Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary
Marcegaglia to acquire Long Products Business from Outokumpu
Marcegaglia, a global operator in the steel processing industry, announced the acquisition of the stainless-steel long products division of Outokumpu, a Finnish multinational world leader in stainless steel production and among the recognized champions of sustainability, for EUR 228 million, implying an EV / Adjusted 2021 EBITDA multiple of 4.9x.
"Thanks to this important transformational investment, our group further strengthens its special steels business…through two strategic lines. The first concerns stainless steel flat products, where a partial upstream integration of the value chain is achieved with a view to shortening and stabilising supply chains and developing an increasingly sustainable and competitive products offering. The second one, significantly expanding the production of long stainless-steel products and further enriching the range of products and types of steels. The operation is further aimed at consolidating our position in international markets by acquiring additional market share in both Europe and North America" - Antonio and Emma Marcegaglia, president and vice president, respectively at Marcegaglia.
CEMEX to acquire majority stake from ProStein
CEMEX, SAB de CV, a global construction materials company, announced the acquisition of a 53% stake in German aggregates company ProStein. The investment expands CEMEX's aggregates business in the region while increasing the lifespan of its aggregate reserves in Europe.
"We are strongly committed to making the right investments for our customers and shareholders…This investment allows us to have a sustainable supply of high-quality aggregates in a major metropolitan center for years to come, in line with our Operation Resilience strategy. It is also key for our plans to significantly increase the volume of construction and demolition waste that we recover, recycle, and reuse in our operations." - Sergio Menendez, President at CEMEX Europe, Middle East, Africa & Asia.
Bonsai Capital to acquire DC Logistics
Bonsai Capital, a firm backed by a prominent group of family offices, announced the acquisition of DC Logistics, a Third-Party Logistics (3PL) business based in the Inland Empire and focused on Less-than-Truckload ("LTL"), warehousing, and inventory management.
"We were highly selective in our search to find not only a company with outstanding growth potential in a thriving industry, but one that operated in a region familiar to us…We also sought out strategic investment partners who not only shared our investment thesis, but who could provide valuable, U.S.-based real estate expertise to help maximize the opportunities we have identified. We hit the mark on all accounts with DC Logistics and a significantly aligned investor group."- Judas Castro, C.E.O. at Bonsai Capital.
Middleby to acquire CP Packaging
The Middleby Corporation (NASDAQ: MIDD), a developer and manufacturer of a broad line of solutions used in commercial food service, food processing, and residential kitchens, announced the acquisition of CP Packaging, a manufacturer of advanced high-speed vacuum packaging equipment.
"CP Packaging is a leading innovator of horizontal form-fill and seal thermoforming equipment. The CP Packaging systems provide customers with industry leading sanitation, faster production throughput and reduced operating costs. This acquisition further expands upon our ability to provide customers with integrated full-line solutions, while significantly strengthening the packaging equipment offerings in our food processing portfolio…There are meaningful synergies amongst our packaging brands and our food processing platform, as we leverage our long-standing customer relationships, established global distribution and manufacturing capabilities." - Tim FitzGerald, C.E.O. at Middleby.
Group 1 to acquire Franchises in Louisiana
Group 1 Automotive, Inc. (NYSE: GPI), an automotive retailer with dealerships located in the US and U.K., announced the acquisition of three dealerships and a collision center in Shreveport, Louisiana. The dealerships were acquired from Holmes European Motors, LLC, and include Mercedes-Benz, Sprinter, Land Rover, Jaguar, and Volvo franchises.
"We are extremely pleased to welcome the teams at Mercedes-Benz, Jaguar-Land Rover and Volvo Cars of Shreveport to the Group 1 family, and to further expand our brand footprint and scale to our already successful Shreveport operations," - Daryl Kenningham, President of US Operations at Group 1.
SOURCES
Marcegaglia Press Release, Outokumpu Press Release:
https://www.marcegaglia.com/officialwebsite/marcegaglia_notizie/agreement-with-outokumpu-to-take-over-long-stainless-products-assets/
https://www.outokumpu.com/en/news/2022/outokumpu-divests-the-majority-of-its-long-products-business-3130302
CEMEX Press Release:
https://www.cemex.com/-/cemex-acquires-majority-stake-in-german-aggregates-company
DC Logistics Press Release:
https://www.businesswire.com/news/home/20220712005892/en/Bonsai-Capital-Acquires-Regional-Third-Party-Logistics-Company-DC-Logistics
Middleby Press Release:
https://www.middleby.com/newsroom/middleby-acquires-cp-packaging-expands-offerings-in-packaging-innovation/
Group 1 Press Release:
https://www.group1corp.com/2022-07-11-Group-1-Automotive-Acquires-Five-Franchises-in-Shreveport,-Louisiana