Q1 2017 Nationwide M&A Market Report

We've compiled all of the data on Q1 2017 nationwide M&A transactions. Read the report.

Table of Contents

  1. Transaction Statistics
    1. Consumer Discretionary
    2. Healthcare
    3. Industrials
    4. Information Technology
    5. Materials
  2. Notable Transactions
    1. Consumer Discretionary
    2. Healthcare
    3. Industrials
    4. Information Technology
    5. Materials

 

Q1 2017 M&A Transaction Statistics

 

US Consumer Discretionary Q1

Consumer Discretionary: Deals by Industry Segment

Segment Number of Deals
Specialized Consumer Services 42
Advertising 78
Auto Parts and Equipment 25
Healthcare Industry Software 20
Textiles, Apparel, and Luxury Goods 40

Key Statistics

(for deals with disclosed terms)

Total Deal Volume $22.98BN
 Median Deal Size $75.5MM
Mean EV/Sales Multiple 1.51x
Mean EV/EBITDA Multiple 15.61x

Number of Deals by Transaction Ranges

Greater than $1 BN 4
$500 – $999.9 MM 2
$100 – $499.9 MM 12
Less than $100 MM 21
Undisclosed 166

Most Active Acquirers by Total Transaction Size ($MM)

Company Name Total Transaction Size ($MM)
Samsung Electronics America, Inc. $9,382.26
Parker-Hannifin Corporation $4,437.42
Symantec Corporation $2,528.18
Cintas Corporation $2,201.14
Lennar Corporation $957.72
TPG Capital, L.P. $650.00
DelStar Technologies, Inc. $335.00
SWM Luxembourg S.à.r.l $335.00
Textron Specialized Vehicles Inc. $325.33
CC Capital management, LLC $322.65

 

US Healthcare Q1 2017

Healthcare: Deals by Industry Segment

Segment Number of Deals
Healthcare Distributors 10
Healthcare Services 103
Healthcare Facilities 72

Key Statistics

(for deals with disclosed terms)

Total Deal Volume $17.57 BN
Median Deal Size $15.20MM
Mean EV/Sales Multiple 2.23x
Mean EV/EBITDA Multiple 13.66x

Number of Deals by Transaction Ranges

Greater than $1 BN 4
$500 – $999.9 MM 0
$100 – $499.9 MM 2
Less than $100 MM 35
Undisclosed 144

Most Active Acquirers by Total Transaction Size ($MM)

Company Name Total Transaction Size ($MM)
Tennessee Parent, Inc. $6,046.68
Chace LLC $4,325.00
Optum, Inc. $4,300.75
Hologic, Inc. $1,679.51
CC Capital Management, LLC $322.65
Sun Pharmaceutical Industries Limited $175.00
WNS (Holdings) Ltd. $95.00
National Health Investors Inc. $91.80
RWS Holdings plc $82.50
Saint Francis Health System, Inc. $64.30

 

US Industrials Q1 2017

Industrials: Deals by Industry Segment

Segment Number of Deals
Construction and Engineering 76
Machinery 69
Trading Companies & Distributors 72
Environmental and Facilities Services 40

Key Statistics

(for deals with disclosed terms)

Total Deal Volume $15.73 BN
Median Deal Size $27.4 MM
Mean EV/Sales Multiple 1.33x
Mean EV/EBITDA Multiple 11.0x

Number of Deals by Transaction Ranges

Greater than $1 BN 4
$500 – $999.9 MM 0
$100 – $499.9 MM 3
Less than $100 MM 18
Undisclosed 232

Most Active Acquirers by Total Transaction Size ($MM)

Company Name Total Transaction Size ($MM)
TechnipFMC plc $7,836.20
Parker-Hannifin Corporation $4,437.42
Konecranes Plc $1,332.27
Plains Pipeline L.P. $1,215.00
IEH FM Holdings LLC $304.51
Summit Materials, Inc. $110.00
Electrolux Professional, Inc. $108.00
John Bean Technologies Corporation $57.00
Meridian Waste Solutions, Inc. $41.36
Spartan Motors USA, Inc. $39.90

 

US Information Technology Q1 2017

Information Technology: Deals by Industry Segment

Segment Number of Deals
Application Software 158
Internet Software and Services 221
IT Consulting and Other Services 85
Technology Distributors 19

Key Statistics

(for deals with disclosed terms)

Total Deal Volume $52.91 BN
Median Deal Size $36.13MM
Mean EV/Sales Multiple 2.4x
Mean EV/EBITDA Multiple 18.89x

