PITTSBURGH REGIONAL M&A REPORT: 1H18
Merger & Acquisition Corporate Finance Advisory Strategic Consulting
400 Southpointe Boulevard, Plaza I, Suite 440 Canonsburg, PA 15317 • Tel. 724-743-5800 Fax 724-743-5870 • www.strategicad.com
Securities and investment advisory services are offered through BPU Investment Management, Inc. 301 Grant Street, Suite 3300 / Pittsburgh, PA 15219 Telephone: 412-288-9150 / Website: www.bpuinvestments.com Member FINRA/SIPC, and an SEC-registered investment advisor
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Another Strong Six Months: Volume Stable
Quarterly regional M&A volume decreased by 7% to Number of Transactions 78 transactions in the second quarter of 2018. The number of regional M&A transactions in the first half 100 of 2018 stayed in line with first half of 2017 (162 90 12 transactions in first half 2018 compared to 161 80 7 4 8 6 7 transaction in first half 2017). The figure has 70 8 7 fluctuated in 2017 and 2018 to date but remains 60 strong compared to historical levels. This trend is in 50 line with the national M&A volume which is decreasing 40 80 79 79 78 78 70 71 slightly. Changes in federal tax regulations, the large 30 67 amount of PE dry powder, and availability of relatively 20 cheap debt financing continued impacting the industry 10 in 2018. 0 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Strategic buyers completed 93% of all regional transactions in the first half of 2018, 1% higher than Strategic Financial in 2017.
In the first half of 2018, regional M&A activity was primarily concentrated in the following sectors: Industrials (32%), Materials (17%), Financials (11%), Consumer Discretionary (10%), and Information Technology (10%).
Compared to the first half of 2017 the number of transactions by sector remained fairly stable: industrials stable, materials up from 13% to 17%, financials down from 13% to 11%, consumer discretionary down from 14% to 10%, information technology stable, energy up from 4% to 8%, and healthcare stable.
PITTSBURGH REGIONAL 2nd QUARTER 2018 M&A TRANSACTIONS
Close Target Location Buyer Buyer Type Location Primary Sector EV* Primary Industry 6/29/2018Hallett Associates Inc Pittsburgh Area (Primary) Findley, Inc. Strategic Ohio Industrials - Human Resource and Employment Services Thermal Energy International Inc. 6/29/2018Source Boilerroom Testing Equipment, Group OfInc. Burns & McDonnell, Greensburg Area (Primary) (TSXV:TMG) Strategic Canada Industrials 3 Industrial Machinery 6/28/2018 Inc. Kansas City Civil & Environmental Consultants, Inc. Strategic Pittsburgh Area (Primary) Industrials - Environmental and Facilities Services 6/27/2018Revolution Dancewear LLC Illinois Audax Group, Inc. Financial Pittsburgh Area (Primary) Consumer Discretionary - Apparel, Accessories and Luxury Goods 6/25/2018Ohio Institute of Real Estate Studies, LLC Akron Area (Primary) Hondros College Strategic Ohio Consumer Discretionary - Education Services 6/19/2018Corporate Armor, Inc. North Carolina Temprano Techvestors, Inc. Strategic North Carolina Information Technology - Technology Distributors 6/18/2018VERSATEX Building Products, LLC Pittsburgh Area (Primary) The AZEK Company LLC Strategic Illinois Industrials - Building Products 6/15/2018Gasko Fabricated Products Co. Akron Area (Primary) Universal Polymer & Rubber Ltd. Strategic Ohio Materials - Commodity Chemicals 6/15/2018Applications2U, LLC New Castle Area (Primary) Accscient LLC Strategic Georgia Information Technology - IT Consulting and Other Services 6/15/2018Telerecord Srl Italy NEP Group, Inc. Strategic Pittsburgh Area (Primary) Consumer Discretionary - Movies and Entertainment 6/15/2018Circle Bolt & Nut Co Kingston, PA Optimas OE Solutions Holdings Strategic Illinois Industrials 0 Trading companies and distributors 6/14/2018 Center For Fiduciary Management, LLC Pittsburgh Area (Primary) Fiduciary360, LP Strategic Pittsburgh Area (Primary) Information Technology - Application Software 6/11/2018 Kratos Public Safety & Security Solutions, Inc. California Securitas Electronic Security Inc. Strategic Canton Area (Primary) Industrials 69 Security and Alarm Services 6/7/2018Pacon Corporation