Irish deal flow stalls

Irish deal volume and values fell in the first nine months of 2013, according to data from Experian.

The total number of Irish M&A and equity capital market transactions in the first nine months of 2013 was just 149 - a decline of 37.1 per cent from the same period in 2012.

On a value basis, transactions worth € 22.2 billion were announced so far in 2013. Despite a significant boost from US pharmaceutical firm Perrigo 's agreement to acquire Dublin's Elan for $8.6 billion, transaction values were nonetheless down by 11 per cent on the first nine months of 2012.

Almost half of all M&A activity for the year to date involved the manufacturing sector, however deal volume in this sector was down by 38.8 per cent to 71 transactions. The next most active sector, wholesale, retail & repair, saw activity decline by 43.7 per cent.

The Perrigo / Elan transaction contributed to a significant spike in deal value in the Irish pharmaceuticals sector so far this year – overall, transactions worth € 14.9billion have been announced in the sector over the year to date, up from just € 1.8billion for the first nine months of 2012. Elsewhere, there was strong growth in post and telecommunications (with a 120 per cent upturn in deal volume), social and personal services (67 per cent) and research and development (33 per cent).

When looked at by scale, there were 23 large deals (over €120 million) announced so far in 2013, down by eight per cent on 2012. Mid-market (€ 12-€ 120million) deal activity also fell, with notable deals including Japanese conglomerate Marubeni’s acquisition of a 25 per cent stake in Mainstream Renewable Power for € 100million.

The number of small deals also fell, down by 37 per cent to 27 transactions, while the value also fell, down by 54 per cent to €94 million.

Year-to-date, Ireland represented about 2.1 per cent of the total volume of all European transactions, and accounted for 3.7 per cent of their total value.