The report below gives a good overview of the third 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 Q2 2019 included 113 closed deals, according to data published by industry data tracker FactSet.
FirstService Corp acquired a 95% majority stake in Global Restoration Holdings LLC, a portfolio company of Delos Capital LLC, for US$505 million in cash. The acquisition would funded through FirstService Corp’s cash on hand, new term loan and credit facility. The transaction also includes Interstate Restoration Group, Inc. and FirstOnSite Restoration LP. The acquisition would expand FirstService Corp’s scale and capabilities in the property restoration sector and further complements its existing Paul Davis Restoration franchised and company owned operations. Founded in1998, Global Restoration Holdings is located in Texas and functions as an investment company whose subsidiaries engage in disaster restoration, reconstruction and renovation services.
- US corporate profits, an indicator of corporate demand for construction services, rose 3.1% in the first quarter of 2019 compared to the same period in 2018.
- The value of US nonresidential construction spending, a demand indicator for heavy construction, rose 5.0% year-to-date in June 2019 compared to the same period in 2018.
- US steel mill product prices, an indicator of commodity steel product costs used in construction, fell 7.5% in July 2019 compared to the same month in 2018.
Posted by Peter Heydenrych.
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