Key transactions & industry news Weekly Update 11/15/2024
Recent M&A Transactions
Metals & Mining
Nov. 11, 2024 – Olympic Steel, Inc., a leading national metals service center, announced the acquisition of Metal Works. The all-cash purchase is expected to be immediately accretive. Terms were not disclosed. (BusinessWire)
Nov. 11, 2024 – Daiwa Heavy Industry Co.,Ltd. has indicated approval of a takeover bid to be made by T Corporation Co., Ltd. for shares of the Company, which aims for a subsequent delisting of the shares. (Japan Exchange Group)
Transportation & Logistics
Nov. 14, 2024 – Kuehne + Nagel International AG agreed to acquire 51% stake in IMC Companies LLC. Mark H. George will continue as Chairman with the same leadership team in place. The deal is subject to approval from regulatory authorities and customary closing conditions. Completion of the transaction is expected at the beginning of the first quarter of 2025. (Kuehne+Nagel)
Nov. 13, 2024 – Airport management company AviAlliance has agreed to acquire UK-based airport operator AGS Airports from Ferrovial and Macquarie in a deal valued at $1.95bn. AGS Airports was established in 2014 as a 50:50 joint venture between Ferrovial and Macquarie. It operates three UK airports in Aberdeen, Glasgow, and Southampton. These airports serve more than 10.8 million passengers annually and contribute about £2bn in gross value added to the UK economy each year, supporting over 30,000 jobs. (Airport Technology)
Nov. 11, 2024 – DP World Australia announces it has entered into a binding agreement for the acquisition of 100% of the issued share capital of Silk Logistics Holdings Limited via a cash offer of A$2.14 per share. The transaction values the equity of Silk Logistics at approximately A$174.5 million. This transaction is subject to shareholder approval of Silk Logistics and standard closing conditions, including necessary regulatory approvals, and is expected to complete in the first half of 2025. Silk Logistics is a comprehensive port-to-door logistics services provider which operates 21 logistics hubs and 25 warehousing sites across five Australian states. Silk Logistics partners with some of the world’s leading brands providing efficient and cost-effective services to a national customer base. (DP World)
Nov. 9, 2024 – Al-Nihang Group proposed to acquire PIA Holding Company Limited for PKR 100 billion. A cash consideration of PKR 100 million will be paid by Al-Nihang Group. As part of consideration, PKR 100 million is paid towards common equity of PIA Holding Company Limited and PKR 250 billion towards debt. (MarketScreener)
Building Products & Materials
Nov. 11, 2024 – Stangeland Gruppen AS acquired 50% stake in Randøy Stein As on November 11, 2024. Randøy Stein As will continue to operate independently. (AT.no)
Nov. 8, 2024 – Oldcastle Infrastructure, a CRH Company, announced that it has acquired Cook Concrete Products. Operating in Redding, CA, Cook Concrete is a provider of precast structures primarily used in underground applications in the energy, water, and communications markets in Northern California, Oregon, and Nevada. (PRNewswire)
Energy
Nov. 12, 2024 – The Norwegian energy ministry agreed to acquire remaining 53.30% stake in GASSCO from Shell, CapeOmega, ConocoPhilipps, Equinor, Hav Energy, Orlen and Silex for NOK 18.1 billion. North Sea Infrastructure and M Vest Energy did not agree to a sale and maintain their stakes. The agreement lifts the Norwegian state’s stake in Gassled to 100% from 46.7% previously. The government remains determined to acquire these remaining stakes, either through negotiation or by exercising its rights at the end of the concession period. (MarketScreener)
Others
Nov. 11, 2024 – Cardinal Health will acquire a majority stake in GI Alliance (GIA), the country’s leading gastroenterology (GI) management services organization (MSO), from a combination of GIA physician owners and funds managed by affiliates of Apollo (NYSE: APO). Cardinal Health will purchase its majority stake for approximately $2.8 billion in cash, which will represent 71% ownership. GIA will operate as a platform within Cardinal Health’s Pharmaceutical and Specialty Solutions segment. (PRNewswire)
Top News Stories
Metals & Mining
US CRC exports up 0.7% in September from August. According to export data from the US Department of Commerce, IOS exports of cold rolled coils totaled 72,810 mt in September this year, up 0.7 percent month on month and up 14.7 percent year on year. By value, CRC exports totaled $86.4 million in September, compared to $89.6 million in the previous month and $78.8 million in the same month last year. The US shipped the most CRC to Mexico in September with 58,159 mt, compared to 57,370 mt in August and 47,081 mt in September last year. The other top destination was Canada, with 14,220 mt. There were no other significant destinations (1,000 mt or more) for US CRC exports in September.
Egypt Aluminium achieves 45% of previous year’s net profit in only Q1, marking 160% Y-o-Y growth. Aluminium Co. of Egypt (Egyptalum), a subsidiary of the Metallurgical Industries Company and a leading player in the aluminium industry, has announced its fiscal results for the first quarter of FY2024-25 ended September 30, highlighting a striking increase in net profit and revenue.
Transportation & Logistics
Protest on Mexican side of World Trade Bridge halts northbound cargo traffic. A protest at the Mexico border has caused a major backup at the busiest cargo bridge in the U.S. Around noon on Tuesday, protestors in Nuevo Laredo, Mexico, began blocking the roadway on the Mexico side of the World Trade Bridge that connects to Laredo, Texas. All northbound cargo trucks carrying goods from Mexico to the U.S. are being blocked at the bridge, said Armando Taboada, assistant director of field operations at the Laredo Field Office.
Diesel futures market up and down, but benchmark retail price falls. Diesel retailers have been whipsawed by big swings in futures and wholesale prices in the past six to seven trading days, but the end result for the trucking industry’s key diesel benchmark was a drop in the weekly price. The Department of Energy/Energy Information Administration average weekly retail diesel price fell 3.7 cents a gallon Monday to $3.536. It’s the second decline in the past three weeks for the price used for most fuel surcharges, and takes it to the lowest level since Sept. 23.
Energy
USA EIA Lowers 2025 Oil Price Forecast. The U.S. Energy Information Administration (EIA) lowered its Brent spot average price forecast for next year in its latest short term energy outlook (STEO), which was released this week. According to its November STEO, the EIA now sees the Brent spot price averaging $76.06 per barrel in 2025. In its previous October STEO, the EIA forecast that the Brent spot price would average $77.59 per barrel next year.
Others
Powell says Fed will likely cut rates cautiously given persistent inflation pressures. Chair Jerome Powell said Thursday that the Federal Reserve will likely cut its key interest rate slowly and deliberately in the coming months, in part because inflation has shown signs of persistence and the Fed’s officials want to see where it heads next. Powell, speaking in Dallas, said that inflation is edging closer to the central bank’s 2% target, “but it is not there yet.”
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.