Wisconsin Dixon Ticonderoga Company Strategic New York Materials 325 Paper Products 6/4/2018RedZone Robotics, Inc. Pittsburgh Area (Primary) Milestone Partners Financial Radnor, Pennsylvania Information Technology - Electronic Equipment and Instruments 6/1/2018Legacy Marketing, Inc. Florida Structured Innovations, Ltd. Strategic Akron Area (Primary) Information Technology - Technology Distributors 6/1/2018Superior Roll Forming Company, Inc. Akron Area (Primary) Welser Profile GmbH Strategic Austria Materials - Diversified Metals and Mining Assets of Hunterstown CCGT Facility And 6/1/2018 Related TETCO Contracts Pennsylvania Platinum Equity, LLC; AOS Energy Partners Financial California Utilities 520 Electric Utilities
Close Target Location Buyer Buyer Type Location Primary Sector EV* Primary Industry 5/31/2018Bearings Business of John Crane Inc. Illinois Miba Bearings US, LLC Strategic Zanesville Area (Primary) Industrials 35 Industrial Machinery 5/29/2018OTC National, LLC Pittsburgh Area (Primary) HomeBay, Inc. Strategic California Real Estate - Real Estate Services 5/24/2018Chartlytics, LLC Altoona Area (Primary) CentralReach, LLC Strategic Florida Information Technology - Home Entertainment Software Whitfield Clinic Limited/UPMC Whitfield Cancer 5/24/2018 Centre Pittsburgh Area (Primary) University of Pittsburgh Medical Center Strategic Pittsburgh Area (Primary) Healthcare - Healthcare Facilities Olympus Gathering System and 75% stake in Strike Force Gathering System of EQT 5/22/2018 Corporation Ohio EQM Gathering Holdings, LLC Strategic Pittsburgh Area (Primary) Energy 1516.55 Oil and Gas Storage and Transportation 5/21/2018Southpointe CEO Association Pennsylvania Washington County Chamber Of Commerce Strategic Pittsburgh Area (Primary) Industrials - Research & Consulting Services 5/18/2018Boston Hospitality Group, Inc. Clarksburg Area (Primary) Emily Holdings LLC Strategic Texas Consumer Discretionary - Restaurant 5/17/2018Substantially All Assets of Blue Mountain Inc. West Virginia The Thrasher Group Strategic Clarksburg Area (Primary) Industrials - Construction and Engineering 5/17/2018YOOX Net-A-Porter Group S.p.A. Pennsylvania Richemont Italia Holding Spa Strategic Italy Consumer Discretionary 6411.65 Internet and Direct Marketing Retail 5/15/2018Assets of Ohio Diesel Fleet Supply, Inc. Ohio FleetPride, Inc. Strategic Texas Industrials - Trading Companies and Distributors 5/14/2018 Business Assets of Schuh Transport, Inc. Wisconsin The Kenan Advantage Group, Inc. Strategic Canton Area (Primary) Energy - Oil and Gas Storage and Transportation 5/14/2018Ainsworth Pet Nutrition Parent, LLC Oil City Area (Primary)Harrison NU Pet Company Street Real Estate Capital, LLC; Strategic Ohio Consumer Staples 1900 Packaged Foods and Meats 5/11/2018 Brottier Hall of Duquesne University in Pittsburgh Pittsburgh Area (Primary) Radnor Property Group LLC Financial Pennsylvania Real Estate 23 Real Estate Operating Companies 5/10/2018Smart Kidz Books Tennessee Whitaker Corporation Strategic Pittsburgh Area (Primary) Consumer Discretionary - Publishing 5/9/2018 Colliers International Pittsburgh Pittsburgh Area (Primary) Colliers International Group Inc. (TSX:CIGI) Strategic Pittsburgh Area (Primary) Real Estate - Real Estate Services 5/9/2018A J Amer Agency Inc. Akron Area (Primary) Arthur J. Gallagher & Co. (NYSE:AJG) Strategic Illinois Financials - Property and Casualty Insurance 5/8/2018G & S Foods, Inc. Abbottstown, PA MAW Acquisitions LP Financial Pennsylvania Consumer Staples 0 Packaged Foods and Meats Certain Assets of Popple Construction, Inc. and 5/4/2018 Pioneer Aggregates, Inc. Pennsylvania New Enterprise Stone & Lime Co., Inc. Strategic Altoona Area (Primary) Materials 22.3 Construction Materials 5/3/2018Select International, Inc. Pittsburgh Area (Primary) PSI Services LLC Strategic Pittsburgh Area (Primary) Information Technology - Application Software 5/3/2018 Transportation Assets of Young's Energy Service Pennsylvania Greentree Environmental, Inc. Strategic Pittsburgh Area (Primary) Energy - Oil and Gas Storage and Transportation 5/3/2018CommitDBA Ohio Remote DBA Experts, LLC Strategic Pittsburgh Area (Primary) Information Technology - Data Processing and Outsourced Services Undeveloped Marcellus and Utica Acreage in 5/2/2018 Southwest Pennsylvania Pennsylvania HG Energy II Appalachia, LLC Strategic West Virginia Energy 7.37 Oil and Gas Exploration and Production 5/2/2018Optis SAS France ANSYS, Inc. (NasdaqGS:ANSS) Strategic Pittsburgh Area (Primary) Information Technology 300 Application Software First Commonwealth Financial Corporation 5/1/2018Foundation Bancorp, Inc. Ohio (NYSE:FCF) Strategic Johnstown Area (Primary) Financials - Thrifts and Mortgage Finance
