West Mids PE deals on the increase
The West Midlands private equity-backed buyout market has risen above the £1bn threshold for the first time in three years, according to new research.
Data published by the Centre for Management Buy-Out Research (CMBOR) said the value of PE-backed buyouts in the region reached £1.1bn in 2011. This compares to a total of £801.3m in 2010 and £88.3m in 2009.
The number of deals in the region also rose significantly –20 were completed in 2011, up from 11 the year before.
The West Midlands figures were boosted by the sale of Phones4u in April 2011, valued at £677m (the fourth largest deal across the UK) and the sale of Pattonair in July which was valued at £146m.
CMBOR's research was sponsored by Equistone Partners Europe (previously Barclays Private Equity) and Ernst & Young.
Nick Gillott, director of M&A lead advisory at Ernst & Young in Birmingham, said: "It's great to see the West Midlands performing relatively strongly when compared to the national picture in what continues to be a very volatile environment.
"The pipeline of deals as we enter 2012 is encouraging, and with capital available to drive continued activity in the secondary buyout market, we are optimistic that 2012 will see another robust performance in the context of a slower broader market recovery."
