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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Industrials Sector

By John Hammett | Nov 08, 2017

The fourth quarter M&A below provides you a good overview on activities in the Industrials Sector. M&A activity for North American based target companies in the Industrials sector for Q3 2017 included 124 closed deals, according to data published by industry data tracker FactSet.

One of the largest deals of the quarter closed in September when HB Fuller Co acquired Royal Adhesives & Sealants LLC, a portfolio company of American Securities LLC, for US$1.6 billion in cash. The consideration was financed through a new senior secured syndicated term loan facility with Morgan Stanley in an aggregate amount of US$2.1 billion, a public offering of new senior notes, and other financing alternatives. Royal Adhesives & Sealants manufactures and markets adhesives, sealants, and polymer coatings. The acquisition is in line with HB Fuller’s strategic objective to grow its engineering adhesives market.

The Industrials sector had a strong quarter on the public markets outperforming the S&P 500.

Industry Indicators

  • Total US manufacturers’ shipments, an indicator of demand for industrial supplies used in manufacturing operations, rose 4.7% year-to-date in August 2017 compared to the same period in 2016.
  • Total US wholesale sales of durable goods, a potential measure of industrial supply demand, rose 9.2% in August 2017 compared to the same period in 2016.

Posted by John Hammett.

Read the Entire Industrials M&A 4th Quarter Newsletter Here


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