Dear Readers
Here’s our M&A report for the month of January 2020. We’ll look forward to your valuable feedback related to the blog.
FirmoGraphs recorded a similar level of activity in January compared to the last months of 2019, with 71 completed transactions related to the North American market in 11 different industries.
The two most active industries were engineered products and healthcare, with 19 and 15 completed transactions, respectively. 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
There were seven completed transactions in the utility industry in January. Among these transactions, there weren’t significant deals in terms of value. However, it should be noted that most of the activity in utilities was related to renewables.
Oil & Gas Industry
In total, seven transactions were completed in January. Two deals were particularly significant. Parsley Energy completed the acquisition of Jagged Peak Energy in a transaction worth $2.27 billion. Also, PDC Energy and SRC Energy completed their $1.656 billion worth merger.
Engineered Products
Although the engineered products industry was the most active in January, there weren’t any significant transactions in terms of size. The biggest transaction was Arcosa’s purchase of Cherry Industries for $298 million.
Healthcare
With 15 completed deals, healthcare was the second most active industry in the first month of 2020. Also, the three biggest transactions in January occurred in healthcare. Astellas Pharma completed the acquisition of Audentes Therapeutics for $3.0 billion. Merck purchased ArQule in a transaction worth $2.7 billion, and Sanofi acquired Synthorx for $2.5 billion.
Other industries
Among other industries, there was only one significant transaction completed in January. Indorama Ventures bought chemical intermediates and surfactant businesses from Huntsman Corporation for $2.0 billion.
Largest Transactions in January
Announced Future Deals
In addition to completed transactions, FirmoGraphs recorded 35 announced future deals just in the month of January. Some of those are expected to be very significant after they’re concluded and are listed below:
- Hexcel and Woodward announced $6.4 billion worth merger;
- WESCO will acquire Anixter for $4.5 billion;
- Danfoss announced the acquisition of Eaton's Hydraulics business for $3.3 billion.
The new year started at a solid pace, with many big deals on the way to be completed in 2020.
M & A Humor
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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