The Institute for Mergers, Acquisitions and Alliances (IMAA) provides a detailed weekly roundup of mergers and acquisitions news, highlighting the most significant global M&A deals. This essential update offers a snapshot of the latest movements and trends within the M&A market, showcasing the top transactions that stand out in the corporate world. Through this coverage, IMAA aims to furnish M&A professionals and enthusiasts alike with a comprehensive overview of the week’s M&A activities, helping them stay informed about the evolving landscape of global mergers and acquisitions.
From April 15 to April 21, the global market witnessed a total of 488 Mergers and Acquisitions (M&A) deals, aggregating to a combined value of USD 18.42 billion. Notably, 8 transactions surpassed the USD 500 million threshold, collectively reaching USD 11.19 billion, constituting 61% of the total deal value for the week.
The most significant deal of the period was Prysmian’s acquisition of Encore Wire, a leading manufacturer of wire and cable products, valued at USD 4.15 billion. This acquisition marks the largest deal ever undertaken by Prysmian. With the escalating price of copper, anticipated to persist due to the electrification and green movement, coupled with a rebound in the construction industry, this acquisition presents a strategic advantage for Prysmian.
In comparison to the previous week, there was a marginal 1% decrease in deal count, declining from 492 to 488. Additionally, the total deal value experienced a 37% decline, falling from USD 29.39 billion in the preceding week to USD 18.42 billion in the current week.
Top 5 M&A Deals for the Week
Here are the top 5 M&A Deals for the week of April 15 – 21, 2024 in detail:
Deal No. 1: Prysmian S.p.A. to Acquire Encore Wire Corporation for USD 4.15 Billion
Deal No. 2: VINCI Airports SAS to Acquire Edinburgh Airport Limited for USD 1.58 Billion
Deal No. 3: ADI Global Distribution to Acquire Snap One Holdings Corp. for USD 1.40 Billion
Deal No. 4: Smith Entertainment Group Acquired Contracts of Arizona executives, coaches and players of IceArizona Hockey Co LLC for USD 1.20 Billion
Deal No. 5: Coventry Building Society to Acquire The Co-operative Bank Holdings Limited for USD 0.97 Billion
Deal No. 1:
Prysmian S.p.A. to Acquire Encore Wire Corporation for USD 4.15 Billion
Prysmian, a leading cable manufacturer, has announced its intention to acquire Encore Wire, a prominent player based in the United States, for EUR 3.9 billion (USD 4.15 billion, including debt). The deal involves Prysmian paying USD 290 per share in cash, signaling a strategic move to strengthen its position in the North American market, which already serves as a significant source of its profits.
Encore Wire specializes in the production of copper and aluminum wires and cables catering to residential, commercial, and industrial sectors. This acquisition aligns seamlessly with Prysmian’s strategic goals, offering opportunities to tap into key growth drivers, expand its product portfolio, and anticipate EUR 140 million in run-rate EBITDA synergies within four years post-closure.
Moreover, Prysmian plans to maintain a substantial presence at Encore Wire’s integrated facility located in McKinney, Texas, following the completion of the transaction.
The transaction is slated to conclude by the latter half of 2024. Prysmian is advised by Goldman Sachs Bank Europe SE, Succursale Italia, while J.P. Morgan Securities LLC serves as the exclusive financial advisor to Encore Wire.
Deal No. 2:
VINCI Airports SAS to Acquire Edinburgh Airport Limited for USD 1.58 Billion
Vinci Airports is poised to secure a 50.1% ownership stake in Edinburgh Airport, Scotland’s busiest aviation hub, in a deal valued at GBP 1.27 billion (USD 1.6 billion). This strategic move underscores Vinci’s commitment to expanding its footprint in the United Kingdom. With a diverse portfolio encompassing over 70 airports spanning 13 nations across Europe, Asia, and the Americas, Vinci Airports adds Edinburgh to its UK network, which already includes Gatwick and Belfast International.
Strategically located in Scotland’s capital, Edinburgh Airport serves as a crucial transportation hub for the region, offering exceptional connectivity to travelers.
Drawing upon its extensive global airport expertise, Vinci Airports plans to enhance Edinburgh Airport’s development, focusing on both its aeronautical and non-aeronautical aspects, particularly in the realm of retail. This includes the introduction of new routes and targeted investments. Vinci Airports also aims to leverage its environmental proficiency to strengthen the airport’s already impressive ESG metrics.
Edinburgh Airport’s status as a freehold airport without concession constraints makes it a valuable asset for Vinci Airports, aligning with the company’s long-term investment strategy.
