Money Buzz! Europa

Category: Investment

  • Deloitte: 2020, a difficult year for the M&A market

    Deloitte: 2020, a difficult year for the M&A market

    The mergers and acquisitions market (M&A) recorded 19 transactions in Romania in the first quarter of the year, four more compared to the same period in 2019.

    According to Deloitte’s estimates, the total value of the market, including transactions whose values were not disclosed, was between EUR 600 and 750 million in Q1 2020 (EUR 200-300 million in Q1 2019), while the disclosed transactions accounted for EUR 337 million (EUR 120 million in Q1 2019).

    Out of the total 19 transactions, only four were announced in March, the month during which a state of emergency was declared in Romania in the context of the COVID-19 outbreak.

    “Unfortunately, these are unprecedented times, governed by uncertainty on all levels. In this context, our expectations for the M&A market can’t be optimistic. Everything will depend on when and how this will end” said Ioana Filipescu Stamboli, Partner Corporate Finance, Deloitte Romania.

    Only four transactions with disclosed value were announced during the quarter and the tendency of non-reporting transactions values has remained strong.

    The largest transactions announced in the first quarter of 2020

    • the acquisition by the Czech developer CPI Property Group SA of a minority stake in Globalworth, the largest owner of office buildings in Romania and Poland, in a series of successive transactions, the largest amounting to approximately EUR 280 million;
    • the transfer by OMW Petrom, the largest energy company in South-Eastern Europe, of 40 onshore oil and gas deposits from Romania to Dacian Petroleum (undisclosed value);
    • The Brink’s Company’s takeover of cash operations of the UK-based G4S in 14 markets, including Romania (undisclosed value for Romania).

    The Romanian M&A market, in 2019

    • market value (disclosed value transactions): EUR 337 million;
    • estimated market value (including undisclosed transactions): EUR 600-750 million;
    • number of transactions (including undisclosed transactions): 19;
    • number of disclosed transactions: 4;
    • average value (calculated for disclosed transactions): EUR 84 million;
  • The M&A market in CEE recorded 726 deals in 2019

    The M&A market in CEE recorded 726 deals in 2019

    The M&A market in Central and Eastern Europe including Russia (CEE) recorded 726 deals in 2019, the same number as in 2018, according to a new report published by Mazars in association with Mergermarket.

    Of the 726 M&A deals in CEE last year, 40% were inbound deals from outside the CEE region – a figure on par with the past four years. This highlights the continued attractiveness of the region to international investors, in spite of a global downturn.

    In contrast, to deal volume, the total public deal value for CEE fell 12% in 2019 to €42.3 billion. This may indicate fewer big-ticket deals, but it is worth noting that the headline figure does not include transactions with publicly undisclosed values, including two investments in a liquified natural gas (LNG) project in the Russian arctic, which are likely to have been substantial.

    Further key findings from the report

    • As the most populous market and largest economy in the region, Russia once again leads the way for regional dealmaking, even with sanctions still in place. The deal value remained steady at €21.5 billion across 167 deals – up from 159 the previous year. Four of the top ten deals in the region and three of the top five took place in Russia, including the year’s largest transaction, which saw Japan Arctic LNG take a 10% stake in the Arctic LNG 2 project for €2.6 billion.
    • In terms of inbound activity, Poland rose to the number one leading destination in 2019. The country saw 65 bids, up from 51 in 2018. This was accompanied by a rise in deal value which increased more than twofold, from €1.9 billion to €4.6 billion.
    • CEE’s strong industrials sector continued to attract the most inbound deals at 56. However, these were mostly small and mid-sized transactions, totaling €1.1 billion, down from €5.5 billion the year before. Energy and utilities remained the top sector for value, with a total inbound deal value of just under €7.6 billion, up from €7.4 billion in 2018, reflective of the large ticket sizes of transactions in this sector.
    • Both international and regional private equity firms are attracted to the region – at a time of slow growth and low yields in many developed countries, CEE offers much-sought-after value as businesses reach maturity or consolidate. Private equity activity continues to grow, with a total of 69 buyouts in the region in 2019, two more than 2018.

