United Kingdom and Republic of Ireland M&A Review - Experian Business Research: 2020 MarketIQ
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MarketIQ United Kingdom and Republic of Ireland M&A Review Experian Business Research: 2020
The resilience of the UK’s mergers and acquisition market was clear to see in 2020, with dealmakers seemingly quick to adapt to the logistical difficulties of completing transactions in the Covid-19 era. After a hiatus in the second quarter of the year, deal volume approached pre-pandemic levels in Q4. A flurry of multi-billion pound acquisitions towards the end of the year meant that annual transaction value eventually eclipsed that of 2019 – a really startling recovery. Tech deals had already started to dominate the UK’s M&A landscape in recent years, and our enforced move to a more online existence looks to have only accelerated that process. Meanwhile, having spent time taking stock and shoring up the capital positions of their portfolio companies in the immediate aftermath of lockdown, the private equity sector played an increasingly key role on the buy-side in the last two quarters of 2020. We would expect this to continue as we move further into the new year. However, whether the wider market will undergo any dampening effect due to January’s third national coronavirus lockdown in England remains to be seen. Jane Turner Research Manager, Experian MarketIQ
Contents
United Kingdom M&A Activity 2
London 12
South East 16
South West 20
East of England 24
Midlands 28
Yorkshire and Humber 32
North West 36
North East 40
Wales 44
Scotland 48
Northern Ireland 52
Republic of Ireland 56
Appendix 60
Deal Proforma 61
About Experian MarketIQ 62
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 1United Kingdom M&A activity
M&A activity in the UK is slowly recovering, after a sharp shock in the immediate aftermath of the
Covid-19 pandemic. Experian recorded a total of 5,867 transactions involving a UK-based firm in
2020, which represented a decline of 15% on the 6,894 deals carried out in 2019 and the lowest
figure since 2012; second quarter deal making was at its lowest ebb since the first quarter of 2009 at
the height of the financial crisis. Although annual volume is significantly down on previous years, the
direction of travel looks positive – the number of deals announced in Q4 was around 42% higher than
Q2 - and it does seem clear that we’re now seeing increasing numbers of companies again look to
growth by acquisition. Meanwhile, a flurry of big-ticket deal making at the end of the year – with over
£120bn worth of acquisitions carried out in the last two months alone – pushed the overall value of
UK deals for 2020 to £356bn, up by 79% on a year on year basis.
Deals of the Year acquire Cambridge-based chip manufacturer Arm, seen
For the second year in a row, 2020’s largest deal took as one of the ‘crown jewels’ of the domestic technology
place in the financial data sector. This saw US ratings sector, from Japanese investment firm Softbank for
agency S&P Global agree to take over London-based IHS £30.5bn. Elsewhere, the biggest British pharmaceutical
Markit in a £33bn all-share merger that aims to create a deal in almost two decades saw AstraZeneca announce
major rival to market leader Bloomberg. Consolidation plans to acquire US rare disease specialist Alexion for
within the telecoms market continued apace with the £29bn and there were multi-billion transactions in
£31.4bn combination of cable operator Virgin Media and the insurance, supermarket retail and payment
mobile telecommunications network O2, while a much- processing sectors.
commented on deal saw US-based Nvidia agree to
UK deals
2011 – 2020
9000 500000
450000
8000
400000
7000
350000
6000
300000
5000
250000
4000
200000
3000 150000
2000 100000
1000 50000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 2 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewIndustry by some way the most active lender, providing funds in
As we noted in our third quarter report, levels of deal support of 78 transactions. Meanwhile, the private equity
activity in the UK varied widely between industry sectors sector played an ever more prominent role in the UK
in 2020. On the one hand, as we might expect given the market, funding 1,491 deals in 2020 – up from 1,402 in
rapid changes to working and leisure patterns imposed by 2019. Business Growth Fund, Mercia Fund Management
the pandemic, M&A in the technology media and telecoms and Maven Capital were the UK's leading investment firms
arena has been particularly brisk. Infocomms, fuelled by by deal volume.
deals in the cloud computing and software segments,
accounted for 28% of all transactions – up from 22% Advisers
in 2019 - and saw volume increase by 5% year on year, Gateley was the UK’s leading legal adviser to the
accompanied with a 148% upturn in deal value. There was M&A market in 2020 by deal volume, working on 194
also decent growth in professional services, but most transactions - predominantly in the small to mid-market
other sectors saw activity fall in comparison with 2019’s - with Pinsent Masons (135 transactions) and Harrison
figures; real estate, where deals were down by 29% and Clark Rickerbys (132) making up the top three. US firm
financial services (a 39% decline) seemed hardest hit. Latham & Watkins, which advised on the buy-side of
Nvidia’s takeover of Arm, Aon’s merger with Willis
Funding Towers Watson and Clarivate’s deal to acquire CPA Global,
While there were a number of distress-driven deals in the narrowly topped the value table with £68.4bn worth of
immediate wake of the initial lockdown, particularly in the deals, just ahead of Freshfields (£68bn). BDO advised on
retail, hospitality and transport sectors, we’re yet to see 177 transactions in 2020 to lead our financial adviser table
anything like the deluge of insolvency transactions that by deal volume ahead of KBS Corporate and RSM, while
were carried out in the wake of the financial crisis. The the US investment banks again dominated the
lending environment remains favourable, and what we are value table – Morgan Stanley’s £169bn worth of deals
seeing is a significant increase in refinancing transactions, enough to secure first place in front of JP Morgan and
with a 300% increase in the number of UK firms taking Goldman Sachs.
