Issue 3 2019

Acquisition International - Issue 3 2019 63 Number and Aggregate Value (mil USD) of Real Estate Deals Globally: 2006-2018 YTD (as at 28th February 2019) Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2019 1,087 15,715 H2 2018 3,424 96,088 H1 2018 3,234 100,726 H2 2017 2,874 113,594 H1 2017 2,929 81,423 H2 2016 2,123 50,992 H1 2016 2,424 56,973 H2 2015 1,985 55,210 H1 2015 2,196 75,273 H2 2014 2,131 70,894 H1 2014 2,120 67,672 H2 2013 2,162 78,150 H1 2013 1,718 58,027 H2 2012 1,641 42,302 H1 2012 1,553 44,273 H2 2011 1,371 21,729 H1 2011 1,254 45,504 H2 2010 1,250 28,119 H1 2010 1,319 33,254 H2 2009 1,099 52,941 H1 2009 980 32,997 World region (target) 2015 2016 2017 2018 2019 North America 1,773 2,108 2,880 3,788 771 Western Europe 1,012 951 1,130 1,269 133 Far East and Central Asia 496 505 655 705 111 Eastern Europe 664 788 903 672 39 Oceania 115 100 101 109 15 South and Central America 35 34 43 55 14 Africa 72 56 77 52 3 Middle East 13 9 12 12 2 Number of Real Estate Deals Globally: 2006-2018 YTD (as at 28th February 2019) Bureau van Dijk The value of global private equity investment was the third-highest of the last 12months in February, despite volume declining slightly to 406 deals worth USD 63,597 million, according to Zephyr, the M&A database published by Bureau van Dijk. This suggests investors favoured single deals with higher valuations over prolific dealmaking in the month under review. In terms of value, private equity investment more than doubled month-on-month from USD 30,235 million and increased by 17 per cent year-on-year from USD 54,351 million, while volume was down 26 per cent from 550 deals in January and 23 per cent from 528 deals in February 2018. 2019 has started promisingly as there have been 956 deals worth an aggregate USD 93,832 million signed off in the opening two months of the year. In comparison to other years, value represents 15 per cent of the total figure for last year, when 6,977 deals worth USD 634,163 million were announced. Ten deals each worth more than USD 2,000 million have already been signed off since the start of 2019 and have significantly helped boost overall value in the year to date as together they represent 49 per cent of total private equity investment (USD 93,832 million). The largest deal accounts for 12 per cent of total value in 2019 and involved Hellman & Freidman, the Blackstone Group, JMI Management and Canada Pension Plan Investment Board buying US-based payroll and workforce management group Ultimate Software Group for USD 11,000 million. This was followed by La Caisse de depot et placement du Quebec investing USD 7,000 million in US building maintenance and janitorial services provider Allied Universal Security Services. In total, 11 of the top 20 private equity investments by value in 2019 targeted companies based in the US, with others targeted including AssuredPartners, Ellie Mae and Tallgrass Energy. Blackstone and Apollo Global Management featured more than once in the top deals of the opening two months of the year to date. These involved the USD 4,306 million acquisition of UK-based plastic bottles manufacturer RPC Group and the USD 3,000 million purchase of Cox Enterprises’ 14 regional television stations by Apollo, as well as the USD 3,273 million deal to pick up a 44 per cent stake in Tallgrass Energy by Blackstone. To sum up, 2019 has started promisingly, with a number of large private equity deals already signed off and February representing the third- largest month in terms of value in the last year. However, one or two very large transactions could make the difference when comparing to other years. Value has declined in each consecutive year since 2015 (USD 579,331 million; 2016: USD 443,151 million; 2017: USD 638,723 million; 2018: USD 634,163 million). Private Equity Number and Aggregate Value (mil USD) of Real Estate Deals Globally by Target Sector: 2006-2019 YTD (as at 28th February 2019) Number and Aggregate Value (mil USD) of Real Estate Deals Globally: 2006-2018 YTD (as at 28th February 2019) Deal yearly value (Announced date) Number of deals Aggregate deal value (m $) February 2019 407 6,926 January 2019 680 8,788 December 2018 1,114 15,871 November 2018 487 11,209 October 2018 497 26,367 September 2018 401 14,106 August 2018 448 8,880 July 2018 477 19,655 BvD sectors (target) Number of deals Aggregate deal value Property Services 30,486 1,460,966 Construction 16,014 262,043 Business Services 249 36,043 Wholesale 94 31,340 Computer Software 19 23,839 Utilities 27 22,909 Banking, Insurance & Financial Ser- vices 131 16,885 Transport, Freight & Storage 35 15,019 Mining & Extraction 9 13,743 Chemicals, Petro- leum, Rubber & Plastic 16 13,454 Biotechnology and Life Sciences 8 13,361 Retail 61 10,847 Travel, Personal & Leisure 103 10,350 Industrial, Electric & Electronic Ma- chinery 26 7,701 Public Administration, Education, Health Social Services 34 1,346 Food & Tobacco Manufacturing 19 922 Transport Manufac- turing 2 263