The report below gives a good overview of the third quarter M&A activity in the Industrials Industry Sector. M&A activity for North American based target companies in the Industrials sector for Q2 2017 included 116 closed deals, according to data published by industry data tracker FactSet.
One of the largest middle market deals of the quarter was announced in April when A private group led by the Dutil family, Marcel Dutil’s holding company, Placements CMI Inc., and AIP LLC acquired Canam Group, Inc. for CAD557.9 million (US$411.5 million) in cash. Canam Group is located in Saint Georges, Québec, Canada and provides fabricated steel joists and construction components, semi-trailers and forestry equipment. As with the stock market as a whole, the Industrials sector has grown more than 8.2% since the start of 2017. Growth has, in part, been driven by a renewed focus on manufacturing in the U.S.
- The average US retail price for diesel and regular gas, a major operating cost for industrial supply distributor fleets, rose 2.8% and 2%, respectively, in the week ending July 10, 2017, compared to the same week in 2016.
- Total US manufacturers’ shipments, an indicator of demand for industrial supplies used in manufacturing operations, rose 4.6% year-to-date in May 2017 compared to the same period in 2016.
- Total US wholesale sales of durable goods, a potential measure of industrial supply demand, rose 10.7% in May 2017 compared to the same period in 2016.
Posted by John Hammett.