Leads for new deals rebounded in February, following the middle market’s worst January on record, but deal closings continued to fall, as did availability of financing, according to the Mid-Market M&A Conditions Index (MACI). (See related chart).
While February’s healthy scores for early-stage activities, such as leads and signed letters, may offer hope that dealmaking will pick up later in the year, the tally of completed deals continues to bode ill. The first two months of 2016 delivered just 236 closed middle-market transactions, the worst deal volume for the period since 1991, based on analyzing data from Thomson Reuters. (See the table, below, for a selected list of transactions that were completed in February.)
Also troubling was the score for availability of financing on the MACI (not shown on the chart), which dropped to 35.7, the lowest it’s been since Mergers & Acquisitions began our monthly surveys in the fall of 2013. Derived from monthly surveys of approximately 250 executives, the MACI is a diffusion index. Readings above 50 indicate expansion in M&A activity, and readings below 50 show contraction.
Participants in our survey continued to cite a wide range of macroeconomic and geopolitical concerns, from upcoming U.S. elections to potential interest rate increases, from the refugee crisis in Europe to the slowdown in China, from volatile oil prices to fears of terrorist attacks.
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 $1 billion or less; they must be completed (not just announced) within the timeframe designated; and they must include at least one U.S. company in the role of buyer and/or seller. Excluded from our charts are: recapitalizations; self tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed values, buyers or sellers. Our data provider is Thomson Reuters, which updates its databases continuously. We use the data available at press time.
Key Middle-Market M&A Deals Completed in February 2016
Date | Acquirer | Target | Target Industry | Value ($mil) |
---|---|---|---|---|
02/01/16 | Coty Inc | Hypermarcas SA-Beauty Business | Soaps, Cosmetics, and Personal-Care Products | 986.0 |
02/04/16 | Icahn Enterprises LP | The PEP Boys-Manny Moe & Jack | Miscellaneous Retail Trade | 894.0 |
02/02/16 | NetApp Inc | SolidFire Inc | Computer and Office Equipment | 870.0 |
02/01/16 | comScore Inc | Rentrak Corp | Business Services | 813.2 |
02/05/16 | Mattress Firm Holding Corp | HMK Mattress Holdings LLC | Retail Trade-Home Furnishings | 780.0 |
02/01/16 | TransCanada Corp | Talen Energy Corp-Ironwood | Electric, Gas, and Water Distribution | 654.0 |
02/11/16 | IHS Inc | Oil Price Information Service | Business Services | 650.0 |
02/01/16 | Financial Engines Inc | Mutual Fund Store LLC | Investment & Commodity Firms,Dealers,Exchanges | 584.0 |
02/01/16 | CACI International Inc | L-3 Natl Sec Solutions Inc | Business Services | 550.0 |
02/05/16 | Calpine Corp | Granite Ridge Hldg-Energy Ctr | Electric, Gas, and Water Distribution | 500.0 |
02/18/16 | Cipla (EU) Ltd | InvaGen Pharmaceuticals Inc | Drugs | 500.0 |
02/13/16 | FNB Corp,Naples,Hermitage,PA | Metro Bancorp Inc,Harrisburg | Commercial Banks, Bank Holding Companies | 463.5 |
02/01/16 | CST Brands Inc | Flash Foods Inc | Retail Trade-Food Stores | 425.0 |
02/16/16 | Gray Television Inc | Schurz Commun Inc-Tv & Radio | Radio and Television Broadcasting Stations | 415.3 |
02/01/16 | Mallinckrodt PLC | The Medicines Co-Hemostasis | Drugs | 410.0 |
