Deal making across the North of England has soared throughout 2021, with private equity houses completing almost 60 deals worth £19.1bn in the last 12 months.
Data from CMBOR, the Centre for Private Equity and MBO Research and funded by Equistone Partners Europe as an exclusive sponsor, reveals that the total value of deals in the North this year is the highest in the decade since the research began. Year-on-year, 2021 deal values accounts for five times more than the £3.7bn recorded in 2020 and is more than ten times higher than the £1.5bn in 2019.
According to CMBOR’s first full-year data announcement since its re-establishment within Nottingham University Business School, deal volume is also on the up in Northern regions, with the highest number of deals completed since 2014.
PE houses completed 23 deals in Yorkshire and the Humber during the year, accumulating the highest value of deals across the UK in 2021 with a total of £14.98bn, ahead of London (£10.83bn). The region was fourth on the list of deal volume with 23 completions, following London (64), South East (40) and North West (31).
The retail sector skyrocketed to £14bn, almost a third of total UK value for the year in 2021, driven by two Yorkshire & Humber transactions; TDR Capital’s £6.8bn carve-out of Leeds-headquartered supermarket ASDA in February 2021 and the £7.1bn takeover of Bradford-founded Morrisons in October.
Andi Tomkinson, partner at Equistone Partners Europe, said: “This year has demonstrated just how resilient private equity is across the UK and in the North of England in particular, highlighted by the record year we’ve had in 2021.
“Despite the obvious challenges faced by businesses and investors as a result of the pandemic, the market is stronger than ever. Valuations are on the up and there is a real focus on growth once again; something that we expect to continue well into 2022 and beyond.”
