Germany: Cross Border M&A Yearbook 2014 Edition · 2020-05-26 · Cross Border M&A deal value...

Germany: Cross Border M&A Yearbook2014 EditionFebruary 2015

© 2015 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft 2

Foreword

Welcome to the first edition of Deloitte Corporate Finance’s “Cross Border M&A Yearbook” for Germany. Looking back on 2014, it is clear that there has been a strong uplift in cross border M&A activity in Germany, especially with respect to outbound deals. This report provides a general overview of German cross border deal activity from a regional, industry as well as investor type perspective over the last three years.

German cross border M&A activity in 2014 was stronger than in any other year since the global financial crisis. We are witnessing mega-deals by German companies across the globe, especially in the US, which continues to be a strategic growth market for them as they look to increase their international footprint. Germany has also been one of the few European countries that are witnessing strong growth across all industries. With many German companies’ quite healthy balance sheets, they are looking more and more toward international expansion. Simultaneously, Private Equity (PE) firms took their opportunities to compete with strategic buyers and were very active in cross border Inbound M&A into Germany.

Despite recent currency developments and persistent economic challenges in the Euro Zone, there is optimism surrounding the ongoing development of cross border M&A activity with German participation. This optimism is based on the many diversified, financially healthy and successful multinational industrial companies in Germany.

Source: S&PCapitalIQ/ DeloitteAnalysis

Inbound Outbound

Deal Value Deal Volume

0

20

40

60

80

100

120

140

160

2014201320122011201020092008200720062005200420032002200120000

100

200

300

400

500

600

700

800

Dea

l Val

ue (€

bn)

Dea

l Vol

ume

(Num

ber

of d

eals

)

Cross Border M&A Activity In Germany Since 2000


Contents

Cross Border M&A Key Observations

General Cross Border M&A Trendsby Annual Volume and Valueby Quarter Inbound and Outbound M&A Activity by Region/Country

Cross Border M&A Trends by Deal Size

Top 10 Inbound and Outbound Transactions/Deals

Inbound and Outbound M&A Activity by Industry

Inbound and Outbound M&A Activity by Investor Type

Methodology

Contacts

Germany: Cross Border M&A Yearbook


In 2014 cross border M&A activity surged compared to recent years; The US represents a prime country for German corporate outbound buyers while US and UK acquirers dominated inbound deals

Cross Border M&A Key Observations

• Germany’s cross border M&A activity increased significantly in 2014, not only in terms of deal volume (in terms of absolute number) but especially in terms of (disclosed) deal value (in terms of Euro value). While inbound and outbound deal volumes increased by 26.5% and 9.9%, respectively, compared to 2013, in-bound and outbound deal values increased by 80.2% and 227.0%, respectively, during the same period.

• The notable increase in deal value was the result of several large-value deals, particularly those with values greater than €0.5bn, in 2014. Inbound deals greater than €0.5bn increased from 5 deals in 2013 to 16 in 2014. Outbound deals greater than €0.5bn increased from 8 deals in 2013 to 17 in 2014, 7 of which were even greater than €5.0bn. Of course, it needs to be considered that often deal values are not disclosed.

• In terms of volume, Intra-European deals continue to lead the list of inbound and outbound deal activity, accounting for 63.7% of total inbound deals and 66.3% of total outbound deals. Geographical and cultural proximity and easing euro crisis affected European businesses to target German counterparts to have access to smaller (partly privately owned) manufacturers.

• Asia’s involvement in the M&A activities of Germany continues to grow in significance, as evidenced by double-digit growth in inbound and outbound deal volume. Pronounced interest was seen from Chinese buyers in Germany, highlighted by the €0.5bn Hilite International, Inc.-AVIC Electromechanical Systems Co., Ltd. deal.

• The leading industry of outbound deal value was Life Sciences and Healthcare which was mainly attributable to Merck KGaA’s €13.5bn acquisition of Sigma- Aldrich Corporation and Bayer AG’s €10.2bn acquisition of Merck KGaA’s consumer care business.