on new debt or refinancing existing facilities. HSBC was
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 3United Kingdom M&A activity
Top ten deals: UK
2020
Date Consideration Deal type Target Bidder
(£m)
30/11/2020 32,984 Acquisition IHS Markit Ltd, London S&P Global Inc, USA
07/05/2020 31,400 Merger O2/Virgin Media, Slough
and Reading
31/07/2020 30,500 Acquisition Arm Ltd, Cambridge NVIDIA Corp, USA
14/12/2020 29,210 Acquisition Alexion Pharmaceuticals AstraZeneca Plc,
Inc, USA Cambridge
09/03/2020 22,894 Acquisition Willis Towers Watson Plc, Aon Plc, London
Dublin
09/03/2020 8,090 Acquisition Malaysian and Thai Charoen Pokphand Group
Businesses of Tesco Plc, Co Ltd, Thailand
Welwyn Garden City
18/11/2020 7,200 Acquisition RSA Insurance Group Plc, Intact Financial Corp,
London Canada
02/10/2020 6,800 IBO Asda Stores Ltd, Leeds Issa Brothers and TDR
Capital
07/12/2020 6,740 Reverse Paysafe Group Holdings Foley Trasimene
Takeover Ltd, London Acquisition Corp II, USA
12/08/2020 5,370 Acquisition Sunrise Communications Liberty Global Plc, London
Group AG, Switzerland
UK deal volume by region
2020
224
275
168
l London l North East
l South East l Wales
323
l South West l Scotland
695 2242
l East of England l Northern Ireland
l Midlands
538
l Yorkshire & Humber
l North West
825
927
550 528
Page 4 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewUnited Kingdom M&A activity
UK and Ireland M&A by region
2020
Value (£m) Volume
Region 2020 2019 % Change 2020 2019 % Change
London 182,422 132,613 37.56% 2,242 2,611 -14.13%
South East 27,788 21,511 29.18% 927 1,023 -9.38%
South West 10,369 13,511 -23.26% 528 543 -2.76%
East of England 79,481 20,290 291.72% 550 565 -2.65%
Midlands 6,573 15,292 -57.02% 825 989 -16.58%
Yorkshire & Humber 11,600 7,952 45.88% 538 665 -19.10%
North West 14,994 7,433 101.72% 695 861 -19.28%
North East 691 1,009 -31.52% 323 352 -8.24%
Wales 2,918 1,628 79.24% 224 225 -0.44%
Scotland 4,982 9,534 -47.74% 275 547 -49.73%
Northern Ireland 392 1,626 -75.89% 168 251 -33.07%
Republic of Ireland 48,903 72,372 -32.43% 490 455 7.69%
United Kingdom 355,795 198,279 79.44% 5,867 6,894 -14.90%
UK deals by Industry
2020
2020 2019 % change from 2019
Sector Volume Value (£m) Volume Value (£m) Volume Value
Infocomms 1,659 163,222 1,579 65,887 5.07% 147.73%
Professional services 1,390 86,210 1,304 26,720 6.60% 222.64%
Manufacturing 1,293 114,272 1,507 56,388 -14.20% 102.65%
Financial services 1,042 118,530 1,712 76,190 -39.14% 55.57%
Wholesale and retail 962 77,462 1,174 41,202 -18.06% 88.01%
Support services 654 26,439 691 14,201 -5.35% 86.17%
Construction 405 12,267 458 14,232 -11.57% -13.81%
Real estate 344 21,351 487 35,410 -29.36% -39.70%
Health 313 1,180 388 2,208 -19.33% -46.55%
Mining and quarrying 196 13,174 238 15,281 -17.65% -13.78%
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 5United Kingdom M&A activity
Legal adviser rankings by volume
Current rank Previous rank Legal adviser Volume1
1 1 GATELEY 194
2 7 PINSENT MASONS 135
3 5 HARRISON CLARK RICKERBYS 132
4 6 CMS 124
5 2 ADDLESHAW GODDARD 118
6 3 MILLS & REEVE 117
7 11 SHOOSMITHS 114
8 9 SQUIRE PATTON BOGGS 102
9 8 WARD HADAWAY 102
10 13 KNIGHTS 90
11 4 DLA PIPER 83
12 10 EVERSHEDS SUTHERLAND 81
13 12 FREETHS 79
14 17 DWF 74
15 - WEIGHTMANS 62
16 19 MUCKLE 58
17 15 BROWNE JACOBSON 52
18 18 TLT 51
19 23 TUGHANS 51
20 24 HILL DICKINSON 47
Page 6 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewUnited Kingdom M&A activity
Legal adviser rankings by value
Current rank Previous rank Legal adviser Value (£m)
1 11 LATHAM & WATKINS 68,413
2 9 FRESHFIELDS BRUCKHAUS DERINGER 68,056
3 19 SULLIVAN & CROMWELL 48,046
4 22 DAVIS POLK & WARDWELL 42,482
5 13 SHEARMAN & STERLING 41,917
6 15 ALLEN & OVERY 38,439
7 1 WEIL GOTSHAL & MANGES 37,528
8 10 SKADDEN ARPS SLATE MEAGHER & FLOM 33,183
9 4 CLIFFORD CHANCE 32,618
10 2 SLAUGHTER AND MAY 27,826
11 16 ARTHUR COX 24,790
12 6 HOGAN LOVELLS 24,619
13 - SIMPSON THACHER & BARTLETT 22,155
14 5 KIRKLAND & ELLIS 18,688
15 3 ASHURST 17,102
16 8 LINKLATERS 15,069
17 23 DLA PIPER 8,898
18 17 JONES DAY 7,466
19 7 NORTON ROSE FULBRIGHT 6,488
20 - GOWLING WLG 6,054
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 7United Kingdom M&A activity
Financial adviser rankings by volume
Current rank Previous rank Financial adviser Volume1
1 3 BDO 177
2 4 KBS CORPORATE 145
3 2 RSM 141
4 1 GRANT THORNTON 107
5 7 NUMIS SECURITIES 96
6 14 HAZLEWOODS 93
7 6 KPMG 66
8 5 PWC 62
9 12 CENKOS SECURITIES 62
10 11 EY 60
11 8 PEEL HUNT 59
12 15 ALANTRA 53
13 - BARCLAYS 52
14 9 FINNCAP 52
15 - AZETS 51
16 10 MAZARS 50
17 16 BENCHMARK INTERNATIONAL 50
18 26 MORGAN STANLEY 44
19 22 GOLDMAN SACHS 43
20 - CAIRN FINANCIAL ADVISERS 38
Page 8 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewUnited Kingdom M&A activity
Financial adviser rankings by value
Current rank Previous rank Financial adviser Value (£m)
1 2 MORGAN STANLEY 168,661
2 21 JP MORGAN 127,344
3 1 GOLDMAN SACHS 114,966
4 9 CREDIT SUISSE 75,124
5 7 BANK OF AMERICA MERRILL LYNCH 66,207
6 13 CITIGROUP 54,083
7 3 BARCLAYS 53,027
8 4 JEFFERIES 42,095
9 5 EVERCORE PARTNERS 37,281
10 8 LAZARD 16,006
11 6 ROTHSCHILD & CO 12,922
12 14 NUMIS SECURITIES 11,753
13 - DEUTSCHE BANK 10,984
14 20 RBC CAPITAL MARKETS 10,340
15 11 UBS 9,732
16 - BNP PARIBAS 6,282
17 18 MOELIS & CO 5,289
18 12 HSBC 5,236
19 28 PWC 4,803
20 17 EY 4,215
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 9United Kingdom M&A activity
Debt provider rankings by volume
Current rank Previous rank Debt provider Volume1
1 1 HSBC 78
2 2 BARCLAYS 23
3 4 NATWEST 23
4 3 LLOYDS BANKING GROUP 20
5 8 THINCATS 20
6 5 SANTANDER 18
7 6 SHAWBROOK BANK 18
8 7 MAVEN 18
9 29 CLYDESDALE AND YORKSHIRE BANK 13
10 11 CAPLE 8
11 15 OAKNORTH BANK 7
12 - BNP PARIBAS 5
13 - SHARD CREDIT PARTNERS 5
14 17 DEVELOPMENT BANK OF WALES 5
15 24 ARBUTHNOT 5
16 - INVESTEC 5
17 20 GOLDMAN SACHS 4
18 25 DEUTSCHE BANK 4
19 - SECURE TRUST BANK 4
20 - INNOVATE UK 4
Page 10 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewUnited Kingdom M&A activity
Capital provider rankings by volume
Current rank Previous rank Investment firm Volume1
1 1 BUSINESS GROWTH FUND 57
2 15 MERCIA FUND MANAGEMENT 38
3 2 MAVEN CAPITAL PARTNERS 33
4 7 DEVELOPMENT BANK OF WALES 29
5 3 LDC 26
6 20 SEEDCAMP 22
7 32 TECHSTART VENTURES 20
8 19 OCTOPUS VENTURES 18
9 10 FORESIGHT GROUP 18
10 5 IQ CAPITAL PARTNERS 17
11 - SEEDRS 15
12 18 INVEST NORTHERN IRELAND 14
13 26 AMADEUS CAPITAL PARTNERS 13
14 - DRAPER ESPRIT 12
15 - OXFORD SCIENCES INNOVATION 12
16 12 MMC VENTURES 12
17 38 GRESHAM HOUSE 12
18 - IP GROUP 11
19 6 SCOTTISH INVESTMENT BANK 11
20 23 INNOVATE UK 11
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 11London
Summary close at the end of January. Elsewhere, there were two
The London M&A market had made a strong start to the big-ticket transactions in the insurance sector. Here, Aon
year, picking up in the first quarter after Brexit jitters agreed the £23bn acquisition of Willis Towers Watson, a
dampened activity in the second half of 2019 - before the combination that will create the world’s largest insurance
Covid-19 crisis hit. There were 2,242 deals involving a brokerage – subject to regulatory approvals – and
London company in 2020, a decline of 14% from the 2,602 venerable London insurer RSA agreed to be taken off the
transactions carried out in 2019 and almost 1,000 deals Stock Exchange by a Canadian and Danish consortium in
under the market’s recent high in 2018 (when over 3,100 a £7.2bn deal. Another notable deal saw Paysafe Group
deals were announced). The Q2 total of 473 deals was – the London-based payments business backed by CVC
the lowest recorded in the capital since Q1 2009, when and Blackstone – agree to merge with US black check
the City was grappling with the credit crunch and, while company Foley Trasimene Acquisition Corp II in one of the
volumes did improve slightly in Q3 and Q4, they still lag first major SPAC deals involving a British firm.
