Manufacturing M&A Amongst Yorkshire Firms Continues to Rise

Private Equity Accounts for Just 14% Of Regional Deals In


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Deal activity involving Yorkshire-based manufacturing firms increased for the third consecutive quarter according to a new report.

According to the latest Experian data and analysis from law firm, Irwin Mitchell, Yorkshire manufacturers were the target of 22 deals during the second quarter of 2014. The figure takes the total number for the year so far to 41 – slightly higher than the 38 deals in the first half of 2013.

To further demonstrate the current strength of the sector, Irwin Mitchell’s report highlights that the number of manufacturing deals in the most recent quarter has only been exceeded on four occasions in the last six years.

The Yorkshire region’s share of manufacturing M&A activity across England increased from 10.3% in Q1 to 11.7%.This was up from 7.9% during the previous year and higher than all other regions in the UK apart from the South East, the North West and East Anglia. The regional percentage during the whole of 2013 was 10.4%.

The report also highlighted a national fall in the percentage of manufacturing deals which were private equity backed. Across the UK in the second quarter of 2014, the figure stood at 16% whilst in 2013, 28.5% of manufacturing M&A was backed by PE.

So far in 2014, 14.6% of manufacturing deals in Yorkshire were private equity-backed whilst last year the figure was much higher at 26.3%.

Andrea Cropley, Partner and Head of Irwin Mitchell’s Corporate team in the North of England said:

Expert Opinion
Nationally and in Yorkshire, the manufacturing sector performed well during Q2. The number of deals across the UK was at its highest level for six years whilst here in the region we have seen three consecutive quarters of deal volume growth.

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

“Last year manufacturing companies in the region were the subject of 19 deals that were PE backed, whilst so far this year the figure stands at just six. This trend doesn’t appear to be unique to the Yorkshire region, in fact only 16% of manufacturing M&A in 2014 Q2 involved private equity.

“The sector is certainly proving to be driving a great deal of M&A activity and I expect 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 private equity option whilst they explore opportunities for developing and growing their business.”
Andrea Cropley, Partner

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

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