• Manufacturing accounted for 33.8% of the inbound deal value and 24.1% of outbound deal value, reflecting the impact of several mega-deals in the Manu-facturing industry. While European and US companies have increasingly sought manufacturing assets in Germany to add scale and capabilities to existing ma-nufacturing operations, many German businesses have focused on the US to expand their global footprint and gain access to sales markets.

• TMT witnessed strong inbound deal volume and value in 2014, spurred by an increased interest in German high-tech companies, and strong outbound deal volume, reflecting the focus of many German companies on expanding their footprint into new business offerings. This is highlighted by SAP America, Inc.’s acquisition of US based Concur Technologies which expanded the company’s offering to the thriving cloud-computing space.

• North America emerged as a leading destination of outbound deals for German buyers in 2014, with outbound deals increasing by 41.8% in terms of volume and 2,765.8% in terms of value, compared to 2013. 2014 saw many mega-deal acquisitions of US companies by German strategic buyers, such as Merck KGaA, ZF Friedrichshafen AG, Siemens Energy, Inc., SAP America, Inc., Bayer AG and Infineon Technologies AG.

• Although inbound and outbound M&A activity is spearheaded predominantly by strategic buyers, inbound deal value by financial buyers witnessed a 51.7% YoY growth rate in 2014, driven by several large-value-deals, particularly in the Manufacturing industry. Outbound deal values were dominated by strategic buyers, accounting for 92.4% of total deal values.


Cross Border M&A deal value increased to €124.1bn in 2014, with a YoY growth rate of 162.3%, the highest growth rate since 2007

German Cross Border M&A Activity by Volume and Value

German M&A Deal Activity: Volume and Value Growth

Inbound Deals Outbound Deals

2012 2013 YoY 2014 YoY 2012 2013 YoY 2014 YoY

Deal Volume 523 486 (7.1%) 615 26.5% 658 565 (14.1%) 621 9.9%

Deal Volume with disclosed deal value 183 183 195 210 188 170

Deal Value (€bn) 26.2 20.8 (20.4%) 37.5 80.2% 30.1 26.5 (12.1%) 86,5 227.0%

Source: S&P Capital IQ/ Deloitte Anlaysis

Source: S&P Capital IQ/Deloitte Analysis

Inbound Outbound

201420132012

658

523

621

61548638

1,236

1,051

1,181

24

565

Deal Volume (absolute number, 2012–2014)

17.6%11.0%


Inbound Outbound

201420132012

30.1

26.2

86.5

37.520.8

38

124.1

47.356.3

2426.5

Deal Value (€bn, 2012–2014)

162.

3%

15.9%


The volume development shows a similar pattern as in prior years with a higher number of deals in the second half of the year. Average outbound deal value saw a sharp increase in Q3 2014

Cross Border Quarterly M&A Activity

Quarterly Deal Activity By Investor Type: Inbound

2012 2013 2014

Q1 Q2 Q3 Q4 YoY Q1 Q2 Q3 Q4 YoY Q1 Q2 Q3 Q4

Total Deal Volume 131 110 132 150 (7.1%) 111 104 129 142 26.5% 149 136 170 160

Total Disclosed Value deals 45 46 44 48 35 38 49 61 45 40 54 56

Total Deal Value (€bn) 5.7 6.8 3.9 9.7 (20.4%) 2.6 8.5 3.3 6.4 80.2% 12.2 10.0 8.3 7.0

Thereof PE (€bn) 0.6 2.7 1.3 4.0 1.3 7.1 1.5 2.6 6.8 6.6 1.7 4.1

Average Deal Value (€bn) 0.1 0.1 0.1 0.2 (20.4%) 0.1 0.2 0.1 0.1 69.1% 0.3 0.3 0.2 0.1

