On the move
Whilst national and global deal volumes are down in the first half of 2024, Queensland’s 123 deals are up on 2023’s 117, and in line with the average of the last two years (2022: 128 deals). M&A appears to be “On the Move” both overall, and through deal activity increasing in sectors that keep the population and economy in motion.
The first half of 2024 included the following notable trends:
• Transportation – 9 transactions significantly exceeding the average of four deals over the last two and ten year periods. This was driven by freight & logistics providers together with bus services.
• Industrials & chemicals – 12 transactions with three deals relating to solar and energy management, including solar company Arkana Energy Group’s $100m sale to Germany-based 1komma5°.
• Technology, media & telecommunications – saw a resurgence to 27 transactions with application software businesses leading the way after a volatile couple of years for the sector (2022: 25 deals, 2023: 18 deals).
There were no “mega” deals during H1 2024, with transactions in the Small Cap end of town doing their part to maintain overall activity in line with previous years. From a sector point of view, lower transaction activity was seen across Leisure; Pharma, medical & biotech; and Financial services.
If you’re interested in knowing more about your industry sector’s M&A activity or you just want a chat about how we may be able to help you, please reach out. Regards,
p +61 421 613 060 e wface@pitcherpartners.com.au
3
Sectors trending up
Transport
Industrials and chemicals
Deals in the Transport sector reached their highest level since the publication of Deal Pulse, with 9 deals in H1 2024 being 5 transactions more than the two and ten year averages of 4 deals.
$9m $46m from avg 1 deals from 2 deals
Most active subsectors
• Freight and Logistics: 4
• Bus Service: 3
Notable deal
Pitchers advised France-based Groupe Petit Forestier on its investment in Eurocold, a refrigerated truck sales & rental business.
Avg value* Value $297m $160m from avg 3 deals from 2 deals
Most active subsectors
• Packaging: 2
• Power, Batteries & Charging: 2
Notable deal
Arkana Energy Group, a home solar and battery installation company, were acquired by Germany-based 1komma5° for $100m.
Technology, media and telecommunications
$340m $150m from avg 7 deals from 6 deals
Most active subsectors
• Application Software: 10
• IT Consulting: 6
Notable deal
Sovereign Cloud Holdings (ASX:SOV) made three acquisitions in a move to boost its cyber secruity capability and support the current cloud solution offering.
Balance of sectors
Energy, mining and utilities
17 16
Avg deals Deals
Avg value Value
$683m $338m from avg 12 deals from 12 deals
Most active subsectors
• Diversified Metals and Mining: 8
• Steel: 3
Notable deal
Stanmore Resources (ASX:SMR) acquired 100% of the Eagle Downs Metallurgical Coal Joint Venture from South32 and Aquila.
Business services
13 18
value Value $470m $57m from avg 5 deals from 6 deals
Most active subsectors
• Childcare: 5
• Security and Alarm Services: 2
Notable deal
Embark Early Education acquired four childcare centres at an average EBIT multiple of 4x.
Consumer
16 13
$302m $26m from avg 7 deals from 4 deals
Most active subsectors
• Beverages: 3
• Veterinary: 3
Notable deal
UK-based CVS Group made three acquisitions including clinics in Toowoomba and The Gap.
Construction
9 10 Avg deals Deals
Avg value Value
$447m $24m from avg 5 deals from 3 deals
Most active subsectors
• Environmental Consulting: 4
• Construction Materials: 2
Notable deal
Big River Industries (ASX:BRI) acquired Specialised Laminators Queensland in a deal worth over a reported $14m.
Agriculture
5 3 Avg deals Deals Avg value Value $138m $198m from avg 2 deals from 3 deals
Most active subsectors
• Poultry: 1
• Fertilizers and Agricultural Chemicals: 1
• Aquaculture: 1
Notable deal
Canada’s Public Sector Pension Investment Board, acquired a majority stake in Ellerslie Free Range Farms for a reported $180m.
Real estate
1 1
$5m $43m from avg 1 deal from 1 deal
Most active subsectors
• Retail REITs: 1
Notable deal
Charter Hall Group (ASX:CHC) sold its investment in Mackay’s Sydney Street Markets for $43m to Augustine Property.
Sectors trending down -70%
The Leisure sector experienced its lowest volume of transactions since the publication of Deal Pulse in H1 2024. The 3 deals in this sector all related to Hotels which included underlying property assets.
Avg
Value $277m $30m from avg 5 deals from 2 deals
Most active subsectors
• Hotels: 3
Notable deal
The Australian Rugby League Commission continued its investment in Queensland assets acquiring the Mercure Kawana Waters Hotel in a deal over $20m.
Value $114m $102m from avg 3 deals from 2 deals
Most active subsectors
• Health Care Services: 3
Notable deal
Emergency care specialist, Private Emergency Health Australia, sold a majority stake to private equity investor Advent Partners for a reported $51m.
3 deals
Most active subsectors
• Insurance Brokers: 2
• Wealth Management: 2
Notable deal
Prime Financial Group (ASX:PFG) acquired alternative asset fund manager, Altor Capital, for a reported $4m.
Warwick Face
Partner – Brisbane
p +61 421 613 060
e wface@pitcherpartners.com.au
Kieran Wallis
Partner – Brisbane
p +61 423 569 151
e kwallis@pitcherpartners.com.au
Ventura Caso
Partner – Brisbane
p +61 417 129 647
e vcaso@pitcherpartners.com.au
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Disclaimer : This publication contains general information and is not intended to be comprehensive, it has been compiled from both public and non-public sources including various transaction research tools. Whilst we have no reason to believe that the information in this document is not reliable and accurate, this cannot be guaranteed. Pitcher Partners, its subsidiaries or affiliates thereof are not liable for any error, omission or inaccuracy contained herein, whether negligently caused or otherwise, or for any loss or damage howsoever suffered by any person or entity due to reliance on this publication.