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Exit and Growth Strategies for Middle Market Businesses

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.

Industry Indicators

  • US durable goods manufacturers’ shipments of fabricated metal products, an indicator of fabricated metal parts production, rose 10.4% year-to-date in February 2018 compared to the same period in 2017.
  • US steel mill product prices, an indicator of commodity steel costs for fabricated metal products manufacturers, rose 4.9% in March 2018 compared to the same month in 2017.

Posted by Jim Zipurski.

Read the Entire Metal Fabrication 2nd Quarter Newsletter Here


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