Quarterly Deal Activity By Investor Type: Outbound

2012 2013 2014

Q1 Q2 Q3 Q4 YoY Q1 Q2 Q3 Q4 YoY Q1 Q2 Q3 Q4

Total Deal Volume 171 157 152 178 (14.1%) 144 140 135 146 9.9% 164 144 153 160

Total Disclosed Value deals 41 51 54 64 51 39 44 54 39 48 46 37

Total Deal Value (€bn) 4.6 7.4 10.0 8.0 (12.1%) 13.0 3.0 3.3 7.1 227.0% 12.2 19.3 43.7 11.4

Thereof PE (€bn) 1.0 1.9 2.2 1.9 11.4 1.2 1.6 1.6 0.8 1.3 3.0 1.5

Average Deal Value (€bn) 0.1 0.1 0.2 0.1 (1.8%) 0.3 0.1 0.1 0.1 261.6% 0.3 0.4 0.9 0.3


Q3 increase in deal value driven mainly by four >€5.0bn deals by strategic buyers.

Num

ber

of D

eals

FY12 FY13 FY14

100

120

140

160

180

Q4 Q3 Q2 Q1

Inbound Deal Activity by Quarter

Num

ber

of D

eals

FY12 FY13 FY14

120

140

160

180

200

Q4 Q3 Q2 Q1

Outbound Deal Activity by Quarter

2014 Cross Border Deal Flow by Region


North America emerged as one prime destination in terms of German outbound deal value with strong growth rates in terms of volume and value

Key observations• Europe remained the leading region in terms of

inbound and outbound deal volume. European inbound deal volume, in particular, increased by 30.5% compared to 2013, while European inbound deal value increased by 190.0% during the same period.

• North America emerged as one prime destination in terms of German outbound deal value with strong growth rates in terms of volume and especially in terms of value.

• Also inbound and outbound deal volume from/in the Asia-Pacific region increased compared to 2013. While Asia-Pacific acquirers generally more focus on smaller and mid size deals, one larger transaction to note was the €0.5bn Hilite International, Inc. acquisition of AVIC Electromechanical Systems Co., Ltd.

Cross Border Deal Flow by Region

North America as

Target Acquirer Total

Deal Volume 129 145 274

Growth (YoY) 41.8% 21.8% 30.5%

Deal Value (€bn) 54.8 6.9 61.7

Growth (YoY) 2765.8% (1.5%) 589.5%

Europe as



Growth (YoY) 3.0% 30.5% 14.8%

Deal Value (€bn) 29.8 28.5 58.3

Growth (YoY) 26.5% 190.0% 74.7%

South America as


Deal Volume 21 4 25

Growth (YoY) (4.5%) 100.0% 4.2%

Deal Value (€bn) 0.5 0.0 0.5

Growth (YoY) 17.9% (98.6%) 2.6%

Middle East & Africa as


Deal Volume 9 17 26

Growth (YoY) (10.0%) 26.9% 10.9%

Deal Value (€bn) 0.3 0.2 0.4

Growth (YoY) 1031.4% (92.4%) (81.5%)

Asia-Pacific as



Growth (YoY) 19.0% 11.5% 14.9%

Deal Value (€bn) 1.2 1.9 3.1

Growth (YoY) 113.2% 20.5% 45.0%



United States steered outbound activity, while United Kingdom remained a major contributor to inbound deal value

Top 10 Countries as Acquirers and Targets

Inbound Deals – From … to Germany

Top Countries by Deal Volume

Country 2013 Volume YoY 2014 Volume Share

United States 103 21.0% 124 20.2%

United Kingdom 67 43.6% 96 15.5%

Switzerland 36 27.8% 46 7.5%

France 30 41.7% 43 6.9%

Netherlands 31 37.1% 43 6.9%

Austria 41 (4.9%) 39 6.3%

Canada 17 21.2% 20 3.3%

Sweden 22 (13.6%) 19 3.1%

Luxembourg 19 - 19 3.1%

Belgium 5 210.0% 16 2.5%

Others 117 152 24.7%

Total 486 26.5% 615 100.0%

Top Countries by Deal Value (€bn)

