InSight

Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Commercial Real Estate Industry Sector

By Peter Moore | Apr 19, 2019

The report below gives a good overview of the second quarter M&A activity in the Commercial Real Estate Industry Sector.  According to data released by CBRE, a leading commercial real estate firm, commercial real estate investment volume rose 20.6% year-over-year in Q4 to $152.4 billion. Total investment for the year was $534.8 billion, a sizable increase of 14.8% from 2017.

The largest investment in Q4 was in the major metro markets of New York, Los Angeles and the San Francisco Bay Area. Those three regions accounted for 27.7% of all investment dollars. Additionally, the top-15 markets accounted for 64.4% of total Q4 investment volume.
Read more »


M&A Quarterly News In The Engineering and Construction Industry Sector

By Peter Heydenrych | Mar 21, 2019

The report below gives a good overview of the first quarter M&A activity in the Engineering and Construction Industry Sector. M&A activity for North American based target companies in the Engineering and Construction sector for Q4 2018 included 61 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when MDU Resources Group, Inc. acquired Sweetman Construction Co, doing business as Concrete Materials Co, for an undisclosed amount. The transaction expands the construction materials business of MDU and is expected to be accretive to earnings per share. Following the transaction, Sweetman Construction and all its employees will become part of Knife River Corp, an MDU subsidiary. Sweetman Construction is located in South Dakota and provides construction materials. It employs around 260 people.

Read more »


M&A Quarterly News In The Transport, Logistics and Supply Chain Industry Sector

By Peter Heydenrych | Mar 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q4 2018 included 43 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when SP Plus Corp acquired Baggage Airline Guest Services, Inc., trading as Bags, Inc., for US$275 million in cash. SP Plus Corp. provides professional parking, ground transportation, facility maintenance, security, event logistics and baggage handling and related services to commercial, institutional, municipal and aviation clients. Baggage Airline Guest Services engages in the provision of airline related delivery and logistic services. It serves hotels and resorts, group travel, malls, cruises and aviation. The company is headquartered Orlando, FL.

Read more »


M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Mar 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastic and Rubber sector for Q4 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when VisiPak, Inc., a subsidiary of Sinclair & Rush Inc, acquired Masterpac Corp for an undisclosed amount. The transaction allows VisiPak to enter into the medical packaging business and strengthen its product offerings in the consumer and industrial packaging market. Masterpac Corp is located in St. Louis, Missouri and manufactures thermoformed finished plastics products.

Read more »


M&A Quarterly News In The Metal Fabrication Industry Sector

By Jim Zipursky | Mar 19, 2019

The report below gives a good overview of the first quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q4 2018 included 27 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Premier Thermal Solutions LLC, a portfolio company of Z Capital Partners LLC, acquired Alfe Heat Treating, Inc. for an undisclosed amount. The acquisition would expand Premier Thermal Solutions’ ferrous and aluminum heat treating services. Alfe Heat Treating is located in Indiana and provides aluminum commercial heat treatment services.

Industry Indicators

  • US durable goods manufacturers’ shipments of fabricated metal products, an indicator of fabricated metal parts production, rose 9.4% year-to-date in October 2018 compared to the same period in 2017.
  • US steel mill product prices, an indicator of commodity steel costs for fabricated metal products manufacturers, rose 18.5% in December 2018 compared to the same month in 2017.

Posted by Jim Zipursky.

Read the Entire Metal Fabrication 1st Quarter Newsletter Here


M&A Quarterly News In The Food and Beverage Industry Sector

By Terry Fick | Mar 19, 2019

The report below gives a good overview of the first quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q4 2018 included 76 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when Kerry Group Plc acquired Fleischmann’s Vinegar Co., Inc. from Green Plains, Inc. for US$353.9 million in cash. Kerry Group engages in the manufacturing and distribution of food and beverages. Fleischmann’s Vinegar Co. manufactures and produces industrial vinegar and cooking wine. The company was founded in 2002 and is headquartered in Cerritos, CA.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 1.6% in January 2019 compared to the same month in 2018.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 1.3% year-to-date in November 2018 compared to the same period in 2017.
  • US retail sales for food and beverage stores, a potential measure of food demand, increased 3.4% in 2018 compared to 2017.
  • Total US wholesale sales of nondurable goods, a potential measure of food demand, rose 9.3% in October 2018 compared to the same period in 2017.

Posted by Terry Fick.

Read the Entire Food and Beverage 1st Quarter Newsletter Here


M&A Quarterly News In The Consumer Retail Industry Sector

By Joe Sands | Mar 19, 2019

The report below gives a good overview of the first quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q4 2018 included 224 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Caleres, Inc. acquired Vionic Group LLC, a portfolio company of Alpine Investors, for US$360 million in cash, subject to certain adjustments. The acquisition would expand Caleres’ brand portfolio in the footwear category. Vionic Group is located in San Rafael, California, and offers product development, research, marketing and distribution of footwear.

Read more »


M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Feb 27, 2019

The report below gives a good overview of the first quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q4 2018 included 28 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in December when New-Indy Catawba LLC, a subsidiary of New-Indy Containerboard LLC, itself a joint venture between Schwarz Partners LP and The Kraft Group LLC, acquired the business and assets related to the Paper & Pulp Mill division from Resolute FP US, Inc., a subsidiary of Resolute Forest Products, Inc. for US$260 million in cash and US$40 million in assumed liabilities, subject to customary closing adjustments. The acquisition would complement the containerboard manufacturing business of New-Indy Containerboard LLC. The assets and business related to the Paper & Pulp mill business of Resolute Forest Products Inc is located in Catawba, South Carolina.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, rose 10.3% in the third quarter of 2018 compared to the same period in 2017.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 1.3% year-to-date in October 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key cost factor in commercial printing operations, fell 19.7% in the week ending January 11, 2019, compared to the same week in 2018.

Posted by Jeff Wright.

Read the Entire Print and Packaging 1st Quarter Newsletter Here


M&A Quarterly News In The Business Services Industry Sector

By Brad Purifoy | Feb 27, 2019

The report below gives a good overview of the first quarter M&A activity in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q4 2018 included 667 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when Forrester Research, Inc. acquired SiriusDecisions, Inc., a portfolio company of JMI Management Inc., for US$245 million in cash, subject to certain adjustment. The acquisition enhances Forrester Research’s innovation strategy and technology services. Founded in 2001, SiriusDecisions is located in Wilton, Connecticut and provides business to business research and advisory services. It has around 340 employees.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for business services, rose 10.3% in the third quarter of 2018 compared to the same period in 2017.
  • The value of US nonresidential construction spending, a driver for business services demand, rose 5.2% year-to-date in October 2018 compared to the same period in 2017.
  • Total US revenue for administration and support and waste management and remediation services rose 7.2% in the third quarter of 2018 compared to the previous year.

Posted by Brad Purifoy.

Read the Entire Business Services 1st Quarter Newsletter Here


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