Worldwide M&A increased 40% to $1.4 trillion for global announced transactions, according to data from Thomson Reuters.
Surprisingly, second quarter’s results showed a slow down. Second quarter announced M&A dropped 22% to $611 billion from Q1’s $791 billion, Thomson Reuters said.
Buyouts were more positive. Globally, PE-backed M&A hit $112.2 billion during the first half of this year, a 40% boost from the same time period in 2010. U.S. targets accounted for 41% of first half activity, Thomson Reuters said.
There’s been a lot of talk about when large LBOs will return. We have yet to see a $10 billion-plus deal hit the market. We did get close, though (you have to look at the list to find out).
So what was were the largest buyouts this year? Here’s a ranking of the top 10 PE-backed transactions so far in 2011, according to Thomson Reuters.
[slide title=”No. 10: Warburg Merges Two Portoflio Companies”]
The smallest deal in our Top 10 comes from Warburg Pincus. Earlier this month, Laredo Petroleum said it would buy Broad Oak Energy in a deal valued at $1 billion. The hook? Both companies are backed by Warburg. Both are exploration and production companies. Laredo is based in Tulsa, Okla. while Broad Oak is in Dallas.
[slide title=”No. 9: Cerberus Backs Jackson Health Bid “]
Cerberus first deal on this list is a hospital transaction. In February, Cerberus backed Steward Healthcare’s $1.1 billion offer to buy Miami’s Jackson Health System. Jackson Health serves the uninsured and is one of the 14 hospital systems that make up that Florida’s safety net system, according to the Florida Independent.
[slide title=”No. 8: Cerberus Buys Innskeeper”]
The second deal for Cerberus is in the hotel industry. Last month, Cerberus and Chatham Lodging Trust placed the winning bid to buy 64 Innskeeper USA Hotels. The offer? Including debt, about $1.1 billion, according to Dealbook (Thomson Reuters values the deal at $1.125 billion). Innskeeper operates hotels under the Hilton and Marriott brands. Apollo, in 2007, acquired Innskeeper USA Trust for $1.5 billion. The company filed for bankruptcy protection last year.
[slide title=”No. 7: Fooooorreee!”]
Fortune Brands, in December, announced it was looking to sell Acushnet, the parent of Titleist and Footjoy brands (Titleist sells golf balls while Footjoy supplies golf shoes and gloves). In May, Fortune found a buyer in Fila Korea and Mirae Asset Private Equity. The deal is valued at $1.225 billion, Thomson Reuters said. Mirae is the largest PE firm in Korea.
[slide title=”No. 6: Providence Goes SRA”]
Providence Equity Partners was in the news this year. The PE firm is currently the lead bidder for Blackboard, an educational software provider, a source says (Providence is also investor in Hulu, which is reportedly on the block). In April, Providence came in with its biggest deal this year when it agreed to buy SRA International, a government consultant, for $31.25 a share or $1.88 billion. Thomson Reuters values this at $1.687 billion.
[slide title=”No. 5: Golden Gate Gets Into Lawson”]
Golden Gate Capital, the San Francisco-based PE firm, has been active this year. The buyout shop has agreed to buy California Pizza Kitchen as well as Conexant Systems. But its biggest deal came in April when it inked a deal for Lawson Software for $1.84 billion. St. Paul, Minn.-based Lawson provides enterprise software for healthcare, services and consumer products companies.
[slide title=”No. 4: LDH Energy Asset Holdings”]
Louis Dreyfus Highbridge Energy in March agreed to sell its Midstream Assets business segment, LDH Energy Asset Holdings, to an investor group for about $1.925 billion in cash. The investors included Energy Transfer Partners and Regency Energy Partners. LDH Energy is the merchant energy platform of the Louis Dreyfus Group and Highbridge Capital Management.
[slide title=”No. 3: KKR Buys Capsugel”]
In April, Pfizer agreed to sell its Capsugel manufacturing unit to KKR for $2.38 billion. The unit makes wholesale pill casings and produced $750 million in sales last year, according to Bloomberg.
[slide title=”No. 2: CD&R Dials Into 911″]
The year’s second biggest deal so far comes from Clayton Dublier & Rice. In February, CD&R beat out Bain Capital to buy Emergency Medical Services for $64 a share, or $2.9 billion. Emergency Medical Services provides healthcare transportation through its American Medical Response unit, and supplies physician services through its EmCare Holdings business, Thomson Reuters reported. The deal closed in May.
[slide title=”No. 1 Blackstone Buying Centro Properties”]
What’s the biggest deal? In February, the Blackstone Group agreed to buy Centro Properties Group’s portfolio of U.S. shopping centers for $9.4 billion. The deal is Blackstone’s largest since 2007 and includes 588 malls, according to Bloomberg News.