Country 2013 Value YoY 2014 Value Share

United Kingdom 6.2 87.3% 11.6 30.8%

United States 4.4 35.1% 6.0 16.0%

Luxembourg 0.1 3.353.7% 5.2 13.7%

Denmark 0.1 1.742.1% 2.4 6.4%

Sweden 0.6 295.6% 2.3 6.1%

Channel Islands - - 2.1 5.5%

France 0.9 92.4% 1.7 4.6%

Austria 0.4 130.4% 1.0 2.8%

Netherlands 0.7 3.4% 0.7 1.9%

Canada 2.6 (72.2%) 0.7 1.9%

Others 4.7 3.8 10.2%

Total 20.8 80.2% 37.5 100.0%


Outbound Deals – From Germany to …

Top Countries by Deal Volume

Country 2013 Volume YoY 2014 Volume Share

United States 85 34.1% 114 18.4%

United Kingdom 71 (9.9%) 64 10.3%

France 50 14.0% 57 9.2%

Austria 39 (10.3%) 35 5.6%

Netherlands 26 34.6% 35 5.6%

Switzerland 29 3.4% 30 4.8%

Italy 28 (7.1%) 26 4.2%

Belgium 17 5.9% 18 2.9%

India 8 100.0% 16 2.6%

Spain 9 66.7% 15 2.4%

Others 203 211 34.0%

Total 565 9.9% 621 100.0%

Top Countries by Deal Value (€bn)

Country 2013 Value YoY 2014 Value Share

United States 1.9 2.831.9% 54.7 63.2%

Luxembourg 2.1 311.9% 8.7 10.1%

Sweden 0.2 3.691.3% 6.9 7.9%

United Kingdom 3.2 40.8% 4.5 5.2%

France 0.8 314.2% 3.1 3.6%

Netherlands 9.0 (88.9%) 1.0 1.2%

Czech Republic 1.7 (52.2%) 0.8 1.0%

Austria 0.1 443.6% 0.7 0.8%

Italy 0.1 413.5% 0.7 0.8%

Switzerland 0.2 277.0% 0.7 0.8%

Others 7.2 4.7 5.5%

Total 26.5 227.0% 86.5 100.0%


Volume of large-value-deals (greater than €0.5bn) revived in 2014, with YoY growth rates of 220.0% and 112.5% in inbound and outbound deals, respectively

Key observations• 2014 witnessed an increase in large-value-deal activity

(deals greater than >€0.5bn) with increase in inbound (from 5 to 16) and outbound (from 8 to 17) deals of 220.0% and 112.5%, respectively, from 2013. Especially the outbound M&A market contained 7 mega deals with a value greater than €5bn.

- The €4.5bn purchase of international oil and gas explorer and producer RWE Dea AG by LetterOne Holdings, Luxembourg-based global energy and telecom investor topped the list of inbound deals.

- The largest outbound deal was the acquisition of US based life-science and chemical supplier Sigma-Aldrich by the pharmaceutical giant Merck KGaA for €13.5bn.

Cross Border M&A Activity by Deal Size

Source: S&P Capital IQ/Deloitte AnalysisGesamtkosten Verfügbarkeit

Undisclosed €0.0–€0.1bn €0.1–€0.5bn€0.5–€5.0bn >€5.0bn

201420132012

37

340

134

141

+220.0%

-58.3%

38

420

30338

615

486523

125

16

24

140

38

Inbound Deals

Deal Volume by Size (absolute number, 2012–2014)

Source: S&P Capital IQ/Deloitte AnalysisGesamtkosten Verfügbarkeit

Undisclosed €0.0–€0.1bn €0.1–€0.5bn€0.5–€5.0bn >€5.0bn

201420132012

43

448

155 110

+112.5%

-33.3%43

451377

38

621

565

65812

71

107

24

152

28

Outbound Deals


Top 10 deals in Germany were dominated by Industrial Products and Process Industries, with majority backed by financial buyers

