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| Georgieff Capital Advisors GmbH | Herzog-Adolph-Str. 4 | 61462 Königstein i.T. | Tel +49 6147 249 60 0 | Fax +49 6174 249 60 19 |
Cleantech M&A Overview
Nicholas Atkins, Partner, Georgieff Capital Advisors
Amsterdam Cleantech Forum 11th May 2011
DRAFT Georgieff Capital Advisors (1)
1
Independent corporate finance advisory firm
Offices in Frankfurt and London
High quality, objective advice in the following areas
Corporate finance, M&A and strategic advice
Capital raising advice (for private companies)
IPO and equity capital markets (ECM) advice
Cleantech sector team dedicated to helping cleantech companies grow their businesses
Cleantech sector team is led by Nicholas Atkins (Partner) – over 20 years of M&A and PE experience
Email: n.atkins@georgieffcapital.com Tel: +44 203 080 1070
DRAFT Georgieff Capital Advisors (2) – Select M&A References
2
Date Client Transaction
Public takeover of Süd-Chemie (€ 2.0bn)Pending
03/2011 Acquisition of Octagon Process
Acquisition of a majority of A&R Rotec08/2008
Sale of 100% subsidiary Karmann-Ghia do Brasil03/2008
Acquisition of SachsenFonds Holding12/2007
Sale of 100% subsidiary Julius Heywinkel08/2007
Public takeover of Pergo (€ 300m)01/2007
Co-operation agreement on carbon-ceramic break discs with Audi
06/2005
DRAFT Georgieff Capital Advisors (2) – Select Cleantech References
Corporate Finance Advisory
Fund / Indirect Investments
Direct Investments
3
DRAFT Global M&A activity (1)
4Source: Thomson Reuters
Annual – US$bn and # of deals
Worldwide M&A volume up 21% in 2010 while # of deals increased first year after 2007 (+5% vs. 2009) Average deal size increased
Overall M&A activity sill far below 2006 and 2007 levels
4,354
5,263
3,243
2,2882,763
42.9
49.247.7
44.0
46.2
25
30
35
40
45
50
1,000
2,000
3,000
4,000
5,000
6,000
2006 2007 2008 2009 2010
Deal Value (US$bn) # of deals ('000)
DRAFT Global M&A activity (2)
5Source: Thomson Reuters
Quarterly – US$bn and # of deals
Q1 2011 M&A volume up 17% (vs. Q1 2010), but # of deals remained flat
656
1,055921
611 603 577466
642 604 620
772 767708
11.712.2 12.0 11.8
10.3 10.7 11.012.0
11.0 11.3 11.512.4
10.9
0
2
4
6
8
10
12
14
200
400
600
800
1,000
1,200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2008 2009 2010 2011
Deal Value (US$bn) # of deals ('000)
DRAFT Cleantech M&A (1) – Global
6
Global cleantech M&A transactions (numbers & volume) have grown by 23% p.a. over the past five years
After a pause in 2009, total M&A value grew by 11% to $36.6b in 2010
M&A volume in Q1 2011 was at a record level, 10.5% above Q1 2010‘s previous high
The outlook for 2011 looks encouraging at this stage
Cleantech M&A volumes still represent less than 1.5% of global M&A volume
Quarterly – US$bn and # of dealsAnnual – US$bn and # of deals
Source: Cleantech Group
16.126.0
32.7 33.0
36.6316 265
399
529
713
200
400
600
800
$-
$10
$20
$30
$40
2006 2007 2008 2009 2010
Deal Value (US$bn) # of deals ('000)
16.1
26.0
32.7 33.0
36.6
316
265399
529
713
200
400
600
800
$-
$10
$20
$30
$40
2006 2007 2008 2009 2010
4.2 15.0 4.4 5.2 17.2 4.8 19.0
45
143 150
205
148
217
0
50
100
150
200
250
$-
$5
$10
$15
$20
$25
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11
