Key transactions & industry news Weekly Update 09/27/2024
Recent M&A Transactions
Metals & Mining
Sep 24, 2024 – Smiths Group, a leading industrial technology company, announces today that it is acquiring two North American companies, Modular Metal Fabricators and Wattco for a combined purchase price of up to £110m. These two companies will be integrated respectively into the Heating, Ventilation & Air Conditioning (HVAC) and electrical heating solutions platforms within Smiths Group’s Flex-Tek business. (Smiths Group)
Sep 23, 2024 – Uranium Energy (NYSE: UEC) has agreed to buy Rio Tinto’s (NYSE: RIO) assets in Wyoming, US, which include the fully-licensed Sweetwater plant and a portfolio of uranium mining projects. The uranium producer and explorer said the $175 million cash deal would give it key assets that will allow it to boost production, providing opportunities for synergy with its other projects in Wyoming’s Great Divide Basin. (Mining)
Sep 23, 2024 – Lode Gold Resources (TSXV: LOD) announced its subsidiary, Gold Orogen has entered into a Letter of Intent to acquire Great Republic Mining (GRM:CSE), pursuant to which the GRM and the Company’s subsidiary propose to complete a Reverse Take Over transaction pursuant to which GRM will acquire all of the issued and outstanding shares of the Company’s subsidiary. (Junior Mining Network)
Sep 20, 2024 – The Argos Surface Technologies Group, which since 2020 has been grouping the leading companies in the surface treatments and coatings sector, has acquired 100% of Galvanotecnica Salvatori Bologna Srl, currently Argos GSB Srl, a company based in Castenaso active in the galvanic industry for over 50 years, specializing in the zinc-nickel treatment. (Argos)
Transportation & Logistics
Sep 24, 2024 – Rainmakers today announced it had acquired the on-demand delivery and logistics technology, Shipsi, from Auctane. Shipsi is the technology leveling the “instant shipping” playing field in retail. Shipsi believes this acquisition will usher in a new era of AI-driven, ultra-fast delivery solutions for retailers of all sizes and looks forward to continuing to enhance its ability to transform retail logistics through ongoing innovation and support from trusted partners, ensuring a seamless and improved experience for both retailers and consumers. (GlobeNewswire)
Sep 23, 2024 – EVO Transportation & Energy Services, a leading truckload carrier, announced the acquisition of West Side Transport, a Midwest-based truckload carrier and brokerage. The combined company will operate under two separate brands, EVO and West Side Transport, while leveraging its expanded geographic footprint and resources to enhance service offerings. (YahooFinance)
Sep 20, 2024 – An affiliate of Stellex Capital Management, a middle-market private equity firm, is pleased to announce the execution and completion of a definitive agreement to acquire the majority capital of Fox Brothers Holdings Group (the “Company”) from existing shareholders and managers. (BusinessWire)
Building Products & Materials
Sep 26, 2024 – Vulcan Materials Company (NYSE: VMC), the nation’s largest producer of construction aggregates, announced that it has entered into a definitive agreement to acquire Wake Stone Corporation, a leading pure-play aggregates supplier in the Carolinas. This value-enhancing acquisition is expected to provide more than 60 years of quality hard rock reserves to serve attractive high-growth geographies, most notably Raleigh, North Carolina. (Vulcan)
Sep 24, 2024 – Arada Capital has announced the acquisition of the Italian company ELTI through Visconti Capital, a search fund led by Carlo Luigi Fontana Giusti and Clemente di Napoli Rampolla. (Arada Capital)
Energy
Sep 26, 2024 – QE Solar, a leading national Operations and Maintenance provider in the commercial and utility-scale solar, battery energy storage systems and Electric Vehicle Charging sectors, announced it has acquired S3 Power of Walpole, MA. S3 is an expert service provider of comprehensive commissioning, testing, specialized construction and maintenance services for medium voltage power systems and substations, as well as support capabilities for a variety of high voltage systems. (AltEnergyMag)
Sep 24, 2024 – Diamondback Energy (NasdaqGS:FANG) and Kinetik Holdings (NYSE:KNTK) acquired 30% stake in Epic Crude Holdings on September 24, 2024. The Partners now each own 27.5% of EPIC Crude. EPIC Midstream continues to own a 45% equity interest in and manage the operations of EPIC Crude. (Diamondback Energy)
Sep 24, 2024 – Foremost Lithium (NASDAQ:FMST) entered an agreement with Denison Mines (NYSE:DNN) concerning 10 Uranium Exploration Projects encompassing 332,378 acres in the Athabasca Basin, a proven uranium mining jurisdiction that is known for high-grade uranium deposits and produces around 15% of global primary uranium supply. (ZacksSCR)
Others
Sep 24, 2024 – Smartsheet (NYSE:SMAR), the enterprise platform for modern work management, announced that it has entered into a definitive agreement to be acquired by funds managed by Blackstone and Vista Equity Partners in an all-cash transaction valued at approximately $8.4 billion. (Smartsheet)
Top News Stories
Metals & Mining
SMM alumina price surged consecutively for 12 days by RMB 132/t, with A00 aluminium ingot price ascending by RMB 320/t today. Like in Guizhou, the average price reached RMB 4,050 per tonne, up by RMB 25 per tonne from the previous day. Henan, Shanxi, and Guangxi regions experience price hikes of RMB 20 per tonne, RMB 15 per tonne and RMB 10 per tonne to officially close at RMB 4,060 per tonne, RMB 4,140 per tonne and RMB 4,045 per tonne respectively. Also, Australian alumina FOB price has ascended by US$ 5 per tonne after two weeks, bringing the price higher by US$ 29 per tonne with an average of US$ 550 per tonne.
