The second quarter of 2004 was the highest value quarter for UK mid-market buyouts since Q3 2000 according to figures published by KPMG. There were 26 mid-market deals in Q2 2004 with a total value of £1.8bn, and there were 29 buyout transactions with a combined value of £4.9bn all together. The average value of transactions has gone up from the same time last year, from £67m to £170m.
Charles Milner, Head of Corporate Finance at KPMG’s Private Equity Group, said: “The market is well up on a like for like basis over last years and the underlying trend is one of robust performance. However, there is certainly no sign of the market overheating, as buyers remain firmly focused on seeking the quality deals. This is reflected by the comparatively long time transactions are taking to convert to completion.”
Three deals were completed in the quarter that broke the £250m barrier. These were the taking private of property group Chelsfield for £1.8bn, the public-to-private of New Look for £699m and the £540m buyout of vending machine producer Autobar by CDC.