Six-year high for M&A quarter

MERGER and acquisition (M&A) activity in Ireland in the last quarter was the best in six years, according to NCB corporate finance.

Foreign acquisitions by Irish companies was the most prolific sector, while there was high activity in building, construction and the property sectors.

Activity in the first quarter of the year was up one, to 57 deals, on the last quarter of 2010.

However, deal values fell by 64.3% to €921.6m against €2.58bn in quarter four 2010, which included ESB’s €1.413bn acquisition of NIE.

Total deal value in quarter one 2011 shows an increase of 82.5% on the €505m recorded in the same quarter last year.

The deals during the first quarter of the year represented a 58.3% increase on the 36 deals in the same quarter in 2010.

Director of NCB Corporate Finance Jonathan Simmons said the average quarterly deal volume over the last four quarters was 44 compared to 32 in the corresponding periods of 2009 to 2010, demonstrating a “resilient improvement” since the lows seen in mid-2009 of around 30 deals per quarter.

The building, construction and property sector accounted for 31.6% of the deal volume last quarter with a total of 18.

This was due to a substantial amount of activity by CRH, who recorded a total of 13 acquisitions and investments at a total cost of €135m.

The food sector saw a total of nine deals recorded during the quarter, including Glanbia’s acquisition of the American company Bio-Engineered Supplements and Nutrition Inc for a reported €107m and Origin Enterprises’ acquisition of United Agri Products for €43m.

Foreign acquisitions by Irish companies saw the most deal activity during the first quarter of 2011, with 27 deals.