Boost as value of private equity buyouts reach two-year high

Takeovers such as the £950m swoop for retailer Pets at Home pushed the value of UK private equity buyouts to a two-year high in the first quarter of 2010, figures showed.
By The Newsroom
Published 20th Apr 2010, 13:31 BST
Updated 20th Apr 2010, 13:31 BST

The total value of private-equity backed deals reached 5bn in the first quarter, helped by the buyout of the Cheshire-based chain as well as medical courier Marken, the Centre for Management Buyout Research (CMBOR) said.

In Yorkshire, private equity firm Phoenix took a majority stake in Andrew Page in a transaction valuing the family-owned business at around 100m and HG Capital took majority stake in JLA in a deal believed to value the family-owned firm at around 150m.

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The value of business done nationwide in the opening months of 2010 already exceeds the 4.7bn seen for the whole of last year and is at its highest since the first quarter of 2008 before the recession began, CMBOR added.

Private equity firms benefited from a glut of cheap debt during the boom years but the onset of the credit crunch in late 2007 put an end to the buyout boom.

Barclays Private Equity director Christian Marriott said the upturn signalled a "renewed appetite" among private equity firms to spend, helped by better lending conditions and visibility on earnings.

Activity nonetheless remains well below the 20.4bn in deals seen at the peak in the second quarter of 2007.

Related topics:Pets at HomePhoenix