M&A Slump Deepened in March

March yielded only 88 completed deals, significantly lower than the same month the previous year (147) and lower than the previous month (107), according to data from Thomson Reuters. The results from Mergers & Acquisitions’ Mid-Market M&A Conditions Index (MACI) delivered more bad news but also some potential bright spots. (See related chart.

After a brief rise in early-stage activities in February, leads for new deals flattened, and signed letters of intent dropped in March, according to the MACI. But availability of financing picked up in March (to 43.0, from an historic low of 35.7 in February). And divestitures absolutely soared (to 88.3, up from 51.9). Thanks to these two components (not shown on the chart), the March composite score rose to 54.6, up from the February score of 51.5. 

Over the last several months, dealmakers have cited a wide range of concerns, including China’s economic slowdown, the refugee crisis in Europe, threats of terrorism and the uncertainty of U.S. presidential elections. Credit tightening over the last several months has also played a role in slowing dealmaking activity. Most sources interviewed by Mergers & Acquisitions recently say they expect to see better news in the second half of the year, especially as interest rates now seem unlikely to rise.

See the table, below, for a list of deals that closed in March.

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 March 2016        
Date Acquirer Target Target Industry Value ($mil)
03/01/16 Sun Life Assurance Co of Canad Disability ReIns Mgmt Svcs Inc Insurance 975.0
03/03/16 Entergy Corp Union Power Partners-Union Electric, Gas, and Water Distribution 948.0
03/09/16 Lupin Ltd GAVIS Pharms LLC,Novel Labs Drugs 880.0
03/01/16 Fluor Corp Stork Holding BV Machinery 756.2
03/22/16 Lone Star Funds N&W Global Vending SpA Machinery 751.4
03/14/16 Western Gas Partners LP Springfield Pipeline LLC Oil and Gas; Petroleum Refining 750.0
03/01/16 Country Club Plaza KC Highwoods Ppty Inc-Country Real Estate; Mortgage Bankers and Brokers 660.0
03/22/16 Rizvi Traverse Management LLC RealD Inc Communications Equipment 560.1
03/01/16 Sazerac Co Inc Brown-Forman-Brand Assets Food and Kindred Products 543.5
03/15/16 GTCR LLC Lytx Inc Business Services 500.0
03/02/16 Harrison Street Re Capital LLC Campus Crest Communities Inc Investment & Commodity Firms,Dealers,Exchanges 455.2
03/01/16 Yadkin Financial Corp NewBridge Bancorp Commercial Banks, Bank Holding Companies 449.4
03/04/16 Select Medical Holdings Corp Physiotherapy Assoc Hldg Inc Health Services 400.0
03/17/16 Thales SA Vormetric Inc Prepackaged Software 400.0
03/01/16 DaVita HealthCare Partners Inc The Everett Clinic Inc Health Services 385.0
03/25/16 Littelfuse Inc TE Connectivity-Circuit Bus Electronic and Electrical Equipment 350.0
03/02/16 Sinclair Broadcast Group Inc Tennis Channel Inc Radio and Television Broadcasting Stations 350.0
03/09/16 Web.com Group Inc Yodle Inc Advertising Services 342.0
03/11/16 SS&C Technologies Holdings Inc Citigroup Inc-Alternative Inv Investment & Commodity Firms,Dealers,Exchanges 321.0
03/04/16 Cisco Systems Inc Leaba Semiconductor Ltd Electronic and Electrical Equipment 320.0
03/09/16 ISQ Global Infrastructure Fund WPX Energy Inc-San Juan Basin Oil and Gas; Petroleum Refining 309.0
03/01/16 Cerberus Capital Management LP Avon Prod Inc-N Amer Bus Soaps, Cosmetics, and Personal-Care Products 300.0
03/09/16 Trend Micro Inc TippingPoint Technologies Inc Computer and Office Equipment 300.0
03/21/16 Summit Materials Inc Boxley Materials Co Stone, Clay, Glass, and Concrete Products 252.1
03/16/16 Keane Group Holdings LLC Trican Well Svc Ltd-US Asts Construction Firms 247.0
03/22/16 RPX Corp Inventus LLC Business Services 232.0
03/17/16 IDEX Corp Akron Brass Co Metal and Metal Products 224.2
03/02/16 Greystar Equity Partners VIII The Chelsea,Chelsea,NY Real Estate; Mortgage Bankers and Brokers 211.3
03/21/16 Helen of Troy Ltd Steel Technology LLC Miscellaneous Manufacturing 210.0
03/03/16 Fiserv Inc ACI Worldwide Inc-Cmnty Finl Prepackaged Software 200.0
03/31/16 Swiss Re Corporate Solutions IHC Risk Solutions LLC Insurance 152.5
03/04/16 Investor Group Immobiliare Laurentiana Srl Real Estate; Mortgage Bankers and Brokers 142.4
03/01/16 The Dow Chemical Co Chemours Co-Aniline Facility Chemicals and Allied Products 140.0
