InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Industry Focus’ Category

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard | Oct 15, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Financial Services sector for Q3 2018 included 268 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in August when Xome, Inc., a subsidiary of WMIH Corp, acquired the business and assets of Mortgage Solutions business of Assurant, Inc. for US$35 million in cash. Under the terms of the agreement, Xome paid US$35 million in cash and an undisclosed amount in contingent payout to the shareholders of Assurant. The acquisition would allow Xome to expand its product offerings. The transaction is expected to be accretive to the earnings of WMIH Corp in 2019.

The financial services sector has been significantly impacted by software and technology, which continues to evolve creating efficiencies and increasing profitability.

 

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

By Daniel Sirvent | Sep 20, 2018

The report below gives a good overview of the third 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 Q2 2018 included 11 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in May when Valiant Integrated Services, LLC acquired Cubic Global Defense, Inc. and Omega Training Group, Inc. from Cubic Corp for $138 Million in cash and contingent payout. Under the terms of transaction, Valiant Integrated Services paid $135 Million in cash and will make additional earnout payments of $3 Million based on certain performance conditions related to the award of certain government contracts over the next 12 to 24 months. The transaction allows Valiant Integrated Services to further expand its business operations. Cubic Global Defense engages in the manufacturing of tactical training and simulation systems while Omega Training Group provides training, testing, analysis, logistics and staffing services for the military industry.
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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.
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M&A Quarterly News In The Food and Beverage Industry Sector

By Terry Fick | Sep 19, 2018

The report below gives a good overview of the third quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q2 2018 included 70 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in May when Lassonde Industries, Inc. acquired Old Orchard Brands, LLC for US$158.9 million in cash, contingent payout and other payment. Under the terms of the agreement, Lassonde Industries paid US$146 million in cash and an additional US$10 million over next two years subject to specified financial milestones. The transaction is in line with Lassonde Industries’ growth strategy and improves its manufacturing footprint in the Midwestern United States. Founded in 1985, Old Orchard Brands, is located in Sparta, Michigan and processes and bottles fruit juices, frozen juice concentrates and nonalcoholic drink mixers.

The recent acquisition of Body Armor by Coca Cola is a continued example of the growth in the specialty beverage sector. This has been particularly evident in the tea sector.

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M&A News In The Consumer Retail Industry Sector

By Joe Sands | Sep 11, 2018

The report below gives a good overview of the third 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 Q2 2018 included 90 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in June when Fairfax Financial Holdings Ltd acquired Toys “R” Us Ltd, trading as Toys “R” Us (Canada) Ltd from Toys “R” Us, Inc. for CAD300 million (US$237.9 million), via bankruptcy. The acquisition is in line with the growth strategy of Fairfax Financial Holdings. The transaction was subject to customary closing conditions, including remaining court and applicable regulatory approvals. Toys “R” Us is located in Concord, Ontario and retails toys, games and electronics for children.

Driven in large part by the ubiquity of Amazon, retail dollars seem to be on a continuous trend toward leaving storefronts for the online giant.

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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.

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M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Aug 20, 2018

The report below provides a good overview of the third 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 (TMT) sector for Q2 2018 included 429 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in May when Cisco Systems, Inc. acquired Accompani, Inc., trading as Accompany, a portfolio company of Resolutevc, LLC, Ignition Venture Partners, ICONIQ Capital, FLOODGATE Fund LP, Cowboy Capital LLC and Charles River Ventures, Inc., for US$270 million in cash and assumed equity awards. The acquisition enhances Cisco’s portfolio of software solutions. Accompani develops and publishes software tools for relationship intelligence. Its platform integrates email, contacts and social feeds to keep users informed on professional connections. The company was founded in 2013 and is headquartered in Los Altos, CA.

The video game market is experiencing explosive growth on mobile platforms. According to data from industry research group Newzoo, in 2018 the mobile video game market will generate $70.3 billion comprising 51% of the global video game market.
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M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Aug 17, 2018

The report below provides a good overview of the third 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 Q2 2018 included 35 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in June when a private group led by the management of Comar, LLC and Morgan Stanley Capital Partners (Private Equity) acquired Comar from Graham Partners, Inc., for an undisclosed amount. Founded in 1949, Comar is located in Voorhees, New Jersey and manufactures plastic bottles and other plastic products.

Injection molders across the US have differentiated themselves by specializing in specific processes. Highly specialized firms can be more attractive acquisition targets for larger companies looking to improve capabilities.

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M&A News In The Business Services Industry Sector

By Brad Purifoy | Aug 16, 2018

The report below gives a good overview of the third Quarter M&A activity in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q2 2018 included 457 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when CBRE Group Inc acquired FacilitySource LLC from Warburg Pincus LLC for US$290 million in cash. The acquisition strengthens CBRE’s ability to deliver integrated solutions for occupier clients. Founded in 2005, FacilitySource LLC is located in Columbus, Ohio and provides outsource integrated facility support services.

Strong GDP growth (4%+) has translated well into the Business Services sector. On the public markets, the sector performed strong gaining 3.9%, significantly outperforming the S&P 500’s rally of 0.6% in the same period.

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M&A News In The Print and Packaging Industry Sector

By Jeff Wright | Aug 16, 2018

The report below gives a good overview of the third Quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q2 2018 included 21 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in May when R2G Rohan Czech Sro, a subsidiary of R2G Rohan SARL, acquired First Quality Nonwovens, Inc. from First Quality Enterprises for US$500 million. R2G Rohan Czech Sro, part of R2G Rohan SARL, is a Czech company that operates as an investment company. First Quality Nonwovens is an American company located in Hazle Township, PA, that manufactures and markets sanitary paper and spun melt nonwovens.

The price of pulp, paper and other allied products flattened out in the second quarter benefitting manufacturers who’d faced steady price increases since July of 2017.

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