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FLASHWIRE US MONTHLY

August 2019

This Issue:

US M&A News and Trends

2

US Merger Metrics

U.S. M&A deal activity increased in July, going up 7.9% with 1,212 announcements compared to 1,123 in June. However, aggregate M&A spending decreased. In July 53.5% less was spent on deals compared to June.

U.S. private equity activity increased in July up 30.1% from June. There were 160 deals in July compared to 123 in June. Aggregate transaction value also increased, up by 20.7% to $44.2 billion from June's $36.6 billion.

2

US Middle Market Monitor

3

US Sector Activity & Value

The top financial advisors for 2019 based on deal announcements, are: Goldman Sachs & Co., JPMorgan Chase & Co, Jefferies LLC, Barclays Plc, and Morgan Stanley. The top five financial advisors, based on the aggregate transaction value of the deals worked on, are: Goldman Sachs & Co., JPMorgan Chase & Co, Evercore, Inc., Morgan Stanley, and Citigroup.

4

US Strategic Buyer Report

Over the past 3 months, the sectors that saw the biggest increases in M&A deal activity, relative to the same three-month period one year ago, was: Electronic Technology (127 vs. 87), Consumer Services (269 vs. 248), Health Technology (148 vs. 133), Consumer Non-Durables (97 vs. 83), and Transportation (93 vs. 86). Eight of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months compared to the same three months one year prior.

4

US Private Equity Report

5

Top US Advisors

6

Top US Deals Scoreboard

Over the past 3 months, the sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago have been: Producer Manufacturing (192 vs. 246), Technology Services (537 vs. 591), Finance (479 vs. 514), NonEnergy Minerals (55 vs. 85), and Health Services (175 vs. 194). Thirteen of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over 266 deals.

The top legal advisors for 2019 based on deal announcements, are: Kirkland & Ellis LLP, Latham & Watkins LLP, Jones Day LP, Skadden, Arps, Slate, Meagher & Flom LLP, and Simpson Thacher & Bartlett LLP. The top five legal advisors, based on the aggregate transaction value of the deals worked on, are: Wachtell, Lipton, Rosen & Katz, Kirkland & Ellis LLP, Sullivan & Cromwell LLP, Simpson Thacher & Bartlett LLP, and Davis Polk & Wardwell LLP.

Topping the list of the largest deals announced in July are: London Stock Exchange Group Plc agreeing to acquire Refinitiv US Holdings, Inc. for $14.4 billion; A private group led by Brookfield Asset Management Inc and GIC Special Investments Pte Ltd entering a deal to acquire Genesee & Wyoming, Inc. for $6.4 billion; Advent International Corp.'s deal to acquire Cobham Plc for US$5 billion; A private group led by BC Partners Ltd. and the management of Garda World Security Corp. agreeing to acquire the company from Rhône Capital LLC for $4 billion; Prologis, Inc.'s agreement to acquire Industrial Property Trust, Inc. for $2.2 billion.

The US Mergers & Acquisitions Market Index $350.0

1,350

$318.8

1,200

$300.0

1,050

$247.6 $250.0

900 $203.5 $200.0

$167.7

$187.0

750

$167.7 $163.7

$142.1

$167.8

$154.8 $140.0

$150.0

$126.5

$135.7

$148.3

$144.5

450

$99.9

$100.0

600

300 $50.0

150 1,095

1,181

1,260

1,234

1,146

1102

1,308

1,084

1,082

1,291

1,083

1,002

1,092

1,181

1,123

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

1,212

$0.0

0 Deal Volume

FactSet.com

Jul-19

Aggregate Deal Value

Copyright © 2019 FactSet Research Systems Inc. All rights reserved.

