North West buyouts hit £670m at halfway mark

The North West private equity market saw a steady increase in the first half of 2015 as the value of buyouts reached £670m, according to research from the Centre for Management Buyout Research (CMBOR).

The research, sponsored by Equistone Partners Europe Limited, revealed that the volume of buyouts also gained momentum. There were six buyouts in Q2, compared to four in Q1, which demonstrates an increase in investor confidence.

Outside of London and the South East, the North West has continued to be the most the most active exit market, with a total of 13 exits in H1 2015 valued at £1.4bn, representing the continued growth in strength of the regional market.

A standout transaction was the IPO of Shawbrook Bank, previously Manchester-based Whiteaway Laidlaw, which reached a value of £725m when it listed in April this year.

Other notable exits include the sale of Birkenhead-headquartered manufacturer Survitec to international private equity firm Onex Corporation in a £448m deal, and the sale of Alchemy Partners’ stake in Revolution Bars Group via an £86m float in February.

Andi Tomkinson, investment director at Equistone Partners Europe in the North of England, said: “It is positive to see a strong and growing investment and exit market in the region. With the stability of now having a new government in place, we expect to see even more deal processes getting underway and more transactions coming to fruition in the second half of 2015.

“The number of significant exits in the region shows that we’re still very much in a seller’s market and it’s positive to see that IPOs remain a popular route to exit for businesses.”

Overall, the UK remains Europe’s most active market for private equity, with the highest total for exits (£21.6bn) and buyout deals (£10.5bn).

The UK also had the highest numbers of buyout deals (101) and exits (92) for the first six months of 2015, with France a distant second with 43 deals and 29 exits. The UK also saw three of the top 10 deals by value for the half year (Advanced Computer Software, Sky Bet and Trainline) as well as five of the top 10 exits by value for the half year (Auto Trader, United Biscuits, New Look, Wood Mackenzie and Iglo Group).

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