The volume of M&A deals in Ireland reached a five-year high in 2018, according to William Fry’s annual M&A Review 2018.
Shane O’Donnell (pictured), Head of Corporate/M&A at the law firm, commented: “Activity was strongest in the first three quarters of the year, with both the value and volume of M&A deals falling as 2018 drew to a close. This is consistent with global M&A patterns and reflects growing unease due to political and economic uncertainty."
The underlying data in the report comes from the Mergermarket database.
Mid-market deals valued at €5m-€250m accounted for 93% (65 deals) of the total number of deals where pricing was made publicly available. Of these, over half were in the €15m-€100m bracket.
Two noteworthy deals were UK company Nomad Food's €226m acquisition of Green Isle Foods, and Groupe Circet’s €150m acquisition of KN Group.
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The largest private equity deal in Ireland for 2018 was the Cinven acquisition of AXA Life Europe, which was valued at under €1bn. Another large PE deal was Apollo's €500m acquisition of hotel management business Tifco.
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Nine of the top 10 largest deals of 2018 were inbound transactions. Notable deals included the €495m acquisition of the Mater Private Group by France's InfraVia Capital Partners, and the 30% stake acquisition in Avolon Holdings by Japan's ORIX Aviation Systems.
O’Donnell said outbound activity was also buoyant, with 102 deals with a value of €6.1bn taking place during 2018. They included Smurfit Kappa's €460 acquisition of paper and board recycling business Reparanco in the Netherlands, and Kerry Group's acquisition Fleischmann's Vinegar Group in America for €350m.
O’Donnell observed: “The rise of large financial services transactions over the last two years are in part a reflection of Ireland's strength in the aircraft leasing subsector, but it also demonstrates the attractiveness of Dublin as a base for businesses in the sector looking for alternatives to London.
“Dublin has positioned itself as a hub for previously UK-based firms that need to service EU clients and has attracted names such as Barclays and Merrill Lynch, which have both received authorisation to expand in Ireland.”
In O’Donnell’s view, the outlook for M&A activity in Ireland is more subdued this year. “However, the fact that mid-market activity accounts for such a significant share of Irish M&A will mitigate against downward pressure that may be seen in some other markets where larger deals are more prevalent,” he added.
