Partner Article

North West inward investment exceeds half billion mark

Overseas buyers acquired more than half a billion pounds worth of North West assets in the third quarter of the year, according to research from Deloitte.

The accountancy firm’s ‘Cross-Border Deals Radar’ revealed that well over £581m was invested across 17 deals in three months up to the end of September. Three of those transactions were valued at more than £100m.

Key inward transactions from Q3 2013 included:

• The sale of Phones 4u’s Crewe-based insurance arm Lifestyle Services Group, in a £107m deal, to New York Stock Exchange-listed Assurant, a specialist insurance business;
• The £108m sale of Cheshire-based Payzone Group’s ATM business to Cardtronics, a NASDAQ-listed global ATM operator; and
• The sale of Manchester-based energy management company Green Sky Energy to German-based utility firm E.ON by its private equity backers LDC for an undisclosed sum.

During the same period last year, the North West saw 14 deals, representing a 21% increase.

Meanwhile, deal activity which saw North West businesses acquiring overseas assets also increased in Q3 2013, with 10 deals, worth £102million – compared to just six last year.

A significant deal from Q3 2013 included the £51million acquisition of Australian-based premium tea business T2 by consumer goods giant Unilever, which has a strong presence in the North West.

However, the average value of deals was much higher in Q3 2012 – swelled by the acquisition of Bertolli and P.F. Chang’s Frozen Meals businesses from Unilever by NYSE-listed packaged food company ConAgra Foods, for £169m.

Nigel Birkett, debt advisory partner at Deloitte in the North West, said: “The latest figures demonstrate an increased appetite for M&A in the region. We are seeing an increased appetite for businesses to invest, either by utilising cash reserves built up in recent years or re-gearing balance sheets as confidence in the economy improves. This increased investment should be a boost to the region and provide a platform for further growth.”

The data for Deloitte’s North West Cross-Border Deals Radar was gathered from Experian.

This was posted in Bdaily's Members' News section by Deloitte LLP .