Buyouts Set for Third-straight Year of Record Breaking Deals
U.S.
buyout shops are expected to record their third-straight year of
record-breaking deal volume, according to Q3 numbers released this week by
Buyouts Magazine. At the end of
third quarter in 2006, U.S. private equity firms participated in a total of 770
control-stake deals valued at $181 billion in disclosed value
(including leverage), compared to $198 billion for 840 such deals in all
of 2005. That's less than $20 billion in deals away from their third
record-breaking year in a row.
Buyouts Magazine also reports that there
is approximately $150 billion worth of agreed-upon deals that will close
either this quarter or in Q1 2007. Included in this pipeline are HCA and
Freescale.
U.S.
firms participated in 259 control-stake transactions valued at $56 billion
in the third quarter of 2006. The largest deals include in 3rd
quarter include $12 billion TDC buyout and the $9.7 billion VNU
deal.
|
Top buyout deals by PE firms |
||
| Date Announced | Target | Value($B) |
| 10/24/1988 | RJR Nabisco Inc. | 25.10 |
| 7/24/2006 | HCA Inc. | 21.22 |
| 9/15/2006 | Freescale Semiconductor | 17.6 |
| Tentative (Oct'06) | Harrah's Entertainment Inc. | 15.05 |
| 8/28/2006 | Kinder Morgan Inc. | 14.61 |
| 8/18/2006 | Coles Myer Ltd. | 13.22 |
| 6/27/2006 | Univision Communications Inc. | 12.11 |
| 3/28/2005 | SunGard Data Systems Inc. | 10.96 |
| Source: Thomson Financial (via WSJ.com). *Value is excluding debt | ||
U.S. leveraged buyout activity in 2006 is set to top last year's record of 356 deals worth $131.5 billion closed as 371 LBOs worth about $124.6 billion closed in the first nine months, according to Dealogic.
U.S. private equity firms continue to raise money at a breakneck pace, with $172.2 billion raised in 253 funds at the close of the third quarter of 2006 -- an increase of about 72% in capital from this point last year, according to Dow Jones Private Equity Analyst.
