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FirmoGraphs North American Merger and Acquisition (M&A) Report, April 2020

By FirmoGraphs Staff

Dear Readers

We are pleased to share FirmoGraphs' North American Merger and Acquisition (M&A) Report for the month of April.

FirmoGraphs recorded a slightly lower level of activity in April, with 54 completed transactions related to the North American market in 10 different industries.

Once again, healthcare leads the pack with 15 completed transactions. 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).

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).

Graphics2 May 8 2020

Utilities

There were ten completed transactions in the utility industry last month. In the telecommunications sub-industry, we witnessed the completion of a $23 billion merger between T-Mobile US and Sprint. Also, the water/wastewater segment saw some action when American Water regional companies expanded their presence in their respective states. 

Oil Industry

Six transactions were completed in the oil industry this month. The biggest one was PowerTeam Services’ acquisition of Miller Pipeline and Minnesota Limited for $850 million. Although the low oil price will significantly impact future deals, BP and Hilcorp announced they would proceed with their $5.6 billion deal.

Engineered Products

April was not a high-performing month for engineered products.  FirmoGraphs recorded only eight (8) finalized deals last month. However, there is one significant transaction, and that was Novelis’ acquisition of Aleris Corporation for $2.8 billion.

Healthcare

As mentioned earlier, healthcare was the most active industry in April with 15 completed transactions. The two most noteworthy were: 1) Gilead Sciences’ acquisition of Forty Seven, Inc. for $4.9 billion, and UCB’s (Union Chimique Belge) acquisition of Ra Pharmaceuticals in a deal worth $2.3 billion. It is worth mentioning that the global COVID-19 pandemic is heavily impacting the M&A activity in this industry. This month, FirmoGraphs recorded three major canceled healthcare deals:  (1) Tarveda Therapeutics, Inc, and Organovo Holdings, Inc.; (2) Johnson & Johnson and Takeda Pharmaceutical; (3) and Alphatec Holdings, Inc and EOS Imaging, SA.

Other industries

Among other industries, aerospace was particularly interesting. The biggest deal occurred when United Technologies and Raytheon Technologies Corporation announced the completion of their $121 billion merger, creating the new aerospace giant. Although a huge merger occurred, this industry did not escape the wrath of the COVID-19 pandemic in the month of April. The cancelation of a $6.4 billion merger between Hexcel and Woodward, and Boeing’s abandonment of its $4.2 billion deal with Embraer dealt huge blows to all involved.

It should also be noted that Stone Canyon completed the acquisition of Kissner Group for $2 billion.

Largest Transactions

Three Biggest Transactions in April by Deal Value

Table April 2020

Announced Future Deals

In addition to completed transactions, FirmoGraphs recorded only 10 announced future deals, without major announcements. This is another consequence of the global pandemic.

M & A Cartoon

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Image Source: The Cagle Post

Conclusion

Conclusion August-min

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.

Having a good understanding of customer M&A activities can be key to the health of your business. Click here to learn more.

Wish to learn more about applying BI to your approach in the North American merger and acquisition tracking in the US utility? Please click here.

Click below to download our e-Book on 5 Critical Actions for an insight-driven marketing using Business Intelligence. 

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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. 

Any information contained on this website or within any attachments is offered without representation or warranty as to its accuracy or completeness and FirmoGraphs, LLC cannot be held responsible for loss or damage caused by errors, omission, misprints or your misinterpretation of such information. Seek competent professional advice prior to relying on or utilizing such information in any manner as any such use is at your own risk.

Tags: mergers, acquisitions, M&A, m&a activity, acquisition trends, m&a trends, merger and acquisition activity 2019, merger and acquisition activity 2020