Louisiana experienced 206 mergers or acquisitions in 2022

January 27, 2023

By: G.F. Gay Le Breton and Alexander Aguilar January 26, 2023


Despite global geopolitical tension, inflation and rising interest rates, Louisiana saw 206 acquisition or merger transactions announced or closed in 2022 that involved a buyer, seller or target company from the state. Deal volume in 2022 remained steady but disclosed transaction value fell significantly from $21.1 billion in 2021 to $9.6 billion. Most Louisiana transactions involved privately-owned companies that did not disclose sale price.

The decrease in Louisiana transaction value echoed a broader U.S. trend.   Total US deal value in 2022 declined 43% to $1.53 trillion, according to Dealogic.  This drop reflects lower share prices for public companies, a pullback in leveraged finance, bond market jitters and concerns about a possible recession.

The largest Louisiana transaction announced in 2022 was LHC Group’s pending merger with Optum, a subsidiary of UnitedHealth Group, in a deal valued at $5.4 billion. Approximately 70% of LHC’s revenue is derived from home health care services.  UnitedHealth positioned the move as helping to advance value-based care and said it would accelerate the combined companies’ ability to deliver integrated care, leading to improved outcomes.  The merger follows the larger trend of healthcare moving toward hospital-at-home services which provide both patient care and economic benefits. LHC expects the deal to close during the first quarter of 2023, after completion of an FTC review.

In total, 13% of Louisiana’s 2022 transactions were related to healthcare, continuing the trend in this industry towards consolidation.  Ochsner Health Systems, LCMC Health Systems, Notre Dame Health System, Our Lady of the Lake Regional Medical Center in Baton Rouge, AppleGate Recovery LLC headquartered in Bossier City and Baton Rouge-based Amedisys all announced one or more transactions last year.

Top 10 Louisiana Deals in 2022With Disclosed ValuesSize of Deal($ in Millions)Date
1. UnitedHealth Group announced the addition of LHC Group (NasdaqGS:LHCG) to its Optum health business.5,40003/29/2022
2. Shell Offshore Inc., a subsidiary of Shell, PLC, sold its 51.8% interest in Aera Energy LLC to Green Gate Resource E, LLC, a subsidiary of IKAV.2,00009/01/2022
3. ProFrac Holding Corp. entered into a definitive agreement to acquire Performance Proppants, LLC.47512/23/2022
4. Origin Bancorp, Inc (Nasdaq: OBNK) announced the acquisition of BT Holdings, Inc. which has since closed.30402/23/2022
5. Shareholders of Gordon Technologies LLC sold 25 percent of their equity ownership to Alpha Dhabi Holding PJSC (ADX: ALPHADHABI), a subsidiary of Abu Dhabi’s International Holding Company.16411/02/2022
6. Louisiana Children’s Medical Center announced the acquisition of Tulane Medical Center; Lakeview Regional Medical, and Tulane Lakeside Hospital.15010/10/2022
7. H&E Equipment Services Inc. (NASDAQ: HEES) announced the completion of its acquisition of One Source Equipment Rentals Inc.13009/19/2022
8. Tellurian Production LLC, a subsidiary of Tellurian Inc. (NYSE: TELL), entered into an agreement to purchase natural gas assets from EnSight IV Energy partners, LLC and EnSight Haynesville Partners, LLC.12507/13/2022
9. Helix Energy Solutions Group, Inc (NYSE: HLX) announced that it entered into a definitive agreement to acquire Alliance Group of Companies120 & post-closing earnout05/16/2022
10. Lotte Chemical USA Corporation, a subsidiary of Lotte Chemical Corporation, entered into an agreement to transfer an additional 3.23 percent interest in LACC LLC to Eagle US 2 LLC.8902/11/2022
Source: Capital IQ, corporate and other records, staff research; Price = Enterprise Value where available.
Note: Includes Announced or Closed transactions involving a Louisiana Target, Buyer or Seller.

Energy and energy services transactions in Louisiana saw a resurgence in 2022.  Five of the largest deals were in this space.   New Orleans-based Shell Offshore Inc. has agreed to sell a 51.8% interest in California-based Aera Energy LLC to IKAV, an international asset management group, for approximately $2 billion in cash, with additional contingent payments based on future oil prices.  Zoe Yujnovich, Shell’s Upstream Director, said, “This decision supports our strategy to create a resilient and competitive upstream portfolio by focusing on positions with high growth potential and a strong integrated value chain.” Shell’s deal will end its upstream position in California.

Louisiana’s most active participant in 2022’s M&A activity was Bernhard Capital Partners, a services and infrastructure focused private equity group headquartered in Baton Rouge. Together, Bernhard Capital and its portfolio companies announced seven acquisitions.

The company is using their most recent acquisitions of Sterling Engineering & Consulting Group and Boston Government Services to create a dedicated Department of Energy services platform that will expand their consulting and field service offerings around the DOE complex.  “As the DOE and broader commercial industries continue to invest ambitiously in clean energy, energy security, modernization and transitioning our energy grid and national infrastructure, the expertise of the BGS and SE&C teams will be invaluable to driving the long-term success of these essential national, regional and local projects,” said Chris Dillon, Managing Director at Bernhard.

Locally, OutSolve LLC and its owners were also active in 2022.  LNC Partners, a private equity group who invested in OutSolve in 2016, sold a majority interest in the company in October 2022 to another private equity investor, The Riverside Company, for an undisclosed price.  LNC maintains an interest in OutSolve.

Founded in 1998 by its President, Jeremy Mancheski and others, and based in Metairie, OutSolve provides outsourced affirmative action plans, labor audit support, DE&I, pay equity, and most recently ESG services.  With LNC’s support, OutSolve acquired eight companies to accelerate its growth, including two in the first half of 2022.

Riverside’s investment will also support growth.  Since the change in ownership in October, OutSolve acquired two additional companies.

G.F. Gay Le Breton is managing director for Chaffe & Associates Inc. responsible for the merger and acquisition activities of the firm. Alexander Aguilar is a financial analyst with the firm.

Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com.