significantly behind the levels we’d expect to see during
a ‘normal’ year. In value terms however, the picture was Industry
very different. A flurry of high value deal making towards There were some industries that bucked the downward
the end of the year pushed the value of London deals to trend in London. As expected, deals in the tech space
£182bn - up by 32% year on year – with the fourth quarter dominated - as our move to online was forcibly
figure of £82bn among the highest quarterly total on accelerated - and were up by 7% year on year in volume
Experian record. London remains the engine room of UK terms and by some 46% in value. In all there were 855
deal making, with a role in 38% of all UK transactions and tech / infocomms deals in 2020, accounting for 38% of
contributing just over half of the total value of UK deals. all London M&A, with private equity and investment from
the United States driving activity. Among the largest tech
Deals of the Year deals of the year were Clarivate’s takeover of IP software
A transformative, cross border merger in the financial firm CPA Global for £5.2bn – another all share deal –
data sector was London’s biggest deal of the year. This Cisco’s £543m acquisition of cloud specialist IMImobile
saw US ratings agency S&P Global agree to buy London- and Montagu Private Equity-backed vehicle Tiger UK
based IHS Markit in a £33bn, all share transaction, Bidco’s £350m deal to buy-out the education software
the latest in a number of multi-billion takeovers in the solutions business of Capita. Other sectors to see
data area as companies jostle for market share - last volumes up on 2019 were professional services, support
year’s largest deal in an adjacent space, London Stock services, healthcare and utilites but elsewhere there
Exchange’s £27bn acquisition of Refinitiv, is slated to was a decline in deal volume, with financial services, real
estate and hospitality the worse effected.
London deals
2011 – 2020
3500 250000
3000
200000
2500
150000
2000
1500 100000
1000
50000
500
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 12 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewLondon
Funding Advisers
As we found nationally, the private equity sector played a CMS worked on 62 deals over the year to retain its 2019
prominent role in London deal making in 2020, with deals status as London’s leading adviser by transaction volume,
funded by private equity up by around 9% year on year. with Gateley (53 deals) and Shoosmiths (47) making up the
Over a quarter of all transactions in the capital involved top three. US firms Sullivan & Cromwell (£47bn worth of
private equity investment, up from 20% in 2019; seed- deals), Davis Polk & Wardwell (£42bn) and Weil Gotshal &
stage venture capital fund Seedcamp was most active, Manges (£35bn) headed up the value table. RSM advised
completing 15 deals, followed by Octopus Ventures and on 63 deals to finish up as the year’s most active financial
Draper Esprit (each with ten deals). HSBC was London’s adviser to deal makers in the capital, while US investment
main source of debt funding, followed by Barclays bank Goldman Sachs topped the value ranking with deals
and Shawbrook. worth £94bn.
Top ten deals: London
2020
Date Consideration Deal type Target Bidder
(£m)
30/11/2020 32,984 Acquisition IHS Markit Ltd, London S&P Global Inc, USA
09/03/2020 22,894 Acquisition Willis Towers Watson Plc, Dublin Aon Plc, London
18/11/2020 7,200 Acquisition RSA Insurance Group Plc, Intact Financial Corp,
London Canada
07/12/2020 6,740 Reverse Paysafe Group Holdings Ltd, Foley Trasimene
Takeover London Acquisition Corp II, USA
12/08/2020 5,370 Acquisition Sunrise Communications Group Liberty Global Plc, London
AG, Switzerland
29/07/2020 5,246 Acquisition CPA Global Ltd, Channel Islands Clarivate Plc, London
26/02/2020 4,600 Secondary iQSA Holding Sarl, London Blackstone Group
Buy-Out
29/06/2020 4,057 Acquisition Petrochemicals Business of BP INEOS Group Ltd, London
Plc, London
09/10/2020 3,930 Acquisition London Stock Exchange Group Euronext NV, The
Holdings Italia SpA, Italy (from Netherlands
London Stock Exchange Group
Plc, London)
08/12/2020 3,800 Acquisition G4S Plc, London Allied Universal Topco
LLC, USA
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 13London
Legal adviser rankings
Current rank Previous rank Legal adviser Volume1
1 1 CMS 62
2 8 GATELEY 53
3 6 SHOOSMITHS 47
4 9 PINSENT MASONS 46
5 5 SQUIRE PATTON BOGGS 44
6 3 ADDLESHAW GODDARD 33
7 7 MILLS & REEVE 33
8 4 EVERSHEDS SUTHERLAND 32
9 2 DLA PIPER 31
10 23 MACFARLANES 30
Current rank Previous rank Legal adviser Value (£m)
1 23 SULLIVAN & CROMWELL 47,733
2 25 DAVIS POLK & WARDWELL 42,056
3 1 WEIL GOTSHAL & MANGES 34,479
4 8 LATHAM & WATKINS 34,201
5 9 SKADDEN ARPS SLATE MEAGHER & FLOM 31,686
6 - STIKEMAN ELLIOTT 30,822
7 14 FRESHFIELDS BRUCKHAUS DERINGER 28,137
8 15 HOGAN LOVELLS 23,907
9 - MATHESON 23,117
10 16 ARTHUR COX 22,903
Page 14 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewLondon
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 4 RSM 63
2 2 BDO 53
3 7 NUMIS SECURITIES 46
4 1 GRANT THORNTON 36
5 - HAZLEWOODS 35
6 14 KBS CORPORATE 32
7 11 CENKOS SECURITIES 31
8 3 PEEL HUNT 27
9 16 GOLDMAN SACHS 26
10 25 EY 26
Current rank Previous rank Financial adviser Value (£m)
1 1 GOLDMAN SACHS 94,227
2 2 MORGAN STANLEY 86,229
3 12 CREDIT SUISSE 73,635
4 - JP MORGAN 52,040
5 15 CITIGROUP 48,571
6 4 JEFFERIES 34,086
7 7 BANK OF AMERICA MERRILL LYNCH 27,629
8 3 BARCLAYS 22,387
9 6 LAZARD 10,505
10 17 RBC CAPITAL MARKETS 10,187
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 15South East
Summary Industry
As the year ended with the country once again under Infocomms was again the most active industry sector for
strict Covid prevention measures, the latest figures show deal activity in the South East, recording 272 deals, an
that deal activity in the South East fell by just over 9% increase of 2.3% on 2019. Valuations in this sector fell by
year on year whilst deal values rose by 29%, in a trend 16%. Professional services was the second most active
mirrored by a handful of regions. Positively, deal activity sector, recording 242 deals worth £4.7bn, representing
picked up to near normal levels in the second half of the an increase of 2.5% by volume and a massive 123% by
year, after experiencing a sharp dip at the start of the value. Manufacturing followed in third place, with its 222
pandemic - and a 40% rise in the number of mega deals reported deals worth £9.8bn, in comparison to 286 deals
along with a 36% rise in the mid-market proved that the worth just £4.2bn in 2019. With most sectors seeing a
region’s appetite for deal making had not been dampened decline in numbers as the country continues to battle
by the crisis. Valuations in all deal segments were up year against the pandemic, valuations remained high as the
on year, with the value of mega deals recording a near markets bounce back towards pre-Covid levels.
