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

DateAcquirerTargetTarget IndustryValue ($mil)
02/01/16Coty IncHypermarcas SA-Beauty BusinessSoaps, Cosmetics, and Personal-Care Products986.0
02/04/16Icahn Enterprises LPThe PEP Boys-Manny Moe & JackMiscellaneous Retail Trade894.0
02/02/16NetApp IncSolidFire IncComputer and Office Equipment870.0
02/01/16comScore IncRentrak CorpBusiness Services813.2
02/05/16Mattress Firm Holding CorpHMK Mattress Holdings LLCRetail Trade-Home Furnishings780.0
02/01/16TransCanada CorpTalen Energy Corp-IronwoodElectric, Gas, and Water Distribution654.0
02/11/16IHS IncOil Price Information ServiceBusiness Services650.0
02/01/16Financial Engines IncMutual Fund Store LLCInvestment & Commodity Firms,Dealers,Exchanges584.0
02/01/16CACI International IncL-3 Natl Sec Solutions IncBusiness Services550.0
02/05/16Calpine CorpGranite Ridge Hldg-Energy CtrElectric, Gas, and Water Distribution500.0
02/18/16Cipla (EU) LtdInvaGen Pharmaceuticals IncDrugs500.0
02/13/16FNB Corp,Naples,Hermitage,PAMetro Bancorp Inc,HarrisburgCommercial Banks, Bank Holding Companies463.5
02/01/16CST Brands IncFlash Foods IncRetail Trade-Food Stores425.0
02/16/16Gray Television IncSchurz Commun Inc-Tv & RadioRadio and Television Broadcasting Stations415.3
02/01/16Mallinckrodt PLCThe Medicines Co-HemostasisDrugs410.0
02/04/16MAP Fee Owner LLCBrandywine Rlty Tr-OfficeReal Estate; Mortgage Bankers and Brokers398.1
02/24/16RREEF Funds LLCWest 8th,Seattle,WashingtonReal Estate; Mortgage Bankers and Brokers370.0
02/10/16Astellas Pharma IncOcata Therapeutics IncDrugs362.7
02/01/16Kinder Morgan IncBP Products NA-Terminals(15)Oil and Gas; Petroleum Refining350.0
02/02/16Securitas ABDiebold Inc-BusinessElectronic and Electrical Equipment350.0
02/01/16ArcLight Capital Partners LLCTransMontaigne GP LLCOil and Gas; Petroleum Refining350.0
02/23/16Comtech Telecommun CorpTeleCommunication Systems IncPrepackaged Software329.7
02/04/16Honeywell International IncCOM DEV International LtdElectronic and Electrical Equipment308.4
02/26/16Computer Sciences CorpUXC LtdBusiness Services296.7
02/01/16Hudson's Bay CoGilt Groupe IncMiscellaneous Retail Trade250.0
02/03/16Cubic CorpGATR Technologies IncCommunications Equipment232.5
02/08/16Prestige Brands Holdings IncDenTek Oral Care IncSoaps, Cosmetics, and Personal-Care Products225.0
02/03/16Investor GroupResolution Ppty-DesignerReal Estate; Mortgage Bankers and Brokers218.6
02/03/16Endologix IncTriVascular Technologies IncMeasuring, Medical, Photo Equipment; Clocks202.8
02/08/16DRA Advisors LLCTriangle Town CtrReal Estate; Mortgage Bankers and Brokers174.0
02/05/16AMETEK IncBrookfield Engineering LabsMeasuring, Medical, Photo Equipment; Clocks167.0
02/02/16The Michaels Companies IncLamrite West IncRetail Trade-General Merchandise and Apparel150.0
02/05/16Halma PLCCenTrak IncMeasuring, Medical, Photo Equipment; Clocks140.0
02/02/16Hillenbrand IncRed Valve Co IncMetal and Metal Products131.9
02/01/16Westmoreland Coal CoBHP Billiton Ltd-San Juan MineMining127.0
02/05/16Pozen IncTribute Pharm Canada IncDrugs125.2
02/01/16Pacific Premier Bancorp IncSecurity California BancorpCommercial Banks, Bank Holding Companies118.9
02/01/16Balchem CorpAlbion Laboratories IncDrugs111.5
02/15/16Investor GroupLion Walk Shopping CentreReal Estate; Mortgage Bankers and Brokers110.4
02/16/16PGT IncWinDoor IncMetal and Metal Products105.0
02/01/16Hooker Furniture CorpHome Meridian Intl IncWood Products, Furniture, and Fixtures100.0
02/25/16Scripps Networks InteractiveThe Travel Channel LLCRadio and Television Broadcasting Stations99.0
