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Worst January for Mid-Market M&A in 25 Years

The first month of 2016 delivered only half the number of closed deals as the same month in 2015, making it the least productive January for the middle market since 1991

Yielding a meager 121 completed middle-market deals, January was the least productive month since 1991, based on analyzing data from Thomson Reuters all the way back to 1978. Deal volume for the first month of the year was half that of the same month in the previous year. Total deal value generated in January 2016 was at the lowest point since 2009. (See related chart, showing 10 years of January data.)

The month followed a down year and a dismal fourth quarter for the middle market, which Mergers & Acquisitions defines as deals valued between $10 million on the low end and $1 billion on the high end. The 2015 tally of completed deals fell 200 transactions short of the previous year, a decline of 8 percent. The fourth quarter showed a dramatic dip, with 167 fewer deals closed than the same period a year earlier, representing a 26 percent drop.

In January, for the second month in a row, the Composite score on Mergers & Acquisitions’ Mid-Market M&A Conditions Index (MACI) indicated a contraction. December was the first time the Composite score moved into negative territory since Mergers & Acquisitions began our monthly surveys in the fall of 2013. The component scores for Leads, Signed Letters and Availability of Financing were all at their lowest recorded levels in January, suggesting we will see a prolonged slowdown in the first half of 2016. Participants cited a wide range of concerns, including stock market volatility, declining energy prices, rising interest rates, the slowing of China’s economy and uncertainty in an election year. For more, see Mid-Market M&A Come to a Dead Stop, or is This a Momentary Pause. Having seen many economic cycles come and go, they may be motivated to get out while the going is good. Take Mergers & Acquisitions’ monthly survey.

 Editor’s Note: To measure activity in the middle market, Mergers & Acquisitions looks at transactions that fulfill several requirements: Deals must have a value of roughly $1 billion or less; they must be completed (not just announced) within the timeframe designated; and they must include at least one U.S. company in the role of buyer and/or seller. Excluded from our charts are: recapitalizations; self tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed values, buyers or sellers. Our data provider is Thomson Reuters, which updates its databases continuously. We use the data available at press time. For the accompanying chart, data was collected on Feb. 1, 2016. For this article, we also analyzed data going back to 1978 that was collected on Feb. 8, 2016.

