UK buyout figures for 2000

Larger UK management buyouts reached an all time high of GBP19.5 billion ploughed into 150

deals during 2000, according to research by KPMG Corporate Finance which looked at deals greater than GBP10 million in value. The breakdown of these figures is noted in table A.

The total of 150 larger deals exceeds, by one, 1999 figures. However, in 1999 the value of those 149 deals reached just GBP14.4 billion. This represents an increase in value terms of 39 per cent. The deals that sealed the fate of year 2000 appearing in the last quarter are listed in Table C.

Interest in the UK public to private (PTP) market remains high see Table B.

Charles Milner, UK head of private equity at KPMG Corporate Finance, said: “Public to private activity remains a dominant force in the market with 35 deals worth almost GBP9 billion completing in 2000. This accounts for almost half of the UK buyout market in value terms. Of the top ten deals completed in 2000, four are PTPs, two of which rank in first and second place (MEPC at GBP3.5 billion and United Biscuits at GBP1.5 billion).”

Milner points out that not included in the figures for 2000 are five public to private transactions with an aggregate value of GBP1.36 billion. The reason for their exclusion is that they were announced but not completed before December 31, 2000. The transactions in question are; Burford Holdings at GBP498 million, Fairview Holdings at GBP307 million, Frogmore Estates at GBP293 million, Perkins Foods at GBP250 million and BLP Group at GBP14 million.

Milner continued: “Looking forward to 2001, the debt markets are showing signs of greater caution and this is undoubtedly a critical factor in putting deals together in the current market place. However, with economic fundamentals in the UK sound, substantial funds available for investment and with continuing restructuring as companies and markets consolidate, we firmly believe that the outlook is far from bleak.”