03/15/16 BlueRoad Ventures Brauwin RE-Ret Asts(48) Real Estate; Mortgage Bankers and Brokers 139.0
03/21/16 Heritage Insurance Hldg Inc Zephyr Insurance Co Inc Insurance 134.0
03/17/16 CalAmp Corp LoJack Corp Communications Equipment 129.3
03/01/16 Honeywell International Inc RSI Video Technologies Business Services 123.0
03/04/16 DSW Inc eBuys Inc Business Services 117.5
03/17/16 First Midwest Bancorp Inc NI Bancshares Corp,IL Savings and Loans, Mutual Savings Banks 105.5
03/29/16 Thai Hot Investment Co Ltd Alliance HealthCare Svcs Inc Health Services 102.5
03/03/16 Zagg Inc Mophie Inc Rubber and Miscellaneous Plastic Products 100.0
03/17/16 Related Coml Portfolio Ltd Related Cos LP-60 Columbus Real Estate; Mortgage Bankers and Brokers 100.0
03/21/16 Celladon Corp Eiger BioPharmaceuticals Inc Drugs 92.7
03/28/16 Finmarc Management Inc First Potomac Rlty Tr-Cert Real Estate; Mortgage Bankers and Brokers 90.5
03/01/16 German American Bancorp,IN River Valley Bancorp Commercial Banks, Bank Holding Companies 87.2
03/03/16 Ampco-Pittsburgh Corp Akers AB Metal and Metal Products 80.0
03/14/16 Seacoast Bkg Corp of Florida Floridian Financial Group Inc Commercial Banks, Bank Holding Companies 78.6
03/01/16 Orora Ltd Integracolor LLC Printing, Publishing, and Allied Services 77.0
03/04/16 Vestar Development Co Bowles Crossing,,Littleton Real Estate; Mortgage Bankers and Brokers 76.0
03/14/16 Shareholders QIG Group LLC Business Services 75.7
03/15/16 II-VI Inc ANADIGICS Inc Electronic and Electrical Equipment 75.5
03/14/16 CTS Corp CTG Advanced Materials LLC Miscellaneous Retail Trade 73.0
03/07/16 RealPage Inc NWP Svcs Corp Business Services 68.0
03/02/16 CenterState Banks,Davenport,FL Cmnty Bk of S Florida Inc Commercial Banks, Bank Holding Companies 66.9
03/24/16 Meridian Bioscience Inc Magellan Biosciences Inc Measuring, Medical, Photo Equipment; Clocks 66.0
03/30/16 Actuant Corp FourQuest MENAC Oil and Gas; Petroleum Refining 60.0
03/11/16 Ameris Bancorp Jacksonville Bancorp Inc Commercial Banks, Bank Holding Companies 58.9
03/15/16 Prophet Equity LLC Total Plastics(AM Castle & Co) Wholesale Trade-Nondurable Goods 55.0
03/02/16 Digital Barriers PLC Brimtek Inc Electronic and Electrical Equipment 45.0
03/31/16 Ascent Aerospace LLC Gemcor II LLC Metal and Metal Products 44.0
03/17/16 magicJack VocalTec Ltd North American Telecommunicati Prepackaged Software 42.0
03/31/16 Wintrust Financial Corp Generations Bancorp Inc Commercial Banks, Bank Holding Companies 30.0
03/03/16 GBC Oil Co Ltd Stream Oil & Gas Ltd Oil and Gas; Petroleum Refining 29.3
03/02/16 Natl Storage Affiliates Trust NAI Norwood Grp Inc-Granite Transportation and Shipping (except air) 28.8
03/01/16 Amedisys Inc Associated Home Care Health Services 28.0
03/01/16 Fidelity Southern Corp Amer Enterprise Bankshares Inc Commercial Banks, Bank Holding Companies 27.0
03/01/16 Superior Uniform Group Inc Bamko Inc Business Services 26.8
03/30/16 Kohan Retail Investment Group Pennsylvania REIT-Lycoming Real Estate; Mortgage Bankers and Brokers 26.4
03/24/16 Entertainment One Ltd Renegade 83 Inc Radio and Television Broadcasting Stations 23.0
03/24/16 Revere Bank,Laurel,Maryland Blueridge Bank,Frederick,MD Commercial Banks, Bank Holding Companies 20.0
03/10/16 Revizer Technologies Ltd sterkly LLC Prepackaged Software 20.0
03/16/16 Renewable Energy Group Inc Sanimax Energy LLC-Biodiesel Electric, Gas, and Water Distribution 19.5
03/16/16 Bain Capital LLC Asia Pacific Medical Group Health Services 19.3
03/09/16 Barnes & Noble Education Inc LoudCloud Systems Inc Business Services 17.9
03/08/16 Park Lawn Corp Midwest Memorial Group LLC Real Estate; Mortgage Bankers and Brokers 16.0
03/07/16 Spark Therapeutics Inc Genable Technologies Ltd Drugs 15.2
03/28/16 General Atomics International Miltec Corp Aerospace and Aircraft 14.6
03/02/16 Boditech Med Inc Immunostics Inc Drugs 13.6
03/02/16 Cantel Medical Corp N Amer Science Assoc-Division Measuring, Medical, Photo Equipment; Clocks 13.5
03/22/16 Propel Business Solutions Inc Conversion Innovations Inc Prepackaged Software 11.8
03/04/16 SP Jagged Peak LLC Jagged Peak Inc Prepackaged Software 11.5
03/03/16 Patrick Industries Inc The Progressive Group Inc Wholesale Trade-Durable Goods 11.0
Source: Thomson Reuters        
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