    The M&A landscape in Romania

    After a difficult transition to a free-market economy, in recent years the country has become one of the region’s success stories, with buoyant growth and diversifying economy. One of the biggest markets in ECE, natural resources including oil and offshore gas, and a strategic location are all competitive advantages.

    Romania’s M&A volume rose 61% in 2019 to 50 deals, from 31 deals in 2018. Value also increased, by 45% to €815 million.

  • Angelini Pharma acquires ThermaCare from GlaxoSmithKline

    Angelini Pharma acquires ThermaCare from GlaxoSmithKline

    Angelini Pharma acquired the ThermaCare global business rights, excluding North America, from GSK. The deal also includes the dedicated US manufacturing site for ThermaCare in Albany, Georgia.

    The acquired asset supports Angelini Pharma reinforcing both its Consumer Healthcare business and consolidating its International presence. Heat therapy is widely known to help ease muscle pain, reduce soreness, and loosen tight muscles.

    ThermaCare uses patented technology that produces real heat to help the body rebuild damaged tissue and accelerate healing. This products are formulated for: Lower Back & Hip, Neck, Wrist & Shoulder, Knee & Elbow, Multi-Purpose Muscle, Multi-Purpose Joint and Menstrual.

    “Along to prescription drugs, Angelini Pharma is recognized for having built a successful Consumer Healthcare business by consistently delivering high-quality solutions to our customers,” said Angelini Pharma CEO Pierluigi Antonelli. “I am convinced that the ThermaCare® deal will represent a significant incremental growth engine for our accelerated international expansion.“

  • Media and Games Invest increases stake in Gamigo AG from 53% to 98%

    Media and Games Invest increases stake in Gamigo AG from 53% to 98%

    • Purchase price valuation is 50% below peergroup;
    • A further increase to 100% is planned short term;
    • Former Gamigo shareholders will receive shares with a 25 months lock-up period.

    Media and Games Invest plc is acquiring 1.05 million gamigo shares, representing approximately 45.5% of the total outstanding shares, thereby increasing its stake in gamigo AG from 53% to 98%.

    The agreements, which were approved today by the Gamigo Supervisory Board and the Board of MGI, were signed today. The transaction is expected to be completed within the coming days. It is planned to also acquire the remaining Gamigo shares thereafter.

    In the 12-month period from 1 October 2018 to 30 September 2019, Gamigo generated net revenues of EUR 56 million and EBITDA of EUR 16 million. Over the past five years, the company has grown by an average of 32% in terms of revenue and 64% in terms of EBITDA.

    The purchase price of EUR 16.5 million in cash and up to 18.2 million MGI shares represents a valuation of seven times EBITDA based on the 12-month period ending September 30, 2019. Thus, the purchase price is about 50 percent below the valuation of comparable companies. According to current data from E&Y Corporate Finance, gaming companies achieve an average valuation of 13.5 times EBITDA.

  • Romanian M&A market increased by 4% year-on-year in 2019

    Romanian M&A market increased by 4% year-on-year in 2019

    Following a decline in 2018, the mergers and acquisitions market in Romania grew by 4% to a total value of EUR 5.2 billion in 2019, according to a study by the PwC Romania and D&B David and Baias integrated transactions team.

    Transactions decreased by 9.6% to EUR 5 billion in 2018

    In 2019, 215 transactions were completed, 26% more than in 2018, with an average value of EUR 24 million. Of those transactions, 14 were valued at over EUR 100 million each, with 16 valued at between EUR 40 and 100 million.

    “The M&A market remains interesting and at a high level, both in value and in terms of number of transactions. Although it still has to recover to reach the record of EUR 5.8 billion in 2007, we are optimistic about the development prospects, because several sectors are evolving towards consolidation, such as the medical, banking and IT&C sectors”, said Dinu Bumbăcea, Partner and Advisory Leader PwC Romania.

