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Indian buyers: an opportunity for European Companies?

02/12/07www.mergermarket.com

Summary

- About mergermarket

- M&A in Europe: Data and Trends

- M&A between European companies and Indian buyers

- League tables

- Case Studies (Fondalmec; Bellora and Zoom Developers)

- Q&A Session


About mergermarket

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Intelligence from over 2,000 public sources

Extensive historical deals database

The most comprehensive view of any potential or announced M&A event.


About mergermarket

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mergermarket Intelligence Timeline

MONTHS24 013-6

Deal Announcement

AdvisorsAppointed

Deal Completion

3


Summary



- M&A in India: Data and Trends

- League tables


- Q&A Session


European M&A trend quarterly: Value

Quarterly M&A Activity- All Sectors

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Val

ue

€m


European M&A trend quarterly: Volume

Quarterly M&A Activity- All Sectors

0100200300400500600700800900

1,0001,1001,2001,3001,4001,5001,6001,700

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Vo

lum

e


European M&A Deal Size: Value

European M&A Split By Deal Size

2.5 2.9 3.0 3.6 3.8 4.3 4.2 4.1 4.6 1.917.8 19.6 24.0 26.7 27.3 28.3 28.3 31.4 29.2 14.516.3 23.4 23.0 30.6 31.7 36.2 32.4 38.2 35.6

15.122.3 24.0 26.4

29.7 35.1 38.9 35.9 39.9 46.7

18.3

174.7126.1

156.0

211.0218.9

339.6393.5 391.0

521.9

150.4

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

H1 2003 H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 H1 2006 H2 2006 H1 2007 H2 2007

