US power industry sees a drop of 30% in deal activity in August 2019

20 September 2019 (Last Updated September 20th, 2019 12:35)

US power industry sees a drop of 30% in deal activity in August 2019

The US power industry saw a drop of 30% in overall deal activity during August 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 35 deals worth $1.75bn were announced in August 2019, compared to the 12-month average of 50 deals.

M&A was the leading category in the month in terms of volume with 20 deals which accounted for 57.1% of all deals.

In second place was venture financing with 12 deals, followed by private equity with three transactions, respectively accounting for 34.3% and 8.6% of overall deal activity in the country’s power industry during the month.

In terms of value of deals, M&A was the leading deal category in the US power industry with total deals worth $1.63bn, while private equity and venture financing deals totalled $63.73m and $50m, respectively.

US power industry deals in August 2019: Top deals

The top five power industry deals accounted for 94.8% of the overall value during August 2019.

The combined value of the top five power deals stood at $1.66bn, against the overall value of $1.75bn recorded for the month.

The top five power industry deals of August 2019 tracked by GlobalData were:

1) Advanced Drainage Systems’ $1.08bn acquisition of Infiltrator Water Technologies

2) The $475m acquisition of Ambit Energy Holdings by Vistra Energy

3) Ares Management’s $50m private equity deal with Infrastructure and Energy Alternatives

4) The $40m venture financing of Form Energy by Breakthrough Energy Ventures, Capricorn Investment Group, Eni Next, Macquarie Capital (USA), Prelude Ventures and The Engine

5) The Ecosystem Integrity Fund, Equinor Energy Ventures and Evergy Ventures’ venture financing of Sunverge Energy for $11m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

 

Visit our ‘Power Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the power industry.