60% increase. The South East accounted for 7.8% of all UK
deal values and 15.8% of deal volumes. Funding
Private equity backed deals were up to just under 20%
Deals of the Year of deals where funding arrangements were disclosed,
Two of the region’s largest deals were announced in from 16% in the same period last year. Oxford Sciences
the final quarter, including the seventh mega deal of the Innovation was the most active investor in the region,
year. In December, telecoms group Vodafone, based in having supported 11 businesses. LDC was in second
Newbury, paid £1.3bn to acquire the remaining 23.2% of place with seven deals, with the region attracting
the shares it didn’t already own in Kabel Deutschland interest from a wide number of PE and venture capital
Holding, a German communications group. In November, investors with money to spend. Approximately 55% of
the Marlow-based Aero Connectivity business of Cobham deals were funded from existing resources, and debt-
was acquired by US-based TransDigm Group for £723m. funded deals accounted for 6%. HSBC was the lender of
The South East’s largest deal of the year, the merger choice providing funding to support on nine transactions,
between O2 and Virgin Media announced in May, is under followed by NatWest on six and Barclays on five.
investigation by the Competition and Markets Authority
amid fears the deal could lead to higher prices for
consumers. The statutory deadline by which the final
report is to be published is 27 May 2021.
South East deals
2011 – 2020
1200 180000
160000
1000
140000
800 120000
100000
600
80000
400 60000
40000
200
20000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 16 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewSouth East
Advisers
Harrison Clark Rickerbys achieved first position in the
legal advisers table, having worked on a total of 34 deals
in the region, with the 30 deals advised on by Knights
securing second place. Gateley finished the year in third
position, with 25 deals. Clifford Chance achieved pole
position in the value tables, with Latham & Watkins
in second place and Slaughter and May in third. KBS
Corporate was the most active financial adviser, with 37
deals advised on, with RSM in second place on 32 deals.
Third position was taken by BDO with 29 deals. Goldman
Sachs topped the value rankings, with Barclays and
Numis taking second and third places, respectively.
Top ten deals: South East
2020
Date Consideration Deal type Target Bidder
(£m)
07/05/2020 31,400 Merger O2/Virgin Media, Slough Project Pink
and Reading
29/06/2020 4,057 Acquisition Petrochemicals Business INEOS Group Ltd,
of BP Plc, London Lyndhurst
24/07/2020 2,840 Acquisition Direct Energy LP, USA, NRG Energy Inc, USA
from Centrica Plc,
Windsor
19/05/2020 2,006 Rights Issue Compass Group Plc,
Chertsey
22/12/2020 1,931 Acquisition Kabel Deutschland Vodafone Group Plc,
Holding AG, Germany Newbury
05/08/2020 1,660 Acquisition Hastings Group Holdings Dorset Bidco Ltd, London
Plc, Bexhill-on-Sea
27/08/2020 854 Acquisition SDL Plc, Maidenhead RWS Holdings Plc,
Chalfont St Peter
24/11/2020 723 Acquisition Cobham Aero TransDigm Group Inc, USA
Connectivity, Marlow
31/03/2020 711 Minority Stake Sitryx Therapeutics Ltd, Eli Lilly and Co, USA
Oxford
06/10/2020 656 Acquisition Key Surgical LLC, USA Steris Plc, Basingstoke
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 17South East
Legal adviser rankings
Current rank Previous rank Legal adviser Volume1
1 1 HARRISON CLARK RICKERBYS 34
2 14 KNIGHTS 30
3 4 GATELEY 25
4 6 DLA PIPER 19
5 9 PINSENT MASONS 19
6 18 CMS 18
7 3 FREETHS 18
8 10 EVERSHEDS SUTHERLAND 17
9 12 STEVENS & BOLTON 16
10 7 IRWIN MITCHELL 16
Current rank Previous rank Legal adviser Value (£m)
1 5 CLIFFORD CHANCE 4,967
2 - LATHAM & WATKINS 3,194
3 2 SLAUGHTER AND MAY 3,111
4 - WACHTELL LIPTON ROSEN & KATZ 1,954
5 9 FRESHFIELDS BRUCKHAUS DERINGER 1,879
6 - ALLEN & OVERY 1,660
7 - WEIL GOTSHAL & MANGES 1,434
8 - JONES DAY 1,391
9 14 CMS 1,006
10 21 DLA PIPER 949
Page 18 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewSouth East
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 3 KBS CORPORATE 37
2 2 RSM 32
3 4 BDO 29
4 9 EMC CORPORATE FINANCE 28
5 1 GRANT THORNTON 20
6 17 NUMIS SECURITIES 17
7 8 HAZLEWOODS 17
8 6 BENCHMARK INTERNATIONAL 15
9 12 EY 13
10 5 PWC 12
Current rank Previous rank Financial adviser Value (£m)
1 - GOLDMAN SACHS 5,721
2 9 BARCLAYS 3,884
3 4 NUMIS SECURITIES 3,625
4 - BANK OF AMERICA MERRILL LYNCH 3,303
5 - MORGAN STANLEY 2,052
6 12 CREDIT SUISSE 2,039
7 - JP MORGAN 1,817
8 - FENCHURCH ADVISORY PARTNERS 1,686
9 11 ROTHSCHILD & CO 1,183
10 1 LAZARD 1,051
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 19South West
Summary announced in November was the acquisition by Bath-
The South West has recorded a total of 528 deals in 2020, based publishing group Future of GoCo Group, an
representing a marginal decline of 2.8% compared to Internet-based price comparison website for financial and
2019, although deal value fared less well, falling just over non-financial products, for £594m. GoCo is the company
23% from £13.5bn in 2019 to £10.4bn in 2020. Despite the behind GoCompare.com, Myvouchercodes.co.uk and
disruption caused by the Covid-19 lockdown at the start of LookAfterMyBills.com. Finally, in December, Bain Capital
Q2, activity in the region made a remarkable comeback, agreed to pay £530m for the savings & retirement and
with the 164 deals worth £3.6bn announced in Q4 2020 protection businesses of LV=. Under the terms of the
surpassing all other Q4 figures for the last ten years, deal, LV=’s With Profits business will be ring-fenced in a
proving the resilience of the M&A market in the South separate fund and closed to new business.