Close Target Location Buyer Buyer Type Location Primary Sector EV* Primary Industry CB Financial Services, Inc. 4/30/2018 First West Virginia Bancorp, Inc. Wheeling Area (Primary) (NasdaqGM:CBFV) Strategic Pittsburgh Area (Primary) Financials - Regional Banks Customers and Storefront in Gettysburg, 4/27/2018 Pennsylvania of Roaring Spring Water Pennsylvania Nestlé Waters North America Inc. Strategic Connecticut Consumer Staples - Food Retail 4/24/2018Mintek Resources, Inc. Ohio O-N Minerals (Chemstone) Company Strategic Pittsburgh Area (Primary) Materials - Construction Materials 4/20/2018Assets of NoPileups, LLC Idaho DRB Systems, Inc. Strategic Akron Area (Primary) Information Technology - Electronic Equipment and Instruments 4/19/2018Centrex Plastics Ohio American Plastics Strategic Missouri Industrials 0 Commodity Chemicals 4/19/2018Creative Plastic Concepts Ohio American Plastics Strategic Missouri Industrials 0 Commodity Chemicals 4/18/2018Remote DBA Experts, LLC Pittsburgh Area (Primary) Madison Dearborn Partners, LLC Financial Illinois Information Technology - Data Processing and Outsourced Services Waterfall Line for Corvettes of Scorpion 4/17/2018 Fiberglass Creations Nevada RPI Designs, LLC Strategic Youngstown Area (Primary)Consumer Discretionary - Auto Parts and Equipment 4/17/2018Nakidparts.com Youngstown Area (Primary) RPI Designs, LLC Strategic Youngstown Area (Primary)Consumer Discretionary - Internet and Direct Marketing Retail 4/16/2018Sun Energy Services, LLC New Castle Area (Primary) White Deer Energy Financial Louisiana Energy - Oil and Gas Equipment and Services 4/16/2018James Austin Company New Castle Area (Primary) KIK Custom Products Inc. Strategic Canada Consumer Staples - Household Products 4/16/2018The Grimes Companies, Inc. Florida Peoples Services, Inc. Strategic Canton Area (Primary) Industrials - Diversified Support Services 4/16/2018NZ Live Ltd New Zealand NEP Group, Inc. Strategic Pittsburgh Area (Primary) Consumer Discretionary - Movies and Entertainment 4/12/2018OnHand Schools, Inc. Pittsburgh Area (Primary) Harris School Solutions Strategic Pennsylvania Information Technology - Internet Software and Services 4/12/2018Abbott & Cobb, Inc. Pennsylvania Syngenta Corporation Strategic Delaware Commercial and Professional Services0 Agricultural Products 4/10/2018Utility and Industrial Products unit of Koppers Pittsburgh Area (Primary) Koppers Inc. Strategic Pittsburgh Area (Primary) Materials 200 Forest Products NobleTek B.V. and NobleTek PLM Solutions Pvt. 4/10/2018 Ltd. Netherlands Processia Solutions Ltd. Strategic Canada Industrials - Research and Consulting Services Global Development And Marketing Rights Of 4/10/2018 Meloxicam From Prayog Labs LLC India Mylan N.V. (NasdaqGS:MYL) Strategic Pittsburgh Area (Primary) Healthcare - Pharmaceuticals 4/9/2018Radcliffe & Co. New Castle Area (Primary) Actionable Insights, LLC Strategic New Castle Area (Primary) Consumer Discretionary - Advertising 4/9/2018Evoqua Water Technologies Srl Pennsylvania GIOTTO WATER S.r.l. Strategic Italy Industrials 0 Industrial Machinery 4/6/2018Prolube, Inc. North Carolina PetroChoice Holdings, Inc. Strategic Altoona Area (Primary) Consumer Discretionary - Automotive Retail Fixed Income & Equity Business of Columbia Tristate Capital Holdings, Inc. 4/6/2018 Partners, L.L.C. Investment Management Washington, DC (NasdaqGS:TSC) Strategic Pittsburgh Area (Primary) Financials - Asset Management and Custody Banks 4/5/2018First Sentry Bancshares, Inc. West Virginia WesBanco, Inc. (NasdaqGS:WSBC) Strategic Wheeling Area (Primary) Financials - Regional Banks 4/4/2018 