If your Fourth of July week felt more like a five-day pyrotechnics display you can thank private equity — which this year celebrated our nations birthday with a buyout blitz.
Of a staggering $64 billion announced in deals targeting U.S. companies last week, nearly three-quarters were backed by private equity, according to Dealogic. To put these LBO fireworks in perspective, just $11 billion in deals were announced last year during the holiday week — of which only 7 percent was private equity driven. And in 2005 private equity backed 9 percent of the $18 billion in U.S.-targeted M&A announced during the first week of July.
The Dealogic stats are below.
The private equity onslaught — which accounts for over a third of all U.S.-targeted M&A announced so far this year — means deals are much bigger than in past: last week Blackstone agreed to acquire Hilton Hotels for over $27 billion, including debt, while Carlyle offered to shell out more than $6 billion for Manor Care.
It also means that until the buyout boom finally subsides, those on Wall Street may want to rethink Labor Day plans.
| Announced US targets - 1st week July | |||
| Year | Value ($mm) | Number | PE backed ($) |
| 2003 | 15,979.7 | 159 | 11% |
| 2004 | 8,631.0 | 147 | 32% |
| 2005 | 18,196.3 | 139 | 9% |
| 2006 | 10,580.1 | 77 | 7% |
| 2007 | 64,115.8 | 81 | 71% |

Trackback