InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Industry Focus’ Category

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.
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M&A Quarterly News In The Food and Beverage Industry Sector

By Terry Fick | Jun 15, 2018

The second quarter M&A below provides you a good overview on activities in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q1 2018 included 38 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in January when Highlander Partners LP acquired Chicago Custom Foods LLC, trading as Kernel Season’s from VMG Equity Partners LLC for an undisclosed amount in cash. The transaction was funded by Regions Bank and Norwest Mezzanine Partners. The acquisition allows Highlander Partners to expand its investment portfolio and enables it to focus on food companies and the CPG sector in general. Founded in 2000, Chicago Custom Foods LLC is located in Elk Grove Village, Illinois and provides popcorn seasonings and other snack products.

The cost of food in the United States increased 1.40 percent in April of 2018 over the same month in 2017.

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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.
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M&A News In The Aviation, Aerospace and Defense Industry Sector

By Daniel Sirvent | Jun 11, 2018

The report below gives a good overview of the second quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector.  M&A activity for North American based target companies in the Aerospace and Defense sector for Q1 2018 included 17 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when a private group led by Hanover Partners, Inc., Greyrock Capital Group LLC, Northstar Capital LLC, and the management of Blast Deflectors, Inc. acquired Blast Deflectors, Inc for. an undisclosed amount. Founded in 1957, Blast Deflectors is located and Reno, Nevada, and manufactures jet blast deflectors, ground run-up enclosures, and end-around taxiway screens. Following the transaction, Christopher Lynn, retiring CEO and Blast Deflectors Inc’s prior owner, will remain a board member.

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M&A News In The Wholesale Distribution Industry Sector

By Jeremiah Hughes | Jun 06, 2018

The report below gives a good overview of the second Quarter M&A activity in the Wholesale Distribution Industry Sector. M&A activity for North American based target companies in the Wholesale and Distribution sector for Q1 2018 included 94 closed deals, according to data published by industry data tracker FactSet. One of the notable transactions of the quarter was announced in March when Patricia Industries AB, a subsidiary of Investor AB, acquired Sarnova, Inc., a portfolio company of Water Street Healthcare Partners LLC and Talisman Capital Management Inc, for US$903 million in cash. The transaction enhances Patricia Industries AB’s investment portfolio in medical services sector. Sarnova, distributes healthcare products to emergency care providers, hospitals, schools and universities, businesses and government sectors.

The B2B distribution of products has continually increased its online presence over the last few years.

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M&A News In The Consumer Retail Industry Sector

By Joe Sands | Jun 01, 2018

The report below gives a good overview of the second quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q1 2018 included 149 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Bodega Latina Corp, majority owned by Grupo Comercial Chedraui SAB de CV, acquired Fiesta Mart LLC, a portfolio company of ACON Investments LLC, for a reported US$300 million. The transaction would expand the company’s operations in Texas and its market position in the US Hispanic population. Fiesta Mart is located in Houston, Texas and operates grocery stores.

As e-commerce sales continue to take market share from traditional brick-and-mortar retailers, the percentage of consumers buying products directly from their mobile devices continues to expand.
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M&A News in the Metal Fabrication Industry Sector

By Jim Zipursky | May 30, 2018

The report below provides a good overview of the second Quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q1 2018 included 31 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions announced in the quarter was in January when Wynnchurch Capital, LLC announced that it had completed an investment in Anderson Metals Corporation, Inc. Terms of the deal were not disclosed. Anderson is a manufacturer of brass fittings, valves, pipe nipples and related products to the plumbing, hardware and general industrial end-markets. The Company is headquartered in Kansas City, Missouri and was founded in 1947.

The demand for fabricated steel products rose sharply in Q1 2018 partly driven by the potential for tariffs implemented by the current administration.

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M&A News In The Print and Packaging Industry Sector

By Jeff Wright | May 24, 2018

The report below gives a good overview of the second Quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Packaging and Printing sector for Q1 2018 included 15 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions announced in the quarter was ProAmpac, one of the nation’s largest and fastest-growing flexible packaging manufacturers, acquiring Pactech Packaging (Pactech), a Rochester, New York-based manufacturer specializing in pouch converting. Pactech’s products complement ProAmpac’s existing flexible packaging offerings, which primarily serve the medical, industrial and consumer packaged goods markets. Financial terms of the deal were not disclosed.

According to data from industry group Smithers Pira, the global flexible packaging market is growing 3.5% annually and generates more than $230 billion annually.

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M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | May 21, 2018

The report below provides a good overview of the second quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q1 2018 included 18 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Huntsman Corp acquired Demilec (USA), Inc., a portfolio company of Sun Capital Partners Inc, for US$350 million in cash, subject to adjustments. Huntsman Corp. manufactures chemicals for the plastics, automotive and construction industries. Demilec engages in the manufacture of spray polyurethane foam insulation and coatings. The firm offers products such as demilec APX, sealection 500, pour-in-place, agribalance, heatlok soy, barnseal, geolok, and eco-pur pour-in-place. It also provides a range of products to meet the needs of homeowners, building professionals, architects and insulation contractors.

Worldwide tire sales, a major indicator of rubber usage, are forecast to grow 7% annually to reach a value of about $260 billion by 2019, according to the Freedonia Group.
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M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | May 16, 2018

The report below provides a good overview of the second quarter M&A activity in the Technology, Media and Telecom Industry Sector. M&A activity for North American based target companies in the Technology, Media and Telecom sector for Q1 2018 included 432 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Allen Media LLC, a subsidiary of Entertainment Studios, Inc., acquired Weather Group Television LLC, a portfolio company of Rosemont Solebury Capital Management LLC, AlpInvest Partners BV, Bain Capital Private Equity LP and Blackstone Corporate Private Equity, for $300 million. The acquisition is in line with the growth strategy of Allen Media LLC. Weather Group Television LLC is located in Atlanta, Georgia and broadcasts weather related information.

UBM, the company that puts on the annual Game Developers Conference, took a survey regarding which platforms developers currently consider the most important. Approximately 60 percent of the roughly 4,000 developers surveyed are currently working on a game that will be released on PCs.
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