Weekly Digest February 16

Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary

Resideo to acquire First Alert from Newell Brands

Resideo Technologies, Inc. (NYSE: REZI), a provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products, announced the acquisition of First Alert, Inc., a provider of home safety products, from Newell Brands Inc. (Nasdaq: NWL), for $593 million.
"The addition of First Alert to the Resideo portfolio provides a highly complementary extension of our existing sensor solutions in the home…Not only does First Alert bring a leading brand and market position in home safety, but its products also occupy a highly strategic position on the ceiling.” - Jay Geldmacher, Resideo CEO

The transaction is expected to close during the first quarter of 2022, subject to customary closing conditions and regulatory approvals.

Cummins to acquire Jacobs Vehicle Systems from Altra Industrial Motion

Cummins Inc. (NYSE: CMI), an American multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products, announced the acquisition of Jacobs Vehicle Systems (“JVS”), a supplier of engine braking, cylinder deactivation, start and stop and thermal management technologies from Altra Industrial Motion Corp.
“JVS brings engineering expertise, best in class products, and key manufacturing capabilities to Cummins that will allow us to continue developing component technologies that deliver market leading performance and emissions…We expect that this transaction will provide both attractive financial returns and future growth opportunities for our company." - Jennifer Rumsey, Cummins President and COO

The transaction is expected to close during this year, subject to customary closing conditions and regulatory approvals.

ID Logistics to Acquire Kane Logistics

ID Logistics (Paris: IDL), a European company in contract logistics, announced the acquisition of Kane Logistics, a pure American player in contract logistics.
“The acquisition of Kane Logistics represents one of the most important external growth operations in the history of the company. After starting in 2001 with a few large retail customers that we were able to support internationally quickly, the company shifted to e-commerce and retail preparation in 2013 with the acquisition of CEPL. It then strengthened its presence in Europe with the recent acquisition of GVT in Benelux. Today, with the acquisition of Kane Logistics, we are opening up new prospects in North America, where we are enhancing our know-how, in particular with consumer package goods customers, and welcoming experienced and dynamic managers to our team.” – Eric Hémar, ID Logistics Chairman and CEO

Peak Toolworks to acquire Tooling Concepts

Peak Toolworks, a designer and distributor of industrial tool holders, cutting tools and accessories, announced the acquisition of Tooling Concepts Inc.
“We are thrilled to be partnering with Joe and the outstanding team members at Tooling Concepts. Peak has been very active in the Elkhart and Michiana area for many years. Due to continued growth and at the request of many of our customers, we felt it was important to reestablish a local presence to better enable our expansion plans in the region. Joe Wilkins and his team have done an outstanding job serving customers in the region and we plan to invest in even more equipment, local inventory and expanded capability at this location to keep up with the strong demand.” – Kerry Baskins, Peak Toolworks CEO and President

Zurn Water Solutions to merge with Elkay Manufacturing

Zurn Water Solutions Corporation (NYSE: ZWS), a smart, sustainable water solutions and products company, announced the acquisition of Elkay Manufacturing Company, a leader in the highly attractive and growing commercial drinking water solutions business. Upon completing the transaction, Zurn Water Solutions shareholders will own approximately 71%, and Elkay shareholders will own approximately 29% of the combined and newly named company – Zurn Elkay Water Solutions Corporation.
“This transaction is a true game-changer as we create an even stronger pure play water company by combining with the iconic brand, Elkay…The combination puts us well on our way to doubling the size of the business over the next couple of years while enhancing our competitive advantage within specified water solutions. We also add the high-growth, and increasingly essential, drinking water sector in our portfolio and have a clear path to capitalize on the significant synergies the combination will generate.” - Todd A. Adams, Zurn Water Solutions Chairman and CEO

SOURCES