M&A Quarterly News In The Industrials Sector

M&A Quarterly News In The Industrials Sector

By Steve Hauser

August 16, 2019

The report below gives a good overview of the third quarter M&A activity in the Industrials Sector. M&A activity for North American – based target companies in the Industrials sector for Q2 2019 included 84 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in June when Archrock, Inc. agreed to acquire Elite Compression Services LLC from JDH Capital Co for US$416.2 million in cash and stock. Closing was expected in early August. As part of the acquisition, Archrock would obtain approximately 430,000 large-horsepower compression units. Elite Compression Services is headquartered in Victoria, Texas and provides contract midstream natural gas compression services, primarily in TX, OK, LA, and off-shore Gulf fields.

Industry Indicators

  • Total US manufacturers’ shipments, which indicate manufacturing sector activity, rose 2.4% year-to-date in May 2019 compared to the same period in 2018.
  • The spot price of crude oil, which indicates energy prices paid by manufacturers, fell 22.3% in the week ending July 5, 2019, compared to the same week in 2018.

Posted by Stephen Hauser.
Read the Entire Industrials 3rd Quarter Newsletter Here