Sometimes the biggest deal of the week tells us something beyond just its value. Last week, the last full week before Thanksgiving, the deal with the largest reported value involved healthcare. And according to the consulting firm Kaufman Hall, the $2.4 billion sale of three hospitals by Texas healthcare giant Tenet Healthcare is part of a resurgence of M&A in the medical space. This week’s CDT Roundup focuses on that uptick, as well as the usual roll call of Texas firms and lawyers who reported deals as the holiday season approaches.
The Texas Lawbook’s exclusive Corporate Deal Tracker lists the law firms whose Texas lawyers were lead counsel in M&A transactions for the buyers, sellers and targets between Jan. 1 and Oct. 31 this year. Sixteen of them led 10 deals or more, six were lead counsel on 25 or more transactions, two firms led 50 or more deals and one firm’s Texas lawyers have been lead counsel on more than 100 M&A transactions during the first 10 months of 2023.
Texas lawyers for Kirkland & Ellis officially crossed the 100-deal count threshold and the $100 billion deal value mark in October, according to exclusive new Texas Lawbook Corporate Deal Tracker
A recent Mergermarket survey of top global private equity executives yielded few surprises concerning the once and future deal environment. The survey, conducted on behalf of Dechert, revealed that more than a quarter of respondents cited interest rates as the most important factor in determining deal development in the next 12 months. Among the few surprises, however, was the overwhelming and newly found attraction to take-private deals. The Roundup looks at the data, as well as the firms and lawyers behind 15 Texas-related transactions reported last week.
Locke Lord’s Kevin Peter counseled KMI and Hogan Lovells’ Greg Hill represented NextEra on the sale of the pipeline system, with KMI viewed as the likely buyer.
For the first time in a while, energy didn’t dominate the week for value. Still, energy deals dominated the deal count among the 12 M&A transactions reported. This comes as the Haynes Boone financing survey shows increasing interest in financing new upstream E&P. Claire Poole’s CDT Roundup has more, along with the names and firms of the 186 lawyers who worked on last week’s transactions.
Riverstone-backed Hammerhead Energy agreed to be sold to Crescent Point Energy for $1.86 billion and Enbridge purchased landfill gas-to-renewable natural gas facilities in the U.S. from Morrow Renewables for $1.2 billion.
Weil in New York counseled Cedar Fair while Kirkland did so for Six Flags, including an M&A partner in Austin and a debt partner in Houston.
What a difference a quarter makes. Even as deal numbers for the third quarter continue to numb, some really big deals are beginning to unfold in the fourth — particularly in the energy sector — with two $60 billion whoppers in the past three weeks. But a recent analysis by Pitchbook suggests that they are only the beginning. With an estimated global total of $1.4 trillion in dry powder available, dealmakers who have been eyeing market variables may be ready to pounce. This week’s CDT Roundup looks the possibility of a coming breakout, along with the usual roster of lawyers and firms who reported $68 billion over 18 different deals.
This week’s transactions include two take-private deals. According to studies by Bloomberg and White & Case, turmoil across the equity capital markets is making such deals attractive, with more companies being taken private so far this year than traditional public offerings. In the 18 months from January 2022 through June 2023, there were 47 P2P transactions in the U.S. versus 39 IPOs. And the P2P pace for 2023 may be even quicker. Claire Poole has the specifics, along with the usual roundup of deals and dealmakers for the week.