The report below gives a good overview of the second quarter M&A activity in the Industrials Industry Sector. M&A activity for North American based target companies in the Industrials sector for Q1 2019 included 503 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in February when The Toro Co. acquired Charles Machine Works, Inc. for US$700 million in cash. The acquisition includes Ditch Witch and several other brands within the underground construction market. Funding for the transaction was provided through Toro Co’s existing credit facility provided by JP Morgan and Merrill, Lynch, Pierce, Fenner & Smith. The acquisition would allow The Toro Co to further enhance its existing business portfolio of brands within the industry.
Industry Indicators
- Total US manufacturers’ shipments, which indicate manufacturing sector activity, rose 3.0% year-to-date in February 2019 compared to the same period in 2018.
- The spot price of crude oil, an indicator of energy prices paid by manufacturers, fell 2.9% in the week ending April 12, 2019, compared to the same week in 2018.
Posted by Stephen Hauser.