US M&A News and Trends

US M&A News and Trends

U.S. M&A deal activity increased in October, going up 10.0% with 898 announcements compared to 816 in September. However, aggregate M&A spending decreased. In October, 6.0% less was spent on deals compared to September.

Over the past 3 months, the sectors that have seen the smallest decreases in M&A deal activity, relative to the same three-month period one year ago, have been: Health Technology (107 vs. 102), Finance (369 vs. 372), Miscellaneous (11 vs. 18), Government (4 vs. 11), and Energy Minerals (50 vs. 62). Only one of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months compared to the same three months one year prior.

Over the past 3 months, the sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago have been: Consumer Services (166 vs. 269), Commercial Services (403 vs. 496), Industrial Services (102 vs. 175), Retail Trade (76 vs. 142), and Producer Manufacturing (146 vs. 198) Nineteen of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over the last three months compared to the same three months one year prior, for a combined loss of 724 deals.

Topping the list of the largest deals announced in October are: Vistra Energy Corp. agreeing to acquire Dynegy, Inc. for $1.7 billion; Lennar Corp. entering into an agreement to acquire CalAtlantic Group, Inc. for $5.7 billion; Impax Laboratories, Inc.’s agreement to acquire Amneal Pharmaceuticals LLC from Amneal Enterprises LLC for approximately $4.6 billion; Express Scripts Holding Co.’ agreeing to acquire Carecore National Group LLC for $3.6 billion; Assurant, Inc.’s deal to acquire The Warranty Group, Inc. for $1.9 billion.

U.S. private equity activity increased in October, up 15.1% from September. There were 107 deals in October compared to 93 in September. However, transaction value decreased, down by -31.4% to $12.7 billion from September’s $18.5 billion.