Top 10 Inbound Deals by Value in 2014 (excl. real estate deals)

Top 10 Inbound Deals by Value in 2014

Date Sector Acquirer Acquirer Country TargetDeal Value*

(€bn)Percent Sought

Buyer Type

16-Mar-14 Oil & Gas LetterOne Holdings S.A. Luxembourg RWE Dea AG 4.5 100.0% Financial Buyer

25-Jul-14 Media Sky plc United Kingdom Sky Deutschland AG 3.9 57.4% Strategic Buyer

7-Mar-14 Industrial Products & Services Rolls Royce Holdings plc United Kingdom Rolls-Royce Power Systems AG 2.4 50.0% Strategic Buyer

6-Nov-14 Life Sciences EQT Partners AB; Santo Holding AG Sweden; Switzerland Siemens Medical Instruments Pte. Ltd.

2.2 100.0% Financial Buyer

30-Jun-14 Process Industries INEOS Industries Holdings Limited United Kingdom Styrolution Group GmbH 1.9 50.0% Strategic Buyer

12-Jun-14 Industrial Products & Services Intermediate Capital Group plc; Kirkbi A/S

UK/Denmark Minimax Viking GmbH 1.4 100.0% Financial Buyer**

16-Apr-14 Industrial Products & Services Triton Advisers Ltd. Channel Islands GEA Heat Exchangers GmbH 1.3 100.0% Financial Buyer

11-May-14 Process Industries Clayton, Dubilier & Rice, Inc. United States Mauser AG 1.2 100.0% Financial Buyer

22-Apr-14 Process Industries Permira Advisers Ltd. United Kingdom CABB GmbH 0.8 100.0% Financial Buyer

1-Apr-14 Industrial Products & Services Triton Advisers Ltd. Channel Islands Alstom SA, Auxiliary Components Business

0.7 100.0% Financial Buyer

* partly based on estimates as disclosed in publicly available sources** Investment syndicate/private ownership group



German Strategic buyers across all industries have been active in seeking opportunities abroad, particu-larly in the US, to extend their global footprint and benefit from restored consumer spending

Top 10 Outbound Deals by Value in 2014 (excl. real estate deals)

Top 10 Outbound Deals by Value in 2014

Date Sector Acquirer Target Target CountryDeal Value*

(€bn)Percent Sought

Buyer Type

22-Sep-14 Life Sciences Merck KGaA Sigma-Aldrich Corporation United States 13.5 100.0% Strategic Buyer

10-Jul-14 Automotive ZF Friedrichshafen AG TRW Automotive Holdings Corp. United States 10.7 100.0% Strategic Buyer

6-May-14 Life Sciences Bayer AG Merck & Co., Inc. Merck Consumer Care Business

United States 10.2 100.0% Strategic Buyer

21-Feb-14 Industrial Products & Services Volkswagen AG Scania AB (publ) Sweden 6.7 37.4% Strategic Buyer

18-Sep-14 Technology SAP America, Inc. Concur Technologies, Inc. United States 6.6 100.0% Strategic Buyer

21-Sep-14 Oil & Gas Siemens Energy, Inc. Dresser-Rand Group Inc. United States 5.9 100.0% Strategic Buyer

27-Jun-14 Travel, Hospitality & Leisure TUI AG TUI Travel PLC United Kingdom 2.4 45.5% Strategic Buyer

20-Aug-14 Technology Infineon Technologies AG International Rectifier Corporation United States 2.3 100.0% Strategic Buyer

10-Feb-14 Process Industries ContiTech AG Veyance Technologies, Inc. United States 1.4 100.0% Strategic Buyer

14-Apr-14 Consumer Product Companies - Food & Beverage

Symrise AG Diana S.A.S. France 1.3 100.0% Strategic Buyer

* partly based on estimates as disclosed in publicly available sources



Manufacturing, Real Estate and TMT dominated the deal volume and value; High deal value in Energy & Resources is due to the acquisition of RWE Dea AG

Inbound M&A Activity by Industry in 2014

Key observations• The considerable deal value (14.9% of total) in

Energy & Resources was mainly the result of the €4.5bn acquisition of RWE Dea AG, which reflects the ongoing trend to spin-off non-core businesses in order to focus and expanding the renewable energy footprint.