West. Whilst only one mega deal was reported in 2020,
compared to three in 2019, large cap deals were up by Industry
50% in volume and 66% in value. Valuations in the mid- Professional services was the most active industry
market declined by 28%, but only 9% in volume, whilst by deal volume, recording 182 deals in the year, an
small cap deals fell 11% by volume and rose 12% in value. increase of 48% on the 123 completed in the sector in
The South West accounted for 2.9% of all UK deal value 2019. Values declined by 70% from £4.1bn to £1.23bn.
and 9% of deal volume. Remote working and home schooling during the lockdown
periods saw IT and tech businesses become valuable
Deals of the Year commodities, leading to a 21% rise in the number of deals
Three of the largest South West deals were announced in the infocomms sector, from 96 in 2019 to 116 in 2020.
in the final quarter of the year. In November, Wimborne- Valuations in this industry rose by 52% from £747m in
based Cobham sold its Aero Connectivity business to 2019 to £1.14bn in 2020. Manufacturing was the third
US firm Transdigm Group for £723m, in a transaction most active sector, recording 114 deals, 13% fewer than in
described as “credit positive” for Cobham due to the 2019. Deal values were hard hit in this sector, falling 75%
substantial proceeds and high valuation multiple. Also to £1.5bn in 2020 from £5.9bn in 2019.
South West deals
2011 – 2020
40000
700
35000
600
30000
500
25000
400
20000
300
15000
200
10000
100 5000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 20 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewSouth West
Funding Advisers
Where funding arrangements were disclosed, private Harrison Clark Rickerbys was the most active legal
equity accounted for 16% of the deals, consistent with adviser of the year, advising on 35 deals, followed by BPE
2019’s results. The region attracted a wide of range and Boyce Hatton on 13 deals each. Slaughter and May
of investors, with more than 100 investors supporting took the top spot in the value table, followed by Norton
South West businesses in 2020. Business Growth Fund Rose and Simpson Thacher & Bartlett in second and third.
topped the table as the most active with four investments, BDO topped the volume table for financial advisers with
followed by Cornwall and Isles of Scilly Investment 62 deals with Hazlewoods in second position on 55 deals.
Fund and the recently launched Future Fund with three PKF Francis Clark was in third place with 25 deals. A point
investments apiece. Debt-funded deals stood at 8.5% of of interest here is a flurry of activity in the veterinary
announced deals, with HSBC and Shawbrook Bank the care sector, which saw BDO and Hazlewoods advise on a
most active on eight deals each, followed by Santander staggering 81 deals in which IVC Evidensia bolstered its
and NatWest. business operations through the acquisition of a number
of veterinary practices across the UK and Europe. In the
value tables, Barclays took number one position advising
on deals worth just over £5bn, followed by Morgan Stanley
on £4.8bn and Peel Hunt on £1.9bn.
Top ten deals: South West
2020
Date Consideration Deal type Target Bidder
(£m)
18/03/2020 4,200 IBO Viridor Ltd, Exeter Planets UK Bidco Ltd
(KKR)
24/11/2020 723 Acquisition Cobham Aero TransDigm Group Inc, USA
Connectivity, from
Cobham Plc, Wimborne
23/10/2020 647 IBO McCarthy & Stone Plc, Mastiff Bidco Ltd (Lone
Bournemouth Star Real Estate Fund)
25/11/2020 594 Acquisition GoCo Group plc, Newport Future Plc, Bath
06/02/2020 550 Divestment Hargreaves Lansdown
Plc, Bristol
15/12/2020 530 IBO Liverpool Victoria Bain Capital
Financial Services Ltd,
Bournemouth
24/06/2020 300 Rights Issue Unite Group Plc, Bristol
06/04/2020 286 Rights Issue WH Smith Plc, Swindon
01/07/2020 182 IBO Cello Health Plc, London Pharma Value
Demonstration Bidco Ltd,
Bristol
02/07/2020 180 Acquisition Avon Polymer Products DeLaval Holding BV, The
Ltd, Melksham Netherlands
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 21South West
Legal adviser rankings
Current rank Previous rank Legal adviser Volume1
1 1 HARRISON CLARK RICKERBYS 35
2 7 BPE SOLICITORS 13
3 - BOYCE HATTON 13
4 2 TLT 12
5 - SQUIRE PATTON BOGGS 11
6 19 ROYDS WITHY KING 11
7 13 MICHELMORES 10
8 5 PINSENT MASONS 10
9 3 FOOT ANSTEY 10
10 8 GATELEY 10
Current rank Previous rank Legal adviser Value (£m)
1 5 SLAUGHTER AND MAY 4,794
2 4 NORTON ROSE FULBRIGHT 4,315
3 - SIMPSON THACHER & BARTLETT 4,200
4 3 WEIL GOTSHAL & MANGES 1,900
5 - JONES DAY 903
6 6 ASHURST 604
7 - SIMMONS & SIMMONS 599
8 - MARRIOTT HARRISON 184
9 - ROPES & GRAY 182
10 - MACFARLANES 181
Page 22 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewSouth West
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 6 BDO 62
2 1 HAZLEWOODS 55
3 2 PKF FRANCIS CLARK 25
4 15 PEEL HUNT 17
5 4 RSM 14
6 7 KBS CORPORATE 13
7 3 GRANT THORNTON 12
8 5 BISHOP FLEMING 11
9 8 BENCHMARK INTERNATIONAL 6
10 9 NUMIS SECURITIES 5
Current rank Previous rank Financial adviser Value (£m)
1 7 BARCLAYS 5,036
2 4 MORGAN STANLEY 4,794
3 14 PEEL HUNT 1,885
4 8 NUMIS SECURITIES 1,528
5 1 GOLDMAN SACHS 1,241
6 6 ROTHSCHILD & CO 829
7 - EVERCORE PARTNERS 650
8 - DEUTSCHE BANK 647
8 - MOELIS & CO 647
10 3 JP MORGAN 586
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 23East of England
Summary company AstraZeneca agreeing to acquire Alexion
The initial impact of Covid-19 on M&A activity receded Pharmaceuticals, a US-based pharmaceutical company,
as we went further into 2020 when we look at the in a cash and stock transaction valued at £29.2bn. Not
figures recorded for the year. The East of England total only were these two deals the largest transactions of the
of 550 deals was only 3% down on the 565 transactions year but also the two largest we have ever recorded in
recorded for the previous year – this was still the lowest the region. Naturally, there appeared to be uncertainty
yearly total since 2014 but was a strong return given in the markets following the initial lockdown in March
the market slump in Q2. Despite this, the outlook was 2020. This saw many companies including Tesco, Ocado
positive for the region with deals values reaching £79.5bn, Group and Easyjet announce placings to strengthen their
a significant increase on the £20.3bn for the previous 12 balance sheets. In the first half of 2020 these accounted
months – this being the highest figure recorded within the for the larger deals within the region. By the latter part of
last ten years and almost double the next best of £40.7bn 2020, an apparent growth in confidence saw acquisitions
in 2016. Overall companies based in the East of England again come to the forefront of all M&A activity (accounting
have been involved in just under 9.4% of all UK deals for five of the six largest deals).
making it the fifth busiest region, while contributing over
22.5% of the total value, placing it behind only London. Industry
Manufacturing maintained its status as the East of
Deals of the Year England’s most active industry in 2020, with the 154
This huge spike in total deal values for the East of announced deals representing 28% of the region’s M&A
England during 2020 is almost entirely down to two total. This was closely followed by professional services
transactions, as the region recorded the third and as the next best sector with 148 recorded (accounting
fourth biggest UK deals of 2020. The largest saw US- for almost 27% of deals within the region). In spite of the
based GPU hardware and software developer NVIDIA global pandemic, total values have faired reasonably well,
Corp agree to acquire Cambridge semiconductor and with ten out of the 19 industries we track recording a year
software design company ARM, from Softbank Group for on year increase - the professional services, infocomms,
£30.5bn. This was closely followed by Cambridge-based financial services, transport and agriculture, forestry and
multinational pharmaceutical and biopharmaceutical fishing sectors saw the largest growth.