DRAFT
15 198 7
5546
19 196
29
7 10
61 68
21
56
Cleantech M&A (2) – Global
7
2009 vs. 2010 – # of deals by sector
Note: * Energy includes: Energy Efficiency, Energy Generation, Energy Infrastructure and Energy Storage
Source: Cleantech Group
+33% +11% +195%+48%+11%+43%-13%-60% +53%
…% Change 2010 vs. 2009
Energy sector
accounted for
64% of total
M&A deals,
growing 33%
Other sectors
such as waste
(up 48%) and
water (+ 195%)
gained position
Total transactions increased from 529 deals in 2009 to 713 deals in 2010 (+35%)
341
455
64%
DRAFT
Energy Efficiency
44
Biofuels58
Solar 89
Wind63
Other*61
Energy Infrastructure
12
Energy Storage
14Energy
Efficiency
70
Biofuels59
Solar 120
Wind77
Other*91
Energy Infrastructure
20
Energy Storage
18
Cleantech M&A (3) – Global
8
Energy Sector Breakdown (# of deals)
2010
455
Note: * Other include Geothermal, Hydro/Marine and others
Source: Cleantech Group
2009
341
Energy
generation
accounted for
approx. 3/4 of
energy deals
and 1/2 of all
cleantech deals
in 2010
Energy
efficiency and
infrastructure
deals grew
strongly in
2010
Energy Generation347 deals
Energy Generation271 deals
DRAFT Cleantech M&A (4) – Global
9
Top 10 M&A Transactions – 2010 & Q1 2011
Source: Cleantech Group
Date Target Acquiror Industry Deal Value
(US$m)
Feb-10 Cosan (Brazil) Shell (Netherlands) Energy Generation 12,000
Jan-11 Danisco (Denmark) DuPont (USA) Materials 6,300
Mar-11 Converteam Group (France) General Electric (USA) Energy Generation 3,200
Nov-10 Baldor Electric Company (USA) ABB (Switzerland) Energy Efficiency 3,100
Mar-11 Iberdrola (Spain) Qatar Investment Authority (Qatar) Energy Generation 2,800
Jan-11 Elkem (Norway) BlueStar China (China) Manufacturing/Industrial 2,000
Nov-10 IFCO Systems (Netherlands) Brambles (Australia) Manufacturing/Industrial 1,260
Mar-10 Vattenfall Asset Transmission Grid (Sweden) Elia (Belgium) Energy Infrastructure 1,100
Dec-10 Martek (USA) Royal DSM (Netherlands) Materials 1,087
May-10 Ventyx (fka Indus and MDSI) (USA) ABB (Switzerland) Energy Infrastructure 1,000
DRAFT Cleantech M&A (5) – Europe (incl. Israel)
10
European cleantech M&A volume fell to $7.3b in 2010, almost half its peak in 2008,
despite larger transaction numbers
However, M&A volume reached a record $15.0b in Q1 2011 (higher than any
previous full year) due to a number of very large transactions
2011 should turn out to be a stellar year assuming completion of a reasonable
proportion of announced deals
Quarterly – US$bn and # of dealsAnnual – US$bn and # of deals
Source: Cleantech Group
16.126.0
32.7 33.0
36.6316 265
399
529
713
200
400
600
800
$-
$10
$20
$30
$40
2006 2007 2008 2009 2010
Deal Value (US$bn) # of deals ('000)
3.2
4.1
2.03.3 3.6
0.91.8
15.0
14
46 45
72
39
66
0
20
40
60
80
$-
$4
$8
$12
$16
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11
3.8 10.3
14.2
11.7
7.3
11288
127
163
207
50
100
150
200
250
$-
$4
$8
$12
$16
2006 2007 2008 2009 2010
DRAFT
3 4 1 414 13
4 519
2 1
18 22
412
Cleantech M&A (6) – Europe (incl. Israel)
11
2009 vs. 2010 – # of deals by sector
138
115
Note: * Energy includes: Energy Efficiency, Energy Generation, Energy Infrastructure and Energy Storage
Source: Cleantech Group
+18% +/-0% +140%+69%+29%-75%+100%-67% +125%
