surge 30 pct: Thomson Reuters

Q3 was busy for the U.S. private equity market, with the number of announced transactions jumping 31 percent while deal values dropped 7 percent.

In the quarter, 423 U.S. PE M&A deals, valued at $25.5 billion, were announced, Thomson Reuters data shows. This compares with 323 transactions valued at $27.5 billion in the year-earlier period.

A similar theme played out in the U.S. M&A market, where deal values fell 3 percent while the number of transaction rose 9 percent. The quarter saw 3,032 U.S. announced mergers, totaling $319 billion, compared with 2,786 M&A deals totaling $328.6 billion a year earlier. The largest U.S. M&A deal was United Technologies’ $30 billion buy of Rockwell Collins.

Globally, PE M&A valuations ballooned nearly 50 percent: 1,090 global PE mergers totaled $97.6 billion in Q3, versus 1,057 deals valued at $65.2 billion a year earlier.

The largest global PE deal was the $17.9 billion protracted sale of Toshiba’s flash-memory business to a group led by Bain Capital. The eight months of negotiations were finally clinched in late September when Toshiba signed the contract to sell the unit. Bain led the buyer’s group with Apple agreeing to provide financing.

Here are the top 5 U.S. PE deals in third quarter, according to Thomson Reuters.

1. Blackstone Group’s $3 billion offer for RLJ Lodging Trust. Blackstone’s offer would’ve ended RLJ’s merger with FelCor. RLJ, however, rejected Blackstone’s $24-a-share offer, press reports said.

2. Apollo Global’s $2.2 billion bid in July for ClubCorp Holdings, a golf-course operator. The deal closed in September.

3. Energy Transfer Partners came in third. In late July, ETP said it would sell a 32.4 percent stake in a firm associated with Rover Pipeline to Blackstone for about $1.57 billion, Reuters said. The 700-mile Rover pipeline is the biggest natural gas pipeline under construction in the U.S., Reuters said.

4. CVC Capital Partners’ $1.4 billion buy of PDC Brands, which provides beauty and personal care products.

5. Centerbridge Partners’ $1.26 billion buy of enterprise-software companies Syncsort and Vision Solutions.

Action Item: Contact Matt Toole, director of deals intelligence at Thomson Reuters, at matthew.toole@thomsonreuters.com

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