Pharm and Biotech Help Drive Banner Year for EMEA Deals

The pharma, medical and biotech sector accounted for the top three announced deals of the year in the EMEA region in 2014.

2014 was a banner year for deals in all industries across the EMEA region, according to Mergermarket’s 2014 EMEA Deal Drivers report.   A total of 6,286 deals worth €671.5bn were announced across the EMEA region in 2014, representing an 8% year-on-year (YoY) increase in deal volume, and a 39% rise in deal value. And this year will see "European M&A build on last year's momentum in 2015", acording to Mergermarket's Beranger Guille.   Some of the report's other key findings include:

  • The pharma, medical and biotech (PMB) sector made sizeable gains in 2014, as volume increased 17% YoY to 431 deals, and value rose more than twofold to €86.2bn over the same period. Indeed, in EMEA, PMB accounted for the top three announced deals of the year, including Actavis’s €50.5bn acquisition of US-based pharmaceutical company Allergan.

  • The 39% YoY surge in deal values was fuelled by large gains in the number of deals over €2bn, with only a modest uplift in deals between €5m and €250m.

  • Private equity (PE) buyout volume increased 23% to 1,114 deals, and value rose 46% to €100.7bn. Valuations were driven up markedly compared to 2013: the average EBITDA multiple in 2014 was 75 times earnings, compared to 14.4 in 2013.

  • As in 2013, the UK and Ireland remain attractive markets, and drove both 2014 values and volumes for the EMEA region at 24.9% and 23.4%, respectively.

Click here to view the full report.   http://mergermarketgroup.com/publication/deal-drivers-emea-full-year-edition-2014