Monthly M&A Activity Report. Global Private Equity, August 2016

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2 The following report details global private equity activity in August 2016 using data from the Zephyr database. It focuses on deal activity by target company. Click here to access the raw data in an Excel spreadsheet. PE volume and value down in August Both the volume and value of global private equity (PE) transactions declined in August to 337 deals worth a combined USD 33,310 million. In terms of volume this represented a 14 per cent drop on 438 deals announced in July, while value slipped 30 per cent from USD 47,315 million month-on-month. On a 12 month comparison volume declined 20 per cent, while value decreased at the slower rate of 25 per cent on the 473 deals worth USD 44,364 million in August Despite the fall, eight of the top 20 deals by value were worth USD 1,000 million or more in August, two of which exceeded USD 4,000 million and accounted for 25 per cent of total value for the period under review. Deals by volume and value Announced date No of deals Aug ,310 Jul ,315 Jun ,561 May ,983 Apr ,810 Mar ,502 Feb ,580 Jan ,311 Dec ,695 Nov ,592 Total deal value Oct ,037 Sep ,200 Aug ,364 Page 1

3 Deals by volume and value 120, Deal value 100,000 80,000 60,000 40,000 20, Aug- 15 Sep- 15 Oct- 15 Nov- 15 Dec- 15 Jan- 16 Feb- 16 M ar- 16 Apr- 16 M ay-16 Jun- 16 Jul- 16 Aug Total deal value Number of deals Page 2

4 US cloud-based hosting company targeted in top deal The largest PE transaction signed off during August involved Apollo Global Management agreeing to acquire US cloud-based hosting service provider Rackspace Hostings for USD 4,300 million. Searchlight Capital Partners will also participate in the deal, which included the assumption of USD 43 million in cash and is subject to antitrust regulatory approvals and expected to complete in the fourth quarter of This was closely followed by Platinum Equity signing on to pick up a majority stake in Emerson Network Power from Emerson Electric, through its Cortes NP Acquisition subsidiary, in a deal worth around USD 4,000 million in cash. This transaction is also subject to regulatory approvals and is expected to close by the end of the year. Companies based in the US dominated the top 20 PE deals in August, having been targeted in 15 transactions, six of which were worth more than USD 1,000 million. Other countries to feature include the Cayman Islands, Portugal, Spain and Indonesia. US attracts most investment once again Machinery, equipment, furniture and recycling sector was most frequently targeted PE investment in the machinery, equipment, furniture and recycling sector was largest in August as USD 6,794 million was invested across 48 deals. This placed it some way ahead of its nearest opponent on both fronts; second place by volume was taken by the publishing and printing sector with 32 deals, while the post and telecommunications industry was runner-up by value with USD 2,463 million. Despite the overall decline in PE investment recorded in August, four other sectors improved in terms of value month-on-month, these include transport, textiles, wearing apparel and leather, metals and metal products and hotels and restaurants; however, this came at the expense of publishing and printing, chemicals, rubber and plastics and wholesale and retail trade, among others. Other sectors to perform well during August included wholesale and retail trade, which placed third by volume with 23 deals, fourth placed education and health (17), and fifth ranked chemicals, rubber and plastics (16). Having dominated the top deals during the month under review it is unsurprising that companies based in the US received the largest amount of PE investment during August in terms of both volume and value. In all USD 23,915 million was invested across 143 deals, ranking the country far ahead of any competitors during the four weeks and representing 72 per cent of total PE investment for the month (USD 33,310 million). Despite performing well during August, PE value for US-based businesses was in line with the overall trend for the month, declining when compared to July (USD 24,762 million) and August 2015 (USD 24,741 million). In terms of value, Spain ranked second with USD 1,629 million, followed by China (USD 1,282 million), India (USD 1,181 million) and the Cayman Islands (USD 1,094 million). By volume China was second with 39 deals announced in August with India, the UK and Germany also performing well as the countries recorded volumes of 30, 28 and 22, respectively. Page 3

