US power industry sees a drop of 20.8% in deal activity in June 2019

16 July 2019 (Last Updated July 16th, 2019 05:34)

US power industry sees a drop of 20.8% in deal activity in June 2019

The US power industry saw a drop of 20.8% in overall deal activity during June 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 38 deals worth $5.62bn were announced in June 2019, compared to the 12-month average of 48 deals.

M&A was the leading category in the month in terms of volume with 20 deals which accounted for 52.6% of all deals.

In second place was venture financing with 12 deals, followed by private equity with six transactions, respectively accounting for 31.6% and 15.8% 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 $4.32bn, while private equity and venture financing deals totalled $1.16bn and $144.78m, respectively.

US power industry deals in June 2019: Top deals

The top five power industry deals accounted for 98.02% of the overall value during June 2019.

The combined value of the top five power industry deals stood at $5.51bn, against the overall value of $5.62bn recorded for the month. The top announced US power industry deal tracked by GlobalData in June 2019 was Infrastructure Investment Fund’s $4.3bn private equity deal with El Paso Electric.

In second place was the $1.12bn acquisition of Cube Hydro Partners by Ontario Power Generation and in third place was Centrica’s $37m acquisition of SmartWatt Energy.

The $32.6m venture financing of Carbon Lighthouse by Cox Enterprises and Avista Development, Constellation Technology Ventures, Element eight (seattle), Equinor Energy Ventures, Founders Co-op, Prelude Ventures, Techstars Ventures, Total Ventures and Wireframe Ventures’ venture financing of LevelTen Energy for $20.5m held fourth and fifth positions, respectively.

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.