1

US MergerMetrics

August 2019

Merger Stats Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended Deal Size

12 Months Ended

7/31/19

7/31/18

$1 Billion +

311

376

$500M to $999.9M

237

$250M to $499.9M

326

$100M to $249.9M

Change

Average P/E

7/31/19

7/31/18

Change

-17.3%

$1,572.1

$1,728.7

-9.1%

30.4

268

-11.6%

163.2

188.0

-13.2%

29.2

317

2.8%

114.0

113.5

0.4%

23.2

476

533

-10.7%

76.4

85.2

-10.4%

25.9

$50M to $99.9M

374

487

-23.2%

27.1

34.7

-21.7%

24.9

$25M to $49.9M

369

418

-11.7%

13.2

14.9

-11.1%

15.6

$10M to $24.9M

405

492

-17.7%

6.6

8.1

-17.9%

22.1

Under $10M

783

1,039

-24.6%

2.5

3.4

-26.0%

9.0

Undisclosed

10,425

8,988

16.0%

N/A

N/A

N/A

N/A

Total

13,706

12,918

6.1%

$1,975.2

$2,176.5

-9.2%

24.9

M&A at a Glance MEDIAN P/E

MEDIAN PREMIUM 35.0%

30.0x 25.0x

30.0% 26.1x

29.9% 25.0%

20.0x

22.0x 18.2x

15.0x

20.0%

24.3% 18.6%

15.0% 10.0x

10.0%

5.0x

5.0%

0.0x

0.0% 3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

L3M

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

L3M

US Middle Market Monitor MEDIAN EV/EBITDA

MEDIAN PREMIUM

12.0x

40.0% 35.0%

10.0x 8.0x

9.4x

8.8x

8.5x

30.0%

32.7%

32.2% 27.9%

25.0%

6.0x

20.0% 15.0%

4.0x

10.0% 2.0x

5.0%

0.0x

0.0% 3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

L3M

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

L3M

*Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals. Media: Media quotation with source attribution is encouraged. Reporters requesting additional information or editorial comment should contact [email protected]. Mergerstat gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided in this publication. Copyright 2019 FactSet Research Systems Inc. All rights reserved. It is illegal under federal copyright law to reproduce or redistribute this publication or any portion of its contents without written authorization of the publisher.

FactSet.com

Copyright © 2019 FactSet Research Systems Inc. All rights reserved.

2

US Sector Activity & Value

August 2019

SECTOR BY ACTIVITY Target Sector Electronic Technology Consumer Services Health Technology Consumer Non-Durables Transportation Energy Minerals Consumer Durables Commercial Services Process Industries Retail Trade Communications Miscellaneous Government Industrial Services Distribution Services Utilities Health Services Non-Energy Minerals Finance Technology Services Producer Manufacturing Total

L3M 7/31/19 Deal Count 127 269 148 97 93 36 66 571 124 102 35 9 5 164 178 54 175 55 479 537 192 3,516

L3M 7/31/18 Deal Count 87 248 133 83 86 30 63 570 128 108 42 16 14 175 190 72 194 85 514 591 246 3,675

Difference 40 21 15 14 7 6 3 1 (4) (6) (7) (7) (9) (11) (12) (18) (19) (30) (35) (54) (54) (159)

SECTOR BY VALUE Target Sector Health Technology Electronic Technology Consumer Services Energy Minerals Communications Transportation Retail Trade Government Miscellaneous Technology Services Consumer Non-Durables Commercial Services Consumer Durables Utilities Non-Energy Minerals Producer Manufacturing Process Industries Distribution Services Industrial Services Finance Health Services Total

FactSet.com

L3M 7/31/19 Value $132,488.0 118,748.5 69,350.8 37,175.5 19,428.7 11,714.3 8,905.4 0.0 652.0 97,376.4 10,232.0 29,680.7 2,049.4 9,955.9 2,523.5 11,258.4 8,109.3 7,741.2 20,482.1 34,488.7 2,448.4 $634,809.1

L3M 7/31/18 Value $13,363.8 9,592.2 18,768.2 14,225.6 7,649.1 4,854.8 5,879.8 14.3 826.7 97,709.8 11,309.3 31,139.6 3,642.1 15,633.3 8,284.4 18,737.4 25,036.3 28,641.6 47,178.2 78,557.5 51,803.7 $492,847.8

Copyright © 2019 FactSet Research Systems Inc. All rights reserved.

Difference $119,124.1 109,156.3 50,582.7 22,949.9 11,779.5 6,859.5 3,025.6 (14.3) (174.7) (333.4) (1,077.3) (1,458.9) (1,592.8) (5,677.4) (5,760.9) (7,479.1) (16,927.0) (20,900.4) (26,696.1) (44,068.8) (49,355.2) $141,961.3

3

US Strategic Buyer Report

August 2019

Merger Stats Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended Deal Size

12 Months Ended

Average P/E

7/31/19

7/31/18

Change

7/31/19

7/31/18

$1 Billion + $500M to $999.9M $250M to $499.9M

163 118 192

209 150 197

-22.0% -21.3% -2.5%

$1,069.4 79.2 68.5

$1,095.8 104.3 70.1

-2.4% -24.1% -2.3%

31.0 26.9 24.1

$100M to $249.9M $50M to $99.9M $25M to $49.9M $10M to $24.9M Under $10M Undisclosed

