Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary
Spirit Airlines to acquire Frontier Airlines
Spirit Airlines, Inc. (NYSE: SAVE), an airline company, announced the acquisition of Frontier Group Holding, Inc. (NASDAQ: ULCC), the parent company of Frontier Airlines, Inc. Together, Frontier and Spirit expect to bring low fares to more travelers in more destinations across the United States, Latin America, and the Caribbean, including major cities as well as underserved communities.
“We are thrilled to join forces with Frontier to further democratize air travel…This transaction is centered around creating an aggressive ultra-low fare competitor to serve our Guests even better, expand career opportunities for our Team Members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public. We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent Guest service.” - Ted Christie, President and CEO of Spirit.
SIG to acquire Scholle IPN
SIG Combibloc Group AG (SWX: SIGN), a leading innovator of sustainable packaging systems and solutions for liquids, announced the acquisition of Scholle IPN Corporation, which designs and manufactures packaging products for food, beverage, and non-food markets for €1.36 billion. This acquisition diversifies SIG’s exposure to growing and resilient end markets, including the expansion into bag-in-box and spouted pouches for retail, institutional, and industrial customers for SIG’s portfolio of market-leading sustainable food and beverage carton solutions. SIG and Scholle IPN have many similarities and have highly complementary business systems and product offerings.
“The acquisition of Scholle IPN cements SIG’s position as a global leader in innovative and sustainable packaging for food and beverages. It is consistent with our strategy of geographic and category expansion accompanied by share gains in key markets. By delivering clear benefits for customers, consumers, and the environment, we will drive value for shareholders.” - Samuel Sigrist, CEO of SIG.
Spectrum Brands to Acquire Tristar Products’ Appliance and Cookware Business
Spectrum Brands Holdings, Inc. (NYSE: SPB), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, announced the acquisition of the home appliances and cookware categories of Tristar Products, Inc. (the “Tristar Business”) for $325 million.
“We are excited to announce the acquisition of the Tristar Business by our Home and Personal Care (“HPC”) segment this morning…The strategic combination of the Tristar Business with our HPC segment represents an exciting key milestone in our pursuit to create a leading higher-margin and faster-growing company in the global appliances market. The Tristar Business brings us a fantastic content creation studio, incredible DRTV capabilities and adds a direct-to-consumer distribution business that we believe can meaningfully lift HPC’s margins and growth rate. For some time, we have been seeking to successfully execute on an accretive transaction in this space and are pleased that this acquisition allows us to create a global appliances leadership platform.” - David Maura, Chairman and CEO of Spectrum Brands.
HDI to acquire Mid-Am Building Products
Hardwoods Distribution Inc. (TSX: HDI), one of North America’s largest suppliers of specialty building products to industrial manufacturers, announced the acquisition of Mid-Am Building Supply, Inc., a wholesale distributor of building products, for $270 million. “We are excited to be welcoming Mid-Am’s team to HDI…Mid-Am strategically expands our access to the pro dealer customer channel and, when combined with strong participation in the pro dealer and home center customer channels we gained when we acquired Novo Building Products last year, substantially increases the addressable market opportunity for HDI’s products. The addition of Mid-Am also raises our capability in the new home and repair and remodel markets in the U.S., where we continue to see many factors supporting a multi-year runway for growth.” - Rob Brown, President and CEO of HDI.
Daher announces the acquisition of the Stuart aerostructures business from Triumph Group
Daher Aerospace, an aircraft manufacturer servicing aircraft manufacturer, announced the acquisition of the metallic aerostructures production and assembly business “Stuart aerostructures.”
“This acquisition is perfectly aligned with Daher’s ‘Succeed Together’ strategic plan, including the goal of significantly developing our North American activities across all of the company’s divisions…We strengthened our aircraft manufacturing business by acquiring Kodiak in 2019, and also have achieved significant organic growth in our services activities. With this acquisition, we strive to strengthen our industrial business. This significant transaction enables us to position ourselves globally as a key aerospace player.” - Didier Kayat, the CEO of Daher.
The transaction is subject to regulatory reviews and other customary closing conditions.
SOURCES
Frontier Airlines Press Release:
https://news.flyfrontier.com/frontier-airlines-and-spirit-airlines-to-combine-creating-americas-most-competitive-ultra-low-fare-airline/
SIG Press Release:
https://www.sig.biz/en/media/press-releases/sig-to-acquire-scholle-ipn-to-broaden-leadership-in-sustainable-packaging-systems-and-solutions
Spectrum Brands Press Release:
https://investor.spectrumbrands.com/news-releases/news-release-details/spectrum-brands-acquire-tristar-products-appliance-and-cookware
HDI Press Release:
https://www.hdidist.com/wp-content/uploads/2022/02/HDI-Completion-of-Mid-Am-Acquisition.pdf
Daher Press Release, Triumph Group Press Release:
https://www.daher.com/en/daher-announces-the-acquisition-of-the-stuart-aerostructures-business-from-triumph-group-strengthening-its-position-in-the-north-american-market/
https://ir.triumphgroup.com/news-events/news-details/2022/TRIUMPH-GROUP-ANNOUNCES-THE-SALE-OF-ITS-STUART-AEROSTRUCTURES-BUSINESS-TO-DAHER-AEROSPACE/default.aspx