Here’s our M&A report for the month of March. We look forward to your feedback about this blog, in the form of your comments.
FirmoGraphs recorded 61 completed transactions related to the North American market in 12 different industries.
This number would be significantly higher in normal conditions. However, it is clear that the COVID-19 pandemic slowed down the M&A activity, which is why we only have just over 60 completed deals in March.
With 16 completed transactions, the engineered product industry was the most active. 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).
There were 13 completed transactions in the utility industry last month. The most significant was the completion of the $2.63 billion deal between Canada Pension Plan Investment Board and Pattern Energy Group. It should also be noted that Cincinnati Bell canceled the deal with Brookfield Infrastructure and signed a new $2.9 billion deal with Macquarie Infrastructure Partners.
There were three (3) transactions completed in the oil industry in March. The acquisition of Felix Energy by WPX Energy for $2.5 billion stood out the most in terms of dollars spent, followed by the acquisition of ILX Holdings, Castex Energy and Venari Resources by Talos Energy Inc. for $547 million, and rounding out the list is Basic Energy Services, Inc.’s purchase of NexTier for $94 million.
With 16 completed transactions, this industry was the most active in March. Three transactions stand out in terms of value: Gardner Denver and Ingersoll Rand Industrial Segment finalized a $1.9 billion merger, Signify N.V. bought Eaton’s lighting business for $1.4 billion, and last but not the least, Cleveland-Cliffs acquired AK Steel in a deal worth $1.1 billion.
FirmoGraphs recorded 10 completed deals in the healthcare industry in March. The biggest completed transaction by far was Danaher’s purchase of GE’s BioPharma business for $21.4 billion, which was the biggest deal in March, across all industries.
In other industries, it is worth mentioning that a logistics-related transaction resulting from e-commerce’s rapid development took place. Costco Wholesale Corp purchased the logistics firm, Innovel Solutions for $1 billion.
Announced Future Deals
In addition to completed transactions, FirmoGraphs recorded around 20 announced future deals. Some of those are expected to be very significant after they’re concluded and are listed below:
- Thermo Fisher’s acquisition of Qiagen in, an $11.5 billion deal;
- Gilead Sciences’ planned acquisition of Forty Seven for $4.9 billion;
- A merger between Nikola Corporation and VectoIQ Acquisition Corp. worth $3.3 billion.
The healthcare industry is definitely continuing to have a strong pace when it comes to huge deals in 2020, both completed and announced.
M & A Cartoon
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.
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