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Buy-out market in Wales at pounds 214m.

FIGURES released by the Centre for Management Buy-out Research value the buy-out market both for new deals and exits in Wales at just over pounds 214m.

One of the top deals clinched during the year was the pounds 11. 5m management buy-out of Wrexham-based Demon Tweeks, one of two transactions in the pounds 10m to pounds 25m bracket.

The Demon Tweeks deal in August saw an eight-strong buy-out team headed by company chief executive Jon Minshaw acquire the business which supplies the specialist parts and equipment needed by motors ports competitors.

The study, sponsored by Barclays Private Equity and professional services firm Deloitte, shows that despite a fall in the number of buy-out or buy-in deals to 18 in 2004 their average value increased dramatically to pounds 11. 9m - pounds 9. 9m more than the average value in 2003 and nearer to the highs of 1999 and 2000. The figures show two deals were in the pounds 25 to pounds 50m bracket and one was worth more than pounds 100m.

The number of higher value buy-ins/buy-outs in Wales compares favourably with other parts of the UK, taking into account the region's size, as Wales equal led the number of deals in the pounds 75m to 150m category in the West Midlands and Yorkshire/Humberside and fared better than the North East and the South West of England. The year 2004 also saw a dramatic increase in privately held family companies as the main source of management buy-outs/buy-ins with 63. 2% of deals derived from this area.

Colin John, corporate finance director at Deloitte Cardiff, said: ``These statistics highlight the current buoyancy of the Welsh economy. It is encouraging to see the significant increase in the average value. ''
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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Jan 12, 2005
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