Qantas’ proposed Alliance Aviation acquisition tops Pitcher Partners’ list of Qld’s biggest 2022 deals

Big money is still chasing Queensland companies, with more than major 120 deals announced already this year, despite economic headwinds. See the top 10, which alone are worth more than $3.2 billion.

QANTAS Airways’ proposed acquisition of Brisbane-based Alliance Aviation Services is the largest of 128 deals ­announced this year, according to a new report.

Pitcher Partners’ latest Deal Pulse Queensland report found the combined disclosed value of the deals announced in the first half of 2022 was $4.6 billion.

Warwick Face, partner in charge – corporate finance at Pitcher Partners said there were plenty of headwinds this year with a federal election, rising interest rates, inflation and global instability.

“All this coupled with some steady Covid-19 caution, could have stalled M&A activity,” he said.

“So if you wind back 12 months in 2021 we saw the largest M&A year we’ve ever seen in Queensland. What we’ve seen this year so far is a return to more normal level that we saw in years prior to 2021.”

Last year Pitcher Partners reported a record 337 deals – up 28 per cent on 2020 – valued at $44.3bn and in the last six months of 2021 there were 190.

However, this year there were no mega deals with only six above $250m with Qantas’ proposal to acquire the remaining 80 per cent of FIFO specialist Alliance Aviation Services for about $808m the largest.

However, Qantas’ plans were in doubt after the ACCC in August raised concerns in its preliminary report into the takeover.

Qantas’ is proposing to acquire the remaining 80 per cent of FIFO specialist Alliance Aviation Services for about $808m.

Business Services had the largest percentage increase in activity, doubling last year’s first half numbers with 16 deals, led by US-based Global Infrastructure Solutions’ $617m acquisition of foreign aid infrastructure consultants The Palladium Group that was once part of Kerry Packer’s empire.

Mr Face said most Business Services transactions were driven by staffing solutions transactions arguably reflecting the current labour market challenges.

The most active sector remains Technology, Media and Telecommunications with 25 deals, eight of those being application software deals, and a further six being IT consulting deals for a total of $513m with Singtel’s NCS paying $350.8m for Dialog the largest.

Transportation trended up with seven deals in the first half while Construction had eight deals including Mt Isa-based copper explorer Fetch Materials agreeing to acquire Queensland Mining Corporation for $58m.

Mr Face said M&A activity will continue to be strong for the of the year.

“Whether the second half of 2022 delivers a result similar to the end of 2021 remains to be seen because the second half of 2021 was pretty big,” he said.

“But there’s certainly a lot of activity in the market and we’re pretty optimistic.”

BIGGEST QLD DEALS

Buyer Target Value

1. Qantas Airways Alliance Aviation Services $808m

2. Global Infrastructure Solutions Palladium Group $617.4m

3. NCS PTE Dialog $350.8m

4. Oaktree Capital Management Ferra Holdings $350m

5. Gold Road Resources DGO Gold $302m

6. Aeris Resources Round Oak Minerals $262.9

7. UC ANZ Management Suntory Coffee Australia $220.5m

8. AP Eagers WFM Motors $193m

9. Pfizer Australia ResApp Health $99.5m

10. ASL Ltd HRL Holdings $87.1m

* M&A which have been completed or announced in the first half of 2022.

Source: Pitcher Partners Deal Plus