Kansas City Companies Announce 152 M&A Deals in 2012

Jan 28 - Merger and acquisition activity in the Kansas City metropolitan area resulted in 152 publicly announced transactions in 2012 – an increase of three deals over 2011 – according to Kansas City investment banking firm CC Capital Advisors.

This figure reflects corporate transactions publicly disclosed for the calendar year 2012. Other private deals may not have been disclosed. A listing of all local transactions will be included in the 2012 edition of CC Capital Advisors State of M&A Report scheduled for publication in early February. 

“We are pleased to see signs of a recovery in M&A activity, particularly in the fourth quarter,” said John Hense, a managing director at CC Capital Advisors. “Although we have not returned to pre-2008 levels, there are definitely indications that companies are looking to M&A as a viable growth option. Once the continued uncertainty in the economy stabilizes both nationally and globally, we expect to see further acceleration as sellers become more motivated and buyers put their excess liquidity to work.”

Kansas City-area companies did more buying than selling in 2012, with 69 transactions involving a local buyer, and 61 involving a local seller. An additional 21 of the reported transactions involved both a local buyer and local seller. Activity was brisk on both sides of the state line as 86 transactions involved a Kansas-based company or companies, 65 involved a Missouri-based company or companies, and eight deals involved both a Kansas and Missouri participant. The year also saw 17 transactions that involved either a foreign buyer or seller.

The announced sale of 70 percent of Sprint Nextel to Tokyo-based Softbank, valued at $20.1 billion, was the top local deal in 2012. Tallgrass Energy Partners’ purchase of certain assets from Kinder Morgan for $3.3 billion and the sale of AMC Entertainment to Beijing-based Dalian Wanda Group for $2.6 billion rounded out the top three spots based on publicly disclosed transaction values.

This year’s M&A activity picked up substantially in the fourth quarter, making it the most active quarter since Q1 2007. Although much of the increase could attributed to the impending tax increases, corporate buyers were also out in force looking for ways to expend excess capital and generate new avenues of growth. Transaction volume nationally was down almost 3 percent from 2011, but also showed promising gains in the fourth quarter. A recap of local transactions by quarter follows. (see table).

Kansas City-Area M&A Activity by Quarter
 
  Year    Q1    Q2    Q3    Q4    Total   
  2012    39    29    33    51    152   
  2011    36    41    38    34    149   
  2010    34    31    45    50    160   
  2009    23    27    31    33    114   
  2008    41    27    29    33    130   
  2007    57    43    46    35    181  

Source: The CC Capital Advisors M&A Report

“This measured growth in M&A activity is an encouraging sign that we are returning to a more stable environment punctuated by high-quality transactions,” Hense said. “Last year saw several blockbuster deals, and a couple of new names for the active acquirer roster, including Mediware and SKC Communications and 14 private equity-backed deals. We also witnessed a growth in energy and healthcare transactions, following a national trend driven by geopolitical and regulatory factors.”

About Country Club Capital Advisors
CC Capital Advisors, part of Country Club Financial Services, a subsidiary of Country Club Bank, is a Kansas City-based investment banking firm that specializes in mergers and acquisitions, corporate fundraising, and financial and strategic planning for public and private corporations throughout the United States and abroad. Its team of professionals has an extensive amount of experience and expertise in a broad range of fields, including engineering and construction services; utility and infrastructure; agribusiness and animal health; and manufacturing, transportation and distribution.