Banner
News

The Sun Will Come Out Tomorrow

April 14, 2020 - In the wake of coronavirus-induced economic uncertainty, metals companies are evaluating strategic alternatives, with many looking externally to bolster growth, according to the Metals Insider, an industry report released by Brown Gibbons Lang & Company (BGL).

Economic forecasts are in flux in today’s rapidly -changing environment, but many reflect outlooks of a “U”-shaped or ”V”-shaped recovery within the next six to 12 months. M&A will remain integral for competitive positioning heading into an economic recovery.

Corporate and private equity buyers were active across the metals value chain before the market dislocation, illustrated in Q1 2020 transaction activity. Notably, acquisitions by Acerinox, S.A. (VDM Metals), Cleveland-Cliffs (AK Steel), and SFS Group AG (Truelove & Maclean) indicate strong corporate appetite for deal-making. In addition, private equity funds continued to pursue growth platforms and add-on acquisitions, with Palladium Equity Partners (Reading Alloys), The Jordan Company (Arundel Machine Tool), Wynnchurch Capital (Pennsylvania Machine Works), AEA Investors (Texas Metal Printing), and Audax Group (Rockford Fastener) among the deals completed during the quarter.

M&A will continue to be a primary lever to achieve growth targets, with some investors seeing the current environment as a buying opportunity to acquire capabilities and enter new markets. Well-capitalized buyers will continue to be opportunistic at the “tuck-in” level, seeking capabilities that fit into forward strategies.

Also anchoring the M&A market is the significant volume of dry powder on the sidelines that will need to be deployed into growth acquisitions.

  • Asset selectivity is higher, but the credit markets are open. Pricing and leverage reflect greater downside protection for lenders to compensate for market risk. However, bank balance sheets are healthy, and private debt funds are plentiful and eager to invest capital.
  • Private equity funds are coming off years of record fundraising. Sponsors will be creative in how they deploy capital in the current market, with more seeking minority equity stakes and looking at sharing risk opportunistically.


DOWNLOAD PDF >

LATEST ISSUE 
Cover MM1122 v3

vert-current-linewhiteNOVEMBER 2022

END USER OUTLOOK 2023
Despite whispers of recession, manufacturers run full out.




0722 Industry Scope SW Modern Metals 330x285

Enmark 333x100 Banner

Modern Metals on Twitter

Banner

Company Profiles

AIR FILTRATION

DEBURRING/FINISHING

NESTING SOFTWARE

SOFTWARE

Camfil APC - Equipment ATI Industrial Automation Metamation Inc. 4GL Solutions
Camfil APC - Replacement Filters Lissmac Corp.

PLASMA TECHNOLOGY

Enmark Systems Inc.

ALUMINUM

Osborn Messer Cutting Systems Inc. Lantek Systems Inc.
Richardson Metals, Inc. Supermax Tools

PLATE

SecturaSOFT

BEVELING

Timesavers Churchill Steel Plate SigmaTEK Systems LLC
Steelmax Tools LLC

IRONWORKERS

Peddinghaus

STAINLESS STEEL

COIL PROCESSING

Trilogy Machinery Inc.

PLATE & ANGLE ROLLS

Heyco Metals
ANDRITZ Metals USA Inc.

LASER TECHNOLOGY

Trilogy Machinery Inc.

STEEL

Braner USA Inc. AMADA AMERICA Inc.

PRESS BRAKE TOOLING

Alliance Steel
Burghardt + Schmidt Group MC Machinery Systems Inc. Rolleri USA North American Steel Alliance
Butech Bliss TRUMPF Inc.

PRESS BRAKES

TITANIUM

Red Bud Industries

MATERIAL HANDLING

MC Machinery Systems Inc. STS Metals
The Bradbury Group EMH Crane

PUNCHING

TUBE & PIPE

Tishken Fehr Warehouse Solutions Inc. Hougen Manufacturing BLM Group

CONVEYOR SYSTEMS

Steel Storage Systems

SAWING

HGG Profiling Equipment Inc.
Mayfran International UFP Industrial Advanced Machine & Engineering Prudential Stainless & Alloys

COPPER & BRASS

MEASUREMENT & QUALITY CONTROL

Behringer Saws Inc.

WATERJET TECHNOLOGY

Concast Metal Products Co. Advanced Gauging Technologies Cosen Saws Barton International
Copper and Brass Servicenter Association

METAL FABRICATING MACHINERY

DoALL Sawing Products Jet Edge Waterjet Systems
Farmers Copper Cincinnati Inc. HE&M Saw Omax Corp.
  LVD Strippit Savage Saws

ZINC

  Scotchman Industries

SERVICE CENTERS

Jarden Zinc Products
  Trilogy Machinery Inc. Admiral Steel  
    Alliance Steel  

TPMG2022 Brands


BPA_WW_MASTER.jpg