Pending regulatory approvals, the completion of this transaction is expected in the summer of 2024. Vinci Airports will assume control of 50.1% of the airport, while the remaining 49.99% stake will continue to be managed by Global Infrastructure Partners (GIP), the current owner since 2012.
Deal No. 3:
ADI Global Distribution to Acquire Snap One Holdings Corp. for USD 1.40 Billion
Resideo Technologies, a renowned global provider of essential comfort and security solutions for residential settings, has announced its acquisition of Snap One, a leading provider of smart-living products, services, and software catering to professional integrators. Valued at USD 1.4 billion (equivalent to USD 10.75 per share) in cash, this strategic move will see Snap One seamlessly merging into Resideo’s ADI Global Distribution arm.
The strategic merger of ADI’s security product distribution prowess and Snap One’s smart living market expertise, including their Control4 technology platforms, aims to enhance value for integrators and financial returns. Together, ADI and Snap One will provide integrators with a broader range of third-party products and proprietary offerings through an extensive physical branch network bolstered by advanced digital capabilities. This integration will streamline purchasing, improve product availability, and enrich the Control4 integrator base with enhanced service levels, rapid product fulfillment, and expanded exclusive offerings like Control4 Connect and Assist.
Expected to be finalized in the second half of 2024, Evercore and Raymond James & Associates, Inc. are providing financial advisory services to Resideo, while Moelis & Company LLC and J.P. Morgan Securities LLC are advising Snap One.
Deal No. 4:
Smith Entertainment Group Acquired Contracts of Arizona executives, coaches and players of IceArizona Hockey Co LLC for USD 1.20 Billion
The Arizona Coyotes have announced a change in ownership, as Smith Entertainment Group, led by Ryan and Ashley Smith, owners of the NBA’s Utah Jazz, has acquired the team from billionaire Alex Meruelo for USD 1.2 billion. The deal includes the transfer of players, draft picks, and the hockey operations department to a new Utah-based franchise under the Smiths’ leadership.
However, certain assets such as the team’s name, logo, uniforms, and other intellectual property will remain with the Arizona Coyotes. This transition has been approved by the NHL Board of Governors, along with a provision that renders the Arizona Coyotes franchise inactive, with a right to reactivate if owner Alex Meruelo constructs a new, state-of-the-art facility suitable for an NHL team within five years.
The forthcoming Utah franchise is set to receive a new name and will kick off the 2024-25 season at the Delta Center in Salt Lake City. This move represents a significant achievement for the Smiths, who have long desired to bring an NHL team to Utah.
Salt Lake City’s bid to host the 2034 Winter Olympics underscores the region’s strong association with winter sports, further highlighting the significance of this acquisition.
This venture adds to the Smiths’ ownership portfolio, which already includes Major League Soccer’s Real Salt Lake and the NBA’s Jazz, solidifying their presence across diverse sporting realms.
Deal No. 5:
Coventry Building Society to Acquire The Co-operative Bank Holdings Limited for USD 0.97 Billion
Coventry Building Society, a significant player in the UK mortgage market, has made an offer of GBP 780 million (equivalent to USD 971 million) to acquire the Co-operative Bank from its current hedge fund owners. This potential transaction, if completed, would mark a notable development in the landscape of UK banking.
The proposed acquisition involves Coventry Building Society absorbing the three million customers of the Co-operative Bank, potentially elevating its position to the seventh largest lender in the UK, with assets totaling around GBP 89 billion. Negotiations between the two entities have been underway for nearly four months, commencing in December. The Co-operative Bank presently serves approximately 2.6 million retail customers and over 93,000 small and medium-sized enterprises. For Coventry, this merger presents an opportunity to strengthen its market presence in current accounts, expand its branch network, and enter into business banking.
This potential deal is part of a broader trend of consolidation within the UK banking sector. It follows recent acquisitions such as Barclays’ purchase of Tesco Bank for GBP 700 million in February and Nationwide Building Society’s GBP 2.9 billion takeover of Virgin Money in March.
Nevertheless, before reaching a final agreement, extensive negotiations are expected, and both parties emphasize that the completion of the acquisition is not guaranteed and remains subject to regulatory approval. Additionally, a portion of the GBP 780 million offer, up to GBP 125 million, may be deferred for three years contingent upon the performance of the Co-operative Bank.
This concludes our M&A news coverage of the top global mergers and acquisitions deals for the week of April 15 – 21, 2024. For continuous and detailed insights into the evolving landscape of M&A news, we invite you to follow the Institute for Mergers, Acquisitions, and Alliances (IMAA).
