Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary
Sika to acquire Sable Marco
Sika AG, a manufacturer of specialty chemicals that include concrete admixtures, specialty mortars, sealants, and adhesives, announced the acquisition of Sable Marco Inc., a Canadian manufacturer of cementitious products and mortars. The acquisition will open up new opportunities for Sika in the Eastern region of Canada and improve Sika’s access to the retail distribution channel.
"With the acquisition of Sable Marco, Sika Canada will expand its penetration with big boxes, home centers, and builders’ merchants which, in line with our strategic plan, will increase sales being generated through the distribution channel. We warmly welcome the Sable Marco employees to the Sika family and look forward to successfully developing our business together in the Canadian market." – Cristoph Ganz, Regional Manager Americas at Sika.
The Sterling Group to acquire West Star Aviation
The Sterling Group, a private equity firm, announced the acquisition of West Star Aviation, a provider of maintenance, repair, and overhaul (MRO) services to the business aviation industry, providing maintenance, modification, and other services to aviation customers from Norwest Equity Partners.
“We believe that our experience coupled with West Star’s industry-leading customer service capabilities will make us a powerful combination…Jim Rankin has built a stellar leadership team, and we are eager to help accelerate their growth plans.”- Greg Elliott, Partner at The Sterling Group.
Pentair to acquire Manitowoc Ice
Pentair plc (NYSE: PNR), a provider of water treatment and sustainable solutions, announced the acquisition of Manitowoc Ice, a provider of commercial ice makers and portfolio brand of Welbilt (NYSE: WBT), for $1.6 billion. The addition of Manitowoc Ice will enhance the growth of direct-to-customer water quality solutions and services. This combination will substantially expand Pentair’s water management capabilities by optimizing complementary offerings, enabling a seamless foodservice experience.
“We expect this strategic acquisition to be a game changer for our commercial water solutions platform, establishing a differentiated, total water management offering and expanded network within the foodservice industry…Manitowoc Ice’s industry-leading global positions in an incredibly attractive industry, coupled with its strong track record of profitable growth and culture of innovation and sustainability, are expected to further establish Pentair as a leader in a vast and growing industry. At Pentair, we have remained steadfast in our commitment to developing tailored, sustainable solutions that bring water to life through effortless user experiences. We believe Manitowoc Ice’s culture and priorities are highly aligned with this mindset through value-added solutions that are centered on its customers’ needs.” - John Stauch, President and CEO at Pentair.
The transaction is expected to close during the second quarter of 2022, subject to customary closing conditions and regulatory approvals.
CalPortland to acquire Certain West Coast Cement and Ready-Mixed Concrete Operations from Martin Marietta
CalPortland Company, a producer of cement, ready-mixed concrete, aggregates, concrete products, and asphalt in the western United States and Canada, announced the acquisition of certain West Coast cement and ready-mixed concrete operations from Martin Marietta Materials, Inc. (NYSE: MLM), for $250 million. The acquisition includes the Redding cement plant, related cement distribution terminals, and 14 ready-mixed concrete plants in California.
“Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 plan, we continually look for ways to optimize our portfolio and product mix through asset swaps and divestitures. After thoughtful evaluation, we determined that monetization of these operations is the best avenue to maximize value for all stakeholders.” - Ward Nye, Chairman, President, and CEO at Martin Marietta.
AZZ to acquire DAAM Galvanizing
AZZ Inc. (NYSE: AZZ), a provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and highly engineered services for maintaining and building critical infrastructure, announced the acquisition of DAAM Galvanizing Co. Ltd. (DAAM), a privately held hot-dip galvanizing company based in Edmonton, Alberta Canada.
“With a long and successful operating history of more than 60 years, we are pleased to reach an agreement to add DAAM Galvanizing to AZZ’s Metal Coatings portfolio. This acquisition is a testament to our commitment to drive profitable growth and strengthen our Metal Coatings business. The addition of DAAM will expand AZZ’s geographical coverage in the Northwest and enhance its scope of metal coating services in Canada. We welcome DAAM’s employees and customers to AZZ and look forward to seamless integration with uninterrupted industry-leading customer service.” - Bryan L. Stovall, President & COO at AZZ Metal Coatings.
SOURCES
Sika Press Release:
https://www.sika.com/en/media/media-releases/2022/sika-strengthens-access-to-the-distribution-channel-in-canada.html
Sterling Group Press Release:
https://sterling-group.com/category/acquisition/
Pentair Press Release:
https://investors.pentair.com/investor-relations/news-releases/news-release-details/2022/Pentair-Announces-Definitive-Agreement-to-Acquire-Manitowoc-Ice/default.aspx
Martin Marietta Press Release:
https://ir.martinmarietta.com/news-releases/news-release-details/martin-marietta-sell-certain-west-coast-cement-and-ready-mixed
AZZ Press Release:
https://www.azz.com/press_release/azz-inc-announces-the-acquisition-of-daam-galvanizing-co-ltd/