North American power and utilities deals insights: Q3 2018

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Renewable and strategic asset deals drove quarterly deal volume and value

Evolving business models, portfolio rationalization, and growth opportunities are driving competition in the power and utilities industry. Buyers are pursuing deals to bolt-on growth opportunities and enhance their business models; while sellers are attracted to deals to shore up balance sheets, rationalize portfolios, and monetize investments at attractive valuations.

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Trends and Highlights

  • Overall deal value in Q3 2018 decreased compared to both the last quarter and Q3 2017 by 56 percent and 78 percent respectively. Though deal volume increased by 80 percent compared to Q3 2017, it decreased 10 percent comparing to last quarter.
  • Strategic and Asset deals drove both deal value and volume this quarter. Strategic deals contributed 70 percent and 67 percent and Asset deals 85 percent and 72 percent of the total deal value and volume respectively.
  • The renewable sector accounted for 61 percent of deal value in Q3 2018 compared to 27 percent of deal value in Q2 2018.
  • Continuing with the same trend as the previous quarter, Inbound deals were limited in this quarter in terms of deal value, representing 19 percent of total deal value, but continued to represent a notable amount of deal volume at 28 percent.
  • Natural Gas Transmission and Distribution continues to trade at the high end of the range of multiples for subsectors within the industry.

Contact us

Jeremy R. Fago

Principal, PwC US

Tel: +1 (720) 931 7285

Kenyon Willhoit

US Power & Utilities Deals Principal, PwC US

Tel: +1 (720) 931 7462

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