Pittsburgh East Nissan and West Hills Nissan Pittsburgh Area (Primary) #1 Cochran, Inc. Strategic Pittsburgh Area (Primary) Consumer Discretionary - Automotive Retail 4/4/2018CardiacAssist, Inc. Pittsburgh Area (Primary) LivaNova PLC (NasdaqGS:LIVN) Strategic Europe Healthcare 250 Healthcare Equipment 4/3/2018Temple Turmeric, Inc. New York Dunn's River Brands, LLC Strategic Pittsburgh Area (Primary) Consumer Staples - Soft Drinks Dassault Systèmes Software Sales and Support Business Division of Noble Technologies 4/3/2018 Corporation Ohio Adaptive Corporation Strategic Akron Area (Primary) Information Technology - Technology Distributors 4/3/2018WARDJet Inc. Akron Area (Primary) AXYZ International Inc. Strategic Canada Industrials - Industrial Machinery 4/3/2018Copa Tool, Inc. Michigan Ramco Specialties, Inc. Strategic Akron Area (Primary) Consumer Discretionary - Auto Parts and Equipment Certain Producing Gas and Oil Assets in the 4/3/2018 Appalachian Basin of CNX Gas & Oil PLC Pennsylvania Diversified Gas & Oil PLC (AIM:DGOC) Strategic Alabama Energy 85 Oil and Gas Exploration and Production 4/2/2018Kisner Law Firm, LLC Pittsburgh Area (Primary) Leech Tishman Fuscaldo & Lampl, LLC Strategic Pittsburgh Area (Primary) Industrials - Research and Consulting Services GlaxoSmithKline plc, Consumer Healthcare 4/2/2018 Manufacturing Facility in Aiken, South Carolina South Carolina Avara Pharmaceutical Services, Inc. Strategic Altoona Area (Primary) Healthcare - Pharmaceuticals 4/2/2018Berlin Metals LLC Indiana Olympic Steel, Inc. Strategic Ohio Industrials 0 Trading companies and distributors a - Announced Date; * - EV is Enterprise Value Transaction Requirements: Either buyer, buyer parent, target or seller must be local, and the local participant must have purchased or sold majority control. Excludes real estate & facility sales. Sorted by Close Date.
About Strategic Advisors Strategic Advisors is a middle market investment-banking firm that helps clients achieve financial and business goals by providing merger and acquisition advisory, corporate finance advisory and strategic consulting services. Along with many years of experience in advising middle market clients, our Managing Directors have experience investing in and managing portfolio companies. As a result, Strategic Advisors not only has expertise in advisory services but also firsthand knowledge of what stakeholders, investors, and lenders expect and desire. considering a sale of your business, the acquisition of a business, or the restructuring or recapitalization of your balance sheet, the best pathway for achieving your expectations is a well-run process that addresses all your business and personal goals. Strategic Advisors is accustomed to working with business owners to determine the best pathway to achieve their goals and objectives. Give us a call to discuss your possibilities.
Strategic Advisors works with clients across numerous industries. Selected recent transactions include:
Author: Viktoriia Koshelieva, Investment Banking MBA Intern
Sources: S&P Capital IQ
Important Information: Securities and investment advisory services are offered through BPU Investment Management, Inc. 301 Grant Street, Suite 3300 Pittsburgh PA 15219 412-288-9150 www.bpuinvestments.com Member FINRA/SIPC An SEC-Registered Investment Advisor
Please be advised that the accuracy and completeness of this information are not guaranteed. The opinions expressed are those of the author(s) and are not necessarily those of Strategic Advisors or BPU Investment Management, Inc.
The material is distributed solely for informational purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.
For more information, please contact any of the professionals listed below or visit our website at: www.strategicad.com
Name Title Email Phone Andy Bianco Managing Director [email protected] 724-743-5820
Anthony Ventura Managing Director [email protected] 724-743-5810
Eric Wissinger Managing Director [email protected] 724-743-5840
Viktoriia Koshelieva MBA Intern [email protected] 724-743-5830
Administrative Marcia McCracken [email protected] 724-743-5800 Assistant
Bringing Efficiency to Inefficient Markets