Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Industrials Sector

By Steve Hauser | Aug 14, 2018

The report below presents you with a good overview on the third quarter M&A activity in the Industrials  sector. M&A activity for North American based target companies in the Industrials sector for Q2 2018 included 96 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when Entegris, Inc. acquired SAES Pure Gas, Inc. from SAES Getters SpA for US$355 million in cash, funded from its available cash. The transaction expands Entegris’ semiconductor business. SAES Pure Gas is located in San Luis Obispo, California and manufactures and supplies gas purifiers. SAES Pure Gas reported a revenue and an adjusted EBITDA of US$91.5 million and US$33.1 million, respectively, for the fiscal year ended December 31, 2017.

Buoyed by a strong economy industrial production was strong during Q2 and is expected to remain that way into Q3.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of chemical products, an indicator of industrial chemicals production, rose 4.9% year-to-date in May 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key ingredient in industrial chemical manufacturing, rose 64.0% in the week ending July 6, 2018, compared to the same week in 2017.

Posted by Stephen Hauser.

Read the Entire Industrials M&A 3rd Quarter Newsletter Here

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