5 Top 20 private equity deals by value Deal value Deal type Target Target country General Partner/Fund Manager Deal status 1. 4,300 IBO 100% Rackspace Hosting Inc. US Apollo Global Management LLC; Searchlight Capital Partners LP Announced 2. 4,000 IBO majority stake Emerson Network Power US Platinum Equity LLC Pending 3. 2,350 IBO 100% Press Ganey Holdings Inc. US EQT Partners AB Pending 4. 1,900 IBO 50% inventiv Health Inc. US Advent International Corporation Announced 5. 1,600 IBO 100% RCN Telecom Services LLC US TPG Capital Advisors LLC Announced 6. 1,400 IBO 100% BioClinica Inc. US Cinven Ltd Announced 7. 1,006 MBO 94% Trina Solar Ltd KY Shanghai Xingsheng Equity Investment & Management Co., Ltd Announced 8. 1,000 Joint venture 100% Jetta Permian LP US The Blackstone Group LP Completed Minority stake Airbnb Inc. US Completed IBO 100% Medical Depot Inc. US Clayton Dubilier & Rice Inc. Announced IBO 100% Ascendi Costa de Prata - Auto estradas da Costa de Prata SA; Ascendi Beiras Litoral e PT; PT; Ardian France Announced Alta - Auto Estradas Beiras Litoral e Alta SA; Ascendi Grande Porto, Auto-Estradas do Grande Porto SA; Autovia de los Vinedos SA Concesionaria de la Junta de Comunidades de Castilla-La Mancha; Ascendi Group SGPS SA's motorway concessions operation and maintenance service companies; Ascendi Norte, Auto-Estradas do Norte SA; Ascendi Grande Lisboa, Auto Estradas da Grande Lisboa SA; Ascendi Pinhal Interior, Estradas do Pinhal Interior SA; Ascendi Douro, Estradas do Douro Interior SA PT; ES; PT; PT; PT; PT; PT Acquisition 50% Abengoa SA ES Oaktree Capital Management LP; Canyon Capital Advisors Announced LLC; Abrams Capital LLC; Centerbridge Partners LP Acquisition 70% VXI Global Solutions LLC US Carlyle Group LP Announced Joint venture 100% EnLink Midstream Partners LP, EnLink Midstream LLC and US NGP Energy Capital Management LLC Completed NGP Natural Resources XI's unnamed joint venture IBO 100% Grande Communications Networks LLC US TPG Capital Advisors LLC Announced Minority stake Charger Shale Oil Co LLC US Completed Minority stake JDA Software Group Inc. US The Blackstone Group LP; New Mountain Capital LLC Announced Minority stake Go-Jek Indonesia, PT ID The Capital Group Companies Inc.; Sequoia Capital Operations Announced LLC; Farallon Capital Management LLC; Mail.ru Group Ltd; KKR & Co LP; Warburg Pincus LLC; F8 Asia Growth Partners LLC; Northstar Advisors Pte Ltd; Rakuten Ventures; NSI Ventures IBO 100% United Initiators GmbH & Co.KG DE Equistone Partners Europe Ltd Pending IBO 100% 5.11 Inc. US Compass Diversified Holdings Announced Page 4

6 Target sectors by volume Target sectors by value Target sector Aug-15 Jul-16 Aug-16 Target sector Aug-15 Jul-16 Aug-16 Other services Machinery, equipment, furniture, recycling Publishing, printing Wholesale & retail trade Education, health Chemicals, rubber, plastics Metals & metal products Food, beverages, tobacco Textiles, wearing apparel, leather Transport Post and telecommunications Construction Gas, water, electricity Hotels & restaurants Wood, cork, paper Insurance companies Primary sector Banks Public administration and defence Other services 13,844 20,787 16,090 Machinery, equipment, furniture, recycling 3,793 7,797 6,794 Post and telecommunications ,463 Publishing, printing 10,239 9,369 2,337 Transport ,324 Chemicals, rubber, plastics 2,169 1, Education, health 147 1, Textiles, wearing apparel, leather Wholesale & retail trade 9,193 2, Metals & metal products Hotels & restaurants Construction Gas, water, electricity Food, beverages, tobacco Primary sector 996 1, Public administration and defence Banks Insurance companies 1, Wood, cork, paper Page 5

7 Top target countries by volume Top target countries by value Target country Aug-15 Jul-16 Aug-16 Target country Aug-15 Jul-16 Aug-16 US China India UK Germany Spain Australia South Korea Netherlands Canada France Italy Israel Japan Brazil Belgium Switzerland Singapore South Africa Czech Republic Finland Sweden Poland US 24,741 24,762 23,915 Spain ,629 China 2,554 2,030 1,282 India 2, ,181 Cayman Islands 3, ,094 UK Portugal Indonesia Germany 4, Italy 35 1, Australia 180 1, Netherlands 3 1, Brazil South Korea 1, Thailand Hong Kong Nigeria Israel 155 1, Canada 286 1, Poland Page 6

8 Top private equity providers Private equity firm Number of deals Number with consideration Total deal value Average deal value 1 Sequoia Capital Operations LLC 7 7 4, Apollo Global Management LLC 2 1 4,300 4,300 3 Searchlight Capital Partners LP 1 1 4,300 4,300 4 NVP Associates LLC 1 1 4,300 4,300 5 Platinum Equity LLC 2 2 4,111 2,056 6 Vestar Capital Partners Inc ,395 1,198 7 EQT Partners AB 2 1 2,350 2,350 8 TPG Capital Advisors LLC 4 2 2,250 1,125 9 Abry Partners LLC 3 2 2,250 1, Advent International Corporation 3 1 1,900 1, Thomas H Lee Partners LP 2 1 1,900 1, JLL Partners Inc ,400 1, Ampersand Management LLC 1 1 1,400 1, Water Street Healthcare Partners LLC 1 1 1,400 1, Cinven Ltd 1 1 1,400 1, Warburg Pincus LLC 4 4 1, KKR & Co LP 3 3 1, Oaktree Capital Management LP 2 2 1, Shanghai Xingsheng Equity Investment & Management Co., Ltd 1 1 1,006 1, Clayton Dubilier & Rice Inc Ferrer Freeman & Company LLC Page 7

9 Zephyr Half Year M&A Report Notes to editors Activity is based on the activity of the target company. Deal status is announced within the time period. The sector breakdown uses targets activities as defined to be Major Sectors by Zephyr. The date range is 01/08/ /08/2016 inclusive.