Private Equity Accounts for Just 15% Of National Deals In First Three

Deal activity amongst UK manufacturing firms rose significantly in the first quarter of 2014 compared to the last three months of 2013, according to a new report.

According to the latest Experian data and analysis from law firm Irwin Mitchell, manufacturers in the UK were the target of 183 deals during the first three months of 2014 compared to 151 during Q4 last year.  The figure also represented an increase compared to the same period in 2013 when only 157 deals were recorded.

The South East strengthened its number one position with 36.6% of the total volume of completed manufacturing M&A, whilst the North West’s share increased slightly to 14.7% from 14.4%. This percentage was higher than Yorkshire, the West Midlands, the South West, the East Midland and East Anglia.

The report also highlighted a fall in the percentage of manufacturing deals which involved private equity. Nationally in the first quarter of 2014, the figure stood at 15.3% whilst during 2013, 28.5% of manufacturing M&A was PE backed.

Expert Opinion

Overall the manufacturing sector performed well during Q1 with a 12% increase in the number of deals compared to the previous three months period.

“Although this is very encouraging and hopefully will continue during the rest of the year, it was disappointing to see a reduction in the amount of deals backed by private equity.

“The manufacturing sector is certainly proving to be driving a great deal of M&A activity and I expect that there will be an increase in levels as the year continues. Faced with this growing appetite and an improving economic picture, ambitious companies here in the region should seriously consider the option of private equity whilst they explore opportunities for developing and growing their business.”
Chris Rawstron - Partner

This research is based on data sourced from Experian Corpfin’s proprietary M&A deals database