AI Issue 8 2017

Acquisition International - August 2017 87 Number and Aggregate Value (mil $) of Healthcare Deals Globally: Q3 2012 - Q3 2017 Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) Q3 2017 122 2,160 Q2 2017 515 7,885 Q1 2017 526 12,337 Q4 2016 479 10,458 Q3 2016 513 14,124 Q2 2016 498 7,033 Q1 2016 506 12,378 Q4 2015 540 21,785 Q3 2015 502 18,247 Q2 2015 417 16,610 Q1 2015 421 10,713 Q4 2014 421 12,806 Q3 2014 409 11,359 Q2 2014 452 12,766 Q1 2014 368 9,727 Q4 2013 399 9,160 Q3 2013 373 18,209 Q2 2013 402 10,251 Q1 2013 364 6,081 Q4 2012 402 6,652 Q3 2012 355 9,845 World region (target) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 North America 1,247 2,188 7,210 2,963 1,511 Far East and Central Asia 2,530 2,367 1,022 1,411 395 Western Europe 8,161 4,107 3,099 1,495 189 Oceania 1,980 704 678 1,882 36 Africa 4 90 1 0 11 Middle East 44 760 112 14 2 Eastern Europe 10 5 21 42 0 South and Central America 149 224 182 78 0 Number of Healthcare Deals by Region: Q3 2016 - Q3 2017 M&A in Healthcare The second quarter of 2017 was extremely impressive in terms of the value of M&A deals targeting companies in the consumer retail sector. In all there were 686 deals worth $58,138 million announced over the course of the three months, according to Zephyr, the M&A database published by Bureau van Dijk. Q2 was a particularly impressive quarter and marked a significant improvement on the opening three months of the year in terms of value (Q1 2017: $15,279 million). Undoubtedly, one of the year’s higher profile deals had a big impact on overall results; Amazon’s agreement to acquire natural and organic food retailer Whole Foods for $13,700 million is the largest deal to have been announced during 2017 within the consumer retail sector and accounts for 24% of the $58,138 million-worth of deal making recorded in Q2. It was followed by another transaction with a big-name target as Sycamore Partners signed on the dotted line to pick up stationery store operator Staples for $6,900 million. In all there have been 14 deals worth more than $1,000 million featuring consumer retail targets signed off during the year to date, with all the top five featuring US targets. Given the prevalence of US targets within the year’s largest deals to date, North America’s position at the top of the regional value rankings is to be expected. The region has so far been targeted in deals worth a combined $44,441 million during 2017. This represents over double second- placed Western Europe, which was targeted in deals worth $20,697 million. Third place was taken by the Far East and Central Asia with $5,298 million. Taking all these developments into account, 2017 has started very well, largely due to Q2’s impressive value result. The $73,417 million recorded for H1 2017 has been surpassed by only three six month periods since the start of 2006, namely H1 2007 ($106,064 million), H2 2014 ($83,247 million) and H1 2015 ($74,951 million). This leaves high hopes for H2. If these deals making levels can be sustained, we could be looking at a very positive year in terms of M&A activity in the consumer retail sector. Consumer Retail M&A Number and Aggregate Value (Mil USD) of Helathcare Deals Globally by Target Sector: 2017 YTD Number and Aggregate Value (Mil USD) of Healthcare Deals Globally by Deal Type: 2006-2017 YTD Deal type Number of deals Aggregate deal value (mil $) Acquisition 6,749 239,491 Institutional buy-out 699 135,048 Minority stake 6,930 80,077 Capital increase 835 24,787 Management buy-out 74 2,502 Merger 89 42 Zephus classification (target) Number of deals Aggregate deal value (mil $) Public Administration, Education, Health Social Services 1,101 19,320 Computer, IT and Internet services 13 1,178 Retailing 51 704 Banking, Insurance & Financial Services 22 673 Chemicals, Petroleum, Rubber & Plastic 3 363 Personal, Leisure & Business Services 37 248 Wholesaling 12 234 Property Services 7 123 Transport, Freight, Storage & Travel Services 4 47 Construction 3 19 Metals & Metal Products 2 8 Mining & Extraction 2 8 Biotechnology, Pharmaceuticals and Life Sciences 1 7 Hotels and Restaurants 3 0