2020 Manufacturing M&A
2020 has been a year of twists and turns, and has not followed any analyst’s predictions. The M&A world has attempted to weather the storm, in spite of deal volume and deal value declines. IBBA’s Market Pulse Report indicates that manufacturing companies remain among the most valuable deals. More than anything else, COVID has triggered major delays to in-process deals. Many lenders have changed their loan structure to become more conservative. As we adjust to the new normal, deals should pick up. Here are some highlights from relevant sectors in manufacturing from the first half of the year:
- Plastics M&A: Plastic injection molding should grow thanks to the ever shifting needs in healthcare and the demand for eco-friendly packaging. Deals continue to thrive internationally. For example, Technimark acquired Tool & Plastic Industries Ltd. In Ireland. With multiple global locations already, the new acquisition will increase Technimark’s European footprint. In the U.S., Revere Plastics continues to expand by acquiring many plants from Techniplas, a Wisconsin-based company.
- Gear Manufacturing: In Germany there was some gear manufacturing consolidation, with the continued closure of international deals. Scherer Feinbau was recently acquired by EMAG, a global business offering an array of machining solutions across many nations. ACEDIA group, a German holding company, acquired Pennsylvania-based ASI drives, building a stronger portfolio of gearbox and gear drive companies to better support the automotive industry.
- Tool and Die M&A: In the tooling industry, Production Tool & Supply is being acquired by DGI Supply. DGI Supply’s parent company includes manufacturers of grinding and sawing products. This acquisition marks the newest addition to more than two dozen DGI Supply locations across the United States and North America.
About NuVescor Mergers & Acquisitions
At NuVescor, we align the interests of investors and business owners to enable the personal and financial goals of our clients. For over a decade, we have helped founders and owners of companies in the manufacturing sectors achieve maximum value for their companies. Together, we can provide business valuations, financial analysis, investment guidance, and business transaction advice for middle-market companies with revenues from $5 million to $500 million.