Boston, MA – Capstone Headwaters released its August 2020 Environmental, Health & Safety (EH&S) Report today, reporting EH&S operators that provide personal protective equipment (PPE) as well as sanitization products and services have seen an unprecedented uptick in demand as states follow suggested Center of Disease Control (CDC) and Occupational Safety and Health Administration (OSHA) guidelines to protect workforces and prevent the virus’ spread. As an essential provider of virus protection and mitigation solutions, the EH&S industry plays a critical role to support business continuity and state economies as they emerge from lockdown measures.
Merger and acquisition (M&A) activity in the EH&S industry has trailed 2019 levels by 13% through Q2 2020. Deal activity in 2020 was robust through January and February, outpacing 2019 levels by 43% but experienced a significant slowdown following the spread of COVID-19. Service providers in the industry, accounting for 53.3% of total deal activity through Q2, experienced severe deterioration in business functions as lockdown measures forced certain end markets to shut down. Product manufacturers (28% of M&A volume) and distributors (8%), many of whom provide key PPE, saw a substantial uptick in business, and are expected to retain short and long-term demand. As a result, manufacturers and service providers of PPE are expected to attract M&A interest from strategic and private equity buyers.
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