Acquisition Investment is Lifted to a Two-Year High on the Back of Five Out-sized DealsAccording to preliminary data from Pitchbook, there were 752 M&A deals worth a total of $240 billion in July, remaining relatively unchanged from the $237 billion spent on corporate acquisition and leveraged buyout deals in June. Over 60% of the deal value is comprised of the buyouts of five target companies: Worldpay, L3 Technologies, Red Hat, First Data, and Array BioPharma.
M&A Activity Spikes in June on the Back of Mega Deals In June, there were 643 deals in M&A capital markets worth a combined $270 billion, the highest level since the start of the decade in 2010. However, 45% of that value is attributable to United Technologies’ blockbuster acquisition of defense contractor Raytheon. In fact, the deal is the largest since Time Warner acquired AOL in January 2001.
M&A Activity Picks Up in May Despite Weaker Year than 2018There were 720 M&A deals valued at a combined $194 billion in May, according to Pitchbook. For the year through the end of the May, there were 3,756 deals for $906 billion capital, roughly 1,140 fewer deals and $506 billion less value for the same period in 2018.
Disney Claims Control of Hulu Ahead of Disney+ Streaming RolloutPitchbook data reveals that $9.5 billion was invested across 27 M&A deals in the U.S. last week, 6 fewer deals and $75 billion less capital after outsized M&A activity in the week prior. Two deals – targets Cray and Hulu - were in the billion-dollar range. The Walt-Disney Company acquired full control of Hulu for $5.8 billion, after what once was joint ownership by Disney, 21st Century Fox, Comcast, and Time-Warner.
Maker of Samuel Adams Buys Delaware Craft BreweryData from Pitchbook shows that $84.5 billion was invested in 33 deals across American M&A markets last week, 10 more deals and $71.1 billion capital than the week prior. Four of those deals were for over $2.5 billion, including $38-billion and $23.3-billion-dollar deals, both of which were in the energy space. Another deal that caught significant media coverage was that of Boston Beer Co., the brewer of Samuel Adams brand beers, which paid $300 million to acquire Dogfish Head Brewery, a craft beer maker from Milton, Delaware. Dogfish produces over 250,000 barrels of beer annually.
Chevron-Occidental Bidding War for Anadarko Heats UpPitchbook data reveals there were 23 deals for $13.4 billion invested capital in M&A markets last week. That is $9.8 billion more capital than the week before on two fewer deals. Two billion-dollar deals, 3M’s acquisition of KCI Holdings and Parker Hannifin’s acquisition of Lord, drove the increase in value from last week, contributing $6.7 billion and $3.7 billion, respectively, to the increase. M&A news was encapsulated by Occidental Petroleum and Chevron’s bidding war for Anadarko Petroleum and their Permian Basin shale-oil fields. Warren Buffett has committed to financing $10 billion of Occidental’s bid.
Cannabis M&A Spiked Last Week with Four Deals in the U.S.Pitchbook data shows M&A activity slowing last week, with $3.6 billion invested across 24 deals, $11.2 billion capital and seven deals fewer than the week prior. Japanese multinational conglomerate Hitachi shelled out $1.43 billion for Michigan-based industrial robotics integrator JR Automation in the week’s largest deal. Deal making in the cannabis space was hot last week, with four U.S. cannabis producers and distributors being acquired.
Waste Management Grows Eastern U.S. Operations by Acquiring Advanced Disposal Data supplied by Pitchbook reveals that $14.8 billion in capital was deployed across 31 M&A transactions last week, four deals more and $28.8 billion less capital than the elevated levels of the week prior. The largest deal of the week was Waste Management’s $4.9 billion acquisition of Advanced Disposal, which will help expand the nation’s largest waste collector’s East Coast operations. Also, Canopy Growth announced a deal to acquire Acreage Holdings once cannabis is federally legalized in the U.S.
Campbell’s Soup to Sell Bolthouse Farms Brand in Refocusing Effort Pitchbook data reveals that $43.6 billion in capital was spent on 27 M&A deals throughout last week, $28.4 billion more capital than the week before but on two fewer deals. Chevron (NYS: CVX) shelled out $33 billion to acquire Texas-based Anadarko Petroleum (NYS: APC) in the week’s largest deal.
Transportation Space Highlights Last Week’s M&A ActivityData from Pitchbook shows that $15.2 billion of capital was invested across 29 M&A deals last week, $4.4 billion less capital on two more deals than the previous week. The largest two deals during the week were Stonepeak Infrastructure Partners’ $3.6 billion LBO of Oryx Midstream Partners and the $2.44 billion acquisition of AmeriGas Partners by UGI Utilities. AmeriGas is a publicly traded propane distributor, and Oryx is a natural gas collection group. The transportation space was an active sector, as A&S Kinard and Buckler Transport were acquired by Day & Ross Freight; TFI International acquired Nebraska-based Aulick Leasing and its manufacturing business, ShurAul; and Providence Equity Partners acquired transportation software provider GlobalTranz.
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