Total transactions increased from 163 deals in 2009 to 207 deals in 2010 (+27%)
67%
…% Change 2010 vs. 2009
Energy sector
accounted for
2/3 of European
M&A deals,
growing 18%
Other sectors
such as waste
(up 69%) and
water (up
140%) grew
faster
DRAFT
Energy Efficiency
10
Biofuels15
Solar 32Wind
25
Other*28
Energy Infrastructure
2
Energy Storage
3Energy
Efficiency
21
Biofuels7
Solar 43
Wind34
Other*27
Energy Infrastructure
4
Energy Storage
2
Cleantech M&A (7) – Europe (incl. Israel)
12
Energy Sector Breakdown (# of deals)
2010
138
2009
115
Note: * Other include Geothermal, Hydro/Marine and others
Source: Cleantech Group
Energy Generation111 deals
Energy Generation100 deals
Energy
generation
accounts for an
even higher
portion of deals
in Europe –
c. 80% of
energy and
53% of total
deals in 2010
Growth in other
sub-sectors
was strong in
2010
DRAFT Cleantech M&A (8) – Europe (incl. Israel)
13
Top 10 M&A Transactions – 2010 & Q1 2011
Source: Cleantech Group
Date Target Acquiror Industry Deal Value
(US$m)
Jan-11 Danisco (Denmark) DuPont (USA) Materials 6,300
Mar-11 Converteam Group (France) General Electric (USA) Energy Generation 3,200
Mar-11 Iberdrola (Spain) Qatar Investment Authority (Qatar)Energy Generation 2,800
Jan-11 Elkem (Norway) BlueStar China (China) Manufacturing/Industrial 2,000
Nov-10 IFCO Systems (Netherlands) Brambles (Australia) Manufacturing/Industrial 1,260
Mar-10 Vattenfall Asset transmission grid (Sweden) Elia (Belgium) Energy Infrastructure 1,100
Aug-10 Heag Suedhessische Energie (Germany) HEAG Holding (Germany) Energy Generation 393
Mar-10 Etimex Solar (Germany) Solutia (USA) Energy Generation 327
Feb-11 MCP Group (Belgium) 5N Plus, Asset ZT Plus (Canada) Energy Generation 316
Mar-11 The Switch Engineering (Finland) American Superconductor (USA) Energy Generation 265
DRAFT
14
DRAFT Cleantech M&A (9) – North America
15
Volume of North American cleantech M&A activity rose to $11.8b in 2010 following subdued years in 2008 and 2009, although deal numbers have risen consistently
M&A volume in Q1 2011 amounted to $1.6b, equal to Q1 2009 but above the weak Q1 2010
Too early to predict how 2011 will turn out
Quarterly – US$bn and # of dealsAnnual– US$bn and # of deals
Source: Cleantech Group
0.7
6.8
1.6 1.4 0.2
2.81.6
22
72 7583
70
107
0
20
40
60
80
100
120
$-
$2
$4
$6
$8
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11
16.126.0
32.7 33.0
36.6316 265
399
529
713
200
400
600
800
$-
$10
$20
$30
$40
2006 2007 2008 2009 2010
Deal Value (US$bn) # of deals ('000)
3.8
12.9
10.1
8.2
11.8
162
128
190
263
327
100
150
200
250
300
350
$-
$3
$6
$9
$12
$15
2006 2007 2008 2009 2010
DRAFT
713
6 2
27 25
13 123
15
29
19
38
11
25
Cleantech M&A (10) – North America
16
2009 vs. 2010 – # of deals by sector
Note: * Energy includes: Energy Efficiency, Energy Generation, Energy Infrastructure and Energy Storage
Source: Cleantech Group
205
158
+30% -15% +108%+52%-30%+350%-67%-57% +15%
Total transactions increased from 263 deals in 2009 to 327 deals in 2010 (+35%)
M&A sector
pattern similar
to global
position
63%
…% Change 2010 vs. 2009
DRAFT
Energy Efficiency
30
Biofuels29
Solar 34
Wind24
Other*28
Energy Infrastructure
8
Energy Storage
5 Energy Efficiency
40
Biofuels29
Solar 45
Wind28
Other*40