02/04/16 | MAP Fee Owner LLC | Brandywine Rlty Tr-Office | Real Estate; Mortgage Bankers and Brokers | 398.1 |
02/24/16 | RREEF Funds LLC | West 8th,Seattle,Washington | Real Estate; Mortgage Bankers and Brokers | 370.0 |
02/10/16 | Astellas Pharma Inc | Ocata Therapeutics Inc | Drugs | 362.7 |
02/01/16 | Kinder Morgan Inc | BP Products NA-Terminals(15) | Oil and Gas; Petroleum Refining | 350.0 |
02/02/16 | Securitas AB | Diebold Inc-Business | Electronic and Electrical Equipment | 350.0 |
02/01/16 | ArcLight Capital Partners LLC | TransMontaigne GP LLC | Oil and Gas; Petroleum Refining | 350.0 |
02/23/16 | Comtech Telecommun Corp | TeleCommunication Systems Inc | Prepackaged Software | 329.7 |
02/04/16 | Honeywell International Inc | COM DEV International Ltd | Electronic and Electrical Equipment | 308.4 |
02/26/16 | Computer Sciences Corp | UXC Ltd | Business Services | 296.7 |
02/01/16 | Hudson's Bay Co | Gilt Groupe Inc | Miscellaneous Retail Trade | 250.0 |
02/03/16 | Cubic Corp | GATR Technologies Inc | Communications Equipment | 232.5 |
02/08/16 | Prestige Brands Holdings Inc | DenTek Oral Care Inc | Soaps, Cosmetics, and Personal-Care Products | 225.0 |
02/03/16 | Investor Group | Resolution Ppty-Designer | Real Estate; Mortgage Bankers and Brokers | 218.6 |
02/03/16 | Endologix Inc | TriVascular Technologies Inc | Measuring, Medical, Photo Equipment; Clocks | 202.8 |
02/08/16 | DRA Advisors LLC | Triangle Town Ctr | Real Estate; Mortgage Bankers and Brokers | 174.0 |
02/05/16 | AMETEK Inc | Brookfield Engineering Labs | Measuring, Medical, Photo Equipment; Clocks | 167.0 |
02/02/16 | The Michaels Companies Inc | Lamrite West Inc | Retail Trade-General Merchandise and Apparel | 150.0 |
02/05/16 | Halma PLC | CenTrak Inc | Measuring, Medical, Photo Equipment; Clocks | 140.0 |
02/02/16 | Hillenbrand Inc | Red Valve Co Inc | Metal and Metal Products | 131.9 |
02/01/16 | Westmoreland Coal Co | BHP Billiton Ltd-San Juan Mine | Mining | 127.0 |
02/05/16 | Pozen Inc | Tribute Pharm Canada Inc | Drugs | 125.2 |
02/01/16 | Pacific Premier Bancorp Inc | Security California Bancorp | Commercial Banks, Bank Holding Companies | 118.9 |
02/01/16 | Balchem Corp | Albion Laboratories Inc | Drugs | 111.5 |
02/15/16 | Investor Group | Lion Walk Shopping Centre | Real Estate; Mortgage Bankers and Brokers | 110.4 |
02/16/16 | PGT Inc | WinDoor Inc | Metal and Metal Products | 105.0 |
02/01/16 | Hooker Furniture Corp | Home Meridian Intl Inc | Wood Products, Furniture, and Fixtures | 100.0 |
02/25/16 | Scripps Networks Interactive | The Travel Channel LLC | Radio and Television Broadcasting Stations | 99.0 |
02/08/16 | Gateway Realty Holdings Ltd | Multi-family Properties,CT | Real Estate; Mortgage Bankers and Brokers | 92.5 |
02/18/16 | Aegion Corp | Underground Solutions Inc | Construction Firms | 85.0 |
02/08/16 | Heartland Financial USA Inc | CIC Bancshares Inc | Commercial Banks, Bank Holding Companies | 83.5 |
02/19/16 | RBB Bancorp | TFC Holding Co | Commercial Banks, Bank Holding Companies | 83.3 |
02/01/16 | A&B Properties Inc | Manoa Marketplace | Real Estate; Mortgage Bankers and Brokers | 82.4 |
02/03/16 | PolyOne Corp | Kraton Performance-Business | Rubber and Miscellaneous Plastic Products | 72.0 |
02/04/16 | Xylem Inc | Tideland Signal Corp | Measuring, Medical, Photo Equipment; Clocks | 69.0 |
02/01/16 | Homestreet Inc | Orange County Business Bank | Commercial Banks, Bank Holding Companies | 62.7 |
