Wall Street Journal – Private Equity Beat

By Mohammed Aly Sergie

Mergers and acquisitions in the industrial and chemicals markets have rebounded to 2007 levels, driven by international expansion as well as private equity exits and distressed deals in the manufacturing and automotive sectors, according to a report by law firm Squire Sanders and data provider Mergermarket.

Midmarket deals valued between $5 million and $100 million made up two-thirds of total transactions in 2011, and strong corporate appetite for acquisitions “has been a boon for vendors and private equity funds looking to dispose of mature portfolio assets,” the report said.

Private equity has been especially active in the automotive space, closing on 61 deals worth $4.7 billion in 2011, a three-fold increase on the investment dollars spent a year earlier, Squire Sanders said. The sector’s largest deal for the year was the $999 million from Bain Capital and Government of Singapore Investment Corp. to Hero Investments, the holding company that bought Honda Motor Co.’s 26% stake in motorcycle maker Hero Honda Motors Ltd., now known as Hero MotoCorp Ltd.

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