M&A Quarterly News | Engineering and Construction Industry Sector

M&A Quarterly News | Engineering and Construction Industry Sector

By Peter Heydenrych

March 26, 2018

The report below gives a good overview of the first 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 Q4 2017 included 86 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in October when Lennar Corp acquired CalAtlantic Group, Inc. for US$6.1 billion in cash and stock. The transaction is expected to generate annual cost savings and synergies of approximately US$250 million, with approximately US$75 million achieved in fiscal year 2018. Based in Irvine, California, CalAtlantic Group, Inc. provides home building services.

As the economy strengthens, construction spending across all sectors has increased.

Industry Indicators

  • Total US consumer spending, a driver for the IT needs of consumers, rose 1.7%, primarily from services expenditures, in December 2017 compared to the same month in 2016.
  • US corporate profits, an indicator for corporate investment in information technology, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.
  • Total US revenue for computer systems design and related services rose 2.3% in the third quarter of 2017 compared to the previous year.

Posted by Peter Heydenrych.

Read the Entire Engineering & Construction 1st Quarter Newsletter Here