Industry Reports

Published on: 12/16/2020
Rapid consolidation in the past few years, has resulted in public strategic buyers allocating substantial capital toward acquisitions of regionally-focused operators to increase market share. As competition tightens among these dominant public companies, smaller, regional leaders will be poised to attract M&A interest. Industry participants with diverse revenue streams across a manifold of industries and customer bases are expected to retain defensibility and continue to see steady performance amid virus-induced uncertainty.
Published on: 11/18/2020
The EH&S industry has been instrumental in combating the novel coronavirus.  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. 
Published on: 10/23/2020
The Packaging industry has displayed resiliency during COVID-19, driven by the accelerated adoption of e-commerce, consumer pantry loading, and demand for healthcare, pharmaceutical, and hygiene packaging solutions. Despite a challenging economic climate, packaging providers have continued to attract demand in defensible end markets while experiencing softness in industrial markets and discretionary goods.
Published on: 10/01/2020
The highly fragmented HVACR Services market presents ample consolidation potential, with an extensive supply of small, geographic-centric prospective add-ons. Capstone maintains relationships with an extensive private equity network, which gives us a unique pulse on buyer perspectives and insights in the HVACR industry. In this report, CEO AJ Brown of Alpine Investors-backed Apex Service Partners, and VP of Corporate Development Karan Aggarwal of Ares Management-backed CoolSys, provided Capstone with their perspectives and outlooks on the attractiveness of the HVACR Services market. 
Published on: 09/17/2020
This follows Capstone’s recently advised sales of MMi Sonora to ARCH Global Precision, a portfolio holding of The Jordan Company, and EB Industries, LLC to MCM Capital Partners.  As evidenced by these transactions, private equity (PE) firms have shown a strong appetite for precision manufacturing companies and have comprised almost 60% of buyers in the space year-to-date.
Published on: 09/16/2020
Pre-COVID trends of rapid urbanization and aging water and wastewater infrastructure have been catalysts for innovation and advancement in the Water Infrastructure industry.  While COVID-19 has stressed revenues and financial visibility, it is accelerating the adoption of digital and remote technologies to drive effective asset management, efficiency, and cost reduction in water systems.
Published on: 09/03/2020
Weakened downstream chemicals demand among Automotive, Construction, and General Industrial markets were partially offset by steady demand for synthetic materials for non-wovens in personal protective equipment, disinfectants, pharmaceuticals, and food and beverage ingredients. Global merger and acquisition (M&A) activity in the industry fell 3.6% year-over-year (YOY) through July, with a notable slowdown in May. However, several notable deals in June and July indicate buyers are returning to the table, albeit with tightened criteria and valuation expectations.
Published on: 07/14/2020
After a three month decline that brought U.S. manufacturing activity to its lowest level since the Global Financial Crisis, the industry showed signs of slight recovery in May and June.  Our Industrials & Manufacturing (I&M) Team has spoken to leading industry players and private equity firms across the industry to discuss how COVID-19 has impacted their business model and merger and acquisition (M&A) appetite.  While activity has slowed, and many companies have opted to delay a sale, select M&A transactions are still underway.
Published on: 06/11/2020
The MRO industry has been deeply impacted across Retail, Entertainment, Aviation, and Oil & Gas sectors while operators with a focus on essential end markets, deep cleaning and disinfecting, and personal protective equipment (PPE) are experiencing a spike in demand.  Companies with diversified customer bases and end markets are expected to be able to weather the storm, recovering swiftly relative to their peers in highly impacted sectors.
Published on: 05/26/2020
The management of sound is becoming increasingly important in our daily lives to communicate and tap our senses, while also protecting us as the environments we live and work in get ever louder and less comfortable.  While not immune from the coronavirus-related shutdown and resulting economic slowdown, the underlying needs of the industry will remain when individuals return to work.

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