November Deal Tally Keeps 2014 M&A on Track to Beat Recent Years

Completed middle-market transactions dipped in November, hampered by the Thanksgiving holiday and suffering by contrast with a robust October. Nevertheless, 2014 is on track to surpass recent years in deal volume and value. (See related charts.)

When it comes to deal volume, November yielded just 164 closed transactions, down from 249 in October. But with 2,203 deals completed in the first 11 months of the year, 2014 is on track to beat 2012 and 2013 in the number of closed deals.

In deal value, November generated only $21.7 billion, less than the $29.4 billion in October. But with $293 billion worth of deals produced in the first 11 months, 2014 is poised to deliver the best year in since 2007 when it comes to dollars changing hands.

The contrast between November and October is traditionally high. October got a boost from a plethora of networking conferences, such as ACG Philadelphia’s M&A East, ACG Global’s EuroGrowth and ACG Chicago’s Capital Connection; whereas dealmaking slowed down in November, due, at least in part, to Thanksgiving.

As the year drew to a close, dealmakers shifted their focus from sourcing deals to closing them. This shift was evident in our Mid-Market M&A Conditions Index (MACI), a barometer created by Mergers & Acquisitions and sponsored by PwC. Dealmakers polled in November reported less growth in early-stage deal flow than in the previous month but an increased rate of deal completions. 

The biggest middle-market transaction to close in November was the purchase by Platform Specialty Products Corp. (NYSE: PAH) of Chemtura AgroSolutions for nearly $1 billion. The deal marked the second of three recent acquisitions by the specialty chemicals maker in the crop protection space. In October, Platform completed its acquisition of Agriphar for $383 million and announced its intention to buy agricultural chemicals maker Arysta LifeScience Ltd. from PE firm Permira Holdings Ltd. for $3.51 billion.

Below is a list of selected middle-market M&A deals completed in November 2014.

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 November 2014