Mergers & Acquisitions in May 2018
One of the higher value deals was the acquisition of EMI Music Publishing by Sony Corporation of America, for £2.7bn. The music industry is renowned for high value deals, and EMI Music has a strong reputation in the industry, with an impressive catalogue including Drake, Kanye West and Pink.
Kenichiro Yoshida, Sony’s new CEO, commented that the acquisition of EMI Music Publishing would be a “particularly significant milestone for our long-term growth”. The deal is the first acquisition by Sony under the new CEO, and looks set to be the start of an ongoing growth strategy.
A highly publicised and well-known deal in May saw Pret A Manger (Europe), the well-known coffee and sandwich shop, bought by JAB Holdings BV, an investment management company. JAB have a proven track record in investing in premium, well-known brands and it is thought they will help Pret to evolve and deliver growth.
Another high-street name was also involved in the M&A activity was Co-operative Group Ltd, who acquired Nisa retail, the well-known convenience store chain.
Other well-known companies and brands that were also acquired in the month of May include Proserv Holdings, Hawthorn Leisure, TNT Business Solutions and Cotton Traders.
Most sectors saw high levels of M&A activity across May, with some key deals taking place. For example, ALTEK Europe, a scrap processing equipment manufacturer was acquired by Harsco Corporation, for £70m, which is a key deal within such a niche sector.
The renewable energy sector again saw a number of significant deals, as the sector continues to grow. Mytrah Energy was acquired by Raksha Energy Holdings Ltd, as wind and solar power generation companies continue to be highly demanded.
With many household names involved in M&A activity this month, and a variety of sectors seeing high activity, May has certainly been a very active month in the M&A market overall, with sectors such as energy and retail set to continue prolifically for the remainder of 2018.
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A reliable company valuation serves as the first steps into this active M&A market, and helps form the beginning of potential exit strategies.