DateAcquirerTargetTarget IndustryValue ($mil)
01/22/16 DSV A/S UTi Worldwide Inc Transportation and Shipping (except air) 970.8
01/15/16 Pinnacle Foods Inc Boulder Brands Inc Wholesale Trade-Nondurable Goods 962.5
01/26/16 Amadeus IT Group SA Navitaire Inc Prepackaged Software 830.0
01/15/16 Protective Life Corp Genworth Life & Annuity-In-for Insurance 661.0
01/11/16 Kinross Gold Corp Barrick Gold Corp-Bald Mtain & Mining 610.0
01/01/16 Treasury Wine Estates Ltd Diageo PLC-US & UK Wine Op Food and Kindred Products 600.0
01/21/16 Svenska Cellulosa AB SCA Wausau Paper Corp Paper and Allied Products 514.5
01/14/16 Horizon Pharma PLC Crealta Pharmaceuticals LLC Drugs 510.0
01/07/16 Dover Corp Tokheim-Dispenser & System Bus Machinery 474.3
01/07/16 Lamar Advertising Co Clear Channel Outdoor Hldg-Ass Advertising Services 458.5
01/15/16 PulteGroup Inc JW Homes LLC-Certain Assets Construction Firms 450.0
01/07/16 Symrise AG Pinova Holdings Inc Chemicals and Allied Products 417.0
01/15/16 Zayo Group Holdings Inc MTS Allstream Holdings Inc Telecommunications 348.5
01/11/16 Liberty Utilities Corp Park Water Co Electric, Gas, and Water Distribution 327.0
01/05/16 Omnicell Inc Aesynt Inc Prepackaged Software 275.0
01/14/16 FireEye Inc iSIGHT Partners Inc Business Services 275.0
01/07/16 Sinocare Inc Nipro Diagnostics Inc Measuring, Medical, Photo Equipment; Clocks 273.0
01/04/16 CONMED Corp SurgiQuest Inc Measuring, Medical, Photo Equipment; Clocks 265.0
01/13/16 HEICO Electn Tech Corp Robertson Fuel Systems LLC Aerospace and Aircraft 255.0
01/06/16 UOP LLC Thomas Russell LLC Construction Firms 240.0
01/04/16 Westinghouse Electric Co LLC CB&I Stone & Webster Inc Business Services 229.0
01/05/16 Shorenstein Realty Services LP Bank of America Plaza,Atlanta Real Estate; Mortgage Bankers and Brokers 220.0
01/26/16 Northwood Investors LLC CeGeREAL SA Investment & Commodity Firms,Dealers,Exchanges 208.7
01/05/16 TransDigm Group Inc Breeze-Eastern Corp Aerospace and Aircraft 205.9
01/15/16 Investor Group Eastridge Mall,San Jose,CA Real Estate; Mortgage Bankers and Brokers 200.0
01/20/16 Brunswick Corp CYBEX International Inc Miscellaneous Manufacturing 195.0
01/04/16 Quality Systems Inc HealthFusion Holdings Inc Prepackaged Software 190.0
01/04/16 Audax Group LP Centric Health Corp-Operations Health Services 188.0
01/07/16 Limetree Bay Holdings LLC Hovensa LLC-St Croix Refinery Oil and Gas; Petroleum Refining 184.0
01/26/16 Tyco International PLC ShopperTrak Corp Business Services 175.0
01/19/16 Armada Hoffler Properties Inc Retail Center Portfolio(11) Retail Trade-General Merchandise and Apparel 170.5
01/14/16 Liberty Intl Holdings Inc Cia de Seg Genes Penta Insurance 162.6
01/04/16 AMN Healthcare Services Inc BE Smith Inc Business Services 160.0
01/14/16 Federal Realty Invstmnt Trust Real Estate Property Portfolio Real Estate; Mortgage Bankers and Brokers 154.0
01/14/16 Sabre Corp Trust Group of Companies Transportation and Shipping (except air) 154.0
01/08/16 Investor Group LaSalle Invest Mgmt- BEST Real Estate; Mortgage Bankers and Brokers 138.9
01/20/16 CryoLife Inc On-X Life Technologies Inc Measuring, Medical, Photo Equipment; Clocks 130.0
01/11/16 Juno Therapeutics Inc AbVitro Inc Drugs 124.9
01/12/16 PTC Inc Kepware Inc Prepackaged Software 118.0
01/20/16 WestRock Co Cenveo Inc-Packaging Business Paper and Allied Products 105.0
01/13/16 Advantech Co Ltd B+B SmartWorx Inc Electronic and Electrical Equipment 99.9
01/25/16 Rambus Inc Bell Identification BV Prepackaged Software 92.2
01/07/16 Allergan PLC Anterios Inc Drugs 90.0
01/11/16 Sotheby's Art Agcy Partners Hldg LP Business Services 85.0
01/28/16 Joes Jeans Inc Robert Graham Holdings LLC Retail Trade-General Merchandise and Apparel 82.5
01/15/16 Liberty Bank,Middletown,CT Naugatuck Valley Finl Corp Savings and Loans, Mutual Savings Banks 77.8
01/04/16 Prosperity Bancshares Inc Tradition Bancshares Inc Commercial Banks, Bank Holding Companies 76.9
01/01/16 Park Sterling Corp First Capital Bancorp Commercial Banks, Bank Holding Companies 71.8
01/04/16 First Merchants Corp Ameriana Bancorp Commercial Banks, Bank Holding Companies 69.6
01/05/16 CoreLogic Inc RELS LLC Business Services 65.0
01/29/16 Diamond Resorts International Intrawest Resort Club Group Co Hotels and Casinos 63.9
01/04/16 Amedisys Inc Infinity HomeCare LLC Health Services 63.0
01/11/16 ExamWorks Group Inc ABI Document Support Svcs Inc Business Services 62.0
01/04/16 Navigant Consulting Inc McKinnis Consulting Services Investment & Commodity Firms,Dealers,Exchanges 62.0
01/07/16 Eagle Creek Renewable Energy Verso Androscoggin Power LLC Electric, Gas, and Water Distribution 62.0
01/08/16 Northfield Bancorp Inc Hopewell Valley Community Bank Commercial Banks, Bank Holding Companies 52.8
01/06/16 First Cash Finl Services Inc Maxi Prenda SA de CV-Pawn(166) Miscellaneous Retail Trade 52.0
