Key transactions & industry news Weekly Update 08/02/2024
Recent M&A Transactions
Transportation & Logistics
Jul 26, 2024 – Wiseway Group Limited, one of Australia’s leading integrated freight and logistics operators, announced today that it has reached agreement to acquire KWTInternational Inc., a US-based logistics company. (ListCorp)
Jul 30, 2024 – Sennder Technologies GmbH, the leading digital road freight forwarder in Europe, announces the acquisition of the European Surface Transportation operations of global logistics provider C.H. Robinson. (sennder)
Jul 31, 2024 – NOVA Infrastructure, a middle-market infrastructure private equity firm, has announced the exit of Bold Holdco to institutional investors advised by J.P. Morgan Global Alternatives’ Global Transportation Group. (BusinessWire)
Jul 31, 2024 – Turn Services announced its plans to acquire Marine Fueling Service, Inc. MFS has serviced the Golden Triangle area and the Intracoastal Waterway in Texas for the past 65 years. (WorkBoat)
Jul 26, 2024 – Auxo Investment Partners, Michigan’s leading lower middle market private investment firm, today announced a successful exit from its investment in Andrie through a sale to Rand Logistics. (PRNewswire)
Building Products & Materials
Jul 26, 2024 – Pelican Energy Partners is pleased to announce the acquisition of MillenniTek, LLC. MillenniTek is a premier developer, manufacturer, and supplier of advanced materials for the nuclear energy industry. (Pelican Energy)
Jul 29, 2024 – Heidelberg Materials announced that it has entered into an agreement to acquire Carver Sand & Gravel, the largest aggregates producer in the Albany, New York, area. Included in this acquisition are four quarries, three sand and gravel pits, a trucking business, two asphalt plants, 70 million metric tons of reserves and about 200 employees. (Heidelberg Materials)
Jul 31, 2024 – MITER Brands, a leading manufacturer of residential windows and doors, is pleased to announce the sale of Martin Door and CRi SoCal to Midland Garage Door and Builders FirstSource, Inc., respectively. (BusinessWire)
Jul 31, 2024 – Vossloh France signed an agreement with TowerBrook Capital Partners L.P. regarding the acquisition of Sateba Group. Sateba is one of the leading manufacturers of concrete ties in Europe and has expanded in recent years to include other rail infrastructure components and related products. The purchase price is expected to be 450 million euros. (NASDAQ)
Metals & Mining
Jul 29, 2024 – Filo Corp. is pleased to announce it has entered into a binding agreement with BHP and Lundin Mining Corporation whereby the purchaser parties will acquire all of the outstanding common shares of Filo. (Lundin Group)
Jul 29, 2024 – Integra Resources Corp. and Florida Canyon Gold Inc. announce that they have entered into an agreement whereby Integra has agreed to acquire all of the issued and outstanding shares of FCGI. (Ingera Resources)
Jul 30, 2024 – The Jade Steel Group, in partnership with Standard Horse Nail Company, LLC, announces the acquisition of Precision Kidd Steel Company, a renowned producer of precision cold drawn steel shapes. (PRNewswire)
Energy
Jul 28, 2024 – Vital Energy and Northern Oil and Gas will jointly acquire U.S. shale assets from private equity-owned Point Energy Partners for $1.1 billion. (Reuters)
Jul 29, 2024 – Italian gas group Snam announced its acquisition of Edison Stoccaggio from EDF Edison for approximately €560m. Edison owned three gas storage sites in Italy through its subsidiary, with a total capacity of natural gas storage of about 1.1 bcm/year. (Enerdata)
Jul 30, 2024 – Pipeline operator TC Energy will sell a minority stake in its Canadian natural gas pipeline system to Indigenous communities for C$1 billion ($722.1 million). (Reuters)
Others
Jul 31, 2024 – CBIZ, Inc. , a leading national provider of financial, insurance and advisory services, announced that it has entered into an agreement to acquire the non-attest business of Marcum LLP, which will make CBIZ the seventh-largest accounting services provider in the U.S. with approximately $2.8 billion in annual revenue. (PRNewswire)
Top News Stories
Transportation & Logistics
Lineage to share $100M from IPO proceeds with employees. Cold storage warehouse operator Lineage Inc. said it plans to share $100 million from the proceeds of its successful initial public offering with employees. The Novi, Michigan-based real estate investment trust said Thursday that many of its 16,000 U.S. workers will receive one-time stock awards or restricted stock units (RSUs) following its July 25 debut on Nasdaq.
