2018年-普华永道全球_Engineering_and_construction_quarterly_deal_insights_PwC_6页_1mb

PwC Deals Summary: Global Engineering and Construction M&A Insights Q3 2018

Core Content

This document provides an analysis of M&A activity in the global Engineering and Construction (E&C) sector during the third quarter of 2018. It highlights trends, key deals, and regional insights, while also offering a forecast for future activity.

Main Points

M&A Activity Overview

• Deal Value: Q3 2018 deal value increased by 5% from Q2 2018, but decreased by 14% compared to Q3 2017.
• Deal Volume: There were 449 deals in Q3 2018, down 21% from Q2 2018 and 31% from Q3 2017.
• Average Deal Size: The average deal size rose to $140.8 million, up 44% from Q2 2018 and 29% from Q3 2017.
• M&A Trends: Despite strong macroeconomic fundamentals, geopolitical tensions and trade conflicts are impacting deal values and volumes.

Megadeals

• The only megadeal in Q3 2018 was the $6.7 billion acquisition of a 51% interest in the WestConnex motorway by an Australian Investor Group.
• Megadeals are defined as transactions with disclosed value of $5 billion or more.

Regional Analysis

• Asia and Oceania was the most active region in terms of both deal volume and deal value, accounting for 77% and 91% of the total deal value, respectively.
• Domestic transactions dominated the market, with 91% of total deal value coming from within-border deals.
• North America and the UK and Eurozone also showed notable deal activity.

Sector Category Analysis

• The Construction and Civil Engineering categories were the main contributors to deal value and volume.
• Five of the top ten deals in Q3 2018 fell under the Construction category.

Investor Behavior

• Strategic investors accounted for 54% of deal value and 75% of deal volume.
• Financial investors increased their share of deal value to 46%, driven by the expectation of near-term profits from investing in construction companies.

Key Deals

Top 10 E&C Deals in Q3 2018

1. Sydney Motorway Corp.- WestConnex Motorway (Australia) - Acquired by an Australian Investor Group for $6,755 million (Pending)
2. USG Corp. (United States) - Acquired by Gebr Knauf KG (Germany) for $6,102 million (Pending)
3. Hochtief AG (Germany) - Acquired by Atlantia SpA (Italy) for $3,097 million (Pending)
4. SRS Distribution Inc. (United States) - Acquired by Leonard Green & Partners LP and Science Applications International Corp. (United States) for $3,000 million (Pending)
5. Engility Holdings Inc. and Century Textiles & Industries Ltd.- Cement Business (India) - Acquired by Ultratech Cement Ltd. (United States) for $2,395 million (Pending)
6. Binani Cement Ltd. (India) - Acquired by UltraTech Cement Ltd. (India) for $1,118 million (Pending)
7. ESCO Corp. (United States) - Acquired by Weir Group PLC (United Kingdom) for $1,051 million (Completed)
8. Nuova Argo Finanziaria SpA (Italy) - Acquired by Ardian Infrastructure Fund IV (France) for $985 million (Pending)
9. Katerra Inc. (United States) - Acquired by an Investor Group (Japan) for $865 million (Completed)

Top 10 E&C Deals in 2017

• Deals included mergers such as Atlas Copco AB acquiring its Mining & Civil Engineering Business, and CRH PLC acquiring Ash Grove Cement Co..
• These deals spanned multiple countries, including the United States, Germany, China, and United Kingdom.

Top 10 E&C Deals in 2016

• Notable deals included KUKA AG and China National Petroleum Corp., Joy Global Inc. and Komatsu America Corp., and Linea Amarilla SAC and VINCI Highways SAS.
• These deals were concentrated in China, United States, and Peru.

Outlook

• M&A Activity: The E&C sector underperformed in 2018 YTD, with 1,650 deals, down 19% from 2017 YTD.
• Positive Fundamentals: Strong industry fundamentals, including favorable tax policies, low-cost debt financing, and a new US infrastructure bill, are expected to support future M&A activity.
• Geopolitical Impact: Trade tensions and geopolitical issues are likely to continue limiting M&A activity, especially cross-border deals.
• Future Growth: As geopolitical tensions ease, M&A activity is expected to rebound in 2019, driven by strong infrastructure pipelines and improved market conditions.

About PwC's Deals Practice

• PwC offers integrated M&A solutions to E&C companies and private equity firms, covering strategic advice, due diligence, tax, integration, and post-deal services.
• The firm has 20,000+ deal practitioners globally, with expertise in both engineering and construction and local market knowledge.
• Contact information for key PwC leaders is provided for further consultation.

Data Sources

• The data is sourced from Thomson Reuters and other publicly available sources.
• It includes deals with SIC codes in the E&C industry groups, with adjustments made to exclude non-E&C transactions and include relevant ones not captured by SIC codes.
• The analysis covers all individual M&A transactions from October 1, 2015, to September 30, 2018, including completed, partially completed, and pending deals.