02/08/16Gateway Realty Holdings LtdMulti-family Properties,CTReal Estate; Mortgage Bankers and Brokers92.5
02/18/16Aegion CorpUnderground Solutions IncConstruction Firms85.0
02/08/16Heartland Financial USA IncCIC Bancshares IncCommercial Banks, Bank Holding Companies83.5
02/19/16RBB BancorpTFC Holding CoCommercial Banks, Bank Holding Companies83.3
02/01/16A&B Properties IncManoa MarketplaceReal Estate; Mortgage Bankers and Brokers82.4
02/03/16PolyOne CorpKraton Performance-BusinessRubber and Miscellaneous Plastic Products72.0
02/04/16Xylem IncTideland Signal CorpMeasuring, Medical, Photo Equipment; Clocks69.0
02/01/16Homestreet IncOrange County Business BankCommercial Banks, Bank Holding Companies62.7
02/18/16Cipla (EU) LtdExelan Pharmaceuticals IncWholesale Trade-Nondurable Goods50.0
02/25/16MindTree LtdMagnet 360 LLCBusiness Services50.0
02/08/16Infoblox IncIIDBusiness Services45.0
02/01/16II-VI IncEpiWorks IncElectronic and Electrical Equipment43.0
02/02/16Tower Semiconductor LtdMaxim Integrated Prod-fabricatElectronic and Electrical Equipment40.0
02/01/16Larkin Community HospitalPalm Springs General HospitalHealth Services40.0
02/03/16Clean Harbors IncVertex Energy Inc-Re-RefinerySanitary Services35.0
02/10/16Constellation Healthcare TechMDRx Enterprises IncHealth Services30.0
02/12/16Driftwood Hospitality Mgmt LLCSaratoga Hilton,New YorkHotels and Casinos30.0
02/02/16Synoptek IncEarthLink-IT Services BusinessBusiness Services29.0
02/09/16CieNA Healthcare Mgmt IncLaurel Health Care CoHealth Services25.8
02/18/16KeepItSafe IncInterCloud Sys Inc-OnlineBusiness Services24.0
02/12/16Argosy Private EquityNationwide Industries IncMetal and Metal Products22.5
02/25/16Investor GroupAPR Energy PLCElectric, Gas, and Water Distribution20.5
02/08/16Flamel Technologies SAFSC Holdings LLCInvestment & Commodity Firms,Dealers,Exchanges20.3
02/10/16AiNetOne Market Center,Baltimore,MDBusiness Services20.0
02/08/16Perk.com IncViggle Inc-Viggle BusinessPrepackaged Software19.7
02/01/16Sevcon IncBASSI SrlElectronic and Electrical Equipment19.0
02/04/16Merit Medical Systems IncCryoLife Inc-HeRO GraftMeasuring, Medical, Photo Equipment; Clocks18.5
02/08/16Addus HealthCare IncS Shore Home Health Svcs IncHealth Services18.0
02/08/16GTT Communications IncTelnes BroadbandBusiness Services18.0
02/01/16CLARCOR IncTDC Filter Mnfg Inc-AstsMachinery11.0
02/02/16Carter Validus MissionWaco Data CenterBusiness Services10.7
02/16/16ID Global Solutions CorpFIN Holdings IncPrepackaged Software9.0
02/22/16Industrias Bachoco SAB De CVAmer Foods Grp LLC-FullyFood and Kindred Products8.0
02/11/16Consolidated Water Co LtdAerex Industries IncMachinery7.7
02/01/16Acme United CorpVogel Capital IncMachinery7.0
02/04/16Perma-Pipe IncBayou Perma-Pipe Canada LtdChemicals and Allied Products6.5
02/01/16CareTrust REIT IncNew Haven,San Angelo,TexasHealth Services4.9
02/18/16Gen-Probe IncDiagnoCure Inc-PCA3 prostateDrugs4.0
02/01/16XG Technology IncIntegrated Microwave Tech LLCCommunications Equipment3.0
02/09/16Almirall SAThermigen LLCMeasuring, Medical, Photo Equipment; Clocks2.5
02/22/16Iron Tank Resources CorpSpriza IncBusiness Services1.7
02/18/16Investor GroupCXR Anderson Jacobson SASWholesale Trade-Durable Goods1.3
02/01/16New Jersey Mining CoButte Highlands JV LLCMining0.4
02/02/16AHAlife Holdings LtdBezar IncBusiness Services0.2
02/10/16Halitron IncPRD Holdings IncRubber and Miscellaneous Plastic Products0.2
02/12/16Luxor Industrial CorpMill Frame LLCConstruction Firms0.1
02/04/16David LelongSport Endurance IncRetail Trade-Food Stores0.1
Source: Thomson Reuters