In the first half of 2023, there were a total of 177 deals involving Irish businesses, amounting to a value of approximately €5.2 billion. This represents a slight decrease of just 2% in terms of quantity compared to the same period last year when there were 180 deals. However, there was a significant drop of 58% in value from the €12.4 billion recorded in the first half of 2022, according to law firm William Fry.
Out of the Irish deals, 97% were valued between €5 million and €250 million during the first half of this year.
Only three deals worth more than €500 million were announced during this period, compared to seven deals in the same timeframe last year. The largest of these three deals was the acquisition of Irish rare-disease drug maker Amryt Pharma by Italy’s Chiesi Farmaceutici.
Another notable deal was the sale of Enva, a waste management company, from one private equity house to another.
Stephen Keogh, the head of corporate/M&A at William Fry, explained, “In line with international deal activity, Ireland’s mergers and acquisitions (M&A) market slowed in the first half of 2023. This can be attributed to rising interest rates, high inflation, and fears of a recession, which have impacted confidence and made acquisitions more expensive. The Financial Times recently reported a 38% decrease in global M&A, amounting to $1.3 trillion (€1.2 trillion) in the first half of the year, the lowest since the start of the pandemic in 2020.”
Other noteworthy deals in the first half of 2023 included food manufacturer Kerry Group selling its sweet ingredients business to an Italian bidder, fruit and vegetable wholesalers Dole, and investment firm Malin Corporation.
In terms of cross-border transactions, there were 113 inbound deals with a total worth of €4.1 billion, accounting for over two-thirds of Irish M&A deals and 16 out of the 20 largest transactions. The pharmaceuticals, medical, and biotech sector made up 28% of Irish M&A activity by value in the first half of 2023, a significant increase from last year’s 2% share, largely due to the Amryt Pharma acquisition. Industrials and chemicals accounted for 18% of Irish M&A activity by value in the first half, up from 1% last year, primarily driven by the Enva Ireland sale to an Irish-based private equity house. The technology, media, and telecoms sector represented 32% of deals by volume in the first half, although many were of low value.
On the other hand, M&A activity in the financial services sector experienced a sharp decline in the first half of this year, with only 14 deals worth €190 million completed, compared to 25 deals worth €7.4 billion during the same period last year.
According to previous research by Refinitiv for the Irish Independent, Irish M&A activity in terms of value had its slowest start this year since the 2008 financial crash. Refinitiv research published last month further revealed a 73% decrease in the value of Irish deal-making and a 26% decrease in volume terms for the first half of this year.
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