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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Industrials Sector

By John Hammett | Mar 07, 2018

The report below presents you with a good overview on 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 2017 included 209 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter closed in December when Linamar Corp acquired Macdon Industries Ltd from Moray Marketing, Inc. for CAD1.2 billion (US$933.6 million) in cash. Linamar Corp. is a diversified manufacturing company that engages in engineered products powering vehicles, motion, work and lives. MacDon Industries provides harvesting products. Its products include windrowers, draper header, pull types of hay, and pickup headers. The company is headquartered in Winnipeg, Canada.

2017 saw strong economic and job growth in the US, but jobs in the manufacturing sector remain very low as outsourcing overseas remains the cheapest route.

Industry Indicators

  • US durable goods manufacturers’ shipments of electrical equipment, appliances, and components, an indicator of demand for industrial control products, rose 1.9% year-to-date in November 2017 compared to the same period in 2016.
  • US steel mill product prices, an indicator of commodity steel costs for industrial control manufacturers, rose 7.8% in December 2017 compared to the same month in 2016
  • Total US wholesale sales of durable goods, a potential measure of industrial control products demand, rose 12.0% in November 2017 compared to the same period in 2016.

Posted by John Hammett.

Read the Entire Industrials M&A 1st Quarter Newsletter Here


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