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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Industrials Sector

By Steve Hauser | Feb 26, 2019

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 2018 included 117 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Nine Energy Service, Inc. acquired Magnum Oil Tools International Ltd for US$507.1 million in cash, stock and contingent payout. The transaction enhances Nine Energy Service’s portfolio of pipe business. It offers flag plugs, magnum disks, setting tools, composite cement retainers, floatation devices and more. Magnum Oil Tools International is located in Corpus Christi, Texas and manufactures downhole products.

Industry Indicators

  • Total US manufacturers’ shipments, which indicate manufacturing sector activity, rose 7.6% year-to-date in October 2018 compared to the same period in 2017.
  • The spot price of crude oil, which indicates energy prices paid by manufacturers, fell 19.7% in the week ending January 11, 2019, compared to the same week in 2018.
  • US steel mill product prices, an indicator of commodity steel costs for manufacturers, rose 18.5% in December 2018 compared to the same month in 2017.

Posted by Stephen Hauser.

Read the Entire Industrials 1st Quarter Newsletter Here


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