Dear Readers,
Here’s our M&A report for the month of August. We’ll look forward to your feedback about this blog, in the form of your comments.
In September, FirmoGraphs recorded 93 completed transactions related to the North American market in 14 different industries.
The engineered products industry was by far the most active with 23 completed transactions, followed by industrial services with fifteen transactions.
As always, our focus is on operationally-intensive industries that are of interest to our clients (utilities and manufacturing, especially) rather than less asset-intensive markets such as retail and banking.
Utilities
FirmoGraphs recorded nine completed transactions in the utilities industry. Duke Energy continued its increased activity in the last several months with two operations. Firstly, it sold a minority interest in a portion of its commercial renewable energy portfolio to John Hancock Infrastructure Fund and John Hancock Life Insurance Company for $415 million. It also purchased 200-MWac Texas solar project from Recurrent Energy. In general, renewables were at the center of the September utility M&A market with nine completed transactions.
Oil Industry
The oil industry, for its part, completed five transactions, with the most important being Harbour Energy’s $2.675 billion acquisition of ConocoPhillips’ foreign oil and gas business.
Engineered Products
The engineered products industry was once again the most active industry with 23 transactions. The most notable deal was Parker Hannifin’s acquisition of Exotic Metals Forming for $1.725 billion.
Healthcare
The healthcare industry was not as active in September, with only 12 completed transactions. That doesn’t mean, however, that there was a lack of exciting market events. Roche and Spark Therapeutics extended Roche’s offer twice in September due to the ongoing regulatory reviews of this $4.3 billion transaction. The decision to allow the $78 billion merger between CVS and Aetna after almost a year of agony, was another highlight of this industry.
Other industries
There were also other significant transactions across different industries in September, with two standing out. Blackstone expanded its presence in logistics by acquiring U.S. Logistics assets for $18.7 billion from GLP. Similarly, KPS Capital Partners purchased Air & Gas Handling business from Colfax for $1.8 billion.
Largest Transactions
Announced Future Deals
In addition to completed transactions, FirmoGraphs recorded over 40 announced future deals. Some of those are expected to be significant after they’re finished. We list these potential future deals below.
- Blackstone’s purchase of U.S. industrial warehouses from Colony Capital for $5.9 billion;
- Energy Transfer’s $5.0 billion worth acquisition of SemGroup; and
- The $4.5 billion worth acquisition of Exxon’s oil and gas assets abroad.
It looks like Blackstone is continuing its expansion in logistics as a result of the significant growth of e-commerce markets. On the other hand, the oil and gas industry is expected to see substantial growth of high-profile transactions in the future.
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
None of the information we provide may be taken as legal advice. Please consult an attorney if you require a legal interpretation of this information.
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