North American power deals: Q4 2014 mergers & acquisitions report

February 2015
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North American power deals: Q4 2014 mergers & acquisitions report

At a glance

The number of deals valued at more than $50 million came in at 22, up from the 14 deals from a year ago. The total value of the deals grew by 68%, and the average value grew by 7%.

This report presents an analysis of North American merger and acquisition activity in the power and utilities industry.

Key trends in Q4 2014

  • This quarter, we saw a large increase in the volume and value of deals greater than $50 million. We had 22 deals this quarter, compared to 12 the quarter before and 14 during the fourth quarter of 2013.
  • Total deal value increased by 57% from the previous quarter from $11.1 billion to $17.4 billion. However, the average deal size decreased 14% from the previous quarter from $924 million to $790 million.
  • The key drivers to the growth this quarter were 3 deals > $2 billion (Cleco, HEI, and First Wind deals). Financial deals accounted for 35% of deals by value, up from 24% during the previous quarter.
  • In terms of deal type (corp vs. asset), corporate deals were 72% of deals by value, up significantly from last quarter (19%) and back closer to the proportions seen in Q1 and Q2 2014.
  • At 8%, foreign deals rose slightly from last quarter (5%).
  • Alternative deals represented 28% of deals by value, close to the same proportion as last quarter (26%).

Download previous Power Deals M&A reports

Also read PwC's Global Power & Renewables Deals 2014 outlook and 2013 review.