U.S. PE Deal Value Jumped 78% in January

The cheetah, the fastest mammal on Earth, will surge to speeds of 70 to 75 mph. Then they need a break. Like the current deal market.

The surge in early January deal announcements has boosted monthly M&A figures.

Last month, there were 792 U.S. announced mergers, valued at $50.6 billion, according to data from Thomson Reuters. This compares to 678 deals in January 2012, totaling $48.9 billion, Thomson Reuters says. The number of deals was up nearly 17% while transaction value was flat.

The biggest deal last month was Dish Network’s nearly $8 billion bid for Clearwire.

On the private equity side, the totals are better. We had 181 U.S. announced private equity deals in January, valued at roughly $8.2 billion, according to Thomson Reuters. This compares to 130 deals for the same time period in 2012, totaling $4.6 billion. The number of deals in January increased by nearly 40%, while transaction value rocketed nearly 78%.

Yesterday, Tony James, the Blackstone Group’s president, pointed out several times that current deal market is slow. This may seem to conflict with January’s totals, which seem high. That’s because the transaction data relies on deal announcements, which are the result of discussions occurring months ago.

Here’s the top five deals for the month of January, according to Thomson Reuters (publisher of peHUB). Of the five deals, all but one were announced during the first half of the month.

Photo courtesy of Shutterstock


[slide title=”5. Bear Tracker”]

The month’s fifth largest deal was Bear Tracker Energy. Summit Midstream Partners said Jan. 9 that it agreed to buy the midstream energy company for $513 million. The sellers were GSO Capital Partners and Bear Tracker Investments.

[slide title=”4. Wereldhave”]

Wereldhave, a Dutch property group, also agreed to sell all of its U.S. assets to Lone Star Funds. The price tag was $720 million.

[slide title=”3. EnergySolutions”]

Coming in third place is Energy Capital Partner’s buy of EnergySolutions, a nuclear waste management company.

Reuters says Energy Capital is paying $338.5 million cash, but the deal has an enterprise value of $1.1 billion.

[slide title=”2. ConocoPhllips”]

In mid-January, ConocoPhillips agreed to sell its energy properties in the Cedar Creek Anticline of North Dakota and Montana. The buyer was Denbury Resources and the purchase price was about $1 billion.

[slide title=”1. New Albertsons”]

January’s biggest deal doesn’t come from the energy sector.

Supervalu, the No. 3 U.S. grocery store operator, agreed to sell five of its retail grocery chains to an investor group led by Cerberus Capital Management, Reuters says. The deal includes Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market chains and related Osco and Sav-on in-store pharmacies. The transaction was valued at $3.3 billion, according to Reuters.