InSight

Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Industrials Sector

By Steve Hauser | Feb 21, 2020

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 2019 included 125 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in December when Arcline Fm Holdings LLC, a portfolio company of Arcline Investment Management acquired Fairbanks Morse Engine from EnPro Industries, Inc. for US$450 million in cash, subject to potential adjustments at closing. Arcline Fm Holdings provides investment services. Fairbanks Morse Engine engages in engine technology and manufacturing. The firm’s products include diesel products, dual fuel products and gas products. The company was founded in 1885 and is headquartered in Beloit, WI.

Industry Indicators

  • US durable goods manufacturers’ shipments of motor vehicles and parts, an indicator of automobile production, rose 4.5% year-to-date in October 2019 compared to the same period in 2018.
  • US retail sales for motor vehicle and parts dealers, a potential measure of demand for autos, increased 3.9% in the first eleven months of 2019 compared to the same period in 2018.
  • US steel mill product prices, an indicator of commodity steel costs for auto manufacturing, fell 15.1% in November 2019 compared to the same month in 2018.

Posted by Stephen Hauser.

Read the Entire Industrials 1st Quarter Newsletter Here


Leave a Comment