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Exit and Growth Strategies for Middle Market Businesses

M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Nov 19, 2018

The report below gives 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 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in July when Mueller Industries, Inc. acquired ATCO Rubber Products, Inc. for US$163.4 million in cash and contingent payout. The acquisition would allow Mueller Industries to expand its climate products businesses. ATCO Rubber Products is located in Fort Worth, Texas manufactures flex duct systems for residential and commercial heating, ventilation and AC applications. It generated revenue of US$166 million for the fiscal year ended December 31, 2017 and has 800 employees.

End-use markets continue to grow year over year as more products in the U.S. are manufactured out of plastic and rubber materials.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of plastics and rubber products, an indicator of plastic and rubber products production, rose 2.3% year-to-date in August 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key raw material in plastic and rubber manufacturing, rose 35.8% in the week ending October 19, 2018, compared to the same week in 2017.

Posted by Jim Zipurski.

Read the Entire Plastics and Rubber 4th Quarter Newsletter Here


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