Key transactions & industry news Weekly Update 12/06/2024
Recent M&A Transactions
Metals & Mining
Dec. 4, 2024 – Russel Metals Inc. (TSX: RUS) completed its acquisition of Tampa Bay Steel Corporation for $79.5M. Tampa Bay Steel has a long standing and well-respected management team in the central Florida region, and its business includes significant value-added processing and non-ferrous products. (Yahoo Finance)
Dec. 4, 2024 – Northern Star Resources (ASX: NST) has entered into an agreement to acquire De Grey Mining (ASX: DEG) for ~$3.2B. (NASDAQ)
Dec. 4, 2024 – Dakota Holdings, LLC acquired Ozark Steel Fabricators, Inc. The acquisition further strengthens Dakota Holding’s platform of structural steel fabricators and erectors and positions it for further expansion throughout the Central and Midwestern US. (Business Wire)
Transportation & Logistics
Dec. 4, 2024 – Radiant Logistics (NYSE: RLGT) acquired TCB Transportation, an intermodal marketing company based in St. Louis, MO. TCB specializes in facilitating the movement of 40- and 53-foot containers across North America. It collaborates with container shipping lines, Class I railroads, and drayage partners to deliver door-to-door services for the forestry, food and beverage, and industrial sectors. (TCB Transportation)
Dec. 2, 2024 – Penske Automotive Group, Inc. (NYSE: PAG) completed its acquisition of Porsche Centre Melbourne, located in Melbourne, Australia. This acquisition marks Penske’s 25th Porsche dealership worldwide. It is expected to add ~$130M in annualized revenue, increasing the combined revenue of its three Porsche dealerships in Melbourne to ~$260M. (Penske)
Dec. 2, 2024 – Mullen Group Ltd. (TSX: MTL) acquired Pacific Northwest Investments Inc., which offers multiple less-than-truckload (“LTL”) solutions to its customer base including temperature controlled, dry van and deck as well as local “last mile” delivery services in both Whitehorse and Dawson City, Yukon Territory. (Yahoo Finance)
Nov. 28, 2024 – Canada Cartage, one of North America’s largest providers of transportation and logistics services, has signed an agreement to acquire Coastal Pacific Xpress based out of Surrey, British Columbia. Coastal Pacific Xpress provides refrigerated full truckload (FTL) and less-than-truckload (LTL) transportation solutions with ~600 temperature-sensitive trailer units. (Canada Cartage)
Building Products & Materials
Dec. 2, 2024 – KPS Capital Partners, LP has signed a definitive agreement to acquire the Engineered Materials business from Crane Company (NYSE: CR) for $227M. (KPS Capital Partners)
Nov. 28, 2024 – Heidelberg Materials North America has entered into a definitive purchase agreement to acquire Giant Cement Holding Inc., which is an established cement producer on the US East Coast with a strong focus on using waste-derived fuels. (Heidelberg Materials)
Nov. 25, 2024 – Builders FirstSource (NYSE: BLDR) acquired Huntington, NY-based Kleet Lumber, which has earned a strong reputation as a trusted provider of lumber and building materials, including doors, windows, roofing, hardware, mouldings and custom millwork. (HBS Dealer)
Energy
Dec. 6, 2024 – NMDC Group PJSC (ADX: NMDC) has signed a definitive agreement to acquire a 70% stake in Emdad, an integrated service provider specializing in the oil and gas, utilities, and industrial sectors. This strategic acquisition will enable NMDC Group to expand into oilfield services, further diversifying its portfolio and strengthening its competitive advantage. (ZAWYA)
Dec. 5, 2024 – CNX Resources Corporation (NYSE: CNX) has entered into a definitive agreement to acquire the natural gas upstream and associated midstream businesses of Apex Energy II, LLC, a portfolio company of funds managed by Carnelian Energy Capital Management, L.P., in the Appalachian Basin for ~$505 million (CNX Resources Corporation)
Dec. 2, 2024 – Summit Midstream Corporation (NYSE: SMC) completed its acquisition of Tall Oak Midstream Operating, LLC for $450M. This strategic acquisition marks a significant milestone in Summit’s growth strategy, rebalancing its portfolio to ~50% natural gas-oriented drilling activities. (PR Newswire)
