Value of M&A activity jumps 450% on pharma deals

The value of buyouts involving Irish companies jumped by a whopping 450 per cent this year on the back of several high-profile tax inversion deals in the pharmaceutical sector.

According to figures from information services group Experian, the value of mergers and acquisitions (M&A) in the first nine months of this year was €112.7 billion, up from just €25.1 billion last year.

This was by some way the highest level of M&A activity ever record by Experian, which has figures dating back to 1993.

The figures also show the value of Irish acquisition deals accounted for nearly 15 per cent of all European transactions for the period.

During the nine-month period, the volume of deals rose by 37 per cent to 259 again bolstered by deal activity in the medical and pharmaceuticals sector.

The Republic’s manufacturing sector has been the main driver of M&A activity this year, Experian noted, with 94 deals, representing 36 per cent of the total.

This was up 32 per cent from the 71 manufacturing transactions recorded last year.

However, the figures show deal volumes were up across the board, with strong growth in the professional, scientific and technical services sector ( + 9.4 per cent), information and communication (+12.2 per cent) and financial services, where deal volumes increased to 48 from 20 last year.

In the last quarter, Cooper Industries agreed to acquire UK contact lens producer Sauflon Pharmaceuticals for around €900 million, while Endo's recently announced €1.7 billion offer to acquire Auxilium Pharmaceuticals.

Experian's communications director Declan Murphy said: "Ireland returned a strong set of half-year M&A figures and the momentum looks to have continued into the third quarter.

“The substantial rise in overall values catch the eye, but while the mega-deals capture the headlines, just as pleasing is strong growth in the number of smaller and mid-market transactions.”

“In fact, numbers are up across the board, with improving economic sentiment seemingly translating to increased deal activity across a variety of sectors”.