Key transactions & industry news Weekly Update

Recent M&A Transactions

Metals & Mining

Nov. 21, 2024 – Acerinox, a global leader in stainless steel and high-performance alloys manufacturing and distribution, has completed its acquisition of Haynes International through its wholly owned US subsidiary, North American Stainless. Haynes is a leading U.S. manufacturer and marketer of advanced high-performance alloys. (Business Wire)

Nov. 18, 2024 – EQ Resources Limited (ASX: EQR), a tungsten producer operating in Australia and Spain, has signed a binding agreement to acquire Tungsten Metals Group for $13.5M. (Mining Technology)

Nov. 17, 2024 – Bright East Holding 1, a holding company registered with the Abu Dhabi Global Market (ADGM), has acquired Emirates Gold, a leader in the UAE’s gold and precious metals refining and minting industry. (GCC Business News)

Transportation & Logistics

Nov. 20, 2024 – Performance Brokerage Services, North America’s leading dealership brokerage firm, has facilitated the sale of Vineland, NJ-based Vann Dodge Chrysler Jeep Ram to Cumberland County Auto Group. (PR Newswire)

Nov. 19, 2024 – Kot Auto Group completed its acquisition of Okanagan Chrysler Dodge Jeep Ram, marking a significant expansion of its automotive dealership presence in the Okanagan Valley. (Yahoo Finance)

Nov. 18, 2024 – SunBelt Xpress, a leader in specialized furniture transportation, has acquired Ideal Transport, Inc. This acquisition unites two companies with over 94 years of combined experience, providing enhanced nationwide less-than-truckload (LTL) furniture transportation services. (SunBelt Xpress)

Nov. 15, 2024 – DV Aviation, a leader in private aircraft management and aviation services, has completed its strategic merger with Deerhorn Aviation, a renowned charter plane company in the Permian Basin. (DV Aviation)

Building Products & Materials

Nov. 21, 2024 – J & R Sand Co., a third-generation family-owned business serving southwest Kansas and northwest Oklahoma, was acquired by Legacy Infrastructure Group(Pit & Quarry)

Nov. 20, 2024 – TopBuild Corp. (NYSE: BLD), a leading U.S. installer and distributor of insulation and building materials, has entered into an agreement to acquire Metro Supply Company, a top commercial and industrial mechanical insulation distributor with an annual revenue of ~$35M. (TopBuild)

Nov. 18, 2024 – QXO, Inc. (NASDAQ: QXO), a newcomer in building products distribution, has made an offer to acquire Beacon Roofing Supply (NASDAQ: BECN). QXO plans to become a tech-forward leader in the $800B building products distribution industry. (Yahoo News)

Nov. 12, 2024 – Installed Building Products, Inc. (NYSE: IBP), a leading installer of insulation and complementary building products, has acquired Tatum Insulation III, LLC. Tatum specializes in installing a range of products, including fiberglass insulation, shower doors, shelving, mirrors, and other interior home and building fixtures. (Yahoo Finance)

Energy

Nov. 19, 2024 – DT Midstream, Inc. (NYSE: DTM) has reached an agreement to acquire a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc. (NYSE: OKE) for $1.2B. The pipelines span ~1,300 miles across seven states in the Midwest market region, with a total capacity exceeding 3.7 Bcf/d. (DT Midstream)

Nov. 19, 2024 – LandBridge Company LLC (NYSE: LB) has entered into an agreement to acquire ~46,000 contiguous surface acres in the Southern Delaware Basin, known as the Wolf Bone Ranch, from VTX Energy Partners, LLC, for $245M. (Business Wire)

Nov. 18, 2024 – Northwest Natural Holding Company (NYSE: NWN) has entered into an agreement to acquire SiEnergy Operating, LLC for $273M. (Business Wire)

Others

Nov. 22, 2024 – FloWorks International LLC, a leading specialty distributor of critical flow control products and a portfolio company of Wynnchurch Capital, L.P., has acquired Applied Controls(Wynnchurch)

Top News Stories

Metals & Mining

US aluminum scrap recovery grows at a higher rate in Aug’24 in contrast to sluggish primary metal output. US primary aluminum production in August fell by 6,000 tonnes, or 9.7% year-over-year, while scrap recovery rose by 17,000 tonnes, or 6.07%. Aluminum recovered from scrap in August 2024 included 166,000 tonnes from new scrap, up from 159,000 tonnes in July, and 132,000 tonnes from old scrap, slightly lower than July’s 133,000 tonnes.

