Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Metal Fabrication Industry Sector

By Jim Zipursky | Feb 20, 2020

The report below gives a good overview of the first quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q4 2019 included 40 closed deals, according to data published by industry data tracker FactSet.

Kaman Aerospace Group, Inc., a subsidiary company of Kaman Corp, acquired Bal Seal Engineering, Inc. for US$330 million in cash, subject to customary adjustments for net debt and working capital. Kaman Aerospace Group manufactures aircraft components and aero structures. Bal Seal Engineering manufactures coil springs. The Company offers sealing, connecting, conducting, electromagnetic interference shielding, and grounding components.

Industry Indicators

  • US durable goods manufacturers’ shipments of fabricated metal products, an indicator of demand for metal coating, engraving, and heat treatments, rose 3.3% year-to-date in October 2019 compared to the same period in 2018.
  • US steel mill product prices, which impacts demand for metal coating, engraving, and heat-treating services, fell 15.1% in November 2019 compared to the same month in 2018.
  • Total US wholesale sales of durable goods, a potential measure of aluminum demand, fell 1.6% in October 2019 compared to the same period in 2018.

Posted by Jim Zipursky.

Read the Entire Metal Fabrication 1st Quarter Newsletter Here

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