Industry Reports

Published on: 10/04/2018
Following multiple years of decreasing merger and acquisition (M&A) activity in the Environmental, Health & Safety (EH&S) industry, Capstone Headwaters has identified a reverse in the trend through year-to-date (YTD) 2018. With 70 transactions announced or closed YTD, activity has increased by 18.8% yearover-year and is on pace to exceed that of each of the previous two years. Strategic buyers maintain a stronghold on M&A activity and have captured 60.0% of deals in the space.
Published on: 09/11/2018
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.
Published on: 09/11/2018
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.
Published on: 08/27/2018
The first half of 2018 has experienced a significant upswing in all measures of market activity in comparison to the more modest growth experienced in 2017.  In the first half of 2017, there were 86 deals announced or closed. As of June 2018, there have been 93 deals announced or closed, representing an 8.0% year-over-year (YoY) increase.
Published on: 08/15/2018
Following a challenging year for Chemicals industry operators in 2017 due to volatile feedstock and oil prices as well as numerous natural disasters, the industry rebounded during the first half of 2018 and is poised for sustained growth.  According to the American Chemicals Council’s (ACC) Mid-Year 2018 Chemical Industry Situation and Outlook, US chemical production is expected to expand 3.4% in 2018.
Published on: 06/25/2018
Merger and acquisition (M&A) activity in the Chemicals industry remains healthy as both private equity and strategic operators demonstrate continued interest in the space and have competed to win deals.  Through the first half of 2018, various mega-deals announced in previous years – most notably the merger between E.I.
Published on: 06/07/2018
Merger and acquisition (M&A) activity in the Maintenance, Repair & Operations (MRO) industry remains healthy through year-to-date 2018.  Public companies have accounted for some of the most significant transactions over the course of the past two years, including Applied Technologies’ acquisition of FCX in January 2018 ($784.0 million) and Sentinel Fluid in March 2017 (undisclosed), Stanley Black and Decker’s acquisition of Nelson Fastener in April 2018 (~$400.0 million), and MSC Industrial Direct’s acquisition of All Integrated Solutions in May 2018 ($86.0 million).
Published on: 05/23/2018
Over the past decade, high profile water crises in major markets have increased awareness of looming problems, including jeopardized water supplies in Georgia, Texas, California, and South Africa.  Nevertheless, the Water Infrastructure industry shockingly continues to grow in unison with the overall economy.  That being said, there are pockets of growth and, consequently, areas of focus for mergers & acquisitions (M&A).  
Published on: 05/03/2018
With the number of fatal occupational injuries increasing for three consecutive years, as reported by the Bureau of Labor Statistics,1 operators within a wide spectrum of industrial and manufacturing related industries have been forced to reexamine existing workplace safety infrastructures and procedures and deploy capital to correct inefficiencies.  A growing number of companies have begun to incorporate safety data in reporting and have invested in more advanced occupational and health related research to help track and reduce fatalities.  
Published on: 04/24/2018
Impressive levels of merger and acquisition (M&A) activity in the Packaging industry through year-to-date (YTD) 2018 suggests that the industry remains in a consolidation phase following consecutive years of significant deal volume in 2016 and 2017. There have been 38 transactions announced or closed through YTD 2018, compared to 36 in 2016 and 34 in 2017 during the same period. Target companies are experiencing significant interest from a diverse range of strategic and financial buyers.