Industry Reports

Q3 2012
The Juvenile Products industry has been enjoying a healthy level of M&A activity, with acquirers seeking to build product offerings, capture market share and secure new brands via acquisitions. While both corporate and private equity buyers are active in the space, we note the plethora of private equity groups that are targeting consumer products companies, including those focusing on juvenile products. 
Q3 2012
M&A activity in the staffing industry has been accelerating. Capstone’s research indicates that 54 transactions were completed in the industry through August of this year. On a pro forma basis, together with the host of transactions we see moving to closure during Q4, 2012 should mark the third consecutive year of solid M&A performance for the industry.
Q3 2012
The natural & organic products industry continues to be highly fragmented and rife with new product introductions and innovations by small companies which are often in need of growth capital, and are frequently turning to private equity buyers for such funding. Strong growth rates, profitable product categories and professional management teams have made the natural & organic products industry an attractive addition to many investment portfolios.
Q3 2012
The staffing industry deal environment remains vibrant. Capstone’s research indicates that 54 transactions were completed in the industry through August. On a pro forma basis, together with the host of transactions we see moving to closure during Q4 this year, 2012 should mark the third consecutive year of solid M&A performance in the sector.
Q3 2012
Merger and acquisition activity in the pet & animal care industry remained level in the first half of 2012 compared to the same period last year, as the economy continued its modest recovery and M&A activity stabilized across the general economy. Activity in 2010 and 2011 has noticeably increased from levels in prior years. This increase reflects post-recession market improvements, including renewed interest among both corporate and private equity buyers, as well as better financing conditions for M&A transactions. 
Q2 2012
The biometrics industry is highly fragmented and offers attractive growth prospects, driving aggressive M&A activity in the space from both corporate buyers and private equity groups. As an analyst from TechNavio’s Hardware team stated, “An increase in mergers and acquisitions is expected to continue in the coming years.
Q3 2012
Despite years of consolidation and M&A activity, the packaging industry remains highly fragmented, with plenty of room for additional combinations, particularly in the higher growth segments of the industry. For instance, plastic packaging has seen a recent uptick in activity, as has labels. Increased demand from customers who want to work with fewer packaging suppliers that can provide a broader range of products and support services will continue to drive the need for industry mergers & acquisitions.
Q3 2012
M&A activity in the recreational products industry followed a similar pattern to many other industries, with the number of transactions accelerating through 2007, then declining during the economic recession of 2008 and 2009. Activity rebounded substantially in 2010, and the industry remained increasingly active in 2011 and year‐to‐ date 2012. There currently is elevated interest from both strategic and financial buyers in the industry.
Q3 2012
The investment thesis for the water industry remains firmly intact. That is, there is a growing need for large expenditures in support of the nation’s water infrastructure which will in‐turn benefit many companies in the industry. Specifically, much of our drinking and wastewater infrastructure is nearing the end of its useful life and needs to be upgraded and/or replaced.
Q2 2012
The Early Childhood Education industry is highly fragmented with the three largest and top 50 operators estimated to hold only 3% and 20%, respectively, of the market combined. As a result, it is no surprise that ‒ now that M&A and economic conditions are improving ‒ we are seeing heightened consolidation activity in the space with strong interest from both corporate and private equity buyers.

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