    According to the report, the most dynamic sectors in 2019 were IT&C, real estate and pharmaceutical / medical services. By 2020, energy is expected to be one of the most dynamic sectors, with two major transactions expected: the sale of Czech group CEZ assets and those of the Italian company Enel. The Healthcare & Pharma segment will also continue to consolidate, with large players searching for smaller and niche players.

  • HR Path aquired InTalent to accelerate international growth

    HR Path aquired InTalent to accelerate international growth

    • HR Path announced that they have entered into a definitive agreement to acquire 100% of InTalent.
    • InTalent assists companies in elaborating strategies and deploying technological solutions related to the process of human resources management.

    “The acquisition of InTalent is part of our ‘Advise to Run’ strategy to offer our customers a full range of services from business consulting, implementation of HR solutions and post-go live quality services. This also reinforces our positions in the America Region,” says François Boulet, Co-CEO – HR Path.

    “Overseeing the business development of this area, I am really happy to reinforce our Montreal office with this very talented team. They currently work on business consulting and projects implementation and have developed strong partnerships with software vendors such as Oracle, Cornerstone and others. This will also be a great addition to the American customers,” adds Franck Pinel, Partner – HR Path.

    “I am really proud to join the group as we share the same values. I trust the HR Path capabilities will also benefit the current InTalent clients,” concludes Cofounder of InTalent,David Guérette.

    Who is HR Path

    HR Path helps companies for whom human capital is essential in their digital transformation. Advise, Implement & Run are the three business lines of the company, which contribute to the corporate HR performance.

    Founded in 2001, its 1000 talents support more than 1300 clients in 18 countries. To this date, its turnover is $125 million.

  • SanoVita Romania, aquired by a private equity firm based in Dallas

    SanoVita Romania, aquired by a private equity firm based in Dallas

    • Highlander Partners, L.P., a middle market private equity firm based in Dallas, Texas, announced the acquisition of a majority stake in SanoVita, writes Bucharest Post;
    • Founded in 1995 and headquartered in Râmnicu Vâlcea, SanoVita is one of the most reputable and trusted food brands in Romania.

    Since it was founded, the SanoVita brand (latin for “healthy life”) has represented a healthier alternative to traditional foods. The Company offers a wide range of products, including snacks, cereals, rice cakes, tofu, mueslis, and nut and seed mixes. 

    Its founders instilled in the Company their strong belief that nutrition is key to a healthy life, anticipating and contributing to the consumer shift towards better eating habits in Romania.  This trend is still in early stages in the country and growing rapidly. 

    Highlander’s portfolio includes a variety of food and beverage companies across the world. It plans to accelerate the growth of SanoVita by introducing new products, enhancing capabilities at existing production facilities and pursuing strategic M&A. 

  • UK banks approved nearly 1 million mortgages in 2019

    UK banks approved nearly 1 million mortgages in 2019

    Data gathered by Learnbonds.com indicates the United Kingdom’s banks approved 982.286 mortgages in 2019. This is an increase of 7.4% from 2018’s 909.597.

    According to the data, mortgage approval for home purchases increased by 8% for 2019 compared to the previous year. In total, 507.789 mortgages were approved for home purchases in 2019. The highest approval for home purchases was in July at 51.160.

    On the other hand, compared to 2018, there was a rise in remortgage approval for 2019 by 7.9%. Across the year, the total remortgages were 367,590. The highest remortgage approval was in October 38,549 while the least approval was in January at 23,618.

    For other borrowing avenues, there was an increase of 3% in 2019 compared to the previous year. Under this category mortgages, approval was 106,907 in 2019.

    The data further indicates that the entire market mortgage lending in 2019 was £265.8 billion following December’s £22.2 billion. The gross lending was 1.1% lower than in 2018.

