Q2 exits: American Securities headlines with selloff of Metaldyne

  • American Securities lead exit values with sale to Blackstone
  • U.S.-based PE-backed M&A: 161 Q2 deals totaled over $18.3 bln
  • Industrials led industries by exit count, 15.5 percent of all exits

Private equity exit activity in the U.S. picked up in the second quarter.

Overall, U.S.-based PE saw 161 exits totaling $18.3 billion in Q2 2017, mirroring Q1’s count and up 13 percent in value. If the first-half value totals are indicative, 2017’s exit numbers will decline from recent years. But second halves typically show boosts in activity.

The second-quarter totals also outpaced by 14 percent the six-year average of quarterly exit count (141 deals) but came in 22 percent below the value ($23.6 billion).

Of deals with disclosed value, the largest was American Axle & Manufacturing Holdings absorbing Metaldyne Performance Group. The producer of vehicular powertrain components was sold by American Securities for a bit more than $3.2 billion.

Of this quarter’s 161 exits so far, 41 had disclosed values. In that group, four reached the billion-dollar plateau, including the Metaldyne deal.

GTCR dealt software publisher, Cision US for $2.4 billion. The quarter’s second-largest exit was conducted by Capitol Acquisition Corp. Clayton Dubilier & Rice followed, selling its interest in Mauser Group NV, a producer of polystyrene foam products, to BWAY Corp for $2.3 billion. Consolidated Container Co rounded out the foursome. Bain Capital exited its hold on the developer of plastic packages to Loews Corp for $1.2 billion.

Leading the Q2 2017 exit pace was the industrial sector, accounting for 25, or 15.5 percent, of the 161 deals. Consumer products and services placed second with 21 deals (13 percent) and healthcare followed with 18 (11.2 percent).

IPOs keep climbing

PE-backed IPOs posted their highest count in more than two years. Seven companies made their debuts on the public market, up from five in 2017’s opening frame. This marks the most sizable count since Q2 2015.

The value, though, fell slightly from last quarter, to $2 billion from Q1’s $3.1 billion.

The largest of the offerings came from Gardner Denver Holdings, collecting $826 million. The provider of flow-control technology is backed by Kohlberg Kravis Roberts.

WideOpenWest was next in line. The sixth-largest cable operator in the U.S. went public for $310 million and is sponsored by Crestview Partners.

Emerald Expositions Events hit the public market for $263.5 million. The leader in B2B trade shows is backed by Onex Group.

As the accompanying “PE-Backed IPO Exits by Quarter” graph shows, IPO activity is erratic, with a history of sharp fluctuation without much, if any, correlation.

Download exit data and charts here: Q2 2017 Exits


Additional Data

Buyout M&A Exits By Quarter

PE-Backed IPO Exits By Quarter

Q2 2017 Buyout Exits Through M&A

Q2 2017 M&A Exits Industry Breakdown

Select Q2 2017 Buyout Exits Through IPO