The number of M&A transactions increased to 96 in Q2 2023

In Poland, 96 M&A transactions were carried out in Q2 2023, i.e. 10 more than a year earlier, according to the “M&A Index Poland” report prepared by Navigator Capital and Fordata. In terms of industry, Media/IT/Telecom (26%), industry (11%) and financial services (9%) were dominant.

“The largest acquisition transaction in this period was the acquisition of STS Holding, the leader of the Polish bookmaking industry, with approx. 35% of the Polish market, by Entain CEE. The transaction took place through a call for the sale of 100% of the company’s shares, and the equity value is approximately PLN 3.9 billion. As at the date of preparation of the report, this is the transaction with the highest disclosed value concluded in Q2 2023,” reads the release.

Companies representing the TMT sector invariably enjoyed the greatest interest of investors. In the analyzed quarter, they were the subject of over 1/4 of all transactions, which strengthened the sector at the forefront of the Polish M&A market. The last quarter also abounded in transactions in line with the long-observed consolidation trends on the dental services market or dealerships. Transactions in the FMCG sector, in which entities operating on the dairy market were active, may also attract attention, as evidenced by the acquisitions made by Mlekovita, Spomlek and Polmlek. In the past quarter, three transactions involving listed companies with a value exceeding PLN 1 billion were recorded, i.e. a tender offer for STS Holding, Alumetal and TIM, which proves the attractiveness of Polish entities for strategic foreign investors, in particular given the current level of valuations on the Warsaw Stock Exchange.

“The Polish M&A market is doing very well, and the outlook for the coming quarters seems to be equally optimistic. We expect that the current year may be a record year in the history of our report in terms of the recorded number of transactions. Such a picture consists not only of progressive consolidation trends in markets such as medical services, veterinary medicine, RES or dealership, but also high activity of financial and foreign investors. Poland remains an attractive market for potential expansion, where mergers and acquisitions prove to be an effective and efficient tool. In the following periods, we can also expect transactions involving companies with competences that can be used to rebuild Ukraine after the end of the conflict,” commented M&A manager at Navigator Capital Group, Artur Wilk, quoted in the release.

“Limited access to bank financing for smaller businesses opens up new opportunities for private equity investors in Poland, especially in sectors such as healthcare, new technologies, real estate and logistics, and renewable energy. Private equity investments are becoming more attractive to companies than traditional loans,” added Marcin Rajewicz, EMEA key account manager at Fordata.

Among the sellers in the second quarter of this year private investors dominated, accounting for 86% of all transactions. On the buyer’s side, strategic investors from the TMT sector showed significant activity, accounting for 26% of transactions. A significant share of buyers was also recorded in the case of strategic investors dealing with software (11%) and financial services (7%).

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