B2B, IT deals stand out among European PE carveouts as activity slows

Companies in the B2B and IT sectors accounted for some of the biggest PE-backed European corporate carveouts in 2022 so far, as sellers seek to shore up their balance sheets by shedding noncore assets.

Against a backdrop of inflation and rising interest rates, this year has seen 246 carveouts in the region worth a total of €36.8 billion. The largest of these was the January acquisition of water utility company Suez Environment from Veolia UK for €13 billion by a consortium led by Meridiam and Global Infrastructure Partners.

According to PitchBook's Q2 2022 European PE Breakdown, Q3 deal value looks to be keeping pace with 2021 numbers. The biggest deal so far this quarter was the close of CVC Capital Partners' July 2 acquisition of Unilever's tea business, Ekaterra, for €4.5 billion. The company has a global portfolio of 34 tea brands, including such as PG Tips and Lipton.

Another standout Q3 deal was Bain Capital's July 20 acquisition of IT service provider Inetum for €2.2 billion. NB Renaissance, the Italian PE division of US asset manager Neuberger Berman, was also part of the deal.
   
While many companies have turned to PE buyers—as they are seen as less likely to run afoul of regulators over competition concerns—the pace of deal activity suggests 2022 may still fall short of last year's total of 618 deals worth €89.2 billion.

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This article originally appeared on PitchBook News