Mergers & Acquisitions in August 2018

August 2018 has seen 163 M&A deals across the UK, according to Zephyr, indicating the current strength of the UK market. Most major sectors have seen significant deal activity, in terms of both value and volume.

 

One of the highest value deals completed was the acquisition of Ziylo Ltd, by Novo Nordisk. Ziylo conduct glucose-binding molecular research and development. It is thought that Ziylo’s technology platform could accelerate the development of treatments for diabetes, a key aim in Novo Nordisk’s strategy. The deal is certainly one to watch for the remainder of 2018 as the two companies look to transform the lives of those suffering with diabetes.

 

Other sectors also saw high value deals complete, in the supplement sector, Probiotics International was acquired by Archer Daniels Midland (UK) Ltd, known as ADM, for £185m. Probiotics International is the leading provider of probiotic supplements for both human wellness and animal markets.

 

Jonathan Sowler, PIL Commercial Director commented: “There are great synergies with ADM and Biopolis, especially in the area of R&D, and we plan to add to an already very exciting development pipeline to provide innovative, evidence-based products of the highest quality for people and animals.”

 

One of the most highly publicised deals from August 2018, sees the acquisition of House of Fraser, by Sports Direct International, for £90m. The struggling UK high street chain was bought out of administration by the Mike Ashley owned brand. Mike Ashley commented, “My ambition is to transform House of Fraser into Harrods of the High Street,” he added, reprising an earlier promise to turn Sports Direct into “the Selfridges of sport.”

 

Other well-known businesses involved in this month’s M&A activity include Harvey Nash Group and Wear Inns Ltd.

 

Overall, August saw a number of significant deals across the UK, which saw a total of £4.3bn spent. Many of these deals were publicised across the globe due to their significance, drawing attention to the UK’s prospering economy and widespread M&A opportunities.

 

There appears to be no sign of this activity declining, as several other significant deals were announced, such as HP Inc. announcing the acquisition of Apogee Corporation for £380m. Apogee Corporation are an office equipment manufacturer and managed print services provider and the deal will allow HP to move further into the office printing market, with A3 and A4 printing opportunities cited as areas of particular interest.

 

Also, on August 31st Coca-Cola announced they will acquire Costa Coffee for £3.9bn, which could alter the drinks and retail industry as Coca-Cola look to accelerate their move into the hot drinks market.

 

As the UK market is so strong across all major sectors, it would be an opportune time to gain a company valuation and consider a potential exit strategy.

 

A reliable and fast valuation can be obtained using our free online calculator.