InSight

Exit and Growth Strategies for Middle Market Businesses

Author Archive

M&A Quarterly News In The Engineering and Construction Industry Sector

By Peter Heydenrych | Dec 06, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q3 2018 included 97 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was closed in September when Infrastructure & Energy Alternatives, Inc. acquired American Civil Constructors, Inc., a portfolio company of Insight Equity Holdings LLC, for US$145 million. Included in the transaction is American Civil’s subsidiary Saiia Construction Co. LLC. The acquisition would expand Infrastructure & Energy’s capabilities in the engineering sector. American Civil Constructors is located in Phoenix, Arizona and provides construction services and supplies construction materials.

Housing starts in the US increased 1.5 percent from September to an annualized rate of 1,228 thousand in October of 2018, compared with market expectations of a 1.6 percent rise.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for construction services, rose 7.7% in the second quarter of 2018 compared to the same period in 2017.
  • The value of US nonresidential construction spending, a demand indicator for heavy construction, rose 5.0% year-to-date in September 2018 compared to the same period in 2017.
  • US steel mill product prices, an indicator of commodity steel product costs used in construction, rose 18.2% in October 2018 compared to the same month in 2017.

Posted by Peter Heydenrych.

Read the Entire Engineering & Construction 4th Quarter Newsletter Here


M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Nov 28, 2018

The report below provides a good overview of the fourth quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q3 2018 included 59 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in September when General Logistics Systems BV, a subsidiary of Royal Mail Group Ltd, ultimately owned by Royal Mail Plc, acquired Dicom Transportation Group Canada, Inc., a portfolio company of Wind Point Advisors, LLC, for CAD360 million (US$276.1 million) in cash, on a cash-free debt-free basis. The acquisition allows Royal Mail to further expand and diversify its existing business operations. Dicom Transportation Group Canada is located in Montréal, Québec and provides business to business transportation services. It generated revenue of approximately CAD233 million (US$178.7 million) for the year ended June 30, 2018.

Read more »


M&A Quarterly News In The Engineering and Construction Industry Sector

By Peter Heydenrych | Sep 19, 2018

The report below gives a good overview of the third quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q2 2018 included 98 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in June when Gutridge Plumbing, Inc., a portfolio company of Kassel Equity Group, LLC, acquired Titan Electrical Construction & Design, Inc. for an undisclosed amount. The acquisition would enhance Gutridge Plumbing’s service capabilities. Titan Electrical Construction & Design is located in Ohio and provides electrical contracting services.

Building permits were on the rise in quarter, which bodes well for the construction sector. Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,311,000. This is 1.5 percent (±1.3 percent) above the revised June rate of 1,292,000 and is 4.2 percent (±1.7 percent) above the July 2017 rate of 1,258,000.
Read more »


M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Sep 06, 2018

The report below provides a good overview of the third quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q2 2018 included 50 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in July when The Jordan Co LP acquired GlobalTranz Enterprises, Inc., a portfolio company of Providence Equity Partners LLC, Susquehanna Growth Equity LLC, Volition Capital LLC and Savano Direct Capital Partners LLC, for an undisclosed amount. The acquisition expands Jordan Co’s existing portfolio. GlobalTranz Enterprises is located in Scottsdale, Arizona and provides international freight forwarding services.

As the retail sector shifts more toward e-commerce, there continues to be a surging demand for truck drivers.

Read more »


M&A Quarterly News | Engineering and Construction Industry Sector

By Peter Heydenrych | Jun 28, 2018

The report below gives a good overview of the second quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q1 2018 included 81 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when TopBuild Corp acquired USI, Inc., formerly known as United Subcontractors, Inc., a portfolio company of Reinet Investments Manager SA and Trilantic Capital Management LP, for US$475 million in cash. Founded in 1998, USI is located in St. Paul, Minnesota and engages in the installation of residential and commercial products. It generated revenues of approximately US$375 million for the year ended 2017.TopBuild Corp. is an installer and distributor of insulation products.

