Mergers & Acquisitions in December 2018

The end of 2018 saw high levels of M&A activity with 200 deals completed and a total deal value of over £20.6bn.


One of the higher value deals completed in December was the acquisition of ScottishPower Generation Ltd, by Drax Smart Generation Holdco Ltd, a British power generation company. The power generation and supply sector is rapidly expanding to enable ideas of a zero carbon, lower cost future.


Will Gardiner, Chief Executive Officer of Drax said: “I am excited by the opportunity to acquire this unique and complementary portfolio of flexible, low-carbon and renewable generation assets.”


“As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow.”


“This acquisition makes great financial and strategic sense.”


The hotel and restaurant sector has seen a high number of deals this month with Mabel Topco Limited, trading as Wagamama, acquired by The Restaurant Group plc for £559m. TRG already has a large portfolio including Chiquito, Garfunkel’s and Frankie & Benny’s.


“This transaction is an exciting and transformative opportunity to create a business which can pursue a truly multi-pronged growth strategy and create substantial value for our shareholders.”, commented Andy McCue, CEO of TRG.


Within the hospitality sector, Pandox AB acquired The Midland Hotel for £115m and Radisson Blu Hotel Glasgow for £39m.


Within the insurance sector, Friends Provident International Ltd has been acquired by RL360 Holding Company Ltd in a deal worth £340m, and Finch Commercial Insurance Brokers Ltd acquired Specialist Insurance Agency Ltd for an undisclosed fee.


As well as a significant deal activity involving domestic buyers, overseas activity was also high. Ferrous Resources Ltd was acquired by Vale SA for £433m, Pelidona Services Ltd acquired a majority stake in Regal Petroleum plc and Trayport Contigo Ltd, a certified software provider, was acquired by Energy One Ltd.


AFH Financial Group plc completed its 15th and final acquisition of the year with CTL Three Ltd, an independent financial advisory, for £10m.


December’s deal activity maintains the positive direction of this buoyant M&A market for 2019. The number of interested overseas acquirers is still growing alongside the UK trade and private equity investors.


With the new year in full swing, now is an opportune time to consider the value of your company and discover potential options for the future.


Our team are highly experienced within company valuations and M&A and can help you to understand the value of your company. Please feel free to call the team on 0203 441 2003.


Alternatively, you can use our online valuation calculator which will provide you with your company valuation.