Member Article

Yorkshire deals duo in top 5 2013 buyouts

Two Yorkshire deals were amongst the top five buyouts completed in the UK so far in 2013, according to the latest data published by the Centre for Management Buyout Research (CMBOR) at Imperial College, sponsored by Ernst & Young (EY) and Equistone Partners Europe.

The £400m sale of Harrogate-based PrincipalHayley, a hotel and conference centre chain, by US property investor Starwood Capital, and the £300m buyout of Leeds-based ghd to Lion Capital featured in the league.

There have been nine buyouts so far this year in Yorkshire, with a total value of £1.0bn. In comparison, the same number of deals were completed in the region in the whole of 2012 (9) amounting to £382m. Yorkshire ranked fifth by number of buyouts, out of 12 UK regions.

The North West saw the greatest number of buyouts (16), followed by the South East (14) and Scotland (12).

M&A director, Mark Clephan at EY in Leeds, said: “The figures are reflective of what we are seeing in the regional market. Mid-market deals in the £100-£500m space have held up relatively well, contributing to local activity.

“The fundamentals for a healthy deal market are in place. Confidence is increasing and there is an appetite for deals, but despite these positive signs the market is still relatively fragile and deals are taking longer to complete.”

Steve O’Hare, head of Equistone Partners Europe in the North, said: “These two deals are a testament to the top quality businesses in the region and the highly motivated management teams that we are dealing with. It fills us with confidence that businesses in the region continue to view private equity as a means to achieve long-term growth.”

This was posted in Bdaily's Members' News section by Mark Lane .