PRINT THIS PAGE UK buy-outs break £8bn mark for the first time in Q2 200518/07/2005. Source: AltAssets. 
 The UK buy-out market was stronger than ever in the second quarter of 2005, breaking the £8bn mark for the first time. The total value of buy-out transactions was £8.33bn, according to figures released by KPMG's Private Equity Group, which tracks UK buy-outs with value over £10m.
There were 43 deals completed in Q2 2005, compared to 33 deals worth £5.38bn for Q2 2004, and 35 deals worth £4.78bn in Q1 2005. The average value of transactions in the second quarter of 2005 was £194m, compared to £163m in the second quarter of 2004, and £137m in the first quarter of 2005.
Charles Milner, head of corporate finance at KPMG's Private Equity Group, said, 'No one part of the market sticks out as a hot spot. There has been strong activity across all levels of buy-outs whether at the larger end or the mid-market. The high level of activity is also reflected in the breadth of transaction types, whether buy-out, secondary or public-to-private deals.'
'We are seeing corporate buyers showing greater appetite for deals, but although this should mean greater competition for private equity houses, it is not reflected in the last quarter's performance. If anything it has given a boost to the sector's liquidity by providing greater exit options,' Milner added.
There were nine deals above £250m in Q2 2005, two of which were over £1bn: HHG (£1,070m), Travelex (£1,055m), The Tussauds Group (£830m), British Vita (£697m), HIT Entertainment (£582m), East Surrey Holdings (£453m), Cannon Avent (£300m), Strix (£300m) and Cox Insurance (£298).
Six public-to-private deals were completed in the second quarter of 2005: British Vita (£ 697m), HIT Entertainment (£582m), East Surrey Holdings (£453m), Cox Insurance (£298m), Malcolm Group (118m) and Trio Holdings (£29m).
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