Alumina production dip at Hydro Alunorte refinery contributes to South America’s Q3 2024 output fall. South America’s alumina production totaled 2.986M tonnes in 24Q3, down 1.8% from 3.039M tonnes in 23Q3 and 3.49M tonnes in 24Q2. The sharp decline in South America’s alumina production in 24Q3 is largely due to reduced output at Hydro Alunorte, the region’s largest alumina refinery with an annual capacity of 6.3M tonnes. Hydro’s 24Q3 production was 1.463M tonnes, down 1.9% quarter-over-quarter from 1.492M tonnes and 3.9% year-over-year from 1.522M tonnes.

EGA drives national economy with 1.3% contribution to UAE’s GDP, asserts CEO. EGA’s direct, indirect, and induced economic contribution was over $6.5B in 2023, supporting more than 57,000 jobs and accounting for ~1.3% of GDP. On average, EGA redirects ~$1.9B annually to the local economy, which increased to ~$2.2B in 2023.

Transportation & Logistics

Covenant Logistics CEO sees trucking market rising in 2025. Covenant Logistics Group co-founder and CEO David Parker predicts the trucking industry’s peak season will see positive growth this holiday season. “Last week started the first week of peak that will go until about Christmas, and peak, it shot up about 105% last week, and this week peak is growing even more,” Parker said. “I think that peak is going to be a good peak, I think for the first time in about three or four years. I think after that, we will go into January and February, and the weather will slow it down. I think that March will start seeing a nice turn in freight.”

J.B. Hunt eyes intermodal pricing inflection. The company reported a 92.8% operating ratio in the third quarter, showing only a 10-basis-point improvement from the cycle-low OR recorded in the second quarter. While margins have remained under pressure during the freight recession, J.B. Hunt is optimistic that pricing pressures will ease in the new bid season, which began in October, following two years of declines in revenue per load.

More layoffs hit freight-related companies across US. Layoffs continue across the freight and logistics industry, with companies announcing 1,277 job reductions and six distribution facility closures across the country. UPS plans to temporarily close distribution facilities in California and Colorado, resulting in 849 employees being laid off. Ryder Transportation Solutions is laying off 40 employees from a logistics center in Dixon, Illinois. Advance Auto Parts plans to close four distribution centers across the country as part of a restructuring initiative. Great Dane LLC, a tractor-trailer manufacturer, intends to lay off 151 employees from a facility in Danville, Pennsylvania.

Energy

Oil prices settle up 1% at 2-week high as Ukraine war intensifies. Oil prices climbed about 1% on Nov. 22, settling at a two-week high, as the intensifying war in Ukraine boosted the market’s geopolitical risk premium. Brent futures rose 94 cents, or 1.3%, to settle at $75.17 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.14, or 1.6%, to settle at $71.24. Both crude benchmarks were up ~6% for the week, their highest settlements since Nov. 7 as Moscow stepped up its Ukraine offensive after Britain and the US allowed Kyiv to strike deeper into Russia with their missiles.

Others

Annual inflation rate hit 2.6% in October, meeting expectations. The consumer price index increased 0.2% in October, taking the 12-month inflation rate up to 2.6%. Both numbers were in line with expectations. The core CPI accelerated 0.3% for the month and was at 3.3% annually, also meeting forecasts. Despite signs of inflation moderating elsewhere, shelter prices continued to be a major contributor to the CPI move. Inflation-adjusted average hourly earnings for workers increased 0.1% for the month and 1.4% from a year ago.

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.