The report below gives a good overview of the fourth quarter M&A activity in the Industrials Sector. M&A activity for North American based target companies in the Industrials sector for Q3 2019 included 141 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions in the sector was announced in September when Alamo Group, Inc. (NYSE: “ALG”), with yearly revenues exceeding $1.0 billion, and a history of 25+ acquisitions of mobile equipment businesses, acquired Morbark LLC, a portfolio company of Stellex Capital Management LP, for US$352 million in cash, subject to certain post-closing adjustments. Founded in 1957, Morbark is located in Winn, Michigan and manufactures equipment for the forestry, recycling, sawmill and biomass industries. It has approximately 720 employees and has generated total sales of US$225 million in during 2018.
- Total US manufacturers’ shipments, which indicate manufacturing sector activity, rose 1.4% year-to-date in August 2019 compared to the same period in 2018.
- The spot price of crude oil, which indicates energy prices paid by manufacturers, fell 27.0% in the week ending October 11, 2019, compared to the same week in 2018.