Others
Dec. 6, 2024 – Hydraulic Technologies, a market leader in high-pressure hydraulic tools and equipment and a portfolio company of Wynnchurch Capital, L.P., has made a growth investment in Hydra-Slide. Founded in 2011, Hydra-Slide is a Canada-based manufacturer that specializes in skidding and hydraulic systems used to lift and move heavy equipment in critical applications, including infrastructure, utilities, and transportation. (Wynnchurch)
Top News Stories
Metals & Mining
US aluminum cans recycling rate drops to 43%, prompting associations to revisit policies to meet 70% goal by 2030. The Aluminum Association and the Can Manufacturers Institute (CMI) has shown a surprising downtrend in consumer aluminum cans recycling in the United States. Once averaging at ~52% in the 1990s, the rate has decreased to 43% in 2023. However, a silver lining is that aluminum cans still have a higher recycling rate than glass, with a recycling rate of 39.6% and plastic bottles with 20%. CMI President Robert Budway believes more methodical action plans and strategic investments in the United States will lead to an improved rate of recycling.
US steelmakers to Trump: bring on more tariffs. Some US steelmakers are backing Donald Trump’s plans for tariffs on Mexico and China. They also want him to go even further. The Steel Manufacturers Association wants tariffs to be reimposed on steel from the U.K., the European Union and Japan. These countries were included in Trump’s 2018 tariffs, but President Biden later allowed some steel to enter the U.S. without duties. Among the association’s members are Steel Dynamics and Nucor, the largest U.S. steel producer.
Transportation & Logistics
Jack Cooper getting closer to entering LTL biz. Jack Cooper was in talks to acquire Standard Forwarding, a Teamsters-staffed LTL carrier. Jack Cooper said it was “hopeful” to reach an agreement with the union and Standard Forwarding. Illinois-based Standard Forwarding is a 90-year-old regional LTL carrier operating 14 terminals in Illinois, Iowa, Wisconsin, Indiana and Minnesota with a fleet of 350 tractors and 800 trailers. It was acquired by DHL Freight in 2011. A Jack Cooper-related entity previously made several attempts to buy a portion of defunct Yellow Corp.’s network, but the offers were rejected by handlers of Yellow’s estate.
November trucking jobs see healthy rise; a one-time move or start of a trend? With the 2,900-job increase in November from a revised October figure, truck transportation jobs stood at 1,548,700 jobs. Supporting the view of the numbers as a rut is the fact that the November total was just 700 jobs higher than where truck transportation employment stood in May after a particularly large drop that month from April, or the fact that the job total is just 1,400 jobs fewer than where the figure stood a year ago. Additional evidence for that perspective comes from the fact that since May, the lowest number of jobs was 1,545,000 in July and the highest number was the latest report, for a range of just 3,700 jobs.
Energy
Oil prices fall on supply glut fears despite OPEC+ output cut extension. Oil prices dropped by more than 1% on December 6, solidifying weekly losses as analysts predicted a supply surplus next year due to weak demand, despite an OPEC+ decision to delay output increases and extend deep production cuts through the end of 2026. Brent crude futures settled at $71.12 per barrel, declining by 97 cents, or 1.4%. U.S. West Texas Intermediate crude futures settled at $67.20 per barrel, down $1.10, or 1.6%.
Others
Fed seen poised to cut rates this month, debate 2025 pause. Federal Reserve officials appear on track to cut interest rates in December after data showed the US labor market remained strong but continued to cool in November, even as debate emerged over a possible pause to rate cuts in the new year. US employers added 227,000 jobs in November, a rebound from a hurricane-impacted slowdown in October, but the unemployment rate ticked up to 4.2%.
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.