Number of Deals by Transaction Ranges

Greater than $1 BN 13
$500 – $999.9 MM 5
$100 – $499.9 MM 12
Less than $100 MM 49
Undisclosed 404

Most Active Acquirers by Total Transaction Size ($MM)

Company Name Total Transaction Size ($MM)
Samsung Electronics America, Inc. $9,382.26
DXC Technology Company $8,859.00
Siemens Industry, Inc. $4,820.73
Cisco Systems, Inc. $4,032.75
CBOE Holdings, Inc. $3,880.82
Tech Data Corporation $2,593.14
TPG Capital, L.P. $2,250.00
Koch Equity Development, LLC $2,000.00
Verizon Communications Inc. $1,800.00
LogMeIn, Inc. $1,784.81

 

US Materials Q1 2017

Materials: Deals by Industry Segment

Segment Number of Deals
Commodity Chemicals 35
Diversified Metals and Mining 41
Paper and Forest Products 5
Specialty Chemicals 23

Key Statistics

(for deals with disclosed terms)

Total Deal Volume $6.65 BN
Median Deal Size $10.00MM
Mean EV/Sales Multiple 1.67x
Mean EV/EBITDA Multiple 11.45x

Number of Deals by Transaction Ranges

Greater than $1 BN 1
$500 – $999.9 MM 2
$100 – $499.9 MM 5
Less than $100 MM 18
Undisclosed 78

Most Active Acquirers by Total Transaction Size ($MM)

Company Name Total Transaction Size ($MM)
Evonik Industries AG $3,800.00
Teijin Holdings USA, Inc. $825.00
Nippon Paint (USA) Inc. $608.00
Elementis plc $360.00
DelStar Technologies, Inc. $335.00
OEP Pioneer LLC $315.00
H.B. Fuller Company $122.00
CIE Automotive, S.A. $106.00
NBL Permian LLC $44.30
Undisclosed $26.50

Notable Q1 2017 M&A Transactions

 

Notable Consumer Discretionary M&A Transactions

February 22, 2017
Ben Eason acquires Creative Loafing Atlanta, Inc

Creative Loafing Atlanta, Inc. is an award-winning alternative multimedia company that publishes weekly newspapers. It is known for its coverage of news, culture, music, and the arts, along with offering lists of activities to participate in around Atlanta. The company was a former subsidiary of SouthComm, Inc. before being reacquired by its original owner, Ben Eason.

Ben Eason is the son of the original owners of Creative Loafing, Inc. In the 2007-2008 recession, the company filed for Chapter 11 bankruptcy protection, and Mr. Eason lost control of the company to its main creditor, Atalaya Funding. SouthComm, Inc. later acquired the company in 2012. Despite losing control of the company, Mr. Eason subsequently founded The Networked Planet, which is an agency that provides digital programs for daily and specialty publishers across the US. Throughout this venture, he has worked alongside numerous technologically minded individuals, helping to sculpt his future vision for Creative Loafing Atlanta, Inc.

Mr. Eason acquired Creative Loafing Atlanta, Inc. on February 22, 2017 for an undisclosed purchase price. He was the sole investor in the acquisition. However, SouthComm, Inc. will retain the Tampa-based Creative Loafing and the Washington City Paper which were part of the original Creative Loafing group.


March 24, 2017
Restaurant Brands International Inc. (NYSE:QSR) acquires Popeyes Louisiana Kitchen, Inc.
$1.83 billion purchase price

Popeyes Louisiana Kitchen, Inc. develops, operates, and franchises quick-service restaurants under the Popeyes Louisiana Kitchen and Popeyes Chicken & Biscuits trade names. As of December 25, 2016, Popeyes Louisiana Kitchen, Inc. operates and franchises 2,688 restaurants in 48 different states and in 25 foreign countries. Popeyes Louisiana Kitchen, Inc., was founded in 1972 and is headquartered in Atlanta, Georgia.

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons and Burger King brand names. As of December 31, 2016, Restaurant Brands International Inc. owns and franchises a total of 4,613 Tim Hortons’ restaurants and 15,738 Burger King restaurants. These restaurants are located throughout the U.S. and in approximately 100 countries around the world. The company was founded in 1954, and it is headquartered in Oakville, Canada.

As a result of the acquisition, expected additional revenue is $268.9 million and expected additional EBITDA is $88.7 million.


