UK buyouts in Q1 2001 reached a combined value of GBP5.5 billion across 34 transactions, only those that were classified as larger buyouts that are over GBP10 million in value were counted.
These latest figures come from KPMG Corporate Finance. The UK head of equity there said: “Our research indicates that the larger end of the buyout market is still healthy. The private equity marketplace is certainly very active and there is no reason to suppose that the volume of transactions will not pick up again.”
Public to private transactions boosted the figures. This segment of the buyout market accounted for nine deals with a combined value of GBP2.03 billion. Four of these nine deals came from the property sector and accounted for GBP1.6 billion of the total value. Interestingly a further six public to private transactions, with a combined value of GBP1.2 billion, were announced during Q1 2001 but they have yet to complete.
In Q1 2001 the overall larger buyout figures were boosted by the circa GBP1 billion buyout of Homebase, which was led by Schroder Ventures, and the public to private of Burford Holdings for GBP920 million. Also there was the GBP670 million Center Parcs transaction led by DB Capital Partners and the GBP625 million deal for Bass Pubs strongly contested and eventually won by Nomura’s principal finance group.
In comparison in Q1 2000 31 larger buyouts took place with a combined value of GBP3.6 billion and of that figure 11 were public to private transactions, which had a combined worth of GBP1.3 billion.