• Manufacturing accounted for 33.8% of the inbound deal value, driven by several large-value deals such as the €2.4bn Rolls Royce – Daimler deal and the

€1.9bn INEOS- Styrolution deal. European and the US companies have increasingly sought assets in Germany primarily to add scale and capabilities to existing manufacturing operations. In addition, privately owned smaller manufacturing companies with strong export business emerged as a key focus area for foreign investors including a number of Asian buyers.

• TMT witnessed strong deal volume (21.1% of total) and value (15.0% of total) in 2014, driven by an increased interest in German high-tech companies as

buyers aimed to expand their digital business footprint through technical innovations. Especially North American buyers were interested in German TMT assets but mainly targeting smaller transactions.

• Real Estate dominated deal activity, accounting for 31.1% of total inbound deal volume and 22.1% of total inbound deal value. The Real Estate deal volume increased by 52.8% and deal value by 110.7%from the previous year and reflects the impact of low interest rates but also rising real estate prices.


North America Europe Middle East & Africa Asia-Pacific South America

0.99.4

0.8 2.7

0.4

0.10.4

0.1

0.6

0.6

0.3

0.20.5

2.5

5.2

4.9

5.5

2.7

47

74

13

6723

1323

68

155 5

176

21

2

1

1

1

22

4

11 48

3613210

51334

1

Inbound Deal Volume by Region and Industry (2014) Inbound Deal Value (€bn) by Region and Industry (2014)

FSI

LSHC

Mfg

TMT

CB

E&R

Real Estate


Outbound deal volume was led by CB and TMT; Some mega-deals in LSHC and Manufacturing contrib-uted substantially to the high deal values in these industries

Outbound M&A Activity by Industry in 2014

Key observations• Consumer Business led outbound deal activity in terms

of volume, accounting for 25.9% of deals in 2014. This can mainly be attributed to an uptick in activity in the travel and hospitality sector, driven by a need to diversify to new markets, as well as packaged foods sector, driven by a need to build synergies.

• The 29.6% share, in terms of value, of LSHC outbound deals was mainly due to Merck’s €13.5bn acquisition

of Sigma-Aldrich and Bayer’s €10.2bn acquisition of Merck’s consumer care business.

• Manufacturing deal value grew 545.0% in 2014. Following reduced M&A activity in the post-crisis years, many German businesses have focused on the US to expand their global presence, as in the case of the TRW Automotive-ZF Friedrichshafen mega-deal. The slowing down of the emerging markets and the political risk in some of these regions resulted in the

developed markets, especially the US, receiving increased attention thanks to its solid economic recovery also associated with strong consumer demand.

• A main driver of the TMT deal volume (20.3% of total) was the focus of many German companies on expanding their footprint into new business offerings. For instance, SAP’s acquisition of US based Concur Technologies expanded the company’s offering to the thriving cloud-computing space.