Biden administration finalized the tripling of Section 301 tariffs (to 25%). The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024. Steel is a vital sector for the American economy, and American companies are leading the future of clean steel.
15 groups compete for acquisition of Acciaierie d’ltalia, amid fears of piecemeal sale. The process for the sale of Italian steel producer Acciaierie d’ltalia has attracted the interest of 15 national and international industrial groups, Italian minister of enterprises Adolfo Urso has confirmed, as reported by local Italian media.
Transportation & Logistics
Florida ports appear to have escaped major damage from Hurricane Helene. Ports are assessing damage after Hurricane Helene roared into Florida as a Category 4 storm. Helene made landfall Thursday night near Perry, a city of about 6,900 residents. The storm has since weakened and was moving over the South on Friday, bringing strong winds and rain. Assessments were underway Friday at Florida’s ports, including Canaveral and Jacksonville. The Port of Jacksonville conducted facility assessments and found no damage. The U.S. Coast Guard was assessing the waterways for damage. Vessel traffic is closed in the meantime.
State of Freight for July: ‘Bullish’ market coming for freight economy. FreightWaves’ State of Freight webinar for July offered a wide ranging discussion on everything from trucking bankruptcies, a surge in West Coast imports, to what a second Trump presidency could mean for the supply chain.
Yellow targets January sale for 112 remaining terminals. The sale of bankrupt Yellow Corp.’s remaining properties is moving forward, a Wednesday filing in a federal bankruptcy court in Delaware showed. The estate will accept nonbinding indications of interest for its remaining 112 terminals beginning Tuesday and running through Oct. 18.
Energy
Nigeria Says Exxon Weighs $10B Offshore Oil Investment. Exxon Mobil Corp. is considering investing as much as $10 billion in Nigeria’s offshore oil industry over the coming years, despite finalizing the sale of shallow-water assets to a local firm, the country’s government said. The supermajor is working on developing the deepwater Owo project, Nigerian Vice President Kashim Shettima said after meeting Exxon Nigeria chairman Shane Harris on the sidelines of the United Nations General Assembly in New York. The company also proposed to spend $2.5 billion annually to boost oil output by 50,000 barrels per day over the next few years, Shettima said.
BP Issues Final Update on Hurricane Helene. In a statement posted on its website on 9/27/2024, BP issued its “final update” on Hurricane Helene. “BP is closely monitoring Hurricane Helene to protect our personnel and operations in the deepwater Gulf of Mexico,” the company said in the update. “After determining conditions are safe to return, BP is working toward safely returning personnel to our platforms in the Gulf of Mexico,” it added.
What is Likely to Happen at Next OPEC+ Meeting in December? If Brent prices remain below $80 per barrel, OPEC will have to consider cutting production. That’s what Al Salazar, Director at Enverus Intelligence Research (EIR), told Rigzone in an exclusive interview last week when asked what is likely to happen at the next OPEC+ meeting in December.
Others
Key Fed inflation gauge at 2.2% in August, lower than expected. The PCE price index, a measure the Fed focuses on to measure the cost of goods and services in the U.S. economy, rose 0.1% for the month, putting the 12-month inflation rate at 2.2%. Excluding food and energy, core PCE rose 0.1% in August and was up 2.7% from a year ago. The all-items inflation gauge was below Wall Street estimates and the lowest since early 2021.
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.