300 259 258

348 351 292

-13.8% -26.2% -11.6%

48.6 18.8 9.2

56.0 25.0 10.5

-13.3% -24.8% -12.5%

24.8 25.0 16.8

290 515 8,211 10,306

356 676 6,831 9,410

-18.5% -23.8% 20.2% 9.5%

4.6 1.6 N/A $1,299.9

5.9 2.2 N/A $1,369.9

-20.7% -27.3% N/A -5.1%

26.4 9.3 N/A 24.9

Total

Change

PUBLIC BUYER INDEX LTM 7/31/19 360

$300 $249.5

$250 $200

300 240

$175.5

$150

180

$118.5

$108.6

$100

$59.3

$49.2 $50

$72.7

$24.8

260

238

352

273

240

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

294

241

$87.0 219

$89.7

120

$83.6

224

264

241

$42.6 256

Apr-19

May-19

Jun-19

Jul-19

60 0

$0 Jan-19 Deal Volume

Feb-19 Mar-19 Aggregate Deal Value

US Private Equity Report Indices

Top Private Equity Fundraisings: YTD 2019

PE BUYER INDEX: LTM 7/31/19

Open Date

$60 $46.2

$50

$36.6

$40

$29.6

$30 $20 $10

$27.1

$18.2

$17.3

130

158

$20.3

$19.3

120

134

$13.1 113

$18.4

$21.3

$10.2 134

123

129

122

127

123

160

$0

180 160 140 120 100 80 60 40 20 0

Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19

15

$32.5

$30 $20.5

$20 $15

4-Jun-2019

10,000.0

Green Equity Investors Fund VIII

15-Feb-2019

8,500.0

TA XIII Fund

10-Jan-2019

8,000.0

HPS Mezzanine Fund 2019

25-Jan-2019

8,000.0

Platinum Equity Capital Partners V LP

8-Jan-2019

7,336.0

EMG Fund V

28-Feb-2019

5,000.0

Blackstone Real Estate Debt Strategies IV

8-Mar-2019

5,000.0

Softbank Innovation Fund

19-Feb-2019

3,600.0

New Enterprise Associates 17 LP

21-Mar-2019

3,000.0

H. I. G. Middle Market LBO Fund III LP

Apax Partners (UK) Ltd. Leonard Green & Partners LP TA Associates Management LP Highbridge Principal Strategies Mezzanine

EMG Fund II Management LP

$21.4

$18.4

$14.8

9

Blackstone Real Estate Advisors Softbank Latin America Local Hub

$12.0 $9.1 $5.6

$10 $5

Apax X Fund

12

$25

9

9

9

6 $7.1 $6.2

6

7

$0.1 2

6

5

$3.9 3

NEA Management Co. LLC

3 9

10

7 0

$0

Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19

FactSet.com

Fund (Private Equity Sponsor)

$10,000.0

Platinum Equity Advisors LLC

GOING PRIVATE INDEX: LTM 7/31/19 $35

Value ($Mil)

29-Jan-2019

Copyright © 2019 FactSet Research Systems Inc. All rights reserved.

H.I.G. Capital LLC (Private Equity)

4

Top US Advisors

August 2019

BASED ON US ANNOUNCED DEALS – RANKED BY TRANSACTION VALUE: YTD 2019 Financial Advisor

Transaction Value ($Mil)*

Total Deals**

Legal Advisor

Transaction Value ($Mil)*

Total Deals**

1.

Goldman Sachs & Co.

$631,478.5

132

1.

Wachtell, Lipton, Rosen & Katz

$496,795.1

40

2.

JPMorgan Chase & Co

510,810.3

103

2.

Kirkland & Ellis LLP

360,141.2

281

3.

Evercore, Inc.

455,213.3

64

3.

Sullivan & Cromwell LLP

296,608.8

61

4.

Morgan Stanley

441,479.9

79

4.

Simpson Thacher & Bartlett LLP

283,057.7

79

5.

Citigroup

354,814.3

68

5.

Davis Polk & Wardwell LLP

259,002.4

44

6.

Bank of America Merrill Lynch

248,496.4

62

6.

Weil, Gotshal & Manges LLP

239,634.0

64

7.

RBC Capital Markets

160,640.3

44

7.

Cleary Gottlieb Steen & Hamilton LLP

235,763.5

39

8.

Credit Suisse

158,947.1

55

8.

Slaughter & May Ltd.

222,084.2

14

9.

PJT Partners, Inc.

157,705.6

17

9.

Skadden, Arps, Slate, Meagher & Flom LLP

186,224.4

85

10.

Barclays Plc

156,339.4

82

10.

Latham & Watkins LLP

170,897.6

138

11.

Jefferies LLC

137,893.7

85

11.

Cravath, Swaine & Moore LLP

163,693.3

32

12.

Centerview Partners LLC

126,047.9

30

12.

Fried, Frank, Harris, Shriver & Jacobson LLP

150,010.9

25

13.

Dyal Co. LLC

92,815.1

1

13.

Jones Day LP

139,478.2

137

14.

Lazard

72,569.1

58

14.

Shearman & Sterling LLP

126,958.7

40

15.

M. Klein & Co. LLC

55,385.7

3

15.

Mayer Brown LLP

111,953.6

34

16.

Deutsche Bank AG

54,462.2

34

16.

Debevoise & Plimpton LLP

106,894.9

31

17.

The Toronto-Dominion Bank

51,176.6

10

17.

Vinson & Elkins LLP

97,767.3

45

18.

Guggenheim Capital LLC

48,700.7

19

18.

Arthur Cox & Co.

83,982.2

1

19.

SunTrust Robinson Humphrey

34,030.9

13

18.

McCann Fitzgerald

83,982.2

2

20.

Wells Fargo & Co.

33,729.2

19

20.

Freshfields Bruckhaus Deringer LLP

63,170.5

18

21.

Macquarie Group

33,593.1

30

21.

Clifford Chance LLP

62,431.3

33

22.

Allen & Co., Inc.

32,996.8

4

22.

Willkie Farr & Gallagher LLP

62,351.7

52

23.

Greenhill & Co., Inc.

31,701.6

15

23.

Paul, Weiss, Rifkind, Wharton & Garrison LLP

61,407.7

66

24.

Moelis & Co.

30,953.4

46

24.

Fenwick & West LLP