North America Europe Middle East & Africa Asia-Pacific South America

44

8.5

25.1

1.3

5.5 0.1

0.2

0.1

0.3

0.7

0.20.3

0.40.80.2

12.3

0.4

9.9 1.1

13.1

5.947

11020

667

1522

76

185 5

255

22

1

2

1

22

32

55 328

2543

541

73

Outbound Deal Volume by Region and Industry (2014) Outbound Deal Value (€bn) by Region and Industry (2014)

FSI

LSHC

Mfg

TMT

CB

E&R

Real Estate


Significant increase in inbound deal activity by financial investors reflects the attractiveness of invest-ments in Germany. Outbound investment of corporate investors surged in 2014

Cross Border M&A Activity by Investor Type

69.8%

486(2013)

YoY: 59.0%

YoY: 16.3%

615(2014)

75.9%

24.1%

30.2%

Inbound Deals

78.6%

565(2013)

YoY: 5.6%

YoY: 11.2%

621(2014)

77.7%

22.3%

21.4%

Outbound Deals


Financial Investors Corporate Investors

2014

2013

YoY: 123.9%YoY: 51.7%

12.6 8.2

19.1 18.4

Deal Value (€bn)


Financial Investors Corporate Investors

2014

2013

YoY: 655.8%YoY: (58.8%)

15.9 10.6

6.5 80.0

Deal Value (€bn)


Manufacturing was of a major focus of both PEIs and Strategic Buyers; TMT was of particular focus of Strategic Buyers

Inbound M&A Activity by Industry and Investor Type in 2014

Financial Buyers: Key Observations• Real Estate dominated the inbound deal activity as foreign investors sought higher

returns from the appreciating real estate prices in Germany. This trend also led to an influx of investment into the travel and hospitality sector (CB industry), which saw multiple acquisitions of hotels and hotel chains.

• Inbound deal value was impacted by mega-deals in the E&R and Manufacturing industries. A notable trend driving such mega-deals was private equity investors picking up high performing, non-core assets from sellers. This trend is highlighted by Triton’s acquisitions of divisions belonging to GEA and Alstom as well as LetterOne’s acquisition of RWE’s oil and gas unit.

Strategic Buyers: Key Observations• Manufacturing dominated in terms of both volume and value. Foreign strategic

players targeted Germany in a bid to extend their service/product portfolios. INEOS Industries and Rolls Royce Holdings plc acquired the remaining shares from their joint venture partners BASF and Daimler to fully integrate the respective and globally competitive businesses into their organizations.

• TMT experienced the highest deal volume by strategic buyers, many of whom targeted German R&D through acquisitions to add value to their existing operations. The trend is more pronounced with the shift in the spotlight towards ‘Industry 4.0’, which involves digitalization of the manufacturing industry with cyber-physical systems and ‘Internet of Things’ as the technological basis.

18612.4%, 23

6.5%, 12

3.8%, 7

2.7%, 52.2%, 4

1.6%, 3

71.0%, 132

Financial Buyers: Activity by Deal Volume

Real Estate CB Mfg FSI LSHC E&R TMT

429

17.5%, 75

13.8%, 59

7.5%, 32

4.0%, 17 3.7%, 16

29.6%, 127

24.0%, 103

Strategic Buyers: Activity by Deal Volume

€19.1bn

28.0%, 5.1

12.8%, 2.3

4.9%, 0.9

31.2%, 5.7

28.0%, 5.1

Financial Buyers: Activity by Deal Value (€bn)

€18.4bn17.3%, 3.2

6.4%, 1.2

3.4%, 0.6 1.6%, 0.32.7%, 0.5

38.1%, 7.0

30.5%, 5.6

Strategic Buyers: Activity by Deal Value (€bn)


Note: 1. The figures represent the percentage share of total inbound deal volume/value and the actual numbers/values by industry in 2014. 2. The number of deals with undisclosed value is 102 and 318 for financial and strategic buyers, respectively. 3. No outbound deal values for financial buyers in the TMT industry have been disclosed.


Financial buyers focussed on real estate and financial services, while strategic buyers were active in LSHC, Manufacturing, CB and TMT

Outbound M&A Activity by Industry and Investor Type in 2014

Financial Buyers: Key Observations• Outbound deals by Financial Buyers are mainly Real Estate dominated deals in terms

of value and volume.

