US private equity firms stepped up their acquisitions of UK businesses by 35% last year, from 134 acquisitions in 2021/22, to 181 in 2022/23, according to new research released by international law firm, Mayer Brown.
UK company valuations had already been relatively depressed in comparison to other European nations, following concerns over Brexit, but the fall in sterling following the last October’s Kwarteng budget, made them even more attractive to US investors.
Paul Rosen, Partner at Mayer Brown, says: “US PE houses still see the fall in sterling as an opportunity to try to acquire high quality assets in the right sectors at lower relative earnings multiples. The comparatively cheaper listed share valuations of the UK listed markets are also presenting opportunities for US PE buyers.”
Notable US private equity acquisitions of UK companies over the past 12 months include: Blackrock’s acquisition of Puttshack, the indoor golf course leisure company; TriSpan’s acquisition of UK restaurant group Mowgli: and Energy Capital Partner’s acquisition of Biffa plc, the waste management company.
