Key transactions & industry news Weekly Update 12/13/2024
Recent M&A Transactions
Metals & Mining
Dec. 11, 2024 – OmniMax International has acquired Millennium Metals, Inc. Millennium is a leading manufacturer of roofing accessories, headquartered in Jacksonville, Florida. The combined companies will greatly benefit customers of both firms, providing a more extensive product portfolio and a best-in-class service experience. (PRNewswire)
Dec. 10, 2024 – Byrne Chiarlone LP, a Chester, PA-based metal fabricator announced its sale to Chicago-based Elmsley Capital. Byrne Chiarlone LP which consists of William A. Schmidt & Sons, K. Wagner Machine and ERS (Engineered Resin Solutions) has been known for its precision and reliability in metal fabrication, machining and industrial coatings. For Elmsley Capital, this acquisition strengthens their position in the custom products segment. (PR.com)
Dec. 09, 2024 – Three private equity firms are left in the race to buy Italy’s Forgital, which manufactures forged components mainly for the aerospace sector, two sources close to the matter said on Monday. The binding offers are expected by the end of the business day on Monday. Private equity firm Carlyle, which is working with JP Morgan on the sale, bought Forgital in 2019, valuing the company at around 1 billion euros ($1.1 billion). (MarketScreener)
Transportation & Logistics
Dec. 10, 2024 – Priority Courier Experts, the leading provider of same-day logistics services in the Midwestern United States, announces its investment in NOW Courier, a leading courier in Indiana for the last 38 years. This strategic acquisition marks another significant milestone for PCE as it continues to expand its expedited freight and transportation services footprint throughout the central United States. (BusinessWire)
Dec. 10, 2024 – TOTE Group is excited to announce the acquisition of Aqua Gulf a leading third party logistics provider in Puerto Rico and the U.S. For almost 60 years, Aqua Gulf has delivered cargo for its customers and the people and communities of the island. (TOTE Group)
Dec. 03, 2024 – Ridgewood Infrastructure, a leading investment firm focused on essential infrastructure in the U.S. lower middle market, announced its investment in Valley Cold Storage & Transportation, a premier provider of temperature-controlled storage and logistics solutions in strategically located markets. (PRNewswire)
Nov. 24, 2024 – Wind Point Partners, a Chicago-based private equity firm, announced that it has completed a corporate carveout of Velocity Rail Solutions, a leading provider of mission-critical locomotive services to the rail industry. Velocity’s core services include mobile refueling, replenishment of locomotive consumable products (e.g., oil, sand and water) and inspection, maintenance and light repair solutions. Velocity operates 75 dedicated sites to serve more than 300 railyards, with 450 employees utilizing over 250 specialized vehicles. (Wind Point Partners)
Building Products & Materials
Dec. 11, 2024 – Vulcan Materials Company, the nation’s largest producer of construction aggregates, announced that it has entered into a definitive agreement to acquire Superior Ready Mix Concrete, L.P. This value-enhancing acquisition will add six aggregates operations with more than 50 years of quality aggregates reserves to Vulcan’s California franchise. California ranks as the most populous state in the U.S. and the second largest aggregates market. Superior will also enhance Vulcan’s customer service capabilities in Southern California with two asphalt plants and thirteen ready-mixed concrete locations. (Vulcan Materials)
Dec. 10, 2024 – Eagle Materials Inc. announced it has entered into a definitive agreement to acquire Bullskin Stone & Lime, LLC, a pure-play aggregates business located in Western Pennsylvania. The business serves the Pittsburgh and broader Western Pennsylvania markets. The purchase price is $152.5 million, subject to customary post-closing adjustments. (BusinessWire)
Energy
Dec. 10, 2024 – Palisades Goldcorp Ltd. and Radio Fuels Energy Corp. are pleased to announce that they have entered into a definitive arrangement agreement whereby Palisades will acquire all of the issued and outstanding shares of Radio Fuels by way of a plan of arrangement under the Canada Business Corporations Act. (Cision)
Dec. 09, 2024 – CDN announced its acquisition of Texas-based Superior Optimization Ltd.