Housing starts continued on an upward curve in the first quarter as the economy remains strong.
Read more »


M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Jun 11, 2018

The report below provides a good overview of the second quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector.  M&A activity for North American based target companies in the Transportation and Logistics sector for Q1 2018 included 44 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Greenbriar Equity Group LLC acquired LaserShip Inc, a portfolio company of Monitor Clipper Partners LLC, for an undisclosed amount. The acquisition supports Greenbriar Equity Group LLC’s expansion strategy. LaserShip is located in Vienna, Virginia and provides custom delivery and distribution solutions.

The warehousing and logistics industries are trending toward automation and robotics to remain competitive. Tractica, a global research organization, forecasts that worldwide warehousing and logistics robot unit shipments will increase from 40,000 units in 2016 to 620,000 units annually by 2021.
Read more »


M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Apr 04, 2018

The report below provides a good overview of the first quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q4 2017 included 23 closed deals, according to data published by industry data tracker FactSet.

One of the largest transactions of the quarter closed in October when AMP Capital Investors Ltd, acquired ITS Technologies & Logistics LLC from Carlyle Infrastructure GP Ltd for US$500 million. AMP Capital Investors Ltd. (AMP Capital) is the wholly-owned investment management subsidiary of AMP Capital Holdings Ltd., ultimately held by financial group AMP Ltd. (SY: AMP, ADR: AMLYY) in Australia. ITS Technologies & Logistics provides rail intermodal terminal services. The firm offers rail terminal operations, auto loading and unloading, contract switching and lift equipment, and trailer and chassis maintenance. The company was founded in 1984 and is headquartered in Darien, IL.

There is a significant shortage of qualified truck drivers. As the US economy has improved, demand for freight transportation has grown, and carriers are increasingly concerned that trucking demand will outstrip the supply of qualified drivers.

Read more »


M&A Quarterly News | Engineering and Construction Industry Sector

By Peter Heydenrych | Mar 26, 2018

The report below gives a good overview of the first quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q4 2017 included 86 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in October when Lennar Corp acquired CalAtlantic Group, Inc. for US$6.1 billion in cash and stock. The transaction is expected to generate annual cost savings and synergies of approximately US$250 million, with approximately US$75 million achieved in fiscal year 2018. Based in Irvine, California, CalAtlantic Group, Inc. provides home building services.

As the economy strengthens, construction spending across all sectors has increased.

Read more »


M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Dec 11, 2017

The report below provides a good overview of the fourth quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q3 2017 included 41 closed deals, according to data published by industry data tracker FactSet.

There has been significant consolidation in the supply chain technology sector, which has a substantial impact across the supply chain and logistics sector. Case in point, in September of this year HighJump, a global provider of supply chain management solutions, announced that it acquired Wesupply, a United Kingdom-based premier provider of supplier enablement and B2B integration solutions across multiple industries including retail, building, CPG, energy and manufacturing. With this acquisition, HighJump further expands its global footprint and extends its growing position in the market.
E-commerce giant Amazon continues to be a leader in supply chain and logistics with more than 200 fulfillment centers across the United States.

Read more »


M&A Quarterly News | Engineering and Construction Sector

By Peter Heydenrych | Nov 10, 2017

The report below gives a good overview of the fourth quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q3 2017 included 52 closed deals, according to data published by industry data tracker FactSet.

The nonresidential building market is expected to be among the weakest-performing segments of the overall US construction market over the next few years, according to a July 2017 forecast by ConstructConnect and Oxford Economics. US nonresidential building construction activity fell nearly 18% in the second quarter of 2017 compared to the same period a year earlier.

Second-quarter activity was particularly weak for retail and parking garage segments. Between 2017 and 2021, nonresidential building construction starts are forecast to see annual growth of less than 2%. While starts were weak in the second quarter 2017, construction projects in the manufacturing sector could be a bright spot moving forward amid low energy costs, technical expertise in competitive world markets, and pressure from the Trump administration to keep manufacturing jobs in the US. Manufacturing-related construction starts are expected to drop more than 11% in 2017, then rise more than 9% in 2018. After a slight rise in 2018, commercial starts are forecast to gradually decline through 2021, but institutional projects should see modest annual upticks in activity.

Read more »