    Under this figure, the high street banks’ lending was £172.1 billion to have a cumulative figure of £437.91 billion for 2019.

    The data shows that there was a spike in high street bank lending in October 2019 when lending stood at £25.1 billion.

  • IuteCredit opened a new business line in Bulgaria

    IuteCredit opened a new business line in Bulgaria

    International microcredit and fintech company IuteCredit has opened its new business line in Bulgaria, which is the 6th international market for the company.

    CEO of IuteCredit Europe, Tarmo Sild stated that the company is proud to be able to bring its fast and simple fintech service to a new ambitious market.

    “We are excited to bring our best fintech knowhow to Bulgaria and start offering fast installment loans, which enable Bulgarians to buy goods or to pay for services that improve the quality of life,” Sild brought out.

    CEO of IuteCredit’s new branch in Bulgaria, Kaloyan Radosslavov, said ”Our mission is to create extraordinary experience in personal finance by exceeding customers’ expectations”.

    IuteCredit is planning to open 5 offices in 4 cities in Bulgaria by the end of 2021.

  • Airbus, record commercial aircraft deliveries in 2019

    Airbus, record commercial aircraft deliveries in 2019

    • Record commercial aircraft deliveries
    • Strong underlying financial performance, FY 2019 guidance achieved
    • € -3.6 billion penalties recognised for agreements with authorities
    • A400M € -1.2 billion charge; export assumptions revised
    • Revenues € 70.5 billion, +11% YoY; EBIT Adjusted € 6.9 billion, +19% YoY
    • EBIT (reported) € 1.3 billion; loss per share (reported) € -1.75
    • 2019 dividend proposal: € 1.80 per share, +9% versus 2018

    Airbus SE reported Full-Year (FY) 2019 consolidated financial results and provided guidance for 2020.

    Net commercial aircraft orders increased to 768 aircraft (2018: 747 aircraft), including 32 A350 XWBs, 89 A330s and 63 A220s. At the end of 2019, the order backlog reached 7,482 commercial aircraft. Airbus Helicopters achieved a book-to-bill ratio by value above 1 in a difficult market, recording 310 net orders in the year (2018: 381 units).

    This included 25 helicopters from the Super Puma family, 23 NH90s and 10 H160s. Airbus Defence and Space’s order intake by value of € 8.5 billion was supported by A400M services contracts and key contract wins in Space Systems.

    Consolidated order intake in 2019 increased to € 81.2 billion (2018: € 55.5 billion) with the consolidated order book valued at € 471 billion on 31 December 2019 (end December 2018: € 460 billion).

    Revenues increased to € 70.5 billion

    Consolidated revenues increased to € 70.5 billion (2018: € 63.7 billion), mainly driven by the higher commercial aircraft deliveries and a favourable mix at Airbus, and to a lesser extent  the favourable exchange rate development.

    A record 863 commercial aircraft were delivered (2018: 800 aircraft), comprising 48 A220s, 642 A320 Family, 53 A330s, 112 A350s and 8 A380s.

    Airbus Helicopters recorded stable revenues supported by growth in services, which offset lower deliveries of 332 rotorcraft (2018: 356 units). Revenues at Airbus Defence and Space were broadly stable compared to the previous year.

    Aircraft deliveries rose by 43%

    On the A320 programme, NEO aircraft deliveries rose by 43% year-on-year to 551 aircraft. The ramp-up continued for the Airbus Cabin Flex (ACF) version of the A321 with almost 100 more deliveries than in 2018.

    The breakeven target for the A350 was achieved in 2019. Given overall customer demand for widebody aircraft, Airbus expects A330 deliveries of approximately 40 aircraft per year beginning in 2020 and the A350 to stay between a monthly rate of 9 and 10 aircraft.

    Airbus Helicopters’ EBIT Adjusted increased to € 422 million (2018: € 380 million), mainly reflecting an increased contribution from services and lower research and development costs. This was reduced by a less favourable delivery mix.

