The report below gives a good overview of the third quarter M&A activity in the Industrials Sector. M&A activity for North American – based target companies in the Industrials sector for Q2 2019 included 84 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in June when Archrock, Inc. agreed to acquire Elite Compression Services LLC from JDH Capital Co for US$416.2 million in cash and stock. Closing was expected in early August. As part of the acquisition, Archrock would obtain approximately 430,000 large-horsepower compression units. Elite Compression Services is headquartered in Victoria, Texas and provides contract midstream natural gas compression services, primarily in TX, OK, LA, and off-shore Gulf fields.

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The report below gives a good overview of the second quarter M&A activity in the Industrials Industry Sector. M&A activity for North American based target companies in the Industrials sector for Q1 2019 included 503 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in February when The Toro Co. acquired Charles Machine Works, Inc. for US$700 million in cash. The acquisition includes Ditch Witch and several other brands within the underground construction market. Funding for the transaction was provided through Toro Co’s existing credit facility provided by JP Morgan and Merrill, Lynch, Pierce, Fenner & Smith. The acquisition would allow The Toro Co to further enhance its existing business portfolio of brands within the industry.

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The report below gives a good overview of the first quarter M&A activity in the Industrials Sector. M&A activity for North American based target companies in the Industrials sector for Q4 2018 included 117 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Nine Energy Service, Inc. acquired Magnum Oil Tools International Ltd for US$507.1 million in cash, stock and contingent payout. The transaction enhances Nine Energy Service’s portfolio of pipe business. It offers flag plugs, magnum disks, setting tools, composite cement retainers, floatation devices and more. Magnum Oil Tools International is located in Corpus Christi, Texas and manufactures downhole products.

Industry Indicators

• Total US manufacturers’ shipments, which indicate manufacturing sector activity, rose 7.6% year-to-date in October 2018 compared to the same period in 2017.
• The spot price of crude oil, which indicates energy prices paid by manufacturers, fell 19.7% in the week ending January 11, 2019, compared to the same week in 2018.
• US steel mill product prices, an indicator of commodity steel costs for manufacturers, rose 18.5% in December 2018 compared to the same month in 2017.

Posted by Stephen Hauser.

Read the Entire Industrials 1st Quarter Newsletter Here

The report below gives a good overview of the fourth quarter M&A activity in the Industrials  sector. M&A activity for North American based target companies in the Industrials sector for Q3 2018 included 95 closed deals, according to data published by industry data tracker FactSet.

Fully one-third of the transactions had a Non-U.S. company as either the direct acquiror or the acquiror’s ultimate parent. Canadian and German firms were the most active buyers, and Sandvik AB from Sweden was involved in two transactions. Several of these are in the highlighted transactions table below. We believe the robust U.S. economy and more now-attractive corporate tax rates will auger well for strong additional in-bound investment.

Another six of the transactions were in the Oil & Gas industry, specifically drilling and development goods and equipment.

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The report below presents you with a good overview on the third quarter M&A activity in the Industrials  sector. M&A activity for North American based target companies in the Industrials sector for Q2 2018 included 96 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when Entegris, Inc. acquired SAES Pure Gas, Inc. from SAES Getters SpA for US$355 million in cash, funded from its available cash. The transaction expands Entegris’ semiconductor business. SAES Pure Gas is located in San Luis Obispo, California and manufactures and supplies gas purifiers. SAES Pure Gas reported a revenue and an adjusted EBITDA of US$91.5 million and US$33.1 million, respectively, for the fiscal year ended December 31, 2017.

Buoyed by a strong economy industrial production was strong during Q2 and is expected to remain that way into Q3.
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The report below presents you with a good overview on the second Quarter M&A activity in the Industrials  sector. M&A activity for North American based target companies in the Industrials sector for Q1 2018 included 60 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in March when Tooling Technology LLC, a portfolio company of GenNx360 Capital Partners, acquired Century Tool & Gage Co, a portfolio company of First Capital Partners LLC, Broadgate Capital LLC (Texas) and Highline Equity Partners LLC, for an undisclosed amount. The transaction also includes Century Tool & Die and CTG Bel-Kur. The acquisition complements Tooling Technology LLC’s existing operations.