02/18/16 | Cipla (EU) Ltd | Exelan Pharmaceuticals Inc | Wholesale Trade-Nondurable Goods | 50.0 |
02/25/16 | MindTree Ltd | Magnet 360 LLC | Business Services | 50.0 |
02/08/16 | Infoblox Inc | IID | Business Services | 45.0 |
02/01/16 | II-VI Inc | EpiWorks Inc | Electronic and Electrical Equipment | 43.0 |
02/02/16 | Tower Semiconductor Ltd | Maxim Integrated Prod-fabricat | Electronic and Electrical Equipment | 40.0 |
02/01/16 | Larkin Community Hospital | Palm Springs General Hospital | Health Services | 40.0 |
02/03/16 | Clean Harbors Inc | Vertex Energy Inc-Re-Refinery | Sanitary Services | 35.0 |
02/10/16 | Constellation Healthcare Tech | MDRx Enterprises Inc | Health Services | 30.0 |
02/12/16 | Driftwood Hospitality Mgmt LLC | Saratoga Hilton,New York | Hotels and Casinos | 30.0 |
02/02/16 | Synoptek Inc | EarthLink-IT Services Business | Business Services | 29.0 |
02/09/16 | CieNA Healthcare Mgmt Inc | Laurel Health Care Co | Health Services | 25.8 |
02/18/16 | KeepItSafe Inc | InterCloud Sys Inc-Online | Business Services | 24.0 |
02/12/16 | Argosy Private Equity | Nationwide Industries Inc | Metal and Metal Products | 22.5 |
02/25/16 | Investor Group | APR Energy PLC | Electric, Gas, and Water Distribution | 20.5 |
02/08/16 | Flamel Technologies SA | FSC Holdings LLC | Investment & Commodity Firms,Dealers,Exchanges | 20.3 |
02/10/16 | AiNet | One Market Center,Baltimore,MD | Business Services | 20.0 |
02/08/16 | Perk.com Inc | Viggle Inc-Viggle Business | Prepackaged Software | 19.7 |
02/01/16 | Sevcon Inc | BASSI Srl | Electronic and Electrical Equipment | 19.0 |
02/04/16 | Merit Medical Systems Inc | CryoLife Inc-HeRO Graft | Measuring, Medical, Photo Equipment; Clocks | 18.5 |
02/08/16 | Addus HealthCare Inc | S Shore Home Health Svcs Inc | Health Services | 18.0 |
02/08/16 | GTT Communications Inc | Telnes Broadband | Business Services | 18.0 |
02/01/16 | CLARCOR Inc | TDC Filter Mnfg Inc-Asts | Machinery | 11.0 |
02/02/16 | Carter Validus Mission | Waco Data Center | Business Services | 10.7 |
02/16/16 | ID Global Solutions Corp | FIN Holdings Inc | Prepackaged Software | 9.0 |
02/22/16 | Industrias Bachoco SAB De CV | Amer Foods Grp LLC-Fully | Food and Kindred Products | 8.0 |
02/11/16 | Consolidated Water Co Ltd | Aerex Industries Inc | Machinery | 7.7 |
02/01/16 | Acme United Corp | Vogel Capital Inc | Machinery | 7.0 |
02/04/16 | Perma-Pipe Inc | Bayou Perma-Pipe Canada Ltd | Chemicals and Allied Products | 6.5 |
02/01/16 | CareTrust REIT Inc | New Haven,San Angelo,Texas | Health Services | 4.9 |
02/18/16 | Gen-Probe Inc | DiagnoCure Inc-PCA3 prostate | Drugs | 4.0 |
02/01/16 | XG Technology Inc | Integrated Microwave Tech LLC | Communications Equipment | 3.0 |
02/09/16 | Almirall SA | Thermigen LLC | Measuring, Medical, Photo Equipment; Clocks | 2.5 |
02/22/16 | Iron Tank Resources Corp | Spriza Inc | Business Services | 1.7 |
02/18/16 | Investor Group | CXR Anderson Jacobson SAS | Wholesale Trade-Durable Goods | 1.3 |
02/01/16 | New Jersey Mining Co | Butte Highlands JV LLC | Mining | 0.4 |
02/02/16 | AHAlife Holdings Ltd | Bezar Inc | Business Services | 0.2 |
02/10/16 | Halitron Inc | PRD Holdings Inc | Rubber and Miscellaneous Plastic Products | 0.2 |
02/12/16 | Luxor Industrial Corp | Mill Frame LLC | Construction Firms | 0.1 |
02/04/16 | David Lelong | Sport Endurance Inc | Retail Trade-Food Stores | 0.1 |
Source: Thomson Reuters |