 

Notable Healthcare M&A Transactions

February 1, 2017
Patheon Holdings I, B.V. acquires Patheon API Inc. (Formerly known as Roche Carolina Inc.)
$10.20 million purchase price.

Patheon API Inc., formerly known as Roche Carolina Inc., manufactures and markets active pharmaceutical ingredients for customers in the U.S. and internationally. The company was founded in 1992 in Florence, SC.

Patheon Holdings I, B.V., an operating subsidiary of Patheon N.V., manufactures and markets active pharmaceutical ingredients for customers in the U.S. and internationally. The goal of the company is to make pharmaceuticals with a simplified, end-to-end supply chain solution for pharmaceutical and biopharmaceutical companies of all sizes. The company was founded in 1974 and is based in Amsterdam, the Netherlands.

Patheon Holdings I, B.V. entered into an agreement to acquire Roche Carolina Inc. from Roche Holdings, Inc. for $5.4 million on November 25, 2016. As per a revised deal, on February 1, 2017, Patheon Holdings paid $1 million plus $9.2 million in cash for inventory, spare parts, pre-paid expenses, accounts payable, and certain transaction expenses of Roche Carolina Inc.


February 1, 2017
First Databank, Inc. acquired Polyglot Systems, Inc

Polyglot Systems, Inc. develops software solutions to improve patient understanding. The company offers several services and types of Meducation, including MeducationRS and MeducationDC. Meducation is an online tool that generates simpler and personalized medication instructions in the patient’s preferred language to reduce medication errors. The company serves accountable care organizations and patient centered medical homes, hospitals and health systems, ambulatory clinics, pharmacies, and health plans in the U.S. A portion of Polyglot Systems Inc. was previously owned by the UNC Kenan-Flagler Private Equity Fund. Polyglot was founded in 2001 and is based in Morrisville, NC.

First Databank, Inc. offers integrated drug databases/knowledge and drug decision support tools. It offers National Drug Data File (NDDF) Plus that provides information on over-the-counter and alternative therapy agents. The company also offers content integration software, such as its American Hospital Formulary Service (AHFS) Framework to facilitate integration of the AHFS Drug Information Monographs. This coupled with its NDDF Plus knowledge base allows for use in pharmacy and clinical information systems. It serves drug manufacturers and wholesalers, health plans/insurers, hospitals, physician clinics, pharmacies, and payers, among others. The company was founded in 1977 and is headquartered in South San Francisco, CA.


 

Notable Industrials M&A Transactions

February 1, 2017
Trelleborg Sealing Solutions US, Inc. acquires Carolina Seal, Inc.

Carolina Seal, Inc. manufactures and supplies a range of rubber, metal, plastic, and foam components for the industrial marketplace. The company offers products in various categories, including O-rings, semiconductor materials, custom spliced rings, X-rings, and foam products, among others. Carolina Seal, Inc. was founded in 1995 and is based in Charlotte, NC.

Trelleborg Sealing Solutions US, Inc. develops, manufactures, and supplies precision seals and bearings. It offers rubber diaphragms and lip seals for the automotive, industrial, and aircraft industries. The company was incorporated in 1800 and is based in Fort Wayne, Indiana.

Trelleborg Sealing Solutions US, Inc. signed and announced the agreement to acquire Carolina Seal, Inc. on January 23, 2017. Carolina Seal reported a revenue of $5.65 million as of January 23, 2017. The deal closed on February 1, 2017.


February 21, 2017
LSI Industries Inc. (NasdaqGS:LYTS) acquires Atlas Lighting Productions, Inc.
$96.89 million purchase price

Atlas Lighting Products, Inc. manufactures energy saving lighting products in the U.S. Some of the lighting products that Atlas Lighting offers include fluorescent industrial lighting, LED, wall lighting, and security lighting. The company manufactures these products and offers them through distributors.. It was founded in 1992 and is based in Burlington, North Carolina.

LSI Industries Inc. provides corporate visual image solutions in the United States, Canada, Australia, and Latin America. It operates in three segments: Lighting, Graphics, and Technology. It offers a wide variety of products within each segment ranging from the manufacturing of outdoor and indoor lighting to the designing and installing of electronic circuit boards. The company was founded in 1976 and is based in Cincinnati, Ohio.

LSI Industries Inc. acquired Atlas Lighting Products, Inc. from James Hewes Bennett and Rector Samuel Hunt III. Atlas’ revenues for the fiscal year ending in December of 2016 were $56.5 million, and operating income was $8.8 million. Adjusted EBITDA is estimated to have been approximately $9.7 million. All Atlas employees are expected to join LSI.


