Exit and Growth Strategies for Middle Market Businesses

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

By Peter Heydenrych | Jun 26, 2019

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 2019 included 83 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in February when Authority Brands, LLC, a portfolio company of Apax Partners (UK) Ltd, acquired Clockwork IP, LLC, a subsidiary of Direct Energy Services, LLC, ultimately owned by Centrica Plc, for US$300 million. Founded in 1999, Clockwork IP is located in Houston, Texas and provides residential heating and cooling, electrical and plumbing services.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for construction services, rose 7.4% in the fourth quarter of 2018 compared to the same period in 2017.
  • The value of US nonresidential construction spending, a demand indicator for heavy construction, rose 4.3% year-to-date in February 2019 compared to the same period in 2018.
  • US steel mill product prices, an indicator of commodity steel product costs used in construction, rose 10.3% in March 2019 compared to the same month in 2018.

Posted by Peter Heydenrych.

Read the Entire Engineering and Construction 2nd Quarter Newsletter Here

Leave a Comment