Cleantech M&A Overviewevents.cleantech.com/amsterdam/sites/default/files/CTForumAmster… · Cleantech M&A Overview Nicholas Atkins, Partner, Georgieff Capital Advisors Amsterdam

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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: [email protected] 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


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


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


+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


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


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


DRAFT Cleantech M&A (4) – Global

9

Top 10 M&A Transactions – 2010 & Q1 2011


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



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


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


138

115



+18% +/-0% +140%+69%+29%-75%+100%-67% +125%


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


2

Energy Storage

3Energy

Efficiency

21

Biofuels7

Solar 43

Wind34

Other*27


4

Energy Storage

2

Cleantech M&A (7) – Europe (incl. Israel)

12


2010

138

2009

115





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




(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


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


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




205

158

+30% -15% +108%+52%-30%+350%-67%-57% +15%


M&A sector

pattern similar

to global

position

63%

…% Change 2010 vs. 2009

DRAFT

Energy Efficiency

30

Biofuels29

Solar 34

Wind24

Other*28


8

Energy Storage

5 Energy Efficiency

40

Biofuels29

Solar 45

Wind28

Other*40


15

Energy Storage

8

Cleantech M&A (11) – North America

17


2010

205

2009

158





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




(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



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


DRAFT

2 1 1 1

14

3 2 21 2 30

16

4 6

13

Cleantech M&A (14) – Asia

20


78

51



Energy is the

dominant

sector of

activity in Asia


+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


2

Energy Storage

6

Cleantech M&A (15) – Asia

21


2010

78

2009

51



Energy storage

is a particularly

important sub-

segment



DRAFT Cleantech M&A (16) – Asia

22




(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

Documents

Cleantech M&A Overviewevents.cleantech.com/amsterdam/sites/default/files/CTForumAmster… · Cleantech M&A Overview Nicholas Atkins, Partner, Georgieff Capital Advisors Amsterdam