AI Magazine Issue 8 2018

Acquisition International - Issue 8 2018 57 Number and Aggregate Value (mil USD) of Healthcare Deals Globally: 2006-2018 YTD (as at 24 July 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) H2 2018 101 8,056 H1 2018 991 49,621 H2 2017 1,124 30,833 H1 2017 1,077 24,360 H2 2016 1,008 19,355 H1 2016 847 17,233 H2 2015 862 37,348 H1 2015 845 27,308 H2 2014 834 24,443 H1 2014 823 22,515 H2 2013 766 27,239 H1 2013 770 16,343 H2 2012 760 16,561 H1 2012 728 13,291 H2 2011 661 10,570 H1 2011 617 23,992 H2 2010 604 19,416 H1 2010 618 13,367 H2 2009 366 7,867 H1 2009 324 4,917 H2 2008 396 7,147 World region (target) 2014 2015 2016 2017 2018 North America 763 793 859 981 532 Western Europe 386 388 350 456 212 Far East and Central Asia 170 209 300 413 201 Eastern Europe 144 83 124 137 61 Oceania 139 168 149 114 52 South and Central America 26 33 28 44 21 Africa 18 19 23 31 6 Middle East 6 16 18 21 4 Number of Healthcare Deals by Region: 2006 - 2018 YTD (as at 24 July 2018) Bureau van Dijk Zephyr shows there have been 1,276 deals worth an aggregate USD 58,991 million announced in the sector in H1 2018, representing an improvement of 8 per cent by value against a decline of 14 per cent by volume from 1,481 deals worth USD 54,875 million in H2 2017. This suggests buyers favoured single deals with higher valuations over prolific dealmaking in the six months under review. On a year-on-year comparison, both volume and value declined 12 per cent and 17 per cent, respectively, from 1,456 deals worth USD 70,902 million in H1 2017. However, value was not completely stripped away as H1 2018 recorded a higher value than a number of other H1 periods, including H1 2016 (USD 55,258 million), H1 2013 (USD 55,419 million), H1 2011 (USD 32,694 million) and H1 2010 (USD 24,908 million). Value was largely supported by investment in Western Europe as 611 deals worth an aggregate USD 32,076 million have been announced in the consumer retail sector in the region so far this year. North America, which topped the value rankings last year, is currently third in the table with USD 7,170 million, behind second-placed Far East and Central Asia with USD 10,448 million. The two largest consumer retail deals signed off in 2018 to date both featured a Western European target and together represent 41 per cent of total value for the region. The largest M&A deal in the consumer retail sector to have been announced this year involved J Sainsbury agreeing to acquire supermarket operator Asda Group from Walmart for USD 10,019 million. The deal will create one of the leading UK- based grocery-to-clothing retailers, with combined revenues of around GBP 51,000 million. This was followed by Richemont, via RLG Italia Holding, purchasing the remaining shares it did not own in online fashion clothing retailer YOOX Net-a-Porter Group for USD 3,118 million. The third largest consumer retail deal signed off this year features Russian supermarket chain operator Magnit receiving USD 2,624 million from VTB Bank’s VTB Infrastrukturnye Investitsii in exchange for a 29 per cent stake. US-based Kroger Company’s convenience store business was targeted in the fourth-largest transaction as the operations were picked up by Euro Garages for USD 2,150 million. While dealmaking in the global consumer retail market has slowed in H1 2018 in comparison to other recent half yearly periods, there have still been a number of high value deals signed off and if just a small number of sizeable investments are made in H2, 2018 could prove to be a successful year for deals in the sector. However, it is also worth noting that consumer spending has rapidly changed in recent years, with more shoppers favouring online stores over brick and mortar businesses. This is causing a number of businesses to go into administration, with Toys R Us and Maplin filing for Chapter 11 bankruptcy in 2018, while UK-based baby and maternity clothes retailer Mothercare continues to close stores as part of a rescue plan. Consumer Retail Number and Aggregate Value (Mil USD) of Healthcare Deals Globally by Target Sector: 2018 to date (as at 24 July 2018) Number and Aggregate Value (Mil USD) of Healthcare Deals Globally by Deal Type: 2006-2018 to date (as at 24 July 2018) Deal type Number of deals Aggregate deal value (mil $) Acquisition 7,490 271,911 Institutional buy-out 851 167,825 Minority stake 7,755 94,722 Capital increase 953 26,230 Management buy-out 81 3,652 Merger 93 42 Zephus classification (target) Number of deals Aggregate deal value (m USD) Public Administra- tion, Education, Health Social Services 1,009 54,919 Computer, IT and Internet services 11 2,817 Banking, Insurance & Financial Services 13 2,587 Retailing 28 1,803 Personal, Leisure & Business Services 51 901 Property Services 9 575 Wholesaling 3 69 Hotels and Restau- rants 5 61 Biotechnology, Phar- maceuticals and Life Sciences 11 55 Industrial, Electric & Electronic Machinery 4 19 Chemicals, Petro- leum, Rubber & Plastic 5 2 Transport, Freight, Storage & Travel Services 1 0 Construction 2 0 Communications 1 0