• FSI recorded the second largest value due to a €0.5bn deal, where Deutsche Bank bought the real estate backed non- and sub-performing loans of Volksbank Romania. The ongoing pressure on the region’s financial institutions to restructure and divest to strengthen balance sheets and comply with new capital requirements drove these kinds of deals.

• Energy & Resources saw the second highest deal volume as financial investors continued to buy renewable energy assets, especially wind and solar power assets in the UK and France.

Strategic Buyers: Key Observations• LSHC led all industries in terms of deal value, mainly spurred by the acquisitions of

Sigma-Aldrich and Merck’s Consumer Care Business.

• Manufacturing had the second highest deal value, high-lighted by the acquisitions such as TRW Automotive, Scania and Veyance. Common trends in the M&A activity of German conglomerates include top-line growth through product/service diversification and profitability improvements by leveraging lower production costs.

• Consumer Business witnessed an upswing in volume, particularly driven by the packaged foods industry, but also included high value deals such as Diana-Symrise, TUI Travel Plc and Spotless-Henkel.

• TMT contributed the second highest deal volume. German Telcos not only bought fiber and wireless assets, but also assets in technology and media. The technology sector saw consolidation by vertical integration and expansion of service portfolio, with companies such as SAP strengthening their cloud and big-data market offerings.


Note: 1. The figures represent the percentage share of total outbound deal volume/value and the actual numbers/values by industry in 2014. 2. The number of deals with undisclosed value is 76 and 375 for financial and strategic buyers, respectively. 3. No outbound deal values for financial buyers in the TMT industry have been disclosed.

133

12.8%, 17

12.0%, 16

4.5%, 6

4.5%, 6 4.5%, 6

61.7%, 82

Financial Buyers: Activity by Deal Volume

Real Estate CB Mfg FSI LSHC E&R TMT

488

19.1%, 93

8.2%, 40

8.6%, 42

4.9%, 244.9%, 24

29.7%, 145

24.6%, 120

Strategic Buyers: Activity by Deal Volume

€6.5bn

7.9%, 0.5

6.1%, 0.4

3.7%, 0.2 3.2%, 0.2

79.2%, 5.2

Financial Buyers: Activity by Deal Value (€bn)

€80.0bn

14.0%, 11.2

11.5%, 9.2

7.8%, 6.2

1.5%, 1.27.5%, 6.0

32.0%, 25.6

25.6%, 20.5

Strategic Buyers: Activity by Deal Value (€bn)


Methodolgy & Contacts

Data Screening Criteria• Source: S&P Capital IQ

• Deal Type: Mergers & Acquisitions

• Deal Status: Closed or Announced

• Minority Deals: Excluded less than 25% stake

• Geography: Target or Acquirer (Parent of Acquirer) from Germany

• Time Period: 01/01/2012 to 12/31/2014

Definitions• Inbound Deals: Deals with Germany as the target geography

• Outbound Deals: Deals with Germany as the acquirer geography or as the acquirer’s parent geography

• Deal Value: Total gross transaction value of inbound/outbound deals if disclosed

• Industry Acronyms: FSI – Financial Services Industry TMT – Technology, Media & Telecommunications Mfg – Manufacturing LSHC – Life Sciences & Health Care E&R – Energy & Resources CB – Consumer Business

Methodology

Your Contacts

Volker KrugPartnerWirtschaftsprüfer/CPA Transaction Advisory ServicesDeloitte & Touche GmbHWirtschaftsprüfungsgesellschaftSchwannstr. 6, 40476 DüsseldorfTel: +49 (0)211 8772 [email protected]/de

Andreas SchmitzDirectorDipl. Kfm./CPATransaction Advisory ServicesDeloitte & Touche GmbHWirtschaftsprüfungsgesellschaftFranklinstrasse 50, 60486 Frankfurt/MainTel: +49 (0)69 75695 [email protected]/de

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Issued 02/2015

Germany: Cross Border M&A Yearbook 2014 Edition · 2020-05-26 · Cross Border M&A deal value...

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