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).
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.
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.
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.
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.
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.
Three Biggest Transactions in April by Deal Value
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
Image Source: The Cagle Post
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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