Superior Optimization delivers turn-key solutions across many industries in Texas, New Mexico, and the Southwest US. Their capabilities include embedded technicians, design, electrical and instrumentation construction and project management, panel manufacturing, installation / commissioning, system integration, maintenance, repair, and capital project support.
This acquisition marks the start of CDN’s global brand, CAVIS Energy, with a formal transition to the new name taking place in the spring. (LinkedIn)
Others
Dec. 09, 2024 – Mondelez International Inc., the snacks and sweets company, is exploring an acquisition of iconic US chocolate maker Hershey Co., in a potential deal that would create a food giant with combined sales of almost $50 billion, according to people familiar with the matter. (YahooFinance)
Top News Stories
Metals & Mining
Increased tariffs under Section 301 on China impact the United States Q3 aluminium plates, sheets and bars imports. The United States imports of aluminium plates, sheets and bars stood below 100,000 tonnes for the two consecutive months in the third quarter of 2024, resulting in a dip in the total import volume through Q3. According to the US Geological Survey, the imports of aluminium plates, sheets and bars totalled 300,600 tonnes, significantly down by 11.33 per cent from 339,000 tonnes in Q2 2024.
US Steel Drops as Biden Set to Block Nippon Steel Deal. President Joe Biden plans to formally block the $14.1 billion sale of United States Steel Corp. to Nippon Steel Corp. on national security grounds once the deal is referred back to him later this month, people familiar with the matter said. The Committee on Foreign Investment in the United States panel, which has been reviewing the proposed takeover for much of this year, must refer its decision to Biden by Dec. 22 or 23, said the people, who asked to not to be identified discussing a confidential process.
Transportation & Logistics
CPKC, Americold to explore co-development projects in Mexico. Canadian Pacific Kansas City and Americold Realty Trust Inc. today announced plans to formally explore co-development opportunities in Mexico as part of their continued strategic collaboration to optimize temperature-sensitive commodity flow between the United States, Mexico and Canada. Americold plans to invest between $500 million and $1 billion over the next five to 10 years on development projects with CPKC and its other strategic partner DP World, according to a CPKC press release.
Trucker Kal Freight Files for Bankruptcy Protection. Trucking company Kal Freight filed for bankruptcy protection, saying its financial condition has been hurt by unprofitable efforts to become a vertically integrated business and a now-questionable investment in additional vehicles during the height of the Covid-19 pandemic.
Energy
Kosmos Deal Would Ease Tullow Finances but Debt Presents Hurdle. A potential takeover by Kosmos Energy Ltd. could resolve Tullow Oil Plc’s balance sheet issues, but debt refinancing would be a challenge, according to analysts. Both companies acknowledged early merger talks on Thursday, following media speculation. Together, they would create an Africa-focused explorer with production exceeding 120,000 barrels of oil equivalent a day. Under stock-exchange rules, Dallas-based Kosmos must announce whether or not it will make an offer by Jan. 9.
USA BOEM Announces ‘Next Steps’ in GOM Offshore Wind Leasing Process. In a statement posted on its website late Thursday, the U.S. Bureau of Ocean Energy Management (BOEM) announced the “next steps” in the competitive leasing process for offshore wind energy in the Gulf of Mexico (GOM). The BOEM said in that statement that it is issuing a Determination of Competitive Interest in two Wind Energy Areas (WEAs) in the GOM. It noted that the determination comes after an unsolicited request from Hecate Energy Gulf Wind LLC expressing interest in acquiring a commercial wind energy lease for WEA options C and D.
Others
Federal judge blocks largest supermarket merger in history. A federal judge in Oregon blocked Kroger’s proposed $25 billion tie-up with Albertsons, ruling that the largest merger in US supermarket history would limit competition and harm consumers. The ruling is a major setback for the chains and puts the merger’s likelihood in jeopardy. The judge issued a preliminary injunction halting the deal, which the companies can appeal.
Trump picks Andrew Ferguson to chair FTC. U.S. President-elect Donald Trump tapped Federal Trade Commissioner Andrew Ferguson to lead the consumer protection and antitrust agency, Trump said on social media on Tuesday. Ferguson, one of two Senate-confirmed Republican FTC commissioners appointed by President Joe Biden, will be “the most America First, and pro-innovation FTC Chair in our Country’s History,” Trump said.
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.