Private equity buyouts tripled last year

A new study reveals that the amount of private equity buyouts tripled last year in the North East, despite the fact that nationally the trend showed a decrease. According to the Centre for Management Buyout Research, £281m worth of deals were completed by the time that 2011 closed which is giant increase from the £83.4 worth of deals that were completed in 2010.

This is an even larger jump from 2009 when the recession first hit and the amount of deals were valued at £54.6m. The new figures from 2011 only account for five deals that were made last year in the North East, with a large amount of the total value coming from the buyout of Lloyds TSB Development Capital which was a deal worth over £100m.

Equistone Partners Europe sponsored the research along with Ernest & Young.  Nationally, the data reveals that private equity buyout has actually decreased in value, dropping down to just £12.1bn by the close of 2011.  The amount of deals also decreased with only 176 deals completed versus the 183 deals seen in 2010.

Outside of the Lloyds buyout, most of the activity in the North East was the result of the lower-mid market, with three deals completed in the £25-50m price range.  There was no clear sector involved in the buyouts primarily as they were spread out across food and drink, support services, business, TMT, healthcare, and manufacturing.

Partner Steve O’Hare of Equistone Partners Europe in the North stated that although the amount of deals that were actually completed in the North East remained the same over the course of 2011, it was encouraging to see that the overall value of the deals had increased.