Business activity falls in region
THE number of deals in the North East fell substantially in the first quarter of the year, with the region lagging behind other parts of the country.
Amid record low levels of merger and acquisition activity across the UK, the North East saw 60 transactions during the quarter – a 19% fall on the same period last year. The number put the North East towards the bottom of the UK merger and acquisition table, according to analysis from Experian, with only Wales and Northern Ireland below it in terms of volume.
But overall deals value rocketed 1,088% on Q1 2023 levels thanks to the region’s largest acquisition in more than a decade: Nationwide Building Society’s likely £2.9bn takeover of Virgin Money.
The research highlighted there had only been two other “mega deals” in the North East in the last 10 years: CYBG’s £1.7bn buyout of Virgin Money Holdings back in 2018 and the buyout of Parkdean Resorts in December 2016 for £1.4bn.
Experian said it had been a “slow start” for the region in 2024, but that mid-market transactions outperformed the market with four recorded during the quarter vs only one in Q1 2023. Acquisitions remained the most prevalent type with 39 deals – 65% of the total activity – which was down from the 45 recorded last year.
By sector, professional services and manufacturing saw the largest dips in volume but professional services remained the busiest area with 13 deals recorded. The wholesale and retail, and health sectors both increased volumes on last year.
Experian also ranked the top five deals in the region over the period, including: the £2.9bn takeover of Virgin Money by Nationwide Building Society at number one; the £40m acquisition of Newcastle’s Maymask by UK Plumbing Supplies Ltd at number two; North Shields’ Kitwave’s £21m acquisition of Total Foodservice Solutions at three; the £21m acquisition of Hartlepool’s TT Electronics IOT Solutions Ltd by Cicor Management AG at four, and the £12m of Whitley Bay’s D-Line (Europe) Ltd by Luceco plc.
Meanwhile, law firm Mincoffs retained its top spot on the table of legal advisers by volume of deals, followed by Ward Hadaway and then Sintons. RMT Corporate Finance ranked top of the financial advisers.
Paul Hughes, senior partner and head of corporate at Mincoffs, said: “Being ranked the number one legal adviser throughout 2023 was a great achievement and to continue the trend into the first quarter of 2024 is something we are really proud of. The team work tirelessly for our clients to ensure we produce the best possible outcomes, and it is fantastic to see this hard work recognised in the Experian rankings. This is a great position to start the year in.”