Zephyr Quarterly M&A Report

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Charlene McGee
5 years ago
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2 The following report details private equity activity in South Africa in Q 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. Bureau van Dijk recently worked with SAVCA members to ensure that their deals were fully represented upon our database. This project has resulted in additional deals being added which had not previously been available in broader publically available sources. Information on any further missing transactions can be submitted for inclusion on the Zephyr database by ing details to South African PE activity weakens in the third quarter After a brief uptick last quarter, the value of private equity and venture capital (PE and VC) investment targeting South African companies declined again in Q3 2014, continuing a lack of consistency that has characterised dealmaking in the country over the last few years. A total of USD 41 million was ploughed into South African companies between July and September, compared to USD 113 million in Q and USD 119 million in the corresponding three months of Volume decreased for the second successive quarter from 8 transactions to 5 and was also lower than the 8 transactions announced in Q The top PE and VC transaction with a disclosed value in Q was a USD 27 million investment by the European Investment Bank in Mozambique Tourism, a Randburg-based online company that offers tailor-made holidays throughout Mozambique. Quarterly private equity deals by volume and value - South African targets Announced date No of deals Q Q Q Q Q Q Q Q Q Q Q Q Q ,934 Q Q Q Q Total deal value Page 1

3 Quarterly private equity deals by volume and value - South African targets Deal value Q Q Q Q Q Q Q Q Q Aggregate deal value Number of deals Page 2

4 Annual private equity deals by volume and value - South African targets Announced date No of deals Total deal value PE investment in 2014 set to close on a high At the three-quarter stage of 2014, PE and VC investment targeting South African companies is already better than the whole of 2013, and this can only increase further in the last three months of the year , , , , , Between January and September a total of USD 211 million has been invested across 24 transactions, which in monetary terms is 39 per cent higher than USD 152 million in full-year As it stands, volume is 27 per cent lower year-on-year at 24 transactions compared to 33 in 2013, but is equal to full-year volume in 2010 and 2011 and higher than 2003 and Page 3

5 Annual private equity deals by volume and value - South African targets 8, Deal value 7,000 6,000 5,000 4,000 3,000 2,000 1, Total deal value Number of deals Page 4

6 Quarterly private equity deals by volume and value - African targets (excluding South Africa) Announced date No of deals Q Q Q ,237 Q Q Q ,845 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Total deal value PE and VC investment in rest of Africa slumps There was a sharp drop in the value of PE and VC investment targeting companies based elsewhere in Africa, excluding South Africa in Q3 2014, marking the second quarterly decrease in a row. In all, there were 14 transactions worth a combined USD 86 million in the three months under review, compared to 18 worth an aggregate USD 777 million in Q and 32 worth a collective USD 1,237 million in the first quarter of In monetary terms, this was a decline of 89 per cent quarter-on-quarter. The result was also down more than two-thirds on the same time last year (Q3 2013: USD 268 million). Volume slipped 22 per cent from 18 transactions in Q to 14 and was 30 per cent lower than the 20 deals announced in Q Page 5

7 Quarterly private equity deals by volume and value - African targets (excluding South Africa) Deal value 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Q Q Q Q Q Q Q Q Q Aggregate deal value Number of deals Page 6

8 Annual private equity deals by volume and value - African targets (excluding South Africa) Announced date No of deals , , , , Total deal value 2014 on course to be another good year The value of PE and VC investment targeting companies based in Africa, excluding South Africa, so far in 2014 is strong, with USD 2,100 millionworth of deals announced between January and September. Although this is some way behind the USD 8,626 million-worth of investment recorded in full-year 2013, it is worth bearing in mind that this is an exceptionally high base and 2014 is set to be the second-biggest result of the last ten years under review. Similarly, while the 64 transactions announced so far in 2014 is still less than the 83 signed off in the previous year, it is already the second-highest result of the last ten years and with three months to go until the end of 2014, could yet exceed Page 7

9 Annual private equity deals by volume and value - African targets (excluding South Africa) Deal value 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Total deal value Number of deals Page 8

10 Top Q private equity deals by value with South Africa targets Deal value (mil USD) Deal type Target Target country Equity provider Deal status Minority stake Mozambique Tourism ZA European Investment Bank Completed Acquisition increased from 86% to 100% Country Bird Holdings Ltd ZA Black River Asset Management LLC Announced acting in concert 3. 1 Minority stake African Management Initiative ZA Lundin Foundation Completed 4. 0 Minority stake Ekaya.com ZA 88mph Completed 5. n.a. IBO 80% RTT Group (Pty) Ltd ZA Ethos Private Equity Ltd; Development Partners Completed International LLP Page 9

11 Private Equity target sectors by volume (quarterly) Target sector Q Q Q Q Q Q Q Q Q Other services Transport Primary sector Wholesale & retail trade Hotels & restaurants Public administration and defence Education, health Banks Insurance companies Wood, cork, paper Publishing, printing Food, beverages, tobacco Textiles, wearing apparel, leather Chemicals, rubber, plastics Gas, water, electricity Construction Metals & metal products Machinery, equipment, furniture, recycling Page 10

12 Private Equity target sectors by volume (annually) Target sector Other services Primary sector Wholesale & retail trade Machinery, equipment, furniture, recycling Food, beverages, tobacco Transport Education, health Chemicals, rubber, plastics Metals & metal products Insurance companies Banks Textiles, wearing apparel, leather Construction Public administration and defence Publishing, printing Gas, water, electricity Hotels & restaurants Wood, cork, paper Page 11

13 Private Equity target sectors by value (quarterly) Target sector Q Q Q Q Q Q Q Q Q Other services Primary sector Transport Wholesale & retail trade Hotels & restaurants Public administration and defence Education, health Banks Insurance companies Wood, cork, paper Publishing, printing Food, beverages, tobacco Textiles, wearing apparel, leather Chemicals, rubber, plastics Gas, water, electricity Construction Metals & metal products Machinery, equipment, furniture, recycling Page 12

14 Private Equity target sectors by value (annually) Target sector Other services , , Primary sector Metals & metal products Food, beverages, tobacco Chemicals, rubber, plastics 0 1, Banks Transport Public administration and defence Education, health Insurance companies Hotels & restaurants Publishing, printing Wood, cork, paper Textiles, wearing apparel, leather Machinery, equipment, furniture, recycling Wholesale & retail trade , Construction Gas, water, electricity Page 13

15 Countries targeting South African PE deals (quarterly volume) Acquiror country Q Q Q Q Q Q Q Q Q Q Kenya UK US Luxembourg South Africa Canada Countries targeting South African PE deals (annual volume) Acquiror country South Africa UK US Kenya Spain Nigeria Canada Luxembourg Seychelles Page 14

16 Countries targeting South African PE deals (quarterly value) Acquiror country Q Q Q Q Q Q Q Q Q Q Luxembourg US Canada Countries targeting South African PE deals (annual value) Acquiror country US 1, UK , Luxembourg Spain South Africa 1,387 3,031 6, Kenya Canada Page 15

17 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 Q date range is from 01/07/2014 to 30/09/2014 inclusive Page 16

Global Private Equity M&A Review. November 2018

Global Private Equity M&A Review. November 2018 The following report details global private equity activity in using data from the Zephyr database. It focuses on global deals activity by target company within the cleantech sector. Click here to access