Hello Everyone!
We’re back with our latest M&A monthly report for the North American M&A trend watchers!
May was not as active as previous months but that doesn’t mean May was less interesting. FirmoGraphs recorded 76 completed transactions related to the North American market in 14 different industries.
The engineered products industry was the most active industry, followed by the healthcare industry.
As always, our focus is on those operationally-intensive industries that are of interest to our clients (utilities, manufacturing) rather than less asset-intensive markets (retail, banking).
Utilities
FirmoGraphs recorded nine completed transactions in the utilities industry. OG&E bought Shady Point plant near Poteau, Oklahoma, and the Oklahoma Cogeneration plant in Oklahoma City for $53 million, while Sempra Energy expanded its network with the acquisition of Sharyland Utilities.
It is worth mentioning that SJW Group and Connecticut Water Service continued with their efforts to complete their $1.1 billion worth merger, by filing a new application for its approval.
Oil Industry
In May, there were four completed transactions in the oil industry. The biggest transaction was Chevron’s purchase of Pasadena Refining System (owned by Petrobras) for $350 million.
Also, Chevron walked away from a $33 billion deal to buy Anadarko, when Anadarko favored Occidental’s $38 billion bid. The transaction will be completed in the following months.
Mining Industry
Only three transactions were completed in the mining industry in May, this year. The most significant one was Cobalt 27 Capital’s acquisition of Highlands Pacific for $70 million.
Engineered Products
With 18 completed transactions, the engineered products industry was the most active industry in May. The most significant transaction was ITT’s $90 million worth acquisition of Rheinhütte Pumpen Group. Meanwhile, the $5.25 billion merger between Amcor and Bemis has been moving in the right direction.
Healthcare
Healthcare was the second most active industry in May with 16 completed transactions. The largest deals of the month occurred in this industry. Here’s the list:
a) Thermo Fisher’s acquisition of Brammer Bio for $1.7 billion
b) Novartis’ acquisition of IFM Tre for $1.575 billion
c) Catalent’s purchase of Paragon Bioservices for $1.2 billion.
It should be noted that $4.3 billion merger between Roche and Spark Therapeutics was pushed back again due to delayed regulatory review.
Other industries
In contrast to most of the previous months, there wasn’t any billion dollars transaction in other industries. The most significant transaction was INEOS’ purchase of The National Titanium Dioxide Company from Tronox for $700 million.
Largest Transactions
Announced Future Deals
In addition to completed transactions, FirmoGraphs recorded almost 60 announced future deals. Some of those, are expected to be very significant after they’re completed and are listed below:
- IFM Investors’ $10.3 billion worth acquisition of Buckeye Partners.
- $9 billion worth merger between Marathon Petroleum and Andeavor Logistics
- 3M’s acquisition of Acelity and its KCI subsidiaries for $6.725 billion.
Conclusion
FirmoGraphs watches North American industrial news and curates a normalized version of monthly merger and acquisition information. This way, you can leverage the Merger Mart along with others (such as Power, Water) to generate your own unique observations for the US industrial market.
Our favored BI solution, Qlik Sense™ Enterprise, makes mashing-up multiple data sets fun and easy. Our customers find new opportunities to grow revenue, and reduce risk, by combining the Merger Mart with their own proprietary CRM and market data.
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Disclaimer
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