Industry Reports

Q3 2018
We are pleased to present our 2018 second quarter Cybersecurity Capital Markets, Mergers & Acquisitions Update.In comparison to the first quarter of 2018, there were fewer merger and acquisition (M&A) transactions, but at a higher total transaction value.Capstone Headwaters has observed a parallel trend for M&A activity acrosstheentire middle market as Q2 deal activity dropped by 12.5% relative to Q1, whilethe average disclosed deal value surged by 14.5% during the same period.Within the Cyber security industry,deal activity has been driven by economic growth, demand for cyber s
Q3 2018
Within the Interconnect Components industry, merger and acquisition (M&A) activity has remained healthy through year-to-date (YTD) 2018. With 40 transaction announced or closed, M&A volume has approached that of YTD 2017 and is expected to challenge total volume experienced in 2016 and 2017 by year-end. Though M&A activity remains robust in terms of volume, Capstone Headwaters has identified bifurcation in the market.
Q3 2018
Growth in the Juvenile Products industry has been driven by robust macroeconomic fundamentals, as historically high levels of consumer confidence and a 2.3% year-over-year increase in real disposable income per capita have generated increased consumer demand.  Low cost toy sales ($5.00-$19.99) have driven sales growth of 7.0% in the US Toy industry to reach $7.9 billion in the first half of 2018, according to The NPD Group.  The Toy & Game industry is expected to reach a global market value of $132.2 billion by 2022, a compounded annual growth rate of 6.2%, according
Q3 2018
Merger and acquisition (M&A) activity in the Security Solutions industry has been robust through year-to-date (YTD) 2018 with 93 acquisitions announced or completed. While the first half of the year was defined by Ares Private Equity Group’s acquisition of Convergint (February) as well as Motorola’s acquisition of Avigilon (March,), the second half has mainly been driven by middle market deals.
Q3 2018
Following multiple years of rapid consolidation in the Packaging industry, merger and acquisition (M&A) activity remains unabated through year-to-date (YTD) 2018 with 74 announced or closed transactions. Activity levels have outpaced that of last year during the same period (72 deals in YTD 2017), while strategic buyer share has increased to 68.1% compared to 60.7% for all of 2017. Public company EBITDA multiples remain high with an average of 10.1x after experiencing significant gains in 2017, which have allowed for aggressive inorganic growth initiatives.
Q3 2018
Merger and acquisition (M&A) activity in the Maintenance, Repair, & Operations (MRO) industry has remained robust year-to-date (YTD) 2018. With 65 transactions announced or closed, activity levels have closely mirrored that of last year. Within each of Capstone Headwaters’ key areas of industry focus – Maintenance Chemicals, Tools & Equipment, Facility Software & Technology, and Facilities Services – industry dynamics remain favorable and have fostered a robust M&A pipeline.
Q3 2018
Contract Research Organizations (CROs) remain the most targeted segment in the Pharmaceutical Outsourcing industry, accounting for 45.2% of deals to-date in 2018 compared to 38.3% in all of 2017. Buyers have sought to cut clinical trial times and reduce spending through these strategic acquisitions.  In August, Capstone Headwaters advised Gibraltar Laboratories on its sale to Sotera Health LLC, a portfolio company of Warburg Pincus and GTCR. 
Q3 2018
New technology, shifting consumer preferences, and the expanding US economy have all been driving factors for the continued growth of the E-Commerce & Internet Retailing industry. Merger and acquisition (M&A) activity has been robust year-to-date, with 53 deals announced or closed through August 27.
Q3 2018
Merger and acquisition (M&A) activity in the Public Safety Solutions industry has increased 25.6% year-over-year,rising from 39 announced or completed transactions to-date in 2017 to 49 to-date in 2018.  Buyers have targeted companies that can provide structure, insight, and actionable intelligence for the ever-increasing deluge of data that public safety agencies and departments face.
Q3 2018
For the fourth consecutive year, results of the American Water Works Association’s State of the Water Industry Report revealed that the renewal and replacement of the aging water and wastewater infrastructure is the top issue facing the water industry, according to respondents.

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