01/25/16 Retail Ppty of Americas Inc Merrifield Town Center II Real Estate; Mortgage Bankers and Brokers 45.7
01/04/16 Amcor Ltd Deluxe Packages Paper and Allied Products 45.0
01/08/16 RNTS Media NV Heyzap Inc Prepackaged Software 45.0
01/07/16 Lakeland Bancorp Inc Pascack Bancorp Inc Commercial Banks, Bank Holding Companies 40.8
01/04/16 Cedar Realty Trust Inc E River Pk Shopping Real Estate; Mortgage Bankers and Brokers 39.0
01/15/16 Ainsworth Game Technology Ltd Nova Technologies LLC Miscellaneous Manufacturing 38.0
01/05/16 Almost Family Inc Long Term Solutions Inc Health Services 37.0
01/29/16 Learning Technologies Group Rustici Software LLC Prepackaged Software 37.0
01/07/16 Peak Resorts Inc Hunter Mountain Ski Bowl Inc Hotels and Casinos 36.8
01/01/16 Digirad Corp Project Rendezvous Hldg Corp Health Services 36.0
01/25/16 Sterno Products LLC Northern International Inc Electronic and Electrical Equipment 35.4
01/08/16 NexTier Inc Eureka Financial Corp Savings and Loans, Mutual Savings Banks 35.3
01/19/16 CIENA Corp TeraXion Inc-High Speed Metal and Metal Products 31.9
01/19/16 ExamWorks Group Inc Advanced Medical Reviews Inc Health Services 30.0
01/08/16 Investor Group Interocean Transportation Inc Transportation and Shipping (except air) 30.0
01/04/16 Urban Edge Properties Pan Bay Ctr,Rego Pk,New York Real Estate; Mortgage Bankers and Brokers 27.0
01/25/16 Retail Ppty of Americas Inc Shoppes at Hagerstown Real Estate; Mortgage Bankers and Brokers 27.0
01/12/16 KBR Inc Weatherly Inc Construction Firms 24.5
01/12/16 Allied Motion Technologies Inc Heidrive GmbH Transportation Equipment 21.9
01/14/16 InvenTrust Properties Corp Sonterra Village Shopping Real Estate; Mortgage Bankers and Brokers 21.5
01/07/16 Militello Capital Viera at Whitemarsh Apartments Real Estate; Mortgage Bankers and Brokers 20.4
01/26/16 Marathon Asset Management LP Parque Comercial Bahia Azul Real Estate; Mortgage Bankers and Brokers 20.1
01/04/16 Gulf Island Shipyards LLC LEEVAC Shipyards LLC Transportation Equipment 20.0
01/04/16 Vishay Precision Group Inc Stress-Tek Inc Measuring, Medical, Photo Equipment; Clocks 20.0
01/06/16 Hempel Cos Ryan Cos US Inc-Ret Portfolio Real Estate; Mortgage Bankers and Brokers 19.2
01/31/16 Analogic Corp Oncura Partners Diagnostics Health Services 19.0
01/22/16 StatPro Group PLC Investor Analytics LLC Investment & Commodity Firms,Dealers,Exchanges 16.0
01/01/16 Amer Riviera Bk,Santa Barbara Bank of Santa Barbara,CA Commercial Banks, Bank Holding Companies 15.4
01/05/16 Liquor Stores NA Ltd Birchfield Ventures LLC Miscellaneous Retail Trade 15.0
01/06/16 Financial Institutions Inc Courier Capital Corp Investment & Commodity Firms,Dealers,Exchanges 14.0
01/13/16 Carbonite Inc EVault Inc Business Services 14.0
01/11/16 SurModics Inc NorMedix Inc Health Services 14.0
01/29/16 PBB Bancorp First Mountain Bank,CA Commercial Banks, Bank Holding Companies 13.4
01/04/16 WisdomTree Investments Inc GreenHaven Commodity Services Investment & Commodity Firms,Dealers,Exchanges 11.8
01/11/16 Kimco Realty Corp Owings Mills Mall Real Estate; Mortgage Bankers and Brokers 11.5
01/13/16 New Media Investment Group Inc Times Publishing Co-Erie Printing, Publishing, and Allied Services 11.5
01/13/16 Ultralife Corp Accutronics Ltd Electronic and Electrical Equipment 10.9
01/13/16 MiMedX Group Inc Stability Inc Measuring, Medical, Photo Equipment; Clocks 10.0
01/04/16 Versant Coml Brkg Inc Office Bldg Portfolio(2) Real Estate; Mortgage Bankers and Brokers 9.1
01/05/16 Ferro Corp Ferer Dis Ticaret Stone, Clay, Glass, and Concrete Products 9.0
01/07/16 ShoreTel Inc Corvisa LLC Prepackaged Software 8.5
01/18/16 Viking Partners LLC Overland Pointe Marketplace,KS Real Estate; Mortgage Bankers and Brokers 8.5
01/05/16 Warba Bank KSC ATEL Capital Grp-Equip Investment & Commodity Firms,Dealers,Exchanges 8.2
01/04/16 Riverview Financial Corp Citizens Natl Bk,Meyersdale,PA Commercial Banks, Bank Holding Companies 8.0
01/14/16 Arc Logistics Partners LP Gulf Oil LP-Refined Prod Wholesale Trade-Nondurable Goods 8.0
01/06/16 Umatrin Holding Ltd U MATRIN Worldwide Sdn Bhd Business Services 7.5
01/06/16 iMedX Australia Pty Ltd OzeScribe Pty Ltd Health Services 7.2
01/04/16 Agenus Inc XOMA Corp-Mnfg Facilities Drugs 6.0
01/15/16 USA Technologies Inc VendScreen Inc Computer and Office Equipment 5.6
01/05/16 SuperCom Ltd Leaders in Cmnty Alternatives Business Services 3.0
01/26/16 New Pride Corp SH Maintain Co Ltd Repair Services 2.2
01/03/16 Liberty University New London Airport Air Transportation and Shipping 1.8
01/14/16 Medical Facilities Corp Integrated Med Delivery LLC Health Services 1.8
01/04/16 CannaVest CanX Inc Prepackaged Software 0.5
01/15/16 Mobivity Holdings Corp Livelenz Inc Prepackaged Software 0.5
01/26/16 Equimaxx LLC Magnifico Sp zoo Business Services 0.3
01/01/16 Blackstone Ventures Inc Lattice Biologics Inc Health Services 0.1

Source: Thomson Reuters

 

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