M&A Analysis
Potential M&A Candidates in Packaged Goods Following Monumental Deal
Kellanova (K) was a major deal announced in Q3 with Mars paying $36B, a 33% premium at 16.4X EBITDA. The deal is expected to close in 1H25. Mars’ purchase of Pringles maker Kellanova for $36 billion will transform the candy icon into a leading seller of chips,...
M&A Breakdown: Deals Heat Up in Packaging & Paper Industry
Sonoco Products (SON) announced a $3.9B deal for Eviosys in late June as we continue to see consolidation in the Packaging sector where International Paper (IP) was being pursued by Suzano (SUZ) despite IP trying to do a $9.9B deal for DS Smith announced in March that...
M&A Heats Up in Electronic Designs
Although there were a lot of Biotech M&A deals in Q1, the deal that stood out was Synopsys (SNPS) buying Ansys (ANSS) in a $35B deal at a 30% premium as consolidation in the space heats up with Cadence (CDNS) also doing some smaller deals and Renesas recently...
Software M&A Analysis into Q4
Software deals remain hot with Francisco Partners acquiring New Relic (NEWR) in a $6.5B deal in July and then the deal of the quarter with Cisco (CSCO) announcing a $28B deal for Splunk (SPLK). Valuations have come down across the space with multiple contraction due...
Upstream and Midstream Energy M&A Analysis
Although in Q2 there were several notable deals in hot momentum areas like software & biotech, for this breakdown I want to look at two recent Energy deals, one in Upstream and one in Midstream. The Energy sector is flush with cash from the last two years and may...
Industrial Distributor M&A Focus
Univar (UNVR) with a recent acquisition by Apollo (APO) for $8.1B at ~ a 20% premium a notable deal in Q1. UNVR has long been seen as a M&A target and rejected a deal from Brenntag in January. UNVR is a distributor of commodity and specialty chemical products...
Software M&A Analysis – Searching for Private Equity Targets
With Software valuation contracting to multi-year lows we are starting to see both companies and private equity take aim at names that continue to have a long runway for revenue growth in an industry that continues to have bright growth prospects but a market that has...
M&A Analysis: Biotech Deals Heat Up in Q2
Biotech (XBI) M&A heated up in Q2 with several large deals announced or speculated with Neuro and Oncology remaining the top areas Pharma is looking for exposure. Pfizer announced an $11.6B deal for long-time favorite BioHaven in the Neuro space and reports...
Auto Parts Industry M&A Analysis
Tenneco (TEN) and Meritor (MTOR) were each acquired in the Auto Parts space in back-to-back days for $7.1B and $3.7B respectively, and at 100% and 50% premiums. TEN at 4X FY22 EBITDA and MTOR at 7X FY22 EBITDA, the distinction being MTOR’s 10.7% EBITDA margins versus...
Hospital Products M&A Environment
Hill-Rom (HRC) was one of the more notable M&A deals in Q3 with Baxter (BAX) aggressing to a $10.5B deal bringing together two leading medical technology companies to broaden access to care in the hospital, home and alternate site settings. Patients increasingly...