Member Article

Yorkshire deal activity doubles in the first quarter of 2014

Deal activity involving Yorkshire-based manufacturing firms was twice as high in the first quarter of 2014 compared to the last three months of 2013, according to a new report.

The latest Experian data and analysis from law firm, Irwin Mitchell, Yorkshire manufacturers were the target of 19 deals during the first three months of 2014 compared to a total of nine during October, November and December last year.

The number was also four more than the number completed during the same period in 2013.

The Yorkshire region’s share of manufacturing M&A activity across England reached 10.3% in Q1 – roughly in line with the percentage during the whole of 2013 (10.4%).

This was up from 7.9% during the previous year and higher than all other regions in the UK apart from the South East and the North West.

The share across the North West increased to 14.7%, whilst the South East strengthened its number one position with 36.6% of the total volume of completed manufacturing M&A.

The report also highlighted a fall in the percentage of manufacturing deals which were private equity backed. Nationally in the first quarter of 2014, the figure stood at 15.3% whilst during 2013, 28.5% of manufacturing M&A was backed by PE.

Although Yorkshire companies have been the subject of just four private equity-backed manufacturing deals during 2014, its national share increased to 14.2%.

Andrea Cropley, partner and head of Irwin Mitchell’s Corporate team in the North of England said: “The manufacturing sector performed well during Q1 with a 12% increase in the number of deals compared to the previous three months period.

“Although this is very encouraging and hopefully will continue during the rest of the year, it was disappointing to see a reduction in the amount of deals backed by private equity.

“It isn’t just the Yorkshire region where there has been a fall; in fact only 15% of manufacturing M&A in 2014 Q1 involved private equity.

“The sector is certainly proving to be driving a great deal of M&A activity and I expect that there will be an increase in levels as the year continues.

“Faced with this growing appetite and an improving economic picture, ambitious companies here in the region should seriously consider this option whilst they explore opportunities for developing and growing their business.”

This research is based on data sourced from Experian Corpfin’s proprietary M&A deals database.

This was posted in Bdaily's Members' News section by Clare Burnett .