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| Median buyout EV/EBITDA ratios rising |
| | For the second consecutive quarter, median enterprise value to EBITDA for buyouts transactions has risen, reaching 8.4x during 3Q for the highest multiple we've observed since 3Q 2012. Along with that, the median revenue multiple expanded to 1.5x, with the largest jump coming from deals involving an enterprise value greater than $250 million—at a 3.2x median. |
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Our 2016 Global PE Deal Multiples Report: III combines data from the PitchBook Platform with quarterly survey results for a deep dive into insights and current transactional trends. Highlights from our latest edition, which covers deals through 3Q, include: - Debt-to-equity ratios
- Fee levels
- Closing times & earnouts
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| | | | | | | Last chance to forecast 2017 for PE, enter to win $300 |
| What do you think will happen to the private equity industry in 2017?
You have one last chance to share your forecast by taking our 2017 PE Crystal Ball Survey. In exchange for your time (~10 minutes), enter your email in a drawing to win a $300 Amazon gift card. |
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| All responses will be aggregated anonymously and used solely for the production of the report. If you have any questions, reach out at [email protected]. To access last year's Crystal Ball Report, click here. |
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| | | | | | | Apollo pays $1.5B for discounted Lumileds unit |
| A few months after the Committee on Foreign Investments in the US denied an agreed-upon deal in which Philips (NYSE: PHG) would sell its Lumileds lighting unit to a consortium of Chinese investors for $2.8 billion, Apollo Global Management has stepped in to snap up the business at a comparative discount. The firm will pay $1.5 billion to buy an 80.1% interest in Lumileds upon the completion of a deal that values the business at about $2 billion.
The transaction continues a somewhat surprising trend. Besides clear-cut leader CVC Capital Partners, many of the private equity firms that most commonly conduct billion-dollar deals in Europe are based on the opposite side of the Atlantic. Since the start of 2009, 290 PE deals exceeding $1 billion were completed in Europe, according to the PitchBook Platform. And nine of the 13 firms to participate in at least eight such deals are headquartered in the US or Canada. |
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| | | | | | | | Stephen Schwarzman has made $1.5 billion in the past two years, and some other fun (or not-so-fun) notes on private equity executive compensation. [The New York Times]
One of the more 2016 sentences you’ll read: Introducing the hedge fund built by 7,500 crowdsourced coders who were paid in bitcoin. [Wired]
Decades-long decline in American manufacturing jobs got your company down? Maybe it’s time to move to a college town. [The Wall Street Journal]
In an excerpt from Michael Lewis’ new book, a look at how Daryl Morey helped revolutionize the NBA with behavioral economics. [Slate] |
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| Since yesterday, the PitchBook Platform added: | | 162 Deals | 1199 People | 337 Companies | 8 Funds |
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| 2008 Vintage US Buyout Funds with B2B Investments |
| | Median IRR | | | | Top Quartile IRR Hurdle Rate | | | | 1.55x Median TVPI | $1.77B Average Amount Distributed |
| | | | *IRR: net of fees | | 109 Funds in Benchmark » |
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| Deals in Play & Announcements |
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| Bain to buy Camp Australia |
| | Education and Training Services | Australia | Buyout |
| Bain Capital has agreed to acquire Camp Australia, a provider of day care services in schools throughout Australia, in a deal The Australian reports to be for between A$400 million and A$500 million. KKR was reportedly among the other final bidders. Expected to close in early 2017, the acquisition will add to Bain’s existing education portfolio, which includes early childhood and developmental companies Only About Children, Bright Horizons and Rise Education. |
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| | | | | | | H.I.G looks to take Lionbridge private for $350M+ |
| | Commercial Services | Waltham, MA | Public-to-Private Buyout |
| H.I.G. Capital has agreed to acquire marketing company Lionbridge Technologies (NASDAQ: LIOX) for $5.75 per share, a 17% premium over the company’s 60-day weighted average price per share as of December 9 and a figure that values the company at more than $350 million. If the deal is approved by the company’s shareholders after a 45-day go-shop period, it will close in 1Q 2017. Lionbridge stock closed up 4.3% on Monday, at $5.81 per share. |
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| Altamont plucks poultry business in SBO |
| | Food Products | Saint-Lin-Laurentides, Canada | Secondary Buyout |
| | | | | | | Platte River buys Tigur-Sul |
| | Agricultural Chemicals | Shelton, CT | Buyout |
| | | | | | | PE-backed Vaco completes two acquisitions, launches new firm |
| | Healthcare Services | Seattle, WA | Add-on |
| The healthcare IT division of staffing provider Vaco has acquired Pivot Point Consulting, a provider of services related to electronic health record implementation, project management and strategic advisory. Vaco will launch a new healthcare IT services business retaining the Pivot Point Consulting name on January 2. Quad-C Management has backed Vaco since 2014. |
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| | | | | | | SPC-backed aden + anais buys HALO |
| | Consumer Durables | Minnetonka, MN | Add-on |
| Swander Pace Capital portfolio company aden + anais has acquired HALO Innovations, a provider of safe swaddle blankets, bedding and other products for infants. SPC has backed aden + anais, which makes similar soft goods for toddlers, since 2014. The newly combined company will continue to operate both the HALO and aden + anais brands. |
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| AnaCap to buy Barclays' retail business in France |
| | Regional Banks | Paris, France | Buyout |
| AnaCap Financial Partners has agreed to acquire the French retail banking business of Barclays (LON: BARC) in a deal that includes the British bank's branch network, life insurance business, wealth and investment management and brokerage operations. Barclays' French banking business claims €7 billion in AUM and about 140,000 clients. |
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| | | | | | | Apax, Nordic conduct Unilabs deal |
| | Monitoring Equipment | Geneva, Switzerland | Secondary Buyout |
| Apax Partners has agreed to use its ninth flagship fund to acquire Unilabs, a provider of medical testing services, from Apax’s own European and Apax France divisions and Nordic Capital. Apax and Nordic initially acquired their stakes in the company in a 2007 take-private buyout, merging it with the diagnostic division of Capio a year later. Unilabs is an operator of more than 150 laboratories and medical imaging units in Europe, the Middle East and Latin America. |
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| | | | | | | ForeVest spins off from PineBridge |
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| Providence closes second growth fund on $640M |
| | Providence, RI | PE Growth |
| Providence Equity Partners has closed its oversubscribed PSG Fund II on a hard cap of $640 million. The vehicle will be used to invest in lower-middle-market companies in North America operating in the software and technology-enabled services sectors. The firm closed its first strategic growth fund last year on $315 million. |
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