Manufacturing continues to adopt automation technologies to enhance quality, labor productivity and safety. While the population of robots in U.S. factories has increased dramatically the potential for further growth is enormous considering the size of the U.S. and our machine/worker ratio vs. traditional global peers Japan and Germany.

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The report below presents you with a good overview on the first quarter M&A activity in the Industrials  sector. M&A activity for North American based target companies in the Industrials sector for Q4 2017 included 209 closed deals, according to data published by industry data tracker FactSet. One of the notable transactions of the quarter closed in December when Linamar Corp acquired Macdon Industries Ltd from Moray Marketing, Inc. for CAD1.2 billion (US$933.6 million) in cash. Linamar Corp. is a.. Read more »

The fourth quarter M&A below provides you a good overview on activities in the Industrials Sector. M&A activity for North American based target companies in the Industrials sector for Q3 2017 included 124 closed deals, according to data published by industry data tracker FactSet.

One of the largest deals of the quarter closed in September when HB Fuller Co acquired Royal Adhesives & Sealants LLC, a portfolio company of American Securities LLC, for US$1.6 billion in cash. The consideration was financed through a new senior secured syndicated term loan facility with Morgan Stanley in an aggregate amount of US$2.1 billion, a public offering of new senior notes, and other financing alternatives. Royal Adhesives & Sealants manufactures and markets adhesives, sealants, and polymer coatings. The acquisition is in line with HB Fuller’s strategic objective to grow its engineering adhesives market.

The Industrials sector had a strong quarter on the public markets outperforming the S&P 500.

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The report below gives a good overview of the third quarter M&A activity in the Industrials Industry Sector. M&A activity for North American based target companies in the Industrials sector for Q2 2017 included 116 closed deals, according to data published by industry data tracker FactSet.

One of the largest middle market deals of the quarter was announced in April when A private group led by the Dutil family, Marcel Dutil’s holding company, Placements CMI Inc., and AIP LLC acquired Canam Group, Inc. for CAD557.9 million (US$411.5 million) in cash. Canam Group is located in Saint Georges, Québec, Canada and provides fabricated steel joists and construction components, semi-trailers and forestry equipment. As with the stock market as a whole, the Industrials sector has grown more than 8.2% since the start of 2017. Growth has, in part, been driven by a renewed focus on manufacturing in the U.S.

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M&A activity for North American based target companies in the industrials industry for Q3 2016 included 235 closed deals, according to data published by industry data tracker FactSet. The average transaction value was $231 million.

On the public markets the industrials industry sector had an up-and-down quarter affected by shifting commodity prices, but ended strongly heading into Q4. Both presidential candidates have promised to make significant investments in infrastructure if elected, which should positively affect industrials stock moving forward.

Mergers in the highly concentrated industrial gas sector could trigger more asset sales as the largest suppliers look to clear antitrust hurdles. Germany-based Linde recently entered preliminary talks to merge with US-based Praxair, a combination that would make Linde/Praxair the leading global industrial gas supplier, according to The Wall Street Journal. That designation currently belongs to France-based Air Liquide, which grabbed the top spot in May 2016 when its $13.4 billion acquisition of US-based Airgas closed. Like Air Liquide and Airgas, Linde and Praxair will face intense antitrust scrutiny if the transaction proceeds and regulators could force the companies to divest certain production units. The Federal Trade Commission required Air Liquide and Airgas to sell off assets with revenues of $270 million before greenlighting their merger. Air Liquide agreed to sell 18 air separation plants, two nitrous oxide plants, four liquid carbon dioxide facilities, and three welding gas retail stores to New Jersey-based Matheson Tri-Gas (a subsidiary of Japan’s Taiyo Nippon Sanso) in June 2016.

Industry Indicators

• US nondurable goods manufacturers’ shipments of chemical products, an indicator of industrial chemicals production, rose 2.3% year-to-date in August 2016 compared to the same period in 2015.
• The spot price of crude oil, a key ingredient in industrial chemical manufacturing, rose 10.0% in the week ending October 7, 2016, compared to the same week in 2015.

Posted by John Hammett.

Read the Entire Industrials M&A 4th Quarter Newsletter Here