Plus: Canadian CEOs more bullish on acquisitions in 2013 than global
TORONTO, May 9, 2013 /CNW/ - While mega-deals fell silent, mid-market
activity took reign in the first quarter of 2013, according to the
latest PwC Capital Markets Flash Report. The average deal size last quarter was $85 million, with just four
deals over $1 billion. Of the 570 tallied deals, 39 were over $100
According to the report, the Canadian real estate sector is responsible
for the quarter's largest M&A deal- H&R REIT and KingSett Capital
Consortium's $4.5 billion deal for the assets of Primaris REIT. Real
estate is also one of the most active sectors by both volume and value,
with real estate investment trusts (REITs) accounting for over 90% of
activity in the sector, which equates to a third of total deal value
across all industries.
Canadian real estate has been one of the steadiest areas for investors
in the last five-plus years, states the report. "If you're a quality
REIT with a good track record today, you have easy access to capital,"
says Don Fitzpatrick, President of PwC's Deals real estate practice.
"If most of the established REITs want to go to market to raise a few
hundred million dollars, they can do so very quickly."
Canadian pension funds also made an impression on the Q1 stats. Their
continuing global search for high quality assets produced overseas
infrastructure acquisitions that were three of the largest deals in Q1.
"Canadian pension funds are looking to diversify their holdings away
from their historical over-weighting in Canada," says Richard Pay, Transaction Services Partner, PwC. " They're continuing to be more active and innovative in managing their
funds than their global counterparts. This has been demonstrated by
their investments across a wide range of asset classes, sectors and
The report also indicates that debt financing terms for high quality
businesses are back to pre-crisis levels. "There's sufficient liquidity
in the market for the right players, but it's only for the right
assets, which means strong cash-generative issuers that present little
down-side risk," says Nicolas Marcoux, Canadian Deals Leader, PwC.
Canadian CEOs more bullish on acquisitions in 2013 than global
Looking at the Canadian M&A components of PwC's 16th Annual Global CEO Survey, results show that in terms of looking forward, Canadian respondents
were more bullish than their global counterparts when it comes to the
likelihood of growing their companies through acquisitions, joint
ventures or strategic alliances in 2013.
Canadian CEOs are becoming more confident about forward economic
prospects, largely because of the slow-but-sure improvements in the
U.S. "Recent economic uncertainty has led to many companies reigning in
the more aggressive aspects of their growth strategies over recent
years. Returning confidence, together with strong balance sheets and
market liquidity, will continue to increase levels of M&A activity,"
PwC's Capital Markets Flash Report is available at http://www.pwc.com/ca/quarterlydeals. A copy is also available from the media contacts. Note, all dollar
values are in American in the Capital Markets Flash Report; Dollar
figures in the PwC 16th Annual Global CEO Survey are Canadian.
About PwC's Deal Team
PwC's Deal Team (www.pwc.com/ca/deals) helps clients to achieve deal success — from concept to close and
beyond. As part of the world's largest Transaction Advisory practice1, the PwC Canada Deals Team is your gateway to an exciting new world of
emerging M&A opportunities.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with more than 180,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2013 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the
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1Source: Kennedy; "Business Advisory Services Marketplace 2012" © BNA
Subsidiaries, LLC. Reproduced under license.
SOURCE: PwC Management Services LP
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