Key transactions & industry news Weekly Update

Recent M&A Transactions

Metals & Mining

Nov 7, 2024 – Brazilian mineral exploration company Jupiter Gold has signed a merger agreement with Apollo Resources, a private mineral exploration company, to expand its mineral portfolio. Upon closing, Apollo Resources’ shareholders will receive 59.4% of Jupiter Gold’s securities in exchange for their holdings. (Mining Technology)

Nov 4, 2024 – Mill Steel Co., one of the largest distributors of flat-rolled carbon steel, stainless steel, and aluminum in the US, has acquired Maryland Metals Processing, a leading stainless and aluminum toll processor based in Baltimore that provides expert cut-to-length, polishing, slitting, and coil enhancement services. (Mill Steel)

Nov 1, 2024 – Cleveland-Cliffs Inc. (NYSE: CLF) completed its acquisition of Stelco Holdings Inc. The addition of Stelco consolidates Cliffs’ position as the largest flat-rolled steel producer in North America, diversifies its end-markets and expands its geographical presence in Canada. (Cleveland-Cliffs)

Transportation & Logistics

Nov 7, 2024 – Lineage, Inc. (NASDAQ: LINE), the world’s largest global temperature-controlled warehouse REIT, has acquired Kansas City, KS-based ColdPoint Logistics, a provider of cold storage warehousing and transportation solutions. (Lineage)

Nov 4, 2024 – Air Transport Services Group, Inc. (NASDAQ: ATSG), a global leader in medium widebody freighter aircraft leasing, air transport operations, and support services, has entered into a definitive agreement to be acquired by Stonepeak for ~$3.1 billion. (Stonepeak)

Nov 4, 2024 – Parcel carrier SpeedX acquired Accelerated Global Solutions, a cross-border e-commerce logistics provider, following a two-year partnership. (FreightWaves)

Building Products & Materials

Nov 6, 2024 – Premier Aggregates and Ada Sand & Gravel have combined their respective businesses to create Premier Aggregates Holdings, LLC, now the largest independent supplier of construction and landscape aggregates in southwest Idaho. (PR Newswire)

Nov 4, 2024 – Knife River Corporation (NYSE: KNF) acquired Frank B. Marks & Son, an aggregates and liquid asphalt business in North California. (Knife River Corporation)

Nov 1, 2024 – White Cap, the leading distributor of specialty construction supplies and safety products for professional contractors, has acquired Valley Supply, Inc., a Mechanicsburg, PA-based distributor of concrete accessories, fabricated rebar, chemicals, and safety products. (White Cap)

Energy

Nov 8, 2024 – Icahn Enterprises L.P. (NASDAQ: IEP) has delivered a proposal to the board of directors of CVR Energy, Inc. to acquire additional shares of CVR common stock in a tender offer. (Icahn Enterprises)

Nov 6, 2024 – FREYR Battery (NYSE: FREY) has entered into an agreement to acquire the US solar manufacturing assets of Trina Solar Co Ltd. (SHA: 688599)(FREYR)

Nov 5, 2024 – Enersol, a joint venture (JV) between ADNOC Drilling and Alpha Dhabi Holding, has entered into an agreement to acquire a 95% equity stake in Deep Well Services for ~$223 million. (Offshore Technology)

Others

Nov 6, 2024 – Tessenderlo Kerley, Inc. acquired Tiger-Sul Products, a North American provider of sulfur-based fertilizer products, from Platte River Equity(Cascadia Capital)

Top News Stories

Metals & Mining

Donald Trump 2.0: What is in store for the global aluminum industry? At present, tariffs imposed by the US on steel, aluminum, and aluminum products account for $2.7 billion of the total import duties worth $79 billion. Following Donald Trump’s re-election as the US President, many countries expressed concern about the potential reimposition of tariffs, especially after he threatened to impose a global minimum tariff of 10% on all imported goods during his campaign.

Decline in the US aluminum crude metal and alloy imports is attributed to UAE and Australia. From January to July 2024, the US imported 2.1 million tonnes of aluminum crude metal and alloys, down by 7.8% Y-o-Y from 2.3 million tonnes. From January to July, the imports from the UAE totalled 210,000 tonnes, significantly down by 37.1% from 334,000 tonnes during the corresponding period of the previous year. Even the imports from Australia decreased in seven months of this year. From 169,000 tonnes from January to July 2023, the US aluminum crude metal and alloy imports this year plunged to 46,700 tonnes. However, there has been an increase in domestic scrap generation and restrained export volume, indicating the country’s intentional shift in focus from primary to secondary aluminum applications.

Century Aluminum posts a 203% jump in Q3 Adjusted EBITDA driven by rising aluminum shipments and LME prices. Century’s 24Q3 shipments rose to 168,755 tonnes, up from 167,908 tonnes in 24Q2. Despite declining net sales, net income for Century stakeholders surged from $2.5 million to $47.3 million Q-o-Q. Adjusted earnings per share increased from $0.01 in 24Q2 to $0.63 in 24Q3, driven by $34.9 million in year-to-date 2024 Inflation Reduction Act Advanced Manufacturing credits and a $31.0 million higher LME aluminum price realization. Adjusted EBITDA reached $103.7 million, a 203% jump from $34.2 million.

Transportation & Logistics

The Great Freight Recession is officially over. Truck spot rates are climbing, surpassing those of 2022 and 2023, which suggests there’s either a surge in demand or a decrease in available capacity, possibly both. This could catch many expecting the low rates to persist off guard. Truckload spot rates have increased to $1.78 from $1.54 a year ago. In less than two weeks, ~177,000 drivers will have their CDLs revoked due to prohibited status under the FMCSA’s Clearinghouse-II regulations, effective November 18, 2024.

Freight shareholders cheer election results. Investors anticipate that companies will achieve faster revenue growth and higher pre-tax profits under a Trump administration than a Harris administration. They are willing to pay more for pre-tax earnings due to lower corporate taxes and foresee more benefits for industrial and freight-intensive sectors compared to non-freight sectors.

US weekly rail volume jumps. The US weekly rail volume reached 516,743 carloads and intermodal units, marking a 6.6% increase over the same week in 2023, the largest single-week gain since mid-September. North American rail volume for the week totaled 712,109 units, including 340,572 carloads (up 1.8%) and 371,537 intermodal units (up 9.9%), a 5.9% overall increase. Year-to-date volume is up 2.4%, with flat growth in Canada and a 3% increase in Mexico.

Energy

Trump-led oil & gas export boom may go bust in Europe trade spat. The US oil and gas producers anticipate easier production and exploration under Donald Trump’s second administration. While streamlined permitting for fossil fuel extraction and distribution is expected to boost output, finding profitable local markets may pose a greater challenge.

Others

Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty. On November 7, the Federal Reserve cut its key interest rate by a quarter-point, responding to the steady decline in inflation that had fueled public frustration and contributed to Donald Trump’s election victory. This cut follows a half-point reduction in September, highlighting the Fed’s focus on supporting the job market and controlling inflation, now just above its 2% target.

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.