The report below gives a good overview of the second 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 Q1 2018 included 81 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in March when TopBuild Corp acquired USI, Inc., formerly known as United Subcontractors, Inc., a portfolio company of Reinet Investments Manager SA and Trilantic Capital Management LP, for US$475 million in cash. Founded in 1998, USI is located in St. Paul, Minnesota and engages in the installation of residential and commercial products. It generated revenues of approximately US$375 million for the year ended 2017.TopBuild Corp. is an installer and distributor of insulation products.
Housing starts continued on an upward curve in the first quarter as the economy remains strong.
- US corporate profits, an indicator of corporate demand for construction services, rose 2.7% in the fourth quarter of 2017 compared to the same period in 2016.
- The value of US nonresidential construction spending, a demand indicator for builders, rose 3.8% year-to-date in March 2018 compared to the same period in 2017.
- US steel mill product prices, an indicator of commodity steel product costs used in construction, rose 7.4% in April 2018 compared to the same month in 2017.
Posted by Peter Heydenrych.