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%).