East of England deals
2011 – 2020
700 90000
80000
600
70000
500
60000
400 50000
300 40000
30000
200
20000
100 10000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 24 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewEast of England
Funding Advisers
Where detailed funding arrangements were disclosed, we Ensors and KBS Corporate were the most active financial
recorded 117 deals – approximately 21% of all announced advisers in 2020, each advising on 25 transactions,
transactions through 2020 – that were funded at least with Grant Thornton in third position having been cited
in part by private equity. This is an increase on the 114 in 17. Morgan Stanley is in pole position in the value
private equity transactions recorded during 2019 (20% table, advising on eight transactions totaling just under
share) with IQ Capital Partners being the lead provider in £66bn. These included the two largest deals mentioned
five of these deals (approximately £72m in total). A total above, where the global financial and investment
of 35 transactions were funded via bank debt, 25 less banking company provided financial advice to Nvidia
than 2019’s total of 60. HSBC maintained its position as and AstraZeneca, respectively. Freshfields Bruckhaus
the most active debt provider in the region after providing Deringer topped the legal value standings, mainly as a
funding for four of these transactions. Reconstruction/ result of having provided legal advice to AstraZeneca in
refinancing transactions are now very much the norm the same deal. The highest legal adviser by volume was
for companies which are trying to find a way through the Mills & Reeve, advising on 37 transactions with a recorded
crisis – there were 18 new deals of this type announced value of approximately £255m, ahead of Harrison Clark
in the region, 15 of which came post UK-lockdown. The Rickerbys on 24 deals.
majority of all transactions were funded via cash, with the
233 deals funded this way representing almost 42% of all
2020 East of England deals.
Top ten deals: East of England
2020
Date Consideration Deal type Target Bidder
(£m)
31/07/2020 30,500 Acquisition Arm Ltd, Cambridge NVIDIA Corp, USA
14/12/2020 29,210 Acquisition Alexion Pharmaceuticals AstraZeneca Plc,
Inc, USA Cambridge
09/03/2020 8,090 Acquisition Malaysia and Thai Charoen Pokphand Group
Businesses of Tesco Plc, Co Ltd, Thailand
Welwyn Garden City
25/08/2020 3,811 Acquisition OSIsoft LLC, USA AVEVA Group Plc,
Cambridge
21/05/2020 1,009 Rights Issue Whitbread Plc, Dunstable
11/08/2020 669 Acquisition Kandy Therapeutics Ltd, Bayer AG, Germany
Stevenage
10/06/2020 657 Rights Issue Ocado Group Plc, Hatfield
28/04/2020 426 IBO Jagex Ltd, Cambridge Platinum Fortune LP, US
25/06/2020 419 Rights Issue Easyjet Plc, Luton
Horizon Discovery Group Perkinelmer (UK) Holdings
02/11/2020 296 Acquisition
Plc, Cambridge Ltd, Beaconsfield
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 25East of England
Legal adviser rankings
Current rank Previous rank Legal Adviser Volume1
1 1 MILLS & REEVE 37
2 2 HARRISON CLARK RICKERBYS 24
3 3 BIRKETTS 21
4 4 GATELEY 18
5 7 PINSENT MASONS 14
6 6 SHOOSMITHS 11
7 11 KNIGHTS 10
8 - GOODWIN 8
9 10 ADDLESHAW GODDARD 8
10 13 TRAVERS SMITH 7
Current rank Previous rank Legal Adviser Value (£m)
1 - FRESHFIELDS BRUCKHAUS DERINGER 37,301
2 - HOGAN LOVELLS 30,986
3 - CLEARY GOTTLIEB STEEN & HAMILTON 30,488
3 - LATHAM & WATKINS 30,488
3 - MORRISON & FOERSTER 30,488
6 4 CLIFFORD CHANCE 8,289
7 1 ASHURST 4,211
8 15 GOODWIN 854
9 3 LINKLATERS 731
10 - A&L GOODBODY 683
Page 26 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewEast of England
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 3 ENSORS 25
2 4 KBS CORPORATE 25
3 2 GRANT THORNTON 17
4 1 RSM 17
5 7 BDO 12
6 5 MHA LARKING GOWEN 12
7 14 BENCHMARK INTERNATIONAL 10
7 18 HAZLEWOODS 10
9 24 NUMIS SECURITIES 9
10 - MORGAN STANLEY 8
Current rank Previous rank Financial adviser Value (£m)
1 7 MORGAN STANLEY 65,633
2 2 GOLDMAN SACHS 39,903
3 - RAINE GROUP 30,488
3 - ZAOUI & CO 30,488
5 5 EVERCORE PARTNERS 29,530
6 8 BANK OF AMERICA MERRILL LYNCH 29,351
7 13 BARCLAYS 8,699
8 - GREENHILL & CO 8,089
9 - LAZARD 3,989
10 15 PWC 3,913
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 27The Midlands
Summary issued and to be issued share capital at approximately
There have been few positives to take from the M&A £945m. The offer from Electronic Arts was considered
figures for the Midlands region in 2020. Transaction superior to an offer from US rival Take-Two Interactive
numbers dropped to 825 (from 989 in 2019), a fall of Software. The next most notable transaction involved
17% - this was the smallest number recorded since Aston Martin Lagonda Global Holdings, the independent
2014. Concurrently, deal values saw a 57% decrease to luxury car manufacturer based in Warwick, raising £536m
£6.6bn (falling from £15.3bn the previous year) – this through an equity issue, including a private placement
being the lowest value over the last decade. The effect of of shares. The net proceeds from the placing and rights
the Covid-19 global pandemic is obviously a huge factor issue will be used to improve liquidity and finance the
but many other regions appear to have reached parity in ramp up in production of DBX and the turnaround of the
terms of deal value year on year and in some cases have company's performance.
reported a significant positive spike. The overall decline
appears to be most severe in the small deals market, Industry
while one bright note saw large deals increase by 23% Manufacturing remains the most active sector in the
in terms of volume, with this correlating to transaction Midlands on 223 transactions in 2020, some way ahead of
values rising to GB£3.8bn (from £3bn). Midlands-based wholesale and retail with 189 and professional services a
companies were involved in 14% of all UK deals in 2020, close third on 183 transactions. Nearly all the industries
making the region still the busiest outside of London and saw a decline in volume from 2019 and there was only
the South East, and contributed 1.9% to their total value. two that experienced an upturn; waste management (with
a 4% increase) and mining and quarrying (an 80% rise).
