HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 51
AUSTRALASIA SLOW FINAL QUARTER CAPS A STRONG YEAR FOR M&A
A total of 70 deals were completed in Q4 2021, with a combined value of USD 8.1bn. This represented a 44% decrease on Q4 2020’s deal volume of 124 and a 7% decrease in total deal value compared to the USD 8.7bn in the corresponding quarter last year. The average transaction value for Q4 2021 was USD 166m, a 65% increase onQ4 2020 and the highest average deal value reported in any quarter sinceQ4 2011. Total Q4 PE deal value increased 22% to USD 2.2bn, up fromUSD 1.8bn in the corresponding quarter in 2020. The total proportion of mid-market PE transactions in 2021 decreased to 11.8% (49 transactions) of the total transactions completed, compared to 14.6% (46) in 2020. TMT and Business Services were the most active sectors in 2021, with 97 and 55 transactions respectively. Real Estate and Pharma, Medical & Biotech experienced the biggest increases, up by 167% and 76% on 2020 volumes, while the only sectors to experience a decline in deal volume were Business Services and Energy, Mining & Utilities, down by 4% and 2% respectively.
KEY DEALS The largest deal inQ4 2021 sawQuadrant Private Equity Pty Limited purchase JaybroGroup Pty Ltd for USD 428m. Jaybro supplies consumables, safety and geosynthetic products to the construction and infrastructure sector. The second ranked deal was the purchase of Australian Unity Diversified Property Fund for USD 411m by Australian UnityOffice Property Fund. The merger of the two funds signifies the beginning of a newmid-cap player in the listed Australian property securities sector, the fund now being in the same league as bothGDI property and APN Industria REIT. Another notable transaction was CPE Capital Pty Ltd’s sale of New Zealand company StraitNZ Limited to Morgan Stanley Infrastructure for USD 337m. StraitNZ Limited operates Bluebridge Cook Strait ferries and provides transport services for both freight and passengers between the North and South Island of New Zealand.
BIG PICTURE
• Q4 2021 deal volume decreased by 44% compared to Q4 2020, with total deal value also down by 7% • Overall 2021 deal volume increased by 31% compared with 2020, up from 316 to 415 deals, with total deal value increasing by 73% • Foreign interest in Australasia remains strong, particularly regarding large transactions, with foreign buyers involved in two of the top four deals and four of the top 10. Most foreign investors were from America and Europe, with minimal investment from China • With 479 deals in the pipeline, the region appears well placed to continue strong levels of M&A activity.
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