Energy Infrastructure
15
Energy Storage
8
Cleantech M&A (11) – North America
17
Energy Sector Breakdown (# of deals)
2010
205
2009
158
Note: * Other include Geothermal, Hydro/Marine and others
Source: Cleantech Group
Energy Generation142 deals
Energy Generation115 deals
Energy
generation
accounted for
c. 70% of
energy and
40% of total
M&A deals in
2010, below the
global average
The other sub-
sectors grew
strongly
DRAFT Cleantech M&A (12) – North America
18
Top 5 M&A Transactions – 2010 & Q1 2011
Source: Cleantech Group
Date Target Acquiror Industry Deal Value
(US$m)
Nov-10 Baldor Electric Company (USA) ABB (Switzerland) Energy Efficiency 3,100
Dec-10 Martek (USA) Royal DSM (Netherlands) Materials 1,087
May-10 Ventyx (fka Indus and MDSI) (USA) ABB (Switzerland) Energy Infrastructure 1,000
Aug-10 Deere & Co. Renewables (USA) Exelon (USA) Energy Generation 900
Nov-10 Griffin Industries (USA) Darling International (USA) Recycling & Waste 840
DRAFT Cleantech M&A (13) – Asia
19
Asian M&A volume fell significantly to $3.6b in 2010, a third of its peak in 2009,
despite larger transaction numbers
M&A volume picked up to $1.5b in Q1 2011, the highest level over the last five
quarters, but well below peak levels in Q2 and Q4 2009
Quarterly – US$bn and # of dealsAnnual – US$bn and # of deals
Source: Cleantech Group
0.2
2.80.5 0.5
6.5
0.9 1.00.8
1.55
14
22
35
28
0
10
20
30
40
$-
$1
$2
$3
$4
$5
$6
$7
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11
3.8 1.2
3.7
11.3
3.6
3025
49
77
123
0
20
40
60
80
100
120
140
$-
$2
$4
$6
$8
$10
$12
2006 2007 2008 2009 2010
16.126.0
32.7 33.0
36.6316 265
399
529
713
200
400
600
800
$-
$10
$20
$30
$40
2006 2007 2008 2009 2010
Deal Value (US$bn) # of deals ('000)
DRAFT
2 1 1 1
14
3 2 21 2 30
16
4 6
13
Cleantech M&A (14) – Asia
20
2009 vs. 2010 – # of deals by sector
78
51
Note: * Energy includes: Energy Efficiency, Energy Generation, Energy Infrastructure and Energy Storage
Source: Cleantech Group
Energy is the
dominant
sector of
activity in Asia
Total transactions increased from 77 deals in 2009 to 123 deals in 2010 (+60%)
+160% +200% +550%+33%+14%-100%+200%-50% +100%
63%
…% Change 2010 vs. 2009
DRAFT
Energy Efficiency
7
Biofuels6
Solar 30Wind
13
Other*14
Energy Storage
8Energy
Efficiency
4
Biofuels7
Solar 23
Wind8
Other*1
Energy Infrastructure
2
Energy Storage
6
Cleantech M&A (15) – Asia
21
Energy Sector Breakdown (# of deals)
2010
78
2009
51
Note: * Other include Geothermal, Hydro/Marine and others
Source: Cleantech Group
Energy storage
is a particularly
important sub-
segment
Energy Generation63 deals
Energy Generation39 deals
DRAFT Cleantech M&A (16) – Asia
22
Top 5 M&A Transactions – 2010 & Q1 2011
Source: Cleantech Group
Date Target Acquiror Industry Deal Value
(US$m)
Apr-10 Aditya Energy Systems (India) Mulk Holdings (UAE) Energy Generation 545
Mar-11 Bharat Heavy Electricals (India) Hanwha Chemical (India) Energy Generation 443
Aug-10 Solarfun Power Holdings (China) Tokyo Electric Power (Korea) Energy Generation 371
Mar-11 Sinomem (Singapore) Bharat Electronics (China) Water & Wastewater 277
Jan-10 Eurus Energy Holdings (Japan) Clean Water Investment (USA) Energy Generation 274
DRAFT
23
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