 

Notable Information Technology M&A Transactions

February 2, 2017
Analytic Services, Inc. acquires Advanced Technology International, Inc.
$40 million purchase price

Advanced Technology International, Inc. builds and leads technology development collaborations in the U.S. The company recruits, organizes, and manages a consortium of industry and academic partners to produce technology solutions for federal clients. Before the acquisition by Analytic Services, Inc., Advanced Technology International, Inc. was an operating subsidiary under the South Carolina Research Authority (SCRA). The company is based out of Summerville, South Carolina.

Analytic Services, Inc. is a research institute that provides objective studies and analyses to national security, homeland security, and other selected public policy communities. The company is focused on providing services to its clients through several mission areas focused on supporting the national and homeland security communities. The company was founded in 1958 and is based in Falls Church, Virginia.

Analytic Services, Inc. agreed to acquire Advanced Technology International, Inc. from South Carolina Research Authority for $40 million on January 30, 2017. As per the terms of the agreement, SCRA received $25 million at closing on February 2, 2017; additionally, SCRA could receive up to an additional $15 million over the next four years based on the growth of Advanced Technology International, Inc.’s support to Analytic Services, Inc.’s federal sponsors.


February 27, 2017
Windstream Holdings, Inc. (NasdaqGS:WIN) acquires EarthLink Holdings Corp.
$1.11 billion purchase price

EarthLink Holdings Corp. provides managed network, security, and cloud services to business and residential customers in the United States. It operates through four segments: Enterprise/Mid-market, Small Business, Carrier/Transport, and Consumer Services. It functions in the Internet Software and Services industry, offering products and services ranging from Wi-Fi and analytical services to retail business and IT consulting. The company was founded in 1994 and is headquartered in Atlanta, Georgia.

Windstream Holdings, Inc. provides network communications and technology solutions in the United States. It operates in four segments: ILEC Consumer and Small Business, Enterprise, Wholesale, and CLEC Consumer and Small Business. Its ILEC Consumer and Small Business segment serves approximately 1.5 million residential and small business customers around the U.S. It offers products and services ranging from high-speed Internet access to the management of websites and email services. The company was incorporated in 2013, and it is headquartered in Little Rock, Arkansas.

As a result of the acquisition, expected additional EBITDA is $206.80 million, and expected additional revenue is $989.98 million. The EV/Revenues multiple was 1.07x with an EV/EBITDA multiple was 5.11x.


 

Notable Materials M&A Transactions

February 1, 2017
Broadwind Energy, Inc. (NasdaqCM:BWEN) acquires Red Wolf, LLC
$26.40 million purchase price

Breakdown of purchase price ($26.5 MM)

  • $16.5 MM: Cash payment for Red Wolf’s interest and debt
  • $9.9 MM: Earn-out payment

Red Wolf, LLC provides contracted manufacturing services for industries in the United States and internationally. It offers assembly and test services, machining and fabrication services, and kitting and inventory management services. Some of its offerings range from valve assemblies and energy storage devices to services that include the use of welding and tube bending. Red Wolf, LLC was founded in 2007 and is based in Sanford, North Carolina.

Broadwind Energy, Inc. provides products to customers primarily in the United States within the energy, mining, and infrastructure sectors. The company operates through two segments: Towers and Weldments, and Gearing. The products and services offered by these segments range from specialty fabrications and specialty weldments to the re-manufacturing of precision gears and gearing systems for oil and gas, wind energy, and other industrial applications. Broadwind Energy, Inc. was founded in 1997 and is headquartered in Cicero, IL.


February 1, 2017
KapStone Paper and Packaging Corporation (NYSE:KS) acquires Associated Packaging, Inc.

Associated Packaging, Inc. provides packing solutions. Its products and services include national brands, technology, structural/design, project management, printing/manufacturing, and packaging supplies, among others. The company also provides automotive packaging, point-of-purchase displays, and graphic design services. Its customer base includes consumers in the auto, electronics, pharmaceutical, and medical industries. The company was founded in 1977 and is based in Greer, SC.

Kapstone Paper and Packaging Corporation produces and sells a range of containerboards, corrugated products, and specialty paper products in the U.S. and internationally. The company operates in two segments: Paper and Packaging, and Distribution. Its product/service offerings range from specialty paper products to the distribution of corrugated and other specialty packaging products. The company was founded in 2005 and is headquartered in Northbrook, IL.


Source: S&P Capital IQ

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