Fourth consecutive month of decline in truck transportation jobs. Truck transportation jobs fell in July for the fourth consecutive month and now are 30,000 jobs less than where they stood a year ago. The four-month sequence of job declines in the truck transportation sector reported by the Bureau of Labor Statistics, following revisions, is a decline of 1,600 jobs in April, 6,800 jobs in May, 900 jobs in June and 2,400 jobs in July. At 1,544,700 seasonally adjusted jobs, truck transportation employment stands exactly 30,000 jobs less than where it was in July 2023.
C.H. Robinson first look: Q2 numbers up from both Q1 and 2023. C.H. Robinson last quarter touted its improvement sequentially since the year-on-year comparisons were still negative. But second-quarter earnings show both continued improvement sequentially from the first quarter and from a year ago.
First look: ArcBest’s Q2 misses consensus. ArcBest’s (NASDAQ: ARCB) asset-based segment, which includes results from its less-than-truckload subsidiary ABF Freight, reported revenue of $713 million, a 2% y/y decline on a per-day comparison. Tonnage per day was down 20% but revenue per hundredweight, or yield, increased 23%. The tonnage decline was the combination of a 5% decline in daily shipments and a 16% decline in weight per shipment.
Metals & Mining
US aluminium crude metal and alloy imports declined 8% during Jan-May’24, contributed by lacklustre supply from UAE. The United States imports of aluminium crude metals and alloys in May 2024 reflected a decline of 18.18 per cent month-on-month to return to the import volume seen in March. Compared to a year ago, the United States aluminium crude metal and alloy imports in May plunged by 33.66 per cent.
India remains the world’s second-largest primary aluminium producer, recording a 1.2% output growth in Q1. India has witnessed a continued increase in metals and minerals production during the first quarter of FY2024-25, following a record output level in FY2023-24. According to the data revealed by the Ministry of Mines, India’s primary aluminium production in the June quarter of FY2024-25 increased by 1.2 per cent year-on-year to 10.43 lakh tonnes from 10.28 lakh tonnes.
ArcelorMittal launches HyMatch® steel for hydrogen pipeline construction. Luxembourg-based steel producer ArcelorMittal has announced that it has launched a new steel product under the brand HyMatch® steel for the construction of hydrogen pipelines. ArcelorMittal is carrying out research programs for the use of steel in hydrogen infrastructure at a number of its production sites.
India’s iron ore output rises by 10 percent in 01 FY 2024-25. India’s iron production has been recorded at 79 million mt in the first quarter (April-June) of the fiscal year 2024-25, up 9.7 percent year on year, according to provisional data released by the ministry of mines on Friday, August 2. The data showed that India’s manganese ore Production was one million mt during the first quarter, up 11 percent, and its limestone output was 116 million mt, a rise of 1.8 percent, both year on year.
Energy
Oil Strategist Flags Weaker Global Fuel Demand. In a statement sent to Rigzone on Friday, Mazen Salhab, MENA Chief Market Strategist at BDSwiss, warned that “crude futures were volatile”, adding that they “could remain under pressure and could decline for the fourth consecutive week driven by weaker global fuel demand”.
Chevron to Quit California for Texas After Warning on Rules. Chevron Corp. is relocating headquarters to Houston from California after repeatedly warning that the Golden State’s regulatory regime was making it a tough place to do business. The move announced Friday will end the company’s more than 140 years of being based in the largest US state and comes amid a shake-up in senior leadership ranks apparently aimed at improving results.
Others
US job growth slows to 114K in July while unemployment unexpectedly jumps. U.S. job growth cooled in July while the unemployment rate unexpectedly rose to the highest level in nearly three years. The Labor Department reported Friday that employers added 114,000 jobs in July, missing the 175,000 gain forecast by LSEG economists. The unemployment rate also unexpectedly inched higher to 4.3% against expectations that it would hold steady at 4.1%.
About RJM
RJM & Company is a specialized M&A and capital markets advisory investment bank. We provide boards and management teams of public and private companies with independent advice and expertise in a variety of sectors including road, rail and marine transportation, infrastructure, chemicals, energy, metals and mining, manufacturing, building materials, and other coverage areas of the industrial complex. RJM advises clients on all aspects of transactions including timing, structure, and pricing. RJM originates opportunities and helps negotiate and execute transactions already under evaluation.