Deals of the Year In respect of transaction values, there were only seven
The year’s biggest deal in the region saw American video- of the 19 sectors which reported an increase; the most
game company Electronic Arts reach an agreement to notable of these being infocomms (where deals worth
acquire Codemasters Group Holdings, a Warwickshire- £1.7bn were recorded), transport (£382m), mining and
based developer and publisher of video games. Under the quarrying (£213m) and public administration and defence
terms of the transaction, shareholders of Codemasters (£132m) reporting triple digit growth or more.
will receive 604p in cash per share valuing the entire
Midlands deals
2011 – 2020
25000
1200
1000 20000
800
15000
600
10000
400
5000
200
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 28 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewThe Midlands
Funding Advisers
Where detailed funding arrangements were disclosed, Gateley topped the legal adviser table in the Midlands
we recorded 88 acquisitive transactions that were with 75 transactions, ahead of Harrison Clark Rickerbys
funded from newly agreed bank debt, down from 155 with 49 assists. In terms of value, Gowling WLG (advising
in 2019; HSBC remains the primary lender in the M&A Codemasters amongst others) worked on deals with
market, funding 17 deals in all. Private equity is playing a a total value of £965m, beating Addleshaw Goddard
proportionately higher role in the market, funding 16% of (£668m) to the top position. The financial advisers were
all transactions, up from 12% in 2019 (134 deals in 2020, led this time by KBS Corporate, which advised on 37
from 122 the previous year); Business Growth Fund was transactions, with BDO (30) and Hazlewoods (26) in
most active, completing ten deals, with Midlands Engine second and third positions, respectively. Liberum Capital
Investment Fund (on seven transactions) close behind. (four deals) ranked highest in terms of deal values for
an aggregate consideration of just over £1bn – they too
assisted Codemasters in the biggest deal of the year.
Top ten deals: The Midlands
2020
Date Consideration Deal type Target Bidder
(£m)
14/12/2020 945 Acquisition Codemasters Group Electronic Arts Inc, USA
Holdings Plc, Southam
31/01/2020 536 Rights Issue Aston Martin Lagonda
Global Holdings Plc,
Warwick
07/10/2020 246 Acquisition Fox's Biscuits Ltd (from Ferrero SpA, Italy
Boparan Holdco Ltd,
Birmingham)
06/05/2020 235 Rights Issue National Express Group
Plc, Birmingham
19/11/2020 212 Acquisition Tapad Inc, USA Experian Plc, Nottingham
08/01/2020 178 Acquisition Certain Assets and Breedon Group Plc,
Operations of CEMEX in Breedon on the Hill
the UK, Rugby
10/12/2020 144 Acquisition Asset Alliance Arbuthnot Banking Group
Group Holdings Ltd, Plc, London
Wolverhampton
26/10/2020 138 Acquisition Armitage Pet Care Ltd, Spectrum Brands
Nottingham Holdings Inc, USA
27/10/2020 125 Rights Issue Aston Martin Lagonda
Global Holdings Plc,
Warwick
09/01/2020 119 Divestment Watches of Switzerland
Group Plc, Leicester
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 29The Midlands
Legal adviser rankings
Current rank Previous rank Legal adviser Volume1
1 1 GATELEY 75
2 3 HARRISON CLARK RICKERBYS 49
3 2 BROWNE JACOBSON 32
4 6 PINSENT MASONS 30
5 5 FREETHS 22
6 10 ADDLESHAW GODDARD 20
7 9 EVERSHEDS SUTHERLAND 20
8 7 KNIGHTS 20
9 11 SQUIRE PATTON BOGGS 19
10 13 MILLS & REEVE 19
Current rank Previous rank Legal adviser Value (£m)
1 13 GOWLING WLG 965
2 8 ADDLESHAW GODDARD 668
3 14 DLA PIPER 354
4 2 ASHURST 290
5 10 SQUIRE PATTON BOGGS 235
6 3 SLAUGHTER AND MAY 178
7 - WALKER MORRIS 139
8 - DWF 126
9 - PINSENT MASONS 124
10 - BROWNE JACOBSON 121
1
Where two advisers are tied, transaction deal values will constitute which of the advisers are ranked higher.
Page 30 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewThe Midlands
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 4 KBS CORPORATE 37
2 2 BDO 30
3 10 HAZLEWOODS 26
4 1 RSM 24
5 3 GRANT THORNTON 19
6 6 KPMG 19
7 7 MAZARS 16
8 9 SMITH COOPER CORPORATE FINANCE 11
9 16 BENCHMARK INTERNATIONAL 11
9 - DAINS CORPORATE FINANCE 11
Current rank Previous rank Financial adviser Value (£m)
1 13 LIBERUM CAPITAL 1,037
2 - JP MORGAN 661
3 - DEUTSCHE BANK 591
4 5 MORGAN STANLEY 582
5 16 BARCLAYS 346
6 - CENKOS SECURITIES 296
7 2 ROTHSCHILD & CO 221
8 - STIFEL/KBW 218
9 - FTI CONSULTING 195
10 - PWC 194
1
Where two advisers are tied, transaction deal values will constitute which of the advisers are ranked higher.
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 31Yorkshire & Humber
Summary has an enterprise value of £6.8bn on a debt-free and
Deal volume in the Yorkshire and Humber region saw cash-free basis, is subject to regulatory approvals and is
a sharp fall in 2020, down 19% from 665 in 2019 to 538 expected to complete in H1 2021. The apparent growth in
recorded for 2020 – the lowest number since 2015. deal confidence was evident again in November with the
However, as was the case in other parts of the UK, a second largest transaction seeing Croda International,
strong second half of the year offset some of those early a British speciality chemicals company based in Goole,
losses - there were 250 transactions announced up until acquire Fragrance Spanish Topco (doing business as
June, but this increased to 288 deals in the latter half of Iberchem), a Spanish developer and manufacturer
the year. At the same time deal values spiked from just of perfumes and cosmetics, animal feed, and flavour
short of £8bn in 2019 to £11.6bn this year, a very healthy blends, from investment company Eurazeo, for a total
45% increase. Yorkshire and Humber-based companies consideration of approximately £733m.
were involved in 9.2% of all UK deals in 2020 and
contributed 3.3% to their total value. Industry
Somewhat unsurprisingly given the current climate, the
Deals of the Year region’s nine largest industries by volume all showed
Rights issues had dominated the top deals for the signs of negative growth in relation to deal activity. In fact,
region within the first six months of 2020, as companies there were only five of the 19 sectors covered by Experian
conducted placements to raise cash for working capital where deal volumes increased in 2020 on a year on year
in the wake of Covid-19 disruption. However, acquisition basis, and just manufacturing (153), professional services
and buy-out activity was much stronger as the year (140) and wholesale and retail (135) managed to break
progressed, with the largest deal announced seeing a through the 100-deal barrier for the year. The big pluses
consortium comprising the Issa brothers, the Blackburn- in industry in terms of value were the wholesale and retail
based entrepreneurs behind forecourt and convenience sector showing an increase from £776m to almost £7.5bn
retailer EG Group, and TDR Capital, the private equity (mainly as a result of the Asda deal), whilst the transport
firm, agree to acquire a majority shareholding in Asda industry also saw a substantial increase in deal value to
Stores, the Leeds-based retail subsidiary of Wal-Mart £305m, largely thanks to the capital raising performed by
Stores, an international supermarket group. The deal Jet2’s owner, Dart Group.
