Key transactions & industry news Weekly Update 09/20/2024
Recent M&A Transactions
Metals & Mining
Sep 17, 2024 – Eastern Metal Supply, Inc., one of the largest value-added distributors of aluminum products in the U.S. and a Wynnchurch Capital, L.P. portfolio company, acquired the assets of Aluminum Products Wholesale. (Wynnchurch)
Sep 16, 2024 – Aluminium Bahrain B.S.C. (“Alba”) (BAX: ALBH) will enter into a non-binding agreement with Ma’aden to commence due diligence towards a potential business combination involving segments of Maaden’s aluminum strategic business unit. (Alba)
Sep 15, 2024 – Alcoa (NYSE: AA) has entered into a binding share purchase agreement with Saudi Arabian Mining Company (“Ma’aden”) (SASE: 1211), under which Alcoa will sell its full ownership interest of 25.1% in the Ma’aden Joint Venture to Ma’aden for ~$1.1 billion. (Alcoa)
Transportation & Logistics
Sep 20, 2024 – Stellex Capital Management has signed a definitive agreement to acquire the majority share of UK-based Fox Brothers Holdings Group, which specializes in the supply and haulage of aggregates, recycled materials, muck shift and earthworks. (Business Wire)
Sep 18, 2024 – Alaska Air Group, Inc. (NYSE: ALK) completed its $1.9 billion acquisition of Hawaiian Airlines. (Reuters)
Sep 18, 2024 – Powerfleet, Inc. (NASDAQ: AIOT), a leading provider of AIoT SaaS solutions for the mobile asset industry, has entered into a definitive agreement to acquire Fleet Complete, a prominent player in connected vehicle technology and fleet management. (PR Newswire)
Sep 16, 2024 – RXO (NYSE: RXO) completed its $1 billion acquisition of Coyote Logistics. Coyote has a large presence in the food and beverage vertical and will continue to support UPS with transportation services through 2030. (Yahoo Finance)
Building Products & Materials
Sep 19, 2024 – Kingspan Group plc (ISE: KRX), a manufacturer of insulation and building materials, is acquiring Grapevine, TX-based IB Roof Systems, a provider of high-performance PVC membranes, as part of its strategy to offer complete roofing system solutions in the US market. (RTE)
Sep 17, 2024 – Window Nation, the third largest window replacement company in the US, completed its acquisition of Florida-based ARMORVUE Window and Door. This marks a significant milestone for both companies, as ARMORVUE will retain its strong regional identity while benefiting from Window Nation’s national reach and resources. (PR Newswire)
Sep 17, 2024 – Rochester, NY-based VP Supply Corp acquired Smyrna, TN-based Exterior Wholesale Supply, which is a leading value-added distributor of building products and installation services for the construction and remodeling industries. (PR Newswire)
Energy
Sep 19, 2024 – Matador Resources Company (NYSE: MTDR) completed its strategic bolt-on acquisition of Ameredev II, LLC from EnCap Investments L.P. for ~$1.8 billion in cash. (Matador)
Sep 18, 2024 – Forfend Industries Inc. completed its first acquisition of Corpus Christi, TX-based Billy Pugh Company, a leading manufacturer of safety equipment for the offshore and maritime end-markets. (PRWeb)
Sep 17, 2024 – Kiely Family of Companies acquired All Bright Electric, a leading electrical contracting company based in West Nyack, NY. This marks a significant milestone as Kiely expands its portfolio to include electrical contracting, furthering its commitment to diversified energy services. (PR Newswire)
Others
Sep 17, 2024 – Brookfield Asset Management (NYSE: BAM) acquired a 51% stake in Castlelake L.P., a global alternative investment manager specializing in asset-based private credit, including aviation and specialty finance, for $1.5 billion. (PR Newswire)
Top News Stories
Metals & Mining
LME aluminium price adds US$3/t to US$2523/t; SHFE price ascends to US$2844/t. On September 19, LME aluminium opened at $2,521.5 per tonne, hit a high of $2,569 per tonne and a low of $2,506 per tonne, and closed at $2,540 per tonne, up $18 per tonne or 0.71%.
John Slaven steps down as Vedanta Aluminium CEO; successor yet to be named. Slaven, who took on the role in October 2023, is stepping down citing personal reasons. However, the company has not yet named his successor. John Slaven brings over three decades of expertise in the metals, mining, and modern manufacturing industries. Before joining Vedanta Aluminium, he held the position of Executive Vice President and Chief Operating Officer at Alcoa, where he was responsible for the company’s Bauxite, Alumina, and Aluminium operations.
Press Metal teams up with Indonesian firms for its upcoming alumina refinery in West Kalimantan. Press Metal has announced a partnership with 3 Indonesian firms to establish and operate an alumina refinery in West Kalimantan, Indonesia. The refinery is projected to produce between one and 1.2 million tonnes annually in its first phase, with plans to double this capacity.
Constellium celebrates grand opening of advanced aluminium recycling hub in France. Constellium has officially inaugurated its new advanced recycling centre at its Neuf-Brisach facility in France. The ~$145 million investment, bolstered by the France Relance investment program, is a significant milestone for the company. The new centre will boost the plant’s capacity to recycle automotive and packaging materials by up to 75%, adding an impressive 130,000 tonnes to its operations.
Transportation & Logistics
Saia to open 3 terminals in September. Two new terminals in Bismarck and Fargo, North Dakota, will be the carrier’s first locations in the state. A new terminal in Sidney, Montana, will be its fourth in that state. The Bismarck location appears to be one of the 28 terminals it acquired from bankrupt Yellow Corp. Saia opened six former Yellow locations across Montana, South Dakota and Wyoming in August.
Indiana port adds rail capacity, eyes container traffic. The Ports of Indiana-Burns Harbor has dedicated $25 million to infrastructure upgrades, including two new railyards and the port’s first all-new dock in two decades. The investment adds switching and storage capacity for 250 railcars at the Lake Michigan hub.
LTL earnings estimates cut following weak August updates. Susquehanna Financial Group cut earnings estimates for less-than-truckload carriers following weaker-than-expected volume updates for August. The investment firm pushed out its call for a gradual recovery in demand to 2025, with the expectation that 2026 will deliver “more meaningful performance.
US Trailer Orders Drop 40% Year Over Year in August. U.S. trailer orders in August fell 40% year over year to 7,700 units. However, the total increased by about 500 units from July. Seasonally adjusted results at this point in the annual order cycle boost the total for the month to 9,500 units. The only year-over-year increase this year was a 37% rise in April.
Energy
Oil prices set to end week higher after US rate cut. Oil prices eased on Friday but were on track to register gains for a second straight week following a large cut in U.S. interest rates and declining global stockpiles. Brent futures were down 51 cents, or 0.7%, at $74.37 a barrel, while U.S. WTI crude futures fell 37 cents, or 0.5%, at $71.58.
Others
Fed cuts rates by half percentage point. The Federal Reserve voted to lower interest rates by a half-percentage point, opting for a bolder start in making its first reduction since 2020. Quarterly projections showed a narrow majority of officials penciled in cuts that would lower rates by at least a quarter-point each at meetings in November and December.
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.