    EBIT Adjusted at Airbus Defence and Space declined to € 565 million (2018: € 935 million), mainly reflecting the lower performance in a competitive Space environment and efforts to support sales campaigns. The Division is targeting a restructuring programme to address its cost structure and restore profitability to a high single digit margin.

  • Flagship Sheraton and Marriott hotels at Frankfurt Airport

    Flagship Sheraton and Marriott hotels at Frankfurt Airport

    Marriott International has unveiled a new offering at Frankfurt Airport following a long-term commitment to upgrade and elevate the existing Sheraton Frankfurt Airport Hotel & Conference Center.

    The renovation of the property delivers a revamped Sheraton hotel to the market but also a brand-new Marriott hotel, bringing two of Marriott International’s most well-known brands together in one location for the first time.

    Each hotel is distinct and retains individual brand characteristics, including guest rooms, executive lounges and lobby experience, but shares expansive facilities including dining, conference and fitness. 

    Sheraton Frankfurt Airport Hotel & Conference Center divided by Marriott

    Previously occupying three inter-connected buildings with 1,008 rooms, the Sheraton Frankfurt Airport Hotel & Conference Center has been divided to allow for a 779-room Sheraton hotel and a 233-room Marriott hotel.

    Over the past five years, all rooms of the Sheraton hotel have been refurbished and will soon offer a new Sheraton Club Lounge, designed to offer the comfort and connectivity that Sheraton guests are looking for.    

    The Frankfurt Airport Marriott Hotel’s 233 contemporary guest rooms feature hard-wood flooring, comfortable work zones with sofas and flexible tables, and stylish lighting. The hotel also features the brand’s signature M Club, an exclusive 24/7 lounge for relaxing, working and meeting.  

    The final stage of the renovation will commence shortly with the refurbishment of the Sheraton lobby, Sheraton Conference Center, and shared dining facilities, of which there are two restaurants and two bars. T

    he Sheraton Conference Center, offering 57 meeting spaces across 4,148 square metres, has already been updated with a state-of-the-art lighting concept and will enjoy further refurbishments over the next two years.  The property expects to be fully transformed by the end of 2022. 

    Marriott International now offers five properties at Frankfurt Airport including Moxy Frankfurt Airport, Moxy Frankfurt Airport Kelsterbach and Element Frankfurt Airport.

  • Bird acquires Circ, European micromobility leader

    Bird acquires Circ, European micromobility leader

    • The combined company will result in Bird adding more than 300 employees to its European operations;
    • Bird announced a $75 million extension to its Series D funding round, bringing the size of the round to $350 million. 

    Founded by serial entrepreneur and investor, Lukasz Gadowski, Circ is a leading shared e-scooter company in Europe and the Middle East.

    With operations spanning across 43 cities in 12 countries, Circ has brought world-class city-centric solutions and customer service to millions of riders.

    “I founded Bird nearly three years ago because we need to change the status quo and take a transformative stance to combat the traffic and pollution that affect our cities and endanger people globally,” said Travis VanderZanden, founder and CEO of Bird.

    “To further advance our mission, we’re excited to acquire Circ which is the clear European leader. We like their laser focus on treating cities as their number 1 customer and their mindset of prioritizing profitability over growth.” 

    “With deep city partnerships and leading technology, we have established ourselves as the micromobility leader in Europe,” said Lukasz Gadowski, founder and CEO, Circ.

    “As a combined company with Bird, we will be able to significantly accelerate our mission throughout Europe to provide safe, available, affordable, convenient, and sustainable rides.” 

    Bird increases Series D to meet investor demand

    Just three months after announcing an initial $275 million Series D investment led by CDPQ and Sequoia Capital, Bird is increasing the round to $350 million. Due to demand, the series remained open providing investors the opportunity to become part of Bird’s global micro-mobility mission.

    Capital from the investment will be used to make rapid progress on the company’s path to profitability, to increase its vehicle development and research initiatives, and to support European expansion plans.