Contact: Pamela Shabi
Deloitte
PR manager
+44 20 7303 0587
Statistics (237KB, PDF) from CMBOR, the pre-eminent provider of analysis on the UK buy-out market founded by Barclays Private Equity and Deloitte, reveal that the private equity market has picked up significantly after a slow start to 2007. Excluding the Alliance Boots mega-deal the first half total was £13.9 billion, up 31% on the first half of 2006. Including Alliance Boots, the first half total is already over £25 billion, close to the record 2006 full year number of £26.5 billion.
Mark Pacitti, Corporate Finance Partner at Deloitte, said: “After a sluggish start to the year private equity completions have bounced back in Q2 and we may well achieve a record £40 billion by the end of 2007.”
Pacitti added: “Notwithstanding continuing concerns over consumer confidence on the high street, we have also seen a number of large scale secondary retail buy-outs this year including Fat Face, Threshers and Jimmy Choo.”
Tom Lamb, Co-Head of Barclays Private Equity, said "The Alliance Boots deal is a landmark event, as it is the first buy-out of a FTSE100 company. Interestingly, although it is the largest European buy-out ever and is 50 per cent bigger than the next largest European deal (TDC, the Danish telecom business, which was valued at €13bn in 2006), it is only the fifth largest buy-out of all time on a global basis.
"It remains to be seen whether the Alliance Boots deal will open the floodgates for more FTSE100 buy-outs. The firepower is certainly there with fundraising remaining at record levels," Lamb continued.
Q2 2007 highlights:
- Total public to private buy-outs in the first six months of 2007 have reached record levels of £14 billion compared to nearly £6 billion last year, accounting for two thirds of the total market value.
- The level of fundraising has continued to be very high and is already at nearly £11 billion, over half the record total of £20.2 billion set in 2006.
- The largest sector so far is retail, which has more than doubled last year’s value of £3.3 billion to £12.4 billion. There was also a significant number of high street chain stores involved in secondary buy-outs in the first half of 2007 – Fat Face, Threshers, Jimmy Choo and Phase Eight.
Download our graphs. (237KB, PDF)
Notes to Editors:
The Centre for Management Buy-out Research (CMBOR) was founded by Barclays Private Equity and Deloitte at Nottingham University Business School in 1986. CMBOR is world-renowned as the long-standing leader in providing robust independent analysis of the buy-out and private equity market.
Mark Pacitti
Deloitte
Tel: 020 7303 5871
Mob: 07768 574 631
Tom Lamb
Barclays Private Equity
Tel: 020 7773 2541
Mob: 07770 613 447
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