InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Industry Focus’ Category

M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Mar 05, 2018

The report below presents you with a good overview on the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2017 included 90 closed deals, according to data published by industry data tracker FactSet. 

One of the largest transactions of the quarter closed in October when Global Infrastructure Management, LLC acquired Medallion Gathering & Processing LLC, a joint venture between EMG Fund II Management LP (51%) and Laredo Petroleum Inc (49%), for US$1.8 billion in cash, subject to certain adjustments. Medallion Gathering & Processing develops midstream solutions. It offers construction of all facilities and pipelines to gather process and deliver production from wells. The company is headquartered in Irving, TX.

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M&A News In The Business Services Industry Sector

By Brad Purifoy | Feb 28, 2018

The report below gives a good overview of the first 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 Q4 2017 included 390 closed deals, according to data published by industry data tracker FactSet.
Rising awareness among executives about the negative business impact of security incidents and a need to keep up with regulatory changes is leading to an increase in global spending on information security, according to Gartner. Worldwide spending on information security products and services is forecast to grow 7% year-over-year to reach a total of about $86 billion in 2017, with such spending expected to grow to $93 billion in 2018. Spending on global cybersecurity is being driven by an increase in data breaches and a greater need for app security testing. The European Union’s General Data Protection Regulation, set to take effect in May 2018, is also sparking concern about IT security. The new rule is expected to drive 65% of data loss prevention buying decisions through 2018.

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M&A News In The Commercial Real Estate Industry Sector

By Peter Moore | Feb 28, 2018

The report below gives a good overview of the first quarter M&A activity in the Commercial Real Estate Industry Sector.

Deal volume and prices increased yearly from Q3’11 through to Q3’16, but that was not the case in 2017. In the commercial real estate sector in 2017, increasing prices showed owners looking to hold onto assets with a focus more on cashflow (cap. rates) than a large pay out at disposition.

The trend of foreign buyers looking to invest in U.S. commercial real estate continued in 2017. According to data from the National Association of Realtors, the top countries of origin for foreign buyers included China, Mexico, the United Kingdom and Venezuela.

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

By Joe Contaldo | Dec 13, 2017

The report below gives a good overview of the fourth quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. M&A activity for North American based target companies in the Retail and Consumer sector for Q3 2017 included 18 closed deals, according to data published by industry data tracker FactSet.
Private equity has been active in defense of late as evidenced by Odyssey Investment Partners LLC acquiring CPI International LLC, a portfolio company of Veritas Capital Fund Management LLC, for a reported value of US$800 million. The acquisition enhances the growth strategies of CPI International. CPI International manufactures and designs satellite communications. Its defense applications include radar, electronic warfare and communications end markets.
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M&A News In The Consumer and Retail Industry Sector

By Joe Sands | Dec 12, 2017

The report below gives a good overview of the fourth quarter M&A activity in the Consumer and Retail Industry Sector. M&A activity for North American based target companies in the Retail and Consumer sector for Q3 2017 included 93 closed deals, according to data published by industry data tracker FactSet.
E-commerce is continuing to dominate retail and e-commerce solutions have been a big spark for M&A. In September Pitney Bowes, Inc. acquired Newgistics Inc., a portfolio company of Littlejohn & Co LLC, for US$475 million in cash. Newgistics, Inc. provides e-commerce services to retailers. It offers end-to-end e-commerce solutions that integrate every step in the order life cycle from customer acquisition through fulfillment, delivery and returns.

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M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Dec 11, 2017

The report below provides a good overview of the fourth quarter M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q3 2017 included 183 closed deals, according to data published by industry data tracker FactSet.

National health expenditures are projected to grow at a rate of 5.6% on average per year according to the U.S. Office of Actuary. The country’s aging population is expected to contribute significantly to that spending growth.

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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.

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M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Nov 20, 2017

Sell your Plastic BusinessThe report below provides a good overview of the fourth 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 Q3 2017 included 18 closed deals, according to data published by industry data tracker FactSet.

Plastics manufacturers that serve the retail sector have seen steady growth with online retailers, according to Plastics News. Nonstore retail, which primarily includes online retailers such as Amazon, saw sales growth of nearly 11% in the first four months of 2017. While online sales are expected to continue to drive demand for foam packing peanuts and bubble wrap, nonstore retail should also spur demand for specialized durable and reusable plastic shipping containers.

Demand for plastics and rubber in the manufacturing sector has been a guy driver for sector growth throughout 2017.

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

By Dan Vermeire | Nov 17, 2017

The report below provides a good overview of the fourth 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 Q3 2017 included 266 closed deals, according to data published by industry data tracker FactSet.

One of the more notable deals of the quarter was announced in September when Internet Brands, Inc., a portfolio company of Kohlberg Kravis Roberts & Co LP, acquired WebMD Health Corp for US$2.5 billion in cash. Under the terms of the agreement, Internet Brands paid US$66.5 in cash for each share of WebMD Health Corp. The transaction enhances the business portfolio of both companies.

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M&A News In The Print and Packaging Industry Sector

By Anthony Contaldo | Nov 16, 2017

The report below gives a good overview of the 4th quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Printing and Packaging sector for Q3 2017 included 29 closed deals, according to data published by industry data tracker FactSet.

One of the largest middle market deals closed in July when West Fraser Timber Co. Ltd. acquired Gilman Paper Co, trading as The Gilman Cos, from The Howard Gilman Foundation, Inc. and other shareholders, for US$418 million in cash, subject to certain post-closing adjustments. The acquisition enhances West Fraser Timber’s portfolio of paper businesses. According to data from Smithers Pira the corrugated board packaging market is projected to top $67 billion this year.

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