> €501m

€251m - €500m

€101m - €250m

€15m - €100m

€5m - €14.9m


European M&A by Industry Q1-Q3: Value

Mix of European Deals by Industry Sector- Value

11.0%

31.2%

3.4%12.7%

14.3%

10.7%

2.5%

2.0%

5.0%7.0%

0.2%0.1%

Industrials

Financial Services

Business Services

Consumer

Energy/Mining/Utilities

TMT

Leisure

Transport

Pharma/Medical/Biotech

Construction

Defence

Agriculture


European M&A by Industry Q1-Q3: Volume

Mix of European Deals by Industry Sector- Volume

21.3%

10.6%

12.3%

15.7%

6.0%

14.0%

4.0%

3.9%

5.6%

5.7%

0.7%

0.3%Industrials

Financial Services

Business Services

Consumer

Energy/Mining/Utilities

TMT

Leisure

Transport

Pharma/Medical/Biotech

Construction

Defence

Agriculture


European M&A by Geography Q1-Q3: Volume

Mix of European All Sectors Deals by Geographic Region- Volume

25.6%

9.7%

9.0%

6.7%6.9%

8.9%

12.8%

13.1%

7.4%

UK & Ireland

Germany

France

Italy

Iberia

Benelux

Nordic

Central &Eastern EuropeOther


Heat Chart: Announced Deals H1 2007

288981195202274275389394399680TOTAL

9000201231Defence

22200137612Agriculture

995697131619420Transport

1202913168781047Leisure

1443582597183534Pharma/Medical/Biotech

154101216141318172232Construction

191712133850264329Energy/Mining/Utilities

309211243539185210118Business Services

319183027273357302473Financial Services

412814193749405969117TMT

477163733534888624595Consumer

6338594054528095133112Industrials and Chemicals

TOTALSEEItalyIberiaFrance

Benelux

CEE/CISNordic

Ger/Swi/AusUK


Summary



- M&A between European companies and Indian buyers

- League tables


- Q&A Session


European Companies bought by Indian players 2007 YTD by Geography

FIRST THREE QUARTERS 2007

Bulgaria4%Ireland

7%

Netherlands7%

France11%

Spain14%

Italy14%

Germany18%

UK25%

UKGermanyItalySpainFranceNetherlandsIrelandBulgaria


European Companies bought by Indian players 2006 Q3 by Geography

First three quarters 2006

Denmark3%

Portugal3%

Belgium10%

Finland11%

Germany11%

Poland3%

UK29%

Hungary3%

Romania3%

Italy3%

Spain7%

France7%Sweden

7%

UK

Germany

Finland

Belgium

Sweden

France

Spain

Denmark

Portugal

Italy

Romania

Hungary

Poland


European Companies bought by Indian players 2007 YTD by Sector

SECTOR 2007

Industrials51%

Computer16%

Consumer9%

Services9%

Medical9%

TMT6%

Industrials

Computer

Consumer

Services

Medical

TMT


European Companies bought by Indian players 2006 YTD by Sector

SECTOR 2006

TMT3%

Consumer17%

Medical 13%

Leisure3%

Transportation3%

Industrials 34%

Computer27%

Industrials

Computer

Consumer

Medical

Leisure

Transportation

TMT


Summary




- League tables


- Q&A Session


Top 10 Financial Advisers to EU M&A Q1 - Q3 2007


Top 10 Financial Advisers to EU M&A Q1 - Q3 2006


Top 10 Legal Advisers to EU M&A Q1 - Q3 2007


Top 10 Legal Advisers to EU M&A Q1 - Q3 2006


Top 10 Financial Advisers to Indian M&A Q1 - Q3 2007


Top 10 Financial Advisers to Indian M&A Q1 - Q3 2006


Top 10 Legal Advisers to Indian M&A Q1 - Q3 2007


Top 10 Legal Advisers to Indian M&A Q1 - Q3 2006


Top 10 Financial Advisers to EU targets and Indian bidders Q1 - Q3 2007


Top 10 Financial Advisers to EU targets and Indian bidders Q1 - Q3 2006


Top 10 Legal Advisers to EU targets and Indian bidders Q1 - Q3 2007


Top 10 Legal Advisers to EU targets and Indian bidders Q1 - Q3 2006


Top 10 Financial Advisers to Indian targets and EU bidders Q1 - Q3 2007


Top 10 Financial Advisers to Indian targets and EU bidders Q1 - Q3 2006


Top 10 Legal Advisers to Indian targets and EU bidders Q1 - Q3 2007


Top 10 Legal Advisers to Indian targets and EU bidders Q1 - Q3 2006


Summary




- League tables


- Q&A Session


Fondalmec bought by Endurance: Deal Description

5 June 2007

Endurance Group, the Indian manufacturer of casting, suspension, transmission and braking products for the automotive industry, has acquired Fondalmec Officine Meccaniche Spa, the Italian manufacturer of automobile components, for an undisclosed consideration. Fondalmec group generated annual sales of EUR 73m* for the year 2007. The acquisition is in line with Endurance’s strategy to strengthen its position globally in the aluminium die-casting and machining sector by the year 2012. It will also generate additional business for Endurance in the European market and provide it with access to latest technology.

* group sales turnover in 2007 (Fondalmec and Fondpress)


Fondalmec: presentation


Fondalmec group core business

Metal cutting machining and assembly of different alloy components in aluminium, cast iron and forged steel;

Die casting automotive components production in Fondpress (HPDC plant);

Fondalmec was founded in 1976 as a mechanical workshop for mass production of parts for the industrial vehicle and earth movers market sector;

Within a few years the company entered into the automotive market and became a supplier for European OEM.


Fondalmec Turnover evolution


Transaction from Fondalmec point of view

- Banca Aletti mandated to look for a partner in June 2006;

- Aletti contacted Endurance in July 2006;

- Fondalmec management meet Endurance in November 2006;

- Role of Fiat;

- Letter of Intent signed in December 2006;

- Corporate Governance agreements;

- Due Diligence and role of advisers (Studio Legale Ferreri and Deloitte);

- Conclusion.


Endurance Technologies


Endurance point of view

- Endurance mandated KPMG in 2006 to look for targets;

- Acquisition criteria

- Financing of the deal

- Fondalmec transaction

- Legal advisers: Gianni Origoni Grippo & Partners

- Role of the management


Zoom Developers


Point of view of an Indian private equity firm: Zoom Developers Acquisition in 2004 of Nissan Motors' plastic fuel tank facilities in

Newcastle and transfer the manufacturing base to India

Buy out of advanced tech facilities; looking at acquisitions where it can either turn around the company or shift the manufacturing base to India.

Appointment of PWC or E&Y or KPMG to look for buys,

Attend trade fairs and happening in Europe; Germany, UK and Italy areas of interest

Looking at sectors where there are limited players in the market.

Hurdles

Note: with the contribution of Freny Patel


Bellora bought by Himatskingka Seide: deal description29 January 2007

Himatsingka Seide, the Indian textiles player, has entered into a deal for 70% stake in Giuseppe Bellora (Bellora), the Italian bed-linen company. The transaction is expected to be completed in February 2007. During 2006, Bellora generated revenues of about EUR 29m. Established in 1883, the Bellora brand is a pan-European luxury brand in the bed-linen segment

With this synergy Bellora wants to spread its brand globally and reconfirm itself as a leader at the top level of the home textiles branch.

The strategy bets on the developement of its Flagship shops and corner network into major luxury department stores worldwide

During the past four years Bellora increased its sales point from 20 to 80 worldwide. The new target is to overcome 100 p.o.s. within the next two years.

www.mergermarket.com

The company is organised in two main sections: •the Bellora Brand Division •the Industrial and Hotellerie Division ( private labels for major bed linen designer and full hotel equipment)

The Bellora Brand Division70% of the company total turnover With over 50 own looms in Italy and abroad it supplies the production of a wide range of textile products.65% of the production is represented by bed linen in pure linen, in linen cotton blend and in the finest quality of cotton percale and satin25% by bath articles5% by table clothing5% by home couture accessories. It is led by Angelo Cosmaro, Sales Manager since 1994. After reorganizing the italian market, he started to export the brand that under his command developed into one of the most prestigious names in bed linen industry worldwide.

The Industrial Division30% of the company total turnoverThis part of the company has supplied the most prestigious home linen private label collections (Armani Casa, Bloomingdale’s, Descamps, Delorme, Frette, Porthault). The Hotellerie DivisionThe core business of Bellora’s hotel division are luxury – and- boutique hotels.Bellora is the nominee supplier of Bulgary Hotels as well as for many luxury establishment in wellness and hospitality institutions.


Bellora point of view: Discussion with Giuseppe Bellora

Company situation in 2000; industry outlook Mandate to Mediobanca and GEA 2003: Bellora sells 40% to Riello 2003-2005: years of industrial relaunch, while Riello weighs exit

strategy First contacts with Himatskingka Seide, while other competitor

approaches Bellora February 2006: Bellora sells 70% stake to Himatskingka Seide Corporate Governance agreement Role of Giuseppe Bellora


Heat Chart H1 2007: Intelligence

43261582182364284435276406691007TOTAL

1 1 Government

6 1 3 2Other

24 11 71 311Defence

321 2311420Agriculture

18241312181112242167Construction

192798381917232051Transportation

20515117142815622825Pharma/Medical/Biotech

229723732127195855Leisure

26931473227121954101Energy/Mining/Utilities

340201421166624497456Business Services

4682026105217548572132Financial Services

6783047652910940105141112TMT

8203125526510213817473160Industrials & Chemicals

8802035461295218676121215Consumer

TOTAL

BeneluxIberiaFranceSEENordicItaly

Ger/Swi/AusUK

CEE/CIS

for further information contact mergermarket regional head offices europe: 80 strand, london wc2r...

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