Yorkshire & Humber deals
2011 – 2020
14000
700
600 12000
500 10000
400 8000
300 6000
200 4000
100 2000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
Page 32 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewYorkshire & Humber
Funding funding for all new deals suggesting a slight shift away
Where funding arrangements were disclosed, we from debt funding towards private equity.
recorded a total of 65 transactions that were funded at
least in part via new bank debt; down from 107 over the Advisers
same period in 2019. HSBC has been the region’s most KBS Corporate has been the most active financial adviser
active lender so far providing funding for 14 transactions, so far in 2020 having advised on 15 transactions (they
with alternative lender ThinCats rising above the more were 3rd in the same rankings in 2019); just ahead of
traditional lenders (Barclays, Lloyds, NatWest) providing RSM and Grant Thornton who were cited in 13 and 12
funding for a further five deals. Private equity has been deals, respectively. Morgan Stanley was the lead financial
a prominent source of funding in the region having been adviser by value advising on three transactions for a
involved in funding 85 transactions so far this year, combined consideration of £8.2bn - these include advising
making it the second most common source of funding the Issa Brothers/TDR Capital consortium and Croda
for new deals behind cash (216). While the raw number International. Kirkland & Ellis are at the top of the legal
of deals funded via private equity may have fallen, the value rankings having provided advice on five deals for
proportion of deals funded via this method has remained an aggregate consideration of £6.8bn. The highest legal
constant (16%) compared with 2019 - when it was on par adviser by volume was Clarion Solicitors having advised
with new bank debt. We now have a situation in 2020 on 31 transactions, edging out Squire Patton Boggs and
where bank debt only accounts for just over 12% of the Schofield Sweeney, both on 25 deals apiece.
Top ten deals: Yorkshire & Humber
2020
Date Consideration Deal type Target Bidder
(£m)
02/10/2020 6,800 IBO Asda Stores Ltd, Leeds Issa Brothers and TDR
Capital
18/11/2020 733 Acquisition Fragrance Spanish Topco Croda International Plc,
SL, Spain Goole
23/11/2020 648 Minority Stake Humber Gateway Offshore Greencoat UK Wind Plc,
Windfarm, Grimsby London
07/10/2020 246 Acquisition Fox's Biscuits Ltd, Ferrero SpA, Italy
Wakefield
09/11/2020 200 Acquisition Countrywide Plc, Skipton Group Holdings
Chelmsford Ltd, Skipton
15/12/2020 193 Acquisition Drax Generation Enterprise VPI Holding Ltd, London
Ltd, Aberdeen (from Drax
Power Group Ltd, Selby)
22/10/2020 172 Rights Issue ITM Power Plc, Sheffield
20/05/2020 172 Rights Issue Dart Group Plc, Leeds
19/06/2020 156 IBO Rosemont Pharmaceuticals Inflexion Private Equity,
Ltd, Leeds London
07/05/2020 120 Rights Issue Polypipe Group Ltd,
Doncaster
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 33Yorkshire & Humber
Legal adviser rankings
Current rank Previous rank Legal adviser Volume1
1 1 CLARION SOLICITORS 31
2 4 SQUIRE PATTON BOGGS 25
3 2 SCHOFIELD SWEENEY 25
4 5 FREETHS 24
5 6 ADDLESHAW GODDARD 23
6 7 WARD HADAWAY 20
7 3 GATELEY 20
8 13 PINSENT MASONS 18
9 21 SHOOSMITHS 15
10 11 GORDONS 14
Current rank Previous rank Legal adviser Value (£m)
1 18 KIRKLAND & ELLIS 6,800
2 - NORTON ROSE FULBRIGHT 747
3 - FRESHFIELDS BRUCKHAUS DERINGER 733
4 11 CMS 653
5 3 ADDLESHAW GODDARD 550
6 5 DLA PIPER 308
7 - CLIFFORD CHANCE 200
8 - BURGES SALMON 172
9 4 SQUIRE PATTON BOGGS 169
10 - MACFARLANES 156
Page 34 | MarketIQ United Kingdom and Republic of Ireland M&A ReviewYorkshire & Humber
Financial adviser rankings
Current rank Previous rank Financial adviser Volume1
1 3 KBS CORPORATE 15
2 2 RSM 13
3 1 GRANT THORNTON 12
4 8 MAZARS 12
5 11 HAZLEWOODS 12
6 5 BDO 11
7 4 KPMG 10
8 18 ALANTRA 9
9 15 NUMIS SECURITIES 8
10 6 BHP CORPORATE FINANCE 8
Current rank Previous rank Financial adviser Value (£m)
1 - MORGAN STANLEY 8,181
2 3 BARCLAYS 7,236
3 1 ROTHSCHILD & CO 6,800
4 - HSBC 905
5 10 LAZARD 733
6 15 CENKOS SECURITIES 281
7 7 NUMIS SECURITIES 275
8 - JEFFERIES 200
8 - EVERCORE 200
10 - INVESTEC BANK 186
1
Where two advisers are tied, transaction deal values will constitute which of the advisers are ranked higher.
MarketIQ United Kingdom and Republic of Ireland M&A Review | Page 35North West
Summary recommended cash offer to acquire Manchester-based
The North West closed 2020 on a positive note. Having Calisen for £1.4bn. The deal sees Calisen, which provides
experienced a sharp drop in deal volumes in Q2 as energy meters and meter reading services, return to
the impact of Covid-19 first started to take hold of the private ownership less than a year after its IPO, with
market, Q3 and Q4 both saw an upward trend in volume, the offer price of 240p per share just 21p higher than
as the region's professionals adapted to deal making in when it floated. Communications group TalkTalk agreed
exceptional circumstances. The last quarter of 2020 saw a £1.1bn offer from Toscafund and Penta Capital. Tosca
the announcement of 205 deals, an increase of 20% on and Penta believe that continuing to operate in the public
the 171 deals in Q3. Overall, the region recorded 695 deals listed markets would not be in TalkTalk’s best interests,
in the year, approximately 20% fewer than the 861 done and that it’s investment strategy and long term growth
in 2019 but deal values bucked the trend, with the £15bn can be better supported by access to equity and debt
worth of deals in 2020 double the value recorded in 2019. financing structures that are not readily available to listed
The region logged four mega deals in 2020, of which two companies. Other deals of note in the final quarter include
were announced in December, as people looked forward the acquisition by Euro Garages of the OMV filling station
to a day’s respite from the harsh restrictions imposed for business in Germany for £558m, whilst in the retail
much of the year. Large cap deals remained unaffected, sector, JD Sports increased its presence in the USA with
with deals up 11% in volume and 9% in value in the acquisition of the Shoe Palace Corp in California for
comparison to the previous year. It was a similar picture around £510m.
in the mid-market, with 77 deals recorded in 2020, down
two from the 79 announced in 2019. Deals below £10m in Industry
value bore the brunt of the downturn, with volumes 26% Although the volumes of deals across all industries
lower and values 41% lower than in the previous year. The declined as a result of reduced activity, deal values rose
North West accounted for 4.2% of all UK deal value and significantly in many sectors, suggesting resilient equity
11.9% of deal volume. valuations despite the subdued market. The highest
volume of deals done were in the professional services
Deals of the Year sector, even though volume and value registered a fall of
Two of the region’s largest deals, both announced in 14% and 24% respectively. Wholesale and retail recorded
December, saw listed North West companies prepare 152 deals worth £7.8bn, which is a 23% drop in volume
to be taken into private ownership. A consortium of on 2019, but an increase in value of more than 200%.
investors including Global Energy & Power Infrastructure Manufacturing continued to perform well, with 150 deals
Fund, Ninteenth Investment Company and West Street worth £4.5bn announced in 2020, a decline of 32% in
International Infrastructure Partners, agreed terms on a volume and a rise of 82% in value from the previous
North West deals
2011 – 2020
1000 20000
900 18000
800 16000
700 14000
600 12000
500 10000
400 8000
300 6000
200 4000
100 2000
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Deals Value (£M)
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